Download - Amrita Project
ITC Limited, LucknowSummer Training Project Report Submitted towards Partial Fulfillment
of the Degree of requirements for the award of degree of
“Master of Business Administration” Of
GAUTAM BUDDHA TECHNICAL UNIVERSITY,
LUCKNOW
Submitted by :-
AMRITA SINGH
(Roll No.0940870005)
Under Guidence Of :-
Mr.Satyendra Singh Ms Arti Kkatnani
Chandra Mauli Institute Of Management Sciences & Technology
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GORAKHPUR (U.P)(CODE – 408)
DECERATION
I, Amrita Singh, a bonafide student of the CHANDRA MAULI
INSTITUTE OF MANAGEMENT SCIENCES &
TECHNOLOGY.GORAKHPUR,hereby, declare that the work
tittled develop an understanding of frontline capability development practices of itc
company of India so that the industry best practice can be adopted by ITC presented genuine
to the best of my knowledge.
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Amrita Singh
ACKNOWLEDGEMENT
From this acknowledgement, I want to say thanks to persons who helped me directly or
indirectly in shaping the present study. I find myself unable to re-compensate without the help
provided by these elite personalities, through my pen picture. May God help them in all times
of life!
I wish to express at outset my deep sense of gratitude to Mr. V Venugopal, Branch Manager,
ITC Limited, Lucknow for providing me opportunity to work upon the challenging and relevant
Project. I would also like to thank Mr. Saurabh Jain, Asst. Manager, GR1, ITC Limited, Lucknow
who has showered the best guidance upon me.
The successful completion of this project entitled “To develop an understanding of frontline
(salesman) capability development practices of ITCcompany of India, so that the
industry best practices can be adopted by ITC” was possible because of help and cooperation
from Branch Office, ITD Marketing, ITC LTD, Lucknow. I would like to extend my sincere thanks
to Mr. Satyendra Singh (Area Executive, ITC Lucknow) for his kind co-operation and providing
me with required data and information and also offered his precious counsel.
With profound pleasure and privilege, I express my deep gratitude to all those respondents
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whom I visited to carry out this research in order to collect information and who patiently
delivered the necessary information.
Gratitude will always remain to my parents, friends, and Prof. R S Singh, Director, Chandramauli
Institute of Management, Science and Technology, Gorakhpur, and other faculties without their
blessings and guidance this project would not have been a success. Finally, I would like to thank
my family members for their understanding and help while I was working on this project.
(Amrita Singh)
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PREFACE
The Consumer is king; finally eighteen years after the liberalization of India's economy began
the marketplace has, suddenly, become frighteningly competitive. Not only have new players
including a host of powerful translation, stormed into the country, there are more brands
available than ever before in every segment of every market. Befittingly, for the time in above
50 years since Independence, delivering the final verdict will be the customer who is already
finicky about what will buy, in future, only that which meets her every desire. This demands
more intimate understanding of the consumer by the smart companies'.
Retailers are direct interface to Consumers for almost all the companies. They are not only
pivotal for reaching various products to the End Consumers, but also plays an important role in
purchase decision and help us understand the needs of consumer.
Our Frontline Force is in direct contact with Retailers and sometimes consumers as well. So he
must be well equipped to win the confidence of retailer and to build lasting relationship with
him as well. Being well equipped helps our Frontline Sales force to Make Available our
products in desired form and freshness at right outlets, i.e. Selling In. Also he should be aware
of Selling Out techniques.
FMCG Companies conduct Training Program and Refresher Modules for Frontline Sales Force so
as to enable them achieve competitive Edge in Market.
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My Project is based on Capability Development Programs for Frontline Sales Force, adapted by
Various FMCG companies’ (vis-à-vis ITC Limited), different kinds of training programs conducted
for Frontline, Mechanisms of such programs, and Systems and processes w.r.t. capability
development.
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Contents
Acknowledgement
Preface
Chapter-I
INTRODUCTION OF TOPIC
PROJECT OBJECTIVE
RESEARCH METHODOLOGY
Chapter-II
COMPANY PROFILE
Chapter-III
DATA ANALYSIS
Chapter-IV
FINDINGS
Chapter-V
CONCLUSION
Chapter-VI
SUGGESTION
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ANNEXURE
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Introduction
Human Resource development has in recent years became the focus of attention of planners
policy makers and administrators. Human resource development may be defined as the process
of increasing the knowledge,skill and capacities of people. It is important not only for an
enterprise but for the nation to develop in human resources. A country can develop only when
its human resources are developed through health nutrition education training and research. At
the enterprise level employee ,salesmen training and executive development are main area of
human resources development.
Concept of Training
Training is the process of increasing the knowledge and skills for doing a particular job. It is an
organized procedure by which people learn knowledge and skill for a definite purpose. The
purpose if training is basically to bridge the gap between the job requirements and present
competence of an salesmen need. Training amied at improving the behavior and performance
of a person. It is a never ending or a continous process. Training is closely related with
education and development but need to be differentiated from these terms.
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Benefits of Training to the Salesmen
Training is useful to salesmen in the following ways:-
• Self- confidence: Training helps to improve the self-confidence of an salesmen. It
enables him to approach and perform his job with enthusiasm.
• High Earning: Trained salesmen can perform better and there by can earn more.
• Safety: Training helps an salesmen to use various safety devices. He can handle
machines safely and become less prone to accidents.
• Adaptability: Training enables an salesmen to adapt changes in work procedures and
methods.
• Promotion: Through training salesmen can develop himself and earn quick promotions.
• New Skills: Training develops new knowledge and skills among salesmen.The new skills
are avalueable assest of an salesmen and remain permanently.
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Objectives of Training
The main objectives are as follows:
• To impart to new entrants the basic knowledge and skills required foe efficient
performance of definite task.
• To assist the employees to function effectively in their present positions by exposing
them to the latest concept, information and techniques and developing the skills they
would require in their particular field.
• To build up a second line of component officers and prepare them to occupy more
responsible positions.
• To broaden the minds of senior managers through interchange of experience within
and outside so as to correct the narrow outlook caused due to over specialization.
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PROJECT OBJECTIVE
PROJECT TITLE:
To develop an understanding of frontline capability development
practices of ITC company.
THE STUDY SHALL ENTAIL THE FOLLOWING:
• To measure the awareness level of employee about training programme for
ITC.
• To find the percentage of employee who are satisfy with training
programme of ITC.
• To find percentage of employee who really think that training provided to
them is enhancing their ability.
• To find out problem of employees in availing training. To find satisfaction
level of salesmen regarding training.
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Research Methodology
Data for survey is collected from
Primary source
• Visiting the organization (observation techniques)
• Using structured questionnaire for the existing customer and for general
public.
Secondary source
• Company Broachers
• Company Website
• Internet
Type of Sampling:
Stratified random sampling technique is used for collecting the primary data.
For the questionnaire:
I have used the methodology for the questionnaire close ended.
Close ended Method:
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• Dichotomous
• Multiple choice
Sample Survey:
The respondents should be as representative of the total population as possible
in order to produce a miniature cross section. The selected respondents constitute what is
technically called a SAMPLE and the selection process is called SAMPLING TECHNIQUE.
RESEARCH INSTRUMENT
Questionnaire:
Questionnaire are formal set of questions prepared to collect the required
information. This one of the most effective and popular technique used in surveys. However,
one has to be careful while drawing up questionnaire. Before deciding on the questions, it is
important to understand the exact information needed and who shouldbe interviewed.
The contents, phrasing and the sequence of the
questionnaire should also be clear and unambiguous. The knowledge level of the target of
respondents should be kept in the mind while drawing up the questions.
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ITC Profile
ITC is one of India's foremost private sector companies with a market capitalization of over US $
30 billion and a turnover of US $ 6 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
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Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.
