britania vs. sunfeast

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INDEX

contents Page no

Acknowledgement 2

Preface 3

Declaration 4

Chapter-1:- Introduction

Objective of the study 6

Scope of the study 7

Limitation of the study 8

Chapter- 2:- Profile of the organization

ITC PROFILE 10

HISTORY OF ITC 12

FINANCIAL ANALYSIS 19

ORGANIZATIONAL STRUCTURE 23

AREA OF DIVERSIFICATION 24

SUNFEAST PROFILE 41

HOW ITC TURNED BUSCUITS BUSINESS 45

Chapter- 3:- Research methodology and design 54

Chapter- 4:- Data presentation, Analysis, and interpretation 57

Chapter- 5:- Findings, suggestions and swot 74

Chapter- 6:- Annexure 78

Chapter- 7:- Bibliography 80



ACKNOWLEDGEMENT

“ The satisfaction Euphoria that accompany the successful completion of any work

would be incomplete unless we mention the name of the person, who made it possible,

who constant guidance and encouragement served as a beckon of light and crowned

our efforts with success.” I consider it a privilege to express through the pages of this

report, a few words of gratitude and respect to those who guided and inspired in the

completion of this project.”

First of all I would like to thank the management at ITC ltd. For

giving me the opportunity to do my two month project traning in their esteemed

organization.I am highly obliged to my project guide Mr. KUNAL for granting me to undertake

my training at Patna.

I had visited almost all markets of patna and collected information of the project. I

have also done different marketing activities under the constant guidance of my project

guide.

I express my thanks to BRANCH MANAGER, MR.AVINASH SINHA and all the staff of

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 arehighiy commandable.

My hartfelt thanks go to all the executives who help me to gain knowledge about the

actual working and the processes involved in different departments.

I have no words to expess my felling of deep gratitude, which I woe to Mr ravi phadke

(faculty member) who extended assitence, support and council without, which this

project would not have been materialized. My thanks to all my faculties

members,parents and friends.

However, I accept the sole responsibility for any possible errors of omission and

would be extremely grateful to the readers of this project report if they bring such

mistakes to my notice.

Vikash kumar



PREFACE

The PGDM AICTE (MBA) curriculum is so designed that students get enough practical

knowledge of business world help them to explore their skills in corporate world in

future.

The PGDM training helps the student to understand and gain

knowledge about the industry and the market environment. It develops skills of

analyzing and interpreting problems through application of concepts and techniques of

management.

I am lucky that, I got an opportunity for making the project report on “ITC sunfeast.” I

visited the various concerns for two months and i prepare my project report on the topic

“STUDY OF RELATIVE PERFORMANCE OF SUNFEAST BISCUITS VERSUS

BRITANNIA AND PARLE.” And the study is divided into various chapters to get

knowledge. I also considered some published material on the particular topic as well as

about the concern. This helps me in boosting up my confidence and determination

which will help me to face the situation in coming years. This report is written account of

what I learnt and experienced during my survey. I wish, those going through it will not

only find it readable but also get as useful information. The main limitation of my

experience was that I did not get the full and correct information from the market ,as

many of the respondents did not answer to my questionnaire correctly and completely.

Traniee did a project for ITC in Patna (Bihar). The study consists of the following

chapters. Introduction of ITC , study on performance of sunfeast biscuit in terms of their

competitor, retailers and customers perception, sales analysis, distribution, and

conclusion etc.



DECLARATION

I, the undersigned, hereby declare that the Project Report entitled “ STUDY OFRELATIVE PERFORMANCE OF ITC SUNFEAST BISCUITS VERSUS BRITANNIA

AND PARLE ” written and submitted by me to the SIMCA, Pune in partial fulfilment of

the requirements for the award of PGDM (MBA) under the guidance of Mr Ravi

phadke is my original work and the conclusions drawn therein are based on the

material collected by myself.

Place - Pune Vikash kumar

Date - Simca , Pune



CHAPTER- 1

INTRODUCTION

ABOUT

PROJECT

Object of the project

Defining the objectives is the most crucial part of the research. If the objectives are not

clear the researcher cannot identify the problem and thus cannot find a way of the

problem.



This project is based on the study of relative performance towards ITC sunfeast

,Britannia and parle biscuits.

Objectives of the study are:

1. To know about company (ITC LTD) profile, product line, and variant.

2. To know the product, variant and sku of the sunfeast biscuits.

3. To study the relative performance of sunfeast biscuit versus Britannia and parle.

4. To know the market share of sunfeast, Britannia, and parle.

5. To know the visibility, supply, distribution channel, promotional activities, of

sunfeast in market.

6. To know the level of awareness of the customer about the existing biscuit in the

market.

7. To know the customer perception about snfeast, Britannia, and parle.8. To know the customer satisfaction level and customer preference level in term of

brand, price, quality, quantity, packaging.

9. To know the retailer‟s preferences, margin, product awareness and perception.

10.To know the level of satisfaction of the retailer‟s and wholesaler‟s with respect to

credit line and product delivery provided by wholesale provider.

11. To know the company distribution channel, different process of supply.

12. To know about the organizational hierarchy of ITC LTD.



Scope of the study

As learning is a human activity and is as natural, as breathing. Despite of the fact thatlearning is all pervasive in our lives, psychologists do not agree on how learning takesplace. How individuals learn is a matter of interest to marketers. They make aware tothe customer about their product, quality, benefits and promotional activities. They wantto teach retailers in their roles as their roles as consumers. They want retailers to learnabout their products, product attributes, potential consumers benefit, how to use,maintain or even dispose of the product and new ways of behaving thatwill satisfy not only the consumer‟s needs, but the marketer ‟s objectives.

The scope of my study restricts itself to the analysis of customer and retailer preferences, perception and consumption of ITC Sunfeast buscuit. Ther e are manyother brands of biscuit available but my study is limited to three major players of buscuit leaving behind the others.The scope of my study is also restricts itself to patnaregion only.



Limitations of the study

In attempt to make this project authentic and reliable, every possible aspect of the topic

was kept in mind. Nevertheless, despite of fact constraints were at play during this

project. The main limitations are as fellow.

Due to limitation of time only few people were

selected for the study. So the sample of customers and retailers was not enough to

generalize the finding of the study.

The main source of data for the study was primary data with the help of self-

administered questionnaires. Hence, the chances of unbiased information are less.

People were hesitant to disclose the true facts.

The chance of biased response cannot be eliminated though



CHAPTER- 2

ORGANIZATION PROFILE



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 theWorld's Best Big Companies, Asia's 'Feb. 50' and the World's Most ReputableCompanies by Forbes magazine, among India's Most Respected Companies byBusiness World and among India's Most Valuable Companies by Business Today.ITC also ranks among India's top 10 `Most Valuable (Company) Brands', in a studyconducted by Brand Finance and published by the Economic Times.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards &Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery,Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matchesand other FMCG products. While ITC is an outstanding market leader in itstraditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of PackagedFoods & 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 multipledrivers of growth anchored on its time-tested core competencies: unmatched

distribution reach, superior brand-building capabilities, effective supply chainmanagement and acknowledged service skills in hoteliering. Over time, the strategicforays into new businesses are expected to garner a significant share of these emerginghigh-growth markets in India.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC isone of the country's biggest foreign exchange earners (US $ 3.2 billion in the lastdecade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly



enhance its competitiveness by empowering Indian farmers through the power of theInternet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a

huge rural distribution infrastructure, significantly enhancing the Company's marketing

reach.

ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, isaggressively pursuing emerging opportunities in providing end-to-end IT solutions,including e-enabled services and business process outsourcing.

ITC's production facilities and hotels have won numerous national and internationalawards for quality, productivity, safety and environment management systems. ITC wasthe first company in India to voluntarily seek a corporate governance rating.

ITC employs over 25,000 people at more than 60 locations across India. The Company

continuously endeavors to enhance its wealth generating capabilities in a globalizingenvironment to consistently reward more than 3,68,000 shareholders, fulfill theaspirations of its stakeholders and meet societal expectations. This over-arching visionof the company is expressively captured in its corporate positioning statement:"Enduring Value. For the nation. For the Shareholder."



Company History - ITC

1910

- On 24th August the Company was incorporated as a Private Limited Company under the name, Imperial Tobacco Co. of IndiaLtd. The Company manufacture and distributecigarettes and smoking tobaccos and specialty papers including cigarettetissue papers(Sole manufacturer in the country).

1953

- The Company acquired the manufacturing business of Tobacco Manufacturers (India)Ltd., and the Complementary Lithographic Printing business of Printers (India) Ltd.

1954

- The Company was converted into a Public Limited Company on 27th October.

1970

- The name of the Company was changed from the Imperial Tobacco Co of India Ltd.,to India Tobacco Co. Ltd., in May.

1972

- On October Company entered into hotel business.

1973

- Company received the approval of Govt. for setting up three Processing plants.

1974

- On 1st April name again changed to I T C Ltd.

1975



- ITC Ltd Purchased the net asset in India of India Leaf Tobacco Development Co. Ltd.

(UK).1979

The name of the Company's chain of hotels was changed from Welcome Hotels toWelcomgroup. The company entered into a Marketing Service and Reservations Agreement with the Sheration International Incorporated which was sanctioned by Govt.on 27th January.

1983

- A new Company under the name Gujarat Hotels was incorporated under a jointventure agreement signed between the Company and Gujarat Industrial InvestmentCorporation. This Co. had set up a 144-room hotel at Vadodara known asWelcomegroup Vadodara.

1987

- New brands viz., Wills Flake Premium Filter and Scissors Filter were introduced.Long-term agreements were entered into with the unions of factories located atCalcutta, Saharanpur and Munger. In Bangalore, however, working was affected by astrike for 114 days.

