A Study of Various Factors Leading To Purchase Decision of Bathing Soap With Respect To Fiama Di Wills of Itc LTD

A STUDY OF VARIOUS FACTORS LEADING TO
PURCHASE DECISION OF BATHING SOAP WITH RESPECT

TO FIAMA DI WILLS OF ITC LTD.
Submitted to
RAJAGIRI BUSINESS SCHOOL

In Partial Fulfilment of the Requirements for the Award of
POST GRADUATE DIPLOMA IN MANAGEMENT

(2015-17)
By
JUSTUS GEORGE
Register No: P15131
RAJAGIRI BUSINESS SCHOOL

RAJAGIRI VALLEY
KAKKANAD, KOCHI – 682039
DECLARATION
I, JUSTUS GEORGE, hereby declare that the internship report titled “ A study on the factors
influencing the purchase decision of consumers with respect to bathing soaps” is a bonafide
report of the project work done by me at ITC, Cochin, Kerala during the period from January
to February 2016.
This study was undertaken in the partial fulfilment of the requirement of the degree in Post
Graduate Diploma in Management at Rajagiri School of Management, Kakkanad, Cochin.
I also declare that this report has not been submitted to any other university/board for the award
of any degree/diploma.
Place: Kochi
Date:
ACKNOWLEDGEMENT
The gratification and elation of this project will be incomplete without mentioning all the people
who helped me to make it possible, whose guidance and encouragement were valuable to me.
I would like to express my gratitude to the Dr. BINOY JOSEPH. for granting me the opportunity
to do the project.
First of all I thank the GOD ALMIGHTY for his immense grace and blessings at each and every
stage of the organizational internship. I am thankful to my Faculty Guide, REV. FR. FRANCIS
SEBASTIAN CMI, faculty, Rajagiri Business School, Kochi, for giving me his valuable guidance
to execute the project as per university requirements.
My sincere thanks to my project guide, MR.ARUN KUMAR NAIR, Asst. Manager, for giving
me an opportunity to carry out my project study and for sparing his valuable time for the same. It
was a learning experience to work with him.
I would like to record my deepest sense of gratitude to my friends who encouraged me for making
this project a success.
Above all I would like to thank all respondents who helped me with the valuable information I
needed for the project.
Thanking You,
Justus George
CONTENTS
TOPIC PAGE
EXECUTIVE SUMMARY 1
SECTION ONE: ORGANIZATION STUDY
INDUSTRY ANALYSIS 2
SWOT ANALYSIS OF FMCG SECTOR 4
COMPANY PROFILE 5
COMPANY STRUCTURE 13
ORGANIZATION STRUCTURE 14
GROUP COMPANIES 17
JOINT VENTURE 19
SWOT ANALYSIS OF ITC 30
FINANCIAL ANALYSIS 26
SECTION TWO: PROBLEM STUDY
INTRODUCTION 32
PROBLEM STATEMENT, RESEARCH OBJECTIVE 33
RESEARCH DESIGN 33
RESEARCH METHODOLOGY 34
LIMITATION 35
RESULTS AND ANALYSIS 36
FINDINGS 53
CONCLUSION 55
SECTION THREE: ROUTINE WORK
DAILY ROUTINE 56
BIBLIOGRAPHY 68
ANNEXURE
SECTION I
ORGANIZATIONAL STUDY
EXECUTIVE SUMMARY
The FMCG sector in India has played a vital role in the growth and development of the country
Fast Moving Consumer Goods (FMCG) also known as consumer packaged goods, are those
goods which are sold quickly at relatively low costs. Some examples of FMCG includes the
wide variety of frequently purchased consumer products like soaps, tooth pastes, detergents,
shaving products, packaged food products etc. Availability of key raw materials, cheaper
labour costs and presence across the entire value chain gives India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015.
Nielsen predicts that India’s FMCG industry will grow from $37 billion in 2013 to $49 billion
in 2016.Indian FMCG industry expected to grow 7% in 2014, 10% in 2015 and about 12% in
2016, taking the sales in 2016 to $49 billion. Distribution growth, innovations around sachet
offerings, employment rates and index of industrial production (IIP) are key influencers of
FMCG sales in India.
ITC is an Indian conglomerate headquartered in Kolkata, West Bengal. Its diversified business
includes five segments: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards &
Packaging, Agri Business & Information Technology. ITC is an outstanding market leader in
its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports. As
part of the summer internship program various projects done in ITC’s FMCG - personnel care
division. The main project was conducted at the Big Bazaar outlets at Trivanthapuram, Kerala
where in direct sales was done after analysing the major accounts there at Trivanthapuram.
The project was done to analyse the competitors of ITC Ltd. in Trivanthapuram city like
Pothy’s, Reliance Fresh, More and Big Bazaar outlets and then to understand their marketing
strategies and also to understand the market. As a part of study on the opportunity analysis of
ITC products in Regional Accounts 4 outlets was mapped and visited to collect necessary
information regarding the market, competitors. The information regarding the market was
documented for further studies. As the part of project sell out activities was carried out in two
Big Bazaar stores and its effectiveness is to be measured by analysing the change in sales
percentage. To understand about the purchase decision of consumers on bathing soaps a
problem centric study was conducted that aimed in ANALYSIS OF VARIOUS FACTORS
LEADING TO PURCHASE DECISION OF BATHING SOAPS.
INDUSTRY ANALYSIS
FMCG (Fast Moving Consumer Goods) Industry, also called as CPG (Consumer packaged
goods) industry primarily deals with the production, distribution and marketing of consumer
packaged goods. The FMCG products are those consumables which are normally consumed
by the consumers at a regular interval. They also tend to be the high volume, low cost items.
This multi-million dollar sector is made up of an enormous range of well-known brand names
– the kind that consumers use every single day. Some of the prime activities of FMCG industry
are selling, marketing, financing, purchasing, etc. The industry also engaged in operations,
supply chain, production and general management. It has a strong MNC presence and is
characterised by a well-established distribution network, intense competition between the
organised and unorganised segments and low operational cost. Availability of key raw
materials, cheaper labour costs and presence across the entire value chain gives India a
competitive advantage. More and more companies are entering this emerging sector with better
products. Global consumer product groups eyeing inorganic growth opportunities in emerging
markets like India. Quite a number of people of India are dependent on the FMCG products for
their day to day operations. Its principal constituents are Household Care, Personal Care and
Food & Beverages. The best FMCG companies are characterised by their capability to produce
the items that are in highest demand by consumers and, at the same time, develop loyalty and
trust towards their brands.
FMCG Industry is one of the few industries which have showed a positive growth even in the
time of recession. The year 2016-17 is likely to be a very positive year for the FMCG industry
as a whole. Despite rising commodity prices, which will continue to put pressure on
performance, we can expect demand to continue to be robust especially from rural India which
is seeing rising income levels and greater propensity to spend. Some of the merits of this
industry are low operational cost, distribution networks, presence of renowned FMCG
companies, and population growth.
FMCG Industry Economy

FMCG industry provides a wide range of consumables and accordingly the amount of money
circulated against FMCG products is also very high. The competition among FMCG manufacturers
is also growing and as a result of this, investment in FMCG industry is also increasing, specifically
in India, overall FMCG market is expected to increase at a compound annual growth rate (CAGR)
of 14.7 per cent to touch US$ 110.4 billion during 2012-2020, with the rural FMCG market
anticipated to increase at a CAGR of 17.7 per cent to reach US$ 100 billion during 2012-2025.
Penetration level as well as per capita consumption in most product categories like jams, toothpaste,
skin care, hair wash etc. in India is low indicating the untapped market potential. Burgeoning Indian
population, particularly the middle class and the rural segments, presents an opportunity to makers
of branded products to convert consumers to branded products. Growth is also likely to come from
consumer 'upgrading' in the matured product categories. With 200 million people expected to shift
to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the
food-processing industry.
Common FMCG Products

Usually there are mainly four product categories of FMCG products as : home and personal care,
foods and beverages ,cigarettes and alcohol .Some common FMCG product categories include food
and dairy products, glassware, paper products, pharmaceuticals, consumer electronics, packaged
food products, plastic goods, printing and stationery, household products, photography, drinks etc.
and some of the examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts,
detergents, tobacco and cigarettes, watches, soaps etc.
Market potentiality of FMCG Industry

Some of the merits of FMCG industry, which made this industry as a potential one are low
operational cost, strong distribution networks, and presence of renowned FMCG companies.
Population growth is another factor which is responsible behind the success of this industry. The
Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess
of US$ 13.1 billion. It has a strong MNC presence and is characterised by a well-established
distribution network, intense competition between the organised and unorganised segments and
low operational cost. Availability of key raw materials, cheaper labour costs and presence across
the entire value chain gives India a competitive advantage. The FMCG market is set to treble from
US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015.In India is there are several untapped market
ND channels. Burgeoning Indian population, particularly the middle class and the rural segments,
presents an opportunity to makers of branded products to convert consumers to branded products.
Growth is also likely to come from consumer 'upgrading' in the matured product categories. With
200 million people expected to shift to processed and packaged food by 2010, India needs around
US$ 28 billion of investment in the food-processing industry.
THE TOP 10 COMPANIES IN FMCG SECTOR IN INDIA
1. Hindustan Unilever Ltd.

