A Report

On

Understanding the Strategy and Requirement for ITC Stationary Supply

Submitted to

XIMJ

Xavier Institute of Management, Jabalpur

As Partial Fulfilment of the Requirements for the

Post Graduate Diploma in Management

June 2014

Under the Guidance of

Dr. Namrata Vasudeo Jasrotia

Submitted by

Siddharth Gupta

Xavier Institute of Management Jabalpur (XIMJ)

(An Educational Unit of Xavier Institute of Development Action and Studies-XIDAS)

Mandla Road, Tilheri, Jabalpur (MP)

2

Declaration by the Student

I, hereby, declare that I underwent the Summer Internship Programme and I have prepared the

report titled “Understanding the strategy and requirements for ITC stationery supplies”

which has been submitted as partial fulfillment of the requirements for the Post Graduate

Diploma in Management (2014-16).

I also declare that this is the result of my original work and it has not been submitted anywhere

else for award of any other degree/diploma.

[Siddharth Gupta]

Signature:

Date:

3

Certificate by the Guide

This is to certify that Siddharth Gupta has carried out the Summer Internship Programme and

prepared a report titled “Understanding the strategy and requirement for ITC stationery

supplies”, as partial fulfilment of the requirements for the Post Graduate Diploma in

Management (2014-16), under my guidance.

It is also certified that the report presented embodies the original work of the student. The

present report can be forwarded for evaluation.

[Dr. Namrata Vasudeo Jasrotia]

Signature

Date:

4

Acknowledgement

I would, at the very onset, like to thank Mr. Rahul Barua, Assistance Manager ESPB-Kolkata

ITC Classmate, ITC Limited for providing me the opportunity to perform my Summer

Internship Program in the Company.

I, would like to, thank Mr. Sujay Samaddar Area Executive ESPB-Kolkata for mentoring and

providing the necessary data and information as and when required throughout the project.

Their support and encouragement has been a source of inspiration for me and made my journey

in ITC Classmate a delight.

I would also offer my thanks to all the Wholesale Dealer and Distributor Salesman, Kolkata.

Lastly, I would like to thanks to the almighty and my parents for their moral and financial

support and my colleagues with whom I shared my day-to-day experiences and received lots

off suggestions that improved my work quality.

5

TABLE OF CONTENTS

Particulars Page No.

Declaration by the Student II

Certificate by the Guide III

Acknowledgement IV

Table of Contents V

List of Tables VI

List of Figures and Charts VI

List of Abbreviations VII

Executive Summary VIII

Serial No TITLE Page No.

1. Chapter -1, INTRODUCTION 9-13

1.1 Background of the study 9

1.2 Literature Review 10-11

1.3 Need of the Study 12

1.4 Objectives 12

1.5 Section Details 13

2 Chapter-2, RESEARCH METHODOLOGY 14-18

2.1 Research Design 14

2.2 Sampling Design 14-16

2.3 Source and Type of Data 17

2.4 Research Tools 17

2.5 Method of Data Analysis 18

2.6 Constraints of the Study 18

3 Chapter -3, ORGANIZATIONAL PROFILE 19-24

3.1 Historical Development of Organization 19

3.2 Vision and Mission and Positioning 20

3.3 Goal 21

3.4 Main Activities 22-23

3.5 Main Achievements 24

4.0 Chapter-4, ANALYSIS AND DISCUSSION 25-34

4.1 Analysis and Interpretation 25-34

5 Chapter-5, SUMMARY AND CONCLUSIONS 35-36

5.1 Summary of Findings 35

5.2 Conclusions 36

6.0 Chapter-6, BIBLIOGRAPHY

ANNEXURES

37

38-39

6

LIST OF TABLES

TABLE

NO.

TITLE PAGE

NO.

2.1 Census of INDIA

17

4.1 Frequency of DS 26

4.2 Order Delivery Time 27

4.3 Order Delivery Time of Competitors 28

4.4 ITC Distribution Channel 29

4.5 Distribution Complaints 30

4.6 Services of ITC 31

4.7 Availability of Stationary Products in Retails 32

4.8 Margin given by ITC 35

LIST OF FIGURES AND CHARTS

FIGURE

NO.

TITLE PAGE NO.

