College Itc 111010231026-Phpapp02
Transcript of College Itc 111010231026-Phpapp02
-
7/28/2019 College Itc 111010231026-Phpapp02
1/64
Market Research Activity of Navy Cut Page 1
SUMMER INTERNSHIP REPORT
On
Market Research Activity of Navy Cut
Submitted in partial fulfillment of the requirements for the award
of degree of POST GRADUATE DIPLOMA IN MANAGEMENT
(2010-12)
Under the Supervision(s) of:-
Praveen Mustoor
Submitted By:-
ARUN SINGH
(PGDM)
2010-2012
Department of Management Studies & Research,
Tirpude College- Nagpur
-
7/28/2019 College Itc 111010231026-Phpapp02
2/64
Market Research Activity of Navy Cut Page 2
DECLARATION
I, Mr. Arun Singh hereby declare that the project entitled
Market Research Activity of Navy Cut was carried out for Dreams
Events is a genuine work of P.G.D.M. (Marketing) IInd semester
course.
To the best of my knowledge any part of this context has not been
submitted earlier for any Degree, Diploma or Certificate Examination.
Mr. Arun Singh
-
7/28/2019 College Itc 111010231026-Phpapp02
3/64
Market Research Activity of Navy Cut Page 3
ACKNOWLEDGEMENT
It gives me great pleasure in acknowledging the invaluable assistance
expended to us by various personalities in the successful completion
of this report. Our debts are due to many individuals who provided us
guidance, advice and useful comments that helped us in the successful
completion of this report. As usual the debts can be only warmly
acknowledged but never fully recompensed.
I owe my gratitude to Dreams Events, Nagpur for providing me the
opportunity to undergo two months summer training, especially Mr.
Nikhil Kesharwani, Branch Manager for allowing me to work on the
project
I would like to give sincere thanks to everyone in Mudra Events Pvt.
Ltd. Mumbai, for their help, guidance, cooperation; they did it in one
way or other for successful completion of the project. I am greatly
acknowledged by their kind help.
I am thankful to ITC limited for allowing me to conduct the market
research of Navy Cut.
Mr.Arun Singh
-
7/28/2019 College Itc 111010231026-Phpapp02
4/64
Market Research Activity of Navy Cut Page 4
INDEX
Table of Contents
EXECUTIVE SUMMARY ................................................................................... 6
COMPANY PROFILE ..................................................................................... 13
INTRODUCTION ........................................................................................... 18
THE ITC PROFILE ........................................................................................... 17
HISTORY....................................................................................................... 20
THE ITC WAY ................................................................................................ 22
ITC CORE VALUES ........................................................................................ 24
MISSION & VISION ...................................................................................... 28
OBJECTIVE ................................................................................................... 30
RESERCH METHODLOGY .............................................................................. 32
DATA COLLECTION METHODS : .................................................................... 36
DATA ANALYSIS AND INTERPRETATION ...................................................... 37
HYPOTHESIS ................................................................................................. 40
ANALYSIS: .................................................................................................... 42
SUGGESTIONS & CONCLUSION .................................................................... 55
LIMITATIONS OF THE STUDY ....................................................................... 57
BIBLIOGRAPHY ............................................................................................ 59
QUESTIONNAIRE .......................................................................................... 61
-
7/28/2019 College Itc 111010231026-Phpapp02
5/64
Market Research Activity of Navy Cut Page 5
EXECUTIVE SUMMARY
-
7/28/2019 College Itc 111010231026-Phpapp02
6/64
Market Research Activity of Navy Cut Page 6
EXECUTIVE SUMMARY
Tobacco in India:-
India is the third producer of tobacco in the world after china. It
produces 572 million kg of tobacco in 2002-2003. India only holds a major
0.7% share of the US $30 billion global importexport trade in tobacco, with
cigarettes/cigarette tobacco accounting for 85% of the country, s total tobacco
export.
The tobacco industry holds tremendous potential for India. For the
government, it means excise duties and export revenues, and for the country in
general, it translate into huge employment opportunity. Despite being the third
largest producer, India is only the ninth largest exporter of tobacco and tobacco
products in the world. Out of total tobacco produced in India , only 1/3 is
flue/cured tobacco suitable for cigarette manufacturing .Most of tobacco
produced in suitable for the manufacture of chewing tobacco , bides and other
chip tobacco products , which have no demand outside the country . There is
only an export demand for flue-cured tobacco, which is used for cigarette
manufacturing.
The production of tobacco is integral to the economies of a number of
Indian state and regions where it is grown. Tobacco is predominantly grown in
Andhra Pradesh, Gujarat, Karnataka and Uttar Pradesh. Andhra Pradesh and
Karnataka traditionally produce flue-cured leaf. Growing of tobacco is a very
lucrative owing to its short growing session and the profitability in relation to
other cash crops.
