study of retailers preference towards itc candyman and candico candies

1

STUDY OF RETAILERS PREFERENCE TOWARDS ITC CANDYMAN AND CANDICO CANDIES

INDEX SUBMITTED TO:

Contents

Page no.

PUNJAB TECHNICAL UNIVERSITY, JALANDHAR 

Certificate

IN PARTIAL FULFILMENT OF THE

Acknowledgement Preface

5

REQUIREMENT FOR THE DEGREE OF

DeclaraMASTER tion

6 7

OF BUSINESS ADMINISTRATION

Chapter I:-

BATCH (2007-2009) ITC Candyman Profile

9-12

Candico Profile

13-15

Chapter II:-

GUIDE:

Objective of the study

17

Scope of the study

18

Research Methodology SUBMITTED BY:

19-20

Mr. Girish NimaLimitations of the study SHAH FAISAL

Chapter III:-

21

ENROLEMENT No. 7116223117 7116223117

Data Analysis & Interpretation

22-45

Chapter IV:-

RIMT-Institute & Computer Technology, Mandi Findof ingManagement s 47 Swot Analysis

Gobindgarh

48-50

Suggestions

51

Conclusions

52

Annexure

53

Chapter V:-

Chapter VI:Bibliography

59

2

LIST OF TABLES TABLE  NUMBER  1 2 3 4 5 6 7 8 9

TI T L E Sale Of The Candies Brand Preferences Purchase Of ITC Candyman Candies Purchase Of Candico Candies Overall Purchase Of Candies Preference Of Sub-brands Of ITC Candyman Candies Preference Of Sub-brands Of Candico Candies Influencing Factors During Purchase Of Candies Influencing Fa Factors Du During Pu Purchas hase Of Of IT ITC Ca Candy ndyman

PAGE  NUMBER  23 24 25 26 27 28 29 30 31

10 11 12

Candies Influencing Factors During Purchase Of Candico Candies Factors Giving More Satisfaction To The Retailers Fact Factor orss Giv Giviing More ore Sat Satis isfa fact ctio ion n To To The The Ret Retaile ailerrs in in ITC ITC

32 33 34

13

Candyman Candies Fact Factor orss Givi Giving ng Mo More re Sati Satisf sfac acti tion on To Th Thee Ret Retai aile lers rs In Cand Candic ico o

35

14 15 16 17 20 21 22

Candies Form Preferences Pack Of Candies Preferred Promotional Offers Factors Affecting Purchase Media Of Advertisement Frequency Of Consumption Reasonable Price

36 37 38 39 40 41 42

23 24

Consumer’s Brand Loyalty Reaction Of Customers If New Brand Is Introduced

43 44

LIST OF GRAPHS GRAPH  NUMBER  1 2 3 4

TI T L E Liking For The Chocolate Brand Preference Purchase Of ITC Candyman Candies Purchase Of Candico Candies

PAGE  NUMBER  23 24 25 26

3 5 6 7 8 9 10 11 12 13 14

Overall Purchase Of Candies Form Preferences Pack Of Candies Preferred Promotional Offers Factors Affecting Purchase Media Of Advertisement Frequency Of Consumption Reasonable Price Retailer ’s Brand Loyalty Reaction Of Retailers If New Brand Is Introduced

27 36 37 38 39 40 41 42 43 44

ACKNOWLEDGEMENT

Firs Firstt of all all I woul would d like like to than thank k the the Mana Manage geme ment nt at ITC ITC ltd. ltd. for for givi giving ng me the the opportunity to do my one and half-month project training in their esteemed organization. I am highl highly y obli obliged ged to my proj project ect guid guidee Mr. Mr. Girish Girish Nima for granting me to undertake my training at Saharanpur branch. I express my thanks to all Staff of the branch under whose able guidance and direction, I was able to give shape to my training. Their constant review and excellent suggestions throughout the project are highly commendable. My heartfelt thanks go to all the executives who helped me gain knowledge about the actual working working and the processes processes involved in various departments. departments. I have no words to express my feeling of deep gratitude, which I owe to Mrs. Dalbir kaur (faculty

member), who extended me assistance, support and council without, which this project would not have been materialized

4

GUIDE: Mrs. Dalbir Kaur

Shah Faisal

PREFACE

I am luck lucky y that that,, I got got an oppo opport rtun unit ity y for for maki making ng the the proj projec ectt repo report rt on “ITC “ITC CANDYMAN.” I visited the various concerns for two months and I prepare my project repor reportt on the the topi topicc “STU “STUDY DY OF RET RETAILE AILERS RS PREF PREFER EREN ENCE CE TOW TOWARDS ARDS ITC ITC CANDYM CANDYMAN AN AND CANDIC CANDICO O CANDIE CANDIES.” S.” and the study study is divide divided d into into variou variouss 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.

