Final Project Itc

A PROJECT REPORT ON
“A STUDY OF MARKETING
STRATEGIES OF ITC’S
PRODUCTS: WITH SPECIAL
REFERENCE TO BINGO”
for the partial fulfilment of Master of Business

Administration under Biju Pattnaik University
of Technology, Rourkela.
ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED

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In Guidance of:
Internal Guide: external guide:
Prof. SWAPNA MENON Mr. ASHUTOSH KUMAR
(Faculty marketing) CITY MANAGER,
ITC LIMITED.
NAGPUR
Acknowledgement
I
am grateful and obliged to Mr. Ashutosh Kumar ( CITY INCHARGE) ITC
LIMITED. NAGPUR, who took the pain to guide me and help me to conduct my
study on time.
My sincere thanks go to Mr, Sushil Mr. Ritesh, Mr. Atul, of ITC LTD. Who guided
me time to time for completion of my project.
I am also highly obliged to Prof. Swapna Menon (Faculty Marketing, RIMS) for his
kind support and guidance given to me from time to time for the completion of my
project.

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I am also immensely thankful to Rourkela Institute of management studies, which
has recommended me for doing the project in the reputed organization and
extremely inspiring to me. I feel deeply regards to my family members and faculty
members of RIMS, who gave me encouragement, which enabled me to reach at this
stage.
Finally I am thankful to them who have helped me directly or indirectly during the
period of project preparation.
Ranjit Kumar Agarwal
Declaration
I
, Ranjit kumar Agarwal, hereby declare that the dissertation entitled “A
Study of Marketing Strategies of ITC’s Products:
with special Reference to BINGO”, submitted by me in partial

fulfilment of degree of master of business administration, Rourkela Institute of
Management studies, under Biju Pattnaik University of Technology, is my own.

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This work has not been submitted to any other university nor has been published
ever before.
I would like to declare that the information provided in the project report is authentic
to best of my knowledge, as it has been obtained through market survey done
entirely by me and verified by the concerned authority.
Date: Ranjit Kumar Agarwal
Place: Rourkela Reg. No. 0906260100
Batch: 2009 – 2011
Guide Certificate

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This is to certify that the project entitled “A Study of Marketing
Strategies of ITC’s Products: with special Reference to
BINGO”, is a bona fide work done by RANJIT KUMAR AGARWAL bearing

Regd.No.0906260100 under my guidance and supervision and no part of the report
has been submitted for the award of any other degree or published in any other form
to the best of my knowledge and belief.
Prof. SWAPNA MENON

MARKETING FACULTY
ROURKELA INSTITUTE OF MANAGEMENT STUDIES,
(ROURKELA)

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Company certificate

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Preface
T
his project work has been designed to get the total market scenario of ITC’s
Products.
This is generally a study to know the marketing strategies of Bingo and its
competitors, and customers & retailers behaviour towards newly launched product.
The project work seeks to:
 Analyse the success, marketability and future growth prospects of BINGO.
 Study the spending habits and motivation of consumers for buying snacks.
 Reaction of people towards new launches.
 Customer behaviour towards various schemes offered by BINGO.
 Retailer’s behaviour towards different snacks products.

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Contents
Title Page No.
CHAPTER -1
Introduction……………….………………........
Objective of Project…………………………….
Industry Profile of Food Processing
Industry………………………………………….
➢ Indian Food Processing industry……....
➢ Indian Snacks Industry: An Overview....
➢ SWOT Analysis of Indian Snacks
Industry……………………………………
CHAPTER-2
Profile of the Company……………………....

➢ Company Background…………………..
➢ Products…………………………………..
➢ Areas of diversification…………………..
➢ Culture…………………………………
 ITC’s Vision………………………..
 ITC’s Mission………………………
 ITC’s Core values…………………
 ITC’s Philosophy………………….
CHAPTER-3
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➢ Literature Review……………………….
CHAPTER-4
Study of Selected Research Problem………

➢ Statement of Research Problem………..
➢ Statement of Research Objective……….
➢ Research Design & Methodology………..
➢ Analysis of Data……………………………
➢ Summary of Other Findings………………
➢ Recommendation &Conclusion…………
APPENDIX……………………………………….
➢ Questionnaire Sample……………………
➢ Bibliography………………………………..
Introduction
I
n the project, the nature of research is exploratory research whereby the efforts
have been made by executing the research in various markets of Nagpur City,
Maharashtra (Pardi, Ravi Nagar, Kweta Colony, Bardi, Sadar, Kalamana Market).
A systematic as well as well – designed approach has been adopted while
conducting research about market characteristics of telecom industry.
It is followed by the research methodology which is adopted has been defined with
the help of collected data. The data has been collected about the market share of
various Snacks Companies . The various Snacks Companies considered in this
report are: Fritolay, Haldirams, ITC, Parle and Diamond. The next step was