-
7/28/2019 College Itc 111010231026-Phpapp02
7/64
Market Research Activity of Navy Cut Page 7
As can be seen from the pie chart one (below), Indian consumption of
tobacco does not follow western trends with 38% of tobacco being consumed as
bidis , 48% as chewing tobacco and only 14%as cigarettes that is bidis , snuff
and chewing tobacco such as ghutka , khaini and zard form the bulk (86%) of
Indians total tobacco production . this low percentage of consumption in
cigarettes of 14%compares to 90% in the rest of the world . in fact the per capita
consumption of cigarette in India nearly 1/10th of the world average .
The unique tobacco consumption pattern is a combination of tradition andmore importunately the discriminatory tax impose on cigarette over the last two
decades. Cigarette smoker pay almost 85 %( Rs 5181crore) of the total tax
revenues generated from tobacco. This discriminatory tax is justified on the
ground that it is a luxury tax. This is a misnomer because it is the
discriminatory tax which is causing the difference in price between cigarette and
other tobacco products.
-
7/28/2019 College Itc 111010231026-Phpapp02
8/64
Market Research Activity of Navy Cut Page 8
TOBACCO CONSUMPTION AND REVENUE
SPLIT 2009-10
CONSUMPTION:-
-
7/28/2019 College Itc 111010231026-Phpapp02
9/64
Market Research Activity of Navy Cut Page 9
CONTRIBUTION:-
The bidi industry is relatively unorganized, rural and labor intensive in
nature. With very few large producer, they wrap the product in tends leaf and
much of the industry volume is hand rolled. The market is very regional incharacter with different brands sporting different shapes and sizes dominating
the market.
-
7/28/2019 College Itc 111010231026-Phpapp02
10/64
Market Research Activity of Navy Cut Page 10
COMPANY
PROFILE
-
7/28/2019 College Itc 111010231026-Phpapp02
11/64
Market Research Activity of Navy Cut Page 11
Company Details
COMPANY - ITC Limited
Type- Public (BSE:500875)
Industry- Conglomerate
Founded - 1790 (as Wills & Co.)
Founders - Henery Overton Wills
Headquarters- 37, J.L. Nehru Road , Kolkata, west Bengal
Key People - Y.C. Deveshwar, Chairman
Kurush Grant, Exec. Director,
P. Dhobale, Exec. Director,
Nakul Anand, Exec. Director,
Rajiv Tandon, CFO,
Website www. itcportal.com
-
7/28/2019 College Itc 111010231026-Phpapp02
12/64
Market Research Activity of Navy Cut Page 12
INTRODUCTION
-
7/28/2019 College Itc 111010231026-Phpapp02
13/64
Market Research Activity of Navy Cut Page 13
INTRODUCTION
ITC started its journey long back in 1910 under the name of ImperialTobacco Company of India Limited. During the first few decades of its
operation the focus of the company revolved around Cigarettes and LeafTobacco businesses. But during the seventies the company ventured intodifferent businesses including hotels and paperboards. During the nineties thecompany started Agri Business Division and the new millennium saw ITCventuring into Greetings Card, Lifestyle Retailing, Information Technology,Packaged Food, Matches, Agarbattis (incense sticks) and many more. In the lastfew years ITC expanded its portfolio to include snacks and personal care
products as well. So, over the years the company has become a truly diversifiedbusiness house with interests spanning across industries. We included ITC inthis document as being a FMCG leader but our basic objective is to study themarketing and advertising in Indian context so along with FMCG, we willanalyse the other business in which ITC has key presence. The ITC financialstatements divide its business into four main categories which are shown in
below diagram:
ITC
Ltd.
Agri
Business
FMCG
Paper
works
Hotels
-
7/28/2019 College Itc 111010231026-Phpapp02
14/64
Market Research Activity of Navy Cut Page 14
FMCG business of the company is divided into following seven sub-
segments:-
Cigarettes
Foods
Lifestyle Retailing
Personal Care
Education & Sanitory
Safety Matches
Agarbattis
-
7/28/2019 College Itc 111010231026-Phpapp02
15/64
Market Research Activity of Navy Cut Page 15
Following diagram shows the key brands of ITC across segments:-
ITC is the market leader in cigarettes in India. With its wide range ofinvaluable brands, it has a leadership position in every segment of the market.It's highly popular portfolio of brands includes Insignia, India Kings, LuckyStrike, Classic, Gold Flake, Navy Cut, Players, Scissors, Capstan, Berkeley,Bristol and Flake, Silk Cut and Duke.
The Company has been able to build on its leadership position because ofits single minded focus on value creation for the consumer through significantinvestments in product design, innovation, manufacturing technology, quality,marketing and distribution.
-
7/28/2019 College Itc 111010231026-Phpapp02
16/64
Market Research Activity of Navy Cut Page 16
All initiatives are therefore worked upon with the intent to fortify marketstanding in the long term. This in turns aids in designing products which arecontemporary and relevant to the changing attitudes and evolving socioeconomic profile of the country. This strategic focus on the consumer has paid
ITC handsome dividends.