2.1 India-Kolkata Locator Map 16

2.2 South Kolkata Map 16

4.1 Frequency of DS 26

4.2 Order Delivery Time 27

4.3 Order Delivery Time of Competitors 28

4.4 ITC Distribution Channel 29

4.5 Distributors Complaints 30

4.6 Services of ITC 31

4.7 Availability of Stationary Products in Retails 32

4.8 Availability of ITC Stationary Products in Retails 33

4.9 Margin provided by other brands 34

4.10 Margin provided by ITC 35

7

LIST OF ABBREVIATIONS

NAME FULL FORM

ITC Imperial Tobacco Company

TSI Territory Sales In charge

DS Distributor Salesman

SMEs Small and Medium Enterprises

GCC Gulf Co-Operation Council

SAARC South Asian Association of Regional Cooperation

MRP Maximum Retail Price

FMCG Fast Moving Consumer Goods

LEED Leadership in Energy and Environmental Design

E-CHOUPAL Electronic Choupal

ICT Information and Communication Technology

UNDP United Nations Development Programme

ICC International Chamber of Commerce

USP Unique Selling Proposition

8

EXECUTIVE SUMMARY

Stationery Industry which is basically my concern industry around which my project has to be revolved

is really a very complex industry. The project titled “Understanding the strategy & requirements for

ITC Stationery Supplies, for penetrating ITC offers into Institutions” was basically a research based

project. The main motive behind doing this project is to

know the industry,

Have an overview of how ITC Classmate could penetrate more into the market.

Know the working of distributors and TSIs (Territory Sales In charge) in ITC Classmate.

Know the distribution system and gaps.

My project was totally based on primary data. The project started with a visit to various retail outlets in

order to gain information about the stationery they use. Before this I was given a thorough overview of

different products of ITC Classmate.

My next step was to visit Stationery retail stores and gather information about stocks and problems

faced by stores. My basic objective was to find out if the supply chain could be made better. In this

survey I had to visit stationery shops with the ITC classmate TSIs (Territory Sales In charge).

My findings through this project were that there is a huge market and there is can be scope of

improvement. Retail Outlets have the capacity to give good business to the ITC Classmate and more

sales could be achieved if the services given by the TSIs are improved.

9

“We don’t want satisfied customers…We want delighted customers.” It is the new marketing

mantra today. The same applies to stationery industry as well. Stationery Industry is a very

heterogeneous group of business usually associated with the Schools, Colleges, and Office and

plays a very crucial role in working of any organization across the globe. It includes Paper

stationery which comprises of a vast collection of products like exercise books, note books,

stitch, glued & tape pads, refill pads, flap over pads, subject books, plastic cover books etc.

The huge greeting card market, autograph books, party invites etc, is also a part of this segment.

1.1 BACKGROUND OF THE STUDY

Paper and paper related products are tremendously gaining demand in the market. Out of which

paper stationery market over the years has gained immense popularity in the school and office

segment throughout the world. Revolution for these products has come to birth from the past

few year’s majorly in developing nations and it's having immense value in terms of export and

import. It is expected that Stationery industry has a flourishing future in its coming years in

India and over a period is estimated to grow at 10 to 15% p.a. To achieve this objective, one

can actually see that how acceptance of Internet technology has opened plethora of

opportunities of sourcing the desired supplier in any part of the world. The manufacturers of

various countries including India, China, and Indonesia etc. have started building new product

strategies, which helps in reducing their overall cost without compromising on quality thus

producing a good quality product at competitive price.

Falling under the category of Small and Medium Enterprises (SMEs) in majorly most of the

countries, this sector has lot to offer in terms of employment, tax revenues, it can be an

important source of new innovative products, extensive local knowledge of resources, and can

be a major service provider to the larger organizations. However, this sector like other sectors

have certain bottlenecks which hinder the growth of this sector like Burdensome regulatory

frameworks, Lack of tax incentives and subsidies, Absence of investor-friendly environment,

Lack of access to finance, Lack of capacity-building programs and inadequate provision of

vocational training etc.

INTRODUCTION

10

1.2 LITERATURE REVIEW

ITC targets West and South Asia as new markets for stationery items

The Hindu Business Line - 18 Sep 2014

ITC Ltd's Classmate and Paperkraft notebooks and stationery items will soon be available in

West Asian and South Asian countries. The company will foray into Bahrain, Kuwait, UAE,

Qatar, Oman and Saudi Arabia next fiscal. Entry into South Asia is planned a year later.

We will start with the Gulf Co-operation Council (GCC) countries next fiscal as there are no

entry barriers. This will be followed by the South Asian countries. Chand Das, Chief Executive,

Education and Stationery Products Business, ITC Ltd, told BusinessLine.

Market sources indicate that the GCC countries generally offer higher value realisation on such

products.

The company says the total 'customer spend' (the maximum retail price including taxes paid by

the consumer) for Classmate and Paperkraft is around Rs. 1,400 crore.

Currently, Classmate notebooks account for approximately 85 per cent of the segment turnover.

Other offerings under Classmate include pens, pencils and mechanical pencils and art

stationery.