5

DECLARATION Hereby declare that the project report entitled “STUDY OF RETAILERS PREFERENCE TOWARDS ITC CANDYMAN AND CANDICO CANDIES.” submitted for the degree of Master of Business Administration, is my original work and the project report has not formed the basis for the award of any diploma, degree, associate ship, fellowship or  similar other titles. It has not been submitted to any other university or institution for the award of any degree or diploma.

Place: Date:

Shah Faisal MBA-III Sem

6

CHAPTER-I INTRODUCTION

7

ITC PROFILE ITC is one of India's foremost private sector companies with a market capitalization of  nearly US $ 18 billion and a turnover of over US $ 5.1 Billion. ITC is rated among the World's Best Big Companies, Asia's 'Feb. 50' and a nd the World's Most Reputable Companies  by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC also ranks among India's top 10 `Most Valuable Valuable (Company) Brands', in a study conducted by Brand Finance Financ e and published by the Economic Eco nomic Times. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Packaging, Agri-Busine Agri-Business, ss, Packaged Packaged Foods & Confectioner Confectionery y, Information Information Technology echnology,, 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. 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 create enduri enduring ng value value for the nation nation provid provides es the motive force to sustai sustain n growin growing g shar shareh ehol older der valu value. e. ITC ITC prac practi tice cess this this philo philoso sophy phy by not not only only driv drivin ing g each each of its its  businesses towards international competitiveness but by also consciously contributing to enhanc enhancin ing g the the compe competi titi tiven venes esss of the the lar larger value value chai chain n of whic which h it is a part. 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, reach, superi superior or brandbrand-bui buildi lding ng capabil capabiliti ities, es, effec effectiv tivee supply supply chain chain managem management ent and acknowl acknowledge edged d service service skills skills in hoteli hotelier er.. Over Over time, time, the strat strategi egicc foray forayss into into new

8   businesses are expected to garner a significant share of these emerging high-growth markets in India. ITC's Agri-Business Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power o f the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvar Harvard d Busine Business ss School School,, is expecte expected d to progre progress ssive ively ly create create for ITC a huge rural rural distri distribut bution ion infras infrastru tructu cture, re, signif significa icantl ntly y enhanci enhancing ng the Company Company's 's market marketing ing reach. reach.

ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is aggressively aggressively pursuing emerging opportuniti opportunities es in providing providing end-to-end end-to-end IT solutions, solutions, including

e-enabled

services

and

business

process

outsourcing.

ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 24,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing envir environm onment ent to cons consis iste tent ntly ly rewa reward rd more more than than 3,83, 3,83,000 000 shar shareh ehol older ders, s, fulf fulfil illl the the aspirations of its stakeholders and meet societal expectations. This over-arching vision of  the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation. For the Shareholder."

ITC currently has two brands in the confectionery segment –‘Mint-o’ and ‘Candyman’. ‘Mint‘Mint-o’ o’ was acquir acquired ed by ITC from from Candic Candico o in March March 2002. 2002. ITC re-lau re-launche nched d the compressed mint offering, across all major markets in India, with new and improved

9  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 strate strategy gy of adding adding excitem excitement ent and contrib contributi uting ng to the growth growth of the confect confection ionery ery category. ‘Mint-o Fresh’ is especially targeted at the adult consumer creating a basket of  mint-based products across price points. ITC launched the ‘Candyman’ range of confectioneries in August 2002. Led by the ‘Candyman Fruitee Fun’ range of assorted fruit flavours ( ‘Wild banana’, ‘Pineapple Punch’, ‘Orange Josh’ and ‘Mango Delite’), the ‘Candyman’ portfolio now includes deposited candy products like ‘Candyman Butterscotch Licks’ and ‘Candyman Eclairs’ (Choco flavoured as well as Vanilla Cream centre inside a Butterscotch outer shell). The coffe coffeee tof toffee fee segm segmen entt also also saw saw the the succe success ssfu full laun launch ch of ‘Cand ‘Candym yman an cofi cofiti tino no’’ 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 Candym Candyman an Natkhat Natkhat Gowawa Gowawa in October October 2007. The ‘Candy ‘Candyman’ man’ range range of  confect confection ionary ary is target targeted ed at ‘fun-f ‘fun-fill illed, ed, naughty naughty kids’ kids’ who seek seek a deligh delightf tful ul candy candy experience through a range of candy types and flavours.

10

STRATEGIES 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 crea creati tion on is back backed ed by stro strong ng corp corpor orat atee

gove govern rnan ance ce poli polici cies es and and

syst system ems. s.

ITC’s ITC’s corporate strategies are: •

Create Create multip multiple le driver driverss of growth growth by develop developing ing a portfo portfolio lio of world world class class   busi busines nesses ses that that best best matches matches organi organizat zation ional al capabil capability ity with with opportu opportunit nities ies in domestic and export markets.