ITC's pursuit of international competitiveness is reflected in its initiativesin the overseas markets. In the extremely competitive US market, ITC offershigh-quality, value-priced cigarettes and Roll-your-own solutions. In West Asia,ITC has become a key player in the GCC markets through growing volumes ofits brands.
ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru,Munger, Saharanpur, Kolkata and Pune. These factories are known for their
high levels of quality, contemporary technology and work environment.wards
ITC's Cigarettes business has been winning numerous awardsfor itsquality, environmental management systems and product excellence.
-
7/28/2019 College Itc 111010231026-Phpapp02
17/64
Market Research Activity of Navy Cut Page 17
THE
ITC
PROFILE
-
7/28/2019 College Itc 111010231026-Phpapp02
18/64
Market Research Activity of Navy Cut Page 18
The ITC Profile
ITC is one of India's foremost private sector companies with a marketcapitalization of over US $ 33 billion and a turnover of US $ 7 billion. ITC israted among the World's Best Big Companies, Asia's 'Fab 50' and the World'sMost Reputable Companies by Forbes magazine, among India's Most RespectedCompanies by Business World and among India's Most Valuable Companies byBusiness Today. ITC ranks among India's `10 Most Valuable (Company)Brands', in a study conducted by Brand Finance and published by the EconomicTimes. ITC also ranks among Asia's 50 best performing companies compiled by
Business Week.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards &Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery,Information Technology, Branded Apparel, Personal Care, Stationery, SafetyMatches and other FMCG products. While ITC is an outstanding market leaderin its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging andAgri-Exports, it is rapidly gaining market share even in its nascent businesses ofPackaged Foods & Confectionery, Branded Apparel, Personal Care andStationery.
As one of India's most valuable and respected corporations, ITC is widelyperceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls thissource of inspiration "a commitment beyond the market". In his own words:"ITC believes that its aspiration to create enduring value for the nation providesthe motive force to sustain growing shareholder value. ITC practices this
philosophy by not only driving each of its businesses towards internationalcompetitiveness but by also consciously contributing to enhancing thecompetitiveness of the larger value chain of which it is a part."
-
7/28/2019 College Itc 111010231026-Phpapp02
19/64
Market Research Activity of Navy Cut Page 19
ITC's diversified status originates from its corporate strategy aimed atcreating multiple drivers of growth anchored on its time-tested corecompetencies: unmatched distribution reach, superior brand-buildingcapabilities, effective supply chain management and acknowledged service
skills in hoteliering. Over time, the strategic forays into new businesses areexpected to garner a significant share of these emerging high-growth markets inIndia.
ITC's Agri-Business is one of India's largest exporters of agriculturalproducts. ITC is one of the country's biggest foreign exchange earners (US $ 3.2billion in the last decade). The Company's 'e-Choupal' initiative is enablingIndian agriculture significantly enhance its competitiveness by empoweringIndian farmers through the power of the Internet. This transformational strategy,which has already become the subject matter of a case study at HarvardBusiness School, is expected to progressively create for ITC a huge ruraldistribution infrastructure, significantly enhancing the Company's marketingreach.
ITC's wholly owned Information Technology subsidiary, ITC InfotechIndia Ltd, provides IT services and solutions to leading global customers. ITCInfotech has carved a niche for itself by addressing customer challenges throughinnovative IT solutions.
ITC's production facilities and hotels have won numerous national andinternational awards for quality, productivity, safety and environmentmanagement systems. ITC was the first company in India to voluntarily seek acorporate governance rating.
ITC employs over 24,000 people at more than 60 locations across India.The Company continuously endeavors to enhance its wealth generatingcapabilities in a globalizing environment to consistently reward more than 4,22,000 shareholders, fulfill the aspirations of its stakeholders and meet societal
expectations. This over-arching vision of the company is expressively capturedin its corporate positioning statement: "Enduring Value. For the Nation. For theShareholder."
-
7/28/2019 College Itc 111010231026-Phpapp02
20/64
Market Research Activity of Navy Cut Page 20
HISTORY
-
7/28/2019 College Itc 111010231026-Phpapp02
21/64
Market Research Activity of Navy Cut Page 21
HISTORY
The company was founded as Wills, Watkins & Co. by Henry Overton Wills I
and his partner Watkins, who opened a shop in Castle Street, Bristol in 1786.
After the retirement of his partner in 1789, it became Wills & Co..
In 1826 his two sons, William Day Wills and Henry Overton Wills took
over the company. The company pioneered canteens for the workers, free
medical care, sports facilities and paid holidays. In 1830, the company was
renamedW.D. & H.O. Wills. Their first brand wasBristol, 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 theImperial Tobacco
Company from a merger ofW.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.
http://en.wikipedia.org/wiki/W.D._%26_H.O._Willshttp://en.wikipedia.org/wiki/W.D._%26_H.O._Willshttp://en.wikipedia.org/wiki/W.D._%26_H.O._Willshttp://en.wikipedia.org/wiki/W.D._%26_H.O._Wills -
7/28/2019 College Itc 111010231026-Phpapp02
22/64
Market Research Activity of Navy Cut Page 22
THE ITC WAY
ITC is a board-managed professional company, committed to creatingenduring value for the shareholder and for the nation. It has a rich organisationalculture rooted in its core values of respect for people and belief inempowerment. Its philosophy of all-round value creation is backed by strongcorporate governance policies and systems.
