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ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited 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 - Fast Moving Consumer Goods, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology ITC's Packaging & Printing Business was set up in 1925 In 1975, the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola' (now renamed My Fortune, Chennai).
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited In 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000 ITC launched line of premium range of notebooks under brand Paperkraft in 2002 In 2002, ITC also entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour) In 2003, ITC witnessed the introduction of Sunfeast as the Company entered the biscuits segment ITC entered the fast growing branded snacks category with Bingo! in 2007 In 2010, ITC launched Sunfeast Yippee! to enter the Indian instant noodles market
VISION
Sustain ITC's position as one of India's most valuable corporation through world class performance, creating growing value for the Indian economy and the Companys stakeholders
To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value
MISSION
CORE VALUES
ITC's Core Values are aimed at developing a customer-focused, high-performance organization which creates values for all its stakeholders
FMCG
HOTELS
AGRI BUSINESS
PAPER BOARD
Information Technology
Leaf Tobacco
Agri-commodtiy
ACHIEVEMENTS
ITC is the first Indian company and the second in the world to win the prestigious Development Gateway Award
ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate Triple Impact Award in 2007
ITC was conferred the World Business and Development Award 2012 at the historic Rio+20 United Nations Summit which concluded recently ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in 2007 The Business Today Award for the Best Managed Company in recognition of its outstanding initiatives in the consumer products segment. The only Indian FMCG company to have featured in the Forbes 2000 list.
SWOT ANALYSIS
Strength
Strong Financial Performance Products Portfolio Distribution Network Environmental Friendly Research & Development Socially Responsibility Brand Equity
Weakness
Dependency on the tobacco business Not present in many important sectors Local Company
Opportunities
Leveraging its brand equity Right size at the right time The unique reach and distribution network of Echoupal: Synergies across businesses and leveraging domain expertise for growth in other sectors
Sunfeast - To be launched nationally in phases in over one million retail outlets across the country. Sunfeast" range of biscuits is competitively priced and would include two new product innovations - Orange flavored Marie and Butterscotch flavored Cream biscuits Product innovation
The pricing of the ITC food division depends upon the Customers demand schedule, the cost function and the competitors price.
The pricing of the company is such that it caters to the need of all income groups of people but special provision has been kept for Low and middle income group, and their pricing are competitive with respect to other players like Britannia, Parle and Briskfarm.
The company follows the Going rate pricing that is the price of the product depends upon the competitors price. The firm chooses pricing more or less the same as Market leader.
PROMOTIONAL STRATEGY
Sunfeast school programme: covers 1000 schools across country, to familiarize children with sunfeast brand name and sunfeast mascot Brand ambassador: shahrukh khan & surya (south actor) Official sponsor of WTA tennis championship-sunfeast open Launch of Sachins Fit Kit, the first product co-created with brand ambassador Other activities:On buses, print media , hoardings, TV and radio advertisements
INDUSTRY CONSISTS OF
Major Players Minor Players Emerging Players Foreign Niche Players
United Biscuits(Bitain) Danone (French food giant) Nubisco Unibic (tied up with Food Bazaar launched Tasty Treat
MAJOR COMPETITORS
BRITANIA INDUSTRIES LIMITED PARLE PRODUCTS PVT LIMITED SURYA FOOD AND AGRO LIMITED
Established in 1896 90% of Britannias annual revenue of Rs2,200 crore comes from biscuits KEY PRODUCTS: TIGER, GOODDAY, BORBON, 50-50, MARIE GOLD, TIME PASS
Established in 1929 the largest selling brand of biscuits in the world 70% market share in India in the glucose biscuit category KEY PRODUCTS: Parle-G, Hide and Seek, Krack Jack, Monaco, Parle Marie, Milk Shakti, Parle 20-20.
Incorporated 1992Manufacturing and selling of biscuit under brand PRIYAGOLD in octoer1993. Key products: Classic Cream, Butter Bite, Bourbon, Marie Lite, Magic Gold, CNC , Sanack, zig zag,
STRATEGIC COMPARISON
Companies have multiple products and businesses under their umbrella While preparing the marketing strategy companies need to decide about adding new products or identify products should no longer be retained. So the first step is to identify the various Strategic Business Units (SBUs) in a company portfolio.
QUESTION MARKS LOW MARKET SHARE & HIGH MARKET GROWTH FMCG others
HIGH GROWTH
CASH COWS HIGH MARKET SHARE & LOW MARKET GROWTH FMCG-Cigarette DOGS LOW MARKET SHARE & LOW MARKET GROWTH ITC infotech
LOW GROWTH
HIGH GROWTH
CASH COWS HIGH MARKET SHARE & LOW MARKET GROWTH Milky Magic ,Marie Light Original and orange, Sunfeast Dual Dream Cream DOGS LOW MARKET SHARE & LOW MARKET GROWTH Sun feast Fit-Kit
LOW GROWTH
Britannia, Parle
Oreo, PepsiCo
STP OF SUNFEAST Biscuit Sunfeast glucose biscuit Sunfeast orange Marie Sunfeast marielight Sunfeast orange cream Sunfeast Butterscotch Cream Sunfeast bourbon cream Segmenting Demographic Targeting Children between the age group 4-14 yrs Housewives Children between the age group 4-14 yrs Children between the age group 4-14 yr Children between the age group 4-14 yr Children between the age group 4-14 yr Positioning Natural goodness of wheat A very differentiate offering Tight and Crispy
Education
Income
Geographic
Age
Lifestyle
PRODUCT FOCUS
high quality
DIVERSIFICATION
Indian rural and agri. market is 70% to other resources in India ,but only 30 % of GDP is from agriculture sector .
FMCG being the fourth largest sector in the field which is expanding at a very fast pace and it has huge potential , along with the benefit that it can be accrued by organizing the existing fragmented market accrued by market leading to concept of one stop shop. Further India being one of the largest economies with the benefit of its vast market ,it attracted ITC to the expand its operation in various areas of hospitality, FMCG ,Greeting cards Branded Apparels etc.
PRICING STRATEGY
There is Two method of Pricing 1. Low Margin 2. Two-Pronged Strategy Essentially, Parle plays a high volume, low margin game. But Sunfeast looks at a two-pronged strategy, High margins in cream variants and volumes from the Marie and Glucose segments. For instance, cream biscuits from both Sunfeast cost Rs10 for 100 grams. Parle, however, only charges Rs 5 for its cream variants. Except for Hide & Seek, all of Parle 'products lie in the price range between Rs 4 and Rs 6for 100 gram packs.
Sunfeast has to maintain its status by providing more and more facilities.
Sunfeast has to develop more variety of biscuit so that the customer could not return in case of lack of choice.
The company should also give emphasis on other gift and/or discount schemes.
ITC must cater more funds to their FMCG-Food sector as it has been showing growth of 20.9 % from FY 2011-12 to 2012-13.