•

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. Technology.

•

Benchmark the health of each business comprehensively across the criteria of  Market Standing, Profitability and Internal Vitality 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 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   balan balance ce betwee between n execut executive ive freedo freedom m and the need need for effect effective ive control control and accountability.

11

CANDICO PROFILE

Candico is a confectionery multinational headquartered out of India with operations in 12 countries. Candico began operations in the year 1997. By the year 2002 it grew to become the second second larges largestt Indian Indian confect confection ionery ery company company.. Candico Candico is one of only two Indian Indian companies to emerge as a confectionery major after the industry consolidated in the late 90's. With over 2 billion confectionery products sold every year, Candico has been making millions of children smile. Candico's success in a market where every major confectionery player from the world competes is indicative of its core strengths

INDIAN DISTRIBUTION With 24 depots, 1500 authorized dealers and a 250 people strong sales force, Candico’s distribution network in India has a direct or indirect reach in most towns and cities with a  population of over 25,000. It is estimated that Candico’s brands reach out to over 60 percent of India’s 1000 million  people. An Advanced Management Information System ensures that the company’s management has, by 11 a.m. the next day, details of all Candico products sold to every shop by every salesman in India.

12

INTERNATIONAL DISTRIBUTION Candico is the only Indian confectionery co nfectionery company with production facilities overseas. Candico’s international operations gathered speed in October 2003 with its acquisition of  an equity skate in SML, Tanzania. In May 2004 it entered into a distribution agreement to set up operations in South Africa. Africa. Candico has set up distribution arrangements in several countries across the world including South Africa, New Zealand, Madagascar and Qatar. Candico is actively scouting for opportunities to set up similar distribution agreements in West and North Africa so as to cover the entire African continent.

PRODUCTION Candico has a "world class manufacturing facility" (ERC, London) in its 'state of the art'  plant at Nagpur, Maharashtra.

Physical layout The largest of it's kind in the country, the plant is spread over a sprawling 15-acre campus, complete with lush lawns and a stream that flows right through it. It has a constructed constructed area of over 350,000 square feet, of which close to 300,000 is fully particle, humidity and temperature controlled.

13 The plant has a production capacity of 45,000 tonnes, which makes it one of the largest manufacturing facilities of its kind in India.

Product lines The Candico manufacturing facility at Nagpur, due to the substantial amount of capital investment and the superior technology used in the manufacturing process, is the only  plant in the country that is capable of manufacturing the entire range of confectionery  product in each one of the existing categories. 1) Toffees: Toffees: Centre fill, Non centre fill 2) Candies: Centre fill, Sugar boiled 3) Gums: Bricks, Balls, Sticks 4) Soft chews: Aerated, Non-aerated 5) Compressed powder tablets

14

CHAPTER-II

15

OBJECTIVES OF THE STUDY This project is based on the comparative study consumer behavior towards ITC Candyman and Candico. Objectives of the study are:



Thee othe Th otherr object objectiv ivee is to kno know w about about the the cust custome omerr sati satisf sfact actio ion n leve levell 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.

16

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 disp dispos osee of the the produ product ct and and new ways ways of beha behavi ving ng that that will will sati satisf sfy y not only the the consumer’s needs, but the marketer’s objectives.

The scope of my study restricts restricts itself to the analysis of retailer retailer preferences, preferences, perception and consumption of ITC Candyman and Candico. There are many other brands of candies available but my study is limited to two major players of candies leaving behind the others. The scope of o f my study is also restricts itself to Saharanpur region only o nly..

17

RESEARCH METHODOLOGY This chapter describes the methodology of the study. This project is based on information collected from primary sources. After the detailed study, an attempt has been made to  present comprehensive analysis of consumption of ITC Candyman and Candico candies consum consumed ed by the the peopl people. e. The data data had had been been used used to cover cover vari various ous aspe aspect ctss like like consumption, retailer’s preference and retailer’s satisfaction regarding Candyman and Candico. In collecting requisite data and information regarding the topic selected, I went to the retailers of Saharanpur and collected the data.

Survey design: The study is a cross sectional study because the data were collected at a single point of  time. For the purpose of present study a related sample of population was selected on the  basis of convenience.

Sample Size and Design: A sample of 100 people was taken on the basis of convenience. The actual retailers were contacted on the basis of random sampling.

Research Period: Research work is only carried for 2 or 3 weeks.

Research Instrument: This work is carried out through self-administered questionnaires. The questions included were open ended, dichotomous and offered multiple choices.

18

Data Collection: The data, which is collected for the purpose of study, is divided into 2 bases: 

Primary Primary Source: Source: Th Thee prim primary ary data data comp compri rise sess info inform rmat atio ion n surv survey ey of  “Comparative study of retailer behavior towards ITC Candyman and Candico”. The data has been collected directly from respondent with the help of structured questionnaires.



secondary ry data data was collected collected from from intern internet et and Secondary Source: The seconda references from Library. Library.

Data Analysis: The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that I have used is bar graphs.

19

LIMITATIONS LIMITATIONS OF THE STUDY S TUDY 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 g eneralize the findings of the study.



The main source of data for the study was primary data with the help of selfadministered questionnaires. Hence, the chances of unbiased information are less.



People were hesitant to disclose the true facts. fac ts.



The chance of biased response can’t be eliminated though all necessary steps were taken to avoid the same.

20

CHAPTER-III DATA ANALYSIS AND INTERPRETATION

21

ANALYSIS ANALYSIS OF THE STUDY STU DY SALE OF THE CANDIES Table: 1 Sale of the Candies

Yes

No

Number of Respondents

95

5

100

95

80 60 Number of Respondents

40 20

5

0 Ye s

No

Chart: 1

From the above analysis of the given sample of 100 respondents it is concluded that out of 100 people 95 people sell candies while only 5 people don’t sell candies.

22

BRAND PREFERENCE Table: 2 BRANDS ITC CANDYMAN CANDICO

80

PREFERENCE BY CONSUMERS 73 22

73

70 60 50 ITC C ANDYMAN ANDYMAN

40 30

22

CANDICO

20 10 0 PREFERENCE BY CONSUMERS Chart: 2

From the above analysis of given sample of 95 respondents who sell candies it is concluded that only 22 people prefer to sell Candico while 73 people likes to sell ITC Candyman.

23

PURCHASE OF CANDIES PURCHASE OF CANDYMAN Table: 3 SUB- BRANDS ECLAIRS COFFITINO MINT-O-FRESH FRUITEE FUN NATKHAT MANGO

ITC CANDYMAN NUMBER OF RESPONDANTS 69 64 61 49 41

PURCHASE OF ITC CANDYMAN

NATKHAT MANGO 41

ECLAIRS 69

FRUITEE FUN 49

COFFITINO 64

MINT-O-FRESH 61

Chart: 3

From the above analysis of given sample of 73 respondents who eat ITC Candyman candies it is concluded that mostly people has purchased Eclairs sub-brand of ITC Candyman while Natkhat mango is least purchased by the people.

PURCHASE OF CANDICO

24

Table: 4 SUB- BRANDS ECLAIRS COFFI TOFFI MINT CANDY FRUITS CANDY GREEN MANGO

CANDICO CANDIES NUMBER OF RESPONDANTS 19 18 15 17 11 PURCHASE OF CANDICO CANDIES

GREEN MANGO 11

ECLAIRS 19

FRUITS CANDY 17

COFFI TOFFI 18

MINT CANDY 15

Chart: 4

From the above analysis of given sample of 22 respondents who eat Candico candies it is concluded that mostly all sub-brands are purchased by people but top most is Eclairs followed by Coffi Toffi and Fruits Candy. While surveying we have found that many  people are not aware of Green Mango candy.

OVERALL PURCHASE OF CANDIES Table: 5 OVERALL PURCHASE OF SUB- BRANDS OF CANDIES

25 SUB-BRANDS ECLAIRS COFFITINO MINT-O-FRESH FRUITEE FUN NATKHAT MANGO ECLAIRS COFFI TOFFI FRUITS CANDY MINT CANDY GREEN MANGO

NUMBER OF RESPONDANTS 69 64 61 49 41 19 18 15 17 11

OVERALL PURCHASE OF SUB- BRANDS OF CANDIES NUMBER OF RESPONDANTS 11 17 69

15

ECLAIRS

18

COFFITINO MINT-O-FRESH

19

FRUITEE FUN NATKHAT MANGO ECLAIRS

41

64

COFFI TOFFI FRUITS CANDY MINT CANDY GREEN MANGO

49

Chart: 5

From the above analysis it is concluded that overall ITC Candyman Eclairs is purchased  by people followed by Coffi Toffi while Mint Candy and Green Mango is least purchased  by people.

PREFERENCE OF SUBRANDS OF CANDIES PREFERENCE OF SUBRANDS OF ITC CANDYMAN Table: 6 SUB- BRANDS

ITC CANDYMAN GRAND TOTAL AVERAGE OF

(GRAND TOTAL / No.

RANKS

26

ECLAIRS COFFITINO MINT-O-FRESH FRUITEE FUN NATKHAT

PREFERENCE 31 5 22 0 17 6 13 6 91

OF RESPO SPONDANTS) 4.3 3 2.4 1.86 1.24

1 2 3 4 5

MANGO

According to the above analysis it is concluded that in ITC Candyman, Eclairs is the most  preferred sub-brand as it is ranked first by the respondents. While Natkhat is the least  preferred sub-brand of ITC Candyman.

