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1
STUDY OF RETAILERS PREFERENCE TOWARDS
ITC CANDYMAN AND CANDICO CANDIES
SUBMITTED TO:
PUNJAB TECHNICAL UNIVERSITY, JALANDHAR
IN PARTIAL FULFILMENT OF THE
REQUIREMENT FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
BATCH (2007-2009)
GUIDE: SUBMITTED BY:
Mr. Girish Nima SHAH FAISAL
ENROLEMENT No. 7116223117
RIMT-Institute of Management & Computer Technology, Mandi
Gobindgarh
INDEXContents Page no.
Certificate
Acknowledgement 5
Preface 6
Declaration 7
Chapter I:-
ITC Candyman Profile 9-12
Candico Profile 13-15
Chapter II:-
Objective of the study 17
Scope of the study 18
Research Methodology 19-20
Limitations of the study 21
Chapter III:-
Data Analysis & Interpretation 22-45
Chapter IV:-
Findings 47
Swot Analysis 48-50
Suggestions 51
Conclusions 52
Chapter V:-
Annexure 53
Chapter VI:-
Bibliography 59
LIST OF TABLESTABLE
NUMBER
TITLE PAGE
NUMBER1 Sale Of The Candies 232 Brand Preferences 243 Purchase Of ITC Candyman Candies 254 Purchase Of Candico Candies 265 Overall Purchase Of Candies 276 Preference Of Sub-brands Of ITC Candyman Candies 287 Preference Of Sub-brands Of Candico Candies 298 Influencing Factors During Purchase Of Candies 309 Influencing Factors During Purchase Of ITC Candyman
Candies
31
10 Influencing Factors During Purchase Of Candico Candies 3211 Factors Giving More Satisfaction To The Retailers 3312 Factors Giving More Satisfaction To The Retailers in ITC
Candyman Candies
34
13 Factors Giving More Satisfaction To The Retailers In Candico
Candies
35
14 Form Preferences 3615 Pack Of Candies Preferred 3716 Promotional Offers 3817 Factors Affecting Purchase 3920 Media Of Advertisement 4021 Frequency Of Consumption 4122 Reasonable Price 42
23 Consumer’s Brand Loyalty 4324 Reaction Of Customers If New Brand Is Introduced 44
LIST OF GRAPHS
GRAPH
NUMBER
TITLE PAGE
NUMBER1 Liking For The Chocolate 232 Brand Preference 243 Purchase Of ITC Candyman Candies 254 Purchase Of Candico Candies 26
2
5 Overall Purchase Of Candies 276 Form Preferences 367 Pack Of Candies Preferred 378 Promotional Offers 389 Factors Affecting Purchase 3910 Media Of Advertisement 4011 Frequency Of Consumption 4112 Reasonable Price 4213 Retailer’s Brand Loyalty 4314 Reaction Of Retailers If New Brand Is Introduced 44
ACKNOWLEDGEMENT
First of all I would like to thank the Management at ITC ltd. for giving me the
opportunity to do my one and half-month project training in their esteemed organization.
I am highly obliged to my project guide Mr. Girish Nima for granting me to
undertake my training at Saharanpur branch.
I express my thanks to all Staff of the branch under whose able guidance and direction, I
was able to give shape to my training. Their constant review and excellent suggestions
throughout the project are highly commendable.
My heartfelt thanks go to all the executives who helped me gain knowledge about the
actual working and the processes involved in various departments. I have no words to
express my feeling of deep gratitude, which I owe to Mrs. Dalbir kaur (faculty
member), who extended me assistance, support and council without, which this project
would not have been materialized
3
GUIDE:
Mrs. Dalbir Kaur Shah Faisal
PREFACE
I am lucky that, I got an opportunity for making the project report on “ITC
CANDYMAN.” I visited the various concerns for two months and I prepare my project
report on the topic “STUDY OF RETAILERS PREFERENCE TOWARDS ITC
CANDYMAN AND CANDICO CANDIES.” and the study is divided into various
chapters to get knowledge. I also considered some published material on the particular
topic as well as about the concern. This helps me in boosting up my confidence and
determination which will help me to face the situation in coming years. This report is
written account of what I learnt and experienced during my survey. I wish, those going
through it will not only find it readable but also get as useful Information. The main
limitation of my experience was that I did not get the full and correct Information from
the market, as many of the respondents did not answer to my questionnaire correctly and
completely.
4
DECLARATION
Hereby declare that the project report entitled “STUDY OF RETAILERS PREFERENCE
TOWARDS ITC CANDYMAN AND CANDICO CANDIES.” submitted for the degree
of Master of Business Administration, is my original work and the project report has not
formed the basis for the award of any diploma, degree, associate ship, fellowship or
similar other titles. It has not been submitted to any other university or institution for the
award of any degree or diploma.