As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a
commitment beyond the market". In his own words: "ITC believes that its aspiration to create
enduring value for the nation provides the motive force to sustain growing shareholder value.
ITC practices this philosophy by not only driving each of its businesses towards international
competitiveness but by also consciously contributing to enhancing the competitiveness of the
larger value chain of which it is a part."
ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers
of growth anchored on its time-tested core competencies: unmatched distribution reach,
superior brand-building capabilities, effective supply chain management and acknowledged
service skills in hoteliering. 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
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'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 Ltd, provides IT
services and solutions to leading global customers. ITC Infotech has carved a niche for itself by
addressing customer challenges through innovative IT solutions.
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 26,000 people at more than 60 locations across India. The Company
continuously endeavors to enhance its wealth generating capabilities in a globalising
environment to consistently reward more than 3,91,000 shareholders, fulfill the aspirations of
its stakeholders and meet societal expectations. This over-arching vision of the company is
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expressively captured in its corporate positioning statement:
“Enduring Value. For the Nation. For the Shareholder."
History and Evolution
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India
Limited. As the Company's ownership progressively Indianised, the name of the Company was
changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited
in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business
portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information
Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle
Retailing, Education & Stationery and Personal Care - the full stops in the Company's name
were removed effective September 18, 2001. The Company now stands rechristened 'ITC
LTD’
The Company’s 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
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Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more
ways than one. It was to mark the beginning of a long and eventful journey into India's future.
The Company's headquarter building, 'Virginia House', which came up on that plot of land two
years later, would go on to become one of Kolkata's most venerated landmarks.
Though the first six decades of the Company's existence were primarily devoted to the growth
and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the
beginnings of a corporate transformation that would usher in momentous changes in the life of
the Company.
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business. It is today India's most sophisticated packaging house.
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
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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
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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.
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In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch
of Expressions range of greeting cards. A line of premium range of notebooks under brand
“Paperkraft” was launched in 2002. To augment its offering and to reach a wider student
population, the popular range of notebooks was launched under brand “Classmate” in 2003.
“Classmate” over the years has grown to become India’s largest notebook brand and has also
increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the
launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the
“Classmate” brand. In 2008, ITC repositioned the business as the Education and Stationery
Products Business and launched India's first environment friendly premium business paper
under the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the premium executive
stationery and office consumables segment. Paperkraft entered new categories in the office
consumable segment with the launch of Textliners, Permanent Ink Markers and White Board
Markers in 2009.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores
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later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening
wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand,
John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most
premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from
buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To
mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to
consumers.
In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC
Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today
ITC Infotech is one of India’s fastest growing global IT and IT-enabled services companies and
has established itself as a key player in offshore outsourcing, providing outsourced IT solutions
and services to leading global customers across key focus verticals - Manufacturing, BFSI
(Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT
(Travel, Hospitality and Transportation) and Media & Entertainment.
ITC's foray into the Foods business is an outstanding example of successfully blending multiple
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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 eight years, the Foods business has grown to a significant size
with over 200 differentiated products under six distinctive brands, with an enviable distribution
reach, a rapidly growing market share and a solid market standing.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in the Safety Matches initiative. ITC now markets popular
safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.
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.
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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.
The ITC Way
ITC is a board-managed professional company, committed to creating enduring value for the
shareholder and for the nation. It has a rich organisational culture rooted in its core values of
respect for people and belief in empowerment. Its philosophy of all-round value creation is
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backed by strong corporate governance policies and systems.
ITC’s corporate strategies are :
o Create multiple drivers of growth by developing a portfolio of world class businesses
that best matches organisational capability with opportunities in domestic and export
markets.
o Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
o Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
o Ensure that each of its businesses is world class and internationally competitive.
o Enhance the competitive power of the portfolio through synergies derived by
blending the diverse skills and capabilities residing in ITC’s various businesses.
o Create distributed leadership within the organisation by nurturing talented and
focused top management teams for each of the businesses.
o Continuously strengthen and refine Corporate Governance processes and systems to
catalyse the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.
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The ITC Leadership
Flowing from the concept and principles of Corporate Governance adopted by the Company,
leadership within ITC is exercised at three levels. The Board of Directors at the apex, as trustee
of shareholders, carries the responsibility for strategic supervision of the Company. The
strategic management of the Company rests with the Corporate Management Committee
comprising the wholetime Directors and members drawn from senior management. The
executive management of each business division is vested with the Divisional Management
Committee (DMC), headed by the Chief Executive. Each DMC is responsible for and totally
focused on the management of its assigned business. This three-tiered interlinked leadership
process creates a wholesome balance between the need for focus and executive freedom, and
the need for supervision and control.
The ITC Vision & Mission
Vision
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Sustain ITC's position as one of
India's most valuable corporations
through world class performance,
creating growing value for the Indian
economy and the Company’s
stakeholders
Mission
To enhance the wealth generating
capability of the enterprise in a
globalising environment,
delivering superior and sustainable
stakeholder value
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Core Values
TC's Core Values are aimed at developing a customer-focused, high-performance organisation
which creates value for all its stakeholders:
Trusteeship
As professional managers, we are conscious that ITC has been given to us in "trust" by all our
stakeholders. We will actualise stakeholder value and interest on a long term sustainable basis.
Customer Focus
We are always customer focused and will deliver what the customer needs in terms of value,
quality and satisfaction.
Respect For People
We are result oriented, setting high performance standards for ourselves as individuals and
teams.
We will simultaneously respect and value people and uphold humanness and human dignity.
We acknowledge that every individual brings different perspectives and capabilities to the team
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and that a strong team is founded on a variety of perspectives.
We want individuals to dream, value differences, create and experiment in pursuit of
opportunities and achieve leadership through teamwork.
Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.
Innovation
We will constantly pursue newer and better processes, products, services and management
practices.
Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit of our
goals, we will make no compromise in complying with applicable laws and regulations at all
levels.
ITC BUSINESSES
1. FMCG
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It is ITC's strategic intent to secure long-term growth by synergising and blending the diverse
pool of competencies residing in its various businesses to exploit emerging opportunities in the
FMCG sector.
The Company’s institutional strengths – deep understanding of the Indian consumer, strong
trademarks, deep and wide distribution network, agri-sourcing skills, packaging know-how and
cuisine expertise – continue to be effectively leveraged to rapidly grow the new FMCG
businesses.
Over the last few years, ITC has rapidly scaled up presence in its newer FMCG businesses
comprising Branded Packaged Foods, Lifestyle Retailing, Education and Stationery products,
Personal Care products, Safety Matches and Incense Sticks (Agarbatti) with Segment Revenues
growing at an impressive compound annual growth rate of 38% during the last 5 years.
The Company’s unwavering focus on quality, innovation and differentiation backed by deep
consumer insights, world-class R&D and an efficient and responsive supply chain will further
strengthen its leadership position in the Indian FMCG industry.
Cigarettes
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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
relevant to the changing attitudes and evolving socio economic profile of the
country. This strategic focus on the consumer has paid ITC handsome dividends.
ITC's pursuit of international competitiveness is reflected in its initiatives in the
overseas markets. In the extremely competitive US market, ITC offers high-quality,
value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a
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key player in the GCC markets through growing volumes of its brands.
ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger,
Saharanpur and Kolkata. These factories are known for their high levels of quality,
contemporary technology and work environment.
Foods
ITC 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 packaged foods business is an ideal avenue to leverage ITC's proven strengths in
the areas of hospitality and branded cuisine, contemporary packaging and sourcing
of agricultural commodities. ITC's world famous restaurants like the Bukhara and
the Dum Pukht, nurtured by the Company's Hotels business, demonstrate that ITC
has a deep understanding of the Indian palate and the expertise required to
translate this knowledge into delightful dining experiences for the consumer. ITC has
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stood for quality products for over 100 years to the Indian consumer and several of
its brands are today internationally benchmarked for quality.