PREFERENCE OF SUB-BRANDS OF CANDICO Table: 7 SUB- BRANDS

CANDICO CANDIES GRAND AVERAGE TOTAL OF

ECLAIRS COFFI TOFFI FRUITS CANDY MINT CANDY

PREFERENCE 70 64 65 45

RANKS

(GRAND TOTAL / No. OF RESPONDANTS) 3.18 2.9 2.95 2.05

1 3 2 4

27 GREEN MANGO

30

1.36

5

According to the above analysis it is concluded that in Candico Brand, Eclairs is the most  preferred sub-brand as it is ranked first by the respondents. While Green Mango is the least preferred sub-brand of Candico candies.

INFLUENCING FACTORS DURING PURCHASE OVERALL INFLUENCE Table: 8 FACTORS FLAVOR/TASTE PRICE QUALITY PACKAGING FORM BRAND IMAGE COLOR  SHAPE QUANTITY

GRAND TOTAL 43 5 29 5 39 1 34 4 30 1 35 4 34 4 29 7 26 8 34 2

AVERAGE 4.58 3.1 4.12 3.62 3.17 3.73 3.62 3.13 2.82 3.6

RANK   1 9 2 4 7 3 4 8 10 6

28

According to the above analysis it is concluded that on an average mostly people are influenced by flavor/taste followed by quality, brand and image. It is surprised to know that very few people are influenced by price followed by shape of the candies. ca ndies.

INFLUENCING FACTORS DURING PURCHASE OF ITC CANDYMAN CANDIES Table: 9 FACTORS FLAVOR/TASTE PRICE QUALITY PACKAGING FORM BRAND IMAGE COLOR  SHAPE QUANTITY

GRAND TOTAL 33 5 23 5 30 7 27 7 23 1 27 1 26 2 22 4 21 3 26 2

AVERAGE 4.6 3.2 4.2 3.79 3.16 3.71 3.59 3.07 2.92 3.59

RANK   1 7 2 3 8 4 5 9 10 5

According to the above analysis it is concluded that on an average mostly people are influenced by flavor/taste followed by quality, packaging and brand. Here color and shape are not all influencing people while purchasing ITC Candyman candies.

29

INFLUENCING FACTORS DURING PURCHASE OF CANDICO CANDIES Table: 10 FACTORS FLAVOR/TASTE PRICE QUALITY PACKAGING FORM BRAND IMAGE COLOR  SHAPE QUANTITY

GRAND TOTAL 10 0 60 84 67 70 83 82 73 55 80

AVERAGE 4.5 2.72 3.82 3.04 3.18 3.77 3.73 3.32 2.5 3.64

RANK   1 5 2 9 8 3 4 7 10 6

According to the above analysis it is concluded that on an average mostly people are influenced by flavor/taste followed by quality, brand and image. Here packaging and shape are not all influencing people while purchasing Candico candies.

30

FACTORS GIVING MOST SATISFACTION TO RETAILERS OVERALL Table: 11 FACTORS FLAVOR/TASTE PRICE QUALITY PACKAGING FORM BRAND IMAGE COLOR  SHAPE QUANTITY

GRAND TOTAL 42 7 33 7 36 7 33 8 33 2 35 8 32 8 33 2 33 5 32 8

AVERAGE 4.81 3.6 3.86 3.56 3.49 3.77 3.45 3.49 3.52 3.45

RANK   1 4 2 5 7 3 9 7 6 9

According to the above analysis it is concluded that on an average people are most satisfied with the flavor/taste of a candy followed by quality and brand. It is surprising to know that although people peop le are satisfied with quality but unsatisfied with the quantity. quantity.

31

SATISFACTION IN ITC CANDYMAN CANDIES Table: 12 FACTORS FLAVOR/TASTE PRICE QUALITY PACKAGING FORM BRAND IMAGE COLOR  SHAPE QUANTITY

GRAND TOTAL 33 4 26 9 28 2 27 2 26 4 28 2 24 7 25 9 25 8 25 5

AVERAGE 4.6 3.68 3.86 3.73 3.62 3.86 3.38 3.55 3.53 3.49

RANK   1 5 2 4 6 2 10 7 8 9

According to the above analysis it is concluded that on an average people are most satisfied with the flavor/taste of a candy followed by quality and brand. It is surprising to know that although people are satisfied with quality but unsatisfied with the quantity and image.

SATISFACTION IN CANDICO CANDY

32 Table: 13 FACTORS FLAVOR/TASTE PRICE QUALITY PACKAGING FORM BRAND IMAGE COLOR  SHAPE QUANTITY

GRAND TOTAL 93 68 85 66 68 76 81 73 77 73

AVERAGE 4.2 3.09 3.86 3 3.09 3.45 3.68 3.32 3.5 3.32

RANK   1 8 2 10 8 5 3 6 4 6

According to the above analysis it is concluded that on an average people are most satisfied with the flavor/taste of a candy followed by quality and image. It is surprising to know that although people are satisfied with quality but unsatisfied with the form and  packaging.

