candiman
TRANSCRIPT
A PROJECT REPORT ON
“COMPARATIVE STUDY OF RETAILER & WHOLESELLER BEHAVIOR TOWARDS ITC CANDYMAN & PERFETTI”
SUBMITTED TO:- SUBMITTED BY:-
ITC Limited ANSHUL GUPTA
INDIA TOBACCO DIVISION MATRIX BUSINESS SCHOOL
TOBACCO HOUSE DIVISION- D PUNE
SAHARANPUR
ACKNOWLEDGEMENT
First of all I would like to thank the Management at ITC Ltd. for giving me
the opportunity to do my two month project training in their esteemed
organization. I am highly obliged to my project guide Mr. GIREESHA
NEMA (Branch manager ,ITC Saharanpur) 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 Pro. RAJEEV DEO (faculty member), who extended me
assistance, support and council without, which this project would not have
been materialized.
PROJECT GUIDE:
Mr. GIRESSHA NEMA ANSHUL GUPTA
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 “Comparative study of retailer &
wholesalers behavior towards ITC Candyman and Perfetti Van Melle”
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.
Introduction
ITC India Limited
Type Public (BSE:ITC)
Founded August 24, 1910
Radha Bazar Lane, Kolkata, India
Headquarters Virginia House, Kolkata, India
Key people Y C Deveshwar, Chairman K Vaidyanath, Director, CFO: Partho Chatterjee
Industry Tobacco, Foods, Hotels
Products Cigarettes, Packaged Food, Hotels, Apparel
Revenue $4.75 billion USD (2006)
Employees 20,000 (2006)
Website http://www.itcportal.com/
ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 14 billion and a turnover of over US $ 5 billion.* ITC is rated among the World's Best Big Companies, Asia's 'Fab 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 ranks among
India's `10 Most Valuable (Company) Brands', in 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.
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 employs over 25,000 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 3,68,000 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."
HISTORY
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. Its beginnings were humble. 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. The Company's ownership progressively Indianised, and the name of the Company was changed 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-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'.
GROWTH AND DIVERSIFICATION
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.
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 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.
In 1985, ITC set up Surya Tobacco Co. in Nepal 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 operatonal in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.
In 2000, ITC launched a line of high quality greeting cards under the brand name 'Expressions'. In 2002, the product range was enlarged with the introduction of Gift wrappers, Autograph books and Slam books. In the same year, ITC also launched 'Expressions Matrubhasha', a vernacular range of greeting cards in eight languages and 'Expressions Paperkraft', a range of premium stationery products. In 2003, the company rolled out 'Classmate', a range of notebooks in the school stationery segment.
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 2007, the Company introduced 'Miss Players'- a fashion brand in the popular segment for the young woman.
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). 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 just seven 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.
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 women (Inizio Femme). Continuing with its tradition of bringing world class products to 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.
COMPANY PROFILE
ITC in FMCG (CIGARETTES)
ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.
The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design, innovation, manufacturing technology, quality, marketing and distribution. All initiatives are therefore worked upon with the intent to fortify market standing in the long term. This in turns aids in designing products which are contemporary and relevantto the changing attitudes and evolving socio economic profile of the country. This strategic focus on the consumer has paid ITC handsome dividends
FoodsITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches in the
Confectionery, Staples and Snack Foods segments. The Foods business is today represented in 4 categories in the market. These are:* Ready To Eat Foods * Staples * Confectionery * Snack Foods
In order to assure consumers of the highest standards of food safety and hygiene, ITC is engaged in assisting outsourced manufacturers in implementing world-class hygiene standards through HACCP certification. The unwavering commitment to internationally benchmarked quality standards enabled ITC to rapidly gain market standing in all its 6brands:* Kitchens of India * Aashirvaad* Sunfeast* mint-o* Candyman* Bingo!
Lifestyle Retailing
ITC’s Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty
stores. Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed wear, Wills Clublife evening wear, fashion accessories and Essenza Di Wills – an exclusive range of fine fragrances and bath & body care products and Fiama Di Wills - arange of premium shampoos and shower gels. Wills Lifestyle has also introduced Wills Signature designer wear, designed by the leading designers of the country.
Wills Classic work wear was launched in November 2002, providing the premium consumer a distinct product offering and a unique brand positioning.ITC forayed into the youth fashion segment with the launch of John Players in December 2002 and John Players is committed to be the No. 1 fashion brand for the youth.
Education & Stationary products
ITC made its entry into the stationery business in 2002 with its premium range of notebooks, followed in the year 2003 with the more popular range to augment its offering. ITC's stationery Brands are marketed as
"Classmate" and "Paperkraft", with Classmate addressing the needs of school goers and Paperkraft targeted towards college students andexecutives.