2. ITC Ltd
3. Nestle India
4. GCMMF (AMUL)
5. Procter & Gamble Hygiene and Health Care
6. Dabur India
7. Cadbury India
8. Britannia Industries
9. Asian Paints
10. Marico Industries
SWOT ANALYSIS OF FMCG INDUSTRY
Strength Weakness
 Presence of established distribution

 Lower scope of investing in
networks in both urban and rural
technology and achieving
areas Presence of well-known
economies of scale, especially in
brands in FMCG sector.
small sectors.
 High consumer goods spending.
 Low exports levels.
 Low Operational Costs.
 Diversified Products.
Opportunities Threats
 “Me-too” products, which illegally
 Flourishing rural market. mimic the labels of the established
brands.These products narrow the
 Rising income levels, i.e. increase in
scope of FMCG products in rural
purchasing power of consumers.
and semi-urban market.
 Large domestic market- a
 Removal of import restrictions
population of over one billion.
resulting in replacing of domestic
 Opportunities in innovation.
brands
 Export potential
 Slowdown in rural demand due to
 High consumer goods spending presence of general products.
 Tax and regulatory structure
COMPANY PROFILE
ITC LTD. previously called the Imperial Tobacco Company of India limited is one of India's
foremost private sector companies with a market capitalization US $ 45 billion and a turnover
of US $ 7 billion. ITC is India's leading Fast Moving Consumer Goods company, the clear
market leader in the Indian Paperboard and Packaging industry, a globally acknowledged
pioneer in farmer empowerment through its wide-reaching Agri Business and runs the greenest
luxury hotel chain in the world. ITC’s aspiration to create enduring value for the nation and its
stakeholders is manifest in its robust portfolio of traditional and greenfield businesses
encompassing Fast Moving Consumer Goods (FMCG), Hotels, Paperboards & Specialty
Papers, Packaging, Agri-Business, and Information Technology. This diversified presence in
the businesses of tomorrow is powered by a strategy to pursue multiple drivers of growth based
on its proven competencies, enterprise strengths and strong synergies between its businesses.
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India
Limited. As the Company's ownership progressively Indianized, the name of the Company was
changed from Imperial Tobacco Company of India Limited to India Tobacco Company
Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-
business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels,
Information Technology, Packaging, Paperboards & Specialty Papers, Agri- business, Foods,
Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's
name were removed effective September 18, 2001. The Company now stands rechristened 'ITC
Limited'.
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. ‘e- Choupal’
eliminates wasteful intermediation and multiple handling. Thereby it significantly reduces
transaction costs.
Today ITC Ltd. is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's
Most Reputable Companies by Forbes magazine and as 'India's Most Admired Company' in a
survey conducted by Fortune India magazine and Hay Group. ITC also features as one of
world's largest sustainable value creator in the consumer goods industry in a study by the
Boston Consulting Group.
ITC has been listed among India's Most Valuable Companies by Business Today magazine.
The Company is among India's '10 Most Valuable (Company) Brands', according to 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.
COMPANY HISTORY AND EVOLUTION
The Company’s beginnings were humble. . ITC was incorporated on August 24, 1910 under
the name Imperial Tobacco Company of India Limited. 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.
Though the first six decades of the Company's existence were primarily devoted to the growth
and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the
beginnings of a corporate transformation that would usher in momentous changes in the life of
the Company
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration
for ITC's Cigarettes business. It is today India's most sophisticated packaging house.
Year 1975: In 1975 the Company launched its Hotels business with the acquisition of a hotel
in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's
entry into the hotels business was rooted in the concept of creating value for the nation. ITC
chose the hotels business for its potential to earn high levels of foreign exchange, create tourism
infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels
business has grown to occupy a position of leadership, with over 100 owned and managed
properties spread across India.
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited, which today has become the market leader in India. Bhadrachalam Paperboards
amalgamated with the Company effective March 13, 2002 and became a Division of the
Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with
the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division.
ITC's paperboards' technology, productivity, quality and manufacturing processes are
comparable to the best in the world. It has also made an immense contribution to the
development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is
directly involved in education, environmental protection and community development.
In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co.
Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer
service with reduced lead time and a wider product range.
ITC set up Surya Tobacco Co. in Nepal in 1985 as an Indo-Nepal and British joint venture.
Since inception, its shares have been held by ITC, British American Tobacco and various
independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of
ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and
a major supplier of tissue paper to the cigarette industry. The merged entity was named the
Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was
merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty
Papers Division in November 2002.
Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division
for export of agri-commodities. The Division is today one of India's largest exporters. ITC's
unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in
Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural
mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail
front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra
and Uttar Pradesh.
In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the
launch of Expressions range of greeting cards. A line of premium range of notebooks under
brand “Paperkraft” was launched in 2002. To augment its offering and to reach a wider student
population, the popular range of notebooks was launched under brand “Classmate” in 2003.
“Classmate” over the years has grown to become India’s largest notebook brand and has also
increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the
launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the
“Classmate” brand. In 2008, ITC repositioned the business as the Education and Stationery
Products Business and launched India's first environment friendly premium business paper
under the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the premium executive
stationery and office consumables segment.
Paperkraft entered new categories in the office consumable segment with the launch of
Textliners, Permanent Ink Markers and White Board Markers in 2009.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores
later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening
wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand,
John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most
premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from
buyers and retailers as the single largest B-2-B platform for the Fashion
Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the
event forward to consumers.
In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC
Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today
ITC Infotech is one of India’s fastest growing global IT and IT-enabled services companies
and has established itself as a key player in offshore outsourcing, providing outsourced IT
solutions and services to leading global customers across key focus verticals - Manufacturing,
BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods &
Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment.
ITC's foray into the Foods business is an outstanding example of successfully blending multiple
internal competencies to create a new driver of business growth. It began in August 2001 with
the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered
the confectionery and staples segments with the launch of the brands mint-o and Candyman
confectionery and Aashirvaad atta (wheat flour).
The year 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits
segment. ITC's entered the fast growing branded snacks category with Bingo in 2007. In eight
years, the Foods business has grown to a significant size with over 200 differentiated products
under six distinctive brands, with an enviable distribution reach, a rapidly growing market share
and a solid market standing.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in the Safety Matches initiative. ITC now markets popular
safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.
2003: ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include
Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood,
Madhur, Sambrani and Nagchampa.
ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care
products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills
provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and
Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos,
Shower Gels and Soaps in September, October and December 2007 respectively. The Company
also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select
markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel
range of shampoos in June 2008.In 2010 ITC entered the fairness cream segment by launching
product ‘Vivel active fair’. In the year 2013 ENGAGE, India’s first range of couple deodorants
ITC Introduced kwiknic, new range of nicotine chewing gums in 2014.
ITC on February 2015 purchased from Johnson & Johnson (health and pharmaceuticals major)
two of its brands - Savlon, a brand of antiseptic soaps and liquids, and Shower to Shower, a
prickly heat powder.
ITC has entered the Fruit-based juices and beverages market with the launch of B Natural juices
in January 2015. B Natural makes great tasting juices & beverages with the goodness of fruits.
The brand believes that being healthy is a natural state, best served with great taste, fun and
enjoyment.
VISION, MISSION, CORE VALUES AND GOVERNANCE POLICIES
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 globalising environment,
delivering superior and sustainable stakeholder value.
ITC'S CORE VALUES
ITC's Core Values are aimed at developing a customer-focused, high-performance organisation
which creates values for all its stakeholders.
Trusteeship
As professional managers, we are conscious that ITC has been given to us in 'trust' by all our
stakeholders. ITC will actualise stakeholder value and interest on a long term sustainable basis.
Customer Focus
ITC are always customer focused and will deliver what the customer needs in terms of value,
quality and satisfaction.
Respect for People

ITC is result oriented, setting high performance standards for the organization as individuals
and teams. ITC will simultaneously respect and value people and uphold humanness and
human dignity.
ITC acknowledges that every individual brings different perspectives and capabilities to the
team and that a strong team is founded on a variety of perspectives.
ITC wants individuals to dream, value differences, create and experiment in pursuit of
opportunities and achieve leadership through teamwork.
Excellence
ITC does what is right, do it well and win and strive for excellence in whatever they do.
Innovation
ITC constantly pursues newer and better processes, products, services and management
practices.
Nation Orientation
ITC is aware of its responsibility to generate economic value for the Nation. In pursuit of its
goals, ITC will make no compromise in complying with applicable laws and regulations at all
levels.
CORPORATE STRATEGY
ITC is a board-managed professional company, committed to creating enduring value for the
shareholder and for the nation. It has a rich organisational culture rooted in its core values of
respect for people and belief in empowerment. Its philosophy of all-round value creation is
backed by strong corporate governance policies and systems. Corporate strategies include
ITC’s corporate strategies are:
 Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organisational capability with opportunities in domestic and export markets.
 Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
 Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
 Ensure that each of its businesses is world class and internationally competitive.
 Enhance the competitive power of the portfolio through synergies derived by blending the
diverse skills and capabilities residing in ITC’s various businesses.
 Create distributed leadership within the organisation by nurturing talented and focused top
management teams for each of the businesses.
 Continuously strengthen and refine Corporate Governance processes and systems to

catalyse the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.
CORPORATE GOVERNANCE
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 unity of purpose of the Company
as a whole.
ITC defines corporate governance as a systemic process by which companies are directed and
controlled to enhance their wealth generating capacity. Since large 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 stakeholder’s 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 provide
empowerment 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.
From 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.
COMPANY STRUCTURE
MANAGEMENT
Flowing from the concept and principles of Corporate Governance adopted by the Company,
leadership within ITC is exercised at three levels. The Board of Directors at the apex, as trustee of
shareholders, carries the responsibility for strategic supervision of the Company. The strategic
management of the Company rests with the Corporate Management Committee comprising the
whole time Directors and members drawn from senior management. The executive management
of each business division is vested with the Divisional Management Committee (DMC), headed
by the Chief Executive. Each DMC is responsible for and totally focused on the management of
its assigned business. This three-tiered interlinked leadership process creates a wholesome
balance between the need for focus and executive freedom, and the need for supervision and
control.
Fig 1. ITC Board of Directors