FORM PREFERENCE Table: 14

FORM OF CANDY

NUMBER

HARD

RESONDENTS 30

OF

33 21 26 18

NUTTIES CRUNCHY CHEW

Form of a Candy Prefe Prefe red by People People

40

   f   s   r   o   e 30   r   e   m    b   u 20   s   m  n   u   o 10    N   C

30 21

HARD

26 18

NUTTIES CRUNCHY CHEW

0 1Forms

Chart: 6

According to the above analysis it is concluded that most of the people likes to eat hard candy and chew form of a candy is least preferred.

PACK OF CANDIES PREFERED Table: 15 PACK SIZE POLLY BAG JAR  JUMBO JAR 

NUMBER OF RESPONDENTS 28 48 19

34

Pack Pack of Candy Pre Pre fere d

60 50    f   s   r   o   e 40   r   e   m    b   u 30   s   m  n   u   o 20    N   C 10 0

48 POLLY BAG

28 19

JAR JUMBO JAR

1 Pack Pack

Chart: 7

According to the above analysis it is concluded that out of sample of 95 people who sell candies likes to buy jar, then comes the Polly bags and jumbo jars are least preferred.

PROMOTIONAL OFFERS

Table: 16 PROMOTIONAL OFFERS FREE GIFTS PRICE OFFER  ANY OTHER 

NUMBER OF RESPONDENTS 52 23 20

35

Effect of Promotional P romotional Offers Offers while w hile Purchase   s 60   r   e   m50   u   s   n 40   o    C 30    f   o   r 20   e    b 10   m   u    N 0

52 FREE GIFTS 23

20

PRICE OFFER ANY OTHER

Promotional Offers Offers 1

Chart: 8

According to the above analysis it is concluded that out of sample of 95 people who sell candy 52 are attracted by free gifts, 23 by price offers while 20 were attracted by some other reasons.

FACTORS AFFECTING PURCHASE Table: 17 FACTORS

NUMBER OF

ADVERTISEMENT SUGGESTION FROM CUSTOMERS ATTRACTIVE DISPLAY SALESMAN ADVICE BRAND AMBASSADORS INGREDIENTS

RESPONDENTS 67 17 12 14 10 28

36

ADVERTISEMENT

Factors Affecting Affecting Purchase Purch ase   s   r   e   m   u   s   n   o    C    f   o   r   e    b   m   u    N

80

SUGGESTION FROM CUSTOMERS

67

60

ATTRACTIVE DISPLAY

40 20

17 12 14 10

28

SALESMAN ADVICE BRAND AMBASSDORS

0 1Factors

INGREDIENTS

Chart: 9

According to the above analysis it is concluded that Advertisement is the best measure to attract retailers to purchase more. Its impact is much more than other factors. While customers and brand ambassadors also play a significant role in this regard.

MEDIA OF ADVERTISEMENT Table: 18 MEDIA OF ADVERTISEMENT TELEVISION NEWSPAPERS BROCHURES HOARDING DISPLAY

NUMBER OF RESPONDENTS 75 10 5 8 25

37

Media of Advertisement influencing the Purchase   s   r   e   m   o    t   s   u    C    f   o   r   e    b   m   u    N

80

75 Television

60

Newspapers

40 20

25 10

5

8

Brochers Hoarding Display

0 Media 1 Of Advertising

Chart: 10

According to the above analysis it is concluded that television emerges as the best media for advertisement of candies that compel consumers to buy. It is much more than other  ways as out of 95 respondents 82 are attracted to by through television media while  brochures are the least attracting media.

FREQUENCY OF CONSUMPTION Table: 19 FREQUENCY OF OF CO CONSUM SUMPTION ONCE IN A FORTNIGHT DAILY WEEKLY MONTHLY QUARTERLY

NUMBER OF OF RE RESPONDENTS 16 17 39 18 5

38

Freque ncy of Consumption Consumption   s 50   r   e    l    i 40   a    t   e    R 30    f   o   r 20   e    b   m10   u    N

39

16

Once in a fortnight Daily

18

17

5

0

1

Frequency

Weekly Monthly Quarterly

Chart: 11

According to the above analysis it is concluded that mostly retailers purchase candies weekly. weekly. Only 15 out of 95 purchase candies quarterly qua rterly..