Agarbattis
As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector, the Company commenced marketing Agarbattis (incense sticks) sourced from small-scale and cottage units in 2003.
Hotels
ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai, which was then rechristened ITC Chola. Since then the ITC-Welcomgroup brand has become synonymous with Indian hospitality. With
over 90 hotels in 77
destinations.
Packaging
ITC's Packaging & Printing Business is the country's largest convertor of paperboard into packaging. It converts over 50,000 tonnes of paper and paperboard per annum into a variety of value-added packaging solutions for the food & beverage, personal products, cigarette, liquor, cellular phone and IT packaging industries. It has also entered the Flexibles and Corrugated Cartons business.
Agri Business
e-Choupal
The unique e-Choupal model creates a significant two-way multi-dimensional channel which can efficiently carry products and services into and out of rural India, while recovering the associated costs through agri-sourcing led efficiencies. This initiative now comprises about 6500 installations covering nearly 40,000 villages and serving over 4million farmers.
Leaf Tobacco
ITC is the largest buyer, processor and exporter of leaf tobaccos in India - creating a global benchmark as the single largest integrated source of quality tobaccos. Serving customers in 50 countries across more than 70 destinations, ITC co-creates and delivers value at every stage of the leaf tobacco value chain.
Information Technology
ITC InfoTech offers IT services and solutions across five key industry verticals: Banking, Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG) & Retail, Manufacturing & Engineering Services, Travel, Hospitality & Transportation and Media& Entertainment.
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.
ITC VISION:-
Sustain ITC position as a one of the India’s most valuable corporations through world class performance, creating growing value for the Indian economy and the company’s stakeholder.
ITC MISSION:-
To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.
Confectionery Industry Overview
Indian Confectionery Manufacturers Association (ICMA) is the apex organisation of the confectionery industry in the country. ICMA promotes confectionery products in the domestic market as well as the global market through various campaign programmes like seminars and workshops. In an exclusive interview with Sabyasachi Samajdar of Food & Beverage News, ICMA Secretary M N Rao talks about the hurdles the domestic confectionery industry is facing today. Excerpts:
What are the issue before ICMA?
The confectionery industry has considerable potential for growth. A study undertaken by McKenzie projected the potential in the industry at over Rs 5,000 crore per annum whereas the current turnover is around Rs 3,000 crore. For achieving this potential there is need to upgrade the technology in the confectionery industry. Presently, the industry is not viable. The main issue before our industry is the very high rate of excise duty, which could not be passed on to the consumers because the products are sold in the price range of 25 paise, 50 paise and one rupee. The reservation of the industry to the small-scale sector and imports at much under-valued prices are allowed freely under Open General Licence, seriously impacting the domestic players. The domestic players are restricted from expanding their capacities especially in the candy and other products, which are still reserved to the small-scale industry (SSI) sector in the country while imports are freely allowed. This issue needs to be resolved by complete de-regulation of the confectionery industry. There is also the issue of duplicates and look alikes. In order to maintain the of quality products, the association is planning to create a cell which will look into the issue of such spurious goods. As far as exports are concerned while our products almost match with the best brands in the world, we may not be very competitive in the global market. The industry is presently reserved for SSI. There are some restrictions on expansion and growth while imports are freely permitted. The reservation is not promoting the SSI sector and should be done away with. It is very important that the industry should have reasonable margins. Unfortunately, the industry is not doing very well because of the high excise duty.
What steps have been taken by the ICMA to promote Indian confectionery industry in the country?
Import of confectionery not even conforming to the product specifications and label declarations is another factor that is impacting the domestic industry. Another major concern is that of look alike and spurious products. The association is planning to create a cell to prevent such importing into the country as well as look alike products which seriously impact the organised sector of the industry as well as the revenue to the Central and state government.
What do you think about the export potential of Indian confectionery products in the competitive global market?
The country is a major producer of sugar in the world, the basic raw material of the confectionery industry. This is a very positive aspect for manufacture confectionery items, which could compete in the global market. To be a regular exporter of confectionery there is need for upgradation of technology as well as addition of new capacity to attract the deregulation of the confectionery sector and restructuring of the excise duty will go a long way in achieving the objectives and create capacity for export.
The government seems to be serious in promoting the food-processing sector in a big way. Given a chance what would be the changes you would suggest to the policy makers in promoting your sector in india?
