Mega Final Vinay

CONSUMER BEHAVIOUR ON I.T.C PRODUCTS

A STUDY

On

CONSUMER BEHAVIOUR TOWARDS I.T.C PRODUCTS

A Project Report submitted to

Dr. Jyothirmayi Degree College

In partial fulfillment of requirement for the award of

BACHELOR OF BUSINESS MANAGEMENT DEGREE COURSE

For the 2012-2013 Session.

Submitted by:

Mr. METHUKULA VINAY,

Regd No: 105027014.

Under the Guidance of

Mr. G.VISHWANATH SIR M.B.A.

Asst. Professor

Dr. JYOTHIRMAYI DEGREE COLLEGE

ADONI

Affiliated to Rayalaseema University

KURNOOL

Dr. JYOTHIRMAYI DEGREE COLLEGE, ADONI DEPT.OF MANAGEMENT


2012- 2013

CONSUMER BEHAVIOUR TOWARDS I.T.C PRODUCTS

Project

Submitted By

Mr. METHUKULA VINAY,

(REGISTER NO: 105027014)

In partial fulfillment of the degree of

BACHELOR OF BUSINESS MANAGEMENT

Under the guidance of

Mr. G.VISHWANATH, M.B.A.

ASST.PROFESSOR

DEPARTMENT OF MANAGEMENT STUDIES

Dr. JYOTHIRMAYI DEGREE COLLEGE

RAMJALA ROAD, ADONI

RAYALASEEMA UNIVERSITY

KURNOOL

JANUARY - 2013



BONAFIDE CERTIFICATE


This is to certify that the project work entitled “CONSUMER BEHAVIOUR TOWARDS I.T.C

PRODUCTS” is a bonafide record work done by Mr. METHUKULA VINAY (Regd.

No.105027014) submitted in the partial fulfillment of the requirement for the award of the degree of

BACHELOR OF BUSINESS MANAGEMENT of the

RAYALASEEMA UNIVERSITY KURNOOL.

Head of Department Principal of the College

Place:

Date:



GUIDE CERTIFICATION


This is to certify that the project work entitled “CONSUMER BEHAVIOUR TOWARDS

I.T.C PRODUCTS” Is a bonafide record work done by Mr. METHUKULA VINAY

(Regd. No.105027014) Submitted in the partial fulfillment of the requirement for the award of the

degree of BACHELOR OF BUSINESS MANAGEMENT of the RAYALASEEMA

UNIVERSITY.KURNOOL.

Faculty Guide Head of Department

Place:

Date:



DECLARATION

Mr. METHUKULA VINAY (Reg. No.105027014) a bonafide student of the Department

of Management studies, Dr. JYOTHIRMAYI DEGREE COLLEGE, ADONI would

like to declare that the project titled “CONSUMER BEHAVIOUR TOWARDS I.T.C

PRODUCTS” in the partial fulfillment of Bachelor of Business Management degree course of

the RAYALASEEMA UNIVERSITY, KURNOOL is my original work and will not be

submitted for the award of an other degree, diploma, fellowship or other title or prize.

Signature of the Declarant

Date: Name:

Place: Reg. No:



ACKNOWLEDGEMENT

I would like to express my sincere thanks to our Correspondent

Mr. MURALI BABU for encouraging us to do the training well from the

college.

I would like to thank our Principal Mr. VIJAY KUMAR and for helping

me to undergo the training well.

Next I owe gratitude to my Head of the Department (HOD) Mr.

CHANDRA SEKHAR permitting me to undertake the project in my

interested specialization.

I wish to express my gratitude to III Year BBM Coordinator Mr.

GANESH RAO for helping me to undergo the project.

Last but not least I would thank my guide Mr.G.VISHWNATH and also

our staff members, Dr. JYOTHIRMAYI DEGREE COLLEGE for their

support during the course of my project which is worth praising.

I also express my gratitude to my parents for blessing me and encouraging

me to undergo the project effectively.

