IDENTIFICATION OF PREMIER CLUB OUTLETS IN SHIMLA AND

STUDY ITC KSFT VIS-A-VIS COMPETITION KSFT SALES IN

THOSE OULETS

NAME:PARMANYU SARKHANDIA
PURSUING MY MBA FROM JAMMU
UNIVERSITY, THE BUSINESS SCHOOL
PROJECT IN ITC UNDER THE GUIDANCE
OF SATYENDRA SINGH
CONTENTS:
• INTRODUCTION
• COMPANY PROFILE
• VISION AND MISSION
• SWOT ANALYSIS
• RESEARCH METHODOLOGY
• OBJECTIVE
• DATA CAPTURING
• DATA ANALYSIS
• FINDING
• RECOMMENDATION
• LIMITATION
• CONCLUSION
 INTRODUCTION
• ITC is one of India's foremost multi-business enterprise with a market
capitalization of US $ 45 billion and a turnover of US $ 8 billion.
• ITC has a diversified presence in FMCG (Fast Moving Consumer Goods),
Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and
Information Technology.
• ITC is No. 1 in FMCG Sector.
• ITC is an outstanding market leader in its traditional businesses of
Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly
gaining market share even in its nascent businesses of Packaged Foods &
Confectionery, Branded Apparel, Personal Care and Stationery
 ITC’s PROFILE
• Type : Public
• Traded as: BSE: 500875
• Industry: Conglomerate
• Predecessor : W.D. & H.O. Wills .
• Founded On: 24 August 1910(as Imperial Tobacco Company of India)
• Headquarters: Kolkata, West Bengal, India
• Products: Consumer goods, Tobacco, Hotels, Agribusiness, Paperboards & specialty papers,
Packaging, Information technology
• Revenue: ₹60,493 crore (US$9.4 billion) (2017)
• Net income: ₹10,471 crore (US$1.6 billion) (2017)
• Divisions: ITC Infotech, Surya Nepal Pvt. Ltd.
• Website: www.itcportal.com
 VISION & MISSION
Vision: Sustain ITC’s position as one of
India’s most valuable corporations through
world class performance, creating growing
value for the Indian economy and the
Company’s stakeholders.

Mission: To enhance the wealth generating

capability of the enterprise in a globalizing
environment, delivering superior and
sustainable stakeholder value.

Core values: ITC’s core values are aimed

at developing a customer focused, high
performance organization which creates
values for its stakeholders.
 SWOT ANALYSIS
Strength Weakness
•Cigarette market is 22,000 cr and •Dependence on tobacco revenues
ITC has lion’s share in it • Negative Connection of Tobacco
•Strong brand recognition and
product portfolio
•Distribution network
•Management
Opportunity Threat
•Consumption Of personal care •Competition both Domestic &
products International
•Rural Market •Increasing Tax on cigarettes
• Filter cigarette segment of less •Regulatory restrictions on cigarettes
than 60mm size •Ban on smoking
RESEARCH METHODOLOGY
 OBJECTIVES
• Identify top KSFT selling outlets in Shimla.
• Assess Market shares of ITC and GPI in Shimla
• Find out ITC KSFT contribution to total ITC
Sales.
• Take out ITC KSFT Share VS PMI Sales.
• Recommendations, if any.
 Modus Operandi
• Capture ITC Sales data in Marketing App.
• Work with DSs for 6 consecutive days to
assess outlet sales.
• Take brand-wise sales for ITC on App.
• Take competition Sales on paper.
• Availability of the brands by tracking it on the
route for ITC and Competition.
 DATA COLLECTION:
• Work at retail outlets:
1) To check the availability of ciagrettes.
2) To check freshness of ciagrettes.
3) To know the current sale of cigarettes.
• Data collection technique:-
1)Interview with retailers.
2)Observation.
• Research instrument:-
• Direct contacts with retailers.
• Sampling Plan: -
• Sample size 412 retailers
• Sampling Method Simple Random
• Sampling Area Shimla
DATA CAPTURING: MARKET
MAPPING APP
STEP1.: LOGGING IN
STEP 2: REPORT SALE DATA
DIFFERENT BRANDS:
SELECTING A VARIANT BETWEEN A BRAND:
STEP 2(a): NO. OF PACKETS OF
DIFFERENT BRANDS
ANALYSIS AND INTERPRETATION
No. of Outlets Covered & Volume Class

I have covered 412 outlets in Shimla and surroundings and identified 81 outlets as
Premier Club.

VOL. CLASS NO. OF %AGE OF NO. OF OUTLETS

OUTLETS TOTAL PREMIER CLUB ENROLLED FOR
OUTLETS OUTLETS PREFFERE D
SURVEYED PARTNERSHIP
1 17 4 17 15
2 61 15 36 3
3 95 23 27 0
4 91 22 1 0
5 100 24 0 0
6 48 12 0 0
TOTAL 412 100 81 18
ITC VS GPI SALES in SHIMLA:
Sales

16.13

ITC SALES
GPI SALES

83.86

This pie chart shows that ITC sale which is 83.86% is better than GPI sale
which is 16.13.
ITC KSFT VS PMI KSFT IN SHIMLA:

Sales

8.28

ITC KSFT
PMI KSFT

91.72

This pie chart shows that ITC KSFT sale holds a big share than PMI KSFT
sale.
 ITC KSFT VS ITC NON KSFT IN
SHIMLA:
Sales

16.44

ITC KSFT
ITC NON KSFT

83.56

This pie chart shows that ITC KSFT sale is 16.44% where as ITC NON KSFT
SALE IS 83.56%
 ITC KSFT (NON GFK)SALE BRAND
WISE IN DIFFERENT OUTLETS IN
SHIMLA CRT 16.53
Sales CBT 11.18
1.54 CRT C REF T 9.86
4.08
2.72 CDB 2.5
1.65 CBT
0.57 16.53 CI 1.92
1.92 C REF
T CLS .57
2.5 CI B&H 1.65
MA 2.72
CDB
9.86 MR 1.54
11.18
CLS
ML 4.08

This pie chart shows that classic rich taste holds a good share of 16.53% in
shimla region among different KSFT variants of ITC as well as GPI
 ITC SALES VS GPI SALES
Premier Club Outlets Non premier club outlets
Sales Sales

15.54 16.58
ITC SALES ITC SALES
GPI SALES GPI SALES
84.45 83.42

The above comparison shows that ITC overall sale in cigarettes is high in both
premier club and non premier club outlets.
 ITC KSFT SALES VS PMI SALES
PREMIER CLUB OUTLETS NON PREMIER CLUB OUTLETS
Sales Sales
10.08 5.63

ITC KSFT ITC KSFT

PMI KSFT PMI KSFT
89.91 94.36

The above comparison shows that ITC KSFT sale is high in premier club outlets as
well as non premier club outlets.
 ITC KSFT SALES VS ITC NON KSFT
SALES:
Premier club outlets Non premier club outlets
Sales Sales

12
22.4 ITC KSFT
ITC KSFT

ITC NON ITC NON

77.59 KSFT KSFT
88

The above comparison shows that ITC NON KSFT sale is higher in both the
premier club and non premier club outlets.
 ITC KSFT SALE BRAND WISE IN
PREMIER CLUB OUTLETS IN SHIMLA:
CRT 17.06
Sales
CBT 13.47
1.82
C REF 11.97
CRT
1.66 4.94 T
CBT CDB 2.83
17.06
0.92 3.48
C REF CI 3.64
3.64 T
CLS .92
CDB
2.83
B&H 1,82
CI
13.47 MA 3.48
11.97 CLS
MR 1.66

ML 4.94
 ITC KSFT SALE BRAND WISE IN
BALANCE OUTLETS:
CRT 15.87
Sales
1.6 CBT 7.98
1.37 CRT
1.13 C REF T 6.93
0.08 2.76 CBT
0.64 CI .88
0.88 C REF
15.8 T CDB .64
CI
CLS .08
6.93 CDB
B&H 1.13
CLS
MA 1.6
7.98 B&H
MR 1.37