Place:
Date: Shah Faisal
MBA-III Sem
5
CHAPTER-I
INTRODUCTION
6
ITC PROFILE
ITC is one of India's foremost private sector companies with a market capitalization of
nearly US $ 18 billion and a turnover of over US $ 5.1 Billion. ITC is rated among the
World's Best Big Companies, Asia's 'Feb. 50' and the World's Most Reputable
Companies by Forbes magazine, among India's Most Respected Companies by Business
World and among India's Most Valuable Companies by Business Today. ITC also ranks
among India's top 10 `Most Valuable (Company) Brands', in a study conducted by Brand
Finance and published by the Economic Times.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.
While ITC is an outstanding market leader in its traditional businesses of Cigarettes,
Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even
in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal
Care and Stationery.
As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a
commitment beyond the market". In his own words: "ITC believes that its aspiration to
create enduring value for the nation provides the motive force to sustain growing
shareholder value. ITC practices this philosophy by not only driving each of its
businesses towards international competitiveness but by also consciously contributing to
enhancing the competitiveness of the larger value chain of which it is a part."
ITC's diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched distribution
reach, superior brand-building capabilities, effective supply chain management and
acknowledged service skills in hotelier. Over time, the strategic forays into new
7
businesses are expected to garner a significant share of these emerging high-growth
markets in India.
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.
This transformational strategy, which has already become the subject matter of a case
study at Harvard Business School, is expected to progressively create for ITC a huge
rural distribution infrastructure, significantly enhancing the Company's marketing reach.
ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is
aggressively pursuing emerging opportunities in providing end-to-end IT solutions,
including e-enabled services and business process outsourcing.
ITC's production facilities and hotels have won numerous national and international
awards for quality, productivity, safety and environment management systems. ITC was
the first company in India to voluntarily seek a corporate governance rating.
ITC employs over 24,000 people at more than 60 locations across India. The Company
continuously endeavors to enhance its wealth generating capabilities in a globalizing
environment to consistently reward more than 3,83,000 shareholders, fulfill the
aspirations of its stakeholders and meet societal expectations. This over-arching vision of
the company is expressively captured in its corporate positioning statement: "Enduring
Value. For the nation. For the Shareholder."
ITC currently has two brands in the confectionery segment –‘Mint-o’ and ‘Candyman’.
‘Mint-o’ was acquired by ITC from Candico in March 2002. ITC re-launched the
compressed mint offering, across all major markets in India, with new and improved
8
product and packaging. Available in the regular mint flavor with added blue specks to
enhance consumer experience, mint-o is also offered in innovative ‘Orange-mint’ and
‘Lemon-mint’ flavours. Mint-o Cool blue - a single mint in a pillow-pack was launched
In November 2007. ’Mint-o’ is available in 3 sizes – rolls of 20 and 6 and singles,
capturing the international essence of ‘youthful cool’.
ITC launched ‘Mint-o Fresh’ in October 2004. An ‘active’ mint deposited candy, mint-o
Fresh is available in two refreshing mint flavours – mint-o Fresh eucalyptus and mint-o
Fresh Cool Green. Its launch extended the footprint of the ‘mint-o’ brand in line with the
strategy of adding excitement and contributing to the growth of the confectionery
category. ‘Mint-o Fresh’ is especially targeted at the adult consumer creating a basket of
mint-based products across price points.
ITC launched the ‘Candyman’ range of confectioneries in August 2002. Led by the
‘Candyman Fruitee Fun’ range of assorted fruit flavours ( ‘Wild banana’, ‘Pineapple
Punch’, ‘Orange Josh’ and ‘Mango Delite’), the ‘Candyman’ portfolio now includes
deposited candy products like ‘Candyman Butterscotch Licks’ and ‘Candyman Eclairs’
(Choco flavoured as well as Vanilla Cream centre inside a Butterscotch outer shell). The
coffee toffee segment also saw the successful launch of ‘Candyman cofitino’ in
November 2005. The brand was further strengthened with the launch of ‘Candyman
Natkhat Mango’ and ‘Candyman Maha Mango’. In line with the strategy to provide
innovative flavours to the consumers, Candyman Mango Licks was launched in June
2007 and Candyman Natkhat Gowawa in October 2007. The ‘Candyman’ range of
confectionary is targeted at ‘fun-filled, naughty kids’ who seek a delightful candy
experience through a range of candy types and flavours.
9
STRATEGIES OF ITC
ITC is a board-managed professional company, committed to creating enduring value for
the shareholder and for the nation. It has a rich organizational 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.
ITC’s corporate strategies are:
• Create multiple drivers of growth by developing a portfolio of world class
businesses that best matches organizational 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 organization by nurturing talented and
focused top management teams for each of the businesses.