TABLE OF CONTENTS



CHAPTER CONTENTS PAGE NO

1

Introduction

1.1 Definitions of Consumer Behavior & Marketing

1.2 Factors of Consumer Behaviors

1 - 9

2

Study design

2.1. Importance of study

2.2. Objectives of study

2.3. Need of study

2.4. Scope of study

2.4. Methodology

2.5.Limitation

10 - 16

3 Industry & company Profile 17 - 31

4 & 5 Data Analysis and Interpretation 32 - 48

6

Findings ,Suggestions & Conclusion

6.1Findings

6.2 Suggestions

6.3 Conclusion

49 - 51

7

Bibliography

Questionnaires

Annexure52 - 63



LIST OF TABLES

TABLE

NOCONTENTS

PAGE

NO

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Have you ever used I.T.C products

I.T.C products are available without any Interruption

I.T.C products are available to reasonable prices

Are you satisfied with the quality and the quantity of the Products

Advertising of I.T.C is up to satisfactory level

Will you refer I.T.C products to your relatives and friends

The company perform any social welfare activities

Company is changing according to consumers wishes

That I.T.C has advantage over its competitors

What makes you to buy I.T.C products

Who influenced you to buy I.T.C products

How do you rate I.T.C products

Differentiate the ITC Product with other products

ITC products providing good advertisement with their brand ambassadors

Suggestions

33

34

35

36

37

38

39

40

41

42

43

44

45

46

DR.JYOTHIRMAYI DEGREE COLLEGE, ADONI 8 DEPT. OF MANAGEMENT


LIST OF GRAPHS

GRAPH

NO CONTENTS

PAGE

NO

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Responds ever used I.T.C products

Responds I.T.C products are available without any Interruption

Responds I.T.C products are available to reasonable prices

Responds Are you satisfied with the quality and the quantity of the Products

Responds Advertising of I.T.C is up to satisfactory level

Responds Will you refer I.T.C products to your relatives and friends

Responds The company perform any social welfare activities

Responds Company is changing according to consumers wishes

Responds That I.T.C has advantage over its competitors

Responds What makes you to buy I.T.C products

Responds Who influenced you to buy I.T.C products

Responds How do you rate I.T.C products

Responds Differentiate the ITC Product with other products

Responds ITC products providing good advertisement with their brand ambassadors

33

34

35

36

37

38

39

40

41

42

43

44

45

46



CHAPTER-I

INTRODUCTION



Management:

The basic unit of society is the individual. But no individual can satisfy his

needs and desires himself. So he unites his fellow beings and works in organized

group to achieve his objectives.

An organization is a set of people working together to achieve common goals.

Wherever there is organized group of people working towards a common goal, some

type of management becomes essential. Management makes people to realize the

objectives of the group and direct their efforts towards the achievement of the

objectives.

Management is essential part of group activity. It is primary force within a

group/ organization which tends to lead it towards the group goal. Management is a

universal process in all organized, social and economic activities.

In our life, we see that every activity we undertake involves an element that

ensures consideration and cohesiveness to the activity, with our acts would be

unproductive and ineffective.

Management is a critical element in economic growth of a country. A country

enough factors of production and other natural resources can still be poor if it does not

have competent managers to combine and coordinate resources. Without

management, a country’s resources of production remain as resources and never

become production.



Management is central core of our national as well as personal activities and

the way we manage and our institutions reflects with alarming clarity what we and our

society becomes.

Definitions of management:

“The art of getting things done through others”

Management also defined as “planning, organizing, and controlling performed to

determine and accomplish the objectives by use of people and resources”. This definition

indicates that managers use people and other resources such as finance, equipment in

attaining their goals.

“The art of knowing exactly what you want men to do and seeing that they to do it in

the best and the cheapest way”

Market:

1. A market is a set of actual and potential (future) buyers of a product.

2. The concepts of exchange and relationships lead to the concept of a market.

3. Economists use the term market to refer a collection of buyers and sellers, who transact in

particular product class.

Marketing:

Marketing is perhaps most complex and challenging function performed by every

business firm. It is the main reason for the existence of business. In this age of rapid change,

marketing is the springboard of all business operations. It is guiding element of every



business. It is powerful mechanism which alone can satisfy the needs and wants of the

customer at the place and price they desire.

Definition:

According to American Marketing Association “Marketing is the performance of the

business activities that directs flow of goods and services from product to customers”

According to Philip Kolter “Marketing is a social and managerial process by

which individuals and group obtain what they need and want through creating,

offering and exchanging products of value with others”.

According to Stanton“Marketing is a total system of interacting business activities

designed to present and potential customers”

In a broader sense, marketing may be viewed as a complex system of

organizations and process by which nations resources are distributed among the

people and satisfy their wants and needs.

Consumer Behavior:



We are all consumers, consumer behavior is a vital factor which most be known to the

marketing management, unless a marketing manager has the knowledge of the factors that

effects the consumer purchasing patterns, he con not do his best in the formation of sates

policies and advertising policies.