REASONABLE PRICE Table: 20 PRICE OF CANDY BELOW 25paise 25paise-50paise 50paise-Rs1 Rs1-Rs2 ABOVE Rs2

NUMBER OF RESPONDENTS 6 23 51 4 11

39

Reasonable Price   s   r   e    l    i 60   a    t   e    R 40    f   o   r   e 20    b   m   u 0    N

51

Below 25 paise 25paise-50 paise

23 6

4

11

50paise-Rs1 Rs1-Rs2 Above Rs2

1 Price

Chart: 12

According to the above analysis it is concluded that the retailers thinks 50paise-Rs1 is the reasonable price of a candy. So it must be worthwhile to know this as it may effect the sale of candies.

CONSUMER’S BRAND LOYALTY Table: 21 BRAND LOYALTY ACTIONS POSTPONE YOUR PURCHASE SWITCH OVER TO OTHER BRANDS GO TO OTHER SHOP FOR SEARCH OF PREFERED BRAND

NUMBER OF RESPONDENTS 26 24 45

40

Brand Loyalty Loyalty   s   r   e 50    l    i   a 40    t   e    R 30    f   o 20   r   e    b 10   m   u 0    N

45 26

Postpone Purchase 24

Switch Brand Search in other Shop

Action1of Retailers in absence of Prefere d Brand

Chart: 13

According to the above analysis it is concluded that mostly people are loyal to the brand as in the absence of availability of their preferred brand mostly people like to search for it or they are ready to postpone their purchase.

REACTION OF RETAILERS IF NEW BRAND IS INTRODUCED Table: 22 SHIFT TO NEW BRAND OF THE

NUMBER OF RESPONDENTS

PREFERED PRODUCT NO, NOT AT ALL MAY CONSIDER 

35 27

41 4 29

NO, SHALL NOT CAN’T SAY

Reaction of retailers if new brand is introduced 40

  s   r   e    l    i   a    t   e    R    f   o   r   e    b   m   u    N

35

30

29

27

No, Not at all May Consider 

20

Shall Not Can't Say

10

4

0 1

Reactions

Chart: 14

According to the above analysis it is concluded that mostly people are addicted to the same flavor or taste and they don’t want to change it as out of 95 respondents 35 are not ready to try new brand at any cost.

REAS REASON ONS S FOR FOR NOT NOT SW SWIT ITCH CHIN ING G OVE OVER TO OT OTHE HER  R  BRANDS All the retailers why they continue to buy the old brand gave various important reasons. The most important reasons given by b y the retailers were: 

Taste/Flavor 



Brand



Image



Quality

42 

Packaging

43

CHAPTER-IV

FINDINGS 

RETAILER 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 need and expecta expectatio tion n levels levels regard regarding ing produc products ts and ascert ascertain ainable able levels levels of  satisfaction.

44

 PRODUCT

RESEARCH: Under product research I came to know about the

modifi modificat cation ion which which retail retailers ers wants wants as to the quality quality,, packing packing,, shape, shape, color color,, and quantity etc of their favorite candy.

 PRICING

RESEARCH: This includes ability to consume, to pay pa y 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

advert advertise isemen mentt appeals appeals the retail retailers ers or not. not. This This also also includ includes es evaluat evaluating ing and selecting the proper media-mix and measuring advertising effectiveness.

SWOT ANALYSI ANALYSIS S

STRENGTHS: 1.ITC is one of India's foremost private sector companies. co mpanies.

45 2.ITC leveraged it traditional businesses to develop new brands for new segments. . For  example,  ITC  used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. ITC master  chefs from its hotel chain are often asked to develop new food concepts for its FMCG  business.

3.ITC ranks among India's top 10 Most Valuable (Company) Brands.

4.It has market capitalization of nearly US $ 18 billion.

5.ITC has a diversified diversified presence in Cigarettes Cigarettes,, Hotels, Hotels, Paperboards Paperboards & Specialty Specialty Papers, Packaging, Packaging, Agri-Busine Agri-Business, ss, Packaged Packaged Foods & Confectioner Confectionery y, Information Information Technology echnology,, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

6. ITC's Agri-Business is one of India's largest largest exporters of agricultural products.

7. ITC is a diversified company trading in a number of business sectors including cigarettes, hotels, paper, paper, agriculture, packaged foods and confectionary, confectionary, branded apparel,  personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery.

WEAKNESSES:

1.The 1.The company company's 's origin original al busine business ss was traded traded in tobacco tobacco.. ITC stands stands for Imperial Imperial Tobacco Company of India Limited. It is interesting that a business that is now so involved involved in branding continues to use its original name, despite the negative connection of tobacco with poor health and premature death.

46 2.To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being subsidized by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone holds 70% of the tobacco market.

OPPORTUNITIES: 1.Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be developed developed using strategies strategies of market development, development, product development and marketing marketing  penetration.

2.ITC 2.ITC is moving moving into into new and emergin emerging g sector sectorss includi including ng Inform Informati ation on Technolo echnology gy,, supporting business solutions.