Focus would also be on introducing premium offerings in the pens category targeting gifting

and other segments. For pens, the focus is more on value addition, Das said.

According to him, ITC is also looking to cater to the college students segment with its new

range of premium notebooks under the 'Pulse' brand.

Launched nationally this year, the notebooks will be priced 15 to 20 per cent higher than the

Classmate range.

In terms of design, the notebooks would have additional features such as page separators,

different segments for subjects, pen-holders, spiral binding and so on. Sources indicate that the

idea is to create a separate product category with the offering and increase the product basket.

11

ITC unit draws up plans to double stationery business

The Hindu - 05 Jul 2014

ITC Education and Stationery Product Business has drawn up plans to double its revenue by

increasing its offerings, entering into new markets, and increasing multiple channel of

distribution.

According to the Chief Executive of Education and

Stationery Product Business, Chand Das, the company is

planning to enter SAARC region and Gulf Co-operation

Council soon with expanded basket of products. And,

these products will be sold through modern retail outlets,

institutional sales and e-commerce.

Currently, ITC sells products under Classmate and

Paperkraft. The customer spend (Maximum Retail Price)

for these brands is around Rs.1,300 crore. Classmate

accounts for 90 per cent of the sales, of which notebooks

of different array accounts for 85 per cent of it.

Classmate brand is targeted at students, and Paperkraft at executives. Apart from notebooks,

the unit sells different types of writing instruments, mathematical instruments, and art and

stationery products. Until two years ago, these products were imported from China.

Depreciating rupee, increasing labour costs in China and payment of countervailing duty on

imported goods forced ITC to source products locally.

According to Mr. Das, this unit has around 35 small and medium enterprises as vendors, over

900 distributors, and about a lakh retail outlets. The production of notebooks is reserved for

SMEs.

"In the last three years, the Indian stationery market has grown bigger with most of the

firms either being acquired, merged or a new company has been floated. We also received

several enquiries, but we will like to carry on ours. We are the leaders in notebooks and occupy

second and third slots in pens, pencils and arts and stationery," he said.

12

1.3 NEED OF THE STUDY

The stationery market in India is driven by not only growth in the education sector but also

industrial growth. Due to the increase in organized retailing and trends towards creating

stronger visibility, Indian stationery market is poised for further growth. India is an emerging

economy with a huge population base. Rising income levels coupled with the Government’s

impetus on educating the masses will lead to the development of the stationery market. Rising

literacy rate is a chief pointer towards growth in the education sector. Hence, it is essential to

evaluate different factors impacting the stationery business of India.

1.4 OBJECTIVES

The research project aims to achieve two-fold objectives:

A. General Objectives

The overall (general) objective of this study is to enquire about the availability of

different stationary products in retail outlets and their distribution system in

South Kolkata area.

B. Specific Objectives

My project entitled “Understanding the strategy & requirements for ITC Stationery supplies”

The Specific objective of doing this project is defined as under.

To know the retail coverage of ITC Stationary Products.

To have an overview about the availability of Stationary products in retail outlets

To know the Distribution System of ITC Stationary products.

To know the different distribution gaps of ITC Stationary products.

13

1.5 SECTION DETAILS

Chapter I describes about the Background of the Study, Literature Review, Need and

Objective of the study.

Chapter II, Methodology deals with the research and sampling design, and the types

of data used the in the study and its methods.

Chapter III is used to provide the information about ITC Ltd and its different goals,

activities and a brief idea about the demographic profile of the people in its area.

Chapter IV includes the analysis of the data which is gathered from questionnaire.

Techniques SPSS are used with the help of pie chart, bar diagram; and these tables

are used to analyse. Later, discussions are included to find the outcome of the study.

Chapter V is included to portrait the summary and conclusion of the study, followed

by the references and questionnaires used to make the study, a complete one.

14

It is based on the methods used in the collecting primary data for the study. It includes

the population and sampling methods involved, instruments used, design of the study,

and a description of the procedure used in the data collection.

2.1 RESEARCH DESIGN

In this study two different types of Research Design are used, i.e. both Exploratory

Research design and Descriptive research design are taken to conduct the study.

Exploratory- Exploratory Research Design is taken for the purpose of formulating

problem more precisely, so that investigation can be done, which resulted in idea

generation. It is used to explore the information related to motivation and influencing

factors of purchase of products through outdoor advertisement.

Descriptive- Descriptive Research Design is taken to describe the characteristic of

retailers towards ITC stationaries. It is used to collect information regarding the

background variable of the retailers.

2.2 SAMPLING DESIGN

To collect primary data regarding the scope of stationery business of ITC Classmate, I had to

visit Stationery Retail stores to observe the supply chain maintained by the company. I even

asked the shopkeepers about the supply chain maintained by the competitors of ITC Classmate.