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designing the sampling design, but in this research total population was taken in
account. Much effort was made to cover each & every outlet in the target area.
The primary data was collected through a prescribed questionnaire along with
personal interview. However, secondary data were collected referring various books
and websites.
Questionnaire contains both open ended and closed ended question, on the basis of
which the analysis was done with the help of clear graphical representation which
consists of Pie chart, Bar chart and other necessary graphs. The next step was the
most important step for analyzing the data looking at the actual findings of the
project and recommends the company about what to taken under consideration for
launching of its product and service.
Objective of the Project

1. To study the snacks industry as a part of food processing industry.
2. To study the company profile of ITC Ltd the makers of BINGO.
3. To study the trends in snacks industry.
4. To analyse and interpret the results of sample collected.
5. To determine the future course of action by ITC.
6. To find conclusions to our project.

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Industry Profile of Food
Processing Industry
Indian Food Processing industry
Food processing industry in India is a sunrise sector that has gained prominence in
the recent years. Availability of raw materials, changing lifestyles and relaxation in
policies has given a considerable push to the industry’s growth. This sector is
among the few that serves as a vital link between the agriculture and industrial
segments of the economy. Strengthening this link is of critical importance to improve
the value of agricultural produce; ensure remunerative prices to farmers and at the
same time create favourable demand for Indian agricultural products in the world
market. A thrust to the food processing sector implies significant development of the
agriculture sector and ensures value addition to it.

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Ministry of Food Processing Industries
The Ministry was set up in 1998 and the industry segments that come under its
purview are:
 Fruit & Vegetable processing (including freezing and dehydration)
 Grain Processing
 Processing of Fish (including canning and freezing)
 Processing and refrigeration of certain agricultural products, dairy
products, poultry and eggs, meat and meat products
 Industries related to bread, oilseeds, meals (edible), breakfast foods, biscuits,
confectionery, savory snacks, malt extract, protein isolate, high protein food,
weaning food and extruded food products (including other ready-to-eat
foods)
 Beer, including non-alcoholic beer
 Alcoholic drinks from non-molasses base
 Aerated water and soft drinks

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 Specialized packaging for food processing industries.
The Ministry of Food Processing Industries, GoI, has estimated the size of the Indian
food market at US$ 191 billion (Rs 8,600 billion). The processed food market is
projected to be over US$ 100 billion, of which the primarily processed food market
accounts for 60%, while the value-added processed food market is around 40%.
The average annual growth of the food processing industry has been around 8% bet
ween FY01-FY06. The segments that have driven the growth are the beverages and
meat & meat products and processed fish sectors. The food processing industry in
India has a share of 1.5% in the total GDP of the country, and as part of total
manufacturing accounts for 9%. India’s share in world trade in respect of processed
food is about 1.6%.
An extensive and highly fragmented industry, the food processing sector largely
comprises of the following sub-segments: fruits & vegetables, milk and milk
products, beer & alcoholic beverages, meat and poultry, marine products, grain
processing, packaged/convenience food and packaged drinks. A large number of
players in this industry are small sized companies, and are largely concentrated in
the unorganized segment. This segment accounts for more than 70% of the output
in volume terms and 50% in value terms. However, though the organized sector is
comparatively small, it is growing at a much faster pace.

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Indian Snacks Industry: An Overview
Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack is
described as a small quantity of food eaten between meals or in place of a meal.
Snack food generally comprises bakery products, ready to eat mixes, chips,namkee
nand other light processed foods According to the ministry of food processing, the
snack food industry is worth Rs100 billion in value and over 4,00,000 tonnes in term
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sof volume. Though very large and diverse, the snacks industry is dominated by the
unorganized sector. According to an Apeda survey almost 1,000 snack items and
300 types of savouries are sold across India. The branded snacks are sold at least
25% higher than the unbranded products. Savoury snacks have been a part of
Indian food habit, since almost ages. Though there is no particular time for snacks,
normally they are consumed at teatime. The variety is almost mind- boggling with
specialties from all regions, which have gained national acceptance.
The industry has been growing around 10% for the last three years, while the
branded segment is growing around 25% per annum to stand at Rs 5,000-Rs 5,500
crore, due to various reasons like Multiplex culture, snacking at home while watching
TV, pubs and bars (where they are served free). AC Nielsen's retail audit shows that
the large sales volumes are due to a marked preference for ethnic foods, regional
bias towards indigenous snacks and good value-for- money perception. Of course
the branded segment is much smaller at Rs 2,200 crore, which is what makes it so
attractive to food Companies that are looking at bigger shares. In the branded
snacks market, to get down to basics, Frito Lay commands a share of 45%, followed
by Haldiram’s at 27% and ITC at 16%. The rest is divided between a handful of new
entrants, wannabes and many regional players. Of the wide range of snacks
available, potato chips constitute a sizeable segment of the Indian snack food
industry, according to India Infoline. The potato chip market is generally an