ITCs corporate strategies are:
Create multiple drivers of growth by developing a portfolio of world classbusinesses that best matches organizational capability with opportunitiesin domestic and export markets.
Continue to focus on the chosen portfolio of FMCG, Hotels, Paper,Paperboards & Packaging, Agriculture Business and InformationTechnology.
Benchmark the health of each business comprehensively across thecriteria of Market Standing, Profitability and Internal Vitality.
Ensure that each of its businesses is world class and internationallycompetitive.
Enhance the competitive power of the portfolio through synergies derivedby blending the diverse skills and capabilities residing in ITC are variousbusinesses.
Create distributed leadership within the organization by nurturing talentedand focused top management teams for each of the businesses.
Continuously strengthen and refine Corporate Governance processes andsystems to catalyze the entrepreneurial energies of management bystriking the golden balance between executive freedom and the need foreffective control and accountability
-
7/28/2019 College Itc 111010231026-Phpapp02
23/64
Market Research Activity of Navy Cut Page 23
ITCS CORE VALUES
-
7/28/2019 College Itc 111010231026-Phpapp02
24/64
Market Research Activity of Navy Cut Page 24
ITCS CORE VALUES
Corporate Governance
Preamble
Over the years, ITC has evolved from a single product company to a multi-
business corporation. Its businesses are spread over a wide spectrum, ranging
from cigarettes and tobacco to hotels, packaging, paper and paperboards and
international commodities trading. Each of these businesses is vastly different
from the others in its type, the state of its evolution and the basic nature of its
activity, all of which influence the choice of the form of governance. The
challenge of governance for ITC therefore lies in fashioning a model that
addresses the uniqueness of each of its businesses and yet strengthens the unityof purpose of the Company as a whole.
Since the commencement of the liberalisation process, India's economic
scenario has begun to alter radically. Globalisation will not only significantly
heighten business risks, but will also compel Indian companies to adopt
international norms of transparency and good governance. Equally, in the
resultant competitive context, freedom of executive management and its ability
to respond to the dynamics of a fast changing business environment will be thenew success factors. ITC's governance policy recognises the challenge of this
new business reality in India.
-
7/28/2019 College Itc 111010231026-Phpapp02
25/64
Market Research Activity of Navy Cut Page 25
Definition and Purpose
ITC defines Corporate Governance as a systemic process by which companies
are directed and controlled to enhance their wealth generating capacity. Sincelarge corporations employ vast quantum of societal resources, we believe that
the governance process should ensure that these companies are managed in a
manner that meets stakeholders aspirations and societal expectations.
Core Principles
ITC's Corporate Governance initiative is based on two core principles. These
are :
Management must have the executive freedom to drive the enterprise forward
without undue restraints; and
This freedom of management should be exercised within a framework of
effective accountability.
ITC believes that any meaningful policy on Corporate Governance must provideempowerment to the executive management of the Company, and
simultaneously create a mechanism of checks and balances which ensures that
the decision making powers vested in the executive management is not only not
misused, but is used with care and responsibility to meet stakeholder aspirations
and societal expectations.
CornerstonesFrom the above definition and core principles of Corporate Governance emerge
the cornerstones of ITC's governance philosophy, namely trusteeship,
transparency, empowerment and accountability, control and ethical corporate
citizenship. ITC believes that the practice of each of these leads to the creation
of the right corporate culture in which the company is managed in a manner that
fulfils the purpose of Corporate Governance.
-
7/28/2019 College Itc 111010231026-Phpapp02
26/64
Market Research Activity of Navy Cut Page 26
Trusteeship:
ITC believes that large corporations like itself have both a social and economic
purpose. They represent a coalition of interests, namely those of theshareholders, other providers of capital, business associates and employees.
This belief therefore casts a responsibility of trusteeship on the Company's
Board of Directors. They are to act as trustees to protect and enhance
shareholder value, as well as to ensure that the Company fulfils its obligations
and responsibilities to its other stakeholders. Inherent in the concept of
trusteeship is the responsibility to ensure equity, namely, that the rights of all
shareholders, large or small, are protected.
Transparency:
ITC believes that transparency means explaining Company's policies and
actions to those to whom it has responsibilities. Therefore transparency must
lead to maximum appropriate disclosures without jeopardising the Company's
strategic interests. Internally, transparency means openness in Company's
relationship with its employees, as well as the conduct of its business in a
manner that will bear scrutiny. We believe transparency enhancesaccountability.