• Continuously strengthen and refine Corporate Governance processes and systems
to catalyses the entrepreneurial energies of management by striking the golden
balance between executive freedom and the need for effective control and
accountability.
10
CANDICO PROFILE
Candico is a confectionery multinational headquartered out of India with operations in 12
countries.
Candico began operations in the year 1997. By the year 2002 it grew to become the
second largest Indian confectionery company. Candico is one of only two Indian
companies to emerge as a confectionery major after the industry consolidated in the late
90's.
With over 2 billion confectionery products sold every year, Candico has been making
millions of children smile.
Candico's success in a market where every major confectionery player from the world
competes is indicative of its core strengths
INDIAN DISTRIBUTION
With 24 depots, 1500 authorized dealers and a 250 people strong sales force, Candico’s
distribution network in India has a direct or indirect reach in most towns and cities with a
population of over 25,000.
It is estimated that Candico’s brands reach out to over 60 percent of India’s 1000 million
people.
An Advanced Management Information System ensures that the company’s management
has, by 11 a.m. the next day, details of all Candico products sold to every shop by every
salesman in India.
11
INTERNATIONAL DISTRIBUTION
Candico is the only Indian confectionery company with production facilities overseas.
Candico’s international operations gathered speed in October 2003 with its acquisition of
an equity skate in SML, Tanzania.
In May 2004 it entered into a distribution agreement to set up operations in South Africa.
Candico has set up distribution arrangements in several countries across the world
including South Africa, New Zealand, Madagascar and Qatar.
Candico is actively scouting for opportunities to set up similar distribution agreements in
West and North Africa so as to cover the entire African continent.
PRODUCTION
Candico has a "world class manufacturing facility" (ERC, London) in its 'state of the art'
plant at Nagpur, Maharashtra.
Physical layout
The largest of it's kind in the country, the plant is spread over a sprawling 15-acre
campus, complete with lush lawns and a stream that flows right through it. It has a
constructed area of over 350,000 square feet, of which close to 300,000 is fully particle,
humidity and temperature controlled.
12
The plant has a production capacity of 45,000 tonnes, which makes it one of the largest
manufacturing facilities of its kind in India.
Product lines
The Candico manufacturing facility at Nagpur, due to the substantial amount of capital
investment and the superior technology used in the manufacturing process, is the only
plant in the country that is capable of manufacturing the entire range of confectionery
product in each one of the existing categories.
1) Toffees: Centre fill, Non centre fill
2) Candies: Centre fill, Sugar boiled
3) Gums: Bricks, Balls, Sticks
4) Soft chews: Aerated, Non-aerated
5) Compressed powder tablets
13
CHAPTER-II
14
OBJECTIVES OF THE STUDY
This project is based on the comparative study consumer behavior towards ITC
Candyman and Candico. Objectives of the study are:
The other objective is to know about the customer satisfaction level
associated with the product and the customer preference level.
To increase customer satisfaction and recapture the market share by fulfilling
the customer needs.
To study the factors affecting the consumption pattern.
15
SCOPE OF THE STUDY
As learning is a human activity and is as natural, as breathing. Despite of the fact that
learning is all pervasive in our lives, psychologists do not agree on how learning takes
place. How individuals learn is a matter of interest to marketers. They want to teach
retailers in their roles as their roles as consumers. They want retailers to learn about their
products, product attributes, potential consumers benefit, how to use, maintain or even
dispose of the product and new ways of behaving that will satisfy not only the
consumer’s needs, but the marketer’s objectives.
The scope of my study restricts itself to the analysis of retailer preferences, perception
and consumption of ITC Candyman and Candico. There are many other brands of candies
available but my study is limited to two major players of candies leaving behind the
others. The scope of my study is also restricts itself to Saharanpur region only.
16
RESEARCH METHODOLOGY
This chapter describes the methodology of the study. This project is based on information
collected from primary sources. After the detailed study, an attempt has been made to
present comprehensive analysis of consumption of ITC Candyman and Candico candies
consumed by the people. The data had been used to cover various aspects like
consumption, retailer’s preference and retailer’s satisfaction regarding Candyman and
Candico. In collecting requisite data and information regarding the topic selected, I went
to the retailers of Saharanpur and collected the data.
Survey design:
The study is a cross sectional study because the data were collected at a single point of
time. For the purpose of present study a related sample of population was selected on the
basis of convenience.
Sample Size and Design:
A sample of 100 people was taken on the basis of convenience. The actual retailers were
contacted on the basis of random sampling.
Research Period:
Research work is only carried for 2 or 3 weeks.
Research Instrument:
This work is carried out through self-administered questionnaires. The questions included
were open ended, dichotomous and offered multiple choices.
17
Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
Primary Source: The primary data comprises information survey of
“Comparative study of retailer behavior towards ITC Candyman and Candico”.