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unorganized industry. Nearly all potato chip snack products are manufactured and
sold locally. There is also no uniform standard for packaging, as there is in Europe,
the United States and other more developed regions. Many snack foods are sold
loose or packaged in poly-pouches, which may only be folded, or in some cases,
stapled closed. As the Indian economy continues to grow, and production standards
improve, many snack food companies are making significant investments into plant
equipment and packaging machinery. Pepsi Foods Ltd., now known as Frito-Lay
India Ltd., produces India's largest snack food manufacturers brands, including Ruffl
es, Hostess, Cheetos and Uncle Chips. Frito Lay's story is an example of how Ameri
can recipe were adjusted to satisfy local tastes. Procter & Gamble's Pringles brand
of potato crisp was launched in Delhi in 1999. Pringles is also a baked potato crisp,
unlike many other potato based Indian snack foods that are fried. P&G currently imp
orts the Pringles product and therefore the product has been priced at a premium
and is marketed to a micro-niche.

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SWOT Analysis of Indian Snacks Industry
Strengths
 Abundant availability of raw material
 Vast network of manufacturing facilities all over the country
 Vast domestic market
 Urbanisation
Weaknesses
 Low availability of adequate infrastructural facilities
 Lack of adequate quality control & testing methods as per international stand-
ards supply chain due to a large number of intermediaries.
 High requirement of working capital
Opportunities
 Rising income levels and changing consumption patterns
 Favourable demographic profile and changing lifestyles
 Integration of development in contemporary technologies such as electronics,
material science, bio-technology etc. offer vast scope for rapid improvement
and progress
 Opening of global markets

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Threats
 Affordability and cultural preferences of fresh food
 High inventory carrying cost
 High taxation
 High packaging cost
 Competition between national and regional players.

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PROFILE OF THE COMPANY
Company Background
ITC is one of India's foremost private sectors companies with a market capitalization
of nearly US $ 22 billion and a turnover of over 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 also ranks among India's top 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.

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ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty
Papers, Packaging, Agri- Business, Packaged Foods & Confectionery, Information
Technology, Branded Apparel, Greeting Cards, 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 and Greeting Cards.
As one of India's most valuable and respected corporations, ITC is widely perceived
to be dedicatedly nation-oriented. Chairman Yogesh Chandra Deveshwar calls this
source of inspiration "a commitment beyond the market". In his own words: "ITC
believes that its aspiration to create enduring value for the nation provides the
motive force to sustain growing shareholder value. ITC practices this
philosophy by not only driving each of its businesses towards international
competitiveness but by also consciously contributing to enhancing the
competitiveness of the larger value chain of which it is a part."
ITC's diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched distribution
reach, superior brand-building capabilities, effective supply chain management and
acknowledged service skills in hotelier. Over time, the strategic forays into new businesses
are expected to garner a significant share of these emerging high-growth markets in India.

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ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is
one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last
decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture
significantly enhance its competitiveness by empowering Indian farmers through the
power of the Internet. This transformational strategy, which has already become the
subject matter of a case study at Harvard Business School, is expected to
progressively create for ITC a huge rural distribution infrastructure, significantly
enhancing the Company's marketing reach.
ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited,
is aggressively 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 international
awards for quality, productivity, safety and environment management systems. ITC
was the first company in India to voluntarily seek a corporate governance rating.
ITC employs over 26,000 people at more than 60 locations across India. The
Company continuously endeavours to enhance its wealth generating capabilities in a
globalizing environment to consistently reward more than 3, 78,000 shareholders,
fulfil the aspirations of its stakeholders and meet societal expectations. This over-
arching vision of the company is expressively captured in its corporate positioning
statement: “Enduring Value. For the Nation. For the Shareholders”