The Foods business carries forward this proud tradition to deliver quality food
products to the consumer. All products of ITC's Foods business available in the
market today have been crafted based on consumer insights developed through
extensive market research. Apart from the current portfolio of products, several
new and innovative products are under development in ITC's state-of-the-art
Product Development facility located at Bengaluru.
Leadership in the Foods business requires a keen understanding of the supply chain
for agricultural produce. ITC has over the last 100 years established a very close
business relationship with the farming community in India and is currently in the
process of enhancing the Indian farmer's ability to link to global markets, through
the e-Choupal initiative, and produce the quality demanded by its customers. This
long-standing relationship is being leveraged in sourcing best quality agricultural
produce for ITC's Foods business.
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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 6 brands:
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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 - a
range of premium shampoos and shower gels. Wills Lifestyle has also introduced Wills
Signature designer wear, designed by the leading designers of the country.
With a distinctive presence across segments at the premium end, ITC has also
established John Players as a brand that offers a complete fashion wardrobe to the
male youth of today. With its brands, ITC is committed to build a dominant presence in
the apparel market through a robust portfolio of offerings
Personal Care
In line with ITC's aspiration to be India's premier FMCG company, recognised for its
world-class quality and enduring consumer trust, ITC forayed into the Personal Care
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business in July 2005. In the short period since its entry, ITC has already launched an
array of brands, each of which offers a unique and superior value proposition to
discerning consumers. Anchored on extensive consumer research and product
development, ITC's personal care portfolio brings world-class products with clearly
differentiated benefits to quality-seeking consumers.
ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di
Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer
response and is being progressively extended nationally.
ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene
and benchmarked manufacturing practices. Contemporary technology and the latest
manufacturing processes have combined to produce distinctly superior products which
rank high on quality and consumer appeal.
Extensive insights gained by ITC through its numerous consumer engagements have
provided the platform for its R&D and Product Development teams to develop superior,
differentiated products that meet the consumer's stated and innate needs. The product
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formulations use internationally recognised safe ingredients, subjected to the highest
standards of safety and performance
Education and Stationery
ITC made its entry to the education and stationery business with its Paperkraft brand in
the premium segment in 2002; and later expanded into the popular segment with its
Classmate brand in 2003. By 2007, Classmate became the largest Notebook brand in the
country. Together, Classmate and Paperkraft offer a range of products in the Education
& Stationery space to the discerning consumer, providing unrivalled value in terms of
product & price.
Classmate and Paperkraft have become a natural extension of the consumer.
Meticulous understanding of consumer needs helped creating a relevant and
comprehensive portfolio satisfying the needs of different sets of consumers.
ITC is the manufacturer of India's first Ozone treated environment friendly Elemental
Chlorine Free (ECF) pulp, paper and paperboard. It blends its knowledge of image
processing, printing and conversion garnered from Packaging & Printing Business with
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its brand building and trade marketing & distribution strengths resident in its FMCG
business to offer superior value products to consumers.
Paperkraft Business paper and the papers used in Classmate and Paperkraft notebooks
are superior in quality and environment-friendly. Other offerings available in education
and Stationery range are safe and certified non-toxic.
Safety Matches
As part of its strategic initiative to create multiple drivers of growth in the FMCG sector,
ITC commenced marketing safety matches sourced from the small-scale sector. The
Matches business leverages the core strengths of ITC in marketing and distribution,
brand building, supply chain management and paperboard & packaging to offer Indian
consumers high quality safety matches.
ITC’s range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim
Mega and Aim Metro. With differentiated product features and innovative value
additions, these brands effectively address the needs of different consumer segments.
The Aim brand is the largest selling brand of Safety Matches in India. ITC also exports
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regular and premium safety matches brands to markets such as Middle East, Africa and
the USA. The successful acquisition of Wimco Ltd. by Russell Credit Ltd., a wholly owned
subsidiary of ITC has consolidated the market standing of the Company's Matches
business through synergy benefits derived through combined portfolio of offerings,
improved servicing of proximal markets and freight optimization. Through its
participation, ITC aims to enhance the competitiveness of the small and medium scale
sectors through its complementary R&D based product development and marketing
strengths, especially the breadth and depth of the Company's trade marketing and
distribution.
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. This Business leverages the core strengths of ITC
in nation-wide distribution and marketing, brand building, supply chain management,
manufacture of high quality paperboards and the creation of innovative packaging
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solutions to offer Indian consumers high quality Agarbattis. With its participation in the
business, ITC aims to enhance the competitiveness of the small and medium scale
sectors through its complementary R&D based product development and strengths in
trade marketing and distribution.
Mangaldeep Agarbattis are available in a wide range of fragrances like Rose, Jasmine,
Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.
Durbar Gold is a new offering from Mangaldeep launched in Andhra Pradesh and has
received wide consumer acceptance. The premium range from ITC, Mangaldeep
Spriha
has two offerings, Pratiti and Sarvatra and are specially hand rolled by Cottage
Industries, Sri Aurobindo Ashram, Puducherry. Cottage Industries, Puducherry, has been
accredited with IFAT certification, which is an internationally recognized benchmark for
fair trade practices.
Mangaldeep is also available in 3-in-1 and 5-in-1 packs giving the consumer a choice of
multiple fragrances in a single pack. Mangaldeep appeals to a cross-section of
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consumers with offerings at various price points. These agarbattis are available in
innovative 'Fragrance-Locked' packaging. 'Fragrance locking' is a unique concept of
packaging which retains the fragrance for a longer period and helps in "Completing the
Purity of Prayer". Mangaldeep is fast emerging as the only national brand in an industry
dominated by multiple local brands.
Mangaldeep Dhoop, made with Natural Ingredients, is available in specific markets and
is fast emerging as a key player in North India.
Recently, Mangaldeep launched the Premium range of Sarvatra Flora agarbattis.
Sarvatra flora agarbattis are a wet type of agarbattis, different from the normal
agarbattis. These agarbattis have a natural base, are brownish in colour and offer a
wholesome and differentiated fragrance experience to the consumer. Sarvatra Flora
Agarbattis are now available in select markets.
The Business is currently working on various exciting new offerings to the consumers
and is planning to launch them in the near future.
In line with ITC's Triple Bottom Line philosophy of every business contributing to the
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nation's economic, environmental and social capital, Mangaldeep agarbattis are
manufactured by small scale and cottage units, providing livelihood opportunities for
more than 8500 people. Six out of 11 Mangaldeep Agarbatti manufacturing units are ISO
9000 certified. Mangaldeep ASHA (Assistance in Social Habilitation through Agarbattis)
is an ITC initiative to improve the quality of raw agarbatti production and provide better
value realization for women rollers. Under the project, ITC has extended support to
NGOs in states and like Bihar, Tripura, Tamil Nadu, who are setting up agarbatti units,
training village women in rolling agarbattis and employing them in these units. In the
latest initiative, ITC signed a MoU with Orissa Government run Orissa Rural
Development and Marketing Society (ORMAS) for marketing raw incense sticks in the
state- a move that is expected to provide employment opportunities to over 3000 rural
women.
2.Hotels
ITC Welcomgroup, India's premier chain of luxury hotels was launched on October 18, 1975,
with the opening of its first hotel - Chola Sheraton in Chennai. Since then the ITC-Welcomgroup
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brand has become synonymous with Indian hospitality. With over 100 hotels in more than 80
destinations, ITC-Welcomgroup has set new standards of excellence in the hotel industry in
Accommodation, Cuisine, Environment and Guest Safety.