Empowerment and Accountability:
Empowerment is an essential concomitant of ITC's first core principle of
governance that management must have the freedom to drive the enterprise
forward. ITC believes that empowerment is a process of actualising the
potential of its employees. Empowerment unleashes creativity and innovationthroughout the organisation by truly vesting decision-making powers at the
most appropriate levels in the organisational hierarchy.
ITC believes that the Board of Directors are accountable to the shareholders,
and the management is accountable to the Board of Directors. We believe that
empowerment, combined with accountability, provides an impetus to
performance and improves effectiveness, thereby enhancing shareholder value.
-
7/28/2019 College Itc 111010231026-Phpapp02
27/64
Market Research Activity of Navy Cut Page 27
Control:
ITC believes that control is a necessary concomitant of its second core principle
of governance that the freedom of management should be exercised within aframework of appropriate checks and balances. Control should prevent misuse
of power, facilitate timely management response to change, and ensure that
business risks are pre-emptively and effectively managed.
Ethical Corporate Citizenship:
ITC believes that corporations like itself have a responsibility to set exemplary
standards of ethical behaviour, both internally within the organisation, as wellas in their external relationships. We believe that unethical behaviour corrupts
organisational culture and undermines stakeholder value.
-
7/28/2019 College Itc 111010231026-Phpapp02
28/64
Market Research Activity of Navy Cut Page 28
MISSION
&
VISION
-
7/28/2019 College Itc 111010231026-Phpapp02
29/64
Market Research Activity of Navy Cut Page 29
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 Companys
stakeholders.
MISSION
To enhance the wealth generating
capability of the enterprise in a globalizing environment,
delivering superior and sustainable
stakeholder value
-
7/28/2019 College Itc 111010231026-Phpapp02
30/64
Market Research Activity of Navy Cut Page 30
OBJECTIVE
-
7/28/2019 College Itc 111010231026-Phpapp02
31/64
Market Research Activity of Navy Cut Page 31
OBJECTIVE OF THE PROJECT
Primary objective
The main objective of the research activity was to find out the marketshare of the ITC Cigarettes.
To find the taste preference for Navy Cut. Find out the problem faced by the local vendors in sales.
Secondary objective
The Objective was to find out the sales of various brands of owncompany, as well as competitors.
Awareness of various brands of own company and competitors toconsumers.
How do the consumers rate Navy Cut as a product? Are the consumers willing to undergo future market research activity?
-
7/28/2019 College Itc 111010231026-Phpapp02
32/64
Market Research Activity of Navy Cut Page 32
RESEARCH
METHODOLOGY
-
7/28/2019 College Itc 111010231026-Phpapp02
33/64
Market Research Activity of Navy Cut Page 33
RESEARCH METHODOLOGY
Research methodology is considered as the nerve of the project. Without
a proper well-organized research plan, it is impossible to complete the project
and reach to any conclusion. The project was based on the survey plan. The
main objective of survey was to collect appropriate data, which work as a base
for drawing conclusion and getting result.
Therefore, research methodology is the way to systematically solve the research
problem. Research methodology not only talks of the methods but also logic
behind the methods used in the context of a research study and it explains why a
particular method has been used in the preference of the other methods
Research design:Research design is important primarily because of the increased complexity in
the market as well as marketing approaches available to the researchers. In fact,
it is the key to the evolution of successful marketing strategies and
programmers. It is an important tool to study buyers behavior, consumption
pattern, brand loyalty, and focus market changes. A research design specifies
the methods and procedures for conducting a particular study. According to Ker
linger, Research Design is a plan, conceptual structure, and strategy of
investigation conceived as to obtain answers to research questions and to
control variance.
-
7/28/2019 College Itc 111010231026-Phpapp02
34/64
Market Research Activity of Navy Cut Page 34
Types of research are:
Descriptive ResearchThe type of research adopted for study is descriptive. Descriptive studies are
undertaken in many circumstances when the researches is interested to know the
characteristic of certain group such as age, sex, education level, occupation or
income. A descriptive study may be necessary in cases when a researcher is
interested in knowing the proportion of people in a given population who have
in particular manner, making projections of a certain thing, or determining the
relationship between two or more variables. The objective of such study is to
answer the who, what, when, where and how of the subject underinvestigation. There is a general feeling that descriptive studies are factual and
very simple. This is not necessarily true. Descriptive study can be complex,
demanding a high degree of scientific skill on part of the researcher.
Descriptive studies are well structured. An exploratory study needs to be
flexible in its approach, but a descriptive study in contrast tends to be rigid and
its approach cannot be changed every now and then. It is therefore necessary,
the researcher give sufficient thought to framing research.
Questions and deciding the types of data to be collected and the
procedure to be used in this purpose. Descriptive studies can be divided into two
broad categories: Cross Sectional and Longitudinal Sectional. A cross sectional
study is concerned with a sample of elements from a given population. Thus, it
may deal with household, dealers, retail stores, or other entities. Data on a
-
7/28/2019 College Itc 111010231026-Phpapp02
35/64
Market Research Activity of Navy Cut Page 35
number of characteristics from sample elements are collected and analyzed.