CORPORATE MANAGEMENT COMMITTEE
Y C Deveshwar Nakul Anand P V Dhobale

Chairman Executive Director Executive Director
Chitranjan Dar
K N Grant Anand Nayak
Quality Assurance, LSTC,
Executive Director Human Resources
CPO & EHS
Sanjiv Puri S Sivakumar K S Suresh
FMCG Businessses Agri & IT Businesses Legal
Rajiv Tandon B B Chatterjee

Finance Secretarial
Table 1. ITC Corporate Management Committee
ORGANIZATION STRUCTURE
ITC Limited is headquartered in Kolkata, West Bengal, which is the head office of the
company. Under the head office the company is divided into zonal district offices as: Northern
district office, Southern district office, Eastern district office and Western district office. Under
each district office there will be branch offices targeted to serve for each state.
The structure of each branch is as follows:
Fig 2. ITC Ltd. Branch Structure I
DEPARTMENTS & FUNCTIONS
1) Finance Department- Finance Department is headed by an Assistant Finance Manager

who is in charge of the whole branch. He is assisted by two finance executives and five
office associates. Assistant Finance Manager has to report to both the Branch Manager
as well as to Finance Manager of the District. The Finance Department gets the advance
cash through cheques from the distributors. These are credited against the distributors
on the next day through Real Time Gross Settlement (RTGS).This process is called the
Banking operation.
This is taken care by one office associate. After the cheque is cleared, Sales Order is
created for the Distributor. This is done on the basis of the orders placed with the
Marketing department. This is taken care by two office associates. After this the Sales
order is converted into Delivery order. This is done as per TPVS (Transport Planning
and Vehicle Optimisation).The logistics department is clubbed with Finance
Department so as to bring optimal utilisation. Delivery order approval is done by two
office associates. After the creation of delivery order, the goods are made ready for
shipment and finally shipped out. The Finance executives together with the logistics
executives take care of this. Similarly the finance executives also have a supervisory
role over the office associates.
2) Marketing Department-The Marketing Department in ITC is working under four

heads namely: Foods, Personal care Products, Key accounts and Cigarettes. Each of
these departments are headed by an Assistant manager. Under these managers there are
Area Managers who are in charge of a particular region. Area Managers are assisted by
Area Executives who in turn look after the sales trainees. The basic function of
Marketing Department is to ensure superior sales for the products of the company. The
Department on a day-to-day basis collect the orders for the products from different
distributors, ensures the speedy delivery, ensures the superior visibility and availability
of the products at stores, undertakes various promotional activities etc. The number of
Area Managers and Area Executives are variable according to the size and sales of the
market.
Fig 3. ITC Branch Structure II

3) Logistics Department-The Logistics Department of ITC consist of Branch Logistics
Executive and Godown Logistics Executives. Generally in a branch, there is only one
Executive whereas in Godowns there will be two executives. They have to report to the
Regional Logistics Manager in the district office as well as to the Branch Manager. The
Regional Logistics Manager has to report to the District Manager as well as to the
Divisional Logistics Manager. The basic function of the logistics department is to
arrange for the trucks, transport vehicle optimisation, working with the finance
department for the conversion of delivery order into shipment of goods and the shipping
out of the goods.
4) HR Department-The Human Resource Department of ITC generally has an HR office
associate at the branch level who takes care of the selection/appointment of the sales
executives, the appraisal and grievance redressal of different employees. The HR
executive of each branch has to report to the Assistant Manager as well as to the HR
executive at the District level who has to report to the HR Manager at the District level.
GROUP COMPANIES
Surya Nepal Private Limited (SNPL): is an Indo-Nepal-UK joint venture, which started
operations in Nepal in 1986. SNPL, a subsidiary of ITC Ltd, India, is the largest private sector
enterprise in Nepal. The balance shares are held by dispersed Nepalese shareholders and British
American Tobacco, UK.
ITC Info-Tech: ITC InfoTech is a fully owned subsidiary of ITC Ltd. Formed in 2000; ITC
InfoTech has today carved a niche for itself in the arena of global IT services and solutions.
The company has established technology Centres of Excellence (CoE) to deepen capabilities
and incubate cutting-edge technical competencies. A robust outsourcing model, comprehensive
suite of differentiated solutions & services and focus on excellence in execution has provided
the company a leadership position in chosen domains. With over 5600 employees, ITC
InfoTech conforms to the highest standards in process quality, with ISO 27001, ISO 9001 and
CMMi Level 3 accreditations.
LANDBASE: Landbase India Limited, a subsidiary of ITC, owns the prestigious Classic Golf
Resort in the outskirts of Delhi. Classic Golf Resort is the first South Asian signature
championship course designed by Jack Nicklaus. Spread over 300 acres at the foothills of the
picturesque Aravalli, it comprises an 18- hole signature championship course, a nine-hole
signature canyon course, a social club and a sports complex which offers non-golfing sports
and recreational activities.
King Maker Marketing INC: Established in 1994, King Maker Marketing Inc. (KMM) is a
leading supplier of premium quality, value-priced cigarettes and roll-your-own (RYO) tobacco.
The company's product lines, which include the Checkers, Hi-Val and Gold Crest, are made of
100% American Blend tobaccos to ensure a smooth taste and consistent quality. KMM also
provides market research services relating to the US Tobacco and FMCG markets.
TECHNICO PTY LTD: Technico Pty Limited, Australia ('Technico') is an agri-
biotechnology company specializing in rapid seed potato production. Technico has developed
the proprietary TECHNITUBER® technology, which involves the use of pathogen-tested
tissue culture and processes that enable the rapid multiplication of seed potatoes from
pathogen-tested plants in controlled environment.
Russell credit Limited: Russell Credit Limited is a 100% subsidiary of ITC Limited. Russell
is an Investment Company with activities primarily confined to making long-term investments
in areas of strategic thrust, namely FMCG, Hotels & Tourism, Paper, Paperboards & Packaging
Agri Business and Information Technology. Russell has one wholly owned subsidiary,
Greenacre Holdings Limited, which is engaged in property infrastructure maintenance.
WIMCO Limited: The acquisition of Wimco through Russell Credit Limited, a 100%
subsidiary of ITC Limited on July 1, 2005, aimed to further consolidate the market standing of
ITC's Matches business through synergy benefits of combined portfolio of offerings, improved
servicing of proximal markets and freight optimization. Subsequently Wimco became a direct
subsidiary of ITC effective 29th September, 2011 when ITC acquired the entire shareholding
of Wimco from Russell Credit.
Srinivasa Resorts Limited: Srinivasa Resorts Limited is a subsidiary of ITC Limited. ITC has
68% stake in the Company. The Company owns the "ITC Kakatiya" at Hyderabad, which is
operated by ITC Limited. The Company continues to focus on hygiene, safety and
environment. The Company's Hotel, ITC Kakatiya has received various awards /recognitions,
significant amongst them are the prestigious Leadership in Energy and Environment Design
(LEED) Platinum certification from the United States Green Building Council (USGBC),
'Environment Champion Among Large Hotels' by Federation of Hotel & Restaurant
Associations of India, 'Greentech Silver Safety Award' in service sector for outstanding
achievement in safety management by Greentech Foundation, 'Certificate of Appreciation' by
Energy Conservation Mission and The Institution of Engineers (India) and 'HACCP
Certification' for Food Safety System by Det Norske Veritas. The Company's Hotel also has
implemented 'Six Sigma' quality initiatives to further enhance service edge.
Fortune Park Hotels Limited: Fortune Park Hotels Ltd. is a subsidiary of ITC Ltd. Set up in
1995 to cater to the mid-priced market segment in business and leisure destinations; it is today
a professional Hotel Management company, with forty operating hotels and many more in
various stages of completion.
Bay Islands hotels Limited: Bay Islands Hotels Limited is a 100% subsidiary of ITC Limited.
The Company owns the hotel "Fortune Resort Bay Island" at Port Blair which is licensed to
ITC Limited and is operated by Fortune Park Hotels Limited under an Operating & Marketing
Services Agreement.
Gold Flake Corporation Limited: Gold Flake Corporation Limited is wholly owned
subsidiary of ITC Limited. The Company's nature of business is specific to general trading.
ITC Filtrona Limited is a 50% joint venture of Gold Flake Corporation Limited with Cigarette
Components Limited, U.K.
JOINT VENTURE
Maharaja Heritage Resorts Limited: Maharaja Heritage Resorts Limited, where ITC
Limited has an ownership interest of 50% is a joint venture with Jodhana Heritage Resorts
Private Limited. The joint venture company currently operates across India under the
"WelcomHeritage" brand.
ITC Filtrona: ITC Filtrona Ltd is an equal partnership joint venture between ITC Limited and
Filtrona Plc, U.K., the world leader in filter design and development. The company is located
in Bangalore. ITC Filtrona commenced manufacturing of Acetate filter rods in 1994 and
pioneered the full changeover of the Indian market to acetate filters from viscose filters by
2000. The company has state-of-the-art technology and has the capacity of producing over 13
billion rods per annum. It enjoys over 60% market share and has played a critical role in import
substitution. ITC Filtrona brings in world-class technology to the Indian market in the form of
Acetate filter rods and Specialty filters.
ASSOCIATE COMPANIES
Gujarat Hotels Limited: ITC Limited holds 45.78% in Gujarat Hotels Limited. The Company
owns the "WelcomHotel Vadodara" at Vadodara which is operated by ITC Limited under an
Operating Licence Agreement. WelcomHotel Vadodara offers plush accommodation and top-
of-the-line Business, Conference and Leisure facilities tailored to the requirement of the
discerning and modern day business traveller.
International Travel House: International Travel House is one of the largest total travel
management companies in India with a presence in 13 cities. It offers a range of services which
include corporate travel, car rental, destination management services, world class holidays,
incentive group travel, conference management and foreign exchange.
COMPANY STAKEHOLDERS
ITC has adopted a multi-pronged, multi stakeholder strategy for an inclusive approach to
building partnerships in sustainable business practices. It has also put in place institutional
mechanisms to facilitate strong partnerships with communities in its programmes such as
Watershed Development, Social Forestry, Animal Husbandry Services and Women‘s
Empowerment. These initiatives augment the natural resource base and create sustainable rural
livelihoods.
Shareholders
ITC believes that protection and enhancement of shareholder wealth is one of the Company‘s
key responsibilities. The primary expectations of shareholders remain centred around
continued profitability and growth, effective communications and investor servicing. The
Chairman addresses and provides clarifications to shareholders at least once a year at the
Annual General Meeting in the presence of the Board. The Board encourages open dialogue
with all shareholders, including individuals, corporates and investors.
Customers
Enduring and long-term customer relationships form the bedrock of ITC‘s businesses.
Significant efforts are made to gain insights into customers’ needs and aspirations and to seek
consumer delight through ITC‘s high-quality and cost competitive products and services. Most
of ITC‘s Businesses have various mechanisms to capture the needs and expectations of the
customer, such as market surveys, personal contacts/visits, events, customer satisfaction
surveys, joint development and improvement projects, key account management, multi-level
interfaces at dealer-customer-end user, personalised lifestyle privilege programme, etc. Robust
Quality Assurance systems, supported by process innovations, adoption of green technology,
lean management, six sigma and TPM, help to achieve benchmarks in the quality of products
and services that can sustain and enhance customer delight. ITC also continues to invest
significantly in R&D to develop newer products/variants.
Employees
ITC recognises that the creation of a high quality human resource team to drive the businesses
of tomorrow requires focus on providing personal development and growth, a work culture that
ensures high levels of performance, provides world-class learning experiences and a caring &
empowering work environment. Our unique employee value proposition is backed by strong
corporate equity enabled sustained engagement in challenging times. Each business focuses on
engaging employees through communication meetings, mentoring, suggestion schemes,
engagement surveys and talent recognition programmes. ITC‘s remuneration philosophy
recognises performance and meritocracy, whilst remaining competitive and sustainable. The
Company fosters a culture that rewards performance, continuous learning, collaboration and
capacity development across the organisation to be future- ready and meet head-on the
challenges posed by ever changing market realities. To address employee concerns, ITC units
have a structured grievance redressal mechanism to enable all grievances to be resolved in a
just and amicable manner. A grievance redressal committee, comprising representatives of both
unionised employees and managers, has been instituted to address their concerns. ITC‘s
unswerving belief in the mutuality of interests of key stakeholders, binds all employees to a
shared vision and purpose. ITC‘s units engage with employee representatives and unions,
thereby strengthening the collaborative spirit across all sections of employees.
Farmers
Farmers are an important value chain partner for ITC and we continue to engage with them
through a large gamut of interventions. A primary cause of rural poverty is the vicious cycle of
low productivity, low income and low capacity to invest that continues to plague Indian
farmers. Addressing the root cause of these challenges, ITC co-created the e-Choupal initiative
with farmers to provide information and knowhow on agricultural best practices, transmission
of market signals, transparent discovery of prices, timely and relevant weather information,
access to quality inputs, and most importantly, efficient market access.
ITC e-CHOUPAL
The ITC e- Choupals, managed by trained farmers (sanchalaks), helped the agricultural
community access ready information in their local language. In addition, ITC worked closely
with farmers to enhance agri productivity through demonstration farms and customised
extension services, apart from creating physical infrastructure in the form of integrated rural
services hubs. The ITC e-Choupal initiative has empowered over 4 million farmers in 40,000
villages, raising rural productivity and incomes. Similarly, ITC works closely with farmers in
its Social and Farm Forestry programme to provide a wide spectrum of extension services that
impart knowledge and knowhow to farmers through dedicated farmer training programmes. In
addition, farmers have been benefitted by the extensive R&D programme for clonal
propagation which gives them high yielding quality saplings which are disease resistant, can
grow in shorter time spans and in difficult terrains such as wastelands. This initiative has
created over 64 million person days of employment for farmers in the state of Andhra Pradesh.
Suppliers
The Company‘s supplier (both national and international) engagements are supported by
policies, processes and best practices that ensure that procurement activity is conducted in an
open, transparent and non-discriminatory manner. Strong processes are in place to
identify/develop and qualify vendors on the basis of supply assurance, innovation quotient,
product quality and value for money considerations. Formal competitive processes are
established and documented discussions, recommendations and decisions underlay all
procurement activity. Sole sourcing (to the extent possible) and retroactive contracting are
avoided. Contracts are tested for regulatory compliance and supplier deliverables cognise for
environmental, health and safety legislation. All businesses of the Company have modern
facilities and use state of the art technologies to ensure benchmarked quality and value.
Accordingly, the Company sources specialised production machinery from reputed
international as well as Indian manufacturers – across large, medium and small scale sectors.
Utility machinery such as boilers, generator sets, air-conditioning and refrigeration machinery
and electrical & electronic systems are sourced largely from Indian or India based suppliers.
Competent Indian contractors carry out construction and renovation of new manufacturing
facilities, hotels, warehouses & offices. Nearly 90% of raw materials and 70% of spare parts
and components have been locally procured during the year. The Company actively encourages
competency development among local vendors and its vendor base includes numerous medium
and small scale enterprises that are close to its manufacturing locations. Where appropriate,
vendors are provided technical support and managerial inputs to enable them to move in
tandem with the Company‘s business plans.
The Company also supports several vocational training initiatives in areas close to its
operations. These have been effective in empowering youth with requisite skills and increased
opportunities for entrepreneurial development. In addition, the Company has continued to set
up sourcing centres in rural India for several of its product categories, both directly and in
collaboration with various State agencies and NGOs to assist in the creation of sustainable
livelihoods.
Community
ITC‘s agri-businesses have forged a long and enduring partnership with rural communities.
Their initiatives contribute to empowering these communities to conserve and manage their
natural resources, create sustainable on and off-farm livelihoods and improve social
infrastructure, especially in areas where it impacts women and children. ITC has put in place
village-level institutional mechanisms which help transform rural communities into vibrant
economic organisations and empower stakeholders with enhanced incomes and livelihoods.
Government
ITC interacts through industry bodies and various other forums with Government / Regulatory
Authorities on aspects relating to public policy frameworks. ITC, in partnership with CII, has
supported the creation of a unique institution — The CII-ITC Centre of Excellence for
Sustainable Development — to promote thought leadership, recognise sustainability
champions and build awareness as well as capacity on issues related to sustainable development
and inclusive growth.
ITC LIMITED
CORPORATE OFFICE
VIRGINIA HOUSE 37, J.L.NEHRU ROAD, KOLKATA-700071 INDIA
EMPLOYEE MANAGEMENT
In ITC the different value chains related to our Businesses provide direct and indirect
employment to around 6 million people, whose livelihoods are substantially linked to their
association with the Company. Company’s human resource management systems and
processes aim at creating a responsive, customer-centric and market focused culture that
enhances organisational capability and agility. The company employees over 30,000
employees till date. The fig. below shows the break-up of employees at ITC Ltd.
Fig 4. Gender wise employee break up

COMPANY'S SHARE CAPITAL
545,78,25,430 Ordinary Shares of the Company, representing 68.09% of the Company's paid
up capital, as on 19th June, 2015 are in dematerialised form. The paid-up share capital of the
Company, as on 19th June, 2015, is Rupees 801,55,19,541 (Rs.801.55 crores) divided into
801,55,19,541 Ordinary Shares of the face value of Rupee 1/- each.
Total No. of Shareholders as on 19th 5,39,880

June, 2015 :
No. of shareholders in dematerialised form : 4,96,563
No. of shareholders in physical form : 43,317
GDRs
The Company, in 1993, made an offer of 45,00,000 Global Depository Receipts (GDRs) with
15,00,000 warrants (in the ratio of 1 warrant for every three GDRs held) to subscribe for the
GDRs. 1,99,63,135 GDRs, representing 1,99,63,135 underlying Ordinary shares of the
Company, were outstanding as on March 31, 2015. The Company's GDRs are listed on the
Luxembourg Stock Exchange (Code: 004660919), at Societe de la Bourse de Luxembourg,
35A Boulevard Joseph II, L-1840, Luxembourg.
FINANCIAL STATEMENT FOR THE YEAR 2014-15
SWOT ANALYSIS OF ITC
ITC is a well-established and reputed Indian Private Sector company which has been in
business for more than 100 years. The presence for such a long time has given it a strong
expertise in selling and distribution channel. The company has also been using the huge cash
chunk it has from its undisputed leadership in Cigarettes business to foray into other FMCG
sectors.
STRENGTHS
1. ITC leveraged its traditional businesses to develop new brands in for new segments. ITC
used its expertise in transporting and distributing tobacco products to remote & distant parts of
India to the advantage of its FMCG products. ITC’s master chefs from its hotel chain are always
asked to develop new food concepts for its FMCG products. The greatest strength of the
company is its wide range of diversified products and services.
2. Well established distribution network over 6 million retail outlets: The presence of around 6
million retail outlets over the country through which the ITC products are available. Over 2
million retail outlets of these are directly serviced by the ITC‘s distribution organisation. It uses
own experienced transportation and distribution network of tobacco products for reaching the
FMCG products to remote and distant parts of India. Hawkers from distribution points visit the
outlets that are not operated by the company’s competitors. The operation of hawkers at these
outlets brings up the opportunity to expand the product portfolio in the company. ITC is the
company which has one of the best distribution networks across the world.
3. World Class Research & Development: It has a well-established world class research and
development team at Bangalore with over 50 scientists. ITC recognises that cutting edge R&D
can foster breakthrough innovation and create powerful sources of sustainable competitive
advantage.
4. Corporate Social Responsibility: ITC‘s initiatives to build social capital through extensive
community engagement have led to the creation of sustainable livelihood opportunities for over
5 million people. ITC has helped create more than 20,000 rural women entrepreneurs. ITC‘s
supplementary education initiative has reached out to over 200000 school children in rural
areas.
5. Awareness of the ITC brand name: ITC is one of the best known brands in India. Markets
the product with the use of the brand name ITC. Whenever a new product is introduced in the
market, the brand name ITC is widely used.
WEAKNESSES
1. ITC’s original business is traded in tobacco. ITC stands for India Tobacco Company Limited.
It still uses its old name even though it has forayed into a variety of new businesses. The
negative connection of tobacco with poor health and premature death is always a weak point
for the company.
2. Limited export of products and services: ITC is a local company. It does not have a large
portfolio of exports in either products or services. This makes the company comparatively weak
in terms of being able to leverage global opportunities, talent & financing.
OPPORTUNITIES
1. Untapped rural market: Indian rural market is the most potential market for branded FMCG
products the population and the area of rural market is higher than the cities. ITC‘s wide
distribution network reaching every local rural market will help to untap the rural demand. In
the rural market penetration level of Shampoo is 56%.
2. ITC’s e-Choupal is a community of practise that links rural Indian Farmers using the Internet.
This project reaches more than 10 million farmers in more than 1, 00,000 villages. ITC benefit
from low cost of procurement of raw materials as well as use e-choupal as a marketing root for
its products. Per capita consumption of personal care products in India is the lowest in the
World, giving an opportunity for ITC’s soaps, shampoos and fragrances under their Wills
brand.
THREATS
1. The main threat as is obvious is from competition both domestic as well as International.
The emerging consumer society will bring in new products and services from competitors.
ITC’s opportunities are likely to be the opportunities of others as well. Therefore dynamics of
competition might alter in the medium-term. Then ITC will need to decide upon whether
diversified the most competitive strategic formation for a secure future is.
2. The heavy taxes and some laws against use on cigarettes and pictorial graphic warnings in
Cigarettes packets might also move away a small percentage of people from such products.
SECTION II
PROBLEM STUDY
INTRODUCTION
India today is one of the largest producers of soaps in the world. Today, the per capita
consumption of toilet/ bathing soap in India is 800 gms, where as it is 6.5kgs. in U.S.A., 4.0
kgs. in China,1.1 kgs.in Brazil and2.5 kgs. in Indonesia. At present, the Indian Soap Industry
is mainly divided into the Premium, Popular and Economy / Sub popular segments. Soaps form
the largest portion of the FMCG (Fast-moving Consumer Goods) market with bathing and
toilet soaps contributing around 30% of the soap market. The FMCG industry can be divided
into organised and unorganised sector. The size of the organised sector is about Rs.66 billion.
The industry has been growing at a CAGR of 4% for the last three years. It
accommodates product lines such as soaps, detergents, skin care, hair care, oral care, cosmetics,
disinfectants, other toiletries and processed packed food products. Price of the premium
segment products is twice that of economy segment products. The economy + popular
segments cover up about 80% of the entire soap market. The penetration level of toilet soaps
is about 88%.In India, soaps are available in five million retail stores, out of which, 3.75 million
retail stores are in the rural areas. Therefore, availability of these products is not an issue.70%
of India’s population resides in the rural areas; hence around 50% of the soaps are sold in the
rural markets. With increase in disposable incomes, growth in rural demand is expected to
increase because the consumers are moving up towards premium products.
Ever since September 2007, Fiama Di Wills has been providing gentle and effective care while
pampering and keeping you refreshed throughout the day. The Fiama Di Wills product
portfolio, consisting of Soaps, bathing Bars, Shower Gels, Shampoos and Facewash, has been
developed by scientists at the ITC R&D Centre, leveraging the expertise of International
product formulation specialists. Fiama Di Wills products are for modern, aware customers who
are confident of themselves and seek indulgences that make them feel alive, beautiful and
young.
There are many national and regional players in the bathing soap segment. The main player is
Pears, having the most of the market share. Then there are some national level brands like Lux,
Dove, Lifebuoy etc. and some local brands that are regional in nature. There are lot of varieties
in brands for the customer to choose.
PROBLEM STATEMENT
Kerala is an evolving market for the bathing soap industry and there is a lot of potential for the
major brands. ITC ltd.’s Fiama Di Wills is not yet the market leader in the bathing soap
segment, since there is competition in the form of regional players and national players. As
Kerala is an evolving market, my study was done to find the factors influencing the purchase
decision of consumers with respect to bathing soap. In this study, I would find the buying
pattern, the influence of offers for bathing soap and the reasons for the consumers to buy a
particular brand of bathing soap.
RESEARCH OBJECTIVE
The aim of the study is to find the factors influencing the purchase decision of consumers with
respect to bathing soap. Is the offers provided by companies a major push factor in purchasing
of bathing soap is checked upon. The preferences of consumers for bathing soap is also
checked. The data will be analysed to find out the purchase decision of the consumers and also
their perception towards various brands and the offers.
RESEARCH DESIGN
STATEMENT OF THE PROBLEM
Purchase decision of consumers towards Bathing soap.
SCOPE OF THE STUDY
The scope of study extends to all the consumers who purchase FMCG goods on a regular basis.
The consumers selected was from different districts of Kerala especially from South Kerala,
on a random approach.
RESEARCH METHODOLOGY
TYPE OF RESEARCH
This study is descriptive in nature
TYPE OF DATA
Primary data is used for the purpose-data collected from customers. Secondary data is used to
assist the primary data- information regarding the bathing soap industry
SAMPLING DESIGN
The sampling method used is convenience non random sampling
Sample unit: all consumers using bathing soap
For achieving the research objective, I have collected opinions of 140 people.
DATA COLLECTION METHOD
 Through e-mails
 Personal interview
INSTRUMENTATION
Primary data collection
 Questionnaires
LIMITATION
 Time was a constraint while collecting data
 Respondents were reluctant to take the survey
 I was not able to obtain 100% honest answers
 The sample size I took was less, so I was not able to obtain diverse answers
 Bias of the respondents towards the companies
 Convenience sampling could not represent the true population

RESULTS AND ANALYSIS
The study explains the buying behaviour and perception of consumers towards bathing
soap. The research is carried out to find out what the consumers want and what are the
factors that they consider when they make a decision of purchasing bathing soaps. This
research is also done to help ITC ltd. to improve the brand Fiama Di Wills in places
wherever necessary.
For the purpose of the study the purchase behaviour, attitude, perception of the consumers
towards bathing soap is analysed. Detailed information of interview, survey analysis and
results are explained below. There were total of 140 respondents who completed the survey.
GENDER
GENDER
MALE FEMALE
49%
51%
Out of the 140 respondents 49% were female and 51% were male. The most number of
people who purchase bathing soaps are male. Males purchase these kinds of products more
than females, as they are the ones who mainly care about which brand of bathing soap suits
them the most.
AGE
The respondents were categorized into different age groups for the convenience of the
study. The main motive to classify the respondents into different groups was to classify
them based on the different stages of their life and to interpret the perceptions and behaviour
towards bathing soaps.
AGE NO. OF REPSONDENTS