Consumers have to play a major role in protecting themselves from clutches of

businessman. First of all they must know their rights as consumer’s secondly they should not

hesitate to exercise their rights, consumers must adopt this sprits of they help and co-

operation, consumers must be aware of all the laws which were executed by the government

in this regard unless are knows that there is an act like the prevention of food adutiration act

one cannot complaint against the guilt. Hence consumer education is indispensable in the

modern world.

The term consumer behaviour refer to the behavior of the consumers while purchasing

using and disposing the products which they will satisfy their needs, so this consumer

behavior is vital factor in manufacturing management. The study of consumer behavior is the

study of how the individuals spend their available resources like time, money and efforts etc

on consumption of the product.

Definition:

The decision process and physical activity of individuals engage in when evaluating,

acquiring, using or disposing of goods and services.

-“Loudon andbitta”

Factors influencing consumer behavior:

There are four major factors influencing consumer behavior. They are:



1. Cultural factors

2. Social factors

3. Personal factors

4. Psychological factors

Cultural factors:

Cultural factors are broadest and deepest influence on consumer behavior. The

marketer needs to under stand the role played by buyers culture, sub-culture and social

classes.

Culture:

Culture is the most basic cause of a person wants and behavior. Culture is acquired as

part of social experience. In the context of consumer behavior, culture means sum of learned

beliefs, values and customs that serve to regulate the behavior of customers of particular

society.

Sub-culture:

Each culture contains smaller sub cultures based on common life experience and

situations. Sub-cultures include nationalities, religions, racial groups and geographic regions.

Many sub-cultures make up important market segments.

Social classes:

Social classes are relatively homogenous divisions in a society. Each social class

exhibits similar product and brand preferences. Social classes refer not only income

but other indicators such as education, occupation and residential area.



Social factors:

A consumer’s behavior also is influenced by social factors, such as the consumer’s

small groups, family and role and status.

Groups:

A person’s behavior is influenced by small groups. Groups that have a direct

influence and to person belong are called membership groups. Some are primary groups with

whom regular but informal interaction such as family, friends, neighbors and co workers.

Family:

Family members can strongly influence buyers behavior. Family is a fundamental

reference group for many consumers. Infact, it is the target market for many products.

Marketers distinguish between two types of families in the consumer life. The family of

orientation consists of ones parents and siblings. On the other hand family of procreation

namely once spouse and children will have a more direct influence on every day buying

behavior. The concept of family life cycle gives valuable insights in the buying behavior of a

family.

Role and status:

A person belongs to many groups i.e., family, club, organizations. The person position

in each group can be defined in terms of both role and status. A role consists of the activities

peoples are expected to perform according to the person around them. Each of individual

roles will influence some of other buying behavior.

Personal factors:



A buyer’s decisions also are influenced by personal characteristics such as the buyer’s

age and life style or life cycle stage, occupation, economic situations etc.

Age and lifecycle stage:

People change the goods and services they buy over their life times, taste in food,

clothes, furniture and recreation are often age related. Buying is also determined by the stage

of the family life cycle. Marketers often define their target markets in terms of life cycle stage

and develop appropriate products and marketing plans for each stage.

Occupation:

A person occupation effects the goods and services bought blue collar workers tend to

buy more work clothes where as white collar workers buy more suits and ties.

Economic situations and conditions:

A person economic situation will affect product choice. An individual can considered

buying an expensive, says is he has enough spendable income, saving are borrowing power,

marketers income sensitive goods watch trends in personal income, savings and interest rates.

If economic indicators point to a recession, marketers can take steps to redesign and reprice

their products closely.

Psychological factors:

A Persons buying choices are further influenced by four major psychological

factors motivation, perception, learning and beliefs and attitudes.

Motivation:



A person has many needs at any given time. Some are biological, arising from stages

of tension such as hungry, thirst or discomfort. Most of those will not be strong enough to

motivate when it is aroused to sufficient level of interest. A motive is need that is sufficiently

pressing to direct the persons to seek satisfaction. Consumer motives can be described as a

process through which wants are satisfied human behavior is goal oriented. Goals are sought

after the results of motivated behavior.

Perception:

Perception is the process by which an individual selects, organizes and interprets

information inputs to create managerial picture of world. Perception has strange implications

for marketers. Consumers make decisions based on what they perceive. They generally equal

at the quality of product on the basis of variety of informational causes such as colour, size,

price and strong image. Consumers often ready on prices as on indicator of quality. How

consumers perceive a price has a strong influence and purchase decision.

Learning:

When people act, they learn. Learning describes changes in individual’s behavior

arising from experience. Learning theories says most of the human behavior is learned.