Cross sectional studies are of two types: Field study and Survey. Although the
distinction between them is not clear- cut, there are some practical differences,
which need different techniques and skills. Field studies are ex-post-factor
scientific inquiries that aim at finding the relations and interrelations among
variables in a real setting. Such studies are done in live situations like
communities, schools, factories, and organizations.
Another type of cross sectional study is survey result, which has been taken by
me. A major strength of survey research is its wide scope. Detail information
can be obtained from a sample of large population .Besides; it is economical as
more information can be collected per unit of cost. In addition, it is obvious that
a sample survey needs less time than a census inquiry. Descriptive research
includes survey and fact finding enquiries of different kinds of the major
purpose. Descriptive research is description of the state of affairs, as it exists at
present. The main characteristic of this method is that the researcher has no
control over the variables; he can only report what has happened or what is
happening. The methods of research utilized in descriptive research are survey
methods of all kinds including comparative and co relational methods. The
reason for using such needs to be flexile in its approach, but a descriptive study
in contrast tends to be rigid and its approach cannot be changed ever now and
then.
-
7/28/2019 College Itc 111010231026-Phpapp02
36/64
Market Research Activity of Navy Cut Page 36
Data collection methods:After the research problem, we have to identify and select which type of data is
to research. At this stage; we have to organize a field survey to collect the data.One of the important tools for conducting market research is the availability of
necessary and useful data.
Primary data: For primary data collection, we have to plan the
following four important aspects.
SamplingResearch Instrument Secondary Data - The Companys profile, journals and various
literature studies are important sources of secondary data.
-
7/28/2019 College Itc 111010231026-Phpapp02
37/64
Market Research Activity of Navy Cut Page 37
DATA ANALYSIS
&
INTERPRETATION
-
7/28/2019 College Itc 111010231026-Phpapp02
38/64
Market Research Activity of Navy Cut Page 38
Data analysis and interpretation
1.Questionnaires
2.Pie chart and Bar chart
Questionnaires:
This is the most popular tool for the data collection. A questionnaire contains
question that the researcher wishes to ask his respondents which is always
guided by the objective of the survey.
Pie chart:
This is very useful diagram to represent data, which are divided into a number
of categories. This diagram consists of a circle of divided into a number of
sectors, which are proportional to the values they represent. The total value is
represented by the full create. The diagram bar chart can make comparison
among the various components or between a part and a whole of data.
Bar chart:
This is another way of representing data graphically. As the name implies, it
consist of a number of whispered bar, which originate from a common base line
and are equal widths. The lengths of the bards are proportional to the value they
represent.
-
7/28/2019 College Itc 111010231026-Phpapp02
39/64
Market Research Activity of Navy Cut Page 39
Preparation of report:
The report was based on the analysis and presented with the findings and
suggestions. The sample of the questionnaires is attached with the report itself.
Sampling Methodology:
Details of the sampling methodology, I have made questionnaire. The one is
made for the Customer.
No. of questions in questionnaires for customer: 05
No. of question related to ITC product: 02
No. of people met during the research: 200
No. of respondents during the research: 180
Sample unit
Professionals, Business man,
Employees, Students
METHODOLOGY USED FOR THIS RESERCH
In this research survey by questioners method was used for collection
of data and facts.
-
7/28/2019 College Itc 111010231026-Phpapp02
40/64
Market Research Activity of Navy Cut Page 40
HYPOTHESIS
-
7/28/2019 College Itc 111010231026-Phpapp02
41/64
Market Research Activity of Navy Cut Page 41
HYPOTHESIS
Hypothesis is usually considered as the principal instrument in
research. Its main function is to suggest new experiments and
observations. In fact many experiments are carried out with the
deliberate object of tasting hypothesis
Hypothesis on topic:-
ITC ltd is the leader in the cigarette market in Nagpur and the product
Wills Navy Cut of ITC is the largest selling as compared to other
brands.
-
7/28/2019 College Itc 111010231026-Phpapp02
42/64
Market Research Activity of Navy Cut Page 42
ANALYSIS
Q1. Are you a smoker or a non smoker?
1. Yes 2.No
Inferences
1. Out of total surveyed sample 60 % of consumers were smokers.2. Remaining 40 % people who were non-smokers had come to kiosks for
pan and gutkas etc.
3. Mainly young people were smokers.
60%
40%
Yes No
-
7/28/2019 College Itc 111010231026-Phpapp02
43/64
Market Research Activity of Navy Cut Page 43
Q.2 Are you 18 years or above?
1. Yes 2. No
Inferences
1. Almost 90% consumers were above 18 years of age.
NO
10%
YES90%
Are you 18 years and above?
-
7/28/2019 College Itc 111010231026-Phpapp02
44/64
Market Research Activity of Navy Cut Page 44
Q3. Since when have you been smoking?