I visited the shops with the DS (Distributor Salesman) of the company. Retailers within the

South Kolkata under two (2) distributing houses constitute the population of this study.

15

2.2.1 UNIVERSE

SOUTH KOLKATA-PHYSICAL, DEMOGRAPHY, MAP

Kolkata or Calcutta is the capital of Indian state of West Bengal located in Eastern India

and the total area covered by the city is 71 sq miles or 185 km. The metropolitan region of

the city covers an area of 728.45 sq miles or 1,886.67 km2. According to the census conducted

in 2011, the population of the city is 4,486,679, making it the 7th most populated city in India.

The metropolitan region of the city houses a population of 14,112,536 and the metropolitan

region of the city ranks as the third most populated metropolitan region of the country. The

density of population of Kolkata is 63,200/sq miles or 24,250/km. Thus the southern part of

this city is taken as the universe for conducting this study so that the data collected from

the city will definitely give a specific idea about the outdoor advertising.

Figure 2.2South Kolkata Map

Figure 2.1 India-Kolkata Locator Map

16

Kolkata urban agglomeration population growth

Table 2.1 Source: Census of India

Bengali, the official state language, is the dominant

language in Kolkata. English is also used, particularly

by the white-collar workforce. Hindi and Urdu are

spoken by a sizeable minority. According to the 2001

census, 77.68% of the population is Hindu,

20.27% Muslim, 0.88% Christian, and

0.46% Jain. The remainder of the population

includes Sikhs, Buddhists, and other religions; 0.19%

did not state a religion in the census

2.2.2 SAMPLING TECHNIQUES

Purposive Sampling

In this study the sample respondents are selected purposively from the population. The

samples are selected from the list of retailers given to me because they are the most

appropriate section of the population who can provide me the appropriate answers. The

sample units more precisely are the retailers using ITC stationaries thus purposive or

judgmental sampling technique was found suitable in the situation.

2.2.3 SAMPLE SIZE

The study used one hundred and thirty (130) retailers from the South Kolkata Area, as the

study population. These retailers were purposely selected using the list of retailers provided

to me by the organization to answer the questionnaires. All the retail outlets were under two

(2) distribution houses.

Census Total %±

1981 9,194,000 —

1991 11,021,900 19.9%

2001 13,114,700 19.0%

2011 14,112,536 7.6%

17

2.3 SOURCE AND TYPE OF DATA

The primary aim for applied research is discovering interpreting, and the development

of methods and systems for the advancement of human knowledge on a wide variety of

scientific matters of our world and the universe.

My research is based on the primary data. Primary data has been used to understand the scope of

stationery business in India and then to make suggestions useful for the company under study i.e. ITC

Classmate.

Primary and Secondary Data gathering

Primary data has been used for the purpose of study of ' Understanding the strategy & requirements for

ITC Stationery supplies

To collect primary data regarding the scope of stationery business of ITC Classmate, I visited Stationery

Retail stores to observe the supply chain maintained by the company. I had a set of Questionnaire for

the shops. I even asked the shopkeepers about the supply chain maintained by the competitors of ITC

Classmate. I visited the shops with the TSIs (Territory Sales In-Charge) of the company.

At the same time, I also enquired about stationery they are currently using and if they were interested

in taking stationery from ITC Classmate.

Secondary data has been gathered by the ITC portal.

2.4 RESEARCH TOOLS

QUESTIONNAIRE- Questionnaire is used as a method of data collection; specifically

Primary Questions with Open and Closed ended questions are used to get the information

directly related to research topic, which helped the respondents to choose a response

from the options provided in the questionnaire. The respondents were asked to give their

responses by writing or ticking them with a pen or pencil.

18

2.5 METHOD OF DATA ANALYSIS

The study employed a survey research method during the data collection. As a result,

printed questionnaires were issued to the study’s population to help gather information for

the data.

The respondents answered the questionnaires themselves. However, sometimes certain

questions that the respondents thought were not clear to them were duly explained to gain

a clearer viewpoint. The questionnaires were given to, and answered by the study

population. The answered questionnaires were then returned, the responses analysed, and

then entered for the discussions.

The data collection was then analysed through Bar Chart and Pie Chart in MS Excel and

the interpretation was done.

2.6 CONSTRAINTS OF THE STUDY

It was difficult for the salesmen to pinpoint the sales of a particular brand in retail stores.

As the nature of research was exploratory so it was difficult to cover each and every

retailer.

Many retailers don’t express their original perception and views because of biasness.

Certain questions were not answered with justice.

Time was a major constraints.