The quality inspection of confectionery products at the port has to be strengthened to ensure that the goods imported into the country meet fully the specification to the product and labeling requirements as per the Prevention of Food Adulteration (PFA). The confectionery industry, where the raw materials used are primarily of agriculture produce, has so far not received any concession in excise duty. While products of similar nature such as ice creams, biscuits, snack foods attract nil rate of duty, the confectionery industry is subject to 16% on a number of products and even
on low value products sold at 25 paise, 50 paise, it attracts 8% duty. The Ministry of Food Processing is quite appreciative of the problem and we hope that in the coming budget, the government will give some consideration to these aspects and rationalize the duty structure by levying nil rate of duty on low value products and others at 8%. In so far as confectionery is concerned, it is required to pay 8-16% of duty. We drew the attention of the Ministry of Food Processing Industries and have been representing to the Finance Ministry to look into some of the anomalies and lower the duty structure on confectionery which would go a long way in capacity building not only for domestic consumption but also export. The association has been requesting the government that confectionery products manufactured from agro products like milk, milk powder, sugar and glucose have not been given any consession in the duties although several other sectors of agro-based industries have received continuous support form the government. There is a need for rationalization of duties and the products, which are sold at low price points, should be exempted from excise duty whereas other products may be put at 8% duty.
INDUSTRY TRENDS
The confectionery industry in India .The confectionery industry in India is approximately divided into:
Chocolates Hard-boiled candies Eclairs & toffees Chewing gums Lollipops Bubble gum Mints and lozenges
The total confectionery market is valued at Rupees 41 billion with a volume turnover of about 223500 tonnes per annum. The category is largely consumed in urban areas with a 73% skew to urban markets and a 27% to rural markets.
Hard boiled candy accounts for 18%, Eclairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account for 13%. Digestive Candies and Lollipops account for 2.0% share respectively.
Overall industry growth is estimated at 23% in the chocolates segment and sugar confectionery segment has declined by 19%.
ITC ENTER INTO CONFECTIONERY MARKET
ITC Foods, the recently set up division of the tobacco and hotel major ITC Ltd, is finally sweetening its way to the Rs 1,100 crore confectionery market. In a quiet move, the foods division which has shifted office from Kolkata to Bangalore this month, has launched its first confectionery product—the acquired brand Minto—in four cities.
Reformulated and repackaged with a prominent ITC logo, Minto, inform market sources, has been launched in Mumbai, Pune, Lucknow and Coimbatore last month. Launched in two rolls and priced at Rs 5 (for 20s) and Rs 2 (for 6), ITC is expected to launch single packs priced at lower price points as well. More research on how to tap the potential of the Minto brand is being conducted at the division’s research and development facility in Bangalore.
Last month, ITC also made a foray into the branded staples segment with the launch of its atta under Aashirwaad brand. ITC spokesperson, however, insists that both—atta and confectionery—are at a test marketing phase and a final decision as to their formal launch will be taken only after gauging the response.
ITC, it may be mentioned, bought the Minto brand from New Delhi-based Candico promoted by Mr Sanjiv Kumar. Though ITC owns the brand, the manufacturing rights still remain with Candico. Minto is the second largest player in the mint confectionery category after Nestle’s Polo.
Industry observers are, however, laying greater emphasis on Minto’s relaunch under ITC’s umbrella. Says an observer: “We are not worried about Minto being relaunched, what’s important is that it implies that ITC is serious about the confectionery business.”
ITC which made a foray into the foods business, last year, with its ready-to-serve (RTS) brand Kitchens of India, has already announced its other plans in the sector.
Apart from RTS, confectionery, and atta, the ITC food foray is expected to cover a range of products including biscuits.
ITC currently has two brands in the confectionery segment –‘Mint-o’ and ‘Candy man’.
‘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 CONFECTIONERY PORTFOLIO
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.
ITC foods expands Minto- fresh portfolio
"Ropes in Rakhi Sawant for the new campaign to launch Mint-O Fresh Cool Green
ITC Limited today announced the expansion of the Mint-o fresh portfolio with the launch of mint-o fresh cool Green. The new variant Mint-O Fresh Cool Green will provide further thrust to the formidable presence that Mint-O Fresh has established in the adult mint category. The brand has also roped in the bold and confident Bollywood diva Rakhi Sawant to highlight the brand and product salience.
Speaking on the occasion of the launch, Mr. Ravi Naware, Divisional Chief Executive, ITC Ltd - Foods Division said "The new variant of Mint-O Fresh hallmarks ITC Foods' innovative & differentiated product strategy. ITC Ltd - Foods Division, being at the forefront of product development and innovation has introduced the new variant of Mint-O fresh after months of product and consumer research. "Mint-O fresh Cool Green" is milder and sweeter in taste and the cool green color of the mint connotes freshness and imparts oral hygiene and mouth freshening benefits. Mint-O Fresh Cool Green has been developed with a combination of two flavours - Spearmint and Peppermint. The new product will be supported by a multi-media communication campaign including a new television commercial featuring Rakhi Sawant. The initial campaign will be further supplemented by on-ground promotions distinctly communicating the product attributes and brand essence."