Below 20 years 14
21-30 years 94
31-40 years 10
41-50 years 14
Above 51 years 8
AGE GROUP
6% 10%
10%
Below 20 years
7%
21 to 30 years
31 to 40 years
41 to 50 years
Above 51 years
67%
Out of the 140 respondents, 10% were aged between Below 20 years and 41-50 years. 67%
of the total respondents were between age 21 and 30. So, in this survey this age group is
the most prominent age group. So their response will be ones having the most impact, as
they are most prominent group in this survey.
The following section will present interpreted data from the personal interview and survey
questionnaire. It will further explain summary of findings based on the research conducted.
MONTHLY PURCHASE
This analysis helps to find out the monthly purchase of bathing soaps by consumers. Most
of the people use bathing soap on a daily basis, so this will help to identify how much
quantity each consumer use on a monthly basis.
Quantity
70
60
61
50
40
38
30
27
20
10 14
0
1 2 3 4 or more
Quantity
INFERENCE:
 61 respondents said that they use 2 SKU’s of bathing soap every month.
 38 respondents purchases just 1 SKU’s of bathing soap monthly.
 27 respondents purchases 3 SKU’s monthly.
 14 respondents purchases 4 or more of bathing soap monthly.
 Therefore, it’s clear that most of the people purchase just 2 SKU’s of bathing soap
monthly.
INFLUENCE OF PROMOTIONS/OFFERS
The purchase decision may vary according to the various offers or the promotions done by
companies. Thus, it’s important to know whether these promotions or offers play a part in
consumers purchase decision of bathing soaps. There are chances that the companies may
lose its consumers if their competitors provide a better offer than what they provide.
INFLUENCE OF PROMOTIONS/OFFERS
YES NO
25%
75%
It was surprising that the consumers where so loyal to their brands that they were not
influenced by any of the offers or promotions. 75% of the respondents said that they are
not taken away by any means of promotions or offers in making purchase decision whereas
the rest 25% were driven by the offers or promotions made by the companies. As bathing
soap is in the category of PCP ( Personal Care Products), it’s difficult to influence the
consumers by any means of promotions or offers. Consumers are more health and skin
conscious and they do not tend to try any other product. Thus, they stick on to a product
by a single company. The perception cannot be changed easily as of other category
products.
PROMOTION TECHNIQUE
There are various ways by which companies do promotion activities such as by Cross
category promo (example: Buy 2 Vivel soaps and get notebook free etc.), Loyalty Card
Scheme (example: Buy Fiama 100gm and get Recharge of Rs100 Free etc.), Money Off
on purchase and Sample Selection. These types of promotions will play a major role in the
purchase decision of bathing soaps. Consumers prefer their brands to offer them such
promotional schemes so that they get to purchase more with an offer added to it.
PROMOTION TECHNIQUE
17% 17%
Cross category
promo
8% Loyalty Card
Scheme
Money Off on
Purchase
Sample
Selection
58%
INFERENCE
 58% of the respondents prefer promotions that provide them with money off on
purchase
 Each 17% of the respondents of the total respondents preferred Sample Selection
and Cross category promo.
 The rest 8% of the respondents said loyalty card scheme is the type of promotion
technique that they prefer.
BRAND PREFERENCE
One of the major driving force of any category of PCP (Personal Care Products) are the
brand that they prefer. Consumers being the main decision maker, they are scared to make
sudden shifts from one brand to another. Brands are always the significant factor who
decides upon maintaining their consumers to themselves or not. Even in the segment of
bathing soaps there are many major players that are in the industry for a longer period and
also there are few brands which have recently moved into the bathing soap category in
PCP.
Fiama Di Wills is a brand which is a recent player in the bathing soap industry. Some of
the major bathing soap are Pears, Dove, Mysore Sandal, Lux, Santoor, Vivel etc.
BRAND OF BATHING SOAP
Mysore Sandal
Fiama Di Wills
2% 6%
18%
Dove
Pears
4%
1% 28% Indulekha
4%
Lux
12% Lifebouy
1% Vivel
24% Santoor
Others
INFERENCE
 The major brand in the bathing soap industry are Pears and Dove, they were
preferred most by the respondents. Almost half of the preference was shared by
them. 28% of the respondents said that they preferred Dove and 24% of the
respondents preferred Pears over other brands.
 18% of the respondents choose the option “Others”, which mean that they
purchase brands which were not specified in the survey.
 12% of the respondents preferred Lux.
 Fiama Di Wills were preferred only by 6% of the respondents.
 Rest of the brands occupied the left space in the survey proportionally.
BRAND IMAGE
On the basis of the brand preferred by the consumers, they were asked few more
questions based on why they stick on to their brand. They were asked to rate their brand
on the basis of few characteristics. Firstly, being the most important characteristics is
the brand image. Brand image is what stands out with the competitors.
BRAND IMAGE
Poor Fair Good Very Good Excellent
2%
16% 10%
35%
37%
INFERENCE
 37% of the respondents rated the image of their brand as very good.
 35% respondents rated as good and only 16% of the respondents said that the
brand image of their brand is excellent.
 It’s clear that the brand image is a factor that decides the purchase decision of
the bathing soap.
PRICE
The next important factor that decides the purchase decision is the range at which the
products are priced. Price of the products is also a factor that can determine the direction
of the consumers to some extent. Products that are priced at a level which is affordable
to the consumers in all classes, have more chances of preferences. The price of the
products plays a major role in the purchase decision of bathing soap by consumers.
INFERENCE
PRICE
8% 3%
10%
31%
48%
 48% of the respondents said that price of the brands they buy are priced at a
good range
 31% of the respondents said that the products they buy are priced at a very good
level.
 The rest of the respondents had a mix opinion of the prices provided by their
brand.
 Overall, the current prices of the products are acceptable by the consumers.
QUALITY
Quality is something that defines the brand and the price for it. Consumers consider the
quality of the product when they make purchase decision. So, it’s important to consider
the quality when making the purchase.
QUALITY
2%
6%
29%
22%
41%
INFERENCE
 41% of the respondents considers the quality when making purchase decision.
 29% of the respondents said that the quality is a factor that is important but is
not much considered.
 Whereas, the 22% of the respondents said it is equivalently considerable.
 Hence, it’s clear that quality is an attribute which plays some role in the
purchase of bathing soap.
FRAGRANCE
Being in the Personal Care Product category, it is necessary that the bathing soap should
have some pleasant smell. Since, some consumers preferably look into the factor
whether the bathing soap give some decent smell. Therefore, purchase decision of
bathing soap is made also by considering the fragrance which is given out.
FRAGRANCE
5%
17% 6%
29%
43%
INFERENCE
 43% of the respondents buys the bathing soap because they feel that their brand
provides very good fragrance.
 The 29% of the respondents said that the have a neutral approach to the
fragrance that their brand gives.
 Therefore, its concluded that the fragrance of bathing soap also plays some role
in the purchase decision.
QUANTITY
There are consumers who look into the quantity of the product that they purchase. They
want to make sure that they get the quantity for what they paid for. Purchase decision
of bathing soap is determined by also considering the factor of quantity.
QUANTITY
5%
5%
26%
26%
38%
INFERENCE
 38% of the respondents makes the purchase decision only if they get enough
quantity for the amount they paid.
 Each 26% of the respondents said excellent and good. The brands that they
purchase have enough quantity that they require.
 The rest 5% and 5% of the respondents were not satisfied with the quantity
provided by their brand.
 Therefore, it says that quantity also plays a reasonable role in influencing the
purchase decision of bathing soap.


PRODUCT KNOWLEDGE
Knowledge of a particular brand is a factor by which the purchase decision is made.

There are various methods by which knowledge of a particular product is explained.
Only if the consumers are aware about a product, the purchase will take place. Thus, all
the companies tries to provide maximum information about a product so that it doesn’t
make any confusion in the minds of the consumer. Product knowledge can be explained
well with the help of media and other possible ways.
PRODUCT KNOWLEDGE
8% 2%
12%
33%
45%
INFERENCE
 45% of the respondents said that the product knowledge doesn’t play a greater
role in the purchase decision of bathing soap.
 33% said that enough and very good information is provided by their brand to
them.
 Rest have mixed opinions and are minority.
AVAILABILITY
Other important factor is the ready availability of products to the consumers. If the
bathing soap of a particular brand is not available in the nearby store, the consumers
may or may not shift from one brand to another. It is necessary that the producers must
supply enough stock at the right time. Delay in the store may cause the consumer to
shift to another brand or the product.
AVAILABILITY
3%
12%
25%
45%
15%
INFERENCE
 45% said that availability of products urge them to try new brands
 25% said availability may not urge them to try new brands
 This shows that availability does have a direct impact on the buying behaviour
of most of the consumers
PACKAGING
This analysis helps to find whether packaging have an impact on the buying behaviour
of consumers.
PACKAGING
6%
19% 6%
16%
53%
INFERENCE
 53% said that packaging urge them to try new brands

 6% said packaging does not urge them to try new brands
 This shows that packaging does have an impact on the buying behaviour of most
of the consumers
 Packaging can change the opinion of a consumer about a certain brand and they
may try new brands
ADVERTISEMENTS
This analysis helps to find whether advertisement have an impact on the buying
behaviour of consumers.
ADVERTISEMENTS
6%
16%
14%
21%
43%
INFERENCE
 43% said that advertisement urge them to try new brands