Response error, interview error and biased answers in some cases were the other

limitation of study.

The major problem of the survey was that most of the respondents being very loyal to

their brands didn’t give exact answers. They did not talk much about what problems

they are facing, what are the different marketing schemes of the brand in which they

deal etc.

19

ITC Limited is an Indian conglomerate founded on 24 August 1910.

The company (formerly known as Imperial Tobacco Company of

India Limited) is currently headed by Yogesh Chander Deveshwar.

The company has its registered office in Kolkata. It employs over

20,000 people at more than 60 locations across India.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards &

Specialty Papers, Packaging, Agri-Business, Packaged Foods &

Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety

Matches and other FMCG products. While ITC is an outstanding market leader in its traditional

businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly

gaining market share even in its nascent businesses of Packaged Foods & Confectionery,

Branded Apparel, Personal Care and Stationery.

It ranks third in pre-tax profit among India's private sector corporations. ITC is one of India's

foremost private sector companies with a market capitalization of over US $ 22 billion and a

turnover of US $ 6 billion.

ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most

Reputable Companies by Forbes magazine, among India's Most Respected Companies by

Business World and among India's Most Valuable Companies by Business Today. ITC ranks

among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance

and published by the Economic Times. ITC also ranks among Asia's 50 best performing

companies compiled by Business Week.

ITC is one of India's most valuable and respected corporations.

CHAPTER-3

ORGANIZATIONAL PROFILE

20

3.1 HISTORICAL DEVELOPMENT OF ORGANISATION

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of

India Limited. As the Company's ownership progressively Indianised, the name of the

Company was changed from Imperial Tobacco Company of India Limited to India

Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of

the Company's multi-business portfolio encompassing a wide range of businesses - Fast

Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded

Apparel, Education and Stationery Products, Incense Sticks and Safety Matches, Hotels,

Paperboards & Specialty Papers, Packaging, Agri-Business and Information

Technology - the full stops in the Company's name were removed effective September 18,

2001. The Company now stands rechristened 'ITC Limited, where ‘ITC’ is today no longer

an acronym or an initialised form.

A Modest Beginning

The Company's beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was

the centre of the Company's existence. The Company celebrated its 16th birthday on August

24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru

Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more

ways than one. It was to mark the beginning of a long and eventful journey into India's future.

The Company's headquarter building, 'Virginia House', which came up on that plot of land two

years later, would go on to become one of Kolkata's most venerated landmarks.

3.2 MISSION, VISION AND POSITIONING

MISSION - 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

VISION - To enhance the wealth generating capability of the enterprise in a globalizing

environment, delivering superior and sustainable stakeholder value

POSITIONING - Enduring Value. For the nation. For the Shareholder.

21

3.3 GOAL

Create multiple drivers of growth by developing a portfolio of world class businesses

that best matches organizational capability with opportunities in domestic and export

markets.

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

Packaging, Agri Business and Information Technology.

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

Standing, Profitability and Internal Vitality.

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

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

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

Create distributed leadership within the organization by nurturing talented and focused

top management teams for each of the businesses.

Continuously strengthen and refine Corporate Governance processes and systems to

catalyse the entrepreneurial energies of management by striking the golden balance

between executive freedom and the need for effective control and accountability.

22

3.4 MAIN ACTIVITIES

Fast Moving Consumer Goods (FMCG)

1) Cigarettes

ITC is the market leader in cigarettes in India. It’s highly popular portfolio of brands includes

Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley,

Bristol and Flake.

2) Foods

ITC made its entry into the branded & packaged Foods business in August 2001 with the launch

of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with

brand launches in the Confectionery, Staples and Snack Foods segments.

3) Lifestyle Retailing

ITC’s ventured into Lifestyle Retailing Business Division through its Wills Lifestyle chain of

exclusive specialty stores.

Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear,

Wills Sport relaxed wear, Wills Club life evening wear, fashion accessories and Essenza Di

Wills – an exclusive range of fine fragrances

With a distinctive presence across segments at the premium end, ITC has also established John

Players as a brand that offers a complete fashion wardrobe to the male youth of today.

4) Education and Stationary

ITC made its entry into the stationery business in the year 2002 with its premium range of

notebooks. ITC's Education and Stationery Products are marketed under the brands

"Classmate" and "Paperkraft". The Classmate range of product is targeted at satisfying

education & stationery needs of students & young adults. The product range includes

Notebooks, Math Instruments, Scholastic Products as well as Writing Instruments.

23

5) Safety Matches

ITC’s range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim Mega

and Aim Metro. With differentiated product features and innovative value additions, these

brands effectively address the needs of different consumer segments. The Aim brand is the

largest selling brand of Safety Matches in India.

