8201104 study of retailers preference towards itc candyman and candico candies

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 TABLES

TABLE

NUMBER

TITLE PAGE

NUMBER

1 Sale Of The Candies 23

2 Brand Preferences 24

3 Purchase Of ITC Candyman Candies 25

4 Purchase Of Candico Candies 26

5 Overall Purchase Of Candies 27

6 Preference Of Sub-brands Of ITC Candyman Candies 28

7 Preference Of Sub-brands Of Candico Candies 29

8 Influencing Factors During Purchase Of Candies 30

9 Influencing Factors During Purchase Of ITC Candyman

Candies

31

10 Influencing Factors During Purchase Of Candico Candies 32

11 Factors Giving More Satisfaction To The Retailers 33

12 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 36

15 Pack Of Candies Preferred 37

16 Promotional Offers 38

17 Factors Affecting Purchase 39

20 Media Of Advertisement 40

21 Frequency Of Consumption 41

22 Reasonable Price 42

23 Consumer’s Brand Loyalty 43

24 Reaction Of Customers If New Brand Is Introduced 44

LIST OF GRAPHS

2

GRAPH

NUMBER

TITLE PAGE

NUMBER

1 Liking For The Chocolate 23

2 Brand Preference 24

3 Purchase Of ITC Candyman Candies 25

4 Purchase Of Candico Candies 26

5 Overall Purchase Of Candies 27

6 Form Preferences 36

7 Pack Of Candies Preferred 37

8 Promotional Offers 38

9 Factors Affecting Purchase 39

10 Media Of Advertisement 40

11 Frequency Of Consumption 41

12 Reasonable Price 42

13 Retailer’s Brand Loyalty 43

14 Reaction Of Retailers If New Brand Is Introduced 44

ACKNOWLEDGEMENT

3

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

GUIDE:

Mrs. Dalbir Kaur Shah Faisal

PREFACE

4

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.

DECLARATION

5

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

6

CHAPTER-I

INTRODUCTION

7

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

8

acknowledged service skills in hotelier. Over time, the strategic forays into new

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’.

9

‘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

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.

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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.

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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.

12

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.

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

13

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.

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

14

CHAPTER-II

16

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.

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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.

18

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.

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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.

20

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.

21

CHAPTER-IIIDATA ANALYSIS

AND INTERPRETATION

22

ANALYSIS OF THE STUDY

SALE OF THE CANDIES

Table: 1

Sale of the Candies Yes No

Number of Respondents 95 5

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.

23

BRAND PREFERENCETable: 2

BRANDS PREFERENCE BY CONSUMERS

ITC CANDYMAN 73

CANDICO 22

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.

24

PURCHASE OF CANDIES

PURCHASE OF CANDYMAN

Table: 3

ITC CANDYMAN

SUB- BRANDS NUMBER OF RESPONDANTS

ECLAIRS 69

COFFITINO 64

MINT-O-FRESH 61

FRUITEE FUN 49

NATKHAT MANGO 41

Chart: 3

25

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

Table: 4

CANDICO CANDIES

SUB- BRANDS NUMBER OF RESPONDANTS

ECLAIRS 19

COFFI TOFFI 18

MINT CANDY 15

FRUITS CANDY 17

GREEN MANGO 11

Chart: 4

26

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

SUB-BRANDS NUMBER OF RESPONDANTS

ECLAIRS 69

COFFITINO 64

MINT-O-FRESH 61

FRUITEE FUN 49

NATKHAT MANGO 41

ECLAIRS 19

COFFI TOFFI 18

FRUITS CANDY 15

MINT CANDY 17

GREEN MANGO 11

27

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 CANDYMAN

SUB- BRANDS GRAND TOTAL

OF

PREFERENCE

AVERAGE

(GRAND TOTAL / No.

OF RESPONDANTS)

RANKS

ECLAIRS 315 4.3 1

COFFITINO 220 3 2

MINT-O-FRESH 176 2.4 3

FRUITEE FUN 136 1.86 4

NATKHAT

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.

28

PREFERENCE OF SUB-BRANDS OF CANDICO

Table: 7

CANDICO CANDIES

SUB- BRANDS GRAND

TOTAL OF

PREFERENCE

AVERAGE

(GRAND TOTAL / No. OF

RESPONDANTS)

RANKS

ECLAIRS 70 3.18 1

COFFI TOFFI 64 2.9 3

FRUITS CANDY 65 2.95 2

MINT CANDY 45 2.05 4

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.

29

INFLUENCING FACTORS DURING PURCHASE

OVERALL INFLUENCE

Table: 8

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOR/TASTE 435 4.58 1

PRICE 295 3.1 9

QUALITY 391 4.12 2

PACKAGING 344 3.62 4

FORM 301 3.17 7

BRAND 354 3.73 3

IMAGE 344 3.62 4

COLOR 297 3.13 8

SHAPE 268 2.82 10

QUANTITY 342 3.6 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. It is surprised to know

that very few people are influenced by price followed by shape of the candies.

30

INFLUENCING FACTORS DURING PURCHASE OF

ITC CANDYMAN CANDIES

Table: 9



PRICE 235 3.2 7

QUALITY 307 4.2 2


FORM 231 3.16 8

BRAND 271 3.71 4

IMAGE 262 3.59 5

COLOR 224 3.07 9

SHAPE 213 2.92 10

QUANTITY 262 3.59 5


influenced by flavor/taste followed by quality, packaging and brand. Here color and

shape are not all influencing people while purchasing ITC Candyman candies.

31

INFLUENCING FACTORS DURING PURCHASE OF

CANDICO CANDIES

Table: 10



PRICE 60 2.72 5

QUALITY 84 3.82 2

PACKAGING 67 3.04 9

FORM 70 3.18 8

BRAND 83 3.77 3

IMAGE 82 3.73 4

COLOR 73 3.32 7

SHAPE 55 2.5 10

QUANTITY 80 3.64 6


influenced by flavor/taste followed by quality, brand and image. Here packaging and

shape are not all influencing people while purchasing Candico candies.

32

FACTORS GIVING MOST SATISFACTION TO

RETAILERS

OVERALL

Table: 11



PRICE 337 3.6 4

QUALITY 367 3.86 2


FORM 332 3.49 7

BRAND 358 3.77 3

IMAGE 328 3.45 9

COLOR 332 3.49 7

SHAPE 335 3.52 6

QUANTITY 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.

33

SATISFACTION IN ITC CANDYMAN CANDIES

Table: 12



PRICE 269 3.68 5

QUALITY 282 3.86 2


FORM 264 3.62 6

BRAND 282 3.86 2

IMAGE 247 3.38 10

COLOR 259 3.55 7

SHAPE 258 3.53 8

QUANTITY 255 3.49 9


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.

34

SATISFACTION IN CANDICO CANDY

Table: 13



PRICE 68 3.09 8

QUALITY 85 3.86 2

PACKAGING 66 3 10

FORM 68 3.09 8

BRAND 76 3.45 5

IMAGE 81 3.68 3

COLOR 73 3.32 6

SHAPE 77 3.5 4

QUANTITY 73 3.32 6


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.

35

FORM PREFERENCE

Table: 14

FORM OF CANDY NUMBER OF

RESONDENTS

HARD 30

NUTTIES 21

CRUNCHY 26

CHEW 18

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.

36

PACK OF CANDIES PREFERED

Table: 15

PACK SIZE NUMBER OF RESPONDENTS

POLLY BAG 28

JAR 48

JUMBO JAR 19

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.

37

PROMOTIONAL OFFERS

Table: 16

PROMOTIONAL OFFERS NUMBER OF RESPONDENTS

FREE GIFTS 52

PRICE OFFER 23

ANY OTHER 20

Chart: 8

38

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

RESPONDENTS

ADVERTISEMENT 67

SUGGESTION FROM CUSTOMERS 17

ATTRACTIVE DISPLAY 12

SALESMAN ADVICE 14

BRAND AMBASSADORS 10

INGREDIENTS 28

39

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 RESPONDENTS

TELEVISION 75

NEWSPAPERS 10

BROCHURES 5

HOARDING 8

DISPLAY 25

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

40

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 RESPONDENTS

ONCE IN A FORTNIGHT 16

DAILY 17

WEEKLY 39

MONTHLY 18

QUARTERLY 5

Chart: 11

41

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 RESPONDENTS

BELOW 25paise 6

25paise-50paise 23

50paise-Rs1 51

Rs1-Rs2 4

ABOVE Rs2 11

Chart: 12

42

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 RESPONDENTS

POSTPONE YOUR PURCHASE 26

SWITCH OVER TO OTHER BRANDS 24

GO TO OTHER SHOP FOR SEARCH

OF PREFERED BRAND

45

Chart: 13

43

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 35

MAY CONSIDER 27

NO, SHALL NOT 4

CAN’T SAY 29

44

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

Packaging

45

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.

47

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.

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2. ITC leveraged it traditional businesses to develop new brands for new segments. .

For 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.

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2. To fund its cash guzzling FMCG start-up, the company is still dependant upon its

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

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http://www.itcportal.com/agri_exports/e-choupal_new.htm

in India is the lowest in the world offering an opportunity for ITC's soaps, shampoos and

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

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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

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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,

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

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PROJECT REPORT ON RETAILER PREFERENCE TOWARDS

ITC CANDYMAN AND CANDICO CANDIES

Que1. Do you sell candies?

Yes No

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

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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/tastePriceQualityPackagingFormBrandImageColorShapeQuantity

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

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Que10.Which of these factors affects your purchase? Advertisement

Suggestion from customers

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

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Que16. If you don’t like to change to the new brand, then what are the reasons for

continuing to purchase the old brand?

PERSONAL DETAILS

Name:

Address:

Gender:

Phone Number:

Marital status:

Education:

Profession:

THANKS

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BIBIOGRAPHY

BIBLIOGRAHY

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1. BOOKS/MAGAZINES REFFERED:

Marketing Management by “Philip kotler”

Marketing Management by”C.N.Sontakki

2. WEBSITES REFFERED:

http://en.wikipedia.org

http://www.candicoindia.com

http://www.itcportal.com

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http://www.google.com/

http://www.candicoindia.com/

http://en.wikipedia.org/

8201104 study of retailers preference towards itc candyman and candico candies

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