 6% said advertisements does not urge them to try new brands
 This shows that advertisement does have an impact on the buying behaviour of
most of the consumers
 Advertisement can change the opinion of a consumer about a certain brand and
they may try new brands
OFFERS
Since Offers are the driving factor, it is important to analyse the extent of the offers
offered by different companies to its consumers. The consumers tend to have a flexible
mentality to products with offers.
OFFERS
9%
23%
14%
23%
31%
INFERENCE
 Almost 91% of the consumers are driven by the offers provided by the
companies to them.
 Purchase decision is mainly based on the offers and promotions schemes.
 Consumers tend to purchase more when there is offers.
 Therefore, offers play a significant role in the purchase decision of bathing
soaps.
FINDINGS
• The consumers of age group 21-30 years purchases more bathing soap than other age
groups.
• Most of the time they go for brand having higher quality and those brands with good
brand name.
• The respondents considered that the price of the products were acceptable and
reasonable unlike other personal care products.
• Most consumers in the survey use Dove, second come Pears and then other brands that
were not mentioned in the survey questions.
• Most consumers buy bathing soap on a monthly basis, there is regular usage pattern of
the bathing soap.
• Consumers buy mostly from 2SKU’s every month.
• Most of the consumers ask or select a particular brand of bathing soap.
• 88% of the customers who use bathing soap ask for the brand they regularly buy.
• 45% of the consumers prefer foamy type bathing soap over other types.
• The 75% of the respondents said that offers provided by the companies have not
influenced their purchase decision.
• The respondents were aged mostly between 21-30 years.
• 43% of the respondents said that advertisements urge them to try new brands.
• The rest said that advertisements does not impact much in their buying decision i.e.
they will stick to their brand even if they see an advertisement of a new brand.
• Health benefit, quality and quantity are the main reason consumers consider before
buying bathing soap.
• This means that most of the consumers are scared to change their brand that they have
being using.
• Quality, price and brand name plays an important role in the purchasing decision of
bathing soap.
• 100% of the bathing soap consumers prefer quality of the product and brand name over
price of the product.
• This shows that those who buy bathing soap, buy it due to quality and brand image, not
due to price.
• Packaging and consumer offers doesn’t have much impact in the mind of the consumer
when purchasing bathing soap.
• 75% of the consumers agree to the fact that they use bathing soap just because they
were either loyal to a particular brand or by the influence of ads of some brands.
• 88% of the consumers look for bathing soap brands that have good and attractive
packaging.
• 48% of the respondents said that price of the brands they buy are priced at a good range.
• 41% of the respondents considers the quality when making purchase decision.
• 85% of the consumers agree that they stick to the same brand they are using, so it is
likely for those consumers to rebuy the same brand.
• 62% of the consumers are satisfied with the brand of bathing soap they are using, 16%
remains neutral.
• 63% of the consumers disagree to the fact that they change brand if there is a price rise
for the existing brand.
• This shows the brand loyalty of the consumers and also shows that price rise does not
have much impact for those consumers.
• 63% of the consumers agree that they will stick to their existing brand even if there is
a price rise, this also shows the brand loyalty.
• 71% of the consumers disagree to the fact that they always prefer lower priced brand.
• This shows that price doesn't have much impact in the purchasing decision on those
consumers.
• 60% of the consumers will suggest the brand they are using to others, 30% may suggest
the brand and 10% does not suggest their current brand they are using.
CONCLUSION
• From the study the various aspects of the consumers buying behaviour were found out
• Many reasons for consumers choosing bathing soap was found out and the purchasing
pattern of the consumers were also find out.
• Brand loyalty of the consumers were also checked in the survey.
• The survey shows that Fiama Di Wills should try and achieve a position in the minds
of consumers of bathing soap.
• The main reason for not using Fiama Di Wills is due to consumers are not ready to shift
from their current brand.
• Then the next reason is the shopkeepers, the shopkeepers sometimes give those brands
which have higher margin, to the consumers who doesn’t have much preference for a
particular brand.
• But still Fiama Di Wills has certain value in the mind of the people and that need to be
maintained.
• Some more push can be done in the market to get more market share.
SECTION III
ROUTINE WORK
DAILY ROUTINE
The Big Day Sales was from 23rd January, 2016 to 26th January, 2016 wherein I was
assigned to do the sell-out directly to consumers by persuading them to make a purchase of
ITC’s PCP(Personal Care Products). I worked in both the Big Bazaars’ at Trivandrum, Kerala
i.e., Ravi's Arcade, Near Over Bridge, M.G. Road, Pazhavangadi, Thiruvananthapuram, Kerala
and Big Bazaar, Kalpana Heights, Pattom Junction, Near Old Kalpana Theatre,
Kesavadasapuram, Thiruvananthapuram, Kerala. I promoted the products under the category
of Soaps, Deodorants and Cologne. Under the Soap category I promoted the Gel Bar under the
Brand Name “Fiama Di Wills” and in the deodorants and cologne category the Brand name
was “Engage”.
21st January, 2016
This was the first day of me working as a promoter during my internship period. Since
I didn’t have any prior experience, I was really excited about the job and more over confused
about how I should go about it. The first location was the Big Bazaar at Kesavadasapuram,
Thiruvananthapuram, Kerala. Since, we were asked to visit all the major accounts in
Thiruvananthapuram on 19th of January where I analysed how the store is arranged and how
much does ITC’s products have a share in the respective shelfs, thus it was easy for me to
handle the consumers queries. I was asked to sell out the products under the Category Soaps
i.e., Fiama Di Wills Gel Bar which had an offer of “Buy 3 and Get 1 Free”, which was priced
at Rs.180. The products were kept in a floor stacked format with the competitor Dove and
Pears. We had a lesser stock and the arrangement itself showcased our product as a less quality
one comparing with our competitor. I didn’t find our design appealing or attractive and I wanted
to change the floor stacking way to some more catchy one but I didn’t because I thought the
arrangements had some inner meaning. On 21st, I could make a sale of 6 SKU’s within one
hour, which I felt proud because the promoter of ITC said that the maximum units of Gel Bar
sold on a day was just 5 SKU’s.
22nd January, 2016
The first thing I did was, I went and

asked the floor manager whether I can change
the arrangements of my Gel Bar. He gave me
permission to do anything to increase sales. So,
this is what I did.
The main purpose of me doing this was

to attract consumers to our product and above
that to bring a feeling that our product is equal
to the products of the competitors like Pears and
Dove as the picture below shows. Once I had
done that I started off my sales and I could sell
16 SKU’s that day. It was actually difficult to
sell the Fiama Gel Bar to the consumers because
more than half of the footfalls were either not
aware of the product or they were not willing to
make a purchase decision on our product over
Pears.
23rd January, 2016
On this day , when we made a sale

of 36 SKU’s whereas Pears could only sell 9 SKU’s
and that was really a proud moment for me as a
promoter. The main factor that boosted the sales
was a different method that I did.
I carried 2 SKU’s of all the variants of the Fiama

Di Wills Gel Bar and went directly to the consumer
so that they get aware of our product and the offer
that we are providing. Many consumers had a mind
in purchasing soaps so I could take the advantage
of that and persuade them in making the decision. I
approached the consumers by greeting them and
slowly introducing them to our product.
STEPS :
Steps that I undertook in persuading consumers

were:
 Greeting the consumer.

 Introducing them to the offer and our product.
 Telling them the uses and the advantages over other products.
 Enquiring about their previous purchases in the soap category.
 Taking feedback if ever they have used Fiama Di Wills Gel Bar.
 Finally, making them to purchase the product.
24th January, 2016
This was the last day at the Big Bazaar in Kesavadasapuram, Thiruvananthapuram,
Kerala. The customer walking’s were comparatively lesser than that of the previous day which
directly affected the sales volume. I was able to sell only 20 SKU’s during this day. I also did
some sales with the deodorants, which is the Engage Deodorants’ and the Engage Cologne
brands wherein I sold 53 SKU’s in total.
MAIN PROBLEMS OF FIAMA DI WILLS :
The below mentioned are some of the problems that I felt as the reason that consumers
were reluctant to purchase the same.
 As many as 80% of the consumers are not aware of the Gel Bar.
 Consumers are not ready to change from Brands like Pears and Dove.
 Insecurity in switching to different brands.
 Consumers are not aware of how to use the Gel Bar.
 Risk factor is common in consumers mind.
FEEDBACKS OF FIAMA DI WILLS :
There were many common feedbacks, but among them there were some feedbacks
which I felt important and to be noted.
 Consumer 1 : “I use Fiama Di Wills gel bar and I like the product, but the only defect is
that it gets over soon."
 Consumer 2 : “I use only soaps that have TFM(Total Fatty Matter) content, and its neither
found in your products nor mentioned in the package.”
The common feedback that I received from the consumers of Fiami Di Wills Gel bar was
that that the product is a quality one and they still continue using it.
25th January, 2016
I was asked to work at the Big Bazaar in Ravi’s Arcade, M.G. Road, Pazhavangadi,
Thiruvananthapuram, Kerala for the last two days of the Big Day. Over there I did the sell-out
activities and promotion of the Engage deodorants and the Engage cologne categorizes. The
main advantage in this Big Bazaar was that it was located in the center of the city and it had a
pulling of consumers into the store by its own compared to the one at Kesavadasapuram. There
were consumers of all age groups and mainly consumers who came for purchase was in the age
group of 30-40 years. Thus, they were more interested in the personal care and the clothing
sections. I was able to make them purchase our deodorants and cologne spray. On this day, I
couldn’t find much traffic as I heard about the store. As I did my selling back there with the
basket, I tried following the same here too. I carried 2 SKU’s of all the variants in the deodorant
and cologne spray category but there weren’t much a demand. I could only convert a few
consumers to make the purchase decision using the basket sales.
The Basket Sales was an effective method wherein I could actually go to the consumers
directly and tap their need and convert that into a purchase. But since on 25th there weren’t
much rush in the store there was less sales that happened during this day. I made a sale of 58
SKU’s of Engage Deodorants and 9 SKU’s of Cologne spray which makes a total of just 67
SKU’s.
26th January, 2016
The BIG DAY had finally come and it was sure that all the promoters of various
companies would definitely try to boost the sales so it made me feel little nervous at the
beginning and that was when I couldn’t do well. I was struggling for sales to happen but once
I got a motivation and I calmed down myself I started picking up slowly with the sell-out. I
tried the basket sales in for few hours and the traffic increased I decided to stay near the shelf
and concentrate on maximum sales. At the
end, I could sell 112 deodorants and 4
cologne’s which resulted in the whole sale
of products in Cologne spray.
STEPS :
Steps that I undertook in persuading

consumers were:
 Greeting the consumer.