A leader in the premium hospitality segment, ITC-Welcomgroup Hotels have had the privilege
of hosting world leaders, Heads of State and discerning guests from across the world and within
As one of India's most dynamic hospitality chains, ITC-Welcomgroup has set standards for
excellence in the hotel industry by pioneering the concept of branded accommodation. The
chain has developed three brands of accommodation ITC One', 'Towers' and the 'Executive
Club' to differentiate between the needs of various travelers and provide high levels of service.
First to introduce branded cuisine, its restaurants Bukhara, Dakshin and DumPukht are
renowned for their delicious and authentic Indian cuisines from the different regions of India.
ITC-Welcomgroup also showcases international cuisine in its specialty restaurants West View
and Pan Asian.
ITC-Welcomgroup has strategically customized its hotels and appropriately categorized them
to fulfill the service and budgetary needs of travellers. With its exclusive strategic tie up with
Starwood for its top of the line premium brand the 'Luxury Collection', the group is
strengthening its international marketing stance. ITC-Welcomgroup was also instrumental in
bringing the 'Sheraton' brand to India, with which it enjoyed a three-decade exclusive
partnership. ITC-Welcomgroup's properties are classified under four distinct brands:
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ITC Hotels - Luxury Collection
In 2007, ITC-Welcomgroup entered a new phase in its collaboration with Starwood Hotels &
Resorts. ITC-Welcomgroup now has an exclusive tie-up with Starwood in bringing its premium
brand, the 'Luxury Collection', to India. These are super deluxe and premium hotels located at
strategic business and leisure locations. The seven hotels which are part of this collection are:
ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar in Kolkata, ITC Grand Central in
Mumbai, ITC Windsor & ITC Royal Gardenia in Bengaluru, ITC Kakatiya in Hyderabad and ITC
Mughal in Agra.
WelcomHotels offer five-star hospitality for the discerning business and leisure traveller.
Currently there are three hotels under this brand namely, WelcomHotel Rama International
Aurangabad, WelcomHotel Vadodara and WelcomHotel Grand Bay Vishakhapatnam. Four
other ITC-Welcomgroup Sheraton Hotels – Sheraton Rajputana Hotel Jaipur, Sheraton Chola
Hotel Chennai, Sheraton Park Hotel and Towers, Chennai and Sheraton New Delhi offer warm,
comforting services to the global traveller and a chance to connect.
Fortune Hotels operates mid-market to upscale properties in the first-class, full-service
business hotel segment all over India, in major metros, mini metros, state capitals and business
47
towns, promising business and leisure travelers a wide choice of destinations and
accommodation. Fortune Hotels currently has hotels operating in Ahmedabad, Chennai,
Darjeeling, Gurgaon, Indore, Jaipur, Jammu, Jamshedpur, Kolkata, Ludhiana, Madurai, Navi
Mumbai, Ooty, Port Blair, Pune, Tirupati, Trivandrum, Vapi, Vijayawada, Vishakhapatnam,
Hyderabad, Lavasa, Noida, Manipal, Bengaluru, Mussoorie, Goa, Thane & Gandhinagar, while
several more hotels are expected to be commissioned soon in other key locations in India.
WelcomHeritage brings together a chain of palaces, forts, havelis and resorts that offer a
unique experience. WelcomHeritage endeavours to preserve ancient royal homes and the
historical Indian grandeur and opulence for the future Indian generations. WelcomHeritage
provides a fine range of hotel services inside these architectural legacies present in Rajasthan,
Madhya Pradesh, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, West Bengal, Karnataka,
Tamil Nadu, Punjab, Haryana, Assam, Sikkim, Meghalaya, Arunachal Pradesh, Uttar Pradesh,
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Maharastra, Kerala, Andhra Pradesh and Puducherry.
WelcomEnviron
is ITC-Welcomgroup's vision for a green world. It's a multi-faceted programme started in order
to propagate environmental causes in the cities where ITC-Welcomgroup's hotels are located.
With the guiding principle of 'Reduce, Reuse and Recycle', each hotel has its own programme,
encompassing local participation, creating awareness among employees and internal
conservation.
3. Paperboards and Specialty Papers
ITC's Paperboards and Specialty Papers Division is India's largest, technologically advanced and
most eco-friendly, paper and paperboards business. The business caters to a wide spectrum of
packaging, graphic, communication, writing, printing and specialty paper requirements through
its four world-class manufacturing units, 6 sales offices and a network of more than 50 dealers
in India, along with an international trade network of 15 distributors / agents.
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Having pioneered many specialty applications like cigarette tissues, opaque papers, food grade
packaging boards and tele-card boards, ITC's Paperboards and Specialty Papers business enjoys
market leadership in the value-added paperboards segment, and also has a significant share of
the Indian fine papers market. It is the largest exporter of coated boards from India.
4. Agri- Commodities & Rural Services
ITC's pre-eminent position as one of India's leading corporates in the agricultural sector is based
on strong and enduring farmer partnerships that has revolutionized and transformed the rural
agricultural sector. A unique rural digital infrastructure network, coupled with deep
understanding of agricultural practices and intensive research, has built a competitive and
efficient supply chain that creates and delivers immense value across the agricultural value
chain. One of the largest exporters of agri products from the country, ITC sources the finest of
Indian Feed Ingredients, Food Grains, Edible Nuts, Marine Products, Processed Fruits, Coffee &
Spices.
ITC's Agri Business Division is the country's second largest exporter of agri-products with
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exports of over Rs. 1000 Crores (Rs. 10 billion). Its domestic sales of agri-products are in excess
of Rs. 1500 Crores (Rs. 15 billion). It currently focuses on exports and domestic trading of:
Feed Ingredients - Soyameal
Food Grains - Rice (Basmati & Non Basmati), Wheat, Pulses
Edible Nuts - Sesame Seeds, HPS Groundnuts, Castor oil
Marine Products - Shrimps and Prawns
Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic Fruit
Products, Fresh Fruits
Coffee & Spices - Coffee, Black Pepper, Chilly, Turmeric, Ginger, Celery and other
Seed Spices
Farmer empowerment through e-Choupals
ITC's unique strength in this business is the extensive backward linkages it has established with
the farmers. This networking with the farming community has enabled ITC to build a highly cost
effective procurement system. ITC has made significant investments in web-enabling the Indian
farmer. Christened 'e-Choupal', ITC's empowerment plan for the farmer centres around
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providing Internet kiosks in villages. Farmers use this technology infrastructure to access on-line
information from ITC's farmer-friendly website www.echoupal.com. Data accessed by the
farmers relate to the weather, crop conditions, best practices in farming, ruling international
prices and a host of other relevant information.
e-Choupal today is the world's largest rural digital infrastructure.
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 4 million farmers. Currently, the
'e-Choupal' website provides information to farmers across the 10 States of Madhya Pradesh,
Haryana, Uttarakhand, Uttar Pradesh, Rajasthan, Karnataka, Maharashtra, Andhra Pradesh,
Kerala and Tamil Nadu. Over the next 5 years it is ITC's Vision to create a network of 20,000 e-
Choupals, thereby extending coverage to 100,000 villages representing one sixth of rural India.
Supporting the e-Choupal network are ITC's procurement teams, handling agents and
contemporary warehousing facilities across India, enabling its Agri Business to source identity-
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preserved merchandise even at short notice. ITC's processors are handpicked, reliable high
quality outfits who ensure hygienic processing and modern packaging. Strict quality control is
exercised at each stage to preserve the natural flavour, taste and aroma of the various agri
products.