The data has been collected directly from respondent with the help of structured
questionnaires.
Secondary Source: The secondary data was collected from internet and
references from Library.
Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical techniques.
The technique that I have used is bar graphs.
18
LIMITATIONS OF THE STUDY
In attempt to make this project authentic and reliable, every possible aspect of the topic
was kept in mind. Nevertheless, despite of fact constraints were at play during the
formulation of this project. The main limitations are as follows:
Due to limitation of time only few people were selected for the study. So the
sample of retailers was not enough to generalize the findings of the study.
The main source of data for the study was primary data with the help of self-
administered questionnaires. Hence, the chances of unbiased information are less.
People were hesitant to disclose the true facts.
The chance of biased response can’t be eliminated though all necessary steps were
taken to avoid the same.
19
CHAPTER-IIIDATA ANALYSIS
AND INTERPRETATION
20
ANALYSIS OF THE STUDY
SALE OF THE CANDIES
Table: 1
Sale of the Candies Yes No
Number of Respondents 95 5
95
5
0
20
40
60
80
100
Yes No
Number of Respondents
Chart: 1
From the above analysis of the given sample of 100 respondents it is concluded that out
of 100 people 95 people sell candies while only 5 people don’t sell candies.
21
BRAND PREFERENCETable: 2
BRANDS PREFERENCE BY CONSUMERSITC CANDYMAN 73CANDICO 22
73
22
0
10
20
30
40
50
60
70
80
PREFERENCE BY CONSUMERS
ITC CANDYMAN
CANDICO
Chart: 2
From the above analysis of given sample of 95 respondents who sell candies it is
concluded that only 22 people prefer to sell Candico while 73 people likes to sell ITC
Candyman.
22
PURCHASE OF CANDIES
PURCHASE OF CANDYMAN
Table: 3
ITC CANDYMANSUB- BRANDS NUMBER OF RESPONDANTSECLAIRS 69COFFITINO 64MINT-O-FRESH 61FRUITEE FUN 49NATKHAT MANGO 41
Chart: 3
From the above analysis of given sample of 73 respondents who eat ITC Candyman
candies it is concluded that mostly people has purchased Eclairs sub-brand of ITC
Candyman while Natkhat mango is least purchased by the people.
PURCHASE OF CANDICO
23
PURCHASE OF ITC CANDYMAN
FRUITEE FUN49
MINT-O-FRESH61
COFFITINO64
ECLAIRS69
NATKHAT MANGO41
Table: 4
CANDICO CANDIESSUB- BRANDS NUMBER OF RESPONDANTSECLAIRS 19COFFI TOFFI 18MINT CANDY 15FRUITS CANDY 17GREEN MANGO 11
Chart: 4
From the above analysis of given sample of 22 respondents who eat Candico candies it is
concluded that mostly all sub-brands are purchased by people but top most is Eclairs
followed by Coffi Toffi and Fruits Candy. While surveying we have found that many
people are not aware of Green Mango candy.
OVERALL PURCHASE OF CANDIES
Table: 5
OVERALL PURCHASE OF SUB- BRANDS OF CANDIES
24
PURCHASE OF CANDICO CANDIES
COFFI TOFFI18
MINT CANDY15
FRUITS CANDY17
GREEN MANGO11 ECLAIRS
19
SUB-BRANDS NUMBER OF RESPONDANTSECLAIRS 69COFFITINO 64MINT-O-FRESH 61FRUITEE FUN 49NATKHAT MANGO 41ECLAIRS 19COFFI TOFFI 18FRUITS CANDY 15MINT CANDY 17GREEN MANGO 11
Chart: 5
From the above analysis it is concluded that overall ITC Candyman Eclairs is purchased
by people followed by Coffi Toffi while Mint Candy and Green Mango is least purchased
by people.
PREFERENCE OF SUBRANDS OF CANDIES
PREFERENCE OF SUBRANDS OF ITC CANDYMAN
Table: 6
ITC CANDYMANSUB- BRANDS GRAND TOTAL
OF
AVERAGE
(GRAND TOTAL / No.
RANKS
25
OVERALL PURCHASE OF SUB- BRANDS OF CANDIES NUMBER OF RESPONDANTS
69
64
6149
41
19
18
1517 11
ECLAIRS
COFFITINO
MINT-O-FRESH
FRUITEE FUN
NATKHAT MANGO
ECLAIRS
COFFI TOFFI
FRUITS CANDY
MINT CANDY
GREEN MANGO
PREFERENCE OF RESPONDANTS)ECLAIRS 315 4.3 1COFFITINO 220 3 2MINT-O-FRESH 176 2.4 3FRUITEE FUN 136 1.86 4NATKHAT
MANGO
91 1.24 5
According to the above analysis it is concluded that in ITC Candyman, Eclairs is the most
preferred sub-brand as it is ranked first by the respondents. While Natkhat is the least
preferred sub-brand of ITC Candyman.