1. 18-25 2. 26-33 3. 34-Above
Inferences:
1. A majority of customers (75%) started smoking between 18-25 yrs ofage.
2. 20%of the customers preferred smoking at the age group of 26-33 yrs.3. 5% of the customers started smoking at the age of 34 and above.
18-2575%
26-3320%
34-Above5%
Since when have you been smoking?
-
7/28/2019 College Itc 111010231026-Phpapp02
45/64
Market Research Activity of Navy Cut Page 45
Q.4. which brands do you prefer?
1. Gold Flake lights/regular 2.Will's King & Navy Cut3.Marlboro Lights & Menthol 4.Classic Ultra & Others
Inference
1. Gold flake lights and regular were the market leaders in preference.2. Wills king and navy cut were the next preferred with 25% share .3. Marlboro lights and menthol made a share of 20% in the market.4. Classic ultra and others had 15% shares in the market.
GoldFlake/Regular
40%
Wills King &
Navy Cut
25%
MarlboroLights &
Menthol
20%
Classic Ultra &
Others
15%
Cigarette Brands
-
7/28/2019 College Itc 111010231026-Phpapp02
46/64
Market Research Activity of Navy Cut Page 46
Q.5. How do you rate Navy Cut as a product?
a) Very good b)Goodc) Average d) Did not like it
Inferences
2. It is known that Navy Cut is sold as Wills and comes in one sizeonly rather than Gold flake which has variants as small, big ,
menthol and thus is preferred but because of its strong tobacco it
has a taboo with it.
Very Good
50%Good
30%
Average
10%
Did not like it
10%
How do you rate navy cut as a
product?
-
7/28/2019 College Itc 111010231026-Phpapp02
47/64
Market Research Activity of Navy Cut Page 47
GRAPHICAL REPRESENTATION OF MARKET SHARE
76%
23.50%
0.05%
ITC
GPI
OTHERS
-
7/28/2019 College Itc 111010231026-Phpapp02
48/64
Market Research Activity of Navy Cut Page 48
MARKET SHARE OF VARIOUS PLAYERS
One amongst various objectives of research was to find out the market
share of all prominent players in the cigarette market. Since the area
of study was Nagpur city. In the research it was found that only ITC
LTD. & GPI LTD. Are the most prominent players and any other
company was not significantly present in the market.
Market share is calculated in the following manner:-
Total no. of sticks sold of the company
X 100
Total no. of sticks sold in market
Total sticks sold in the market =20654.33
Total sticks sold by ITC LTD. = 15796.33
Total sticks sold by GPI LTD. = 4858
All the figures are in thousands.
Calculation of market share of ITC LTD.
-
7/28/2019 College Itc 111010231026-Phpapp02
49/64
Market Research Activity of Navy Cut Page 49
15796.33
X 100 = 76%
20654.33
Calculation of market share of GPI LTD.
4858
X 100 = 23.5%
20654.33
-
7/28/2019 College Itc 111010231026-Phpapp02
50/64
Market Research Activity of Navy Cut Page 50
TOTAL SALES OF CIGARETTES SEGMENT WISE
The following graph shows segment wise sales of cigarette:-
rw
KSFT :- King size FilterRSFT :- Regular size Filter
0
2000
4000
6000
8000
10000
12000
14000
KFTRSFT
LONGSBINGOS
1845
13775
19632136
-
7/28/2019 College Itc 111010231026-Phpapp02
51/64
Market Research Activity of Navy Cut Page 51
Percentage of sales through various channels
The following graph shows that which type of outlets have maximum
sales:
SALES FROM VARIOUS CHANNELS OF RETAIL SALES.
It was necessary to find out that through which channels of retail sales
or through which type of outlets maximum sales come. It was found
that total no. of outlets which sell cigarette was 5,538. This figure
includes all type of outlets such as pan shop, Tea stall, Grocery &
Kirana shop, STD PCO booth, Restaurants etc.
PAN SHOP ,
81%
TEA STALL, 12%KIRANA &
GROCERY, 5%
OTHERS, 2%
PAN SHOP
TEA STALL
KIRANA & GROCERY
OTHERS
-
7/28/2019 College Itc 111010231026-Phpapp02
52/64
Market Research Activity of Navy Cut Page 52
FINDING AND ANALYSIS OF ITC LTD CIGARETTE
As the primary objective of caring out research was to find out the
sales of Navy Cut brand of ITC, it was necessary to find that how the
sales took place through various channels. Apart from the distribution
channel I would like to call the panatelas, tea points, restaurant, PCO
booths, grocery or kirana shops as channels of retail sales. These
various avenues are also a channel for company to its product.
ITC has been leading the Indian cigarette market for 90 year
undoubtedly. The reason of this resounding success is that ITC trees
to catch the pales of the market through such activities at regular
intervals of time. Thats why caring out this activity was a great
instance of learning for me.
Apart from keeping note of sales of Navy Cut, it was important to
find that through which type of outlets or channels maximum sales are
done. It was important to know that at these channels where amenities
were available for the consumer. E.g. electricity, TV, refrigerator,
vending machine etc, and all these factors do object the sale of that
particular outlet.
