A Project Study Report On

Training Undertaken at

ITC Ltd. (BINGO) A comparative analysis of ITC Ltd. Bingo snacks V/S Frito-Lays & analysis of retailer buying behavior Submitted in partial fulfillment for the Award of Degree of Master of Business Administration

Submitted By: Shubham Jain M B A P ar t 2

Submitted To:Ms.Pooja Ratnawat Asst. Professor

2010-2012

Subodh Institute of Management & Career Studies

Preface
The curriculum MBA provides a well structured and integrated course of business studies. However, to develop managerial skill in the students induction of practical training during the studies has been incorporated to supplement theoretical study of managerial principles of business. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The MBA program provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management. The exposure to business environment during the training at Business organization helps in better understanding of the theoretical knowledge given to us by the learned Professors on various subjects. Training at floor level helps in development of industrial traits in the personality. In todays globalized world, where cutthroat competition is prevailing in the market, theoretical knowledge requires work experience. One needs to have practical knowledge for development in his/her carrier. Rightly has been said that Experience is the best teacher. The emphasis in the project is providing the study and an insight into Indian FMCG Business Scenario. The Project provided in ITC Ltd. was Comparative study between ITC & Other products of Snacks in Jaipur. The training has provided valuable experience & knowledge during the survey. The Project consists of findings after data analysis, SWOT analysis and conclusions have been drawn with recommendations.

Acknowledgement

I express my sincere thanks to my project guide, Ms. Pooja Baid, Asst. Manager, ITC Foods Division., for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project. I would also like to thank the supporting staff Ms. Pooja Ratnawat, for their help and cooperation through out our project.

Shubham Jain

Executive Summary
With increasing foray into various category of food business ITC needs to determine the best way to serve the grocery outlets and build equally strong distribution system that match the long term growth plans of the company in the FMCG business. This report provides a competitive analysis of noodles industry of ITC and its vis--vis nestle. The scope of the study is restricted to Jaipur city. The analysis is based on retailer questionnaire. Various parameters such as credit term quality of service, delivery system, knowledge of salesman etc have been studied. The result brings out Nestle as the preferred company, primarily on account high quality of services and consumer demand. The report concluded with recommendation to increase the brand image of the yippee noodles.

Declaration
I, Shubham Jain, a student of Subodh Institute of Management & Career Studies (SIMCS), hereby declare that I have worked on a project titled Comparative study between ITC & Other products of Snacks focusing on Jaipur region during summer internship at ITC Ltd., Jaipur in partial fulfillment of the requirement for the Masters of Business Administration.

I indemnify my research work to be authentic and original to the best of my knowledge in all respects of the process carried out during the project tenure.

My learning experience at ITC, Jaipur Branch, and in the market of the Jaipur Region, under the guidance of Mr. Jai Prakash Lata, Jaipur Branch, ITC, has been truly enriching.

Date: Dec ., 2011

(SHUBHAM JAIN)

Contents
1. Introduction to the Industry 2. Introduction to the Organization 3. Research Methodology 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Title of the Study Duration of the Project Objective of Study Type of Research Sample Size and method of selecting sample Scope of Study Limitation of Study

4. Facts and Findings 5. Analysis and Interpretation 6. SWOT 7. Conclusion 8. Recommendation and Suggestions 9. Appendix 10. Biblography

S.No. 1. 2. Introduction Company Profile

Title

Page No. 6 11

Objective of the Study 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. SWOT Analysis 18

Comparative analysis of ITC Bingo V/S Frito-Lays Chips 22 Study of Selected Research Problem Findings Recommendations Conclusion Limitations Suggestions Questionnaire Sample Bibliography 32 38 40 42 43 44 45 49

1. INTRODUCTION 1.1. FMCG SECTOR IN INDIA

The FMCG sector represents consumer goods required for daily or frequent use. The main segments of this sector are personal care (oral care, hair care, soaps, cosmetics, and toiletries), household care (fabric wash and household cleaners), branded and packaged food, beverages (health beverages, soft drinks, staples, cereals, dairy products, chocolates, bakery products) and tobacco. The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth largest sector in the economy and is responsible for 5% of the total factory employment in India. The industry also creates employment for 3 million people in downstream activities, much of which is disbursed in small towns and rural India. This industry has witnessed strong growth in the past decade. This has been due to liberalization, urbanization, increase in the disposable incomes and altered lifestyle. Furthermore, the boom has also been fuelled by the reduction in excise duties, de-reservation from the small-scale sector and the concerted efforts of personal care companies to attract the burgeoning affluent segment in the middle-class through product and packaging innovations. The FMCG sector is a producer of luxury items targeted at the elite, in reality; the sector meets the everyday needs of the masses. The lower-middle income group accounts for over 60% of the sector's sales. Rural markets account for 56% of the total domestic FMCG demand. Many of the global FMCG majors have been present in the country for many decades. But in the last ten years, many of the smaller rung Indian FMCG companies have gained in scale. As a result, the unorganized and regional players have witnessed erosion in market share. Government of India has recently opened the gate for FDI in consumer retail market. This would, undoubtedly, add wings to this flying sector of Indian economy.

1.2. Top 20 Fast Moving Consumer Goods (FMCG) Companies in India

1. Hindustan Unilever Ltd. (HUL) 2. ITC (Indian Tobacco Company) 3. Nestl India 4. GCMMF (AMUL) 5. Dabur India Ltd 6. Asian Paints (India) 7. Cadbury India 8. Britannia Industries Ltd. 9. Procter & Gamble Hygiene and Health Care 10. Marico Industries Ltd. 11. Colgate-Palmolive (India) Ltd. 12. Gillette India Ltd. 13. Godfrey Phillips 14. Henkel Spic 15. Johnson & Johnson 16. Modi Revlon 17. Nestle 18. Nirma Ltd 19. Amul India 20. Godrej Consumer Products Ltd

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1.3. Outlook
There is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in the country is amongst the lowest in the world. Again the demand or prospect could be increased further if these companies can change the consumer's mindset and offer new generation products. Earlier, Indian consumers were using non-branded apparel, but today, clothes of different brands are available and the same consumers are willing to pay more for branded quality clothes. It's the quality, promotion and innovation of products, which can drive many sectors. The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth largest sector in the economy and is responsible for 5% of the total factory employment in India. The industry also creates employment for 3 million people in downstream activities, much of which is disbursed in small towns and rural India. This industry has witnessed strong growth in the past decade. This has been due to liberalization, urbanization, increase in the disposable incomes and altered lifestyle. Furthermore, the boom has also been fuelled by the reduction in excise duties, de-reservation from the small-scale sector and the concerted efforts of personal care companies to attract the burgeoning affluent segment in the middle class through product and packaging innovations. The lower-middle income group accounts for over 60% of the sector's sales. Rural markets account for 56% of the total domestic FMCG demand. Many of the global FMCG majors have been present in the country for organized and regional layers have witnessed erosion in market share.