ML 2.6
 PREMIER CLUB OUTLETS:
OUTLET NAME PER DAY SALE ITC SALES ITC KSFT

GURU PAN PALACE 358 274 77

VIMAL 204 174 55

SURAJ LAL UMA SHANKAR 308 278 54

GUPTA GEN. STORE 142 134 44

RAHUL GEN.STORE 165 151 42

RAHUL GEN.STORE 171 144 38

RAM KISHAN 103 99 37

 OUTLET NAME PER DAY SALE ITC SALE ITC KSFT

JASWAL GEN. STORE 143 121 36

SHIV KUMAR VIMAL KUMAR 206 187 35

RAKESH GEN. STORE 169 134 34

CHHOTE LAL 101 84 34

KRISHNA PROV. STORE 216 170 34

AJAY GEN. STORE 121 110 30

ABHISHEK 226 199 29

 OUTLET NAME PER DAY SALE ITC SALE ITC KSFT

CHAURASIA PAN HOUSE 95 76 29

FAMOUS CHAUHAN BUSINESS

CENTRE 170 154 29

SOOD SWEET SHOP 236 188 28

BHAI LAL AND SONS 92 74 27

GANGA PARSAD 105 90 26

DILIP KUMAR 185 144 25

BAGWATI GEN. STORE 145 112 24

 OUTLET NAME PER DAY SALE ITC SALE ITC KSFT

BITTOO GEN. STORE 122 122 22

BHAI LAL GEN. STORE 57 51 22

LOKENDER CHAUHAN 112 107 22

DURGESH PAN BHANDAR 117 83 21

ANIL KUMAR PYARE LAL 83 71 21

DEWANSHI GEN. STORE 85 83 21

B.R CHAUHAN 172 162 20

 OUTLET NAME PER DAY SALE ITC SALE ITC KSFT

RAJA RAM PAN SHOP 109 90 20

GUPTA DAILY NEEDS 126 99 20

UDDAN DAILY NEEDS 90 90 20

AMAR SWEETS 88 76 20

ARVIND GEN. STORE 176 135 20

RAM KISHORE 74 74 19

MATA PARSAD GUPTA 72 56 19

 OUTLET NAME PER DAY SALE ITC SALE ITC KSFT

GAUTAM GEN. STORE 78 66 19

SHIV KAILASH 139 108 18

RAJ GEN. STORE 68 68 18

RAM GOPAL 130 100 18

RAJDHANI FANCY STORE 102 71 18

NEW BEMLOI STORE 96 89 17

RAMESH GEN. STORE 75 68 16

 OUTLET NAME PER DAY SALE ITC SALES ITC KSFT

SANJEEV DAILY NEEDS 89 77 16

RAMESH GEN STORE 80 69 16

PAWAN COMMUNICATION 116 99 16

RAM PARSAD 150 129 16

DILIP 154 101 16

KAPOOR BHOJANALYA 74 60 16

SALIG GEN. STORE 107 96 16

 FINDINGS AND
RECOMMENDATIONS:
• ITC is the market leader in cigarettes.
• Increasing the efficiency of distribution system
can be helpful in increasing the sales.
• Educating salesmen about products so that
they can easily educate customers about
products also.
• We can increase the total margin given to
retailers.
• While taking orders DS should take care of all the
category of cigarettes.
• In order to maintain the competitive advantage, we
should counter the offers given by PMI to retailers.
• The ready stock system should be restarted.
• Partnership program has helped in increasing sales
and availability of ITC KSFT brands.
• Retailers should be communicated about the
schemes given by DS on a regular basis with every
visit.
• Stock unavailability at some point of times can be
problem so company should look after this.
• A minimum level of stock should be
maintained by the distributor so that he may
not go out of stock.
• Retailers does not hold the license and some
of them does not even hold the GST no. so
due to this sale of cigarettes is affected.
 LIMITATIONS:
• The time period for the study was not enough for
such a vast topic.
• It was difficult for the salesmen to pinpoint the
sales of a particular brand in retail stores.
• As the nature of research was exploratory so it
was difficult to cover each and every retailer.
• Many retailers don’t express their original
perception and views because of biasness.
• Certain questions were not answered with
justice.
 CONCLUSION:
• ITC is the market leader in cigarettes.
• Stock unavailability can be a problem so this
has to be tackled.
• Gold flake superstar is the core brand having
its stock and good sale in almost each and
every outlet in Shimla.
• With this efforts should be done to maintain
the leadership in the market.
THANK YOU