1988

- In May the company formed a new division called Agribusiness Division for carrying

out research and development on productionand distribution of high yielding cultivarswith emphasis on oil seeds, marketing of edible oils in bulk and consumer packs and export of agricultural produce.

- A Memorandum of Understanding was signed with the authoritiesto open an Indianrestaurant in Odessa, U.S.S.R.

- Different varieties of oilseeds under the brand name of ADARSH and cooking oilunder SUNDROP were launched.

- New investments were made in water and bulk liquid packaging project. TheCompany explored the possibility of setting up a new software development centre inIndia with ability to access Company's customers' computers abroad through datacommunicationLinks.

- A major part of the business of India Leaf Tobacco Development Co. Ltd., (U.K.)(ILTD) consisted of its operations in India where it operated as a sister concern of theCompany. ILTD was a pioneer in introducing Virginia tobacco to India and over theyear, developed into a highly efficient enterprise, besides being a very large exporter of



tobacco. The Company purchases, with effect from 1st April, 1975, the net assets inIndia of I LTD whereupon it became a division of the Company.

1990

- Refined mustard oil under the brand name REAL GOLD was Introduced in themarket.- On 1st April Tribeni Tissues Ltd was amalgamated with the Co.

1992

- Since January there was labour unrest at Tribeni Tissues papermill which led to alockout at the mill with effect from 27thMay.

- On 8th April, ITC Global Holdings Pte. Ltd was incorporated in Singapore a whollyowned trading subsidiary of the Company.

- During the same period a wholly owned subsidiary ITC Infotech Ltd. incorporated inUK with an authorised capital of US $ 2million and paid up capital of US lakh.

1993

- The Company successfully launched Hero brand Cigarettes.

- Two new brands viz., `Classic Milds' and `Hero' were launched at the premium andsmall-length ends respectively.

1995

- Company introduced CAPSTAN Menthol filter, CAPSTAN standard and Bristostandard and re-designed Gold Flake Kings and Berkley Filter. Further, Gold FlakeLights in King-size was Introduced into test markets.

1996

- The Company has launched `Classic Ultra Milds' and `Wills Natural Lights' brandsduring the year.

1997- ITC Classic Finance Ltd. was amalgamated with ICICI Ltd.

1998

- ITC has nearly 105 subsidiaries, which are involved in various kinds of operations.



1999

- Tobacco gaint ITC has raised its stake in paper and paperboards subsidiary, ITCBhadrachalam Paperboards, from 37% to 51% through a preferential allotment of equityshares. This follow the allotment, by the board of ITC Bhadrachalam Paperboards, of 1,91,20,000 No. of equity shares of Rs. 10 each for cash, at an issue price of Rs. 65 per share and 11% redeemable cumulative-preference shares of the face value of Rs100each, for cash, at par to promoter company ITC.

- ITC will set up a new tobacco processing department (TPD) because the increasedproduction will make it economical toprocess tobacco on site.

- The Anaparti factory of ITC Ltd -- ILTD division, received the Rajiv Gandhi National

Quality award for 1995.

2000

- ITC Infotech Ltd, the UK-based, wholly-owned subsidiary of the Company, andCompaq Computer (I) Pvt. Ltd. signed an MoU aimed at exploring businessopportunities for deploying e-enabled solutions.

- The Company has launched a project e-Choupal in Bhopal to Web-enable farmers tomake a beginning in agricultural e-trade.

- ITC Ltd its entry into retailing business by launching branded leisurewear apparels as part of its diversification strategy into new areas.

- The Company is hiving off its Infotech services businesses in India, the US and UKand merging them into a separate wholly-owned subsidiary.

- The IT division has entered into agreements with Compaq and expand the ITbusiness.

- The company set up the Lifestyle Retailing Business Division. A strategic BusinessUnit for the greeting cards business was set up under the Packaging and PrintingDivision.

- ITC has launched Wills Sport, a full range of internationally styled premium wear for men and women.

- Tobacco Company ITC launched a website, billed as `one stopterminus' for international customers of agricultural commodities. The website, WWW.itcibd.com,will provide information on trading of key commodities.



- The Company have set up units in the north-eastern States to avail of special

incentives relating to Central excise duties.

- On 21th August, ITC Infotech India Limited became a wholly owned subsidiary of the

company. Ansal Hotels Limited became a subsidiary of ITC Hotels Limited effectivefrom 12th July.

- The Board of the company has recommended an employee stock option scheme.

- Having carved a niche for itself by launching the first branded lifestyle apparel, WillsSport, in Delhi in July 2000,the Lifestyle Retailing Business Division of ITC Limited hasnow big plans up its sleeve.

2002

- ITC, Tobacco major, has launched Aashirvaad atta making its foray into Indian attamarket.

- ITC's greetings cards business and Maple Leaf have entered into Joint Venture whereMaple Leaf will exclusively manufacture pop-up cards for ITC.

- ITC Foods ands ITC Ltd, is finally foraying its way to the Rs 1,100 crore confectionerymarket. The foods division which has shifted office from Kolkata to Bangalore thismonth, has introduced its first confectionery product, acquired brand

Mintoin four cities.

-ITC Greeting Cards Business (ITC-GCB), has forayed into stationery productssegment with the launch of Expressions PaperKraft.

-ITC Limited has taken over Wills brand. ITC had to acquire the Wills brand in the US,before it takes Wills merchandise to America.

-ITC, now moves towards match business, it has diversified into the match business toearn more revenues from non-tobacco businesses.

2003

-ITC Ltd has informed to BSE that company's Spriha brand of natural incense sticks(Agarbathis) manufactured by Cottage Industries, a unit of the Sri Aurobindo UdyogTrust in Pondicherry was launched on February 21, 2003.

-ITC on April 04, introduced salt in the staple segment, as part of its efforts to clock a Rs500 crore sales in five years. Salt is the second offering from ITC Foods' staple



business in the past 10months, under the brand name of 'Aashirvaad'.

-Commences commercial production of paper using the environment-friendly ECF(elemental chlorine-free) technology at its Bhadrachalam unit in Andhra Pradesh

-Food wing of ITC eyes on 4 pc market share in biscuit market

-ITC unveils new brand of agarbattis

2004

-ITC Food launches a range of 'cooking pastes' under its ready-to-eat gourmetcuisine brand Kitchens of India and readymeal Aashirwad brand

-Completes the process of acquiring the paperboard manufacturing facility of BILTIndustrial Packaging Co Ltd. (Bipco) near Coimbatore in Tamil Nadu. The facility,

renamed 'unit Kovai', will operate as part of the paperboards and specialty papersdivision of ITC, which has a unit at Bhadrachalam in Andhra Pradesh.

-ITC unveils Sunfeast biscuits in Chennai

- ITC ties up with Israeli firm for e-channel.

2005

- ITC Ltd becomes one of the very few companies in India to obtain the coveted QualityManagement System certification ISO 9001:2000 for investor servicing.

- ITC Ltd wins 'Golden Peacock Global Award for Corporate Social Responsibility(CSR) in Emerging Economies for 2005'.

- ITC Ltd signs an MoU with Tripura Government for a bamboo developmentprogramme.

- ITC unveils new `5-in-1' agarbattis

-ITC unveils `Expressions Regalia'

-ITC e-Choupal gets Development Gateway Award

-ITC unveils Candyman Cofitino

2006-ITC forges alliance with Tilda for DNA-tested basmati



-ITC ties-up with Marubeni for food biz

2007

- ITCLtd. has informed that the Board of Directors of the Company at the meeting held

on July 27, 2007, appointed :

(i) Mr. A. Baijal, IAS (Retd.), as an Additional Director of the Company, representatingthe Specified Undertaking of the Unit Trust of India (SUUTI),

(ii) Mr. D. K. Mehrotra, Managing Director - Life Insurance Corporation of India (LIC)as an Additional Director of the Company,representing LIC,

(iii) Dr. R. K. Kaul, General Manager - National Insurance Company Limited, as an Additional Director of the Company, representing General Insurers' (Public Sector) Association of India,

(iv) Mr. P. B. Ramanujam, as an Additional Non-Executive Independent Director of theCompany, and

(v) Mr. S. B. Mathur , as an Additional Non-Executive Independent Director of theComp.

- ITC acquires Australian agri-biotech co.



FINANCIAL ANALYSIS OF THE COMPANY

ITC reported sales of Rs34.6b in 3QFY08 as against our estimates of Rs35.8b, while

PAT was Rs8.3b as against our estimates of Rs7.97b. Other income increased fromRs698m to Rs1,374m, led by higher yield on treasury investments

in debt instruments.

Cigarette volumes de-grew 1% YoY, which was better than our estimates of a 2%decline in growth. Cigarette business gross sales grew 7.6% and PBIT grew 16% asmargins expanded 190bp. We are reducing FY08 volume de-growth estimates from 3%to 2%, which indicates flat volumes in 4QFY08. Imposition of VAT in UP will reducestate tax on cigarettes from 33% to 12.5%, which will boost the profitability from4QFY08.

Paper & Paperboards reported 11.2% increase in sales and 13.6% increase in PBIT asmargins expanded 40bp. ITC is commissioning 1,20,000tpa pulp capacity in 4QFY08,1,00000tpa writing and paper facility in 1QFY09 and 90,000tpa paperboard capacity in2QFY09. Pulp plant will increase margins as production cost is expected to be 30-35%lower than the imported hard wood pulp prices .

New FMCG accelerated sales growth to 50% while PBIT losses increased 38.7%. Itreported a turnaround excluding Bingo, personal care and apparels business. Foodsgrew 60% as Bingo attained over 16% market share in major metros while Sunfeastbiscuits increased market share to 11.8%. Personal care products under Fiama Di Willsand Superia brands received good initial response.

We have increased other income estimates from Rs4.8b to Rs5.4b. We are increasingFY08, FY09 and FY10 EPS estimates to Rs8.3, Rs9.8 and Rs11.5 from Rs8.2, Rs9.5and Rs11.4 respectively. The stock trades at 19x FY10E earnings. Maintain Buy withSOTP-based target price of Rs242, a 14% upside.

Cigarettes – VAT imposition impact still unclear

Cigarette volumes de-grew 1% as against our estimate of a 2% decline in growth.Cigarette business reported 11.4% increase in net sales and 16.0% increase in PBIT as

PBIT margins expanded 190bp. Just 1% decline in the cigarette volumes showsconsumer resilience in a booming economy, despitemore than 20% price increase.Volume de-growthhas been mainly confined to lower priced non filter segments. Weestimate that cigarette volumes have declined 2.7%for 9mFY08. Weare reducing FY08volume de-growth estimates from 3% to 2%, which indicates flat volumes during4QFY08. Our FY09 volume growth estimate remain sunchanged at 5%. Themanagement has ruled out decline in cigarette volumes post implementation of thesame(pending before group of ministers). Implementation of VAT in UP with effect from



Jan 1, 2008 and concurrent withdrawal of trade tax in the state is a positivedevelopment. This will reduce the state tax from 33% to 12.5% and boost the profitmargins of ITC in the coming quarter.

Other FMCG business – topline growth accelerates; partialturnaround achieved

Processed foods growth accelerates: Other FMCG businesses posted strong growthof 50% YoY during 3QFY08. PBIT margin during the current quarter was -9.8%, 80bpimprovement on YoY basis. Branded packaged food business continued to expandrapidly with sale growth

of 60%. Other categories in the FMCG business continue to post strong growth withbiscuits growing by 58%, atta by 39% and confectionary by 38%. ITC has achieved a

16% market share in high growth salty snacks segment with its Bingo range of potatochips while Sunfeast biscuits increased its market share to 11.8%. Bingo is likelytoemerge as a major growth driver as it is yet to be rolled outin 50% of the targetmarkets. Aashirvaad Atta‟s new

product variant Aashirvaad MP Chakki Atta has got good consumer response and hasbeen extended to target

markets. ITC has emerged as a market leader in thissegment as per AC Nielsen datafor July-Sep 2007. Readyto Eat food under the brand Kitchens of India grew 63%duringthe quarter due to higher volumes of instant mixes and pasta.

Lifestyle retailing: Sales during the quarter grew by over 26% YoY. All the major lifestylebrands like „Classic‟, „Wills Sport‟ and „Wills Clublife‟ maintained growth momentumdriven by consumer franchisee expansions. During the quarter, the company added twomore stores, taking the retail footprint to 44 „Wills Lifestyle‟ stores, complemented by anexpanded network of John Players „exclusive brand outlets‟ and increased presence atreputed „large format‟ stores and „multi-brand‟ outlets. Lifestyle retailing is the onlysegment among the earlier FMCG businesses which is still in the red. We believe thatturnaround is still a couple of years away.

ITC enters personal care

ITC expanded the premium offering in personal care with the launch of Fiama Di WillsPolishing Drops (conditioner) and toilet soaps. Earlier launches of four variantsofshampoos and three variants of body washes have reported encouraging response.Superia brand of toilet soaps and shampoos, which target the mass market segment,



have gained acceptance from consumers and is now extended to four states. Themanagement has indicated at further extension of product range in the coming quarter

primarily driven by 12-15% increase in ARR (average revenue per room) coupled withbetter performance of food and beverages. The management has indicated that whileKolkata and Mumbai markets are strong, Bangalore is showing some softening of ARR.Occupancy levels during the quarter declined 1% due to renovation of the premiumTowers Block at ITC Maurya, New Delhi. The work on new properties in Bangalore andChennai is on track and Bangalore property is likely to start in FY09. The managementhas indicated a 10-12% increase in ARR in the coming quarters. We expect thisbusiness to report steady growth up to 12-15% in the coming quarters.

Paperboards and Paper: All set to change gears

The paper business reported an 11.2% increase in sales and 13.6% increase in PBIT as

margins improved by 40bp.This was driven by a 14% improvement in volumes of value

added portfolio of paper and paperboards coupled with robust performance of packaging business. The new 1,20,000tpa pulp mill project is nearing completion and isslated for commissioning in the last quarter of this fiscal. This will remove the need toimport hard wood pulp for ITC. In-house production of pulp is expected to be 30-35%cheaper,which will boost the profit margin of the company.

Agri business topline drops; margins expand

Agri business continued to reported decline in sales on account of restriction imposedby the government on export of non-basmati rice. Sales declined 9.4% while PBITincreased by 28.1% driven by robust growth in export of leaf tobacco. Cigarette leaf tobacco exports grew 37% during the Quarter. The management indicated that it hassuccessfully renegotiated pricing of its export orders to offset the impact of appreciatingrupee.

The rural distribution initiative made good progress, nearly doubling the channelthroughput. On the rural retail front, 21 „Choupal Saagars‟ are now operational in the

three states of Madhya Pradesh, Maharashtra and Uttar Pradesh while seven more areexpected to be commissioned in coming few months. Pilot project for retailing freshfruits and vegetables is moving smoothly. Three Choupal Fresh Cash & Carry Storesand six Choupal Fresh retail stores are currently operational at Hyderabad, Pune andChandigarh. The company has set up a comprehensive supply chain for ensuring theavailability of fresh products in the market, besides establishing direct linkages with the



farmers for sourcing farm fresh produce. We expect the company to start scaling up theinitiative only after achieving critical benchmarks in the pilot projects.

Hotels: Steady growth continues

Hotels business reported 11.4% increase in topline in 3QFY08 and 16.3% increase inPBIT. Sales growth was The company would commission 1,00,000tpa writing andprinting paper capacity in 1QFY09 and 90,000tpa paper board capacity in 2QFY09.Paper unit will drive growth based on strong forward linkages with the stationerybusiness. We expect this SBU to report acceleration in sales and profit growth fromFY09 as new units start contributing.

Valuation and view

We believe that ITC is growing from strength to strength. Cigarette volumes have shownconsiderable resilience and are expected to bounce back in FY09, except in case of sharp exciseincrease. Around 40-45% increase in paper capacity and new hotelproperties in Bangalore will start contributing from FY09. We expect that new FMCG willreport complete turnaround in FY10 only due to expenses related to new launches. Wehave increased other income estimates from Rs4.8b to Rs5.4b. We are increasingFY08, FY09 and FY10 EPS estimates to Rs8.3, Rs9.8 and 11.5 from Rs8.2, Rs9.5 andRs11.4 respectively. The stock trades at 19x FY10E earnings. Maintain Buy with SOTP-based target price of Rs242, a 14% upside.



ITC IN PATNA

ORGANIATION STRUCTURE

BRANCH MANAGER

ASSISTANT MANAGER ASSIATANT MANAGER ASSISTANT MANAGER

(FOOD) ( PCP) (CIGARATTE)

AM AM AM

AE AE AE

SPO ST SPO



Area of diversification

ITC has transformed itself from a leading cigarette manufacturer to an umbrella groupthat offers a diversif ied product mix to enhance its brand image and reduce

dependency on tobacco related products. It has forayed into the hospitality serviceindustry and has become a major player in the hotels segment. Its position in theFMCG(fast moving consumer goods) business is also on a growth curve;especially itsconfectionery and biscuits which are slated to achieve the top ranksamong its peers. It has made heavy investments to strengthen its IT (informationtechnology) segment and tocompete with the big players like Infosys andWipro. Although the ITC group ismarketing its image as an ideal corporate citizenand a company that takes its socialresponsibility seriously, it still earns 80% of revenues from selling cigarettes and other tobacco related products. The major areasin which ITC has diversified are:

FMCG

Cigarettes

Food

Lifestyle Retailing

Greetings and stationer

Safety Matches

Incense sticks

Hotels

Paperboards and Packaging

Paperboards and specialty paperpackaging

Agri-Business

Agri- exports

E- choupal

Information Technology



ITC in FMCG Sector

Cigaretteds

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 positionbecause of its single minded focus on value creation for the consumer throughsignificant investments in product design, innovation, manufacturing technology, quality,marketing and distribution.

The Company has been able to build on its leadership position because of itssingle minded focus on value creation for the consumer through significant investmentsin product design, innovation, manufacturing technology,quality, marketing anddistribution.

All initiatives are therefore worked upon with the intent to fortify market standing in thelong term. This in turns aids in designing products which are contemporary and relevantto the changing attitudes and evolving socio economic profile of the country.This strategic focus on the consumer has paid ITC handsome dividends.



ITC’s pursuit of international competitiveness is reflected in its initiatives in the overseasmarkets. In the extremely competitive US market. ITC offers high quality, value- priced

cigarettes and Roll- your- won solutions. In west Asia,ITC has become a key player inthe 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 level of quality,contemporary technology and work environment.

Foods

Ready to Eat:

Keeping alive long forgotten culinary traditions, „Kitchens of India‟ presents its range of ready-to-eat cuisines. Each one of these legendary delicacies has been created byMaster Chefs of ITC Hotels, following rare, closely guarded recipes, handed down

through the ages, from one generation to the next.

Bukhara

Bukhara, a village in Uzbekistan, was a meeting place for the traders from Asia andEurope. It was also a spot on the fabled Silk Route , a passage commonly used by

traders, scholars and nomads. It was on this route that the unique Bukhara style of cooking was born.

The Master Chefs of ITC Hotels have whipped up the delectable bite into history withthis cuisine from the North-west Frontier province with a masterpiece like dal Bukhara.

Dal Bukhara

Dal Bukhara is an exquisite culinary treat made from whole black lentils simmered withprized indian spices over a coal fire, for long hours on end.



Mirch ka salam Kheema Mutter

Mughlai panner Chicken chettina

Chicken darbari paneer darbari Murgh methi

Lagan ki boti Paneer malai



Kitchen of india’ Curry pastes

Butter chicken curry paste

Hyderabadi biryani paste

Fish curry paste

Vegatable biryani paste

chicken curry paste



Sunfeast (biscuit)

In 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie

and Cream Biscuits. Sunfeast‟s brand essence, "Spread the Smile"connotes happiness,contentment, satisfaction, and pleasure. The mascot sunny reinforce the emotional

aspects of the brand. In span of 6 year sunfeast has launched many new varients and

has its presence in almost all types of biscuit categories.

Sunfeast immediately established itself as a provider of innovative and distinctive

products - Sunfeast Marie was launched in an innovative orange flavour and the

'Sunfeast Dream Cream' range includes new flavours as well as flavour enhancers.

The Sunfeast Dream Cream range is currently available in 8 variants. The Company

has also introduced 'Sunfeast Dark Fantasy', a dark chocolate and vanilla

cream offering for the premium segment in select markets.

Riding on the success of its initial offering, ITC also entered the milk biscuit categarywith Sunfeast milk magic biscuit. Apart from milk which helps mental growth, thesebiscuit also contain the finest quality wheat adding physical growth.

In the last two years, the Sunfeast biscuits portfolio has been enhanced to includesalted crackers and cookies. The 'Sunfeast Snacky' salted crackers are available in2 unique variants – „Chilli Flakes‟ and „Classic Salted‟. Sunfeast's latest offering,'Sunfeast Special' biscuits are also available in select markets. The SunfeastSpecial range currently includes cookies in two variants – Butter and Cashew, as wellas cream biscuits in two variants – Choco and Orange.

The sunfeast product portfolio has been further expanded to include helthy snacksoption.sunfeast pasta treat is a whole wheat based instant pasta for children.after atremendous success of the 4 initial flovours, the instant pasta range has been exentedwith two new exciting flavours – pizza, and chicken. The pasta segment was further expanded With the launch of sunfeast benne vita in 4 innovative variants.



Confectionary:

ITC currently has two brands in the confectionery segment -'mint-o' and 'Candyman'.

'mint-o' was acquired by ITC from Candico in March 2002. ITC re-launched thecompressed mint offering, across all major markets in India, with new andimproved product and packaging. Available in the regular mint flavour with addedblue specks to enhance consumer experience,mint-o is also offered in innovative'Orange mint' and 'Lemon mint' flavours. 'mint-o' is available in two sizes – rolls of 20and 6, capturing the international essence of „youthful cool‟

ITC launched the 'Candyman' range of confectioneries in August 2002. Led by the'Candyman Fruitee Fun' range of assorted fruit flavours ('Wild Banana', 'PineapplePunch', 'Orange Josh' and 'Mango Delite'), the 'Candyman' portfolio nowincludes deposited candy products like 'Candyman Butterscotch Licks' and'Candyman Éclairs' (Choco flavoured as well as Vanilla Cream centre inside aButterscotch outer shell). The coffee toffee segment also saw the successfullaunch of 'Candyman Cofitino' in November 2005. Two new products – 'CandymanNatkhat Mango' and 'Candyman Maha Mango' were launched recently. The'Candyman' range of confectionery is targeted at ‘fun-filled, naughty kids’ who

seek a delightful candy experience through a range of candy types and flavours.

Bingo!

ITC's new snacks brand Bingo! marks the company's foray into the fast growingbranded snacks segment. The launch of Bingo! Represent ITC fifth major line of foodsbusiness after highly successful staples, biscuit,Ready to eat and confectionarybusiness.

The launch of Bingo! is symbolic of ITCs' distinct approach of introducing innovativeand differentiated products in a largely undifferentiated market place.



The initial offerings from Bingo! include an array of products in both Potato Chips &Finger Snacks segment. The Potato Chips offerings comprise four innovative variantsinspired by the snacking habits of different parts of the country as well as masala,salted and tomoto flavors.Additionally, a south- inspired dairy option has also beenintroduced under the potato chips offering.

ITC in Hotel Industry

ITC Limited entered the hotels business in 1975 with the acquisition of a hotel inChennai, which was rechristened Hotel Chola. Since then the ITC-Welcomgroup brandhas become synonymous with Indian hospitality. Today amongst India's finest andfastest growing hotel chains, it consists of over 70 hotels across as many destinations

in India. These include super deluxe and five star hotels, heritage palaces, havelis andresorts and full service budget hotels.

The 440-room ITC Maurya at New Delhi is not only amongst the leading business hotelin the country, but is in a class by itself. Complete with the 'ITC One', the hotel hasplayed host to a galaxy of world dignitaries, including Bill Clinton and Bill Gates. In fact,even as he was leaving the White House, the former US President nostalgically



recalled the memories of a fabulous Indian meal he and his family had at the Bukhararestaurant in the hotal.

Bukhara has been declared the best Indian Restaurant in the world, by ‘The

Restaurant Magazine; UK

In keeping with its plan to have a presence in every major business destination in India,ITC-Welcomgroup unveiled one of Asia's finest business resort, the 238-room ITCSonar in Kolkata on December 31, 2002.

Another landmark hotel - the ITC Grand Central in Parel, Mumbai was formallyinaugurated in January 2005. This five star deluxe property with 242 suites and roomsoffers international standards of service, state of the art amenities and culinaryexcellence.

ITC Mughal at Agra, a proud recipient of Asia's first Aga Khan Award for Architecture,is an outstanding resort hotel, lavishly spreading across 35 acres of beautifullylandscaped Mughal gardens.

ITC-Welcomgroup also pioneered a holistic concept of "branded accommodation" inthe hospitality industry. It was the first to launch the powerful idea of a 'Hotel within aHotel' by segmenting and branding the hotel services. It created the exclusive 'ITC

The 386-room ITC Maratha, opened in February 2001, is perceived as amongst theleading and the finest properties in Mumbai, designed in a grandiose classic style, thehotel pays tribute to Mumbai's colonial roots and the spirit of the great Maraths.



One', 'The Towers' and the 'Executive Club' each catering to the needs of the globalbusiness traveller with unmatched quality and a range of services.

In 2007, ITC-Welcomgroup entered a new phase in its collaboration with StarwoodHotels & Resorts. ITC-Welcomgroup now has an exclusive tie-up with Starwood inbringing its premium brand, the „Luxury Collection‟, to India. The seven hotels whichare part of this collection are: ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar

in Kolkata, ITC Grand Central in Mumbai, ITC Windsor in Bengaluru, ITC Kakatiya inHyderabad and ITC Mughal in Agra. The agreement also includes the rebranding of WelcomHotel New Delhi as a Sheraton, while the Chola and the Park in Chennai, andthe Rajputana in Jaipur retain their Sheraton connections.

The Welcome Heritage brand brings together a chain of palaces, forts, havelies andresorts that offer a unique experience. Welcom Heritage endeavours to preserveancient royal homes and the historical Indian grandeur, opulence of romance, valour and adventure for the future Indian generations. Welcom Heritage Hotels, provide afine range of hotel services inside these architectural legacies present in Rajasthan,Punjab, Himachal Pradesh, Madhya Pradesh, Uttaranchal, Jammu & Kashmir, West

Bengal, Tamil Nadu, Haryana and Karnataka.

Fortune hotels are a part of the well thought-out growth strategy that brings out the

mid-level business and leisure traveler under the ITC-Welcomgroup umbrella,

offering full service properties without compromising on quality. With a strong

presence at Ahmedabad, Thiruvananthapuram, Calicut, Darjeeling, Jamshedpur, Vapi,

Hyderabad, Gurgaon, Indore, Ootacamund, Madurai, Jodhpur, Tirupati and Port Blair,

it will be shortly commissioning several more hotels across India.



ITC in Agricultural Industry

ITC's International Business Division (IBD) is the country's second largest exporter of agri-products with exports of over Rs. 1000 Crores (Rs. 10 billion). Itsdomestic sales of agri-products are in excess of Rs. 1500 Crores (Rs. 15 billion). Itcurrently focuses on exports of :

Feed Ingredients- Soyameal Foodgrains – 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 fruit, organic fruit ,

Fresh fruits Coffee & Spices – coffee, Black pepper, Chilly, Turmeric, Ginger, Celery, and

other seed spices.

Although one of the relatively younger business divisions of ITC, it has, in a short spanestablished itself as a first-choice supply chain partner of several leading internationalcustomers. Its major customers include Cargill , marubeni , Toepfer, among others,who source agriculture commodities and food products from india. Its customer relationship management has enabled it to achieve a very high reputation for quality, reliability and value added services.

ITC's unique strength in this business is the extensive backward linkages ithas established with the farmers. This networking with the farming community hasenabled ITC to build a highly cost effective procurement system. ITC has madesignificant investments in web-enabling the Indian farmer. Christened 'e-Choupal',ITC's web plan for the farmer centres around providing internet kiosks in villages.

Farmer use this technology infrastructure to access on- line information from ITC‟sfarmer friendly website. Data access by the farmers related to the weather, cropcondition, best practices in farming, ruling international prices and a host of other relevant information.

Currently, the 'e-Choupal' website - www.echoupal.com - provides information tofarmers across the nine States of Madhya Pradesh, Haryana, Uttaranchal, Uttar Pradesh, Rajasthan, Karnataka, Maharashtra, Andhra Pradesh and Kerala. ITC plansto extend the 'e-Choupal' to cover 10 million farmers across 100,000 villages covering

15 Indian states.ITC‟s International Business Division, one of India‟s largest exportersof agricultural commodities, has conceived e-Choupal as a moreefficient supply chain aimed at delivering value to its customers aroundthe world on a sustainable basis.



ITC’s E- choupal

The e-Choupal

model has beenspecifically

designed totackle the

challengesposed by theunique featuresof Indian

agriculture,characterised by

fragmented

farms, weakinfrastructure

and theinvolvement of

numerousintermediaries,

among others.

‘e-Choupal‟ also unshackles the potential of Indian farmer who has been trapped in a

vicious cycle of low risk taking ability > low investment > low productivity > weakmarket orientation > low value addition > low margin > low risk taking ability. This madehim and Indian agribusiness sector gslobally uncompetitive, despite rich &abundant natural resources.

ITC in Paper IndustryITC is one of the world's most modern and

contemporary manufacturers of packaging and graphic series of boards. ITC's

Paperboards business has a manufacturing capacity capacity of 360,000 (TPA)tonnes per annum and is India's market leader across all carton- consumingsegments including cigarettes, foods, beverages, pharma, personal care &

Further, a growth in rural incomes will also unleash the latent demand for industrialgoods so necessary for the continued growth of the Indian economy goods . This willcreate another virtuous cycle propelling the economy into a higher growth trajector my.This will create another virtuous cycle propelling the economy into a higher growthtrajectory.



toiletries, durables and match shells. ITC makes some of the premium graphicboards used for greeting cards , covers, sleeves, tags and playing cards. The

Company produces both Virgin and Recycled boards spanning the full

requirement of packaging customer.

The erstwhile ITC Bhadrachalam Paperboards Limited was incorporated in 1975. It set up an integrated pulp and paper/board manufacturing facility in 1979 atBhadrachalam inAndhra Pradesh in South India, 300 kms. east of Hyderabad. Sincethen, the mill facilitieshave been continuously upgraded to achieveinternationallybenchmarked quality standards and operat ional efficiencies.

In 1998, the Paperboards business commissioned a new production line for coated boards. This production line incorporated Paper Machine 4, withoriginal capacity of 120,000 tonnes per annum (TPA)and finishing & packinglines sourced from internationally renowned suppliers. This machine has beenfitted with a sophisticated 'Web Detection and Inspection system' and since beenmodernized further with the addition of the latest web forming technology. The PM4board machine can deliver international quality boards for Cigarette, Liquid, Food andPharma Packaging by providing a flawless surface for print reproduction. To meet thegrowing requirement for high quality paperboards , PM5 was commissioned in 2003with a capacity of 80,000 TPA.

In September 2002, ITC's Bhadrachalam Paperboard Unit commissioned a 110,000TPA Elemental Chlorine Free (ECF) fibre line. This is a state-of-the-art fibre line and

ITC is the largest exporter of coated boards from India. The Company exports nearly15 percent of the coated boards it produces. Its coated boards fulfill exactingcustomer requirements inMalaysia, Sri Lanka, Bangladesh, Iran, Australia, UAE, UK,Italy, Poland and Russia.



the only one in India, which meets effluent norms, set by the Ministry of Environmentand Forests of the Government of India and Pollution Control Boards. Theproduct range has also been enhanced as ECF pulp uniquely fulfills the demandfor food-grade packaging and environment-friendly paper. To meet its growing needfor bleached pulp, a second ECF pulp line with a capacity of 120000 TPA is now

nearing completion at Bhadrachalam.ITC has set up India's first world-class plant for the manufacture of premiumCast CoatedBoards that meet highly sophisticated packaging andprintingrequirements. The Unit at Bollaram has beenexpanded further toaccommodate specialized converting production lines. ITC has added amodernPoly-extrusion line to its production facility, to meet the growing demand for food packaging and beverage cups.

ITC's Paperboards business has a strong customer focus. The Company'sPaperboards business devoutly practices a 'TPM' philosophy during each stageof manufacture. Lean management techniques have also been introduced inmaking the operations more responsive and efficient. Statistical Process & Qualitycontrol supplement the state-of-the-art on-line process controlsand scanning systems

in the production lines.

ITC is the premier manufacturer of Specialty Papers in India, with a diversifiedproduct portfolio.ITC's Specialty Papers are used in the manufacture of opaque

lightweight fine printing papers, cigarettes, papers for decorative laminates, electricalinsulation-grade papers , fireworks fuse tissue and automotive filter paper.

The Specialty Papers Unit of PSPD at Tribeni, Chandrahati, West Bengal aims toreach out and fulfill existing and emerging customers needs. The Unit reconfiguressystems and processes to meet specific customer requirements. Quality controlprocesses at the Unit are designed to ensure consistent high quality atevery stage of manufacture. On-line monitoring and documentation of production parameters are carried out for continuous correction andupdation of quality standards.A Product Development Team ensures Total Quality Management

(TQM) in all operations. The TQM group closely dovetails its operationswith marketing, production and research teams to ensure international standards inproducts and services. The business creates long-term product developmentsolutions on the basis of customer specifications and market trends.ITC hasdemonstrated strong capability in product development and research in pulp andpaper. The Company has collaborated with the United Nations Development

This Division pioneered the manufacture of Specialty Papers for the Indiancigaretteindustry in 1949. It currently offers a comprehensive range of CigaretteTissues, Plug Wrap, Tipping Base printed tipping papers and metallising Base.

.



Programme (UNDP) and the Government of India on research programmesto develop high quality pulp.

The Division exports cigarette tissues and décor paper for laminates to Iran, Turkey ,Nepal, and Bangladesh

ITC in ApparelsITC‟s Lifestyle Retailing Business Division has established a nationwide ret ailingpresence through its Wills Lifestyle chain of exclusive specialty stores. WillsLifestyle,the fashion destination, offers a tempting choice of Wills Classic work wear,Wills Sports.

And Fiama Di Wills – a range of premium shampoos and shower gels. WillsLifestylewear by leading designers of the country. has also introduced Wills Signature,designer With a distinctive presence across segments at the premium end, ITC hasalso established

John Players as a brand that offers a complete fashion wardrobe to the male youthoftoday. The recent launch of Miss Players with its range of trendy fashion wear for young women has been a successful addition to the youth portfolio. With its brands,

ITC is committed to build a dominant presence in the apparel market through a robustportfolio of offerings.Wills Lifestyle has been established as a chain of exclusive specialty stores providing the Indian consumer a truly 'InternationalShopping Experience' through world-class ambience, customer facilitation and clearlydifferentiated product presentation. Our stores have established themselves aspreferred shopping destinations in the prime shopping districts across the country.

Wills Lifestyle is now title partner of the country‟s most premier fashion event -Wills Lif estyle India Fashion Week. Taking the celebration of the event to itsstores, Wills Lifestyle has partnered with leading designers Rohit Bal, RajeshPratap Singh, Manish Malhotr a and Rohit Gandhi - Rahul Khanna to create a new

editionof Designer wear, which is now available at Wills Lifestyle

ITC InfoTech, a global IT services company, is today one of India‟s fastest growingIT andITES service providers. Since it's inception in October 2000, the company hasestablished itself as key player in offshore outsourcing, providing outsourced IT solutions



ITC in information technologyITC InfoTech conforms to the highest standards in international process quality

international process quality, with ISO 27001, ISO 9001,SEI CMM Level 5and BS 7799 accreditations. Thesereflect the company‟s ongoing

enterprise-wide focus toensure that ever y engagement, program andprojectdelivers international quality consistently.

Industry Recognition: Premier analyst and market research agencies have

recognizedITC InfoTech’s position as the preferred IT partner. It has been:

STRATEGIES OF ITC

The company enjoys the rare advantage of having a practitioner's expertise with a strongvertical focus in Consumer Packaged Goods (CPG) and Retail, Travel, Hospitality andTransportation, and Manufacturing - domains that its parent, ITC Limited, hastraditionally dominated - as well as in the main stay of technology service providers

ITC InfoTech offers services through a global delivery platform with a strength of over

2,000 employees and delivery centers across North America, Europe and Asia-Pacific

that serve Fortune-listed companies in 42 countries.

Featured amongst Top 100 Global Outsourcing Companies in theLeaders category – international Association of outsourcing professionals.

–

Ranked amongst Top 10 Specialty Application Development Providers - Global

Services, CMP Media .named among major Indian global services providers for plm implementation and engineering services -



ITC is a board-managed professional company, committed to creating enduring valuefor the shareholder and for the nation. It has a rich organizational culture rooted in itscore values of respect for people and belief in empowerment. Its philosophy of all-roundvalue creation is backed by strong corporate governance policies andsystems.

ITC’s corporate strategies are

• Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &

Packaging, Agri Business and Information Technology

• Benchmark the health of each business comprehensively across the criteria of Market

Standing, Profitability and Internal Vitality.

• Ensure that each of its businesses is world class and internationally competitive.

• Enhance the competitive power of the portfolio through synergies derived by

blending the diverse skills and capabilities residing in ITC’s various businesses

• Create distributed leadership within the organization by nurturing talented and focused

top management teams for each of the businesses.

• Continuously strengthen and refine Corporate Governance processes and systems tocatalyses the entrepreneurial energies of management by striking the golden balance

between executive freedom and the need for effective control accountability.

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

To enhance the wealth generating capability of the enterprise in a

globalising environment, delivering superior and sustainable stakeholder value

• Create multiple drivers of growth by developing a portfolio of world classbusinesses that best matches organizational capability with opportunitiesin domestic and export markets.



Sunfeast profile

:: Snack foods

Sunfeast

In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie and Cream Biscuits.

Sunfeast‟s brand essence, "Spread the Smile" connotes happiness, contentment, satisfaction and pleasure. The

mascot Sunny reinforces the emotional aspects of the brand. In a span of 6 years Sunfeast has launched many new

varieties and has its presence in almost all types of biscuit categories.

Sunfeast Milky Magic

Packed with goodness of milk these deliciously nutritious crisp and

crunchy biscuits are a favorite among mothers and kids. Milky Magic

has the „power of 2‟ - A perfect balance of energy that aids physical

strength and mental ability. These biscuits strike the right balance of

milk and wheat which helps in an all round development and nurturing

of the child.

Sunfeast Marie



Sunfeast Marie Light:

This ideal teatime biscuit is made from the finest quality wheat high in fibre

and keeps one light and healthy through the day.

Orange Marie :

It has the distinction of being one of the most successful innovative Mariebiscuits and is liked by one and all.

Sunfeast Golden Bakery

Sunfeast Golden Bakery is a premium cookie on an innovative and

differentiated platform. Launched nationally in March 2008, these

cookies are made from the recipes crafted by the master bakers of ITC

Hotels and are slowly baked in the traditional way till they are golden

brown and develop the crispy broken crust texture.

The Sunfeast Golden Bakery cookies are available in three distinct

flavours - Butter-Nut, Butterscotch and Choco-Nut cookies. These

products are designed to give consumers a rich & truly indulgent

experience.

Sunfeast Dark Fantasy

Inspired by the Master Chefs of ITC hotels, it is the richest of chocolate vanilla

biscuits. These biscuits are created using carefully chosen premium ingredients for

a sensory experience unlike any other. Dark Fantasy is more than a biscuit, it‟s a

luxurious mix of aromatic cocoa and vanilla.

Sunfeast Glucose

For those light hunger pangs, a wholesome & nutritious choice as these golden brown

biscuits are made from the best quality wheat. Sunfeast Glucose biscuits are ideal not

ust for kids but adults too.

Sunfeast Dream Cream

A truly scrumptious range of cream biscuits that have become an instant hit with children. ITC‟s chefs have put their

legendary skills into these biscuits to deliver truly tasty cream biscuits. Special Flavor Crystals in Strawberry andPineapple cream biscuits keep the creamy flavor linger on.

Strawberry Cream

The first of its kind cream biscuit with special

strawberry flavor crystals that will keep the

Bourbon

A special delight for all those chocolate



creamy flavor linger on. lovers.

Orange Cream

Experience a tangy twist in biscuits with

every Orange cream.

Butterscotch Cream

Another first, the taste of ice-cream in cream

biscuits.

Mango Cream

A special summer flavour cream biscuits for

all those who love the king of fruits.

Elaichi Cream

Taste the queen of spices in cream biscuits.

Sunfeast Snacky

Bigger than most others in the salted biscuit category, Snacky is light

and crispy like no other. From kids to adults, it‟s the quintessential

„Family Biscuit‟. Available in two variants, Classic salted and Chilli

flakes - the very first of its kind in India.

Sunfeast sweet 'n salt

These thin and crisp biscuits come with a distinctive sundry taste, that of

salt and sweetness. A bite into one of these one keeps wondering about

its taste!



Sunfeast Nice

These are crisp coconut biscuits showered with sugar crystals. The crisp sugary

sweetness will just go on to make all those nice moments nicer.

Sunfeast Benne Vita Flaxseed Biscuits

If Benne Vita in Italian stands for „Good Life‟, then Benne Vita

Flaxseed biscuits just make the good life better. The Flaxseed content

in these protein and mineral enriched biscuits are rich source of Omega

III acids that helps control cholesterol. Flaxseed is the richest plant

source of these essential Omega-3 Fatty Acids. It is also rich in dietary

fibre, proteins, calcium and other minerals to maintain healthy heart and good gut health.

Sunfeast Special

ITC Sunfeast presents a range of Special cookies and creams.

SpecialCookies:

Made with best quality wheat, cashew and butter, Sunfeast Special cookies are

baked with real butter and the finest ingredients to give a mouth-watering treat that

makes every moment special. Available in Cashew/ Butter/ Coconut.

SpecialCreams:

Delicious value for money cream biscuits with a thick layer of cream sandwiched

between two biscuits. Available in Orange and Chocolate variants.

Sunfeast Pasta

The Sunfeast product portfolio was expanded in early 2005 to include

healthy snacking options as well.

Sunfeast Pasta Treat, a whole wheat based instant pasta was introduced

as a healthy snacking option for children and young adults. After thetremendous success of the 4 initial flavours, (Masala, Tomato Cheese,

Cheese and Sour Cream), the instant Pasta range has been extended with

three new exciting flavours - Pizza style, Chicken and Tangy Tomato.



How ITC turned biscuits business around.

Biscuits and tea in the morning were a routine. So were the key market players and

their favourite products.. The two major players Britannia [Get Quote] and Parl

were busy biting of chunks of the national market among themselves, with a host osmaller brands in various regions.

While the business was still very competitive, there wasn't anything groundbreaking. In

2003, with ITC foraying into the segment, a lot of that changed.

At that time, Britannia and Parle held, between them over 82 per cent of the market in

value terms. The rest too was firmly held by smaller players like Priya Gold which had

a strong presence in the north. So, in essence, the market already had strong well

entrenched players. So how could a late entrant like ITC make its mark?

Six years down the line, however, things have changed a lot. It is a classic story of the

hare and the tortoise. While it is far from winning the race, slowly and steadily, the

tortoise is gaining ground.

The late entrant is already on the podium in the third place with as much as 7 per cent

of the market in terms of value. "ITC made hay when the sun wasn't shining," says a

consultant who's been tracking the industry for a long time. But first, why did ITC train

its eye on biscuits? Ravi Naware, chief executive, ITC Foods, makes it sound simple.

"We decided to enter the foods segment because it's a Rs 550,000 crore (Rs billion)market in India. But only 6 per cent of this is branded and packaged. In developed

markets, nearly 95 per cent of the food market is branded and packaged. So there was

lot of scope for a branded player

In foods, biscuits was tempting. The Rs 4,000-crore (Rs billion) Indian biscuits market

has grown at 12-14 per cent year-on-year. Then, there was a business synergy. ITC

was already value-adding to wheat with its branded atta presence. By entering the

biscuits segment, it could also improve its bottomline further.

But despite the fast growth rates, the biscuits industry was not all rosy. Over the years,

even giants like Hindustan Lever had failed. For instance, HLL which had flirted with

biscuits under the Max brand exited in 2005. But ITC's Sunfeast has a different story to

tell so far. the strategist looks at the gameplan of a late entrant and how the biscuits

industry has responded.

http://money.rediff.com/money/jsp/quote_process.jsp?query=britannia%20industries%20ltd

http://money.rediff.com/money/jsp/quote_process.jsp?query=britannia%20industries%20ltd



New recipe

Before entering the segment, ITC dug into market research. Research revealed that

the category had gaps which ITC could settle into. Findings revealed that consumers

wished to taste new and innovative products. That was precisely what the competitionhad not done in a big way.

Says Naware, "The biscuits industry had witnessed little innovation; Glucose was

Glucose and Marie was still Marie." The company decided that this could be its biggest

point of attack. In 2003, ITC launched Sunfeast with six ranges. But it was a calculated

risk. ITC stuck to category favourites like Glucose, Marie and Bourbon cream

Along with that, it also launched innovations such as orange-flavoured Marie, Marie

light and butterscotch-flavoured cream biscuits. In 2004, Sunfeast followed this up with

the launch of Sunfeast Milky Magic. More recently, it also has launched the SunfeastSnacky and Sunfeast Golden Bakes.

Analysts believe that just because Sunfeast was a new brand, helped matters. Says a

consultant, "The biscuits industry had not witnessed any major product innovation in

years. Consumers were just waiting for something new, something fresh, when

Sunfeast happened."

Even the competition had not made things better. Between 2000 and 2005 neither

Parle nor Britannia launched any major new product. Yes, Britannia did re-launch its

Tiger brand in 2005.

But Britannia claims that it is looking at more than just products. Richa Arora, general

manager and head of marketing and innovations, Britannia Industries, says, "We are

not just looking at new products, but tapping newer opportunities -- such as different

occasions as well as out-of-home consumptions."

In 2005, before Diwali, Britannia launched Occasions -- boxes of assorted biscuits

priced between Rs 50 and Rs 200 -- which the company claims has been very

successful.

In 2006, however, the industry has seen a flurry of innovations from the big two.

Digestive Marie -- was launched by Parle in early February 2006. Britannia launched its

new double-flavoured Mariegold and 50-50 Chakkar. And Parle is all set to launch at

least two new products before the end of this year.



Distribution maze

It's common knowledge, that for FMCG products, distribution channels are very

important.

Says Pravin Kulkarni, general manager, marketing, Parle Products, "For biscuits,

distribution and visibility are extremely important as it's partly a impulse purchase

product." And in biscuits, setting up a distribution channel is anything but easy.

Consider this. Priya Gold, which entered the western region in 2000, is struggling to

find its feet even eight years later.

However, in this regard, Sunfeast has been fortunate: thanks to its tobacco business,

ITC already had a good understanding of distribution channels.

The company used its existing network of convenience stores -- the company's name

for the hole-in-the-wall pan-beedi shops -- for Sunfeast. Not content with the existing

resources, the company also looked at grocery stores and other retail formats.

The company says the brand is now available in nearly 1.8 million outlets. Britannia

claims it has a superior distribution clout with its presence in nearly 3.3 million outlets.

Parle, the seasoned player itself, says it is available in 1.5 million outlets. Sunfeast's

next step was to step up its branding and promotion.

Ad thrust

In August 2003, a month after its launch, the company undertook a major sampling

exercise to promote the product. For two years then, the brand did all the usual rounds

-- riding behind buses, blocking television spots, booking that corner space in your

favourite newspaper and so on.

Well differentiated advertisements, some which showed a complete cream world with

cream rivers, cream mountains and cream trees, were targeted at kids watching

cartoon channels.