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1.4. History of FMCG Sector In India

In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a dominant force in the FMCG sector well supported by relatively less competition and high entry barriers (import duty was high). These companies were, therefore, able to charge a premium for their products. In this context, the margins were also on the higher side. With the gradual opening up of the economy over the last decade, FMCG companies have been forced to fight for a market share. In the process, margins have been compromised, more so in the last six years (FMCG sector witnessed decline in demand).

1.5. Current Scenario

The growth potential for FMCG companies looks promising over the long-term horizon, as the per-capita consumption of almost all products in the country is amongst the lowest in the world. As per the Consumer Survey total consumption expenditure are almost 40% and 8% was accounted by groceries and personal care products respectively. Rapid urbanization, increased literacy and rising per capita income are the key growth drivers for the sector. Around 45% of the population in India is below 20 years of age and the proportion of the young population is expected to increase in the next five years. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent demand with more money and a new mindset. In this backdrop, industry estimates suggest that the industry could triple in value by 2015 (by some estimates, the industry could double in size by 2010).

India offers a large and growing market of 1 billion people of which 300 million are middle class
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consumers. India offers a vibrant market of youth and vigor with 54% of population below the age of 25 years. These young people work harder, earn more, spend more and demand more from the market, making India a dynamic and inspirational society. Domestic demand was expected to double over the ten-year period from 1998 to 2010. The number of households with "high income" is expected to increase by 60% in the next four years to 44 million households. The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products.

1.6. Growth drivers FMCG Sectors in India

1. Disposable Income: There is increase in disposable income, observed in both rural and urban consumers, which is giving opportunity to many rural consumers to shift from traditional unorganized unbranded products to branded FMCG products and urban fraternity to splurge on value added and lifestyle products. The increasing salaries, along with rising trend of perks in the corporate sector at regular intervals, have increased peoples spending power. As per some research, there is a high correlation between Disposable per capita and HPC per capita. 2. Organized Retail: The emergence of organized retail have lead to more variety with ease in browsing, opportunity to compare with different products in a category, one stop destination (entertainment, food and shopping) etc, which is playing an important role in bringing boom in the Indian FMCG market. Currently the modern trade is capturing 5% of the total retail space, which will increase to 10% and 25% in 2010 and 2025 respectively. Also, as the credit card and organized retail trend picks up, people wont think much while buying and buy more.

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3. Distribution Depth: Rural Penetration: There are 5500 towns and 6.38 Lacs villages with 2.5Mln and 5Mln outlets respectively. Due to saturation and cut throat competition in urban India, many FMCG companies are devising strategies for targeting rural consumers in a big way. Many FMCG companies are focusing on increasing their distribution network to penetrate with a step by step plan. This is the reason that FMCG urban market size has dropped from 50% to 29% in last 5 years. The FMCG market size for semi-urban and rural segment was 19% and 52% respectively for the year 2006-07. As per FICCI, the FMCG market size for urban, semi-urban and rural for year 2007-08 was expected to be 57%, 21% and 22%, which clearly shows that rural market is the growth engine for FMCG growth. Though the urban markets are growing too, the incremental addition in consumers households is much more in rural space as compared to urban markets. Rural and Urban potential Urban Population Distribution in 2001-02(m House Hold) Population 2009-10(M house Hold) % Distribution(2001-02) Market(Town/Village) 53 71 28 3870 Rural 135 156 72 635000

4. Buying Pattern Shift: The crisis of declining FMCG markets during 2001-04 was driven by new avenues of expenditure for growing consumer income such as consumer durables, entertainment, mobiles, motorbikes etc. Now, as many consumers have already upgraded, their income is being directed towards pampering themselves.

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Spending Pattern(%)
4% 28% 11% 9% 8% Saving other Clothing Personal Care Grocery Entertainment 40%

5. Favorable Indian Economy & Demographics: 45% people in India are under 20 years of age. Per capita disposable income has increased from $550 to $600 in 2007 (9% increase). GDP is growing at a CAGR between 8 to 9%.In the next five years, affluent and aspirers as a total will supersede strivers and will be dominated by aspirers, as per NCAER.

1.7. Indian Competitiveness and Comparison with the World Markets

The following factors make India a competitive player in FMCG sector: Availability of raw materials Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage.

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Labor cost comparison

Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets. Presence across value Chain Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India a more cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc.

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1.8. Characteristics of FMCG Sector

From the consumers' perspective:

o o

Frequent purchase Low involvement (little or no effort to choose the item -- products with strong brand loyalty are exceptions to this rule)

Low price

From the marketers' angle:

o o o o

High volumes Low contribution margins Extensive distribution networks High stock turnover

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2. INTRODUCTION TO THE ORGANIZATION

2.1. History
The company was founded as Wills, Watkins & Co. by Henry Overton Wills I and his partner Watkins, who opened a shop in Castle Street, Bristol in 1786. After the retirement of his partner in 1789, it became Wills & Co.. In 1826 his two sons, William Day Wills and Henry Overton Wills took over the company. The company pioneered canteens for the workers, free medical care, sports facilities and paid holidays. In 1830, the company was renamed W.D. & H.O. Wills. Their first brand was Bristol, made at the London factory from 1871 to 1974. Three Castles and Gold Flake followed in 1878 and Woodbine ten years later. In 1901 Sir William Henry Wills et al. formed the Imperial Tobacco Company from a merger of W.D. & H.O. Wills with seven other British tobacco companies. Imperial remains one of the world's largest tobacco companies. Embassy was introduced in 1914 and relaunched in 1962 with coupons. The last member of the Wills family to serve the company was Christopher, the great great grandson of H.O. Wills I. He retired in 1969. ITC Limited public conglomerate company headquartered in Kolkata, India. Its turnover is $6 billion and a market capitalization of over $30 Billion. The company has its registered office in Kolkata. It started off as the Imperial Tobacco Company, and shares ancestry with Imperial Tobacco of the United Kingdom, but it is now fully independent, and was rechristened to Indian Tobacco Company in 1970 and then to I.T.C. Limited in 1974. The company is currently headed by Yogesh Chander Deveshwar. It employs over 26,000 people at more than 60 locations across India and is listed on Forbes 2000. ITC Limited completed 100 years on 24 August 2010.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,

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Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.

ITC's aspiration to be an exemplar in sustainability practices is manifest in its status as the only company in the world of its size and diversity to be 'carbon positive', 'water positive' and 'solid waste recycling positive.' In addition, ITC's businesses have created sustainable livelihoods for more than 5 million people, a majority of whom represent the poorest in rural India

2.2. THE ITC Vision:

Sustain ITC's position as one of India's most valuable corporations through world class performance creating growing value for the Indian economy and the Companys stakeholders.

2.3. THE ITC Mission:

To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.