PREFERENCE OF SUB-BRANDS OF CANDICO
Table: 7
CANDICO CANDIESSUB- BRANDS GRAND
TOTAL OF
PREFERENCE
AVERAGE
(GRAND TOTAL / No. OF
RESPONDANTS)
RANKS
ECLAIRS 70 3.18 1COFFI TOFFI 64 2.9 3FRUITS CANDY 65 2.95 2MINT CANDY 45 2.05 4
26
GREEN MANGO 30 1.36 5
According to the above analysis it is concluded that in Candico Brand, Eclairs is the most
preferred sub-brand as it is ranked first by the respondents. While Green Mango is the
least preferred sub-brand of Candico candies.
INFLUENCING FACTORS DURING PURCHASE
OVERALL INFLUENCE
Table: 8
FACTORS GRAND TOTAL AVERAGE RANKFLAVOR/TASTE 435 4.58 1PRICE 295 3.1 9QUALITY 391 4.12 2PACKAGING 344 3.62 4FORM 301 3.17 7BRAND 354 3.73 3IMAGE 344 3.62 4COLOR 297 3.13 8SHAPE 268 2.82 10QUANTITY 342 3.6 6
27
According to the above analysis it is concluded that on an average mostly people are
influenced by flavor/taste followed by quality, brand and image. It is surprised to know
that very few people are influenced by price followed by shape of the candies.
INFLUENCING FACTORS DURING PURCHASE OF
ITC CANDYMAN CANDIES
Table: 9
FACTORS GRAND TOTAL AVERAGE RANKFLAVOR/TASTE 335 4.6 1PRICE 235 3.2 7QUALITY 307 4.2 2PACKAGING 277 3.79 3FORM 231 3.16 8BRAND 271 3.71 4IMAGE 262 3.59 5COLOR 224 3.07 9SHAPE 213 2.92 10QUANTITY 262 3.59 5
According to the above analysis it is concluded that on an average mostly people are
influenced by flavor/taste followed by quality, packaging and brand. Here color and
shape are not all influencing people while purchasing ITC Candyman candies.
28
INFLUENCING FACTORS DURING PURCHASE OF
CANDICO CANDIES
Table: 10
FACTORS GRAND TOTAL AVERAGE RANKFLAVOR/TASTE 100 4.5 1PRICE 60 2.72 5QUALITY 84 3.82 2PACKAGING 67 3.04 9FORM 70 3.18 8BRAND 83 3.77 3IMAGE 82 3.73 4COLOR 73 3.32 7SHAPE 55 2.5 10QUANTITY 80 3.64 6
According to the above analysis it is concluded that on an average mostly people are
influenced by flavor/taste followed by quality, brand and image. Here packaging and
shape are not all influencing people while purchasing Candico candies.
29
FACTORS GIVING MOST SATISFACTION TO
RETAILERS
OVERALL
Table: 11
FACTORS GRAND TOTAL AVERAGE RANKFLAVOR/TASTE 427 4.81 1PRICE 337 3.6 4QUALITY 367 3.86 2PACKAGING 338 3.56 5FORM 332 3.49 7BRAND 358 3.77 3IMAGE 328 3.45 9COLOR 332 3.49 7SHAPE 335 3.52 6QUANTITY 328 3.45 9
According to the above analysis it is concluded that on an average people are most
satisfied with the flavor/taste of a candy followed by quality and brand. It is surprising to
know that although people are satisfied with quality but unsatisfied with the quantity.
30
SATISFACTION IN ITC CANDYMAN CANDIES
Table: 12
FACTORS GRAND TOTAL AVERAGE RANKFLAVOR/TASTE 334 4.6 1PRICE 269 3.68 5QUALITY 282 3.86 2PACKAGING 272 3.73 4FORM 264 3.62 6BRAND 282 3.86 2IMAGE 247 3.38 10COLOR 259 3.55 7SHAPE 258 3.53 8QUANTITY 255 3.49 9
According to the above analysis it is concluded that on an average people are most
satisfied with the flavor/taste of a candy followed by quality and brand. It is surprising to
know that although people are satisfied with quality but unsatisfied with the quantity and
image.
SATISFACTION IN CANDICO CANDY
31
Table: 13
FACTORS GRAND TOTAL AVERAGE RANKFLAVOR/TASTE 93 4.2 1PRICE 68 3.09 8QUALITY 85 3.86 2PACKAGING 66 3 10FORM 68 3.09 8BRAND 76 3.45 5IMAGE 81 3.68 3COLOR 73 3.32 6SHAPE 77 3.5 4QUANTITY 73 3.32 6
According to the above analysis it is concluded that on an average people are most
satisfied with the flavor/taste of a candy followed by quality and image. It is surprising to
know that although people are satisfied with quality but unsatisfied with the form and
packaging.