At the same time, on general entertainment channels, mothers received information on

the importance of glucose, the wholeness of wheat and so on. Also, the company tied

up with Bey Blades, the popular television series that was a rage among children, to

promote itself.



In April 2005, Sunfeast launched its major campaign. It signed on Hindi film actor, Shah

Rukh Khan as its brand ambassador.

In the same year, as the official sponsor of the WTA tennis championship -- titled the

Sunfeast Open -- the company had teenage sensations Sania Mirza and Mahesh

Bhupathi campaigning for it. But that's not all. For promotions in southern states,

Sunfeast has signed Tamil super star Surya as a brand ambassador.

Analysts say that ITC's deep pockets have helped Sunfeast in many ways.

The company claims that it has been spending 35-40 per cent of its turnover from the

biscuits segment on advertising and promotions. Going by that number, ITCs annual

marketing spends are estimated to be in the region of about Rs 115-120 crore (Rs

billion).

Until last year, Priya Gold spent close to Rs 45-50 crore (Rs billion), nearly 10 per cent

of its turnover on marketing. Even market leader Britannia with spends of Rs 100 crore

(Rs billion) (2004-05) spends about 10 per cent of sales on marketing.

But Arora says that the figure will increase substantially in 2006-07. ITC is clearly

among the largest spender on ads and promotions in the biscuits category.

Analysts predict that these figures are all set to rise this year. But industry experts

aren't impressed.

Says a consultant, "Although Sunfeast's Shah Rukh Khan association is interesting, it

is yet to do something groundbreaking, like Britannia khao world cup jhao or the

Lagaan promotion for that matter."

Pricing models

The biscuits industry now has two clear models. Parle products plays the low price

game at all varieties of biscuits from glucose to cream.

Essentially, Parle plays a high volume, low margin game. But Britannia and Sunfeastlook at a two-pronged strategy. High margins in cream variants and volumes from the

Marie and Glucose segments.

For instance, cream biscuits from both Britannia and Sunfeast cost Rs 10 for 100

grams. Parle, however, only charges Rs 5 for its cream variants. Except for Hide &

Seek, all of Parle's products lie in the price range between Rs 4 and Rs 6 for 100 gram



packs.

To be fair, in Glucose and Marie, the companies have little choice. As there is little

differentiation, consumers are extremely price sensitive. But these segments are

important. Marie and the popular glucose varieties make up for nearly 55 per cent of

the Rs 4,000 crore (Rs billion) biscuits segment -- a significant Rs 2,200 crore (Rs

billion).

Says Sunil Alagh, chairman, SKA Advisors, and former CEO of Britannia Industries,

"the biscuit consumer is willing to pay more only when he sees a clearly differentiated

product. Hence companies have little choice in terms of pricing." No wonder all the

Glucose and Marie variants straddle price points of Rs 4-6 (for 100 grams).

Key challenges

Back in 2003, nobody thought Sunfeast would have consumers eating out of its hands.

Says Naware, "Seven per cent in less than three years is something that we could

have only dreamt about."

Importantly, industry barometer AC Nielsen has indicated that both Parle and Britannia

are losing market shares. According to the AC Nielsen retail sales audit in March 2006,

both Britannia and Parle have lost volumes. Britannia's shares have dropped from 35.8

per cent in 2004-05 to 30.5 per cent in May 2006 (volumes). Parle's shares have also

dropped from 42.2 to 38.4 per cent in the same period.

Even Priya Gold has seen a minor dip from 6.4 per cent to 5 per cent. ITC's Sunfeast

has been a big gainer with its share increasing from 2.7 to 6.7 per cent.

In terms of value, Britannia leads the market with 37 per cent market share, followed

by Parle's 31.3 per cent and ITC's 6.3 per cent. Nevertheless, the gap is still wide.

Sunfeast still has a long way to go.

But what can the bigger players do? Alagh has an interesting observation. Says he,

"Biscuits have always been a low margin, high volume game. Both Britannia and Parle

have very high volumes and can easily afford to lower their margins."

A potential after-effect? Sunfeast too may have to drop its prices to be in the reckoning

and this will squeeze its margin even lower. While the full game is yet to be played

outfor the moment the sun seems to be shining on Sunfeast.



Creaming the market

Innovation in the product line -- biscuits with butterscotch cream with actualgranules in the cream, strawberry cream with flavour-enhancers and orange

flavoured marie. Gained an edge from the well established distribution network of its tobacco

business. Signed up big film stars like Shah Rukh Khan and southern star Surya as brand

ambassadors for Sunfeast. Branded the WTA tennis tournament with promos starring tennis stars, Mahesh

Bhupati and Sania Mirza

Needs further embellishments

Big brand ambassadors, but not strong enough advertising campaigns for bigbrand recall. The gap between the number three and the top two slots is too wide. Competitors can play the low price game as they have volumes to support



CATOGARY SUNFEASTBISCUIT

SUB-

CATOGARY

VARIENT SKU MRP(1 PKT) PTS(1KG)

SF GLUCOSE 19G 1 RUPEE

38.5G 2 RS 40.61 RS

58G 3 RS 40.44RS

82.5G 4 RS

187G 10 RS

418G 20 RS

MARIE

LIGHT 171G 13 RS 49.9 RS

224GPLAIN 306G 21

ORANGE 171G 13

MILK MAGIC 85G 7

100G

150G 10

SALTED 70.6G 7

CHILLI 70.6G 8

SWEET n SALT

75G 7

200G 16

COOKIES BUTTER

SCOTCH

90G 10RS

180G 18

SPECIAL

BUTTER

62G 5RS

250G 20

SPE CASHEW 62G 6

250G 20

CREAM ORANGE 65G 5

195G 15

CHOCO 65G 5

195G 15

PINEAPPLE 90G 10



CATOGARY PARLE

BISCUIT

SUB-

CATOGARY

VARIENT SKU MRP(1 PKT) MARGIN OF

STOCKISTPARLE-GGLUCOSE

16.5G 1RUPEE 3.5%

38.5G 2RS 3.5%

60.5G 3RS 3.5%

82.5G 4RS 3.5%

99G 5RS 3.5%

209G 10RS 3.5%

313G 15RS 3.5%

418G 20RS 3.5%

MILK SHAKTI 75G 5RS 5%

150G 10RS 5%

CREAM ORANGE 80G 5RS 5%

160G 10RS 5%

ELACHI 80G 5RS 5%

160G 10RS 5%

PINEAPPLE 80G 5RS 5%

160G 10RS 5%

MANGO 80G 5RS 5%

160G 10RS 5%

MONACO ROLL 75G 5%

120G 5%

240G 5%

FUNION 75G 5%

120G 5%

75G 5RS 5%

150G 10RS 5%NAMKIN 75G 5RS 5%

120G

MONACO ZIRA 75G

120G

KRACKJACK 75G 5RS 5%

120G 10RS 5%



240G 20RS 5%

20-20 BUTTER 65G 5RS 5%

117G 5%

225G 5%CASHEW 65G 5%

117G 5%

215G 5%

MARIEDIGESTIC 77G 5RS 5%

170G 5%

226G 5%

PARLE MARIE 10.34G 5%

77G 5%

226G 5%336G 5%

HIDE & SAKE COFFEE 100G 5%

200G 5%

600G 5%

MINT 100G 5%

200G 5%

600G 5%

ORANGE 100G 5%

200G 5%

600G 5%CHOCO 100G 5%

200G 5%

600G 5%



CHAPTER- 3

RESEARCH METHODOLOGY



RESEARCH METHODOLOGY

This chapter describes the methodology of the study. This project is based oninformation collected from primary sources. After the detailed study, an attempt hasbeen made to present comprehensive analysis of performance of ITC sunfeast biscuitversus britinnia and parle, consumed by the people. The data had been usedto cover various aspects like consumption, retailer‟s preference and retailer‟ssatisfaction, customer preference and satisfaction regarding sunfeast britinnia andparle. In collecting requisite data and information regarding the topic selected, I went tothe retailers and customer of patna 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 onthe basis of convenience.

Sample Size and Design:

A sample of 100 people was taken on the basis of convenience. The actual customer and 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 questionsincluded were open ended, dichotomous and offered multiple choices.



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

Primary Source: The primary data comprises information survey of “Comparative study of retailer and customer behavior towards ITC sunfeast britinniaand parle ”. The data has been collected directly from respondent with the help of structured questionnaires.

Secondary source: the secondary data was collected from internet and reference from

library.

Data Analysis:

The data is analyzed on the basis of suitable tables by using mathematicaltechniques. The technique that I have used is bar graphs.



CHAPTER- 4DATA ANALYSIS

AND

INTERPRETATION

BASED ON CONSUMERS



ANALYSIS OF THE STUDY ON CONSUMERS

HOW DO YOU COME TO KNOW ABOUT SUNFEAST BISCUIT.

FACTORS NUMBER OF RESPONDENTS

ADVERTISEMENT 60

FAMILY / FRIEND 20

RETAILER 15

ANY OTHER 5TABLE:1

chart-1

From the above analysis of given sample of 100 respondents it is concluded that out of 100

people 60 people know sunfeast biscuit through advertisement while 20 people through

family and 15 people follow by retailers.

0

10

20

30

40

50

60

60

2015

5 N O O F C O

N S U M E R S

FACTORS

FACTORS AFFECTING AWARENESS



AWARENESS ABOUT SUNFEAST [ ITC brand ]

chart-2From the above analysis out of 100 people 76 people know that sunfeast is of ITC brand.

But 24 people donot know about this.

0

10

20

30

40

50

60

70

80

YES NO

76

24

N O O F C O N S U M E R S

AWARENESS

SUNFEAST IS ITC BRAND



WHICH FEATURE OF SUNFEAST INSPIRE YOU TO BUY

FEATURES NUMBER OF RESPONDENTSQUALITY 55PRICE 5QUANTITY 5PACKAGING 23 ANY OTHER 7

CHART-3From the above analysis out of 100 people 55 people Like the quality of sunfeast and 23

people like their packaging.