3.E-Choupal is a community of practice that links rural Indian farmers using the Internet. This is an original and well thought of initiative that could be used in other sectors in many other parts of the world. It is also an ambitious project that has a goal of reaching 10

million

farm armers ers

in

100 100,000 vil village ages.

Take

a

look

at

e-Choupa upal

here

http://www.itcportal.com/agri_exports/e-choupal_new.htm ITC leverages e-Choupal in a novel way. 4.The company researched the tastes of consumers in the North, West 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 country's premier premier FMCG business. business. Per capita capita consumption consumption of personal personal care products in

47 India is the lowest in the world offering an opportunity for ITC's soaps, shampoos and fragrances under their Wills brand

.

THREATS: 1.The obvious threat is from competition, both domestic and international.

2.ITC's opportunities are likely to be opportunities for other companies as well. well . Therefore the dynamic of competition will alter in the medium-term. Then ITC will need to decide whether being a diversified conglomerate is the most competitive strategic formation for  a secure future.

3.The laws of economics dictate that if competitors see that there is a solid profit to be made in an emerging consumer society that ultimately new products and services will be made availa available. ble. Weste Western rn compan companies ies will will see India India as an excitin exciting g opportu opportunit nity y for  themselves to find new market segments for their own offerings.

4.Dupli 4.Duplicat catee items items are availab available le in abundan abundance ce at much much lesser lesser rates. rates. This affec affects ts the company financially and adversely affects its goodwill.

SUGGESTIONS AND RECOMMENDATIONS

48



Company should concentrate more on television for advertisement, as mostly  people get attracted through television only.



For promotional offers, company should go for free gifts rather than going for  other ways.



Candico Candico company should should concentrate concentrate on its packing as people are least satisfied satisfied with it while ITC Candyman should concentrate on o n the shape of their candy cand y.



People are unsatisfied with the price and quantity of candy so companies should concentrate in this regard also.

CONCLUSION A survey of the people has been conducted to know the liking pattern of  the ITC Candyman and Candico. It is observed that overall retailers like to buy ITC Candyman candies rather than Candico. It is concluded that mostly people  preferred Eclairs of ITC Candyman due to its flavor/taste, quality and image and due to its hard form. Some people often like to have a candy with good flavor,

49 quality and crunchiness so they are going towards Eclairs and Coffi Toffi of  Candico due to its taste and crunchiness. It is thus concluded from the facts collected that mostly people refer to  buy jars of their favorite candy and sometimes some of them go for Polly bags and jumbo jars.

50

ANNEXURE

QUESTIONNAIRE

PROJECT REPORT ON RETAILER PREFERENCE TOWARDS ITC CANDYMAN AND CANDICO CANDIES

Que1. Do you sell candies? Yes

No

51

Que2. Which brand of candy do you prefer? ITC Candyman Candico Que3. Which sub-brand you have purchased? ITC Candyman

Candico

Cofitino

Koffi Toffi

Natkhat Mango

Green mango

Fruitee Fun

Fruits Candy

Mint-o-Fresh

Mint Candy

Eclairs

Eclairs

Que4. Que4. Rank Rank the the subsub-br brand andss of candi candies es accor accordi ding ng to your your pref prefer eren ence? ce? (1 for for most most  preferred) ITC Candyman

Candico

Cofitino

Koffi Toffi

Natkhat Mango

Green mango

Fruitee Fun

Fruits Candy

Mint-o-Fresh

Mint Candy

Eclairs

Eclairs

Que5. How much importance importance do you give to the following following factors when you purchase purchase a candy? (Tick in the desired column) Factors Flavor/taste

Very Important

Important

Normal

Least Important

 None

52 Price Quality Packaging Form Brand Image Color  Shape Quantity Que6. How much are you satisfied with the following factors in your preferred candy? (Tick in the desired column) Factors Very Satisfied Normal Least Can’t Say Satisfied Satisfied Flavor/taste Price Quality Packaging Form Brand Image Color  Shape Quantity Que7. Which form of a candy cand y do you sell? Hard Nutties Crunchy

Chew

Que8. What pack do you purchase? Polly bags Jar

Jumbo Pack  

Que9. Which promotional offers attract you most? Free gifts Price Offer Any other  

Que10.Which of these factors affects your purchase?  Advertisement 

Suggestion from customers

53



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

Rs1-Rs2

Above Rs2

50paise-Rs1

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?

54

PERSONAL DETAILS

 Name: Address: Gender: Phone Number: Marital status: Education: Profession:

THANKS

55

BIBIOGRAPHY

BIBLIOGRAHY

1.

BOOKS/MAGAZINES REFFERED: 

Marketing Management by “Philip kotler”

56 

2.

Marketing Management by”C.N.Sontakki

WEBSITES REFFERED: 

http://en.wikipedia.org



http://www.candicoindia.com



http://www.itcportal.com