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2.4.Board of Director : Chairman's Statement

ITC's Vision and Strategy "Envisioning a larger societal purpose ('a commitment beyond the market') has always been a hallmark of ITC. The Company sees no conflict between the twin goals of shareholder value enhancement and societal value creation. The challenge lies in fashioning a corporate strategy that enables realization of these goals in a mutually reinforcing and synergistic manner "

Y.C. Deveshwar (Chairman) Executive Director Anup Singh k.Vaidyanath

Non-Executive Director Anil Baijal D K Mehrotra R K Kaul H G Powell S H Khan P B Ramanujam S B Mathur Anthony Ruys

Basudeb SenB Vijayraghvan

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2.5. BRANDS OF ITC

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2.6. Advertisement and Add Concept:Advertisements are cost effective means to communicate messages and ideas to build brand preferences and awareness and it is one of the most important tools which a company uses to direct persuasive communication to directive buyers in public or to educated people to avoid hard drink and so on. The basic objective of advertising is sales promotion sales promotion expenditure have been increasing as a percent of budget expenditure annually and the growth is likely to continue in future. Celebrities signed by the ITC Ltd. are as follows:

Cricketers: Sachin Tendulkar Yuvraj Singh

Cine Stars
Shahrukh Soha ali khan Deepika Padukone Ileana Hrithik Roshan

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2.7. ITC Involved in Following Businesses:

Cigarettes W. D. & H. O. Wills, Gold Flake Kings, Gold Flake Premium, Navy Cut Insignia India Kings Classic (Verve, Menthol, Menthol Rush, Regular, Mild & Ultra Mild) 555,Benson & Hedges Silk Cut Scissors Capstan Berkeley Bristol Lucky Strike Players Flake

Foods Ashirvaad Minto Sunfeast Candyman Bingo Yippee Sunfeast Pasta Biscuits Confectionery Noodles
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 Snack Foods

Apparel Wills Lifestyle John Players

Personal care Fiama di Wills Vivel Essenza di Wills Superia Vivel di Wills

Stationery Classmate Paperkraft

Safety Matches and Agarbattis

Ship iKno; Mangaldeep Aim brands

Hotels Fortune Welcomheritage

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3. Research Methodology
3.1. Title of the Study : Statement of Research Problem
Net Turnover grew by 16.3% primarily driven by a 20.9% growth in the non-cigarette FMCG businesses, a 19.8% growth in the Cigarettes business and a 17.4% growth in the Paperboards, Paper & Packaging segment. In the branded snacks market, to get down to basics, Frito Lay commands a share of 45%, followed by Haldirams at 27% , ITC at 21% and Parle at 5-7%. The rest is divided between a handful of new entrants, wannabes and many regional players. Out of these ITCs Bingo is a new entrant in the market, which was launched in 2007. ITC has launched Bingo in a wide variety of flavors and formats, ranging from potato chips to finger snacks. Because of its different and catchy advertisements Bingo has created a buzz in the market. Therefore, our aim was to find out the most popular flavor of Bingo among all the offerings. I have begun our analysis by dividing people into the ones who preferred more ready made chips than others. This survey was conducted in Jaipur. To collect the data we designed a questionnaire.

3.2. Duration of the Project

The duration of the project is of 45 Days.

3.3. Objective of Study

1. To study the snacks industry as a part of food processing industry. 2. To study the company profile of ITC Ltd,the makers of BINGO. 3. To examine the comparative study between Bingo, Parle, Lays, Diamond

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4. To examine the comparative trends in snacks industry. 5. To study the Difference between Ordering stock & Ready Stock. 6. To ensure the availability of Itc-bingo. 7. To examine the sales of Itc product & other products as well as schemes for that. 8. To analyse and interpret the results of sample collected. 9. To determine the future course of action by ITC by offering suggestions through the samples collected. 10. To find conclusions to our project.

3.4. Type of Research : RESEARCH DESIGN & METHODOLOGY

RESEARCH METHODOLOGY It includes the response of Bingo Snacks from retailers and customer at retail outlets and in Modern trade with respect to it competitors. It also includes the responses of competitor Frito-Lays, Parle, Diamond from various sources. Work at retail outlets: (Sample has been taken from the normal population) 1. To check the availability of products. 2. To check visibility of products. 3. SWOT analysis of products. 4. To check how old the product is. 5. To trace the complaints regarding the product. 6. Identifying what would the factor to increase sale. 7. To check the Cash discount on the sale

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8. To check the Credit availability of the product to retailers. 9. Time taken in replacement of the product due to wear, tear or by product. 10. Knowledge about the brand 11. Time taken in Ordering & Delivering of the stock by ordering stock or by Ready stock. expiry of the

Research Design:The study is conducted by both quantitative data & qualitative data. There are two types of data i.e. Primary data (Collected from the questionnaires, interview, and observations) & The Secondary data (which is to be collected by ITC website, internet, books and newspaper).

Data collection technique: Primary Data:1) Interview with retailers, customers, distributors, and company officials of ITC. 2) Interview with retailers and customers of Frito-Lays, parle. 3) Questionnaire. 4) Observation. 5) Direct contact with people. Secondary data: - newspaper, Internet and textbooks. Sources of Data: Desciption of Location:- Jhotwara, Vaishalli nagar, DCM, Doctors Colony , Sodala, Sirsi Road, Niwaru road, Sanganer , Malviya Nagar , Mansarovar , Bagru road, Vidhyadhar Nagar, Sodala of Jaipur.
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Desciption of sub-location:Restaurants, Pan Bhandar, Kirana Stores, General Stores, Departmental Stores, Crockery, Backers, Fancy Store, Misthan Bhandars, Dairy, Traders/Enterprises

3.5. Sample Size & Method of Selecting Sample

Method: - The sources of data can be collected from the questionnaires & interview from the retailers. Sampling Plan: Sample size Sample segmentation Sampling Method Sampling Area Time : 400 prospectuses : On the basis of Shop name, location & gender. : Simple Random : Jaipur : 45 Days

3.6. Scope of Study

The research will help ITC to find out the factors that would help in increasing their net sales & earning. It will help ITC to review their quality, promotional method. It will explore the way to improve Retailer satisfaction. It will also explore the way to come up as increase in the market share in wafer industry. Also it will help to carry out their reach to the customer

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It will help to know the taste, preferences and the expectations of the consumer.

3.7. Limitation of Study

Limited scope: The area which is taken into consideration for the study is restricted only to Jaipur city.

Biased: Findings are based on the views expressed by the consumers. So it may suffer from biased prejudices of individual retailer.

Respondents: Some of the respondents were not co-operative & many seem to be having no interest.

Limited Scope: The study has not been intended on a very large scale, have the possibility of errors, which cannot be ruled out. The survey has been conducted only in few areas of jaipur. No time to answer questions: Lack of retailers interest to answer the questions. Retailer seems wastage of time.

The information given by the client may be false and biased.

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4. Facts & Findings

SUMMARY OF FINDINGS

16 people out of 36 people who like to eat snacks feel that as compared to other brands Bingo is much better. Other 12 feel that Bingo is somewhat better and 8 feel that Bingo is about the same as other brands. None feel that Bingo is somewhat worse or much worse than other brands. When asked how often they eat Bingo 22 people said once a week or more often, 11 people said everyday and 3 people said 2-3 times a month.

Following are the Findings of distribution Network

I. To check the availability, visibility and DND (if any) of Bingo at retail outlet. While doing this, I understood about distribution and stocking process at WD (Wholesale Distributor) point is as follows: a) Ordering process b) Billing process. c) Delivery process. From the above research and operation, Retailers and distributors point of view was cleared. II. To collect information of Frito-Lays and analyze the data thereafter. For that I have interviewed Frito-Lays distributors and company official. III. In order to overcome weakness, my recommendations and contributions.

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In the duration of my project I use to visit the market daily with DS (distributor salesmen) and analyze the market of ITC Bingo and Frito-Lays. ITC & other companies provide same margin to retailer. The margin is provided on the based of amount of supply to retailer.

Important factors
OUTLET COVERAGE: Salesmen are covering the whole Jaipur city In internal areas especially in the city, BINGO is performing well.

VISIBILITY: After covering 25 outlets everyday with the DS, it is found that at more than 15 outlets, BINGO is visible No visibility of BINGO at the railway station and bus stand BINGO is visible at more than 1/3 outlets of the total outlets in Jaipur 5 Rs. Pack is mostly visible TEDE MEDE is considered the most favored category among all Stand are not clean & other brands of product in the racks or stand. FRESHNESS: o For freshness it was considered that if the manufacturing month is 5 months old then the stock is fresh. o On the above parameter more than 95% stock is considered fresh TRADE SCHEMES: No credit is given by the company or the salesmen No cash discount is given 6% is the maximum discount that is given on the purchase of more than 1000 Rs.
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Margin is somewhat similar to LAYS but less than Diamond and PARLE

SALES PRACTICES:

No credit is given to the retailers. On the spot ready stock is provided to the retailers. Stock is also provided by Ordering stock or Billing process. Units are carried in taxi,auto or rickshaw. Detailed billing is done by the salesmen

CONSUMER OFFERS: 50% extra is provided in TEDE MEDE category Lack of attractive offers for the consumers LAYS is providing good consumer offers like: a. Kurkure is providing Tea Time value share pack. b. 33% extra in 10 Rs pack of Uncle Chips. c. Super Saver pack of 20 Rs Uncle Chips with 72g d. World Cup Special flavors with exciting offers of winning prizes e. Share pack of 10 and 20 Rs LAYS. f. Super saver pack of 30 Rs Lays.

GENERAL FINDINGS:

We are competing with our prime competitor LAYS. BINGO is a well established brand. BINGO is performing well in the internal areas of the city. TEDE MEDE is on the top of the chart among all categories of BINGO BINGO CHIPS are competing well with LAYS in small outlets.
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MAD ANGLES are not performing up to the mark In the racks of BINGO, LAYS are being displayed.

Why LAYS in the market???? LAYS has first mover advantage in the wafer market. LAYS has captured the market for a very long time. LAYS has adopted intensive advertising and they have better promotion style. Increasing consumer demand More salesmen, more routes to be covered. Salesmen are better trained. They could easily convert the sales. However, the strong brand image of LAYS also helps them.

Why sales of BINGO are decreasing??? Lack of stock in godown Imbalance between demand and supply Outdated stock Summer vacations. Therefore, students are not purchasing BINGO. Salesmen are not capable enough to convert the sales. Clashes of areas of salesmen Competing with a well established brand LAYS Ignoring other potential brands like Diamond & PARLE. Their margin are high and good in weight Lack of racks, hanger etc. to display the products at some outlets

Finding about the working in ITC

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 ITC uses FIFO method to reduce the wastage of goods due to expiry. They also keep the good on constant move from low sale area to high sale area. The company collects all the expired goods four time a year, and destroy them. Retailers must return expired or damaged products within six month after the date of expiry. Adjustment for them is done in three month time. ITC provide their retailers with racks, hanger, etc to display the products. The benefits received by the retailer depend upon their sales volume and also the location of their shops.

Other Factors of the Brand ITC has a good mix of traditional and modern type of distribution channel.

The response of customer towards Bingo is positive.

At some outlets the sale was good.

Offer packs or consumer offer packs mostly sales.

The total coverage of ITC Bingo snacks falls very short in comparison to Frito-Lays.

Sometime there was demand but no supply.

One of the major problems is that many packets are being expired or due to wear and tear the products are not saleable in the market. Retailers have complained many times but no response is being taken.
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Majority of retailers is asking about Boards, Display, and Racks.

Delay in replacement of Chips.

Some Shop keepers do not get scheme on time. Also at some places Bingos signage is still hanging in spite of no with those outlets. transactions

The problem is the lack of coverage and promotion activities & proper advertisement. So for promotion activities there are some point recommended by me in the next page.

5. Analysis of Data & Data Interpretation

Data was collected through visiting and surveying 210 outlets (Departmental Stores, Convenience Stores, Wholesale outlets) serviced by ITC in Jaipur. The outlets covered were present in area covered by two WDs of ITC, namely S.K. Monutrade Pvt .Ltd and M/s Pawan Associates WDS. The objective of the focused data collection was to get a clearer comparative picture.

Area Covered
Day 1: Kantichand Road with Ready Stock Day 2: Bagru Road with Ready Stock Day 3: Sindhi Colony with Ordering Stock Day 4: Vidh. Nagar with Ready Stock Day 5: Niwaru Road with Ordering Stock Other Days : Mansarovar
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 Malviya Nagar Sanganer Diggi Road Radha Vallabh Marg\ Sangam Road Anta Colony & Sunder Nagar Kisaan Colony & Shikaarpur Road in Rural area

Area of Questioning
Ordering Stock Ready Stock Complaints & Expiry about the product Cash Discount Schemes of the brands with other competitors Companies stocked & preferred company. Availability & Visibility of product. Frequency of salesman visit. Cash and credit term. Weekly/Monthly sales. Replacement of stock. Sales Practices Trade scheme and consumer offers.

In order to extract the meaningful information from the data collected an analysis of data is done using pie charts, bar graphs etc. Data collected on the basis of two types:1. On the basis of Retailers 2. On the basis of Customers

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SALESMENS VISIT TO THE MARKET

Diamond

80

Parle

95

Column1

Lays

190

ITC 0

180 100 200 300 400 500

Out of 210 outlets covered, 180 outlets are visited by the ITCs salesmen, Lays DS visits 190 outlets, Parle DS visits 95 outlets and Diamonds DS visit 80 outlets. In rural areas, at many outlets the DS of Lays and Parle do not visit the outlets.

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DS Visit in a week

more

OTHERS Thrice a week Column2 Column1 Parle Twice a week LAYS ITC once a week

50

100

150

200

250

300

350

400

450

500

Once a week Twice week

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a Thrice week

a More

ITC LAYS PARLE OTHERS

180 190 95 90

0 0 25 65

0 0 0 0

0 0 0 0

Availability of Product

Others Column2 Parle

LAYS

ITC 0 100 200 300 400 500

Availability of Product ITC 155

39

LAYS PARLE OTHERS

185 43 90

Out of 210 outlets, LAYS is on the top of the chart with availability in 185 outlets whereas ITCs Bingo is available in 155 outlets. Parle is available in 43 and others including Parle, Crax, & Diamond are available in 90 outlets of the internal city.

Preferred company

Prefered Company

25%

ITC

LAYS 11%

PARLE

41%

40

Total outlets

ITC 53

LAYS 87

PARLE 23

OTHERS 47

210

The above data clearly indicate that LAYS is most preferred company by the outlets due to the consumer demand and a strong brand image of the company. Some outlets prefer the ITC and PARLE just because of non reach of the DS of the LAYS.

Grievance handling by DS.

Total ITC LAYS PARLE 180 190 95 Yes 133 155 76 No 47 35 19

41

ITC

74% 26%

Yes No

LAYS
00 18%

Yes No

82%

42

PARLE
00

20%

Yes No 80%

During the survey it was found that as compared to the DS of ITC, the DS of LAYS are more efficient in handling the grievances of retailer. However the salesman of ITC is knowledgeable according to the response of the retailers. A frequent complaint is the result of delay in the stand demand. There must be a training program for the retailers to improve their knowledge and skills about the product and selling.

D&D(Damage and Destroy) satisfaction

Yes ITC LAYS PARLE 152 182 76 No 28 8 19

43

16

ITC
00

84 Yes No

4%

LAYS
00

Yes 96% No

44

20

PARLE
00

80 Yes No

The replacement of the expiry or damaged products is also a thing that needs a focus. The replacement of LAYS is more frequent than ITC. Most of the retailers refuse to place any order just because they were having a lot of stock to be replaced and told that they will place order only when the stock would be replaced

45

Managing Stock Out Total Outlets Contact Ds Contact directly 210 172 15 23 WD Other

11%

Managing Stock Out

0 7%

Contact Ds Contact WD directly Other

82%

In the situation of stock out, nearly 82% outlets point out that they wait for next visit by DS or buy substitute (other) where as 11% said they purchase product from secondary wholesalers.

46

Consumer Data Analysis and Interpretation

Preferred company

Prefered Company
15% 10% ITC LAYS PARLE

22%

53%

Total

No.

of ITC

LAYS 95

PARLE 18

OTHERS 27

Consumer

180

40

The above data clearly indicate that LAYS is most preferred company by the consumers due to a strong brand image of the company and also it matches their taste. ITC is trying its best to reach more and more consumers.

47

Criteria for selecting the favored company

Criteria for selection

23% Taste Pricing 50% Visiability/Availability

17%

No. Consumers 180

of Taste

Pricing

Visibility

Others

90

31

41

18

The above data clearly indicates that most of the consumers select their favorite wafer company by the taste. Although pricing and visibility/availability are also major criteria for them.

48

Source of knowledge for selecting the company

Source of knowledge

14%

Outlet Visibility Friends 50% Magazine

26%

Total

Outlet

Friends

Magazine/Newspaper Others

Consumers Visibility 180 90 47 25 18

49

The above data clearly indicate that visibility of the product at the outlet increases the knowledge of the consumer about the product. Also the recommendation of friends and relatives are always a major source of knowledge for any product. Magazines and newspaper also helped Bingo to reach to the consumers.

Improvement Area for Bingo

Improvement Area

17%

Taste 45% Marketing Pricing

30%

Total Consumer 180

Taste

Marketing

Pricing/Weight Others

81

54

32

13

The above data clearly indicate that taste and marketing are the two major areas of concern where some improvements are required. Like, taste of Mad Angles are good but in wafers
50

some difference with Excellency is required.

Factor of success for Bingo

Factor of success
10%

Taste 55% 30% Visibility/Availability Pricing/Weight

Total Consumers 453

Taste

Visibility/Availability Pricing/Weight Others

99

54

18

51

The above data clearly indicate that taste is the most favorable factor for the success of bingo. Although the visibility/availability and Pricing/weight cant be ignored. Other Datas of survey from the point of consumers are as follows :

The first objective of the research project is concerned with finding out what

percentage of people likes to eat snacks. The pie chart given below is clear on the percentage of people who like to eat snacks. Out of 200 respondents 144 like to eat snacks while 56 dont.

52

NO-56 28%

YES-144 72%

Our second objective is concerned with finding out which flavor of Bingo is most preferred.

Table showing the responses of people:

Flavours Respondents (value) Masala Potato chips Salted Potato chips Tomato Potato chips Chatkila Nimbu Achar Potato chips Tandoori Paneer Tikka Potato chips Mad Angles Tedhe Medhe 3 1 3 1 3 22 1 Respondents (percentage) 8% 3% 8% 3% 8% 61% 3%

53

Livewires

6%

3%

6%

8%
3% 8% 3% 8%

Masala Potato chips Salted Potato Chips Tomato Potato chips

Chatkila Nimbu Achar Potato Chips Tandoori Paneer Tikka potato chips Mad Angels
Tedhe Medhe

61%

Livewires

The above table and pie chart shows the responses of the people. It is clear that Bingos Mad Angles dominates the market for Bingo. The second spot is shared by two flavours equallyMasala potato chips and Tandoori Paneer Tikka potato chips. Third most popular format of Bingo is Livewires and the fourth spot is shared by Salted Potato Chips, Chatkila Nimbu Achar potato chips and Tedhe Medhe.

The third objective was to analyze the reasons for the popularity of the most preferred flavour. For this the respondents were asked what do they like most about Bingo. Following pie chart shows their responses.

54

5% 13% 8% 16% 47%

Taste Variety Quality Price Quantity Packaging

11%

From the above pie chart we can see that people like the taste of Bingo the most i.e. they like to eat Mad Angles Because of its unique format and flavor.

Fourth objective was to find out how much people are satisfied with Bingo. It means it is value for money & taste preference from others is also good. Following pie chart shows the satisfaction level of people:

55

unsatisfied 17% very satisfied 44%

somewhat satisfied 39%

The fifth objective was to find out how much people spend weekly on snacks.
No.of people 30 25 25 20 15 15 10 10 5 0 Money Spent
Below 50 50-100 Above 100

From the above diagram it is clear that most people spend below Rs.50 on Snacks. And very small part of the sample spends more than Rs.100 on snacks weekly.

Our sixth and last objective was to find out the preferences of people for different brands. Here, we aim to find out the most popular brand of snacks excluding Bingo.

56

14 12

13 9 7 5 2

Lays Kurkure Uncle chips Parle Haldirams namkeens

10
No. of 8 people 6 4 2 0

Snacks Brands

In the above graph we can see that Frito Lays is the most popular brand among people followed by Uncle Chips and Kurkure. Next is Haldirams Namkeens. The least popular brand appears to be Pringles. It may be because Pringle is based on American recepies and tastes and the Indian public has not been able to warm up to the American tastes. Also, Pringles is imported which makes it a little more expensive than Indian snacks.

57

TRADE SCHEMES Bingo:

On Purchase of 1-500 Rs 500-1000 Rs 1000 Above Discount Offered 4% 5% 6%

Lays:
M.R.P. 5 Rs 10 Rs Discount (In Slabs) 24+1 40+1 70+2 100+3 20 Rs 50+1 70+2 100+3 Discount (In %) 4% 2.5% 3.8% 3% 2% 3.8% 3%

58

Parle:
M.R.P. 5 Rs 10 Rs 20 Rs Discount (In Slabs) 24+1 24+1 24+1 Discount (In %) 4% 4% 4%

Diamond:
Credit period is given from one week to one month

CONSUMER OFFERS Bingo: 50% extra is provided in TEDE MEDE category Lays: 1. Kurkure is providing Tea Time value share pack. 2. 33% extra in 10 Rs pack of Uncle Chips. 3. Super Saver pack of 20 Rs Uncle Chips with 72g. 4. World Cup Special flavors with exciting offers of winning prizes. 5. Share pack of 10 and 20 Rs LAYS. 6. Pack of 30Rs lays pack with 110gms in it.

59

Parle:20% extra in 10 Rs. Packets.

SALES PRACTISES
BINGO: A. No credit is given to the retailers. B. On the spot ready stock is provided to the retailers. C. Units are carried in taxi or auto or rickshaw. D. Detailed billing is done by the salesmen

LAYS: A. No credit is given to the retailers. B. On the spot ready stock is provided to the retailers. C. Units are carried in taxi or auto. D. Summarized billing is done by the salesmen i.e. as a whole

Diamond A. Credit is given to the retailers on honesty basis for 1 week. (Upto 1 month) B. In very rare case 6 months credit can also be given. C. On the spot ready stock is provided to the retailers. D. Units are carried in taxi or rickshaw. E. Summarized billing on SKU basis is done by the salesmen PARLE:
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A. 1 week credit is given to the retailers. B. On the spot ready stock is provided to the retailers. C. Units are carried in taxi. D. Summarized billing on SKU basis is done by the salesmen.

COMPARATIVE ANALYSIS OF ITC BINGO V/S FRITO-LAYS CHIPS

PREMIUM SALTED JUICY TOMATO KETCHUP

RED CHILLI BIJLI SPICY MASALA REMIX

INTERNATIONAL CREAM & ONION

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BRIDGES MAD ANGLE

CHILLI DHAMAKA TOMATO MISCHIEF

HATKE-JHATKE
FUNKY MASALA TOMATO TWIST

62

TEDHE-MEDHE

ABOUT BINGO!
The launch of Bingo! On 14th March 2007 marked ITC's foray into the fast growing branded snack foods segment. Bingos portfolio includes an array of products in both Potato Chips & Finger Snacks segment. Bingo is positioned as a youthful and innovative snack, offering the consumers with choice in terms of both formats and flavors. The launch is symbolic of ITC Foods' distinct approach of introducing innovative and differentiated products in a largely undifferentiated market place. Bingos launch was strategically timed around the World Cup.The idea was to get the consumer to take that first bite.The company has positioned this brand as a fun brand targeting at the youth.Bingo are in two types-Chips & mad angles.

Bingo! Potato Chips the crunchiest potato chips Bingo! Potato Chips are all about irresistible combinations. They are a combination of crunchy potato chips along with yummy flavors. These flavors range from traditional favorites like Salted to innovative ones such as Red Chilli & Lime Pickle.

63

Whats new? Bingo! Pickle Tickle: Some lemons remain lemons, the tastier ones become lime pickle. But the naughty pickled lemons escape the jar, mix with crunchy potato chips to tickle your taste buds! A bite of the mouth watering Bingo! Pickle Tickle Potato Chips with just the right spicy and sour flavor of pickled lime in crunchy potato chips. It will surely make the taste buds crave for more! Pickle Tickle is currently being launched in the Southern parts of India. Bingo! Mad Angles "har angles se Mmmm" One of the biggest successes from the Bingo! portfolio, Bingo! Mad Angles has carved a niche for itself in the consumers mind and is synonymous with the perfect triangular snack. A combination of innovative flavours on a traditional khakra base, Mad Angles is a snack that is true to taste and perfect flavour delivery as well as shape, making it a snack thats truly "har angles se Mmmm" What's new? Bingo! brings you the chaat flavour that you can savour without having to stop by the "gali ka chaatwala". Let your fingers dive in to the perfect combination of the taste of fresh pudina, tangy tamarind, creamy yogurt and of course, the crunchiness of khakra triangles. Available in packs of Rs.5, Rs. 10 and Rs. 20, the new Bingo!

BRAND IDENTITY
A brand which is for the whole country by providing the customers with tastes (flavors) from all around India. Bingo identifies itself as a brand which is youthful, fun and colorful. The triangular shape of the chips makes it easily recognizable amongst the consumers.

WHATS IN THE NAME OF BINGO!

64

Exclamation Mark Recallable Trendy and Fun

Easy to pronounce

BINGO!

Catchy

FRITO LAYS

Company Profile of Frito-Lays

Frito-Lay is the world's largest manufacturer and distributor of snack foods and is a wholly owned subsidiary of PepsiCo. Since its entry in India in 1989, PepsiCos snack foods division Frito Lay India (FLI) has become the clear leader in branded salty snack segment with popular brands like Lays, Kurkure, Uncle Chips, Cheetos and Lehar Namkeens. Frito Lays India produces its snacks at its state-of-the-art plants in Channo (Punjab), Pune (Maharashtra) and Sankrail (West Bengal). The company operates over 40 distribution centers that serve more than 2,500 active stockists, reaching approximately 1 million retail outlets that
65

in turn make the product available at an arms length. Frito-Lay India Ltd. produces India's largest snack food manufacturers brands, including Ruffles, Hostess, Cheetos and Uncle Chips. Frito Lay's story is an example of how American recipes were adjusted to satisfy local tastes.

WINNING FLAVOUR
Lays, the worlds and Indias No 1 potato chips brand from Frito-Lay India, is all set to provide some new lip smacking tastes to its consumers. The four short listed flavors from a whopping 1.3 million ideas came from four winning consumers, each of whom gets Rs 5 lakh for their dillogical flavor ideas. Cheesy Mexicana, Tangy Twist, Mastana Mango and Hip Hop Honey & Chilly from a three-month long Give Us Your Delicious Flavor (GUYDF) campaign. The four flavors will be sold in the market across India for the next two months with the theme bachega sirf tastiest (survival of the tastiest). The flavor that elicits the maximum consumer votes will not only continue to stay in the market as the mega winner, but its ideator would be awarded a grand prize of Rs 50 lakh and 1% of sales revenue.

VARIANTS OF FRITO LAYS

CHIPS 1. Spanish tangy

Kurkure 1.Masala munch

Uncle chips 1.Spicy treat

Aliva 1.Special

tomato

2. American cream and onion

2. Chili chatka

2. Chatpata Masala

2.Special tomato

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3. Classic salted

3.Funjabi(rajma)

3.ChachakaChinese

3.Special salted

4. Magic Masala

4.

Rajhasthani

4.Special mint

Winning flavors

5. Hyderabadi

5. Hip hop honey

6. Solid masti twist

6. Cheesy Mexicana

7. Solid masti khattamittha

7. Tangy twist

8. Dewana tomato desi beat

8. Mastana mango

9. Flirty lime

10. Naughty tomato

COMPETITION AMONG VARIANTS OF BINGO Vs LAYS

67

BINGO CHIPS 1. Spicy Masala remix 2. International cream onion 3. Juicy tomato ketchup 4. Red chili bingo 5. Premium salted Bridges 6. Mad angle tomato 7. Mad angle chili 8. Mad angle achari 9. Hatke-Jhatke Funky 10. Hatke-Jhatke Tomato 11. Tedhe-Medhe

LAYS CHIPS Chilly Mexicana American cream and onion Spanish tangy tomato Magic Masala Classic salted

Kurkure Dewana tomato Kurkure chili chatka Kurkure Rajhasthani Kurkure Funjabi Kurkure Naughty Tomato Kurkure Masala Munch

VARIANTS OF PARLE
CHIPS FULLTOSS

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Tangy Tomato Classic salted Masala Masti Red Chilli Aloo Chat Cream and Onion

Green Mango Chatni Masala Munch Masala Kachori Tangy Pickle Jhalmuri

CALCULATION OF PRICE TO RETALIER (PTR)

MAXIMUM RETAIL PRICE ( MRP) PTR = 100 + % MARGIN

Main Competitors:
1. Frito-Lay Lays Kurkure Uncle Chipps
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Cheetos

2. Parle Full Toss

Comparison of Prices:
Product Price (ITC Ltd) Bingo Rs. 5 Rs. 10 Rs. 20 Product Price (Frito Lay) Lays Rs. 5 Rs. 10 Rs. 20 Product Price (Parle) Full Toss Rs. 5 Rs. 10 Rs. 20

Uncle Chipps Rs. 10 Rs. 20

Kurkure Rs. 5 Rs. 10 Rs. 20

Distribution Channel
Bingo Lays Parle

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Total No. of distributors Total No. of salesmen Total routes/beats Area Covered

4 7 42 Jaipur

1 12 72 Jaipur 7 42 Jaipur

M.R.P.
Bingo 5 Rs 10 Rs 20 Rs 4.46Rs 8.93Rs 17.86Rs Lays 4.50Rs 9.00Rs 18.00Rs

P.T.R
Parle 4.28Rs 8.56Rs 17.12Rs

WEIGHT ON CHIPS
M.R.P. 5Rs 10Rs 20Rs 30Rs Bingo 14g 28g 66g Lays 14g 28g 62g 110g Parle 17g 36g 84g -

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FULLTOSS/TEDE MEDE/ KURKURE/CHATAKA PATAKA/KURRAM

M.R.P. 5Rs 10Rs 20Rs Bingo 30g 67.5g Lays 25g 55g 130g Parle 30g 50g 150g

On MAD ANGLES M.R.P. 5Rs 10Rs 20Rs Bingo 20g 50g 120g

Extra Schemes in the Brands

Parle Uncle Chips Bingo - 20% Extra - 33% Extra - 50% Extra(In Tedhe Medhe)

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Product Portfolio

Bingo provides innovative finger foods like the Pakoda inspired Live Wires, Khakra inspired Mad Angles and Time pass snack in the form of Tedhe Medhe. The Potato Chips offerings include Salted, Masala and Tomato flavours, Chatkila Nimbu Achaar, etc. Bingo! International Cream & Onion is the brands latest addition to its existing unique and exciting range.

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FACILITIES PROVIDED BY THE COMPANY TO THE RETAILER

1. SCHEMES OF VOLUME PURCHASE

Cash discount

Card discount (sampling)

2. DISPLAY MATERIAL

Stickers

Banners

G.S. Boards

D.P.S. Boards

Racks

Counters

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6. SWOT Analysis

SWOT analysis is a tool for auditing an organization and its environment. It is the first
stage of planning and helps marketers to focus on key issues.

SWOT

stands for

strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors.

Internal

S W O T

Things the company does well.

Things the company does not do well.

Conditions in the external environment that favor strengths.

External

Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.

75

Strengths and Weaknesses (INTERNAL)

Production Costs Marketing Skills Employee Capabilities Financial Resources Available Technology Company/Brand Image

Opportunities And Threats (EXTERNAL)

Social Demographic Economic Technological Political/Legal Competitive

76

Strengths Believe on the customer satisfaction. ITC has a broader product line and outstanding reputation. Record revenues and increasing market share Great brands, strong distribution, innovative capabilities popular with younger people, wide array of brands ITC has a big share , popular, well know by customers, hire celebrities for promotion Company has good market share in Jaipur Company has a Brand Equity among Consumers. ITC is a well-established co., so it has a good reputation in the market. Presence of well-known brands in FMCG sector Abundant availability of raw material

Weaknesses No provision for regular replacement of damage of packets. Distribution is not proper so we can say not justified. Non-fulfillment of commitments on time, made to shopkeepers. Incompetent salesman who do not give the schemes in the market regularly. Unavailability of various demanded flavors like American lays, uncle chips. Not proper control over distribution network Low availability of adequate infrastructural facilities Inefficient supply chain due to a large number of intermediaries

77

Opportunities Increase the coverage areas. Increase market share by improving service Increase the target consumer every year. Company can go for more Monopoly counters. May tie up or liaison with major showrooms, computer centers & restaurant. Huge publicity of Bingo has created a lot of demand. Company has brand equity in the eyes of customers, so its new products can easily penetrates in the market. Untapped rural market. Rising income levels, i.e. increase in purchasing power of consumers water related products, soft drinks, energy drinks

Threats Distributors are reducing in Jaipur city. Constant competition with Lays. Other snacks companies (i.e Parle, Diamond etc) are increasing competition. Decline in market reputation due to ineffectiveness & declaring service. Aggressive marketing strategies of Lays. Threat of competitors new brand entry in the market in near future. High taxation High packaging cost

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7. Conclusion

My Project gives me the true knowledge of customer relationship concepts & also helped to understand the working environment of the ITC. The major thing, which I found in my whole project, is as follow:

The market share of Lays is more than Itc. The distribution channel of both companies is not proper. Advertising policy of Lays is better than Itc. Company relation with retailers is credit based, which provided company to penetrate into the Market. Sincere efforts for Sales promotion are required. A communication channel between retailers and company is required. Route in charge should be appointed on all routes in consultation with marketing department. Information about the companys sales promotional scheme and product development should be communicated to retailers. Proper distribution of Incentive Package should be provided among retailers. There is a need to put the image of our product Bingo in the mind of customers before they come to purchase at shop. Lays has been around for a longer time and has its loyalists. Lays scores on flavor while Bingo is crunchier. Right now Lays has the upper hand but Bingo has a good thing
79

going with new and innovative products like 'Mad Angles'

8. Recommendations & Suggestions

Recommendations

There is vast distribution gap between ITC Bingo snacks and Frito-Lays which has to be filled up in order to increase the sales for that ITC should consider:

Width of Distribution: total number of outlets covered should be increase in order to bridge the distribution gap. For that ITC should

Increase the number of DS.

Ready Stock: there are many areas around the city where supply through loading auto is not possible for that ready-stock should be made available.

We can give advertisement at news papers,pamplets if we talk with operators for our advertisement.

We can increase the total margin given to retailers.

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We can introduce new schemes for: Wholesaler scheme? o Wholesaler is totally interested in margin or demand which has high demand in the market. At present ITC Bingo is in its growing stage if we provide comparatively high margin to wholesaler then it will influence the sale.

We can introduce new consumer offer packs.

To some of posh area we can provide free sample of Bingo so that the people get aware of the product quality.

Company should appoint competent & honest salesman so that they could provide schemes to the entire retailers & cover their full route. It is often seen that some salesman do not intimate schemes to the retailer & few of the retailers complained about it. So there should be frequent visits of Customer Executives to their respective areas to keep the shopkeepers benefited with various schemes.

Delay in starting of supply vans from respective depot should be checked & a proper time register should be maintained.

Most of the retailers are complaining about non-fulfillment of commitments regarding their sampling. Company should make sure that the retailers get the sampling on time so that they are satisfied.

Most of the retailers are complaining about delay & no replacement of Chips

Marketing Management should sort some solutions to this major problem of replacing Chips.

Half filled chips should also be checked at the time of issue of goods
81

from the distributors go down to the respective routes.

Introduce a celebrity in order to increase the fame of BINGO In order to drive the distribution visibility should be increased at the shops/outlets. Intensive action should be taken in this context

Opt for a differentiation strategy because even if people buy wafer but they call LAYS dena or if they buy TEDE MEDE they say KURKURE dena.

Retailers should be provided with some attractive schemes. Actions should be taken for increasing consumer demand Promotional campaign should be conducted at the school for making awareness among the kids because they are the major consumer.

Improvement needed in regular supply. POP and display activities should be on regular basis. There should be a training program for salesmen so that they could handle all the grievances of the retailers.

Salesmen could be trained in such a way that they could take on the spot decisions. Retailers should be provided with a helpline no. so that they can solve their problem. Cash discount should be given to the retailer to encourage cash payment. Credit for short period should be given because it is the demand of some retailers Racks, hangers etc. should be provided where ever it is required in order to increase the level of visibility at the outlets.

At the outlets, it is found that in the racks of BINGO, LAYS are being displayed. DS should take action at the outlets or intimate the superiors so that they could take

82

necessary actions Some cultural or academic programs should be conducted and BINGO word can be used to express the winning moment and give some BINGO products as small prizes. This will make awareness among the kids of BINGO In the internal areas and those places where DS of LAYS cant reach, is a place for some good opportunity. In the city area, neither LAYS nor BINGO are doing well. Those are the places where the scope for BINGO can be created Introduce some better consumer offers at regular interval in order to attract more and more consumers There should be some arrangement for the retailers so that they can deal with the situation like what if the stock ended earlier? Should I wait for the next visit of DS?

Suggestions

An inspection officer should be recruited who perform surprise inspection of the market and find out the problems.

Salary of the sales personals should be increased so they may not indulge in fraud to retailers.

The vehicles of the agency should be inspected so the delivery should be maintained.

The supply from the factory to the agency should be good especially the brands like Mad Angles & Tedhe Medhe.

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9. Appendix 10. Bibliography

BOOKS:

Marketing Management- Radha Swami/ Nam kumari

Research Methodology-C.R.Kothari

Principles of Marketing-P. Kotler & Armstrong

WEBSITES: www.google.com

www.ask.com

www.wikipedia.org

NEWS PAPERS:

The Times Of India

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The Economics Times

Hindustan Times

11. Questionnaire
RESEARCH PROJECT ON THE STUDY OF BINGO

This is survey on Bingo by Shubham Jain for the partial fulfilment of the requirements for the awards the degree of MASTER OF BUSINESS ADMINISTRATION. So kindly give your response to these questions:-

QUESTIONNAIRE on

Name: _______________________

Age : ________

Signature: ___________________

85

General Instructions: 1. Answer all questions. 2. Indicate your answer by marking a tick against an appropriate option. 3. Mark only one option in all questions.

Q1. Do you like to eat snacks? Yes ___ No ___

Q2. Have you heard of ITCs BINGO? Yes ___ No ___ Q3. Have you ever tried BINGO? Yes ___ No ___

Q4. Which flavour do you like the most? 1. Masala Potato Chip 2. Salted Potato Chip 3. Tomato Potato Chip 4. Chatkila Nimbu Achar Potato Chip 5. Tandoori Paneer Tikka Potato Chip 6. Mad Angles 7. Tedhe Medhe
86

___ ___ ___ ___ ___ ___ ___

8. Livewires

___

Q5. How often do you have BINGO? Once a week or more often Everyday 2 to 3 times a month ___ ___ ___

Q6. How much do you spend weekly on snacks? Below Rs. 50 Rs. 50-100 ___ ___

More than Rs. 100 ___

Q7. Overall, how satisfied are you with BINGO? Very satisfied Somewhat satisfied Unsatisfied ___ ___ ___

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Q8. What do you like about BINGO? Taste Variety Quality Price Quantity Packaging ___ ___ ___ ___ ___ ___

Q9.

Compared to other snacks (such as Kurkure, Lays, Parle etc.) that are available, would

you say that BINGO is? Much better Somewhat Better About the same Somewhat Worse Much Worse ___ ___ ___ ___ ___

Q10. How likely are you to recommend BINGO to others? Definitely will recommend Probably will recommend ___ ___

88

Not sure Probably will not recommend Definitely will not recommend

___ ___ ___

Q11. How did you first discover BINGO? Advertising- T.V, Newspaper, Radio Friends/ Family Saw it in store Other ___ ___ ___ ___

Q12. Before switching on to BINGO, which snack did you prefer?

Lays Kurkure Uncle chips Parle Haldiram Namkeens

_____ _____ _____ _____ _____

89