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 ITC was established on August 24, 1910 as the Imperial Tobacco Company
of India Limited in Kolkata. Initially, the company was involved in the trading
of imported cigarettes.
 In 1925, in a backward integration move, the company started a packaging
and printing business.
 The name of the company was changed to India Tobacco Company Limited
(I.T.C. Ltd.) in 1974.
 In 1975, I.T.C. Ltd., through ITC-Welcome group, tied up with the US-based
Sheraton Corporation to enter the hospitality industry. It acquired its first hotel
in Madras (later renamed Chennai) in Tamil Nadu and called it the Welcome
group Chola Sheraton.
 I.T.C. Ltd established ITC Bhadrachalam Paperboards Ltd. (IBPL) in 1975.
The company started production at its integrated pulp and paper/board
manufacturing facility at Bhadrachalam, Andhra Pradesh, in 1979.
 In 1990, I.T.C. Ltd. set up an International Business Division (IBD) for export
of agricommodities.
 I.T.C. started a greeting cards business under the brand name Expressions in
the year 2000.
 In the same year, I.T.C. also entered the fashion retailing business by
extending its well known cigarette brand Wills. The retail outlets were called

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Wills Lifestyle and offered premium leisure wear for men and women under
the Wills Sport brand.
 In September 2001, the company was renamed ITC Ltd (without full stops,
and with no meaning attributed to the alphabets).
 In 2001, ITC made an entry into the foods business.
 In 2002, the company launched another clothing brand, John Players, which
targeted the urban youth.
 In 2004, ITC was one of eight Indian companies to make it to the “Forbes ‘A’
List”8 which featured 400 of “the world’s best big companies”.
 In Oct 2005, ITC has launched an exclusive line of prestige fine fragrances
and personal care products under the Essenza Di Wills brand.
 In late 2007, ITC launched Fiama Di Wills soaps and shampoos following the
success of Essenza Di Wills.
 In Dec 2007 ITC launches ECF (Elemental Chlorine Free). ITC is the first and
only Company in India using the ECF technology.

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PRODUCTS OF THE COMPANY

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Areas of Diversification
ITC has transformed itself from a leading cigarette manufacturer to an umbrella
group that offers a diversified product mix to enhance its brand image and reduce
dependency on tobacco related products. It has forayed into the hospitality service
industry and has become a major player in the hotels segment. Its position in the
FMCG (fast moving consumer goods) business is also on a growth curve; especially
its confectionery and biscuits which are slated to achieve the top ranks among its
peers. It has made heavy investments to strengthen its IT (information technology)
segment and to compete with the big players like Infosys and Wipro. Although the
ITC group is marketing its image as an ideal corporate citizen and a company that
takes its social responsibility seriously, it still earns 80% of revenues from selling
cigarettes and other tobacco related products.
The major areas in which ITC has diversified are:
➢ FMCG
It is ITC's strategic intent to secure long-term growth by synergising and blending the
diverse pool of competencies residing in its various businesses to exploit emerging
opportunities in the FMCG sector.

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ITC’s FMCG portfolio comprises:

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➢ HOTELS
ITC Welcomgroup, India's premier chain of luxury hotels was launched on October
18, 1975, with the opening of its first hotel - Chola Sheraton in Chennai. Since then
the ITC-Welcomgroup brand has become synonymous with Indian hospitality. With
over 100 hotels in more than 80 destinations.
Examples:
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BUKHARA, DAKSHIT, DUM PUKHT, WEST VIEW, PAN ASIAN, WELCOME
HERITAGE, FORTUNE HOTELS etc.
➢ PAPERBOARDS AND PACKAGING

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ITC's Paperboards and Specialty Papers Division is India's largest, technologically
advanced and most eco-friendly, paper and paperboards business. The business
caters to a wide spectrum of packaging, graphic, communication, writing, printing
and specialty paper requirements through its four world-class manufacturing units, 6
sales offices and a network of more than 50 dealers in India, along with an
international trade network of 15 distributors / agents.

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The product range includes:
ITC's Paperboards & Specialty Papers business has won numerous awards for quality,
environmental management systems and product excellence.
➢ AGRI-BUSINESS

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ITC's pre-eminent position as one of India's leading corporates in the agricultural
sector is based on strong and enduring farmer partnerships that has revolutionized
and transformed the rural agricultural sector.
ITC's Agri Business Division is the country's second largest exporter of agri-
products with exports of over Rs. 1000 Crores (Rs. 10 billion). Its domestic sales
of agri-products are in excess of Rs. 1500 Crores (Rs. 15 billion).
 Agri- exports
 E-choupal
➢ INFORMATION TECHNOLOGY