ITC has a wide product line to offer with almost 16 brands and a few
in pipelines and can be launched anytime. It was important to study
that which branch enjoys how much share in total cumulative sales of
ITC. Ltd.
-
7/28/2019 College Itc 111010231026-Phpapp02
53/64
Market Research Activity of Navy Cut Page 53
The finding of the report were as follows:
Sales of various Brands of ITC ltd.
Name of Brand Sales Figures in thousands
Bristol standard 77
Bristol filter 400
Benson & Hedges Spl. Ft 4.08
Benson & Hedges Lights 19.86
Classic Regular 17.77
Classic Milds 30.36
Gold flake Kingsize 1019
Gold flake Light 36.99
Gold flake Premium 5740.88
Honey dew 28
India Kings 26.34
Wills Navy cut 583.65
Wills Silk cut 35.09
Wills Filter 4177.31
-
7/28/2019 College Itc 111010231026-Phpapp02
54/64
Market Research Activity of Navy Cut Page 54
77
4000
4.08 19.86 17.77 30.36
1019
36.99
5740.88
28 26.34
583.65
35.09
4177.31
0
1000
2000
3000
4000
5000
6000
7000
-
7/28/2019 College Itc 111010231026-Phpapp02
55/64
Market Research Activity of Navy Cut Page 55
SUGGESTIONS
&
CONCLUSION
-
7/28/2019 College Itc 111010231026-Phpapp02
56/64
Market Research Activity of Navy Cut Page 56
SUGGESTIONS & CONCLUSION
Research and distribution of various brand needs to be improvedbecause on random visits made. Wills Navy cut and Bristol were in
out of stock situation at some outlets.
Salesman visits in areas of Central Avenue, Itwari and Maskasathshould be made regular.
Since advertisement and promotion from any kind of media hasbeen banned number of facing of packets of all brands should be
increased at the retail outlets.
ANSWER TO HYPOTHESIS
The finding of the report shows that ITC is the market leader with
maximum percentage in sales and the reach and distribution of its
products is good. ITC has penetrated into maximum number of outlets
and thus ensures good sales. Thus the hypothesis is correct that ITC is
the market leader, but Wills Navy Cut does not have the market
leadership compared to Gold Flake of ITC itself.
-
7/28/2019 College Itc 111010231026-Phpapp02
57/64
Market Research Activity of Navy Cut Page 57
LIMITATION
-
7/28/2019 College Itc 111010231026-Phpapp02
58/64
Market Research Activity of Navy Cut Page 58
LIMITATIONS OF THE STUDY
Every study has certain limitations. In my study, also there were certain
limitations, which I could not able to solve.
1. The research was conducted for Nagpur region.2. Time factor was also important for me. I had only 50 days to complete
my research, for which a full-fledged report was insufficient for me.
3. The customer filled the questionnaire mostly in careless manner, so it wasdifficult to make them hold for time.
4. I found general customers who can give ideal time to answer myquestions; and was conducted in various sectors of Nagpur by the
promoters.
5. The sample size is also very small which represent my research onconsumer behavior.
6. The responses of outlet owners and respondents may be biased.7. Due to hiding of facts the figures can manipulative.8. Due to reluctance in supplying data, data collection may be objected.
My study is not recognizable in whole INDIA as well as outside Nagpur due
to the above limitations and less area coverage.
-
7/28/2019 College Itc 111010231026-Phpapp02
59/64
Market Research Activity of Navy Cut Page 59
BIBLIOGRAPHY
-
7/28/2019 College Itc 111010231026-Phpapp02
60/64
Market Research Activity of Navy Cut Page 60
BIBLIOGRAPHY
www.itcportal.com
www.wikipedia.com
http://www.wikipedia.com/http://www.wikipedia.com/http://www.wikipedia.com/ -
7/28/2019 College Itc 111010231026-Phpapp02
61/64
Market Research Activity of Navy Cut Page 61
QUESTIONNAIRE
-
7/28/2019 College Itc 111010231026-Phpapp02
62/64
Market Research Activity of Navy Cut Page 62
Consumer survey Questionnaire
Q.1. Are you a smoker or a non smoker?
a) Smokerb)Non Smoker
Q.2. Are you 18 years or above?
a) Yesb)No
Q3. Since when have you been smoking?
a) 18-25b) 26-33c) 33-Above
Q.4. which brands of cigarette do you prefer?
a) Gold Flake lights/regular
b) Will's King & Navy Cut
c) Marlboro Lights & Menthol
d) Classic Ultra & Others
-
7/28/2019 College Itc 111010231026-Phpapp02
63/64
Market Research Activity of Navy Cut Page 63
Q.5. How do you rate Navy Cut as a product?
d)Very good
e) Goodf) Averageg) Did not like it
-
7/28/2019 College Itc 111010231026-Phpapp02
64/64
THE END