Mint-O Fresh, the hard boiled mint candy brand from ITC Foods stands for freshness that inspires self-confidence and plays a lead role in the consumer's social interactions. The communication of Mint-O Fresh has been about breath freshness enabling the protagonist to win over his girl. The tagline "Jab Laila ko karna tha impress to majnu ne khayi mint o fresh" has stood the test of times and is still widely known and remembered. This communication has worked well for the brand and has enabled it to gain shares in a short period of time in the face of intense competition. The brand today is a leader in its category.
Speaking on the new campaign, Ishita Tandon, Brand Manager Confectionery, ITC Ltd-Foods Division said "Adult mint confectionery is an
impulse category where salience for a brand is very important. It is critical to get cut through so that the consumer remembers the brand and asks for it at the point of sale. Signing on Rakhi will help us get this cut through and improve brand salience. Also, Rakhi is bold, confident and frank and Minto Fresh has similar brand values. Thus there is a good fit with Minto fresh. Moreover, the brand statement has been breath freshness and the communication has been about the protagonist trying to impress his girl. What better than impressing Rakhi Sawant."
While maintaining the inherent property of freshness and confidence through mint o fresh the new communication intends to present the brand promise in another fresh and exciting manner. The use of street parlance dramatized through a protagonist trying to impress his girl is set to enhance the brand connect with its target audience.
About Mint-O Fresh:
The .50p Cough Lozenges segment, which accounts for 10.3% of the total confectionery market (value terms) is one of the fast growing segments with a growth rate of 32% (3 year CAGR, value terms). The segment has gained tremendous popularity over the past 3 years. The category of Cough Lozenges is characterized by well entrenched brands in the market. ITC Foods entered the fast growing Cough Lozenge segment with the launch of Mint-O Fresh in 2004. Currently available in Eucalyptus and Clove flavours, Mint-O Fresh has garnered a significant market share in the category and top of mind recall on the basis of its distinctive product offerings, immense retail reach and clutter-breaking communication. It is today the No. 1 brand in the 50 p cough lozenges segment.
Introduction : Perfetti Van Melle
Private Company Incorporated: 1900 as Van Melle; 1946 as Dolcifico Lombardo; 2001 as
Perfetti Van Melle
Sales: EUR 1.3 billion ($1.6 billion) (2004 est.)
NAIC: 311330 Confectionery Manufacturing from Purchased Chocolate;
311340 Non-Chocolate Confectionery Manufacturing
Company History:
Perfetti Van Melle S.P.A. is the world's sixth-largest candy and confectionery producer and number two in Europe. Representing the combination of Italy's Perfetti with the Netherlands' Van Melle, Perfetti Van Melle produces and markets a host of top-selling candy brands, including Mentos, Fruittella, Brooklyn, Alpenlieve, Golia, and Frisk. Perfetti Van Melle has a worldwide presence, with factories in Italy, the Netherlands, Germany, Spain, and elsewhere in Europe, as well as manufacturing sites in the United States, Brazil, Turkey, India, China, Indonesia, and Vietnam. The company has also announced its intention to begin manufacturing in Russia in 2005. Sales of the privately held company's products reach more than 130 countries. Perfetti Van Melle operates dual headquarters in Lainate, Italy, and Breda, the Netherlands. The company's sales were estimated to top EUR 1.3 billion ($1.6 billion) in the mid-2000s.
Van Melle's Origins in the 19th Century
The merger between Italy's Perfetti and Van Melle of the Netherlands in 2001 created one of the world's top confectionery companies, with a rank of number two in Europe and a global ranking of number six. The merger cemented the friendly relationship that existed between the companies for some two decades and had led Perfetti to become a major shareholder in Van Melle by the early 1990s.
Van Melle was the older of the two companies, tracing its origins to a bakery founded by Izaak van Melle in Breskens, the Netherlands, in 1841. The bakery was taken over by one of van Melle's sons, Abraham van Melle, in 1882. It was under this generation that the family made its first entry into the confectionery business. One of the bakeries employees came from Belgium and knew how to prepare sugar in order to make candy. Van Melle decided to begin cooking up candies besides its usual bakery goods. The shop's "suikerballetjes" (sugar balls) quickly became a popular local favorite. Production remained on a small, homemade scale, however.
Abraham van Melle's son Izaak joined the family business by the turn of the 20th century. Recognizing the popularity of the bakery's candies, the younger Van Melle decided to launch large-scale production of the confectionery and invested in machinery and equipment to establish a full-fledged candy factory in 1900. Izaak van Melle also continued to seek to improve the company's products, establishing high-quality standards and expanding and modernizing its production facilities.
The company also rapidly turned to the international market for sales. By the 1920s, the company's products had found their way across the world, reaching the Dutch Indies, South Africa, Morocco, Tunisia, and Algeria, many Asian markets, and, closer to home, markets in Europe, such as Greece. Izaak van Melle himself traveled extensively, seeking out new clients and markets.
Van Melle's many travels had led him to discover many new candy and confectionery varieties, which he brought back to the company. In this way, in 1926, the company launched production of toffee candies, an English favorite. Van Melle soon made the recipe its own, and, working in its own test kitchen, extended its range of toffee to include a variety of flavors, including licorice. The company's recipe proved so successful that Van Melle toffees became popular even in the United Kingdom.
A trip to Poland in the early 1930s gave the company two new recipes. The first was for a soft caramel-like candy containing real fruit flavors. The second was a candy-coated peppermint-flavored caramel. These candies later became known as Fruittella and Mentos, respectively, and helped launch Van Melle into the ranks of the world's leading confectionery companies.
By the 1930s, however, Van Melle was already a prominent confectioner, and by 1935 the company had even purchased its own airplane, a rarity at the time. However, the German occupation of the Netherlands during World War II brought hard times to the company. Wartime restrictions on sugar consumption severely cut into production. By the end of the war, bombing raids had destroyed the Van Melle factory.
Key Dates:
1841: Izaak Van Melle opens a bakery in Breskens, the Netherlands.
1882: Abraham Van Melle takes over the bakery and begins producing candies.
1900: Izaak van Melle, the founder's grandson, takes over the bakery and builds a new factory for large-scale production of candy and confectionery.
1926: Van Melle begins production of English-style toffee.
1946: After its production site destroyed during war, Van Melle builds a new factory in Rotterdam; Perfetti brothers launch Dolcifico Lombardo, later Perfetti, in Lainate, Italy, in order to produce chewing gum and other candies.
1950: Van Melle opens its first foreign sales and distribution subsidiary in Belgium.
1966: Perfetti launches a subsidiary, Gum Base Company, for production of natural and artificial .
1972: Van Melle starts U.S. operations in Kentucky.
1982: Van Melle moves to a new production site in Breda and makes its first acquisition, of PPW in Gilda; Perfetti sets up its first foreign production site in Greece.
1983: Van Melle lists shares on Amsterdam Beurs' Parallel Markt and begins a marketing relationship with Perfetti.
1991: Perfetti buys a 37 percent stake in Van Melle.
1995: Van Melle enters India.
1997: Van Melle enters China, building a production site in Shenzen.
2000: Van Melle switches its listing to Amsterdam exchange's primary board.
2001: Perfetti acquires 100 percent control of Van Melle for EUR 966 million.
Expansion and Innovation: Mid-1940s to the 1970s
Instead of rebuilding in Breskens, Van Melle decided to relaunch the company with a new purpose-built facility in Rotterdam in 1946. The new facility therefore gained access to Rotterdam's busy port, facilitating its international sales. By 1950, Van Melle had reached full production capacity at the new site. During this period, however, the company decided to narrow its range of confectionery in order to target its efforts on a smaller group of core candy brands. The period also marked the beginning of Van Melle's true internationalization.
The company launched initiatives in a number of new markets through the 1950s and into the 1960s and 1970s. Among these was the introduction of a new packaging form for its Fruittella and Mentos candies, which were quickly becoming company flagships. Both candy types had previously been packaged as loose, bagged candies. In the 1950s, however, Van Melle developed a new roll-type packaging, easier to stock for grocers and easier to carry for consumers. The new packaging helped turn both candies into top-selling international brands.
Van Melle backed up its international expansion with the opening of a series of foreign subsidiaries. In 1956, the company established its first foreign manufacturing plant, opening a facility in Brazil. The company also began opening sales and marketing subsidiaries in order to be closer to local markets, setting up in Belgium in 1950, Germany in 1953, and France in 1960, before expanding elsewhere. The company entered the United States in 1972, establishing a manufacturing and marketing subsidiary in Erlanger, Kentucky, that year. Later in the 1970s, Van Melle expanded into Asia as well, ultimately setting up subsidiaries in India, Singapore, and Vietnam. In addition to producing and promoting Van Melle's core brands, the new subsidiaries also helped the company adapt its recipes and product offering for these local markets.
Building Relationships in the 1980s
Van Melle launched a new expansion phase in the 1980s, seeking to build up its range of brands and expand its production capacity. In 1982, the company made its first acquisition, buying up a small candy producer, PPW, based in Gilda, and acquiring that company's Mintina and Dropmintina brands as well. By then, the company had reached the limits of its production capacity at its Rotterdam site. The company went looking for a new site, buying up a large factory site in Breda. Fueling this expansion, Van Melle listed its shares of the Amsterdam Stock Exchange's Parallelmarkt in 1983.
At the same time, the company retained its interest in new growth opportunities. One of these came in the early 1980s when the company formed a relationship with Italian confectionery company Perfetti, and the two companies began developing joint-marketing efforts. Van Melle also added a number of acquisitions through the 1980s and into the 1990s, including a candy factory from Gebr. Verduijn, which marked the company's return to Breskens as well. The company then purchased Peco Suikerwerken, based in Den Haag, followed by the acquisition of Look-O-Look, a maker of lollipops and bagged candies, based in Ridderkerk, in 1987. Meanwhile, Van Melle also worked on the in-house development of new candy types and brands, leading to the launch of Airheads candies in the United States in 1986.
Merging Market Leaders in the 1990s and 2000s
Van Melle's expansion continued through the 1990s, notably with an entry into the Eastern European markets. After establishing local sales and marketing subsidiaries in these countries, Van Melle sought to acquire production capacity as well, and in 1998 the company acquired VDG, which operated in the Czech Republic, Slovakia, and Hungary. The company opened a production facility in Poland, and a packaging plant in Russia, then established a factory in Indonesia. The company also entered India and China, establishing sales and production subsidiaries in those markets in the late 1990s. The company built its first Chinese factory in Shenzen in 1997, launching production in 2000. At the end of the 1990s, Van Melle's expansion program led it to acquire a number of new businesses, including Klene in the Netherlands, Candy Tech in the United States, and Fundy in Hungary and Romania, all in 1999. Also in that year, Van Melle acquired
the Wybert brand of throat lozenges, including a production site in the Netherlands, from GABA International of Switzerland.
Van Melle moved its stock listing to the Euronext Amsterdam Stock Exchange's Officiële Markt in 2000. By then, Perfetti was already a major shareholder in the company, having bought a 36 percent stake in Van Melle in the early 1990s. Soon after Van Melle's listing, the two companies, which had continued strengthening their marketing partnerships over the last decade, agreed to a full-fledged merger. In 2001, Perfetti acquired 100 percent control of the company and removed its public listing. The newly enlarged company then adopted the name Perfetti Van Melle.
Perfetti: Postwar Beginnings to Merger with Van Melle
Perfetti had been founded in the town of Lainate, Italy, in 1946, by brothers Ambrogio and Egidio Perfetti. The brothers initially called their company Docificio Lombardo, and the small company began producing candies and confectionery for the nearby market in Milan. The Perfettis grew quickly, expanding their factory into the 1950s.
The product that put the Perfetti name on the international candy map was launched soon after the company's founding. The arrival of the American army in Italy during World War II had introduced Italians to a novel new confectionery--chewing gum. The Perfettis became the first in Italy to begin producing chewing gum, adopting the name "Brooklyn" for their product. The brand became an instant success across the country and was to remain Italy's top-selling chewing gum into the 21st century. The company later changed its name to Perfetti. In the 1960s, the company expanded its production, notably through the founding of Gum Base Company SPA, which specialized in developing bases for Perfetti's and other companies' chewing gum.
By the end of the 1970s, Perfetti boasted a strong portfolio of confectionery brands, including Alpenliebe, Babol, Morositas, Vigorsol, and Happydent. The company backed up its products with innovative advertising campaigns that enabled its brands to become leaders in their categories. Perfetti also expanded into international markets, achieving strength particularly in southern Europe. This position made the company an attractive partner for Van Melle, which focused more strongly on northern Europe, leading the companies to develop their first cross-marketing efforts in the early 1980s.
Perfetti launched its own acquisition drive in the 1980s, acquiring Caremoli and its Golia brand; lollipop and candy maker La Giulia; and Gelco, which specialized in jelly candies and licorice. Perfetti also developed its presence in the international markets, acquiring Belgium's Frisk in the mid-1980s and opening its first foreign factory in Greece in 1982. Through the end of the 1980s and into the 1990s, Perfetti added production sites in Turkey, India, and China, an expansion that culminated in the opening of a modern production site in Brazil in 1999.
The merger with Van Melle, which cost Perfetti EUR 966 million, provided the new company with total sales of more than EUR 1 billion. The combined operations of Perfetti and Van Melle also gave the company a particularly strong position in many of the markets in the Asian region, such as China and India, where the company held number one or two positions in several categories.