Learning occurs through the interplay of drives, stimuli, cause, responses and reinforcement.

Learning involves changes in a person’s behavior due to the fast experience.

Beliefs and attitudes:

Through doing and learning people accrued beliefs and attitudes. These interns

influence their buying behavior. A belief is descriptive thought of a person has about



something. Marketers are interested in beliefs that people formulate about specific product

and service.

As consumers we have many attitudes towards products and services. But they are not necessarily permanent, they do change. Marketers are instructed how consumers attitudes form and how they changed.

CHAPTER-II

STUDY DESIGN



NEED FOR STUDTY

To understand the likes and dislikes of consumer extensive consumer research study

are being conducted these researches to find out

What the consumer things of the companies’ products and those of its competitors.

How can the product be improved in their opinion

How the consumers use the products

What is the consumer attitude towards the products and its advertising



IMPORTANCE OF STUDY

1. Consumer behaviour consists of activities/process followed in making any buying decision of goods as well as service.

2. Consumption behaviour is a study focus on consuming unit.

3. Consumer behaviour is importance of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas.

4. To know the importance of three factors are identified as determinants to consumer behaviour.

EX : ECONOMIC DETERMINANTS etc.,

5. Consumer behaviour is important factor in determining marketing policies.



Objectives of the study:

To know the behaviour of the consumers towards I.T.C products.

To study the factors which influence the consumers to prefer the I.T.C products.

To know the buyer responses, tastes and preferences towards the products.

To analyse the competitive advantage over others.

To know the satisfactory levels of consumers with the usage of I.T.C products.

To know consumer needs and change accordingly.

To know the social responsibility of the company towards society.

To study wide range of products of the company useful to all classes.



Sources of data

The study is conducted through primary data and secondary data.

Primary data:

The information is obtained through questionnaire, interviews, with

respondents and dealers, discussions with consumers. The primary data is collected

and gathers for specific purpose.

Secondary data:

The secondary data is obtained from company records, circulars, and policy

documents, broachers of the company and from the company website.

Sample size:

Data were collected by the means of well structured closed ended and open

ended questions from 100 consumers. The consumers are from various classes and

various age groups.



Methodology

The following methods are followed for this study

Questionnaire method:

In this method questions are designed in such a way to know the behaviour of

consumers towards I.T.C products. They are designed in an order with closed ended and open

ended questions.

Observation method:

In this method it is possible to get both past and current information, it enables to

observe the variables which influenced consumer’s behaviour as it occurs.

To get past information some records are observed.

Interview method:

It is most commonly used method in data collection it has wide flexibility. The

purpose of this method is to facilitate understanding behavioural aspects of consumers being

surveyed. There are three types of methods such as personal interview method, mail

interview method and telephonic interview method.



Limitations of the study:

Although the attempt was made to gather relevant data. Yet there were few short

comings and difficulties.

The major limitations are:

Consumer behavior and their opinions are liable to change.

Study is confined to Kurnool and near by areas only.

Limited access to know companies important information like profits etc…………..

Time is another constraint.

Some of the consumers were busy in their jobs, so they couldn’t spend sufficient time

to give information.



CHAPTER-III

INDUSTRY

PROFILE

&

COMPANY

PROFILE



INDUSTRY PROFILE



INDUSTRY PROFILE

Fast Moving Consumer Goods (FMCG) goods are all consumable items (other than groceries/pulses) that one needs to buy at regular intervals. These are items which are used daily, and so have a quick rate of consumption, and a high return. FMCG can broadly be categorized into three segments which are:

Household items as soaps, detergents, household accessories, etc,

Personal care items as shampoos, toothpaste, shaving products, etc and finally

Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc.

Global leaders in the FMCG segment are Nestlé, ITC, Hindustan Unilever Limited, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Gillette etc.

Overview

The burgeoning middle class Indian population, as well as the rural sector, present a huge potential for this sector. The FMCG sector in India is at present, the fourth largest sector with a total market size in excess of USD 13 billion as of 2012. This sector is expected to grow to a USD 33 billion industry by 2015 and to a whooping USD 100 billion by the year 2025.

This sector is characterized by strong MNC presence and a well established distribution network. In India the easy availability of raw materials as well as cheap labour makes it an ideal destination for this sector. There is also intense competition between the organised and unorganised segments and the fight to keep operational costs low.

A look at some factors that will drive growth in this sector:

Increasing rate of urbanization, expected to see major growth in coming years.

Rise in disposable incomes, resulting in premium brands having faster growth and deeper penetration.

Innovative and stronger channels of distribution to the rural segment, leading to deeper penetration into this segment.



Increase in rural non-agricultural income and benefits from government welfare programmes.

Investment in stock markets of FMCG companies, which are expected to grow constantly

Some of the challenges this sector is likely to face are:

Increasing rate of inflation, which is likely to lead to higher cost of raw materials.

The standardization of packaging norms that is likely to be implemented by the Government by Jan 2013 is expected to increase cost of beverages, cereals, edible oil, detergent, flour, salt, aerated drinks and mineral water.

Steadily rising fuel costs, leading to increased distribution costs.

The present slow-down in the economy may lower demand of FMCG products, particularly in the premium sector, leading to reduced volumes.

The declining value of rupee against other currencies may reduce margins of many companies, as Marico, Godrej Consumer Products, Colgate, Dabur, etc who import raw materials.

In conclusion:

This sector will continue to see growth as it depends on an ever-increasing internal market for consumption, and demand for these goods remains more or less constant, irrespective of recession or inflation. Hence this sector will grow, though it may not be a smooth growth path, due to the present world-wide economic slowdown, rising inflation and fall of the rupee. This sector will see good growth in the long run and hiring will continue to remain robust.



COMPANY PROFILE

COMPANY PROFILEEvolution

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. The Company now stands rechristened 'ITC Limited'.

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.

The company is currently headed by YogeshChanderDeveshwar. It employs

over 26,000 people at more than 60 locations across India and is listed on Forbes

2000. ITC Limited completed 100 years on 24 August 2010.

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 evenin its

nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and

Stationery.

History



The company had founded-pioneered canteens for the workers, free medical

care, sports facilities and paid holidays. In 1830, the company was renamed W.D. &

H.O. Wills. Their first brand was Bristol, made at the London factory from 1871 to

1974. Three Castles and Gold Flake followed in 1878 and Woodbine ten years later.

In 1901 Sir William Henry Wills formed the Imperial Tobacco Company from

a merger of W.D. & H.O. Wills with seven other British tobacco companies. Imperial

remains one of the world's largest tobacco companies. Embassy was introduced in

1914 and relaunched in 1962 with coupons. The last member of the Wills family to

serve the company was Christopher, the great great grandson of H.O. Wills I. He

retired as sales 1969.

Rural initiativesITC's Agri-Business is India's second largest exporter of agricultural products.

ITC is one of the India's biggest foreign exchange earners (US $ 2 billion in the last

decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture

significantly enhance its competitiveness by empowering Indian farmers through the

power of the Internet. This transformational strategy, which has already become the

subject matter of a case study at HarvardBusinessSchool, is expected to progressively

create for ITC a huge rural distribution infrastructure, significantly enhancing the

Company's marketing reach.

Global and other Honours

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.



ITC Hotel Royal Gardenia, Bengaluru is the first Indian Hotel and world's largest, to

get the LEED Platinum rating - the highest green building certification globally.

The Stockholm Challenge 2006 for the e-Choupal initiative. This award is for using

Information Technology for the economic development of rural communities.

Vision

Sustain ITC's position as one of India’s most valuable corporations through world

class performance, creating growing value for the Indian economy and the Company’s

stakeholders.

Mission

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

environment, delivering superior and sustainable stakeholder value.

The following are the businesses and products of I.T.C

Cigarettes

.

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it

has a leadership position in every segment of the market. It's highly popular portfolio of

brands includes Insignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut,

Players, Scissors, Capstan, Berkeley, Bristol and Flake, Silk Cut and Duke.DR.JYOTHIRMAYI DEGREE COLLEGE, ADONI 33 DEPT. OF MANAGEMENT


Sunfeast

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.

ITC entered the into different segments like Atta market with the launch of

Aashirvaad Atta, biscuits with Sunfeastrange of Glucose, Marie and Cream Biscuits,

confectionery segment with 'mint-o' and 'Candyman', salted snacks with Bingo.

Lifestyle Retailing

ITC's Lifestyle Retailing Business Division has established a nationwide

retailing presence through its Wills Lifestyle chain of exclusive specialty

stores.Coming to wills it is very nice brand over all the world and it produced

exclusive spots wear, it designed many international products for men and women

separately.

ITC forayed into the youth fashion segment with the launch of John Players in

December 2002.



Personal Care

ITC forayed into the Personal Care business in July 2005.ITC's Personal Care

portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'VivelUltraPro', 'Vivel' and

'Superia' brands has received encouraging consumer response and is being

progressively extended nationally.