FORM PREFERENCE
Table: 14
FORM OF CANDY NUMBER OF
RESONDENTSHARD 30
32
NUTTIES 21CRUNCHY 26CHEW 18
Form of a Candy Prefered by People
2126
18
30
0
10
20
30
40
1Forms
Nu
mb
er
of
Co
ns
um
ers HARD
NUTTIES
CRUNCHY
CHEW
Chart: 6
According to the above analysis it is concluded that most of the people likes to eat hard
candy and chew form of a candy is least preferred.
PACK OF CANDIES PREFERED
Table: 15
PACK SIZE NUMBER OF RESPONDENTSPOLLY BAG 28JAR 48JUMBO JAR 19
33
Pack of Candy Prefered
28
48
19
0102030405060
1Pack
Nu
mb
er
of
Co
ns
um
ers
POLLY BAG
JAR
JUMBO JAR
Chart: 7
According to the above analysis it is concluded that out of sample of 95 people who sell
candies likes to buy jar, then comes the Polly bags and jumbo jars are least preferred.
PROMOTIONAL OFFERS
Table: 16
PROMOTIONAL OFFERS NUMBER OF RESPONDENTSFREE GIFTS 52PRICE OFFER 23ANY OTHER 20
34
Effect of Promotional Offers while Purchase
52
23 20
0
10
20
30
40
50
60
1Promotional Offers
Nu
mb
er
of
Co
ns
um
ers
FREE GIFTS
PRICE OFFER
ANY OTHER
Chart: 8
According to the above analysis it is concluded that out of sample of 95 people who sell
candy 52 are attracted by free gifts, 23 by price offers while 20 were attracted by some
other reasons.
FACTORS AFFECTING PURCHASE
Table: 17
FACTORS NUMBER OF
RESPONDENTSADVERTISEMENT 67SUGGESTION FROM CUSTOMERS 17ATTRACTIVE DISPLAY 12SALESMAN ADVICE 14BRAND AMBASSADORS 10INGREDIENTS 28
35
Factors Affecting Purchase
67
17 12 14 10
28
0
20
40
60
80
1Factors
Nu
mb
er
of
Co
ns
um
ers
ADVERTISEMENT
SUGGESTIONFROMCUSTOMERS
ATTRACTIVEDISPLAY
SALESMANADVICE
BRANDAMBASSDORS
INGREDIENTS
Chart: 9
According to the above analysis it is concluded that Advertisement is the best measure to
attract retailers to purchase more. Its impact is much more than other factors. While
customers and brand ambassadors also play a significant role in this regard.
MEDIA OF ADVERTISEMENT
Table: 18
MEDIA OF ADVERTISEMENT NUMBER OF RESPONDENTSTELEVISION 75NEWSPAPERS 10BROCHURES 5HOARDING 8DISPLAY 25
36
Media of Advertisement influencing the Purchase
75
10 5 825
0
20
40
60
80
1Media Of Advertising
Nu
mb
er o
f C
ust
om
ers
Television
Newspapers
Brochers
Hoarding
Display
Chart: 10
According to the above analysis it is concluded that television emerges as the best media
for advertisement of candies that compel consumers to buy. It is much more than other
ways as out of 95 respondents 82 are attracted to by through television media while
brochures are the least attracting media.
FREQUENCY OF CONSUMPTION
Table: 19
FREQUENCY OF CONSUMPTION NUMBER OF RESPONDENTSONCE IN A FORTNIGHT 16DAILY 17WEEKLY 39MONTHLY 18QUARTERLY 5
37
Frequency of Consumption
16 17
39
18
5
0
10
20
30
40
50
1 Frequency
Nu
mb
er
of
Re
taile
rsOnce in afortnightDaily
Weekly
Monthly
Quarterly
Chart: 11
According to the above analysis it is concluded that mostly retailers purchase candies
weekly. Only 15 out of 95 purchase candies quarterly.
REASONABLE PRICE
Table: 20
PRICE OF CANDY NUMBER OF RESPONDENTSBELOW 25paise 625paise-50paise 2350paise-Rs1 51Rs1-Rs2 4ABOVE Rs2 11
38
Reasonable Price
6
23
51
411
0
20
40
60
1 Price
Nu
mb
er
of
Re
taile
rs
Below 25 paise
25paise-50 paise
50paise-Rs1
Rs1-Rs2
Above Rs2
Chart: 12
According to the above analysis it is concluded that the retailers thinks 50paise-Rs1 is the
reasonable price of a candy. So it must be worthwhile to know this as it may effect the
sale of candies.
CONSUMER’S BRAND LOYALTY
Table: 21
BRAND LOYALTY ACTIONS NUMBER OF RESPONDENTSPOSTPONE YOUR PURCHASE 26SWITCH OVER TO OTHER BRANDS 24GO TO OTHER SHOP FOR SEARCH
OF PREFERED BRAND
45
39
Brand Loyalty
26 24
45
01020304050
1Action of Retailers in absence of Prefered Brand
Nu
mb
er
of
Re
tail
ers
Postpone Purchase
Switch Brand
Search in other Shop
Chart: 13
According to the above analysis it is concluded that mostly people are loyal to the brand
as in the absence of availability of their preferred brand mostly people like to search for it
or they are ready to postpone their purchase.
REACTION OF RETAILERS IF NEW BRAND IS
INTRODUCED
Table: 22
SHIFT TO NEW BRAND OF THE
PREFERED PRODUCT
NUMBER OF RESPONDENTS
NO, NOT AT ALL 35MAY CONSIDER 27
40
NO, SHALL NOT 4CAN’T SAY 29
Reaction of retailers if new brand is introduced
35
27
4
29
0
10
20
30
40
1 Reactions
Nu
mb
er o
f R
etai
lers
No, Not at all
May Consider
Shall Not
Can't Say
Chart: 14
According to the above analysis it is concluded that mostly people are addicted to the
same flavor or taste and they don’t want to change it as out of 95 respondents 35 are not
ready to try new brand at any cost.
REASONS FOR NOT SWITCHING OVER TO OTHER
BRANDS
All the retailers why they continue to buy the old brand gave various important reasons.
The most important reasons given by the retailers were:
Taste/Flavor
Brand
Image
Quality
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Packaging
42
CHAPTER-IV
FINDINGS
RETAILER RESEARCH:
Retailer research deals with retailer and their
problems and solution to the problems. In this I came to know about the retailers
need and expectation levels regarding products and ascertainable levels of
satisfaction.
43
PRODUCT RESEARCH:
Under product research I came to know about the
modification which retailers wants as to the quality, packing, shape, color, and
quantity etc of their favorite candy.
PRICING RESEARCH:
This includes ability to consume, to pay for the product,
how much a person can spend on his/her favorite candy. In this I have tried to find out
retailer’s price expectations and reactions.
ADVERTISING RESEARCH:
Under this I have concluded that whether the
advertisement appeals the retailers or not. This also includes evaluating and
selecting the proper media-mix and measuring advertising effectiveness.
SWOT ANALYSIS
STRENGTHS:
1.ITC is one of India's foremost private sector companies.
2.ITC leveraged it traditional businesses to develop new brands for new segments. . For
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example, ITC used its experience of transporting and distributing tobacco products to
remote and distant parts of India to the advantage of its FMCG products. ITC master
chefs from its hotel chain are often asked to develop new food concepts for its FMCG
business.
3.ITC ranks among India's top 10 Most Valuable (Company) Brands.
4.It has market capitalization of nearly US $ 18 billion.
5.ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.
6. ITC's Agri-Business is one of India's largest exporters of agricultural products.
7. ITC is a diversified company trading in a number of business sectors including
cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel,
personal care, greetings cards, Information Technology, safety matches, incense sticks
and stationery.
WEAKNESSES:
1.The company's original business was traded in tobacco. ITC stands for Imperial
Tobacco Company of India Limited. It is interesting that a business that is now so
involved in branding continues to use its original name, despite the negative connection
of tobacco with poor health and premature death.
2.To fund its cash guzzling FMCG start-up, the company is still dependant upon its
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tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that
in itself is responsible for 80% of its profits. So there is an argument that ITC's move into
FMCG (Fast Moving Consumer Goods) is being subsidized by its tobacco operations. Its
Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand
alone holds 70% of the tobacco market.
OPPORTUNITIES:
1.Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be
developed using strategies of market development, product development and marketing
penetration.
2.ITC is moving into new and emerging sectors including Information Technology,
supporting business solutions.
3.E-Choupal is a community of practice that links rural Indian farmers using the Internet.
This is an original and well thought of initiative that could be used in other sectors in
many other parts of the world. It is also an ambitious project that has a goal of reaching
10 million farmers in 100,000 villages. Take a look at e-Choupal here
http://www.itcportal.com/agri_exports/e-choupal_new.htm
ITC leverages e-Choupal in a novel way.
4.The company researched the tastes of consumers in the North, West and East of India
of atta (a popular type of wheat flour), then used the network to source and create the raw
materials from farmers and then blend them for consumers under purposeful brand names
such as Aashirvaad Select in the Northern market, Aashirvaad MP Chakki in the Western
market and Aashirvaad in the Eastern market. This concept is tremendously difficult for
competitors to emulate.
5.Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate into the
country's premier FMCG business. Per capita consumption of personal care products in
India is the lowest in the world offering an opportunity for ITC's soaps, shampoos and
46
fragrances under their Wills brand.
THREATS:
1.The obvious threat is from competition, both domestic and international.
2.ITC's opportunities are likely to be opportunities for other companies as well. Therefore
the dynamic of competition will alter in the medium-term. Then ITC will need to decide
whether being a diversified conglomerate is the most competitive strategic formation for
a secure future.
3.The laws of economics dictate that if competitors see that there is a solid profit to be
made in an emerging consumer society that ultimately new products and services will be
made available. Western companies will see India as an exciting opportunity for
themselves to find new market segments for their own offerings.
4.Duplicate items are available in abundance at much lesser rates. This affects the
company financially and adversely affects its goodwill.
SUGGESTIONS
AND
RECOMMENDATIONS
47
Company should concentrate more on television for advertisement, as mostly
people get attracted through television only.
For promotional offers, company should go for free gifts rather than going for
other ways.
Candico company should concentrate on its packing as people are least satisfied
with it while ITC Candyman should concentrate on the shape of their candy.
People are unsatisfied with the price and quantity of candy so companies should
concentrate in this regard also.
CONCLUSION
A survey of the people has been conducted to know the liking pattern of
the ITC Candyman and Candico. It is observed that overall retailers like to buy
ITC Candyman candies rather than Candico. It is concluded that mostly people
preferred Eclairs of ITC Candyman due to its flavor/taste, quality and image and
due to its hard form. Some people often like to have a candy with good flavor,
48
quality and crunchiness so they are going towards Eclairs and Coffi Toffi of
Candico due to its taste and crunchiness.
It is thus concluded from the facts collected that mostly people refer to
buy jars of their favorite candy and sometimes some of them go for Polly bags
and jumbo jars.
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ANNEXURE
QUESTIONNAIRE
PROJECT REPORT ON RETAILER PREFERENCE TOWARDS
ITC CANDYMAN AND CANDICO CANDIES
Que1. Do you sell candies?
Yes No
50
Que2. Which brand of candy do you prefer?ITC Candyman Candico
Que3. Which sub-brand you have purchased?
ITC Candyman Candico
Cofitino Koffi Toffi
Natkhat Mango Green mango
Fruitee Fun Fruits Candy
Mint-o-Fresh Mint Candy
Eclairs Eclairs
Que4. Rank the sub-brands of candies according to your preference? (1 for most preferred)
ITC Candyman Candico
Cofitino Koffi Toffi
Natkhat Mango Green mango
Fruitee Fun Fruits Candy
Mint-o-Fresh Mint Candy
Eclairs Eclairs
Que5. How much importance do you give to the following factors when you purchase a candy? (Tick in the desired column)
Factors Very Important
Important Normal Least Important
None
Flavor/taste
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PriceQualityPackagingFormBrandImageColorShapeQuantity
Que6. How much are you satisfied with the following factors in your preferred candy? (Tick in the desired column)Factors Very
SatisfiedSatisfied Normal Least
SatisfiedCan’t Say
Flavor/tastePriceQualityPackagingFormBrandImageColorShapeQuantity
Que7. Which form of a candy do you sell? Hard Nutties
Crunchy Chew
Que8. What pack do you purchase?Polly bags Jar Jumbo Pack
Que9. Which promotional offers attract you most?Free gifts Price Offer Any other
Que10.Which of these factors affects your purchase? Advertisement
Suggestion from customers
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Attractive Display
Salesman Advice
Brand Ambassadors
Ingredients
Que11. Which media of advertisement influence your purchase?Television Newspapers Brochures
Hoarding Display
Que12. How frequently do you purchase candies?Once in a fortnight DailyWeekly MonthlyQuarterly
Que13. What according to you is the reasonable price of candy?
Below25paise 25paise-50paise 50paise-Rs1
Rs1-Rs2 Above Rs2
Que14. If your preferred brand is not available for repeat purchases then what will you do?
Postpone your purchase Switch over to other brand Go to the other seller to search for your preferred brand
Que15. If another brand of the same product appears in the market, will you prefer to stop buying this brand and buy the new brand?
No, not at all I may consider
No, I shall not can’t say
Que16. If you don’t like to change to the new brand, then what are the reasons for
continuing to purchase the old brand?
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PERSONAL DETAILS
Name:
Address:
Gender:
Phone Number:
Marital status:
Education:
Profession:
THANKS
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BIBIOGRAPHY
BIBLIOGRAHY
1. BOOKS/MAGAZINES REFFERED:
Marketing Management by “Philip kotler”
Marketing Management by”C.N.Sontakki
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2. WEBSITES REFFERED:
http://en.wikipedia.org
http://www.candicoindia.com
http://www.itcportal.com
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