Choupal Saagar
Following the success of the e-Choupal, the Company launched Choupal Saagar, a physical
infrastructure hub that comprises collection and storage facilities and a unique rural
hypermarket that offers multiple services under one roof. This landmark infrastructure, which
has set new benchmarks for rural consumers also incorporates farmer facilitation centres with
services such as sourcing, training, soil testing, health clinic, cafeteria, banking, investment
services, fuel station etc. 24 'Choupal Saagars' have commenced operations in the states of
Madhya Pradesh, Maharashtra and Uttar Pradesh. ITC is engaged in scaling up the rural
retailing initiative to establish a chain of 100 Choupal Saagars in the near future.
Choupal Fresh
Choupal Fresh, ITC's fresh food wholesale and retail initiative, leverages its extensive backward
53
linkages with farmers and supply chain efficiencies. It focuses on stocking fresh horticulture
produce like fresh fruits and vegetables. Five Choupal Fresh retail stores are currently
operational at Hyderabad. The company has also set up a complete cold chain for ensuring the
availability of fresh products in the market, besides directly sourcing farm fresh produce from
the farmers.
Choupal Pradarshan Khet
In line with its mission of improving the quality of life in rural India, ITC's Agri Business has
launched a flagship extension programme called 'Choupal Pradarshan Khet' (CPK) or
demonstration plots to help farmers enhance farm productivity by adopting agricultural best
practices. Started in 2005-06, the crop portfolio includes soya, paddy, cotton, maize, bajra,
wheat, gram, mustard, sunflower and potato. This initiative, has covered over 70,000 hectares
and has a multiplier impact and reaches out to 1.6 million farmers.
Processed Fruits
In line with its strategy of achieving a higher order of value capture, the business also focuses
on the value added segment, steadily enhancing its basket of offerings with several new
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products. These include frozen foods, IQF (individually quick frozen) fruits, niche products like
baby-food quality purees and high brix pulp and organic purees. ITC seeks to focus on this
segment and exploit the market opportunity for tropical fruits and fruit products, where India
has a natural advantage of growing the complete range, including exotic varieties. In Processed
Fruits category, ITC exports from HACCP certified plants to Western Europe, North Africa, West
Asia, Japan and North America, a wide range of Processed Fruit products made from Mango
(Alphonso, Kesar & Totapuri), Guava, Papaya and Pomegranate. ITC is the leading Indian
exporter of Organic Fruit Products certified to European (EC 2092/91) and US (NOP) Standards.
Fresh Table Grapes & Pomegranates are sourced from ITC's EUREPGAP certified farmer groups
& retailed through prominent supermarkets like Sainsbury's and Albert Heijn in Europe and
Daiei in Japan.
Marine Products
ITC has been a significant exporter of seafood from India since 1971. It exports frozen as well as
cooked shrimps and other seafood products to Japan, USA and Europe. Its well-known brands
include Gold Ribbon, Blue Ribbon, Aqua Kings, Aqua Bay, Aqua Feast and Peninsular.
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A Customer Centric Approach
ITC's Agri Business Division continues to use innovation as its core strategy to retain its position
as the one-stop shop for sourcing agri-commodities from India. Besides setting benchmarks in
quality, reliability and value-added services, ITC is a trendsetter in customer care particularly in
commodity trading. Major customers include Cargill, Marubeni, Toepfer, among others, who
source agriculture commodities and food products from India. Customers can log onto
www.itcabd.com, and readily access information on crop production and forecast, market
updates, the latest shipment status and the prevailing foreign exchange rates.
Sourcing for ITC
ITC's Agri business is progressively aligning its commodity portfolio with the sourcing needs of
the Company's Foods business to generate higher order value from its agri procurement
infrastructure. The business has commenced procurement of chipstock potatoes, one of the
critical raw materials in the manufacture of the Company's 'Bingo!' brand of potato chips. The
acquisition of Technico, an Australian company with technology leadership in the production of
early generation seed potatoes, helped the business access a ready pipeline of new high-
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yielding varieties of chipstock potato seeds.
5. Information Technology
ITC Infotech, a global IT services company, is today one of India's fastest growing IT services and
solutions providers.
Based out of a picturesque 35 acre campus in the heart of Bangalore city, ITC Infotech, through
wholly-owned subsidiaries in the UK and US, provides outsourced IT services and solutions to
leading global customers.
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.
ITC Infotech enjoys the rare advantage of having a practitioner's expertise in some of these
industry verticals, which has in part been bequeathed by parent ITC Limited, which runs market
leading businesses in these verticals. While an enterprise range of technology capabilities and
world class quality processes form the foundation of ITC Infotech's cutting-edge IT service
strength, a sharp domain focus ensures that IT and ITeS delivery always places business needs
57
ahead of technology.
ITC Infotech has carved a niche for itself as a leading global IT solutions provider by addressing
customer pain points through innovative solutions. ITC Infotech's leadership capabilities also
accrue from business critical engagements with leading organisations across five continents,
and a service delivery footprint spanning over 140 countries.
ITC Infotech conforms to the highest standards in international process quality, with ISO 27001,
ISO 9001, SEI CMM Level 5 and BS 7799 accreditations. These reflect the company's ongoing
enterprise-wide focus to ensure that every engagement, program and project delivers
international quality consistently.
Group Companies
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59
ORGANISATION CHART:
S A L E S P R O M O T I O N O F F I C E R
S A L E S T R A I N E E
A R E A E X E C U T I V E
A R E A M A N A G E R
A S S I S T A N T M A N A G E R
B R A N C H M A N A G E R
REGIONAL SALES MANAGER
D I S T R I C T M A N A G E R
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NATIONAL SALES MANAGER
GENERAL MANAGER SALES
E X E C U T I V E V I C E P R E S I D E N T
C H I E F O P E R A T I N G O F F I C E R
C H I E F E X E C U T I V E O F F I C E R
B O A R D O F D I R E C T O R
C H A I R M A N
T h e o r g a n i z a t i o n c h a r t o f I T C a s g i v e n a b o v e i s s e l f e x p l a n a t o r y o f t h e
f u n c t i o n i n g o f m a r k e t i n g a n d s e l l i n g d i v i s i o n . T h e s a l e s p e r s o n o f f i c e r i s
a t t h e b o t t o m o f t h e h i e r a r c h y c h a i n a n d r e p o r t s t o a r e a e x e c u t i v e . T h e
a r e a m a n a g e r i s t h e n r e p o r t e d b y t h e a r e a e x e c u t i v e w h o t h e n r e p o r t s t o
b r a n c h m a n a g e r . T h e r e g i o n a l m a n a g e r h e a d s t h e b r a n c h m a n a g e r , a n d
t h e n t h e d i s t r i c t m a n a g e r c o m e s n e x t i n t h e c h a i n f o l l o w e d b y t h e
g e n e r a l m a n a g e r . A f t e r t h e g e n e r a l m a n a g e r t h e e x e c u t i v e v i c e p r e s i d e n t
61
i s n e x t h i g h e r a u t h o r i t y h e a d e d b y C E O o f I T C w h o d i r e c t l y r e p o r t s t h e
b o a r d o f d i r e c t o r h e a d e d b y t h e c h a i r m a n .
ITC STRUCTURE
As stated earlier, ITC is a well-diversified company with the interests in various businesses. To
facilitate efficient running of the business, the company has spit up in to several division, which
enjoys great deal of functional autonomy. “Divisional Board” or the “Divisional Executive
Committee” depending up on its size heads each division.
Although management is vested in the Board of Directors consisting of the both Executives and
non-executive directors, most of the authorities and responsibilities have been delegated to
committee of directors which comprises of executive directors only. All of the Divisional boards
and divisional executive Committees report to Committee of directors.