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ITC Infotech, a global IT services company, is today one of India's fastest growing IT
services and solutions providers.
ITC Infotech offers IT services and solutions across five key industry verticals:
Banking, Financial Services & Insurance (BFSI), Consumer Packaged Goods
(CPG) & Retail, Manufacturing & Engineering Services, Travel, Hospitality &
Transportation and Media & Entertainment.
CULTURE
ITC’s Vision
• Sustain ITC's position as one of India's most valuable corporations through
world-class performance.
• Create growing value for the Indian economy and the Company's stakeholders.
ITC’s Mission

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• To enhance the wealth generating capability of the enterprise in a globalizing
environment
• Deliver superior and sustainable stakeholder value.
ITC’s Core Values

The company’s Core Values are aimed at developing a performance-oriented
organization that is highly customer focused and also creates value for those holding
stake in it. It fully understands that it has a commitment to its stakeholders to act as
a guardian of the company from stakeholder’s point of view and deliver results in a
manner that actualizes stakeholder’s interest on a long-term basis.
It also delivers on the commitment to its customers by consistently addressing their
needs on product quality, value and overall satisfaction. It respects the values of
people and also encourages individuals to pursue their dreams, values their
differences and helps them to experiment in the pursuit of various opportunities.
ITC firmly believes in the concept of Excellence with their mantra being, “we do what
is right, do it well and win. We will strive for excellence in whatever we do”. It is
constantly in the pursuit of better and newer products, processes, services and
management practices. Apart from the interest of shareholders they also address
their commitment to the nation to generate economic value, at the same time
ensuring that in achieving these goals no compromises are made whatsoever in
complying with rules and regulations as specified by law.

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ITC’s Philosophy
ITC believes in practicing ethical behaviour among the corporate citizen. The
company follows an HR policy that is regulated by Teamwork, Trust, Collaboration,
Mutuality, Meritocracy, Objectivity, Collaboration, Self-respect and Human-dignity. It
is also deeply committed to make the company a gender friendly place for each
individual while also ensuring enhancement of equal opportunities for men and
women, preventing sexual harassment of any form and the adherence to good
employment practices. It is ensured that the interest of the company is foremost and
in this context acceptance of any kind of gifts or payments from suppliers or
customers is viewed as a serious breach of company discipline. And such acts are
also considered as damaging to the reputation of the company.

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High standards of housekeeping and hygiene are followed to ensure excellent
physical working conditions. It is understood that all the directors, senior
management and employees shall conduct themselves in an honest manner and
avoid any conflict of interest.
The top officials and employees of ITC believe that ITC provides them freedom at
work and resources to experiment. Employees take pride in working for ITC for its
work culture, environment, and the way people are treated. They are consulted
before a new project\system is introduced and their concerns and suggestions
addressed. ITC also gives a lot of input to develop their skill and career. They give
utmost importance to equal opportunities, better work environment.

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Literature Review
Marketing Mix
Product:
Anything offered to a market for attention, acquisition, use, or consumption that
might satisfy a need or want. Product provides the functional requirements sought
by consumers.
Product
 Is a bundle of satisfaction that a customer buys.
 Almost always a combination of tangible and intangible benefits
A product may be new to the company, but not to the customers and in reverse a
product may be new to the customers but not to the company.
NEW PRODUCT DEVELOPMENT PROCESS:
 IDEA GENERATION
 IDEA SCREENING

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 CONCEPT TESTING
 MARKETING STRATEGY DEVELOPMENT
 BUSINESS ANALYSIS
 PRODUCT DEVELOPMENT
 TEST MARKETING
 COMMERCIALISATION / LUNCING
Price:
Pricing Policies:
If a firm has the power in its market to set its own price, it can adopt a pricing policy.
 Market penetration pricing: setting prices of products relatively low
compared to those of similar products
 Destroyer pricing: Deliberate price cutting or offer of ‘free gifts/products’ to
force rivals (normally smaller and weaker) out of business or prevent new
entrants
 Follow-the-leader pricing: A pricing strategy adopted by firms which copy
the market leader's prices
 Skimming: High price, Low volumes, Suitable for products that have short
life cycles or which will face competition at some point in the future.