Perfetti Van Melle continued enhancing its market position, notably through the creation of new marketing alliances, such as the creation of a joint-venture distribution business with Spain's Chupa Chups for the U.K. market in 2005. Also in 2005, Perfetti Van Melle announced its plans to build a factory in Russia. By then, too, the company's continued success in the United States had led it to announce plans to nearly double the size of its Erlanger, Kentucky, site. Perfetti Van Melle looked forward to a sweet future in the 21st century.
OBJECTIVES OF THE STUDY
This project is based on the comparative study consumer behavior
towards ITC Candyman and Perfetti Van Melle. 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.
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 &
wholesalers preferences, perception and consumption of ITC Candyman
and Perfetti Van Melle. 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.
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 Perfetti Van Melle candies consumed by the people.
The data had been used to cover various aspects like consumption,
retailer’s & wholesalers preference and satisfaction regarding Candyman
and Perfetti Van Melle. In collecting requisite data and information
regarding the topic selected, I went to the retailers & wholesalers 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 & wholesalers 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.
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 & wholesalers behavior towards ITC
Candyman and Perfetti Van Melle”. 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 books.
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.
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 thoh all
necessary steps were taken to avoid the same.
DATA ANALYSIS AND INTERPRETATION
ANALYSIS OF THE STUDY
SALE OF THE CANDIES
Table No: 1
Sale of the Candies Yes No
Number of
Respondents
95 5
Yes No0
20
40
60
80
100
95
5
Number of Respondents
CHART No.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.
BRAND PREFERENCE
Table No: 2
BRANDS PREFERENCE BY CONSUMERS
Perfetti 67
ITC Candyman 28
PREFERENCE BY CONSUMERS0
10
20
30
40
50
60
70
67
28Perfetti
ITC Candyman
Chart No: 2
From the above analysis of given sample of 95 respondents who sell
candies it is concluded that only 67 people prefer to sell Perfetti while 28
people likes to sell ITC Candyman.
PURCHASE OF CANDIES
PURCHASE OF ITC CANDYMAN
Table No.3
Sub Brands % of respondentFruitee Fun 42
Natkhat Mango 48Maha Mango 38
Eclairs 62Cofitino 52
Toffichoo 59Minto fresh 56
42
48
38
6252
59
56
% of respondent
Fruitee FunNatkhat MangoMaha MangoEclairsCofitinoToffichooMinto fresh
From the above analysis of given sample of respondents who eat ITC
Candyman candies it is concluded that mostly people has purchased
Eclairs sub-brand of ITC Candyman while fruitee fun is least purchased by
the people.
PURCHASE OF PERFETTI
Table No.4
Sub Brands % of respondentAlpenliebe 89
Center Fresh 82Fruit Tella 56
Mentos 67Chlor mint 49Chocoliebe 36
Cofitos 53
Alpenliebe
Center Fresh
Fruit Tella
Mentos
Chlor mint
Chocoliebe
Cofitos
0 10 20 30 40 50 60 70 80 90 100
89
82
56
67
49
36
53
% of respondent
% of respondent
Chart No.4
From the above analysis of given sample of respondents who eat perfetti
candies it is concluded that mostly all sub-brands are purchased by people
but top most is Alpenliebe while chocoliebe is least purchased by people.
FORM PREFERENCE
Table No.5
FORM OF CANDY NUMBER OF RESONDENTS
HARD 30
NUTTIES 21
CRUNCHY 26
CHEW 18
30
21
26
18
NUMBER OF RESONDENTS
HARDNUTTIESCRUNCHYCHEW
Chart No.5
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 No: 6
PACK SIZE NUMBER OF RESPONDENTS
POLLY BAG 28
JAR 48
JUMBO JAR 19
POLLY BAG JAR JUMBO JAR0
10
20
30
40
50
60
28
48
19
NUMBER OF RESPONDENTS
NUMBER OF RE-SPONDENTS
Chart No.6
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: 7
PROMOTIONAL OFFERS NUMBER OF RESPONDENTS
FREE GIFTS 52
PRICE OFFER 23
ANY OTHER 20
52
23
20
NUMBER OF RESPONDENTS
FREE GIFTSPRICE OFFER ANY OTHER
Chart No.7
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: 8
FACTORS NUMBER OF
RESPONDENTS
ADVERTISEMENT 67
SUGGESTION FROM CUSTOMERS 17
ATTRACTIVE DISPLAY 12
SALESMAN ADVICE 14
BRAND AMBASSADORS 10
INGREDIENTS 28
ADVERTIS
EMEN
T
SUGGES
TION FR
OM CUSTOMER
S
ATTRACTIV
E DISP
LAY
SALES
MAN ADVICE
BRAND AMBASSADORS
INGREDIEN
TS0
20
40
60
67
17 12 14 1028
NUMBER OF RESPONDENTS
NUMBER OF RE-SPONDENTS
Chart No.: 8
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 No: 9