Education and Stationery

ITC made its entry to the education and stationery business with its Paperkraft

brand in the premium segment in 2002; and later expanded into the popular segment



with its Classmate brand in 2003. By 2007, Classmate became the largest Notebook

brand in the country.

Safety Matches

The Matches business leverages the core strengths of ITC in marketing and

distribution, brand building, supply chain management and paperboard & packaging to

offer Indian consumers high quality safety matches. ITC's range of Safety matches

includes popular brands like iKno, Mangaldeep, Stylites, Aim and Aim Mega.

Paperboards and Specialty Papers

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

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

wide spectrum of packaging, graphic, communication, writing, printing and specialty

paper requirements through its four world-class manufacturing units.



Packaging

ITC's Packaging & Printing Business is the largest value added converter of

paperboard packaging in South Asia. It converts over 70,000 tonnes of paper, paperboard

and laminates per annum into a variety of value-added packaging solutions for the food

& beverage, personal products, cigarette, liquor and consumer goods industries.

Its client list includes several well-known national and international companies

like Nokia, Colgate Palmolive, PernodRicard, Diageo, British American Tobacco,

Philip Morris International, Agio Cigars, UB Group, Tata Tetley, Tata Tea, Reckitt

Benckiser, RadicoKhaitan, Akbar Brothers, Surya Nepal, VST Industries, etc.

Agri Commodities & Rural Services



ITC's Agri Business Division is the country's second largest exporter of agri-

products. It currently focuses on exports and domestic trading of: Soyameal- Rice

(Basmati), Wheat Shrimps and Prawns ,Fruit Purees/Concentrates, IQF/Frozen Fruits,

Organic Fruit Products, Fresh Fruits Coffee, Black Pepper, Chilly, Turmeric, Ginger,

Celery and other Seed Spices

Leaf Tobacco

ITC pioneered the cultivation and development of Leaf Tobaccos in India.

Nearly a century of creating customer delight ensures that globally, ITC's Leaf

Tobacco business is synonymous with being "The One Stop Shop for Quality Indian

Tobaccos".

Hotels



India's premier chain of luxury hotels was launched on October 18, 1975, with

the opening of its first hotel - Chola Sheraton in Chennai. Since then the ITC Hotels

brand has become synonymous with Indian hospitality. With over 100 hotels in more

than 90 destinations, ITC Hotels has set new standards of excellence in the hotel

industry in Accommodation, Cuisine, Environment and Guest Safety.



CHAPTER-IV & V

DATA ANALYSIS

&

INTERPRETATION



1. Have you ever used I.T.C products?

SNO PARTICULARS PERCENTAGE(%)

1 YES

84

2 NO16

Graph

Yes No0

10

20

30

40

50

60

70

80

90

Graph1

The above graph shows usage of I.T.C products in the market. According to

the graph 84% of people are using the I.T.C products and 16% of people are not using

them. By the help of this graph we came to know that most number of people are

using I.T.C products.



2. Do you think I.T.C products are available without any Interruption?

PARTICULARS PERCENTAGE (%)

YES 54

NO 46

Graph

Yes No0

10

20

30

40

50

60

70

80

90

100

Graph 2

The above graph shows the availability of I.T.C products. The graph shows 54%

of respondents are satisfied with the availability of I.T.C products there is free

supply of products, so they are satisfied , 46% are not satisfied with the

availability of I.T.C products are not frequently available in villages, so they are not

satisfied.



3. Does I.T.C products are available to reasonable prices?


YES 40

NO 60

Graph

Yes No0

10

20

30

40

50

60

70

Graph 3

The above graph shows how many people are satisfied with price of I.T.C

products.40% are satisfied because they are from rich and above middle class

families.60% are not satisfied because they are from below middle class families so

they are not satisfied with price of I.T.C products.



4. Are you satisfied with the quality and the quantity of the

Products?


YES 78

NO 22

Graph

Yes No0

10

20

30

40

50

60

70

80

90

Graph 4

In the above graph shows the satisfactory level of consumers towards quality

and quantity of I.T.C products.78% of respondents are satisfied because they are

enjoying the quality and quantity of I.T.C products and 22% are not satisfied because

they want more from I.T.C products.



5. Is advertising of I.T.C is up to satisfactory level?


YES 54

NO 46

Graph

Yes No42

44

46

48

50

52

54

56

Graph 5

The graph shows satisfactory level of consumers towards advertisements of

I.T.C products.54% of respondents are satisfied because the advertisements of I.T.C

arecolorful and attractive and 46% are not satisfied because they not aware of

advertisements of I.T.C products.