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Pricing Methods:
1- Cost Based Pricing
cost plus, markup pricing
easy, costs known, minimizes price competition
ignores demand elasticity, not profit maximizing
target return of investment
use breakeven analysis to find a price to yield a target ROI
…use sales volume to derive pri
2- Demand Based Pricing
 Perceived value
 It requires detailed knowledge of buyer behavior and demand elasticity
 Only true profit maximizing strategy
 It ignores costs and competitors
3- Competition Based Pricing
 Going rate pricing
 Used when costs difficult to measure
 Competitors lack differential advantage
 Sealed bid
 Forces competitors to lowest price
4- Select Final Price

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 Psychological pricing
 Know demand elasticity
 Start high, work toward costs
 Discounts
 Cash, trade, quantity, or seasonal
 Promotional pricing.
5- Value Pricing
 Price set in accordance with customer perceptions about the value of the
product/service
 Examples include status products/exclusive products
6- Loss Leader
 Goods/services deliberately sold below cost to encourage sales elsewhere
7- Price Discrimination
 Charging a different price for the same good/service in different markets
 Requires each market to be impenetrable
 Requires different price elasticity of demand in each market
8- Destroyer/Predatory Pricing
 Deliberate price cutting or offer of ‘free gifts/products’ to force rivals (normally
smaller and weaker) out of business or prevent new entrants
 Anti-competitive and illegal if it can be proved

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Place :
What is a Marketing Channel?

 This is a set of interdependent organizations involved in the process of
making a product or service available for use or consumption.
Channel functions
 Gathers information on customers, competitors and other external market
data
 Develop and disseminate persuasive communication to stimulate purchases
 Agreement on price and other terms so that transfer of ownership can be

effected
 Placing orders with manufacturers
 Acquire funds to finance inventories and credit in the market
 Assume responsibility of all risks of the trade
 Successive storage and movement of products
 Helps buyers in getting their payments through with the banks
 Oversee actual transfer of ownership

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Types of intermediaries
 Distributors
 Wholesalers
 Retailers
 Department stores
Promotion:
Promotion is only a means of communication about the product without the
motive of persuading for that act which a customer do not want to do.
In marketing terms, the role of promotion is to inform, remind and persuade
existing or prospective customers to accept, resell, recommend or use of a
product, service and ideas.
What is Promotion mix?

Promotion mix consists of careful blending of advertising, personal selling, sales
promotion, public relations, publicity and propaganda; to accomplish the
marketer’s promotional objectives.
When deciding the promotional mix, the management should consider:-
 The target audience/ Market size and concentration
 The objective of the promotional effort.
 The nature of the product.

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 The stage of the product’s life cycle.
 The funds available for the promotion/ Resource
 Availability and the cost of each promotional tool.
 Customer information needs
Elements under Promotion mix

a) Advertising
b) Sales Promotion
c) Personal Selling
d) Public Relations
e) Publicity
f) Propaganda

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Study of Selected Research
Problem
STATEMENT OF RESEARCH PROBLEM
In the branded snacks market, to get down to basics, Frito Lay commands a share
of 45%, followed by Haldiram’s at 27% and ITC at 16%. The rest is divided between
a handful of new entrants, parle and many regional players. Out of these ITC’s
Bingo is a new entrant in the market, which was launched in 2007. ITC has launched
Bingo in a wide variety of flavours and formats, ranging from potato chips to finger
snacks. Because of its different and catchy advertisements Bingo has created a
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buzz in the market. Therefore, our aim was to find out the most popular flavour of
Bingo among all the offerings. We began our analysis by dividing people into those
who like to eat snacks and those who don’t. We based our study on the survey of
people who like to eat snacks. This survey was conducted in Nagpur. To collect the
data we designed a questionnaire.
STATEMENT OF RESEARCH OBJECTIVE

The main objectives of our research were as follows:
 To find out what percentage of population likes to eat snacks.
 To find out which flavour of Bingo is most preferred.
 To analyse the reason for the popularity of the most preferred snack
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 To know the satisfaction level of people who eat Bingo
 To find out how much people spend on snacks weekly.
 To find out the preferences of people for different brands
RESEARCH DESIGN & METHODOLOGY

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Research design is the basic framework which provides guidelines for the rest of
research process. It specifies the methods for data collection and data analysis .In
this research project we have used the survey method of data collection, to be more
specific questionnaire method. We conducted a survey in Nagpur. Out of the
universe of 500 our sample size is 50. Respondents in the sample size were asked
to fill the questionnaires to gather the data.
The data for the research has been collected through interaction with people &
personal interview as per the prescribed format of questionnaire. The questionnaire
includes both open ended question and close ended question.
The format of the questionnaire has been attached in the APPENDIX.
Since, I wanted to know the percent of market shares of individual operators in my
area of survey; I followed UMBRELLA SURVEY method for my survey. I took care
that almost all outlets are covered in my area of survey to get the most effective
results.
Steps Involved:
a) I selected a particular area to survey in a particular date.
b) I recognized any shop as general stores and betel shops outlet by looking
at banners, signboards, glow signs, wranglers etc.
c) I started to survey from one corner of the town to another corner and took
care that maximum outlets are covered.