MEDIA OF ADVERTISEMENT NUMBER OF RESPONDENTS
TELEVISION 75
NEWSPAPERS 10
BROCHURES 5
HOARDING 8
DISPLAY 25
TELEV
ISION
NEWSP
APERS
BROCHURES
HOARDING
DISPLA
Y0
1020304050607080
75
10 5 825
NUMBER OF RESPONDENTS
NUMBER OF RE-SPONDENTS
Chart No: 9
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 No: 10
FREQUENCY OF
CONSUMPTION
NUMBER OF RESPONDENTS
ONCE IN A FORTNIGHT 16
DAILY 17
WEEKLY 39
MONTHLY 18
QUARTERLY 5
ONCE IN A FORTNIGHT
DAILY
WEEKLY
MONTHLY
QUARTERLY
0 5 10 15 20 25 30 35 40
16
17
39
18
5
NUMBER OF RESPONDENTS
NUMBER OF RE-SPONDENTS
Chart: 10
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 No: 11
PRICE OF CANDY NUMBER OF RESPONDENTS
BELOW 25paise 6
25paise-50paise 23
50paise-Rs1 51
Rs1-Rs2 4
ABOVE Rs2 11
BELOW
25p
aise
25pa
ise-5
0pais
e
50pa
ise-R
s1
Rs1-R
s2
ABOVE R
s2
0102030405060
6
23
51
411
NUMBER OF RESPONDENTS
NUMBER OF RE-SPONDENTS
Chart No: 11
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: 12
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
26
24
45
NUMBER OF RESPONDENTS
POSTPONE YOUR PURCHASESWITCH OVER TO OTHER BRANDSGO TO OTHER SHOP FOR SEARCH OF PREFERED BRAND
Chart: 12
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.
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.
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 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.
3. 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.
4. ITC's Agri-Business is one of India's largest exporters of agricultural products.
5. 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:
2. 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.
3. 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:
2. Core brands such as Aashirwaad, Mint-o, Bingo! , Candy man , Sun Feast (and others) can be developed using strategies of market development, product development and marketing penetration.
3. ITC is moving into new and emerging sectors including Information Technology, supporting business solutions.
4. 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.htmITC 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 fragrances under their Wills brand.
THREATS:
3. The obvious threat is from competition, both domestic and international.
4. 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.
5. 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.
6. Duplicate items are available in abundance at much lesser rates. This
affects the company financially and adversely affects its goodwill.
SUGGESTIONS AND RECOMMENDATIONS
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.
ITC CANDYMAN should concentrate on its taste as people are least
satisfied with it .
People are unsatisfied with the quality 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 perfetti. It is observed that overall
mostly retailers like to buy Perfetti candies rather than candyman. 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 and quality so they
are going towards alpenliebe and center fresh (chewing gum) due to
its taste.
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.
QUESTIONNAIRE
QUESTIONNAIRE ON RETAILER & WHOLESELLER’S
PREFERENCE TOWARDS ITC CANDYMAN AND PERFETTI
PERSONAL DETAILS
Name:
Address:
Gender:
Phone Number:
Marital status:
Education:
Profession:
Que1. Do you sell candies?
Yes No
Que2. Which brand of candy do you prefer?
ITC Candyman Perfetti
Que3. Which sub-brand you have purchased?
ITC Candyman Perfetti
Cofitino Alpenliebe
Natkhat Mango fruit teela
Fruitee Fun Center fresh
Mint-o-Fresh Mint Candy
Eclairs Chocoliebe
Que4. Rank the sub-brands of candies according to your preference? (1 for most preferred)
ITC Candyman Perfetti
Cofitino Alpenliebe
Natkhat Mango fruit teela
Fruitee Fun Center fresh
Mint-o-Fresh Mint Candy
Eclairs Chocol
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
Price
Quality
Packaging
Form
Brand
Image
Color
Shape
Quantity
Que6. Which form of a candy do you sell?
Hard Nutties
Crunchy Chew
Que7. How much are you satisfied with the following factors in your preferred candy? (Tick in the desired column)
Factors Very Satisfied
Satisfied Normal Least Satisfied
Can’t Say
Flavor/taste
Price
Quality
Packaging
Form
Brand
Image
Color
Shape
Quantity
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
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 Daily
Weekly Monthly
Quarterly
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?
THANKS
BIBIOGRAPHY
1. BOOKS/MAGAZINES REFFERED:
Marketing Management by “Philip kotler”
Business world
2. WEBSITES REFFERED:
http://en.wikipedia.org
http://www.itcportal.com