55

5

5

23

7

FEATURE OF SUNFEAST

QUALITY

PRICE

QUANTITY

PACKAGING

ANY OTHER



REASON FOR SWITCHING OVER TO OTHER BRANDS

REASONS NO OF RESPONDENTSTO CHANGE THE TASTE 53DUE TO OFFERS ON OTHER 21ECONOMICAL (PRICE) 13HABIT 11 ANY OTHER 2

TABLE:4

CHART-4

From the above analysis out of 100 people 55 people switching over to other brand due to

change taste and 21 people due to offers and value added products .

010

20

30

40

50

60

CHANGE

TASTEPRICE

HABITOFFERS

OTHERS

53

13

11

21

2

N O O F R E S P O N D E N T S

SWITCHING OVER TO OTHER BRAND



WHICH BRANDS COMES IN YOUR MIND FIRST WHENPURCHASE BISCUIT

BRAND NO OF RESPONDENTSBRITINNIA 48SUNFEAST 19PARLE 29OTHER 4

Table: 5

CHART: 5

From the above analysis out of 100 people.. there are 48 people first preference is britinnia,

29 parle, 19, people sunfeast, and 4

0

5

10

15

20

25

30

35

40

45

50

BRITINNIA SUNFEAST PARLE OTHER

48

19

29

4 N O O F R E S P O N D E N T S

BRAND

BRAND LOYALITY



WHICH CATOGARY OF BISCUIT YOU LIKE MOST.

TABLE: 6

SUB CATOGARY NO OF RESPONDENTS

GLUCOSE 23SNACKY 18CREAM 44MARIE 9 ANY OTHER 6

CHART- 6

From the above analysis out of 100 people.. there are 44 people who likes cream biscuit

and at the second 23 people said they likes glucose biscuits.

23

16

44

116

CUSTOMER CHOICE

GLUCOSE

SNACKEY

CREAM

MARIE

OTHER



PACKAGING DO YOU LIKE MOST.

TABLE: 7

PACKAGING NO OF RESPONDENTS PARLE 20BRITINNIA 36SUNFEAST 40 ANY OTHER 4

CHART-7

From the above analysis out of 100 people.. there are 40 people who likes SUNFEAST

packaging and at the second 36 people likes Britinnia biscuits packaging.

0

5

10

15

20

25

30

35

40

SUNFEAST BRITINNIAPARLE

OTHER

40

36

20

4

N O O F R E S P O N D E N T S

COMPANY PACKAGING



DO YOU FIND SUNFEAST BISCUIT IN YOUR NEAR OUTLET

TABLE- 8

SUNFEAST OUTLET NO OF RESPONDENTS

YES 91NO 9

CHART-8

From the above analysis out of 100 people . 91 people say, they find sunfeast in near outlet

in patna.

NO OF OUTLET

YES

NO



PRICE CATOGARY SUITABLE FOR YOU

TABLE- 9

PRICE CATOGARY NO OF RESPONDENTS

5 3810 3415 1420 625 8

CHART- 9s

According to the above analysis it is concluded that in 100 people 38 people like 5 rupee

pack while 34 people like 10 rupee pack.

38

34

14

68

NO OF RESPONDENTS OF PARTICULAR CATOGARY

5 RUPEE

10 RUPEE

15 RUPEE

20 RUPEE

25 RUPEE



CHAPTER- 5

FINDINGS

SWOT ANALYSIS

SUGGESTION

CONCLUSIONS



FINDINGRETAILER RESEARCH:

Retailer research deals with retailer and their problems and solution to the problems. In

this I came to know about the retailers need and expectation levels regarding products

and ascertainable levels of satisfaction.

CUSTOMER REASEARCH:Customer research deals with customer and their problem and solution to the problems. In this

I came to know about the customer need and expectation levels regarding products and

ascertainable levels of satisfaction.

PRODUCT RESEARCH:

Under product research I came to know about the modification which customer, retailers

wants as to the quality, packing, shape, color, and quantity etc of their favorite biscuit.

PRICING RESEARCH:This includes ability to consume, to pay for the product,how much a‟ person can spendon his/her favorite biscuit. In this I have tried to find out retailer ‟s price expectations andreactions.

ADVERTISING RESEARCH:

Under this I have concluded that whether the advertisement appeals the customersand retailers or not. This also includes evaluating and selecting the proper media-mix and measuring advertising effectiveness.



SWOT ANALYSIS

STRENGTHS:

1.ITC is one of India's foremost private sector companies.

2.ITC leveraged it traditional businesses to develop new brands for new segments. . For example, ITC used its experience of transporting and distributing tobacco products

to remote and distant parts of India to the advantage of its FMCG products. ITCmaster chefs from its hotel chain are often asked to develop new food concepts for itsFMCG business.

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

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

5.ITC has a diversified presence in Cigarettes, Hotels, Paperboards & SpecialtyPapers, Packaging, Agri-Business, Packaged Foods & Confectionery, InformationTechnology, Branded Apparel, Personal Care, Stationery, Safety Matches and other

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

7. ITC is a diversified company trading in a number of business sectors including

cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel,

personal care, greetings cards, Information Technology, safety matches, incense sticks

and stationery.

WEAKNESSES:

1.The company's original business was traded in tobacco. ITC stands for Imperial

Tobacco Company of India Limited. It is interesting that a business that is now so

involved in branding continues to use its original name, despite the negative connection of

tobacco with poor health and premature death.

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

tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that

in itself is responsible for 80% of its profits. So there is an argument that ITC's move into



FMCG (Fast Moving Consumer Goods) is being subsidized by its tobacco operations. Its Gold

Flake tobacco brand is the largest FMCG brand in India - and this single brand alone holds

70% of the tobacco market.

OPPORTUNITIES:

1.Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be

developed using strategies of market development, product development and marketing

penetration.

2.ITC is moving into new and emerging sectors including Information Technology,

supporting business solutions.

3.E- Choupal is a community of practice that links rural Indian farmers using the

Internet. This is an original and well thought of initiative that could be used in other sectors in many other parts of the world. It is also an ambitious project that has a goalof reaching 10 million farmers in 100000 villages. Take a look at e-choupal.http://www.itcportal.com/agri_exports/e-choupal_new.htmITC leverages e-

Choupal in a novel way.

4.The company researched the tastes of consumers in the North, West and East of India of

atta (a popular type of wheat flour), then used the network to source and create the raw

materials from farmers and then blend them for consumers under purposeful brand names

such as Aashirvaad Select in the Northern market, Aashirvaad MP Chakki in the Western

market and Aashirvaad in the Eastern market. This concept is tremendously difficult for

competitors to emulate.

5.Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate into the

country's premier FMCG business. Per capita consumption of personal products in India is

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

fragrances under their Wills brand.

THREATS:

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

2.ITC's opportunities are likely to be opportunities for other companies as well. Therefore

the dynamic of competition will alter in the medium-term. Then ITC will need to decide

whether being a diversified conglomerate is the most competitive strategic formation for a

secure future.

3.The laws of economics dictate that if competitors see that there is a solid profit to be



made in an emerging consumer society that ultimately new products and services will be

made available. Western companies will see India as an exciting opportunity for

themselves to find new market segments for their own offerings.

4.Duplicate items are available in abundance at much lesser rates. This affects the

company financially and adversely affects its goodwill.

SUGGESTIONS AND RECOMMENDATION

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.

parle company should concentrate on its packing as people are least satisfied with

it while ITC sunfeast should concentrate on the shape of their candy.

People are unsatisfied with the price and quantity of sunfeast so companies

should concentrate in this regard also. Competitors can play the low price gameas they have volumes to support

CONCLUSION A survey of the people has been conducted to know the liking pattern of the ITCsunfeast, britinnia, parle. It is observed that overall retailers like to buy britinnia andparle rather than sunfeast due to new brand. It is concluded that mostly peoplepreferred ITC sunfeast cream biscuit due to its flavor/taste, quality and image . Some

people often like to have a biscuits with good flavor, quality and crunchiness so theyare going towards biscuits of sunfeast due to its taste and .

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.



CHAPTER-6

ANNEXUR

QUESTIONNAIRE

PROJECT REPORT ON CUSTOMER, RETAILER PREFERENCE TOWARDS

ITC SUNFEAST, BRITINNIA, PARLE.

1. How do you come to know about sunfeast biscuit.

a. advertisement b. family/ friend c. retailer d. any others.

2. Do you know sunfeast is from ITC brand.

a. yes b. no

3. which feature of sunfeast inspire you to buy.

a. quality b. price c. quantity d. packaging e. any other.

4. why do you sift from one brand to another brand.



a. to change your taste. b. due to offer/ scheme. c. quantity.

d. cheap price e. quality f. anything else.

5. when do you think of purchasing a biscuit which brand comes in your mind.

a. britinnia b. sunfeast c. parle d. any other.

6. which catogary of biscuits you like most.

a. Glucose b. snacky c. cream d. marie e. any other.

7. packaging do you like most ?

a. Parle b. britinnia c. sunfeast d. bisk farm e. any other.

8. do you find sunfeast biscuit in your near outlet.

a. yes b. no

9. you want any change in sunfeast like.

a. test b. price c.quantity d.quality e. packaging.

10. price catogary suitable for you.

a. 5 b. 10 c. 15 d. 20 e. 25



CHAPTER-7

BIBLIOGPHY

1. BOOKS/MAGAZINES REFFERED

Marketing Management by “Philip kotler”

2. WEBSITES REFFERED:

http://www.itcportal.com

WWW.project paradise .com

WWW. Scribed.com

http://www.itcportal.com/



britania vs. sunfeast

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