6) Aggarbattis

ITC commenced marketing Agarbattis (Incense Sticks) sourced from small-scale and cottage

units in 2003. Mangaldeep Agarbattis are available in a wide range of fragrances. Mogra.

Durbar Gold is a new offering from Mangaldeep launched in Andhra Pradesh and has received

wide consumer acceptance.

7) Personal Care

ITC forayed into the Personal Care business in July 2005. In the short period since its entry,

ITC has already launched an array of brands, each of which offers a unique and superior value

proposition to discerning consumers.

HOTELS

ITC-Welcome group: fastest growing Hospitality chain in India which has Over 90

properties across 70 locations. 40 Fortune Hotels with over 3000 rooms and 40 Welcome

Heritage Properties with nearly 1000 rooms exclusive tie up with Starwood’s Luxury

Collection for 10 Hotels.

PAPERBOARD AND SPECIALITY PAPERS

ITC's Paperboards and Specialty Papers Division is India's largest, technologically advanced

and most eco-friendly, paper and paperboards business. The business caters to a wide spectrum

of packaging, graphic, communication, writing, printing and specialty paper requirements

through its four world-class manufacturing units, 7 sales offices and a network of more than

60 dealers in India, along with a robust international trade network of distributors / agents and

6 finishing operations close to the market for providing faster service to the customers.

24

3.5 MAIN ACHIEVEMENTS

ITC constantly endeavours to benchmark its products, services and processes to global

standards. The Company's pursuit of excellence has earned it national and international

honours. ITC is one of the eight Indian companies to figure in Forbes A-List for 2004, featuring

400 of "the world's best big companies". Forbes has also named ITC among Asia's'Fab 50' and

the World's Most Reputable Companies.

ITC has several firsts to its credit:

ITC is the first from India and among the first 10 companies in the world to publish its

Sustainability Report in compliance (at the highest A+ level) with the latest G3 guidelines of

the Netherlands-based Global Reporting Initiative (GRI), a UN-backed, multistakeholder

international initiative to develop and disseminate globally applicable Sustainability

Reporting Guidelines.

ITC is the first Indian company and the second in the world to win the prestigious

Development Gateway Award. It won the $100,000 Award for the year 2005 for its

trailblazing ITC e-Choupal initiative which has achieved the scale of a movement in rural

India. The Development Gateway Award recognizes ITC's e-Choupal as the most exemplary

contribution in the field of Information and Communication Technologies (ICT) for

development during the last 10 years. ITC e-Choupal won the Award for the importance of

its contribution to development priorities like poverty reduction, its scale and replicability,

sustainability and transparency.

ITC has won the inaugural 'World Business Award', the worldwide business award

recognising companies who have made significant efforts to create sustainable livelihood

opportunities and enduring wealth in developing countries. The award has been instituted

jointly by the United Nations Development Programme (UNDP), International Chamber of

Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum

(IBLF).

ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate Triple

Impact Award in 2007 for its invaluable contribution to the triple bottom line benchmarks of

building economic, social and natural capital for the nation.

25

The study sent out questionnaires to 130 retailers of south Kolkata area under 2

distributing units. The questions were asked by the retailers about the distribution

loopholes and about the different products of ITC as well as its competitors.

4.1 EVALUATION OF RETAILERS PERCEPTIONS TOWARDS ITC

STATIONARY PRODUCTS

A) DISTRIBUTION SYSTEM

Frequency of DS

Table 4.1 Frequency of DS

Weekly 93(72%)

Fortnightly 29 (22%)

Twice a week 0 (0%)

Monthly 8(6%)

Figure 4.1Frequency of DS in a month

Source: Primary Data

The graph shows that 72% of the DS goes weekly to the retail outlets for taking orders while

6% of the DS go only once in a month and 22% goes once in fortnight.

93

29

08

0

50

100

150

200

Weekly Fortnightly Twice a week Monthly

TOTAL SAMPLE SIZE=130

ANALYSIS & DISCUSSION

CHAPTER-4

26

Order Delivery Time

Table 4.2 Order Delivery Time

Strongly Agree 18 (14%)

Disagree 47(36%)

Agree 61 (47%)

Strongly Disagree 4(3%)

Figure 4.2 Order Delivery Time

Source: Primary Data

The above pie-chart shows that 47% of the retailers agree that there product is delivered to

them on time but 36% of the retailers told that their orders is not delivered to them on time

where as 47% agree that there order is delivered.

18

47

61

4

Strongly Agree Disagree Agree Strongly Disagree

27

Order Delivery Time of Competitors

Table 4.3 Order Delivery of Competitors

Strongly Agree 38 (29%)

Disagree 14 (11%)

Agree 69 (53%)

Strongly Agree 9 (7%)

Figure 4.3 Order Delivery of Competitors

Source: Primary Data

The above pie-chart shows that 29% of the retailers strongly agree that the competitor’s product

is delivered to them on time and 53% of them agree and only 7% of the retailers are not happy

because the product is not delivered to them on time.

38

1469

9

Strongly Agree Disagree Agree Strongly Disagree

28

ITC Distribution Channel

Table 4.4 ITC Distribution Channel

Excellent 22 (17%)

Bad 31 (24%)

Good 48 (37%)

Average 29 (22%)

Figure 4.4 ITC Distribution Channel

Source: Primary Data

The above chart shows that the 37% retailers says that ITC’s distribution channel is good

while 17% marked it as excellent and 22% said that its average, but only 24% retailers

perception about ITC’s distribution channel is bad.

2231

4829

Excellent Bad Good Average

0

40

80

120

160

200

29

Distributors Complaints

Table 4.5 Distributors Complaints

Strongly Agree 16 (12%)

Disagree 7 (5%)

Agree 102 (79%)

Strongly Disagree 5 (4%)

Figure 4.5 Distributor Complaints

Source: Primary Data

The above chart shows that above 79% of the respondents agree that their complaints are

properly solved, whenever they face any problem where as 5 % disagree to it.

167

102

5

Sales

Strongly Agree Disagree Agree Strongly Agree

30

Services of ITC Table 4.6 Services of ITC

Excellent 34 (17%)

Bad 44 (24%)

Good 74 (37%)

Average 48 (24%)

Figure 4.6 Services of ITC

Source: Primary Data

The chart shows that only 24% of respondents marked services of ITC as bad while rest of

them marked ITC services as Excellent (17%), Good (37%) and Average.(24%)

36

62

60

52

Sales

Excellent Bad Good Average

31

Availability of other products in retails

Table 4.7 Availability of other products in retails

Figure 4.7 Availability of other products in retails

Source: Primary Data

Interpretation: Out of 130 sample size, 124 outlets keep note books,123 outlets keep long books, 110

outlets keep graph books,113 outlets keep drawing books,98 outlets keep reminder

pad,97 outlets keep pocket memo,95 outlets keep scrap book,119 outlets keep

pencils,102 outlets keep geometry box,91 outlets keep copier paper.

0

20

40

60

80

100

120

140

NO

. O

F O

UTL

ETS

CATEGORIES NO. OF OUTLETS

Note Book 124

Long Book 123

Graph Book 110

Drawing Book 113

Reminder Pad 98

Pocket Memo 97

Scrap Book 95

Pencil 119

Geometry Box 102

Copier Paper 91

32

Availability of ITC Products

Figure 4.8 Availability of ITC Products

Source: Primary Data

Interpretation:

Out of 130 sample size, 73 outlets keep classmate note books, 80 outlets keep classmate long

books, 50 outlets keep classmate graph books, 54 outlets keep classmate drawing books, 45

outlets keep classmate reminder pad, 43 outlets keep classmate pocket memo, 40 outlets keep

classmate scrap book, 42 outlets keep classmate pencils, 45 outlets keep classmate geometry

box, 15 outlets keep Paperkraft (copier paper of ITC).

0

10

20

30

40

50

60

70

80

90

Note book Long book Graphbook

Drawingbook

Reminderpad

Pocketmemo

Scrapbook

Pencils Geometrybox

Copierpaper

Stationery product of ITC available in Outlets

33

Margins by other companies

Figure 4.9 Margin by Other companies

Source: Primary Data

Interpretation:

According to above graph, it is clear that local brands are giving 50% margin which is higher

than most of the other brands.Trade margin of ITC is20%,Navneet is 25%,Cello is 32%,

Camlin is 38%, Sundaram is 45%and the retailer gets the maximum margin in local brand that

is 50%.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

CLASSMATE NAVNEET SUNDARAM CELLO CAMLIN LOCALBRANDS

Series1 20% 25% 45% 32% 38% 50%

Trade Margins

34

Margin by ITC

Table 4.8 Margin by ITC

Yes NO Total

8% 92% 200%

Figure 4.10 Margin by ITC

Source: Primary Data

Interpretation:

According to above graph, 92% retailers are not satisfied with the margins offered to them by

the company. While only 8 % retailers are satisfied with margins. So company should rethink

over trade margin policy.

8%

92%

Satisfaction level with respect to margin

Yes NO

35

.

5.1 SUMMARY OF FINDINGS:

DS goes weekly to the retail outlets for taking orders which sometimes creates problems

for the retailers as their stock ends in the middle of the week.

