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Internship Report on ITC Ltd. "A Study of various factors leading to purchase decision of bathing
soap with respect to Fiama Di Wills of ITC Ltd."

Nov 3, 2016•

17 likes•17,541 views

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This document provides information about a study conducted on the various factors influencing
consumers' purchase decisions regarding bathing soaps with respect to ITC Ltd.'s Fiama Di Wills
brand. It includes a declaration, acknowledgements, table of contents, and sections on the
organization (ITC Ltd.), the identified problem/research objectives, research methodology, results
and findings, and the author's routine work during their internship. The study aimed to analyze the
various factors leading to consumers' purchase decisions regarding bathing soaps in order to
understand customer preferences and improve ITC Ltd.'s Fiama Di Wills brand performance.

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Internship Report on ITC Ltd. "A Study of various factors leading to purchase decision of bathing soap
with respect to Fiama Di Wills of ITC Ltd."

 1. A STUDY OF VARIOUS FACTORS LEADING TO PURCHASE DECISION OF BATHING SOAP WITH

RESPECT TO FIAMA DI WILLS OF ITC LTD. Submitted to RAJAGIRI BUSINESS SCHOOL In Partial
Fulfilment of the Requirements for the Award of POST GRADUATE DIPLOMA IN
MANAGEMENT (2015-17) By JUSTUS GEORGE Register No: P15131 RAJAGIRI BUSINESS
SCHOOL RAJAGIRI VALLEY KAKKANAD, KOCHI – 682039

 2. DECLARATION I, JUSTUS GEORGE, hereby declare that the internship report titled “ A
study on the factors influencing the purchase decision of consumers with respect to bathing
soaps” is a bonafide report of the project work done by me at ITC, Cochin, Kerala during the
period from January to February 2016. This study was undertaken in the partial fulfilment of
the requirement of the degree in Post Graduate Diploma in Management at Rajagiri School
of Management, Kakkanad, Cochin. I also declare that this report has not been submitted to
any other university/board for the award of any degree/diploma. Place: Kochi Date:

 3. ACKNOWLEDGEMENT The gratification and elation of this project will be incomplete

without mentioning all the people who helped me to make it possible, whose guidance and
encouragement were valuable to me. I would like to express my gratitude to the Dr. BINOY
JOSEPH. for granting me the opportunity to do the project. First of all I thank the GOD
 ALMIGHTY for his immense grace and blessings at each and every stage of the organizational
internship. I am thankful to my Faculty Guide, REV. FR. FRANCIS SEBASTIAN CMI, faculty,
Rajagiri Business School, Kochi, for giving me his valuable guidance to execute the project as
per university requirements. My sincere thanks to my project guide, MR.ARUN KUMAR NAIR,
Asst. Manager, for giving me an opportunity to carry out my project study and for sparing his
valuable time for the same. It was a learning experience to work with him. I would like to
record my deepest sense of gratitude to my friends who encouraged me for making this
project a success. Above all I would like to thank all respondents who helped me with the
valuable information I needed for the project. Thanking You, Justus George

 4. CONTENTS TOPIC PAGE EXECUTIVE SUMMARY 1 SECTION ONE: ORGANIZATION STUDY

INDUSTRY ANALYSIS 2 SWOT ANALYSIS OF FMCG SECTOR 4 COMPANY PROFILE 5 COMPANY
STRUCTURE 13 ORGANIZATION STRUCTURE 14 GROUP COMPANIES 17 JOINT VENTURE 19
SWOT ANALYSIS OF ITC 30 FINANCIAL ANALYSIS 26 SECTION TWO: PROBLEM STUDY
INTRODUCTION 32 PROBLEM STATEMENT, RESEARCH OBJECTIVE 33 RESEARCH DESIGN 33
RESEARCH METHODOLOGY 34 LIMITATION 35 RESULTS AND ANALYSIS 36 FINDINGS 53
CONCLUSION 55 SECTION THREE: ROUTINE WORK DAILY ROUTINE 56 BIBLIOGRAPHY 68
ANNEXURE

 5. SECTION I ORGANIZATIONAL STUDY

 6. EXECUTIVE SUMMARY The FMCG sector in India has played a vital role in the growth and
development of the country Fast Moving Consumer Goods (FMCG) also known as consumer
packaged goods, are those goods which are sold quickly at relatively low costs. Some
examples of FMCG includes the wide variety of frequently purchased consumer products like
soaps, tooth pastes, detergents, shaving products, packaged food products etc. Availability of
key raw materials, cheaper labour costs and presence across the entire value chain gives
India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in
2003 to US$ 33.4 billion in 2015. Nielsen predicts that India’s FMCG industry will grow from
$37 billion in 2013 to $49 billion in 2016.Indian FMCG industry expected to grow 7% in 2014,
10% in 2015 and about 12% in 2016, taking the sales in 2016 to $49 billion. Distribution
growth, innovations around sachet offerings, employment rates and index of industrial
production (IIP) are key influencers of FMCG sales in India. ITC is an Indian conglomerate
headquartered in Kolkata, West Bengal. Its diversified business includes five segments: Fast
Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri Business &
Information Technology. ITC is an outstanding market leader in its traditional businesses of
Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports. As part of the summer
internship program various projects done in ITC’s FMCG - personnel care division. The main
project was conducted at the Big Bazaar outlets at Trivanthapuram, Kerala where in direct
sales was done after analysing the major accounts there at Trivanthapuram. The project was
done to analyse the competitors of ITC Ltd. in Trivanthapuram city like Pothy’s, Reliance
Fresh, More and Big Bazaar outlets and then to understand their marketing strategies and
also to understand the market. As a part of study on the opportunity analysis of ITC products
in Regional Accounts 4 outlets was mapped and visited to collect necessary information
regarding the market, competitors. The information regarding the market was documented
for further studies. As the part of project sell out activities was carried out in two Big Bazaar
stores and its effectiveness is to be measured by analysing the change in sales percentage. To
understand about the purchase decision of consumers on bathing soaps a problem centric
 study was conducted that aimed in ANALYSIS OF VARIOUS FACTORS LEADING TO PURCHASE
DECISION OF BATHING SOAPS.

 7. INDUSTRY ANALYSIS FMCG (Fast Moving Consumer Goods) Industry, also called as CPG
(Consumer packaged goods) industry primarily deals with the production, distribution and
marketing of consumer packaged goods. The FMCG products are those consumables which
are normally consumed by the consumers at a regular interval. They also tend to be the high
volume, low cost items. This multi-million dollar sector is made up of an enormous range of
well-known brand names – the kind that consumers use every single day. Some of the prime
activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry
also engaged in operations, supply chain, production and general management. It has a
strong MNC presence and is characterised by a well-established distribution network,
intense competition between the organised and unorganised segments and low operational
cost. Availability of key raw materials, cheaper labour costs and presence across the entire
value chain gives India a competitive advantage. More and more companies are entering this
emerging sector with better products. Global consumer product groups eyeing inorganic
growth opportunities in emerging markets like India. Quite a number of people of India are
dependent on the FMCG products for their day to day operations. Its principal constituents
are Household Care, Personal Care and Food & Beverages. The best FMCG companies are
characterised by their capability to produce the items that are in highest demand by
consumers and, at the same time, develop loyalty and trust towards their brands. FMCG
Industry is one of the few industries which have showed a positive growth even in the time
of recession. The year 2016-17 is likely to be a very positive year for the FMCG industry as a
whole. Despite rising commodity prices, which will continue to put pressure on performance,
we can expect demand to continue to be robust especially from rural India which is seeing
rising income levels and greater propensity to spend. Some of the merits of this industry are
low operational cost, distribution networks, presence of renowned FMCG companies, and
population growth. FMCG Industry Economy FMCG industry provides a wide range of
consumables and accordingly the amount of money circulated against FMCG products is also
very high. The competition among FMCG manufacturers is also growing and as a result of
this, investment in FMCG industry is also increasing, specifically in India, overall FMCG
market is expected to increase at a compound annual growth rate (CAGR)

 8. of 14.7 per cent to touch US$ 110.4 billion during 2012-2020, with the rural FMCG market
anticipated to increase at a CAGR of 17.7 per cent to reach US$ 100 billion during 2012-2025.
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.
Growth is also likely to come from consumer 'upgrading' in the matured product categories.
With 200 million people expected to shift to processed and packaged food by 2010, India
needs around US$ 28 billion of investment in the food-processing industry. Common FMCG
Products Usually there are mainly four product categories of FMCG products as : home and
personal care, foods and beverages ,cigarettes and alcohol .Some common FMCG product
categories include food and dairy products, glassware, paper products, pharmaceuticals,
consumer electronics, packaged food products, plastic goods, printing and stationery,
household products, photography, drinks etc. and some of the examples of FMCG products
are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes, watches,
soaps etc. Market potentiality of FMCG Industry Some of the merits of FMCG industry, which
 made this industry as a potential one are low operational cost, strong distribution networks,
and presence of renowned FMCG companies. Population growth is another factor which is
responsible behind the success of this industry. The Indian FMCG sector is the fourth largest
sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong
MNC presence and is characterised by a well-established distribution network, intense
competition between the organised and unorganised segments and low operational cost.
Availability of key raw materials, cheaper labour costs and presence across the entire value
chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6
billion in 2003 to US$ 33.4 billion in 2015.In India is there are several untapped market ND
channels. 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. Growth is also likely to come from consumer 'upgrading' in the matured
product categories. With 200 million people expected to shift to processed and packaged
food by 2010, India needs around US$ 28 billion of investment in the food-processing
industry.