The various divisions with their head quarters are as follows:
NAME PLACE
1- Corporation Headquarters (CHQ) Kolkata
2- Indian Leaf Tobacco Development Division (ILTD) Guntur
3- India Tobacco Division (ITD) Kolkata
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4- Packaging and Printing Division (PPD) Tiruvottiyur
5-ITC Bhadrachalam Paper Board Ltd. Secundrabad
6- Tribeni Tissue Division Kolkata
7- Hotels Division (HD) New Delhi
8- Export Division (ED) New Delhi
9- Agri-business Division (ABD) Hyderabad
10- Information Systems Functions (IFS) Kolkata
11- Integrated Research Center (IRC) Bangalore
12-International Travel House (ITH) Kolkata
Divisions are further broken up into component unit and branches such as etc., for example-
the hotel division holds around Marketing branches, Cigarettes factories, and Hotel properties
17 hotels under the name of Welcome Group.
PRODUCTION BRANCHES
The production branches better known as cigarette factories are situated in fourfactories, viz.
I. Kolkata (Kidderpore)
II. Bangalore
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III. Saharanpur
IV. Munger (Bihar)
V. Haridwar
Following are the subsidiaries fall under ITD:
1. Surya tobacco company
2. All India tobacco company limited
3. Élan enterprises Ltd.
4. Fortune tobacco company
5. ITC filtrona Ltd.
ITC FAMILY
ITC PAPERBOARD LIMITED
India’s largest manufacture of paper & paperboard. It is also India’s largest exporter of paper &
paperboard industry.
ITC CLASSIC FINANCE LIMITED
It is Rs. 315Cr Company which is established to offer preferred financial services & products.
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ITC AGRO-TECH LIMITED
Business processes edible oil & also moving towards consolidatig other aspects of edible oil
procurement, marketing & trading.
ITC FILTRONA LIMITED
A joint venture with filtrona international limited. UK is making available in India the latest
Cigarette filter technology including technology advance multiple filtersITC
ZENECA LIMITED
A unique partnership of two major players in agro-business, ITC with ZENECA limited UK. It
develops high quality seeds for the Indian agriculture sector.
INTERNATIONAL TRAVEL HOUSE LIMITED
One of the India’s leading travel & tour agency offering services for business & leisure travelers
throughout India, in the business of “rent a car” under the “Eurocar” brand& in the process of
setting of golf resets of International standards.
SURYA TOBACCO COMPANY LIMITED
ITC’s joint venture project in Nepal is the company’s largest private sector corporation with
brands leader in every segment. ITC has achieved the “Super star trading house” status. It
contributes over 4% of the revenue, provides 9% of the Indian agri-export & about 2% of the
company’s total export centers total tax.
INDIAN TOBACCO DIVISION
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It is India’s largest manufacture & exporter of cigarette. It has the market share of 67% of the
total cigarette market in India.
INDIAN LEAF TOBACCO DEVELOPMENT DIVISION
It’s the largest producer & exporter of tobacco in India.
ITC HOTELS LIMITED
A premier hotel chain catering to the International travelers. Its the market & operates 16
leading hotel properties under the Welcome group banner. It has the collaboration with ITC
Sheraton USA for the International marketing of the ITC hotels.
FINANCIAL POSITION
ITC Limited (ITC) offers various business operations. ITC offers its products and services
through highly diversified business mix. It includes paperboards and specialty papers,
cigarettes, branded apparel, and agri-business. Furthermore, ITC offers hotels, packaged foods
and confectionery, greeting cards and other fast moving consumer good (FMCG) products. It
operates its business through five segments namely FMCG, hotels, agribusiness, paperboards,
paper & packaging, and others. FMCG segment consists of cigarettes and other businesses.
The following data provides a comprehensive insight into the company financial structure. The
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company’s strengths and weaknesses and areas of development or decline if analyzed the
financial summary of 2008-2009 gives an insight into the present financial position of company.
The resulting figures are benchmark for all leading FMCG companies across the globe. The
assets of the company were and the total liabilities were and profits were very satisfactory.
Background:
ITD Vision:
ITC to be the Leading FMCG Company in India
In Market Standing
In Profitability
In Growth
In Sustainability
In Stakeholder Perception
To achieve ITD Vision, company has laid down TM&D Guidelines.
It inculcates in itself the Distribution Strategy, so as to reach end consumers.
Distribution Strategy:
Key Parameters of Distribution Strategy are:
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Market Coverage Strategy.
Market Representation Strategy.
Outlet Coverage Strategy.
Various Channels Serviced.
Infra Requirement.
Benefits of Market Classification
1. Market Classification helps us to decide a service pack for a particular market so as to
achieve distribution objectives.
2. Helps to determine Brand Input Plan.
3. Helps to identify the brands needed to focus.
Market Representation Strategy:
Market Representation is based on Market Coverage Strategy keeping into account Cost of
servicing.
Market Representation is critical for providing sharper focus in managing the diversities &
complexities associated with ITC’s widespread forays in the FMCG space.
Market Representation is to be achieved through:
Wholesale Dealers (WD / Customer)
O A Firm or a Company which purchases stocks in bulk from ITC for the purpose of actively
Distributing and reselling to retailers, wholesalers and consumers for a profit.
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WD Branch
O A full-fledged distribution operation of the Wholesale Dealer for actively distributing & reselling
stocks to retailers & wholesalers in a town &/or surrounding village markets.
WD Stockist
O A Firm or an Individual located in a market away from the WD market which purchases stocks from a
WD for the purpose of actively distributing and reselling all product categories to trade in that market
& surrounding rural markets.
Different Channels Serviced:
Out of entire outlet universe, there might be certain set of outlets which show a degree of homogeneity
amongst them. These differentiated set of Outlets are called as Channels.
Channels are classified basis:
1. Lead Category
2. Location
3. Trade Behavior
4. Consumer Behavior
Various Channels Identified are:
• Convenience
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• Grocery
• Whole Sale
• Modern Format
Channel Classification helps to provide differentiated and customized Service Pack.
Outlet Coverage Strategy:
It is not feasible to cover entire universe of outlets directly. So Outlets Coverage Strategy has been laid
by our strategy makers so as to maximize distribution on optimal Costs.
Basis of Outlet Coverage
Outlets are covered keeping in view following criteria:
Sales Volume
Sales Value
Outlets Serviced by Competition.
Also, Outlets have further been classified in premium outlets and others so as to provide customized
Service Pack.
WD Infrastructure:
WD infrastructures are categorized into:
• Backend Infrastructure –
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o Office
o Warehouse
o Backend Staff - Comp Operator, Cashier, Accountant, Godown Keeper, Godown Helpers.
• Frontline Infrastructure –
o Selling and Supervision Infrastructure
WD DS
WD Team Leader
o Delivery Infrastructure
Delivery Vehicle
Delivery Boy
Among the entire Infrastructure at WD point, Frontline Staff i.e. WD DS is of most significance.
Importance of WD Frontline Sales Force (WD DS)
We know that The Consumer is king; finally eighteen years after the liberalization of India's
economy began, the marketplace has, suddenly, become frighteningly competitive. Not only
have new players including a host of powerful translation, stormed into the country, there are
more brands available than ever before in every segment of every market. Befittingly, for the
time in above 50 years since Independence, delivering the final verdict will be the customer
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who is already finicky about what will buy, in future, only that which meets her every desire.
This demands more intimate understanding of the consumer by the smart companies'.
There are various means used by companies to interact with consumers, to create awareness,
to generate trials, and to take feedback. Some of them are as below:
Communication/Activities:
o ATL (Above the line Communication) - Branding, Advertisement.
o BTL (Below the line Communication) - Sales Promotion, Merchandising.
Retailer.
Here, Retailers are more important because they are direct interface to Consumers for almost
all the companies. They are not only pivotal for reaching various products to the End
Consumers, but also plays an important role in purchase decision and help us understand the
needs of consumer and take/give feedback pertaining to products.
In this way role of frontline force (WD DS) is very important as he is not only direct interface to
Retailers but also plays an important role in BTL activities viz. Sales Promotion (scheme
communication), merchandising (Presentation of Product and POSM to Persuade People to
Purchase).