Most of the retailers have complaint that ITC’s order is not delivered on time and

because of that they cannot supply to the customer.

More than half of the retailers agree that their competitors’ products are delivered to

them on time which make the retailers more loyal towards their brand.

The retailers think that the distribution system of ITC is somewhat OK but it can be

more sharp which will allow the retailers to retain more ITC customers and also be

loyal towards it.

Most of the retailers say that there complaints are solved by the organisation on time

which is a very good feedback for the organisation.

Note Book and Long Book are the main products of ITC which are available in most

of the retail outlets and are sold most in the categories of copies.

Local brands are giving more margins to the retailers than ITC which make the retailers

sell more of their brands than ITC.

90% of the retailers are not satisfied with the margins provided to them by ITC and so

they are demanding for more.

To increase the sales of ITC Stationary products it should start dedicated shops od ITC

in big institutions and colleges.

To increase the brand value of ITC it can sponsor events like Kolkata Marathons or

Kolkata Book Fair.

It can also target small art schools or nursery schools because small kids are more

attracted towards photos and games which is a USP for ITC products.

SUMMARY AND CONCLISION

CHAPTER-5

36

5.2 CONCLUSIONS

A survey of the people has been conducted to know the liking pattern of the ITC Stationery

products. It is observed that overall retailers like to buy Stationery products of other

companies because of the margins given by them. It is concluded that mostly people

preferred Classmate of ITC due to its high quality and image. Some people often like to

have good Quality at lower price that’s why they prefer other brands. Due to quality and

brand image the ITC have they are able to attract the customers. It is thus concluded from

the facts collected most of the market covered by the ITC but the concentration on

advertisement & promotional activities will help them to become a market leader in

stationery products.

37

6.1 TEXT BOOKS:

1. Kothari, CR, Research Methodology, New Age International Publication Ltd., New Delhi,

2011.

2. Kotler, P., Amstrong, G., Saunders, J. & Wong, V. () Principles of Marketing (3rd

European Edition.). Harlow: Prentice Hall, pp 636-643.

3. Ahuja, Ram, Research Methodology, Rawat Publications Ltd, New Delhi, 2007

4. Shimp, T. A. Advertising Promotion, Supplemental Aspects of Integrated Marketing

Communications (5th edition.) Prentice Hall 2000

5. Pillai & Bhagavathi R. S.N. Modern Marketing, New Delhi, Ramnagar,S. Chand & Co.

Ltd, 2001

6. Gupta S.P. Statistical Method, S. Chand & Sons, New Delhi, 2012

6.2 WEBSITES:

7. http://www.itcportal.com

8. www.wikipedia.com

BIBLIOGRAPHY

REFERENCES

38

This is a research questionnaire on the topic UNDERSTANDING THE STRATEGY AND

REQUIREMENTS FOR ITC STATIONARY SUPPLIES..

The responses to the questions in this form will therefore be treated as strictly confidential and

snail be used only for the purposes of this study. An honest and fair cooperation is needed to

make the findings more accurate, comprehensive and reliable.

Please answer clearly by ticking the appropriate box and writing out your answers in the

spaces provided.

Part -1

Q 1) Name of the retailer __________________________________________.

Q 2) Type of retailer ______________________________________________.

Q 3) Name of the DS covering the beat _______________________________.

A) DISTRIBUTION SYSTEM

Q 1) How many times does the DS comes?

a) Weekly c) Twice a week

b) Fortnightly d) Monthly

Q 2) Are the orders delivered to you on time?

a) Strongly agree c) Agree

c) Disagree d) Strongly disagree

SAMPLE QUESTIONNAIRE FOR RESEARCH STUDY

ANNEXURE

39

Q 3) Are your orders fulfilled properly?

a) Strongly agree c) Agree

b) Disagree d) Strongly disagree

Q 4) What is your perception about ITC’s distribution channel?

a) Excellent c) Good

b) Bad d) Average

Q 5) Are your complaints solved properly?

a) Strongly agree c) Agree

b) Disagree d) Strongly disagree

Q 6) Rate ITC service from 1 to 5.

a) Excellent c) Good

b) Bad d) Average

Part -2

B) AVAILABILITY OF STATIONARY PRODUCTS IN RETAIL

7) Which stationery items do you keep in your outlet?

1)__________ 2)___________ 3)____________ 4)____________ 5)___________

8) Which stationery items of ITC do you keep in your outlet?

1)__________ 2)___________ 3)____________ 4)____________ 5)___________

9) What are the margins given by companies on the stationery product?

a) Classmate d) Cello

b) Navneet e) Camlin

c) Sundaram f) local brands

10) Are you satisfied with the margin given by ITC?

a) Yes c) No