 9. THE TOP 10 COMPANIES IN FMCG SECTOR IN INDIA 1. Hindustan Unilever Ltd. 2. ITC Ltd 3.
Nestle India 4. GCMMF (AMUL) 5. Procter & Gamble Hygiene and Health Care 6. Dabur India
7. Cadbury India 8. Britannia Industries 9. Asian Paints 10. Marico Industries SWOT ANALYSIS
OF FMCG INDUSTRY Strength Weakness  Presence of established distribution networks in
both urban and rural areas Presence of well-known brands in FMCG sector.  High consumer
goods spending.  Low Operational Costs.  Diversified Products.  Lower scope of investing
in technology and achieving economies of scale, especially in small sectors.  Low exports
levels. Opportunities Threats  Flourishing rural market.  Rising income levels, i.e. increase
in purchasing power of consumers.  Large domestic market- a population of over one
billion.  Opportunities in innovation.  Export potential  High consumer goods spending 
“Me-too” products, which illegally mimic the labels of the established brands.These products
narrow the scope of FMCG products in rural and semi-urban market.  Removal of import
restrictions resulting in replacing of domestic brands  Slowdown in rural demand due to
presence of general products.  Tax and regulatory structure

 10. COMPANY PROFILE ITC LTD. previously called the Imperial Tobacco Company of India
limited is one of India's foremost private sector companies with a market capitalization US $
45 billion and a turnover of US $ 7 billion. ITC is India's leading Fast Moving Consumer Goods
company, the clear market leader in the Indian Paperboard and Packaging industry, a globally
acknowledged pioneer in farmer empowerment through its wide-reaching Agri Business and
runs the greenest luxury hotel chain in the world. ITC’s aspiration to create enduring value
for the nation and its stakeholders is manifest in its robust portfolio of traditional and
greenfield businesses encompassing Fast Moving Consumer Goods (FMCG), Hotels,
Paperboards & Specialty Papers, Packaging, Agri-Business, and Information Technology. This
diversified presence in the businesses of tomorrow is powered by a strategy to pursue
multiple drivers of growth based on its proven competencies, enterprise strengths and
strong synergies between its businesses. ITC was incorporated on August 24, 1910 under the
name Imperial Tobacco Company of India Limited. As the Company's ownership progressively
Indianized, the name of the Company was changed from Imperial Tobacco Company of India
Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In
recognition of the Company's multi- business portfolio encompassing a wide range of
businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &
 Specialty Papers, Agri- business, Foods, Lifestyle Retailing, Education & Stationery and
Personal Care - the full stops in the Company's name were removed effective September 18,
2001. The Company now stands rechristened 'ITC Limited'. ITC’s Agri-Business is one of
India’s largest exporters of agricultural products. ITC is one of the country’s biggest foreign
exchange earners (US $ 3.2 billion in the last decade). The company’s ‘e-choupal’ initiative is
enabling Indian agriculture significantly enhance its competitiveness by empowering Indian
farmers through the power of the Internet. ‘e- Choupal’ eliminates wasteful intermediation
and multiple handling. Thereby it significantly reduces transaction costs. Today ITC Ltd. is
rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable
Companies by Forbes magazine and as 'India's Most Admired Company' in a survey
conducted by Fortune India magazine and Hay Group. ITC also features as one of world's
largest sustainable value creator in the consumer goods industry in a study by the Boston
Consulting Group.
 11. ITC has been listed among India's Most Valuable Companies by Business Today magazine.
The Company is among India's '10 Most Valuable (Company) Brands', according to a study
conducted by Brand Finance and published by the Economic Times. ITC also ranks among
Asia's 50 best performing companies compiled by Business Week. COMPANY HISTORY AND
EVOLUTION The Company’s beginnings were humble. . ITC was incorporated on August 24,
1910 under the name Imperial Tobacco Company of India Limited. A leased office on Radha
Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its
16th birthday on August 24, 1926, by purchasing the plot of land situated at 37,
Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This
decision of the Company was historic in more ways than one. It was to mark the beginning of
a long and eventful journey into India's future. The Company's headquarter building, 'Virginia
House', which came up on that plot of land two years later, would go on to become one of
Kolkata's most venerated landmarks. Though the first six decades of the Company's existence
were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco
businesses, the Seventies witnessed the beginnings of a corporate transformation that would
usher in momentous changes in the life of the Company ITC's Packaging & Printing Business
was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today
India's most sophisticated packaging house. Year 1975: In 1975 the Company launched its
Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-
Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted
in the concept of creating value for the nation. ITC chose the hotels business for its potential
to earn high levels of foreign exchange, create tourism infrastructure and generate large
scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a
position of leadership, with over 100 owned and managed properties spread across India. In
1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited, which today has become the market leader in India. Bhadrachalam Paperboards
amalgamated with the Company effective March 13, 2002 and became a Division of the
Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with

 12. the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers
Division. ITC's paperboards' technology, productivity, quality and manufacturing processes
are comparable to the best in the world. It has also made an immense contribution to the
development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It
is directly involved in education, environmental protection and community development. In
2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd
 (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer
service with reduced lead time and a wider product range. ITC set up Surya Tobacco Co. in
Nepal in 1985 as an Indo-Nepal and British joint venture. Since inception, its shares have
been held by ITC, British American Tobacco and various independent shareholders in Nepal.
In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed
to Surya Nepal Private Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a
Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette
industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness
strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards
Division to form the Paperboards & Specialty Papers Division in November 2002. Also in
1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for
export of agri-commodities. The Division is today one of India's largest exporters. ITC's
unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers
in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first
rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the
rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya
Pradesh, Maharashtra and Uttar Pradesh. In 2000, ITC forayed into the Greeting, Gifting and
Stationery products business with the launch of Expressions range of greeting cards. A line of
premium range of notebooks under brand “Paperkraft” was launched in 2002. To augment
its offering and to reach a wider student population, the popular range of notebooks was
launched under brand “Classmate” in 2003. “Classmate” over the years has grown to
become India’s largest notebook brand and has also increased its portfolio to occupy a
greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam
Books, Geometry Boxes, Pens and Pencils under the “Classmate” brand. In 2008, ITC
repositioned the business as the Education and Stationery Products Business and launched
India's first environment friendly premium business paper

 13. under the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the premium
executive stationery and office consumables segment. Paperkraft entered new categories in
the office consumable segment with the launch of Textliners, Permanent Ink Markers and
White Board Markers in 2009. ITC also entered the Lifestyle Retailing business with the Wills
Sport range of international quality relaxed wear for men and women in 2000. The Wills
Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal
wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular
segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became
title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week
- that has gained recognition from buyers and retailers as the single largest B-2-B platform for
the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration
Series', taking the event forward to consumers. In 2000, ITC spun off its information
technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more
aggressively pursue emerging opportunities in this area. Today ITC Infotech is one of India’s
fastest growing global IT and IT-enabled services companies and has established itself as a
key player in offshore outsourcing, providing outsourced IT solutions and services to leading
global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services
& Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and
Transportation) and Media & Entertainment. ITC's foray into the Foods business is an
outstanding example of successfully blending multiple internal competencies to create a new
driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India'
 ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples
segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad
atta (wheat flour). The year 2003 witnessed the introduction of Sunfeast as the Company
entered the biscuits segment. ITC's entered the fast growing branded snacks category with
Bingo in 2007. In eight years, the Foods business has grown to a significant size with over 200
differentiated products under six distinctive brands, with an enviable distribution reach, a
rapidly growing market share and a solid market standing. In 2002, ITC's philosophy of
contributing to enhancing the competitiveness of the entire value chain found yet another
expression in the Safety Matches initiative. ITC now markets popular safety matches brands
like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

 14. 2003: ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands
include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet,
Sandalwood, Madhur, Sambrani and Nagchampa. ITC introduced Essenza Di Wills, an
exclusive range of fine fragrances and bath & body care products for men and women in July
2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming
regimen with distinct lines for men (Inizio Homme) and Indian consumers the Company
launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in
September, October and December 2007 respectively. The Company also launched the
'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in
October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of
shampoos in June 2008.In 2010 ITC entered the fairness cream segment by launching
product ‘Vivel active fair’. In the year 2013 ENGAGE, India’s first range of couple deodorants
ITC Introduced kwiknic, new range of nicotine chewing gums in 2014. ITC on February 2015
purchased from Johnson & Johnson (health and pharmaceuticals major) two of its brands -
Savlon, a brand of antiseptic soaps and liquids, and Shower to Shower, a prickly heat powder.
ITC has entered the Fruit-based juices and beverages market with the launch of B Natural
juices in January 2015. B Natural makes great tasting juices & beverages with the goodness
of fruits. The brand believes that being healthy is a natural state, best served with great
taste, fun and enjoyment. VISION, MISSION, CORE VALUES AND GOVERNANCE POLICIES
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 Company's
stakeholders. MISSION To enhance the wealth generating capability of the enterprise in a
globalising environment, delivering superior and sustainable stakeholder value.

 15. ITC'S CORE VALUES ITC's Core Values are aimed at developing a customer-focused, high-
performance organisation which creates values for all its stakeholders. Trusteeship As
professional managers, we are conscious that ITC has been given to us in 'trust' by all our
stakeholders. ITC will actualise stakeholder value and interest on a long term sustainable
basis. Customer Focus ITC are always customer focused and will deliver what the customer
needs in terms of value, quality and satisfaction. Respect for People ITC is result oriented,
setting high performance standards for the organization as individuals and teams. ITC will
simultaneously respect and value people and uphold humanness and human dignity. ITC
acknowledges that every individual brings different perspectives and capabilities to the team
and that a strong team is founded on a variety of perspectives. ITC wants individuals to
dream, value differences, create and experiment in pursuit of opportunities and achieve
leadership through teamwork. Excellence ITC does what is right, do it well and win and strive
for excellence in whatever they do. Innovation ITC constantly pursues newer and better
 processes, products, services and management practices. Nation Orientation ITC is aware of
its responsibility to generate economic value for the Nation. In pursuit of its goals, ITC will
make no compromise in complying with applicable laws and regulations at all levels.