 Introducing them to the offer and
our product.
 Making them smell our different
variants
 Telling them the uses and the

advantages over other products.
 Taking feedback if they have
either used Engage deodorants or cologne
spray before.
 Finally, making them to purchase
the product.
FEEDBACKS OF ENGAGE :
As there are both the sides, consumers had different opinions but mainly the feedbacks
of consumers who have been using the Engage had a very good opinion. Basically, people were
ready to buy any of the company’s product in deodorants and Cologne because their
preferences was with better fragrance and the lasting smell products. People didn’t show much
brand loyalty in this category products. The Big Day offers was one of the reason that
consumer’s decided in purchasing Engage over others.
 Consumer 1 : “I use engage and it is has a lasting fragrance.”

 Consumer 2 : “Sorry. I don’t want to try another company’s product. I prefer AXE.”
 Consumer 3 : “Nivea’s product has 48hrs lasting whereas your product would last only for
24hrs.”
SALES DATA DURING BIG DAYS
The data below shows the Sales made by me from 21st January, 2016 to 26th January,
2016, the number of consumers met during a day and the conversions made within them.
DAYS SALES NO. OF CONSUMERS MET CONVERSIONS
21.1.2016 6 15 6
22.1.2016 16 27 16
23.1.2016 36 65 36
24.1.2016 47 75 47
25.1.2016 67 30 15
26.1.2016 116 78 33
SALES
21.1.2016
22.1.2016
2%
6%
23.1.2016
13%
26.1.2016
40%
24.1.2016
16%
25.1.2016
23%
PRODUCT PROMOTER
A promoter is a pleasant and competitive person that thrives in attracting new

customers. Promoter must play a fundamental role in achieving a company’s ambitious
customer acquisition and revenue growth objectives. He/she must be comfortable making
dozens of product/services presentations, generating interest and qualifying sales prospects.
ROLE OF A PROMOTER :
 Demonstrate and provide information on promoted products/services
 Create a positive image and lead consumers to use it
 Use lectures, films, charts, and/or slide shows
 Distribute product samples, brochures, flyers etc. to source new sales opportunities
 Identify interest and understand customer needs and requirements
 Set up booths or promotional stands and stock products
 Report on demonstration related information (interest level, questions asked, number

of samples/flyers distributed etc.)
ROLE OF A PROMOTER (MY VIEW) :
The sales of a product depends mainly on the promoter. Few things that I felt is a must
are :
 Being impressive in every action that a promoter makes even if it’s just wishing the
customer
 Entertain them with your words and make sure they actually develop an interest in
purchasing from you
 Make sure you have samples of the products you are selling because 20% of the
customers purchases products only by feeling the product personally
 Try not to compel customers who have a specific loyalty to a particular brand
 Keep good relation with fellow promoters and the floor
 Respect customers by giving them their time in the store
RECOMMENDATIONS
WITH A PROMOTER :
The sales of a product can be increased only by increasing the efficiency of a promoter.
Few things that I feel could help the promoter in increasing the efficiency is :
 Greeting the consumer is an important factor to be noted

 Increase presentation skills by providing proper training
 Appropriate motivation must be provided whenever required
 Promotion techniques must be changed frequently
 If the consumer has a willingness to the product, then the promoter must just wait for
him/her to take the decision
 Never compel any customers to your product
 Try to obtain maximum feedbacks from customers so that you know where to improve
 Make sure you have samples of the products you are selling because 20% of the
customers purchases products only by feeling the product personally
 Keep good relation with fellow promoters and the floor which would directly make a
healthy working environment
WITHOUT A PROMOTER :
Sales can happen even without promoters. The way products are arranged are one
among the important factor to be noted. Arrangements of products either in the shelf or by
using various methods are all a factor contributing to the end result. Thus, the promoter must
ensure that their products should attract customers without their presence. Few things I feel
would help in the increase of sales are :
 Ensure we are placed equal to that of the competitors in the shelf

 The packaging of products is another factor which attracts customers, so it is necessary
that we have an attractive package
 80% of the customers buy products which have offers and the rest 20% are the loyal
customers to a specific brand. So, ensure that we have an attractive offer compared to
competitor.
PROJECT LIMITATIONS
The Limitations that I faced throughout my project was :
 Time was a major limiting factor.

 Bias of the consumers towards the companies.
 There were no testers provided for the products.
 Influence of brand name to the consumers for PCP were comparatively less.
 Advertisements have not helped in gathering consumers to the company’s product
 The design of floor stacking and other shelf stacking methods was not effectively
done.
 Consumers are still not aware of the options they have in the market.
 Few consumers do not tend to listen to the promoter.
 Many consumers preferred sealed product than those open ones. They considered the
open one’s as already used.
TAKE AWAYS
 During my Internship period at ITC Limited, I could build myself as a professional and
also I could learn the various categories of products and also about the companies that
provide these. I got an understanding about how the WDC’s (Wholesale Distribution
Centre) functions and what are their major roles.
 The WDC is again divided into two i.e., the GT(Grocery Trade) takes care of the Groceries
and other small retail outlets whereas the MT(Modern Trade) looks into the main accounts
such as the Local Accounts, Regional Accounts and the National Accounts. All these
accounts have just a single point of negotiations.
 The salesman goes directly and take orders only from the retailers and from the Regional
and Local accounts whereas the National accounts has an automated generated
PO(Purchase Order).
 The orders of the National accounts will be generated automatically if the quantity drops
below the MBQ(Minimum Basic Quantity). The MBQ is set on the basis of the following
factors :
 The shelf size
 Sales in the accounts for that product
 Depth and,
 Lead time between two supplies
 The exposure that I received by doing the direct sell-out activities has helped me to
understand how the consumers think about a product and what are they expecting from the
existing products.
 Understanding the customers preferences and learning their switching habits has helped me
to analyse and take action accordingly.
 Moreover, the work environment were totally different ones and I was able to tackle that
and was able to keep a rapo between my fellow promoters.
BIBLIOGRAPHY
 ITC reports and accounts 2015
 Emerging challenges and prospects of fmcg product development in India by G.
Nagarajan & Dr J. KHAJA SHERIFF
 Indian fmcg sector by PwC
 http://economictimes.indiatimes.com/itc-ltd/infocompanyhistory/companyid-
13554.cms
 http://business.mapsofindia.com/top-brands-india/top-soap-brands-in-india.html
 http://www.fiamadiwills.com/about-us.aspx
 https://www.scribd.com/doc/60786013/Present-Scenario-of-Indian-Soap-Industry
 http://www.ibef.org/industry/fmcg-presentation
 http://www.nielsen.com/in/en/insights/reports/2014/understanding-indias-fmcg-
shopper.html
 http://www.cii.in/Sectors.aspx?enc=prvePUj2bdMtgTmvPwvisYH+5EnGjyGXO9hL
ECvTuNvwUH5MWzEuAiG8dfH+/Z7F
 http://www.itcportal.com/

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A STUDY OF VARIOUS FACTORS LEADING TO

PURCHASE DECISION OF BATHING SOAP WITH RESPECT

RAJAGIRI BUSINESS SCHOOL

POST GRADUATE DIPLOMA IN MANAGEMENT

RAJAGIRI BUSINESS SCHOOL

SECTION ONE: ORGANIZATION STUDY

SWOT ANALYSIS OF FMCG SECTOR 4

SWOT ANALYSIS OF ITC 30

SECTION TWO: PROBLEM STUDY

PROBLEM STATEMENT, RESEARCH OBJECTIVE 33

RESULTS AND ANALYSIS 36

SECTION THREE: ROUTINE WORK

FMCG Industry Economy

Common FMCG Products

Market potentiality of FMCG Industry

1. Hindustan Unilever Ltd.

SWOT ANALYSIS OF FMCG INDUSTRY

 Presence of established distribution

COMPANY HISTORY AND EVOLUTION

VISION, MISSION, CORE VALUES AND GOVERNANCE POLICIES

Respect for People

 Continuously strengthen and refine Corporate Governance processes and systems to

Fig 1. ITC Board of Directors

Y C Deveshwar Nakul Anand P V Dhobale

Rajiv Tandon B B Chatterjee

Table 1. ITC Corporate Management Committee

DEPARTMENTS & FUNCTIONS

1) Finance Department- Finance Department is headed by an Assistant Finance Manager

2) Marketing Department-The Marketing Department in ITC is working under four

Fig 3. ITC Branch Structure II

Fig 4. Gender wise employee break up

Total No. of Shareholders as on 19th 5,39,880

STATEMENT OF THE PROBLEM

Purchase decision of consumers towards Bathing soap.

SCOPE OF THE STUDY

This study is descriptive in nature

The sampling method used is convenience non random sampling

Sample unit: all consumers using bathing soap

DATA COLLECTION METHOD

Primary data collection

 Time was a constraint while collecting data

 Respondents were reluctant to take the survey

 I was not able to obtain 100% honest answers

 Bias of the respondents towards the companies

 Convenience sampling could not represent the true population

AGE NO. OF REPSONDENTS

BRAND OF BATHING SOAP

Knowledge of a particular brand is a factor by which the purchase decision is made.

 53% said that packaging urge them to try new brands

 43% said that advertisement urge them to try new brands

• Consumers buy mostly from 2SKU’s every month.

• Most of the consumers ask or select a particular brand of bathing soap.

• The respondents were aged mostly between 21-30 years.

• Brand loyalty of the consumers were also checked in the survey.

21st January, 2016

The first thing I did was, I went and

The main purpose of me doing this was

On this day , when we made a sale

I carried 2 SKU’s of all the variants of the Fiama