6. Will you refer I.T.C products to your relatives and friends?


YES 80

NO 20

Graph

Yes No0

10

20

30

40

50

60

70

80

90

Graph 6

The above graph shows the reference level of I.T.C products.80% of

respondents refer I.T.C products to their relatives and friends because they are

satisfied with I.T.C products in all aspects and 20% of respondents are not satisfied

with I.T.C products so they do not refer the I.T.C products to others.



7. Does the company perform any social welfare activities?


YES 82

NO 18

Graph

Yes No0

10

20

30

40

50

60

70

80

90

Graph 7

The above graph shows the performance activities of I.T.C products out of 100%,

82% of respondents know about the social welfare activities performed by I.T.C and

just 18% of respondents do not know about the social welfare activities done by ITC.



8. Do you think company is changing according to consumers wishes?


YES 52

NO 48

Graph

Yes No46

47

48

49

50

51

52

53

Graph 8

The above graph shows weather I.T.C is changing according to consumer’s

wishes. Out of 100% of respondents 52% only satisfy because they are satisfied with

the newly launched I.T.C products and 48% are not satisfied because they need

something more from I.T.C.



9. Do you think that I.T.C has advantage over its competitors?


YES 64

NO 36

Graph

Yes No0

10

20

30

40

50

60

70

Graph 9

The above graph shows weather I.T.C has advantages over its competitors. Out of

100% of respondents 64% agreed that I.T.C has advantages over its competitors as no

other company has wide range of products as I.T.C and 36% do not accept above

statement because they use other company products.



10. What makes you to buy I.T.C products?

TYPE PERCENTAGE (%)

PRICE 14

BRAND 26

ADS 26

QUALITY 34

Graph

Price Brand Ads Quality0

5

10

15

20

25

30

35

40

Graph 10

The above graph shows that what makes the consumers to buy I.T.C products out of

100% of respondents 14% of respondents buy I T C products because of price, 26% of

respondents buy I.T.C products because of brand name another 26% of respondents buy

because of ads and 34% of respondents buy I.T.C products because of quality.



11. Who influenced you to buy I.T.C products?

TYPE PERCENTAGE (%)

FAMILY 40

ADS 44

DEALERS 2

REFERENCE GROUPS 14

Graph

Family Ads Dealers Reference Groups0

5

10

15

20

25

30

35

40

45

50

Graph 11

The above graph shows by whom consumers influenced to buy I.T.C products.

Out of 100% of respondents 40% are influenced by family, 44% of respondents are

influenced by ads, just 2% of respondents are influenced by dealers and 14% of

respondents are influenced by reference groups.



12. How do you rate I.T.C products?

TYPE PERCENTAGE (%)

EXCELLENT 8

GOOD 64

AVERAGE 26

POOR 2

Graph

Excellent Good Average Poor0

10

20

30

40

50

60

70

Graph 12

The above graph shows the rating of I.T.C products out of 100% of

respondents 8% rate I.T.C products excellent, 64% of respondents rate I.T.C products

very good, 26% of respondents rate I.T.C products average and just 2% rate I.T.C

products poor.



13. When you differentiate the ITC Product with other products on which basis you can do?

TYPE PERCENTAGE (%)

Price 10

Quality & Quantity 35

Helping in Poor 30

Packaging 25

GRAPH

PRICE QUALITY & QUANTITY

HELPING IN POOR

PACKAGING0

5

10

15

20

25

30

35

40

Graph 13


respondents 10% rate I.T.C products price, 35% of respondents rate I.T.C products

quality & quantity, 30% of respondents rate I.T.C products helping in poor and just

25% rate I.T.C products packaging.



14. ITC products providing good advertisement with their brand ambassadors or not?

particulars PERCENTAGE (%)

YES 60

NO 40

Graph

YES NO0

10

20

30

40

50

60

70

Graph 14


respondents 60% of respondents agreed that ITC providing good advertisement with

their brand ambassadors and 40% of respondents not agreed.



SWOT analysis

SWOT analysis gives information, under which a company operates. A SWOT

(strengths, weakness, opportunities, threats) analysis consists evaluating company’s internal

strength and weakness and external opportunities and threats.

SWOT analysis of I.T.C:

Strength:

Wide product range and diversified businesses.

Well established brand image.

Strong market share.

Quality, quantity and price is satisfactory.

Corporate social responsibility.