 16. CORPORATE STRATEGY ITC is a board-managed professional company, committed to

creating enduring value for the shareholder and for the nation. It has a rich organisational
culture rooted in its core values of respect for people and belief in empowerment. Its
philosophy of all-round value creation is backed by strong corporate governance policies and
systems. Corporate strategies include ITC’s corporate strategies are:  Create multiple drivers
of growth by developing a portfolio of world class businesses that best matches
organisational capability with opportunities in domestic and export markets.  Continue to
focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri
Business and Information Technology.  Benchmark the health of each business
comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. 
Ensure that each of its businesses is world class and internationally competitive.  Enhance
the competitive power of the portfolio through synergies derived by blending the diverse
skills and capabilities residing in ITC’s various businesses.  Create distributed leadership
within the organisation by nurturing talented and focused top management teams for each
of the businesses.  Continuously strengthen and refine Corporate Governance processes
and systems to catalyse the entrepreneurial energies of management by striking the golden
balance between executive freedom and the need for effective control and accountability.
CORPORATE GOVERNANCE Over the years, ITC has evolved from a single product company to
a multi-business corporation. Its businesses are spread over a wide spectrum, ranging from
cigarettes and tobacco to hotels, packaging, paper and paperboards and international
commodities trading. Each of these businesses is vastly different from the others in its type,
the state of its evolution and the basic nature of its activity, all of which influence the choice
of the form of governance. The challenge of governance for ITC therefore lies in fashioning a
model that addresses the

 17. uniqueness of each of its businesses and yet strengthens the unity of purpose of the
Company as a whole. ITC defines corporate governance as a systemic process by which
companies are directed and controlled to enhance their wealth generating capacity. Since
large corporations employ vast quantum of societal resources, we believe that the
governance process should ensure that these companies are managed in a manner that
meets stakeholder’s aspirations and societal expectations. CORE PRINCIPLES ITC's Corporate
Governance initiative is based on two core principles. These are:  Management must have
the executive freedom to drive the enterprise forward without undue restraints; and this
freedom of management should be exercised within a framework of effective accountability.
 ITC believes that any meaningful policy on Corporate Governance must provide
empowerment to the executive management of the Company, and simultaneously create a
mechanism of checks and balances which ensures that the decision making powers vested in
the executive management is not only not misused, but is used with care and responsibility
to meet stakeholder aspirations and societal expectations. From the above definition and
core principles of Corporate Governance emerge the cornerstones of ITC's governance
philosophy, namely trusteeship, transparency, empowerment and accountability, control and
ethical corporate citizenship. ITC believes that the practice of each of these leads to the
creation of the right corporate culture in which the company is managed in a manner that
fulfils the purpose of Corporate Governance.
 18. COMPANY STRUCTURE MANAGEMENT Flowing from the concept and principles of
Corporate Governance adopted by the Company, leadership within ITC is exercised at three
levels. The Board of Directors at the apex, as trustee of shareholders, carries the
responsibility for strategic supervision of the Company. The strategic management of the
Company rests with the Corporate Management Committee comprising the whole time
Directors and members drawn from senior management. The executive management of each
business division is vested with the Divisional Management Committee (DMC), headed by
the Chief Executive. Each DMC is responsible for and totally focused on the management of
its assigned business. This three-tiered interlinked leadership process creates a wholesome
balance between the need for focus and executive freedom, and the need for supervision
and control. Fig 1. ITC Board of Directors

 19. CORPORATE MANAGEMENT COMMITTEE Y C Deveshwar Chairman Nakul Anand

Executive Director P V Dhobale Executive Director K N Grant Executive Director Chitranjan
Dar Quality Assurance, LSTC, CPO & EHS Anand Nayak Human Resources Sanjiv Puri FMCG
Businessses S Sivakumar Agri & IT Businesses K S Suresh Legal Rajiv Tandon Finance B B
Chatterjee Secretarial Table 1. ITC Corporate Management Committee ORGANIZATION
STRUCTURE ITC Limited is headquartered in Kolkata, West Bengal, which is the head office of
the company. Under the head office the company is divided into zonal district offices as:
Northern district office, Southern district office, Eastern district office and Western district
office. Under each district office there will be branch offices targeted to serve for each state.
The structure of each branch is as follows:

 20. Fig 2. ITC Ltd. Branch Structure I DEPARTMENTS & FUNCTIONS 1) Finance Department-
Finance Department is headed by an Assistant Finance Manager who is in charge of the
whole branch. He is assisted by two finance executives and five office associates. Assistant
Finance Manager has to report to both the Branch Manager as well as to Finance Manager of
the District. The Finance Department gets the advance cash through cheques from the
distributors. These are credited against the distributors on the next day through Real Time
Gross Settlement (RTGS).This process is called the Banking operation. This is taken care by
one office associate. After the cheque is cleared, Sales Order is created for the Distributor.
This is done on the basis of the orders placed with the Marketing department. This is taken
care by two office associates. After this the Sales

 21. order is converted into Delivery order. This is done as per TPVS (Transport Planning and
Vehicle Optimisation).The logistics department is clubbed with Finance Department so as to
bring optimal utilisation. Delivery order approval is done by two office associates. After the
creation of delivery order, the goods are made ready for shipment and finally shipped out.
The Finance executives together with the logistics executives take care of this. Similarly the
finance executives also have a supervisory role over the office associates. 2) Marketing
Department-The Marketing Department in ITC is working under four heads namely: Foods,
Personal care Products, Key accounts and Cigarettes. Each of these departments are headed
by an Assistant manager. Under these managers there are Area Managers who are in charge
of a particular region. Area Managers are assisted by Area Executives who in turn look after
the sales trainees. The basic function of Marketing Department is to ensure superior sales for
the products of the company. The Department on a day-to-day basis collect the orders for
the products from different distributors, ensures the speedy delivery, ensures the superior
visibility and availability of the products at stores, undertakes various promotional activities
 etc. The number of Area Managers and Area Executives are variable according to the size and
sales of the market. Fig 3. ITC Branch Structure II

 22. 3) Logistics Department-The Logistics Department of ITC consist of Branch Logistics

Executive and Godown Logistics Executives. Generally in a branch, there is only one Executive
whereas in Godowns there will be two executives. They have to report to the Regional
Logistics Manager in the district office as well as to the Branch Manager. The Regional
Logistics Manager has to report to the District Manager as well as to the Divisional Logistics
Manager. The basic function of the logistics department is to arrange for the trucks,
transport vehicle optimisation, working with the finance department for the conversion of
delivery order into shipment of goods and the shipping out of the goods. 4) HR Department-
The Human Resource Department of ITC generally has an HR office associate at the branch
level who takes care of the selection/appointment of the sales executives, the appraisal and
grievance redressal of different employees. The HR executive of each branch has to report to
the Assistant Manager as well as to the HR executive at the District level who has to report to
the HR Manager at the District level. GROUP COMPANIES Surya Nepal Private Limited (SNPL):
is an Indo-Nepal-UK joint venture, which started operations in Nepal in 1986. SNPL, a
subsidiary of ITC Ltd, India, is the largest private sector enterprise in Nepal. The balance
shares are held by dispersed Nepalese shareholders and British American Tobacco, UK. ITC
Info-Tech: ITC InfoTech is a fully owned subsidiary of ITC Ltd. Formed in 2000; ITC InfoTech
has today carved a niche for itself in the arena of global IT services and solutions. The
company has established technology Centres of Excellence (CoE) to deepen capabilities and
incubate cutting-edge technical competencies. A robust outsourcing model, comprehensive
suite of differentiated solutions & services and focus on excellence in execution has provided
the company a leadership position in chosen domains. With over 5600 employees, ITC
InfoTech conforms to the highest standards in process quality, with ISO 27001, ISO 9001 and
CMMi Level 3 accreditations. LANDBASE: Landbase India Limited, a subsidiary of ITC, owns
the prestigious Classic Golf Resort in the outskirts of Delhi. Classic Golf Resort is the first
South Asian signature championship course designed by Jack Nicklaus. Spread over 300 acres
at the foothills of the picturesque Aravalli, it comprises an 18- hole signature championship
course, a nine-hole

 23. signature canyon course, a social club and a sports complex which offers non-golfing
sports and recreational activities. King Maker Marketing INC: Established in 1994, King Maker
Marketing Inc. (KMM) is a leading supplier of premium quality, value-priced cigarettes and
roll-your-own (RYO) tobacco. The company's product lines, which include the Checkers, Hi-
Val and Gold Crest, are made of 100% American Blend tobaccos to ensure a smooth taste
and consistent quality. KMM also provides market research services relating to the US
Tobacco and FMCG markets. TECHNICO PTY LTD: Technico Pty Limited, Australia ('Technico')
is an agri- biotechnology company specializing in rapid seed potato production. Technico has
developed the proprietary TECHNITUBER® technology, which involves the use of pathogen-
tested tissue culture and processes that enable the rapid multiplication of seed potatoes
from pathogen-tested plants in controlled environment. Russell credit Limited: Russell Credit
Limited is a 100% subsidiary of ITC Limited. Russell is an Investment Company with activities
primarily confined to making long-term investments in areas of strategic thrust, namely
FMCG, Hotels & Tourism, Paper, Paperboards & Packaging Agri Business and Information
Technology. Russell has one wholly owned subsidiary, Greenacre Holdings Limited, which is
engaged in property infrastructure maintenance. WIMCO Limited: The acquisition of Wimco
through Russell Credit Limited, a 100% subsidiary of ITC Limited on July 1, 2005, aimed to
 further consolidate the market standing of ITC's Matches business through synergy benefits
of combined portfolio of offerings, improved servicing of proximal markets and freight
optimization. Subsequently Wimco became a direct subsidiary of ITC effective 29th
September, 2011 when ITC acquired the entire shareholding of Wimco from Russell Credit.
Srinivasa Resorts Limited: Srinivasa Resorts Limited is a subsidiary of ITC Limited. ITC has 68%
stake in the Company. The Company owns the "ITC Kakatiya" at Hyderabad, which is
operated by ITC Limited. The Company continues to focus on hygiene, safety and
environment. The Company's Hotel, ITC Kakatiya has received various awards /recognitions,
significant amongst them are the prestigious Leadership in Energy and Environment Design
(LEED) Platinum certification from the United States Green Building Council (USGBC),
'Environment Champion Among Large Hotels' by Federation of Hotel & Restaurant
Associations of India, 'Greentech Silver Safety Award' in service sector for outstanding
achievement in safety management by Greentech Foundation, 'Certificate of Appreciation'
by Energy Conservation Mission and The Institution of Engineers (India) and 'HACCP

 24. Certification' for Food Safety System by Det Norske Veritas. The Company's Hotel also
has implemented 'Six Sigma' quality initiatives to further enhance service edge. Fortune Park
Hotels Limited: Fortune Park Hotels Ltd. is a subsidiary of ITC Ltd. Set up in 1995 to cater to
the mid-priced market segment in business and leisure destinations; it is today a professional
Hotel Management company, with forty operating hotels and many more in various stages of
completion. Bay Islands hotels Limited: Bay Islands Hotels Limited is a 100% subsidiary of ITC
Limited. The Company owns the hotel "Fortune Resort Bay Island" at Port Blair which is
licensed to ITC Limited and is operated by Fortune Park Hotels Limited under an Operating &
Marketing Services Agreement. Gold Flake Corporation Limited: Gold Flake Corporation
Limited is wholly owned subsidiary of ITC Limited. The Company's nature of business is
specific to general trading. ITC Filtrona Limited is a 50% joint venture of Gold Flake
Corporation Limited with Cigarette Components Limited, U.K. JOINT VENTURE Maharaja
Heritage Resorts Limited: Maharaja Heritage Resorts Limited, where ITC Limited has an
ownership interest of 50% is a joint venture with Jodhana Heritage Resorts Private Limited.
The joint venture company currently operates across India under the "WelcomHeritage"
brand. ITC Filtrona: ITC Filtrona Ltd is an equal partnership joint venture between ITC Limited
and Filtrona Plc, U.K., the world leader in filter design and development. The company is
located in Bangalore. ITC Filtrona commenced manufacturing of Acetate filter rods in 1994
and pioneered the full changeover of the Indian market to acetate filters from viscose filters
by 2000. The company has state-of-the-art technology and has the capacity of producing
over 13 billion rods per annum. It enjoys over 60% market share and has played a critical role
in import substitution. ITC Filtrona brings in world-class technology to the Indian market in
the form of Acetate filter rods and Specialty filters. ASSOCIATE COMPANIES Gujarat Hotels
Limited: ITC Limited holds 45.78% in Gujarat Hotels Limited. The Company owns the
"WelcomHotel Vadodara" at Vadodara which is operated by ITC Limited under an
 25. Operating Licence Agreement. WelcomHotel Vadodara offers plush accommodation and
top- of-the-line Business, Conference and Leisure facilities tailored to the requirement of the
discerning and modern day business traveller. International Travel House: International Travel
House is one of the largest total travel management companies in India with a presence in 13
cities. It offers a range of services which include corporate travel, car rental, destination
management services, world class holidays, incentive group travel, conference management
and foreign exchange. COMPANY STAKEHOLDERS ITC has adopted a multi-pronged, multi
stakeholder strategy for an inclusive approach to building partnerships in sustainable
 business practices. It has also put in place institutional mechanisms to facilitate strong
partnerships with communities in its programmes such as Watershed Development, Social
Forestry, Animal Husbandry Services and Women‘s Empowerment. These initiatives augment
the natural resource base and create sustainable rural livelihoods. Shareholders ITC believes
that protection and enhancement of shareholder wealth is one of the Company‘s key
responsibilities. The primary expectations of shareholders remain centred around continued
profitability and growth, effective communications and investor servicing. The Chairman
addresses and provides clarifications to shareholders at least once a year at the Annual
General Meeting in the presence of the Board. The Board encourages open dialogue with all
shareholders, including individuals, corporates and investors. Customers Enduring and long-
term customer relationships form the bedrock of ITC‘s businesses. Significant efforts are
made to gain insights into customers’ needs and aspirations and to seek consumer delight
through ITC‘s high-quality and cost competitive products and services. Most of ITC‘s
Businesses have various mechanisms to capture the needs and expectations of the customer,
such as market surveys, personal contacts/visits, events, customer satisfaction surveys, joint
development and improvement projects, key account management, multi-level interfaces at
dealer-customer-end user, personalised lifestyle privilege programme, etc. Robust Quality
Assurance systems, supported by process innovations, adoption of green technology, lean
management, six sigma and TPM, help to achieve benchmarks in the quality of products

 26. and services that can sustain and enhance customer delight. ITC also continues to invest
significantly in R&D to develop newer products/variants. Employees ITC recognises that the
creation of a high quality human resource team to drive the businesses of tomorrow requires
focus on providing personal development and growth, a work culture that ensures high
levels of performance, provides world-class learning experiences and a caring & empowering
work environment. Our unique employee value proposition is backed by strong corporate
equity enabled sustained engagement in challenging times. Each business focuses on
engaging employees through communication meetings, mentoring, suggestion schemes,
engagement surveys and talent recognition programmes. ITC‘s remuneration philosophy
recognises performance and meritocracy, whilst remaining competitive and sustainable. The
Company fosters a culture that rewards performance, continuous learning, collaboration and
capacity development across the organisation to be future- ready and meet head-on the
challenges posed by ever changing market realities. To address employee concerns, ITC units
have a structured grievance redressal mechanism to enable all grievances to be resolved in a
just and amicable manner. A grievance redressal committee, comprising representatives of
both unionised employees and managers, has been instituted to address their concerns.
ITC‘s unswerving belief in the mutuality of interests of key stakeholders, binds all employees
to a shared vision and purpose. ITC‘s units engage with employee representatives and
unions, thereby strengthening the collaborative spirit across all sections of employees.
Farmers Farmers are an important value chain partner for ITC and we continue to engage
with them through a large gamut of interventions. A primary cause of rural poverty is the
vicious cycle of low productivity, low income and low capacity to invest that continues to
plague Indian farmers. Addressing the root cause of these challenges, ITC co-created the e-
Choupal initiative with farmers to provide information and knowhow on agricultural best
practices, transmission of market signals, transparent discovery of prices, timely and relevant
weather information, access to quality inputs, and most importantly, efficient market access.

 27. ITC e-CHOUPAL The ITC e- Choupals, managed by trained farmers (sanchalaks), helped
the agricultural community access ready information in their local language. In addition, ITC
 worked closely with farmers to enhance agri productivity through demonstration farms and
customised extension services, apart from creating physical infrastructure in the form of
integrated rural services hubs. The ITC e-Choupal initiative has empowered over 4 million
farmers in 40,000 villages, raising rural productivity and incomes. Similarly, ITC works closely
with farmers in its Social and Farm Forestry programme to provide a wide spectrum of
extension services that impart knowledge and knowhow to farmers through dedicated
farmer training programmes. In addition, farmers have been benefitted by the extensive R&D
programme for clonal propagation which gives them high yielding quality saplings which are
disease resistant, can grow in shorter time spans and in difficult terrains such as wastelands.
This initiative has created over 64 million person days of employment for farmers in the state
of Andhra Pradesh. Suppliers The Company‘s supplier (both national and international)
engagements are supported by policies, processes and best practices that ensure that
procurement activity is conducted in an open, transparent and non-discriminatory manner.
Strong processes are in place to identify/develop and qualify vendors on the basis of supply
assurance, innovation quotient, product quality and value for money considerations. Formal
competitive processes are established and documented discussions, recommendations and
decisions underlay all procurement activity. Sole sourcing (to the extent possible) and
retroactive contracting are avoided. Contracts are tested for regulatory compliance and
supplier deliverables cognise for environmental, health and safety legislation. All businesses
of the Company have modern facilities and use state of the art technologies to ensure
benchmarked quality and value. Accordingly, the Company sources specialised production
machinery from reputed international as well as Indian manufacturers – across large,
medium and small scale sectors. Utility machinery such as boilers, generator sets, air-
conditioning and refrigeration machinery and electrical & electronic systems are sourced
largely from Indian or India based suppliers. Competent Indian contractors carry out
construction and renovation of new manufacturing facilities, hotels, warehouses & offices.
Nearly 90% of raw materials and 70% of spare parts and components have been locally
procured during the year. The Company actively encourages competency development
among local vendors and its vendor base includes numerous medium

 28. and small scale enterprises that are close to its manufacturing locations. Where
appropriate, vendors are provided technical support and managerial inputs to enable them
to move in tandem with the Company‘s business plans. The Company also supports several
vocational training initiatives in areas close to its operations. These have been effective in
empowering youth with requisite skills and increased opportunities for entrepreneurial
development. In addition, the Company has continued to set up sourcing centres in rural
India for several of its product categories, both directly and in collaboration with various
State agencies and NGOs to assist in the creation of sustainable livelihoods. Community ITC‘s
agri-businesses have forged a long and enduring partnership with rural communities. Their
initiatives contribute to empowering these communities to conserve and manage their
natural resources, create sustainable on and off-farm livelihoods and improve social
infrastructure, especially in areas where it impacts women and children. ITC has put in place
village-level institutional mechanisms which help transform rural communities into vibrant
economic organisations and empower stakeholders with enhanced incomes and livelihoods.
Government ITC interacts through industry bodies and various other forums with
Government / Regulatory Authorities on aspects relating to public policy frameworks. ITC, in
partnership with CII, has supported the creation of a unique institution — The CII-ITC Centre
of Excellence for Sustainable Development — to promote thought leadership, recognise
 sustainability champions and build awareness as well as capacity on issues related to
sustainable development and inclusive growth.

 29. ITC LIMITED CORPORATE OFFICE VIRGINIA HOUSE 37, J.L.NEHRU ROAD, KOLKATA-
700071 INDIA EMPLOYEE MANAGEMENT In ITC the different value chains related to our
Businesses provide direct and indirect employment to around 6 million people, whose
livelihoods are substantially linked to their association with the Company. Company’s human
resource management systems and processes aim at creating a responsive, customer-centric
and market focused culture that enhances organisational capability and agility. The company
employees over 30,000 employees till date. The fig. below shows the break-up of employees
at ITC Ltd. Fig 4. Gender wise employee break up

 30. COMPANY'S SHARE CAPITAL 545,78,25,430 Ordinary Shares of the Company,

representing 68.09% of the Company's paid up capital, as on 19th June, 2015 are in
dematerialised form. The paid-up share capital of the Company, as on 19th June, 2015, is
Rupees 801,55,19,541 (Rs.801.55 crores) divided into 801,55,19,541 Ordinary Shares of the
face value of Rupee 1/- each. Total No. of Shareholders as on 19th June, 2015 : 5,39,880 No.
of shareholders in dematerialised form : 4,96,563 No. of shareholders in physical form :
43,317 GDRs The Company, in 1993, made an offer of 45,00,000 Global Depository Receipts
(GDRs) with 15,00,000 warrants (in the ratio of 1 warrant for every three GDRs held) to
subscribe for the GDRs. 1,99,63,135 GDRs, representing 1,99,63,135 underlying Ordinary
shares of the Company, were outstanding as on March 31, 2015. The Company's GDRs are
listed on the Luxembourg Stock Exchange (Code: 004660919), at Societe de la Bourse de
Luxembourg, 35A Boulevard Joseph II, L-1840, Luxembourg.

 31. FINANCIAL STATEMENT FOR THE YEAR 2014-15

 35. SWOT ANALYSIS OF ITC ITC is a well-established and reputed Indian Private Sector
company which has been in business for more than 100 years. The presence for such a long
time has given it a strong expertise in selling and distribution channel. The company has also
been using the huge cash chunk it has from its undisputed leadership in Cigarettes business
to foray into other FMCG sectors. STRENGTHS 1. ITC leveraged its traditional businesses to
develop new brands in for new segments. ITC used its expertise in transporting and
distributing tobacco products to remote & distant parts of India to the advantage of its FMCG
products. ITC’s master chefs from its hotel chain are always asked to develop new food
concepts for its FMCG products. The greatest strength of the company is its wide range of
diversified products and services. 2. Well established distribution network over 6 million
retail outlets: The presence of around 6 million retail outlets over the country through which
the ITC products are available. Over 2 million retail outlets of these are directly serviced by
the ITC‘s distribution organisation. It uses own experienced transportation and distribution
network of tobacco products for reaching the FMCG products to remote and distant parts of
India. Hawkers from distribution points visit the outlets that are not operated by the
company’s competitors. The operation of hawkers at these outlets brings up the opportunity
to expand the product portfolio in the company. ITC is the company which has one of the
best distribution networks across the world. 3. World Class Research & Development: It has a
well-established world class research and development team at Bangalore with over 50
scientists. ITC recognises that cutting edge R&D can foster breakthrough innovation and
create powerful sources of sustainable competitive advantage. 4. Corporate Social
Responsibility: ITC‘s initiatives to build social capital through extensive community
engagement have led to the creation of sustainable livelihood opportunities for over 5
 million people. ITC has helped create more than 20,000 rural women entrepreneurs. ITC‘s
supplementary education initiative has reached out to over 200000 school children in rural
areas.

 36. 5. Awareness of the ITC brand name: ITC is one of the best known brands in India.
Markets the product with the use of the brand name ITC. Whenever a new product is
introduced in the market, the brand name ITC is widely used. WEAKNESSES 1. ITC’s original
business is traded in tobacco. ITC stands for India Tobacco Company Limited. It still uses its
old name even though it has forayed into a variety of new businesses. The negative
connection of tobacco with poor health and premature death is always a weak point for the
company. 2. Limited export of products and services: ITC is a local company. It does not have
a large portfolio of exports in either products or services. This makes the company
comparatively weak in terms of being able to leverage global opportunities, talent &
financing. OPPORTUNITIES 1. Untapped rural market: Indian rural market is the most
potential market for branded FMCG products the population and the area of rural market is
higher than the cities. ITC‘s wide distribution network reaching every local rural market will
help to untap the rural demand. In the rural market penetration level of Shampoo is 56%. 2.
ITC’s e-Choupal is a community of practise that links rural Indian Farmers using the Internet.
This project reaches more than 10 million farmers in more than 1, 00,000 villages. ITC benefit
from low cost of procurement of raw materials as well as use e-choupal as a marketing root
for its products. Per capita consumption of personal care products in India is the lowest in
the World, giving an opportunity for ITC’s soaps, shampoos and fragrances under their Wills
brand. THREATS 1. The main threat as is obvious is from competition both domestic as well
as International. The emerging consumer society will bring in new products and services
from competitors. ITC’s opportunities are likely to be the opportunities of others as well.
Therefore dynamics of competition might alter in the medium-term. Then ITC will need to
decide upon whether diversified the most competitive strategic formation for a secure future
is. 2. The heavy taxes and some laws against use on cigarettes and pictorial graphic warnings
in Cigarettes packets might also move away a small percentage of people from such
products.

 37. SECTION II PROBLEM STUDY

 38. INTRODUCTION India today is one of the largest producers of soaps in the world. Today,
the per capita consumption of toilet/ bathing soap in India is 800 gms, where as it is 6.5kgs.
in U.S.A., 4.0 kgs. in China,1.1 kgs.in Brazil and2.5 kgs. in Indonesia. At present, the Indian
Soap Industry is mainly divided into the Premium, Popular and Economy / Sub popular
segments. Soaps form the largest portion of the FMCG (Fast-moving Consumer Goods)
market with bathing and toilet soaps contributing around 30% of the soap market. The FMCG
industry can be divided into organised and unorganised sector. The size of the organised
sector is about Rs.66 billion. The industry has been growing at a CAGR of 4% for the last
three years. It accommodates product lines such as soaps, detergents, skin care, hair care,
oral care, cosmetics, disinfectants, other toiletries and processed packed food products. Price
of the premium segment products is twice that of economy segment products. The economy
+ popular segments cover up about 80% of the entire soap market. The penetration level of
toilet soaps is about 88%.In India, soaps are available in five million retail stores, out of
which, 3.75 million retail stores are in the rural areas. Therefore, availability of these
products is not an issue.70% of India’s population resides in the rural areas; hence around
50% of the soaps are sold in the rural markets. With increase in disposable incomes, growth
 in rural demand is expected to increase because the consumers are moving up towards
premium products. Ever since September 2007, Fiama Di Wills has been providing gentle and
effective care while pampering and keeping you refreshed throughout the day. The Fiama Di
Wills product portfolio, consisting of Soaps, bathing Bars, Shower Gels, Shampoos and
Facewash, has been developed by scientists at the ITC R&D Centre, leveraging the expertise
of International product formulation specialists. Fiama Di Wills products are for modern,
aware customers who are confident of themselves and seek indulgences that make them feel
alive, beautiful and young. There are many national and regional players in the bathing soap
segment. The main player is Pears, having the most of the market share. Then there are
some national level brands like Lux, Dove, Lifebuoy etc. and some local brands that are
regional in nature. There are lot of varieties in brands for the customer to choose.

 39. PROBLEM STATEMENT Kerala is an evolving market for the bathing soap industry and
there is a lot of potential for the major brands. ITC ltd.’s Fiama Di Wills is not yet the market
leader in the bathing soap segment, since there is competition in the form of regional players
and national players. As Kerala is an evolving market, my study was done to find the factors
influencing the purchase decision of consumers with respect to bathing soap. In this study, I
would find the buying pattern, the influence of offers for bathing soap and the reasons for
the consumers to buy a particular brand of bathing soap. RESEARCH OBJECTIVE The aim of
the study is to find the factors influencing the purchase decision of consumers with respect
to bathing soap. Is the offers provided by companies a major push factor in purchasing of
bathing soap is checked upon. The preferences of consumers for bathing soap is also
checked. The data will be analysed to find out the purchase decision of the consumers and
also their perception towards various brands and the offers. RESEARCH DESIGN STATEMENT
OF THE PROBLEM Purchase decision of consumers towards Bathing soap. SCOPE OF THE
STUDY The scope of study extends to all the consumers who purchase FMCG goods on a
regular basis. The consumers selected was from different districts of Kerala especially from
South Kerala, on a random approach.

 40. RESEARCH METHODOLOGY TYPE OF RESEARCH This study is descriptive in nature TYPE
OF DATA Primary data is used for the purpose-data collected from customers. Secondary
data is used to assist the primary data- information regarding the bathing soap industry
SAMPLING DESIGN The sampling method used is convenience non random sampling Sample
unit: all consumers using bathing soap For achieving the research objective, I have collected
opinions of 140 people. DATA COLLECTION METHOD  Through e-mails  Personal interview
INSTRUMENTATION Primary data collection  Questionnaires

 41. LIMITATION  Time was a constraint while collecting data  Respondents were reluctant
to take the survey  I was not able to obtain 100% honest answers  The sample size I took
was less, so I was not able to obtain diverse answers  Bias of the respondents towards the
companies  Convenience sampling could not represent the true population

 42. RESULTS AND ANALYSIS The study explains the buying behaviour and perception of
consumers towards bathing soap. The research is carried out to find out what the consumers
want and what are the factors that they consider when they make a decision of purchasing
bathing soaps. This research is also done to help ITC ltd. to improve the brand Fiama Di Wills
in places wherever necessary. For the purpose of the study the purchase behaviour, attitude,
perception of the consumers towards bathing soap is analysed. Detailed information of
interview, survey analysis and results are explained below. There were total of 140
 respondents who completed the survey. GENDER Out of the 140 respondents 49% were
female and 51% were male. The most number of people who purchase bathing soaps are
male. Males purchase these kinds of products more than females, as they are the ones who
mainly care about which brand of bathing soap suits them the most. 51% 49% GENDER MALE
FEMALE

 43. AGE The respondents were categorized into different age groups for the convenience of
the study. The main motive to classify the respondents into different groups was to classify
them based on the different stages of their life and to interpret the perceptions and
behaviour towards bathing soaps. AGE NO. OF REPSONDENTS Below 20 years 14 21-30 years
94 31-40 years 10 41-50 years 14 Above 51 years 8 Out of the 140 respondents, 10% were
aged between Below 20 years and 41-50 years. 67% of the total respondents were between
age 21 and 30. So, in this survey this age group is the most prominent age group. So their
response will be ones having the most impact, as they are most prominent group in this
survey. 10% 67% 7% 10% 6% AGE GROUP Below 20 years 21 to 30 years 31 to 40 years 41 to
50 years Above 51 years
 44. The following section will present interpreted data from the personal interview and
survey questionnaire. It will further explain summary of findings based on the research
conducted. MONTHLY PURCHASE This analysis helps to find out the monthly purchase of
bathing soaps by consumers. Most of the people use bathing soap on a daily basis, so this
will help to identify how much quantity each consumer use on a monthly basis. INFERENCE:
 61 respondents said that they use 2 SKU’s of bathing soap every month.  38 respondents
purchases just 1 SKU’s of bathing soap monthly.  27 respondents purchases 3 SKU’s
monthly.  14 respondents purchases 4 or more of bathing soap monthly.  Therefore, it’s
clear that most of the people purchase just 2 SKU’s of bathing soap monthly. 38 61 27 14 0
10 20 30 40 50 60 70 1 2 3 4 or more Quantity Quantity

 45. INFLUENCE OF PROMOTIONS/OFFERS The purchase decision may vary according to the
various offers or the promotions done by companies. Thus, it’s important to know whether
these promotions or offers play a part in consumers purchase decision of bathing soaps.
There are chances that the companies may lose its consumers if their competitors provide a
better offer than what they provide. It was surprising that the consumers where so loyal to
their brands that they were not influenced by any of the offers or promotions. 75% of the
respondents said that they are not taken away by any means of promotions or offers in
making purchase decision whereas the rest 25% were driven by the offers or promotions
made by the companies. As bathing soap is in the category of PCP ( Personal Care Products),
it’s difficult to influence the consumers by any means of promotions or offers. Consumers are
more health and skin conscious and they do not tend to try any other product. Thus, they
stick on to a product by a single company. The perception cannot be changed easily as of
other category products. 25% 75% INFLUENCE OF PROMOTIONS/OFFERS YES NO

 46. PROMOTION TECHNIQUE There are various ways by which companies do promotion
activities such as by Cross category promo (example: Buy 2 Vivel soaps and get notebook free
etc.), Loyalty Card Scheme (example: Buy Fiama 100gm and get Recharge of Rs100 Free etc.),
Money Off on purchase and Sample Selection. These types of promotions will play a major
role in the purchase decision of bathing soaps. Consumers prefer their brands to offer them
such promotional schemes so that they get to purchase more with an offer added to it.
INFERENCE  58% of the respondents prefer promotions that provide them with money off
 on purchase  Each 17% of the respondents of the total respondents preferred Sample
Selection and Cross category promo.  The rest 8% of the respondents said loyalty card
scheme is the type of promotion technique that they prefer. 17% 8% 58% 17% PROMOTION
TECHNIQUE Cross category promo Loyalty Card Scheme Money Off on Purchase Sample
Selection

 47. BRAND PREFERENCE One of the major driving force of any category of PCP (Personal
Care Products) are the brand that they prefer. Consumers being the main decision maker,
they are scared to make sudden shifts from one brand to another. Brands are always the
significant factor who decides upon maintaining their consumers to themselves or not. Even
in the segment of bathing soaps there are many major players that are in the industry for a
longer period and also there are few brands which have recently moved into the bathing
soap category in PCP. Fiama Di Wills is a brand which is a recent player in the bathing soap
industry. Some of the major bathing soap are Pears, Dove, Mysore Sandal, Lux, Santoor, Vivel
etc. INFERENCE  The major brand in the bathing soap industry are Pears and Dove, they
were preferred most by the respondents. Almost half of the preference was shared by 2% 6%
28% 24% 1% 12% 4% 1% 4% 18% BRAND OF BATHING SOAP Mysore Sandal Fiama Di Wills
Dove Pears Indulekha Lux Lifebouy Vivel Santoor Others
 48. them. 28% of the respondents said that they preferred Dove and 24% of the respondents
preferred Pears over other brands.  18% of the respondents choose the option “Others”,
which mean that they purchase brands which were not specified in the survey.  12% of the
respondents preferred Lux.  Fiama Di Wills were preferred only by 6% of the respondents. 
Rest of the brands occupied the left space in the survey proportionally. BRAND IMAGE On
the basis of the brand preferred by the consumers, they were asked few more questions
based on why they stick on to their brand. They were asked to rate their brand on the basis
of few characteristics. Firstly, being the most important characteristics is the brand image.
Brand image is what stands out with the competitors. 2% 10% 35% 37% 16% BRAND IMAGE
Poor Fair Good Very Good Excellent

 49. INFERENCE  37% of the respondents rated the image of their brand as very good.  35%
respondents rated as good and only 16% of the respondents said that the brand image of
their brand is excellent.  It’s clear that the brand image is a factor that decides the purchase
decision of the bathing soap. PRICE The next important factor that decides the purchase
decision is the range at which the products are priced. Price of the products is also a factor
that can determine the direction of the consumers to some extent. Products that are priced
at a level which is affordable to the consumers in all classes, have more chances of
preferences. The price of the products plays a major role in the purchase decision of bathing
soap by consumers. INFERENCE 3% 10% 48% 31% 8% PRICE Poor Fair Good Very Good
Excellent

 50.  48% of the respondents said that price of the brands they buy are priced at a good
range  31% of the respondents said that the products they buy are priced at a very good
level.  The rest of the respondents had a mix opinion of the prices provided by their brand.
 Overall, the current prices of the products are acceptable by the consumers. QUALITY
Quality is something that defines the brand and the price for it. Consumers consider the
quality of the product when they make purchase decision. So, it’s important to consider the
quality when making the purchase. INFERENCE  41% of the respondents considers the
 quality when making purchase decision. 2% 6% 22% 41% 29% QUALITY Poor Fair Good Very
Good Excellent

 51.  29% of the respondents said that the quality is a factor that is important but is not
much considered.  Whereas, the 22% of the respondents said it is equivalently
considerable.  Hence, it’s clear that quality is an attribute which plays some role in the
purchase of bathing soap. FRAGRANCE Being in the Personal Care Product category, it is
necessary that the bathing soap should have some pleasant smell. Since, some consumers
preferably look into the factor whether the bathing soap give some decent smell. Therefore,
purchase decision of bathing soap is made also by considering the fragrance which is given
out. INFERENCE  43% of the respondents buys the bathing soap because they feel that their
brand provides very good fragrance. 5% 6% 29% 43% 17% FRAGRANCE Poor Fair Good Very
Good Excellent

 52.  The 29% of the respondents said that the have a neutral approach to the fragrance that
their brand gives.  Therefore, its concluded that the fragrance of bathing soap also plays
some role in the purchase decision. QUANTITY There are consumers who look into the
quantity of the product that they purchase. They want to make sure that they get the
quantity for what they paid for. Purchase decision of bathing soap is determined by also
considering the factor of quantity. INFERENCE  38% of the respondents makes the purchase
decision only if they get enough quantity for the amount they paid. 5% 5% 26% 38% 26%
QUANTITY Poor Fair Good Very Good Excellent

 53.  Each 26% of the respondents said excellent and good. The brands that they purchase
have enough quantity that they require.  The rest 5% and 5% of the respondents were not
satisfied with the quantity provided by their brand.  Therefore, it says that quantity also
plays a reasonable role in influencing the purchase decision of bathing soap.  PRODUCT
KNOWLEDGE Knowledge of a particular brand is a factor by which the purchase decision is
made. There are various methods by which knowledge of a particular product is explained.
Only if the consumers are aware about a product, the purchase will take place. Thus, all the
companies tries to provide maximum information about a product so that it doesn’t make
any confusion in the minds of the consumer. Product knowledge can be explained well with
the help of media and other possible ways. 2% 12% 45% 33% 8% PRODUCT KNOWLEDGE
Poor Fair Good Very Good Excellent

 54. INFERENCE  45% of the respondents said that the product knowledge doesn’t play a
greater role in the purchase decision of bathing soap.  33% said that enough and very good
information is provided by their brand to them.  Rest have mixed opinions and are minority.
AVAILABILITY Other important factor is the ready availability of products to the consumers. If
the bathing soap of a particular brand is not available in the nearby store, the consumers
may or may not shift from one brand to another. It is necessary that the producers must
supply enough stock at the right time. Delay in the store may cause the consumer to shift to
another brand or the product. 3% 25% 15% 45% 12% AVAILABILITY Poor Fair Good Very
Good Excellent

 55. INFERENCE  45% said that availability of products urge them to try new brands  25%
said availability may not urge them to try new brands  This shows that availability does have
a direct impact on the buying behaviour of most of the consumers
 56. PACKAGING This analysis helps to find whether packaging have an impact on the buying
behaviour of consumers. INFERENCE  53% said that packaging urge them to try new brands
 6% said packaging does not urge them to try new brands  This shows that packaging does
have an impact on the buying behaviour of most of the consumers  Packaging can change
the opinion of a consumer about a certain brand and they may try new brands 6% 6% 16%
53% 19% PACKAGING Poor Fair Good Very Good Excellent

 57. ADVERTISEMENTS This analysis helps to find whether advertisement have an impact on
the buying behaviour of consumers. INFERENCE  43% said that advertisement urge them to
try new brands  6% said advertisements does not urge them to try new brands  This shows
that advertisement does have an impact on the buying behaviour of most of the consumers
 Advertisement can change the opinion of a consumer about a certain brand and they may
try new brands 6% 14% 21% 43% 16% ADVERTISEMENTS Poor Fair Good Very Good Excellent

 58. OFFERS Since Offers are the driving factor, it is important to analyse the extent of the
offers offered by different companies to its consumers. The consumers tend to have a flexible
mentality to products with offers. INFERENCE  Almost 91% of the consumers are driven by
the offers provided by the companies to them.  Purchase decision is mainly based on the
offers and promotions schemes.  Consumers tend to purchase more when there is offers. 
Therefore, offers play a significant role in the purchase decision of bathing soaps. 9% 14%
23% 31% 23% OFFERS Poor Fair Good Very Good Excellent

 59. FINDINGS • The consumers of age group 21-30 years purchases more bathing soap than
other age groups. • Most of the time they go for brand having higher quality and those
brands with good brand name. • The respondents considered that the price of the products
were acceptable and reasonable unlike other personal care products. • Most consumers in
the survey use Dove, second come Pears and then other brands that were not mentioned in
the survey questions. • Most consumers buy bathing soap on a monthly basis, there is
regular usage pattern of the bathing soap. • Consumers buy mostly from 2SKU’s every
month. • Most of the consumers ask or select a particular brand of bathing soap. • 88% of
the customers who use bathing soap ask for the brand they regularly buy. • 45% of the
consumers prefer foamy type bathing soap over other types. • The 75% of the respondents
said that offers provided by the companies have not influenced their purchase decision. •
The respondents were aged mostly between 21-30 years. • 43% of the respondents said that
advertisements urge them to try new brands. • The rest said that advertisements does not
impact much in their buying decision i.e. they will stick to their brand even if they see an
advertisement of a new brand. • Health benefit, quality and quantity are the main reason
consumers consider before buying bathing soap. • This means that most of the consumers
are scared to change their brand that they have being using. • Quality, price and brand name
plays an important role in the purchasing decision of bathing soap.
 60. • 100% of the bathing soap consumers prefer quality of the product and brand name
over price of the product. • This shows that those who buy bathing soap, buy it due to
quality and brand image, not due to price. • Packaging and consumer offers doesn’t have
much impact in the mind of the consumer when purchasing bathing soap. • 75% of the
consumers agree to the fact that they use bathing soap just because they were either loyal
to a particular brand or by the influence of ads of some brands. • 88% of the consumers look
for bathing soap brands that have good and attractive packaging. • 48% of the respondents
said that price of the brands they buy are priced at a good range. • 41% of the respondents
 considers the quality when making purchase decision. • 85% of the consumers agree that
they stick to the same brand they are using, so it is likely for those consumers to rebuy the
same brand. • 62% of the consumers are satisfied with the brand of bathing soap they are
using, 16% remains neutral. • 63% of the consumers disagree to the fact that they change
brand if there is a price rise for the existing brand. • This shows the brand loyalty of the
consumers and also shows that price rise does not have much impact for those consumers. •
63% of the consumers agree that they will stick to their existing brand even if there is a price
rise, this also shows the brand loyalty. • 71% of the consumers disagree to the fact that they
always prefer lower priced brand. • This shows that price doesn't have much impact in the
purchasing decision on those consumers. • 60% of the consumers will suggest the brand
they are using to others, 30% may suggest the brand and 10% does not suggest their current
brand they are using.

 61. CONCLUSION • From the study the various aspects of the consumers buying behaviour
were found out • Many reasons for consumers choosing bathing soap was found out and the
purchasing pattern of the consumers were also find out. • Brand loyalty of the consumers
were also checked in the survey. • The survey shows that Fiama Di Wills should try and
achieve a position in the minds of consumers of bathing soap. • The main reason for not
using Fiama Di Wills is due to consumers are not ready to shift from their current brand. •
Then the next reason is the shopkeepers, the shopkeepers sometimes give those brands
which have higher margin, to the consumers who doesn’t have much preference for a
particular brand. • But still Fiama Di Wills has certain value in the mind of the people and
that need to be maintained. • Some more push can be done in the market to get more
market share.

 62. SECTION III ROUTINE WORK

 63. DAILY ROUTINE The Big Day Sales was from 23rd January, 2016 to 26th January, 2016
wherein I was assigned to do the sell-out directly to consumers by persuading them to make
a purchase of ITC’s PCP(Personal Care Products). I worked in both the Big Bazaars’ at
Trivandrum, Kerala i.e., Ravi's Arcade, Near Over Bridge, M.G. Road, Pazhavangadi,
Thiruvananthapuram, Kerala and Big Bazaar, Kalpana Heights, Pattom Junction, Near Old
Kalpana Theatre, Kesavadasapuram, Thiruvananthapuram, Kerala. I promoted the products
under the category of Soaps, Deodorants and Cologne. Under the Soap category I promoted
the Gel Bar under the Brand Name “Fiama Di Wills” and in the deodorants and cologne
category the Brand name was “Engage”. 21st January, 2016 This was the first day of me
working as a promoter during my internship period. Since I didn’t have any prior experience,
I was really excited about the job and more over confused about how I should go about it.
The first location was the Big Bazaar at Kesavadasapuram, Thiruvananthapuram, Kerala.
Since, we were asked to visit all the major accounts in Thiruvananthapuram on 19th of
January where I analysed how the store is arranged and how much does ITC’s products have
a share in the respective shelfs, thus it was easy for me to handle the consumers queries. I
was asked to sell out the products under the Category Soaps i.e., Fiama Di Wills Gel Bar
which had an offer of “Buy 3 and Get 1 Free”, which was priced at Rs.180. The products were
kept in a floor stacked format with the competitor Dove and Pears. We had a lesser stock and
the arrangement itself showcased our product as a less quality one comparing with our
competitor. I didn’t find our design appealing or attractive and I wanted to change the floor
stacking way to some more catchy one but I didn’t because I thought the arrangements had
some inner meaning. On 21st , I could make a sale of 6 SKU’s within one hour, which I felt
 proud because the promoter of ITC said that the maximum units of Gel Bar sold on a day was
just 5 SKU’s.

 64. 22nd January, 2016 The first thing I did was, I went and asked the floor manager whether
I can change the arrangements of my Gel Bar. He gave me permission to do anything to
increase sales. So, this is what I did. The main purpose of me doing this was to attract
consumers to our product and above that to bring a feeling that our product is equal to the
products of the competitors like Pears and Dove as the picture below shows. Once I had
done that I started off my sales and I could sell 16 SKU’s that day. It was actually difficult to
sell the Fiama Gel Bar to the consumers because more than half of the footfalls were either
not aware of the product or they were not willing to make a purchase decision on our
product over Pears.

 65. 23rd January, 2016 On this day , when we made a sale of 36 SKU’s whereas Pears could
only sell 9 SKU’s and that was really a proud moment for me as a promoter. The main factor
that boosted the sales was a different method that I did. I carried 2 SKU’s of all the variants
of the Fiama Di Wills Gel Bar and went directly to the consumer so that they get aware of our
product and the offer that we are providing. Many consumers had a mind in purchasing
soaps so I could take the advantage of that and persuade them in making the decision. I
approached the consumers by greeting them and slowly introducing them to our product.
STEPS : Steps that I undertook in persuading consumers were:  Greeting the consumer. 
Introducing them to the offer and our product.  Telling them the uses and the advantages
over other products.  Enquiring about their previous purchases in the soap category. 
Taking feedback if ever they have used Fiama Di Wills Gel Bar.  Finally, making them to
purchase the product. 24th January, 2016 This was the last day at the Big Bazaar in
Kesavadasapuram, Thiruvananthapuram, Kerala. The customer walking’s were comparatively
lesser than that of the previous day which directly affected the sales volume. I was able to
sell only 20 SKU’s during this day. I also did some sales with the deodorants, which is the
Engage Deodorants’ and the Engage Cologne brands wherein I sold 53 SKU’s in total.

 66. MAIN PROBLEMS OF FIAMA DI WILLS : The below mentioned are some of the problems
that I felt as the reason that consumers were reluctant to purchase the same.  As many as
80% of the consumers are not aware of the Gel Bar.  Consumers are not ready to change
from Brands like Pears and Dove.  Insecurity in switching to different brands.  Consumers
are not aware of how to use the Gel Bar.  Risk factor is common in consumers mind.
FEEDBACKS OF FIAMA DI WILLS : There were many common feedbacks, but among them
there were some feedbacks which I felt important and to be noted.  Consumer 1 : “I use
Fiama Di Wills gel bar and I like the product, but the only defect is t that it gets over soon." 
Consumer 2 : “I use only soaps that have TFM(Total Fatty Matter) content, and its neither
found in your products nor mentioned in the package.” The common feedback that I
received from the consumers of Fiami Di Wills Gel bar was that that the product is a quality
one and they still continue using it. 25th January, 2016 I was asked to work at the Big Bazaar
in Ravi’s Arcade, M.G. Road, Pazhavangadi, Thiruvananthapuram, Kerala for the last two days
of the Big Day. Over there I did the sell-out activities and promotion of the Engage
deodorants and the Engage cologne categorizes. The main advantage in this Big Bazaar was
that it was located in the center of the city and it had a pulling of consumers into the store by
its own compared to the one at Kesavadasapuram. There were consumers of all age groups
and mainly consumers who came for purchase was in the age group of 30-40 years. Thus,
they were more interested in the personal care and the clothing
 67. sections. I was able to make them purchase our deodorants and cologne spray. On this
day, I couldn’t find much traffic as I heard about the store. As I did my selling back there with
the basket, I tried following the same here too. I carried 2 SKU’s of all the variants in the
deodorant and cologne spray category but there weren’t much a demand. I could only
convert a few consumers to make the purchase decision using the basket sales. The Basket
Sales was an effective method wherein I could actually go to the consumers directly and tap
their need and convert that into a purchase. But since on 25th there weren’t much rush in
the store there was less sales that happened during this day. I made a sale of 58
 68. SKU’s of Engage Deodorants and 9 SKU’s of Cologne spray which makes a total of just 67
SKU’s. 26th January, 2016 The BIG DAY had finally come and it was sure that all the
promoters of various companies would definitely try to boost the sales so it made me feel
little nervous at the beginning and that was when I couldn’t do well. I was struggling for sales
to happen but once I got a motivation and I calmed down myself I started picking up slowly
with the sell-out. I tried the basket sales in for few hours and the traffic increased I decided
to stay near the shelf and concentrate on maximum sales. At the end, I could sell 112
deodorants and 4 cologne’s which resulted in the whole sale of products in Cologne spray.
STEPS : Steps that I undertook in persuading consumers were:  Greeting the consumer. 
Introducing them to the offer and our product.  Making them smell our different variants 
Telling them the uses and the advantages over other products.  Taking feedback if they have
either used Engage deodorants or cologne spray before.  Finally, making them to purchase
the product. FEEDBACKS OF ENGAGE :
 69. As there are both the sides, consumers had different opinions but mainly the feedbacks
of consumers who have been using the Engage had a very good opinion. Basically, people
were ready to buy any of the company’s product in deodorants and Cologne because their
preferences was with better fragrance and the lasting smell products. People didn’t show
much brand loyalty in this category products. The Big Day offers was one of the reason that
consumer’s decided in purchasing Engage over others.  Consumer 1 : “I use engage and it is
has a lasting fragrance.”  Consumer 2 : “Sorry. I don’t want to try another company’s
product. I prefer AXE.”  Consumer 3 : “Nivea’s product has 48hrs lasting whereas your
product would last only for 24hrs.”

 70. SALES DATA DURING BIG DAYS The data below shows the Sales made by me from 21st
January, 2016 to 26th January, 2016, the number of consumers met during a day and the
conversions made within them. DAYS SALES NO. OF CONSUMERS MET CONVERSIONS
21.1.2016 6 15 6 22.1.2016 16 27 16 23.1.2016 36 65 36 24.1.2016 47 75 47 25.1.2016 67 30
15 26.1.2016 116 78 33 21.1.2016 2% 22.1.2016 6% 23.1.2016 13% 24.1.2016 16% 25.1.2016
23% 26.1.2016 40% SALES

 71. PRODUCT PROMOTER A promoter is a pleasant and competitive person that thrives in
attracting new customers. Promoter must play a fundamental role in achieving a company’s
ambitious customer acquisition and revenue growth objectives. He/she must be comfortable
making dozens of product/services presentations, generating interest and qualifying sales
prospects. ROLE OF A PROMOTER :  Demonstrate and provide information on promoted
products/services  Create a positive image and lead consumers to use it  Use lectures,
films, charts, and/or slide shows  Distribute product samples, brochures, flyers etc. to
source new sales opportunities  Identify interest and understand customer needs and
requirements  Set up booths or promotional stands and stock products  Report on
 demonstration related information (interest level, questions asked, number of samples/flyers
distributed etc.) ROLE OF A PROMOTER (MY VIEW) : The sales of a product depends mainly
on the promoter. Few things that I felt is a must are :  Being impressive in every action that
a promoter makes even if it’s just wishing the customer  Entertain them with your words
and make sure they actually develop an interest in purchasing from you  Make sure you
have samples of the products you are selling because 20% of the customers purchases
products only by feeling the product personally  Try not to compel customers who have a
specific loyalty to a particular brand  Keep good relation with fellow promoters and the
floor  Respect customers by giving them their time in the store

 72. RECOMMENDATIONS WITH A PROMOTER : The sales of a product can be increased only
by increasing the efficiency of a promoter. Few things that I feel could help the promoter in
increasing the efficiency is :  Greeting the consumer is an important factor to be noted 
Increase presentation skills by providing proper training  Appropriate motivation must be
provided whenever required  Promotion techniques must be changed frequently  If the
consumer has a willingness to the product, then the promoter must just wait for him/her to
take the decision  Never compel any customers to your product  Try to obtain maximum
feedbacks from customers so that you know where to improve  Make sure you have
samples of the products you are selling because 20% of the customers purchases products
only by feeling the product personally  Keep good relation with fellow promoters and the
floor which would directly make a healthy working environment WITHOUT A PROMOTER :
Sales can happen even without promoters. The way products are arranged are one among
the important factor to be noted. Arrangements of products either in the shelf or by using
various methods are all a factor contributing to the end result. Thus, the promoter must
ensure that their products should attract customers without their presence. Few things I feel
would help in the increase of sales are :  Ensure we are placed equal to that of the
competitors in the shelf  The packaging of products is another factor which attracts
customers, so it is necessary that we have an attractive package  80% of the customers buy
products which have offers and the rest 20% are the loyal customers to a specific brand. So,
ensure that we have an attractive offer compared to competitor.

 73. PROJECT LIMITATIONS The Limitations that I faced throughout my project was :  Time
was a major limiting factor.  Bias of the consumers towards the companies.  There were no
testers provided for the products.  Influence of brand name to the consumers for PCP were
comparatively less.  Advertisements have not helped in gathering consumers to the
company’s product  The design of floor stacking and other shelf stacking methods was not
effectively done.  Consumers are still not aware of the options they have in the market. 
Few consumers do not tend to listen to the promoter.  Many consumers preferred sealed
product than those open ones. They considered the open one’s as already used.

 74. TAKE AWAYS  During my Internship period at ITC Limited, I could build myself as a
professional and also I could learn the various categories of products and also about the
companies that provide these. I got an understanding about how the WDC’s (Wholesale
Distribution Centre) functions and what are their major roles.  The WDC is again divided
into two i.e., the GT(Grocery Trade) takes care of the Groceries and other small retail outlets
whereas the MT(Modern Trade) looks into the main accounts such as the Local Accounts,
Regional Accounts and the National Accounts. All these accounts have just a single point of
negotiations.  The salesman goes directly and take orders only from the retailers and from
 the Regional and Local accounts whereas the National accounts has an automated generated
PO(Purchase Order).  The orders of the National accounts will be generated automatically if
the quantity drops below the MBQ(Minimum Basic Quantity). The MBQ is set on the basis of
the following factors :  The shelf size  Sales in the accounts for that product  Depth and, 
Lead time between two supplies  The exposure that I received by doing the direct sell-out
activities has helped me to understand how the consumers think about a product and what
are they expecting from the existing products.  Understanding the customers preferences
and learning their switching habits has helped me to analyse and take action accordingly. 
Moreover, the work environment were totally different ones and I was able to tackle that
and was able to keep a rapo between my fellow promoters.

 75. BIBLIOGRAPHY  ITC reports and accounts 2015  Emerging challenges and prospects of
fmcg product development in India by G. Nagarajan & Dr J. KHAJA SHERIFF  Indian fmcg
sector by PwC  http://economictimes.indiatimes.com/itc-
ltd/infocompanyhistory/companyid- 13554.cms  http://business.mapsofindia.com/top-
brands-india/top-soap-brands-in-india.html  http://www.fiamadiwills.com/about-us.aspx 
https://www.scribd.com/doc/60786013/Present-Scenario-of-Indian-Soap-Industry 
http://www.ibef.org/industry/fmcg-presentation 
http://www.nielsen.com/in/en/insights/reports/2014/understanding-indias-fmcg-
shopper.html 
http://www.cii.in/Sectors.aspx?enc=prvePUj2bdMtgTmvPwvisYH+5EnGjyGXO9hL
ECvTuNvwUH5MWzEuAiG8dfH+/Z7F  http://www.itcportal.com/

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