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The outlets consisted of:-
1) General stores
2) Medicine stores
3) Variety Stores
4) Betel shops etc.

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Limitations
There were few limitations to this methodology.
Those were:
a) Large no. of outlets was supposed to be covered within a short interval of
time.
b) Survey was possible only during the peak hour of business.
c) Most of the outlets remained busy & could not co-operate.
d) Many retailers did not cooperate due to fear of vigilance.
e) Many outlets were new & hence gave hypothetical data.
f) Few outlets demanded bribe in lieu of data or information.

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ANALYSIS OF DATA
In order to extract the meaningful information from the data collected an analysis of
data is done using pie charts, bar graphs etc.
The first objective of the research project is concerned with finding
out what percentage of people likes to eat snacks. The pie chart
given below is clear on the percentage of people who like to eat
snacks. Out of 50 respondents 35 like to eat snacks while 15 don’t. 70% likes to eat
snacks while 30% don’t.

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Our second objective is concerned with finding out which flavour of Bingo is
most preferred.
Table showing the responses of people:
Flavours Respondents Respondent
(Value) s (%)
Spicy Masala Potato Chips 3 8
Premium Salted Potato Chips 1 3
Juicy Tomato Ketchup Potato Chips 3 8
Chatkila Nimbu Achar Potato Chips 1 3
Red chilli Bijlee PotatoChips 3 8
Mad Angles 22 61
Tedhe Medhe 1 3
Livewires 2 6
The above table and pie chart shows the responses of the people. It is clear that Bingo’s
Mad Angles dominates the market for Bingo. The second spot is shared by two flavours
equally—Spicy Masala potato chips, Juicy Tomato Ketchup potato Chips and Red Chilli
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Bijlee potato chips. Third most popular format of Bingo is Livewires and the fourth spot is
shared by Salted Potato Chips, Chatkila Nimbu Achar potato chips and Tedhe Medhe.
The third objective was to analyse the reasons for the popularity of the most
preferred flavour.
For this the respondents were asked what do they like most about Bingo. Following
pie chart shows their responses:-
Taste 46
Variety 11
Quality 16
Price 8
Quanti
ty 13
Packag
ing 6

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From the above pie chart we can see that people like the taste of Bingo the
most i.e. they like to eat Mad Angles Because of its unique format and flavour.
Fourth objective was to find out how much people are satisfied with Bingo.
Following pie chart shows the satisfaction level of people:
Satisfied 17
Very Satisfied 45
Somewhat Satisfied 38
The fifth objective was to find out how much people spend weekly on snacks.

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From the above diagram it is clear that most people spend below Rs.50 on
Snacks. And very small part of the sample spends more than Rs.100 on
snacks weekly.
Our sixth and last objective was to find out the preferences of people
for different brands. Here, we aim to find out the most popular brand
of snacks excluding Bingo.

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In the above graph we can see that Frito Lays is the most popular brand
among people followed by Uncle Chips and Haldiram’s. Next is Parle
Nankeens. The least popular brand appears to be Diamond. It may be
because of, it is a local brand and is not so popular in the snack industry in India.
SUMMARY OF OTHER FINDINGS
✔ 17 people out of 36 people who like to eat snacks feel that as compared to
other brands Bingo is much better. Other 12 feel that Bingo is somewhat
better and 7 feel that Bingo is about the same as other brands. No one feel
that Bingo is somewhat worse or much worse than other brands.
✔ When people asked how often they eat Bingo 22 people said once a week
or more often, 11 people said everyday and 3 people said 2-3 times a month.
✔ When people asked about their weekly expenditure on snacks, 56% people
spend below Rs.50, 30% people spend between Rs.50 – Rs.100 and only
14% spend above Rs.100.

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✔ When people asked excluding Bingo which brand snacks like the most,
Lays(Frito-Lay) is the most popular among the people than Uncle chips and
Haldiram’s followed by Parle. The least popular brand is Diamond.
RECOMMENDATION & CONCLUSION
After conducting the survey we are in a position to say that ever since its
launch Bingo as a preferred brand is on a rise. Although Frito Lays is the most
popular brand Bingo has carved a niche for itself. Bingo is in the growth stage
of its life cycle. Given more time it is capable of capturing a larger market
share and giving tough competition to other brands. Overall people seem to be
satisfied with Bingo.