Better manufacturing and innovation capabilities.

Dynamic according to customer’s preferences and tastes.

I.T.C products are useful to all kinds of people in their daily schedule.

Weakness:

Weak advertising and publicity.

Target market is mainly concentrated, only in northern part of India.

Falling behind research and development.



Opportunities:

Expanding products in international market, with help of the globalization.

Serving additional customer groups.

Faster market growth and increase in demand for consumer product in the country.

Increasing consumer loyalty.

Threats:

Stiff competition from competitors.

Entry of low cost competitors.

Change in buyer needs and tastes.



CHAPTER-VI

FINDINGS

&

SUGGESTIONS CONCLUSION



Findings

1. Most of consumers are using I.T.C products because I.T.C has wide range of products

and services useful in all walks of life.

2. The products are available for reasonable prices, affordable by all classes and also

premium range available for high-end consumers.

3. The quality and quantity of products are quite satisfactory when compared to the

competitors.

4. Main asset of I.T.C is its goodwill. As it has history of 100 years and dedication to

serve consumers. They believe that “consumer is the king”

5. People are satisfied with the advertising, as the celebrities like Sharukh khan, Deepika

padukune, Ranbir kapoor are the brand ambassadors.

6. Many people refer I.T.C products to their friends and relatives as they are satisfied

with quality, quantity and price.

7. It is also changing dynamically.

8. As I.T.C has many businesses all over the India, it is providing employees to lakhs of

people.

9. It is also helping society in the form of children’s primary education, project by

contributing some amount from sale of classmate books. Its main objective is rural

development.

10. The I.T.C e-choupal was very effective, this creates awareness among farmers about

agriculture,



Suggestions & conclusions

After making a detailed study, the following suggestions are given:

The products must be available to rural customers also; it must not be limited to cities

and towns.

Advertising is not up to the mark when compared to competitors. It must be

improved.

Some products like John players are of high cost, I.T.C hotels charge very high rates,

these prices must be made reasonable, which can be affordable by middle class

people.

Programs must be conducted to create awareness about wide range of I.T.C products.

The e-choupal is prevalent in northern parts of India only. Measures must be taken to

launch in other parts of the country also.



CHAPTER - VII

BIBLIOGRAPHY

QUESTIONNAIERS

ANNEXURE



Bibliography

Marketing management - Philip Kotler

Web - Google Search

Site - www.ITC.portal.com.



QUESTIONNAIRE



QUESTIONNAIRE

DEAR RESPONDENTS,

I am METHUKULA VINAY studying my final year B.B.M at

DR.JYOTHIRMAYI DEGREE COLLEGE. As a partial fulfillment of my course ,

I am taking up a project on “consumer behavior towards I.T.C products”.

Please spend some of your valuable time to fill this questionnaire.

I assure that the information provided by you will be kept confidential and will be used only

for academic purpose.

YOUR’S FAITHFULLY,

METHUKULA VINAY.DR.JYOTHIRMAYI DEGREE COLLEGE, ADONI 63 DEPT. OF MANAGEMENT


NAME :

AGE :

OCCUPATION:

1. Have you ever used I.T.C products?[ ] yes [ ] no

2. Do you think I.T.C products are available with out any interruption?[ ] yes [ ] no

3. Does I.T.C products are available to the reasonable prices?[ ] yes [ ] no

4. Are you satisfied with the quality and the quantity of the products?[ ] yes [ ] no

5. Is advertising of I.T.C is up to satisfactory level?[ ] yes [ ] no

6. Will you refer I.T.C products to your relatives and friends?[ ] yes [ ] no

7. Does the company perform any social welfare activities?



[ ] yes [ ] no

8. Do you think company is changing according to consumers wishes?[ ] yes [ ] no

9. Do you think that I.T.C has advantage over its competitors?[ ] yes [ ] no

10. What makes you to buy I.T.C products?[ ] price [ ] brand

[ ] ads [ ] quality

11. Who influenced you to buy I.T.C products?[ ] family & friends [ ] ads

[ ] dealers [ ] reference groups

12. How do you rate I.T.C products?[ ] very good [ ] good

[ ] average [ ] poor

13. When you differentiate the ITC Product with other products on which basis you can do?

[ ] Price [ ] Quality & Quantity

[ ] Helping in Poor [ ] Packaging

14. ITC products providing good advertisement with their brand ambassadors or not?

[ ] Yes 60% [ ] No 40%

15. Your valuable suggestions for growth of the company:



ANNEXURE


Mega Final Vinay

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