So, Frontline Force is pivotal for making a product/brand successful in market and hence helps
achieve Organization Objectives.
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So, it is very important that the Frontline Force (WD Sales Force) is well trained, well equipped, and
hence effective enough to achieve Organizational Goals.
Various Companies including ITC has been conducting various programs for Induction of new DSs,
Training of Selling Skills, and PKWs.
In the last couple of years, ITC has geared up its efforts in the direction of frontline capability
development. ITC has demarcated its practices in the following areas:
Selling Skills Training
Product Knowledge Workshops
Structured Induction Programs for new entrants
New and innovative frontline sales programs have been launched for the Frontline sales team
both for technical and managerial competencies. These have significantly impacted the
frontline productivity.
My project is based on Comparative analysis of various methodologies applied for development of
Frontline Sales Force of lead FMCG Companies and understands:
Capability development measures adopted.
Different kinds of training programs conducted for Frontline Organization
Mechanisms of such programs.
Systems and processes w.r.t. capability development.
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Methodologies applied by ITC for Frontline Capability Development:
ITC has geared up its efforts in the direction of frontline capability development. ITC has
demarcated its practices in the following areas:
1. Selling Skills Training
2. Product Knowledge Workshops
3. Structured Induction Programs for new entrants
1. Selling Skills Training:
ITC has designed classroom training sessions for Capability Development of Frontline
force under the name of:
a. Kamal Ka Funda
Kamal Ka Funda was designed to train and develop Frontline using illustrative
examples and real life situation. Kamal Ka Funda was a two day classroom
session broadly divided into four sections meant to be covered in 4 sessions, 2
sessions per day. The cascade was planned for all the DSs across channel in the
branch. To make the cascade interactive, the no. of DSs per batch was kept low
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at around 25 – 30. Also, to ensure DS’s involvement and to create excitement,
each batch was divided into four teams and there were question and answer
sessions at the end of each session and in between the sessions. The four
sections of the cascade are detailed below:
I. Badalti Duniya: This section briefed DSs about changing environment around
us and need for adopting new/scientific method to gain competitive edge.
II. ITC ke Taur Tarike: This section detailed DSs about ITC way of doing things
with special emphasis on Availability, Visibility, and Freshness. It also taught
about Win- Win Situation and Mutuality. It also demonstrated that ITC not
only believes in Selling- In but also in Selling – Out. The section also includes
9 steps of Call.
The nine Steps of Call are as follows:
– Preparation
– Approach
– Stock Check
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– Presentation
– Closing
– Merchandising
– Consumer Contact
– Administration
– Evaluation
Out of aforementioned 9 steps of Call, 1st five steps are meant for Selling – In,
6th and 7th step are meant for Selling – Out, whereas last 2 steps take care of
both Selling – in and Selling – out.
III. Selling – In: This section detailed 5 steps of Selling – In, i.e. Preparation,
Approach, Stock Check, Presentation, & Closing, and 2 steps that are
common to both Selling – In and Selling – out, i.e., Administration and
Evaluation. This section also illustrated 5 stage selling format that are
detailed as:
– Summarise the situation
– State the Idea
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– Explain how it works
– Reinforce the key benefits
– Closing
IV. Selling – Out: This section detailed 6th and 7th steps of call i.e., Merchandising
and Consumer Contact, as well as Sales Promotion, its importance, its
benefit, and how it should be utilized to take maximum competitive
advantage.
b. Kaun Karega Kamal –
It was refresher module of Kamal Ka Funda. The program was scheduled for one
day. Like Kamal ka Funda, it was also meant for all the Frontline Force across
Channel and each batch contained of 25-30 individuals. At the end of module,
each guy had to undergo a quiz individually and the topper of each batch was
facilitated and rewarded by a Silver Coin.
2. Product Knowledge Workshops:
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ITC has been conducting PKWs (Product Knowledge Workshops) for various product categories
for Frontline so as to prepare them to answer the queries from retailer and consumer as well.
These workshops detail about Competition, benchmark brand, Product (its USP and superiority
over competition), Target Group/Consumer, and Pricing. The workshop not only helps to
understand the product, but it also help to identify target outlets by identifying the benchmark
brand. The workshop also helps DSs to be better equipped for objection handling, solving
queries, and hence gain confidence of retailer, thus getting competitive edge. This module not
only helps to achieve DS’s objective but also organizational objective.
Various product categories for which PKWs have been organized for DSs are:
– Confectionary – The module of Confectionary PKW was named as “10 minute Funda”.
It gave broad view of Competition, Product, Target consumer, and pricing for different
subcategories of confectionary, viz. HBC, Toffee, Eclairs Re1, Eclairs 50p, and Deposited
Candy.
– Agarbatti - ITC launched Agarbatti ( Incense Stick) and Dhoop under Brand name
Mangaldeep. The module on Agarbatti PKW tells types of agarbatti basis
manufacturing/ making process; i.e. Masala and Dipped. Agarbatti is also
categorized basis Price – point per stick; i.e. Basic and Value- Added. The module
gave broad view of Competition, Product, Target consumer, and pricing.
– Soap - PKW for Soaps detailed the type of soap basis per 100 gram of soap; i.e. Premium
(> Rs 25 per 100g), Upper-mid (Rs 15-25 per 100 g), Popular (< Rs 10 per 100 g). The
module gave broad view of Competition, Product, Target consumer, and pricing.
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– Shampoo – It detailed classification of Shampoo basis:
a) Material Used -
o Natural/ Herbal
o Aftificial/Synthetic
b) Price –point -
o Premium
o Upper-Mid
o Popular
c) Dandruff/Anti-Dandruff –
o Dandruff
o Anti- Dandruff
The module gave broad view of Competition, Product, Target consumer, and pricing.
3. Structured Induction Program for new Entrants:
As discussed earlier, to provide customized service to retailers, ITC has differentiated trade into
various Channels. For each channel, ITC has differentiated strategy and different service pack,
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which includes separate Selling and Supervision Infrastructure. The various channels Identified
are:
• Convenience
• Grocery
o Grocery 1
o Grocery 2
o Grocery 3
• Whole Sale
So, different set of channels, it requires different set of infrastructure which in turn require
different set of skills. So, it required differentiated induction program for new entrants. The
induction programs for few cannels are briefed below:
Convenience DS:-
Background:
• WDs are operating in multiple channels and need sales force trained to operate
in a particular channel.
• Due to ramping up of infrastructure and following continuous attrition, there are
new DS coming up in the WD system.
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• Significant increase of new product categories and skus in the last few years.
• Quality of DS is critical to achieve business objectives.
• Large numbers of our customers have requested us to help them in providing
structured induction program which will facilitate smooth transition of the new
DS in their role.
Recommendation: Make sure the DS carries the DS Kit before leaving for market. Kit
should essentially contain the following:
List of Outlet wise Day wise Beats based on target outlet list
List of product availability norms
Product Freshness norms
Bill Book
Scheme Chart
Price List
DS Bag
POSM ( Paper Ad board for Cigarettes and other FMCG POSM)
Grocery 1 DS:-
Background:
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• WDs are operating in multiple channels and need sales force trained to operate
in a particular channel.
• Due to ramping up of infrastructure and following continuous attrition, there are
new DS coming up in the WD system.
• Significant increase of new product categories and skus in the last few years.
• Quality of DS is critical to achieve business objectives.
• Large numbers of our customers have requested us to help them in providing
structured induction program which will facilitate smooth transition of the new
DS in their role.
Grocery 2 DS:-
Background:
• WDs are operating in multiple channels and need sales force trained to operate
in a particular channel.
• Due to ramping up of infrastructure and following continuous attrition, there are
new DS coming up in the WD system.
• Significant increase of new product categories and skus in the last few years.
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• Quality of DS is critical to achieve business objectives.
• Large numbers of our customers have requested us to help them in providing
structured induction program which will facilitate smooth transition of the new
DS in their role.
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Analysis and Interpretation
Q1. Which type of training did you get?
a) on the job training b)off the job training
on the job 80%
off the job 20%
Interpretation-80% salesmen says that they have taken on the job training and 20% says that
they have taken off the job training.
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Q2. Whether training provided to you helped in learning new selling skills?
Yes 92%
No 5%
Can’t say 3%
Interpretation-92% salesmen says that training helped them in learning new skills 5% says
salesmen says that training did not help them in learning new skills and 3% salesmen says that
they cant say anything.
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Q3). Rank following of the job training according to your preference?
Response
Job rotation 48%
Orientation 42%
Apprenticeship 8%
Internship 2%
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Interpretation-More than 40% of salesmen ranks lectures at the top then case study
than role playing and than conference.
Q4. Whether the physical facility for the training was satisfactory?
Response
Yes 95%
No 5%
Can’t say 0%
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Interpretation-95% salesmen says that physical facilities for training was satisfactory 55
says that they were not satisfied with physical facility for training.
Q5. Whether the trainer has sufficient knowledge ?
Response
Yes 80%
No 20%
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Interpretation-80% salesmen says that trainer has sufficient knowledge of subject
matter.20% says that they were not satisfied with the trainer.
Q6. Whether there is need of training in an organization?
Response
Yes 95%
No 5%
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Interpretation-95% says that there is a need of training in the organization.5% says that
there is no need for training.
Q7. Whether you are satisfied with training program?
Response
Yes 90%
No 10%
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Interpretation-90% salesmen says that they are satisfied with the training program and
10% says that they are not satisfied with the training program.
Q8. How training is evaluated in an organization?
Reponse
By performance 65%
By result 20%
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By behavior 15%
Interpretation-65% says that training is evaluated in organization by performance 20%
says that through result and 15% says that through behavior.
Q9. How many training program are attended in a year?
Response
10-20 Salesmen says 60%
20-40 Salesmen says 30%
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More than 40 salesmen says 10%
Interpretation-10 to 20 salesmen says 60% training program are attented in a year,20 to
40 salesmen says that 30% training program are attented in a year and more than 40
salesmen says that 10% training program are attented in a year.
Q10. Have any salesman ever come across any problem during the training session
conducted in the organization?
Response
Yes 60%
No 40%
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Interpretation-60% says that they did not faced any problem in the training session but
40% says that they faced problem in the training session.
Q11. Does retraining is nessecery due to change in job , technology and the
environment?
Response
Yes 95%
No 5%
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Interpretation-95% salesmen says that retraining is necessary due to change in
job,technology and environment 5% do not agree with the statement.
Q12. Whether training was helpful in enhancing the performance ?
Response
Yes
No
Can’t say
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Interpretation-85% says that training helps in enhancing the performance,10% says that
it does not help and 5% cant say.
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FINDINGS
• Most of the salesmen say that they have taken 80% on the job training. 20% say that
they have taken of the job training.
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• 92% salesmen says that training helped them in learning new skills 5% says salesmen
says that training did not help them in learning new skills and 3% salesmen says that
they cant say anything.
• 92% salesmen says that training helped them in learning new skills 5% says salesmen
says that training did not help them in learning new skills and 3% salesmen says that
they cant say anything.
• 95% salesmen says that physical facilities for training was satisfactory 55 says that they
were not satisfied with physical facility for training.
• 80% salesmen says that trainer has sufficient knowledge of subject matter.20% says that
they were not satisfied with the trainer.
• 95% says that there is a need of training in the organization.5% says that there is no
need for training.
• 90% salesmen says that they are satisfied with the training program and 10% says that
they are not satisfied with the training program.
• 65% says that training is evaluated in organization by performance 20% says that
through result and 15% says that through behavior.
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• 10 to 20 salesmen says 60% training program are attented in a year,20 to 40 salesmen
says that 30% training program are attented in a year and more than 40 salesmen says
that 10% training program are attented in a year.
• 60% says that they did not faced any problem in the training session but 40% says that
they faced problem in the training session.
• 95% salesmen says that retraining is necessary due to change in job,technology and
environment 5% do not agree with the statement.
• 85% says that training helps in enhancing the performance,10% says that it does not
help and 5% cant say.
Conclusion:-
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Training and organizational development are two areas of opportunity for HR professionals
to make a strong, positive impact on a company.
Proper training is one of the major factors in salesmen ability to be successful in the job.
With a full understanding of the training need of your organization and the many options
available, you can develop training plans to help salesmen reach a higher level of productivity.
Analysing your business to make sure its processes enable its function effectively and
efficiently organizational development activities will often lead to eye-opening discoveries. By
fully understanding organization development and the type of intervention you can examine
your company from a new angle and pinpoint areasfor improvement in productivity and
efficiency.
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Recommendation
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1. ITC should conduct Separate/Special training program for Team Leaders as well.
Trained and effective TL will be able to train, guide, develop, and lead the team to
achieve desired objectives.
2. Management should establish relationship between performance level and reward.
3. The employees must be assured that promotion would be made entirely on the basis
of his/her performance/productivity and not on other factors.
4. Reward system must be indivisualised because attractiveness for particular reward
may offer from person to person.
5. The management should take serious measures for enhancing the level of autonomy
and responsibility in job.
6. Organisation work culture should be honestly implemented in all units/departments
to increase the efficiency of the organization.
7. For less productive salesmen, they must be sent for re-training in order to motivate
them.
8. Delegation of authority along with responsibilities should be encouraged.
9. An ideal organization must trust the capabilities of its employees and give them
chance to prove themselves.
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10. Unproductive workers as units must be picked up and analysed. And they must be
first asked to bring about an improvement in them, otherwise the management
must try to get rid of them.
11. Regular meetings of various departmental heads and the unit manager should be
arranged, in order to discuss the working and problems of the organization as a
whole and various departments separately.
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Questionnaire
Q1. Which type of training did you get?
a) on the job training b)off the job training
Q2. Whether training provided to you helped in learning new selling skills?
Yes ( ) No( ) Cant say( )
Q3. Rank following of the job training according to your preference?
Job rotation
Orientation
Apprenticeship
Internship
Q4. Whether the physical facility for the training was satisfactory?
Yes( ) No( ) Cant say( )
Q5. Whether the trainer has sufficient knowledge ?
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Yes( ) No( )
Q6. Whether there is need of training in an organization?
Yes( ) No( )
Q7. Whether you are satisfied with training program?
Yes( ) No( )
Q8. How training is evaluated in an organization?
By performance
By result
By behavior
Q10. How many training program are attended in a year?
10-20 Salesmen says
20-40 Salesmen says
More than 40 salesmen says
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Q11. Does retraining is necessary due to change in job , technology and the environment?
Yes( ) No( )
Q12. Whether training was helpful in enhancing the performance ?
Yes( ) No( )
General Information:
Address:
……………………………………………………………………………………………………………
………………………………………………………………………………………………
Telephone:………………………………………………………………………………………….
Mobile:……………………………………………………………………………………………….
E mail:…………………………………………………………………………………………………
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Occupation: ( )Service ( )Business
()Self employment
( )House wife ( )Student
Gender: ( ) Male ( )Female
Marital Status : ( )Married ( )Unmarried
Number of members in the family :-
( )1 to 4 ( )4 to 6 ( )Over 6
Monthly income in rupees:-
( )Below 8000 ( )8000-20000
( )20000-30000 ( )Above 30000
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BIBILOGRAPHY
• Human Resource Management- Shina
• www.itcportal.com
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