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APPENDIX
QUESTIONNAIRE

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QUESTIONNAIRE
I am RANJIT KUMAR AGARWAL. I am currently doing my SUMMER
INTERNSHIP PROGRAMME(SIP) for ROURKELA INSTITUTE OF
MANAGEMENT STUDIES, ROURKELA under BPUT, Orissa, on “A STUDY OF
MARKETING STRATEGIES OF ITC’s PRODUCTS WITH SPECIAL REFERENCE
TO BINGO”.
Therefore, I would be very grateful to you, if you could spare some of your
valuable time to complete following questionnaire.
Name: Gender:
AGE : City:
OCCUPATION :
PROFESSIONAL 
BUSINESSMAN 
SERVICE 
STUDENT 
ANY OTHER 
General Instructions:
➢ Answer all questions.

➢ Indicate your answer by marking a tick against an appropriate option.
1. Which company’s snack you prefer the most?

a) ITC d) PEPSICO.
b) HALDIRAM’S e) PARLE
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c) DIAMOND
1. Reason for your choice?

a) Good taste c) Good Ad
b) Packaging d) Availability
1. Which flavour you prefer the most?

a) Salted c) Red chilli
b) Tomato d) Any other............
1. How often do you have snacks?

a) Once a week or more often c) 2 to 3 times a
month
b) Everyday d) Occassionally
1. How much do you spend weekly on snacks?

a) Below Rs.50.00 c) more than Rs.100.00
b) Rs.50-Rs.100.00
1. Which media influences you the most?

a) T.V. c) Magazine
b) Newspaper d) Banner
1. What is the reason that makes you remember the Ad.?
a) Message of the Ad. c) Logical reasoning of the
Ad.
b) Frequency of the Ad. d) Characters of the Ad.
1. Score the below factors for the respective companies.( Score 1-5 )
ITC PEPSICO. HALDIRAM PARLE DIAMOND
Taste
Availability

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Price
Brand name
Packaging
Variety
2. Before switching on to …………………, which company’s snack did

you prefer?
a) ITC d) PARLE
b) PEPSICO e) DIAMOND
c) HALDIRAM”s
1. Reason for your choice?

a) Good taste c) Good Ad
b) Packaging d) Availability
2. Which flavour you like of that company?

a) Salted c) Red chilli
a) Tomato d) Any other...........
BIBLIOGRAPHY
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www.itcportal.com
www.wikipedia.com

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A PROJECT REPORT ON

for the partial fulfilment of Master of Business

ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED

Prof. SWAPNA MENON Mr. ASHUTOSH KUMAR

(Faculty marketing) CITY MANAGER,

me time to time for completion of my project.

ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED

members of RIMS, who gave me encouragement, which enabled me to reach at this

period of project preparation.

Ranjit Kumar Agarwal

Study of Marketing Strategies of ITC’s Products:

with special Reference to BINGO”, submitted by me in partial

Management studies, under Biju Pattnaik University of Technology, is my own.

ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED

to best of my knowledge, as it has been obtained through market survey done

entirely by me and verified by the concerned authority.

Date: Ranjit Kumar Agarwal

Place: Rourkela Reg. No. 0906260100

Batch: 2009 – 2011

ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED

Strategies of ITC’s Products: with special Reference to

BINGO”, is a bona fide work done by RANJIT KUMAR AGARWAL bearing

to the best of my knowledge and belief.

Prof. SWAPNA MENON

ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED

ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED

The project work seeks to:

 Analyse the success, marketability and future growth prospects of BINGO.

 Reaction of people towards new launches.

 Customer behaviour towards various schemes offered by BINGO.

 Retailer’s behaviour towards different snacks products.

ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED

Profile of the Company……………………....

Study of Selected Research Problem………

A systematic as well as well – designed approach has been adopted while

conducting research about market characteristics of telecom industry.

various Snacks Companies . The various Snacks Companies considered in this

ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED

launching of its product and service.

Objective of the Project

2. To study the company profile of ITC Ltd the makers of BINGO.

3. To study the trends in snacks industry.

4. To analyse and interpret the results of sample collected.

5. To determine the future course of action by ITC.

6. To find conclusions to our project.

ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED

segments of the economy. Strengthening this link is of critical importance to improve

agriculture sector and ensures value addition to it.

ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED

 Fruit & Vegetable processing (including freezing and dehydration)

 Processing of Fish (including canning and freezing)

 Processing and refrigeration of certain agricultural products, dairy

products, poultry and eggs, meat and meat products

 Industries related to bread, oilseeds, meals (edible), breakfast foods, biscuits,

weaning food and extruded food products (including other ready-to-eat

 Beer, including non-alcoholic beer

 Alcoholic drinks from non-molasses base

 Aerated water and soft drinks

food is about 1.6%.

processing, packaged/convenience food and packaged drinks. A large number of

comparatively small, it is growing at a much faster pace.

ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED

Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack is