Project Report On Sunfeast

Presented To:Dr H. Gayathri

Presented By:Abhishek Agarwalla (12121) Chirag Thakur (12133) Kumar Piyush (12145) Rohin Thomas (12157) Sowmya K (12169) Ashish Jain (12181)

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Table of Content

INTRODUCTION ............ Error! About ITC Sunfeast .......... Error! ITCs PROFILE .............. Error!

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COMPETITORS ANALYSIS ......................................... 4ps ............................ Error!

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SALES AND DISTRIBUTION ............ Error!

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SEGMENTATION, TARGET AND POSITIONING ........... Error!

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SWOT ANALYSIS ........... Error!

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ANSOFF MODEL ....................................................... SUGGESTIONS ......................................................... CONCLUSION:- ........................................................

Introduction
Biscuit Industry in India
BISCUITS! A vital part of an average Indians snack time or tea break. Beyond a shadow of a doubt India has a huge market for biscuits and has been growing annually at a static level during the last decade. About 90% of Indians buy and eat biscuits. The per capita consumption of biscuits in the country is 1.8 kg. There has been an average growth rate of 13.5% between the years 2005 and 2011 in the biscuit industry. Indian Biscuit Manufacturers Association (IBMA) estimate biscuit industry to grow in the range of 15% to 18% every five years. Biscuit industry contributes Rs. 8000 crores to the FMCG industry today providing vast opportunity for growth.

Annual production of the biscuit industry (in lakh metric tonnes)

Annual Production (in lakh metric tonnes)

25 20 15 10 5 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 14.29 17.44 16.57 18.25 19.1 16.14

Annual Production (in lakh metric tonnes)

Main categories of biscuits in India: Glucose Marie Sweet Salty Cream Milk

The biscuit industry in India has both organized and unorganized sectors which are 65% and 35% respectively of the entire market. The biscuit industry happens to have a good penetration both in the urban as well as the rural market.

Rural-Urban penetration growth of Biscuit: Urban Market: 75% to 85% Rural Market: 50% to 65%

Marketing:Wholesale and Retail marketing in the Biscuit industry is carried out with a network of Carrying & Forwarding Agencies (for States and specific Districts), Dealers / Wholesalers and Retail shops.

Biscuit Consumption in India:-

27%

26% Northern Zone Southern Zone Westen Zone Eastern Zone

24%

23%

On behalf of the industry, IBMA has been pursuing the issue with the Chief Ministers/Finance Ministers of all States and also with the Chairman of the Empowered Committee on VAT, seeking reduction in the rate of VAT on biscuit to 4% from 12.5%. IBMA estimates annual growth in the range of 15% to 20% during the next five years, in the event of reduction in the rate of VAT on Biscuits to 4%. The Indian market is flooding with various brands of biscuits which come in different types and flavours. The leading companies of biscuits in the country are: Parle Britannia Sunfeast Priya Gold Cremica Dukes Anmol Horlicks Biskfarm Rose Sobisco Nezone 4

Parle is the market leader of the Indian biscuit industry.

Instant noodle industry in India

NOODLES! The first brand name which comes in the mind of an average Indian when he hears the word noodles in Maggi. The instant noodles Maggi which was introduces in the year 1983 is a hot favourite among all the kids of the country. Consumed in almost every Indian household Maggi which was initially considered a snack is taking the place of a staple diet in most Indian homes. In todays world, packaged and ready to eat foods are gaining quite a formidable share of the Indian food market. The word noodles became synonymous with the name Maggi. Nestle India Limited's Maggi has been dominating the Indian noodles industry since a period of almost 29 years. But Maggi is facing tough completion in the market today. Its three decade long domination over the noodles market is now under threat from various other companies like Hindustan Unilever (Knorr Soupy noodles), GlaxoSmithKline (Horlicks Foodles), ITCs (Sunfeast Yippie), Nissin (Top Ramen) and Big Bazaar (Tasty Treat). According to Mr Devendra Chawla, business head for private brands at the Future Group, one of India largest retailers, puts it succinctly: "The instant noodles market [in India] is set to grow from `1,300 crore (US$288 million) at present to around at least `3,000-3,500 crore (US$666 million to US$776 million) by 2015 and therefore all the big FMCG [fast moving consumer goods] players have their eyes set on it." Just like the Cola Wars (Pepsi Vs. Coca Cola) which happened during the 80s and the 90s, a Noodle War is soon bound to happen. Noodle Industry and market share of various players Year 2005 2006 2007 2008 2009 2010 2011 Maggi 92.3 91.9 91 88.1 89 86.5 85 Top Ramen 6 7.1 6.9 8.2 5.3 6.4 3.1 Tasty Treat 0 0 0 0 0.6 1 1.8 Yippie 0 0 0 0 0 3 4.3 Foodles 0 0 0 0 0 1 3.2 Others 1.7 1 2.1 3.7 5.1 2.1 2.6

According to industry analysts, the Indian consumer is a lot more open to the "instant food" categories and is far more demanding of more choices now than he or she ever was before. With ITC entering the market, Maggi is going to have a tough time as ITC is known for its in the eye kind of advertising campaigns and extensive supply channel. ITC claims to grab 10% of the market by the year 2012 for which they rely on their current network.

Market share of the various brands in the year 2011:1.8 4.3 3.1 3.2 2.6 Maggi Top Ramen Tasty Treat 85 Yippie Foodles Others

Instant Pasta Industry in India

PASTA!! Research conducted by ITC shows that mothers nowadays are looking for newer and innovative evening snack options for their children. Pasta is gaining popularity in the Indian market. Research also indicates that women are aware about Pasta but find the cooking process of Pasta tedious and cumbersome. ITC's innovative instant Pasta offering - Sunfeast Pasta Treat thus offers a unique solution for the Indian palates. The instant pasta market is at the kind of stage that the instant noodles market was years ago. says Chitaranjan Dar, Chief Executive Officer (CEO), Foods division at ITC. Estimated at Rs 40 crore, it is growing at 25 per cent per annum, according to the same report. In the next five years, the pasta market is expected to be at Rs 100 crores. ITCs Sunfeast Pasta Treat is the pioneer of this category which comes in six flavours:1. 2. 3. 4. 5. 6. Masala Tomato cheese Sour cream onion Cheese Chicken Pizza

Nestle launched its 'Pazzta' brand of instant pasta to complement its Maggi noodle line. Pazzta is available in three flavours:1. Cheese Macaroni 2. Masala Penne 3. Tomato twist

Future Group's Tasty treat and Bambino's Passta are other brands in the running. With the market still being in its nascent stage, there is lot of opportunity for differentiation. Nestle holds 70 per cent of the market share of the instant pasta industry. Even though ITC had an early run in the market, Nestle turned out to be the market leader.

ITC
ITC was founded on August 24, 1910 as Imperial Tobacco Company of India Limited and shares ancestry with Imperial Tobacco of the United Kingdom, but later it became fully independent, and was rechristened to India Tobacco Company in 1970 and then to I.T.C. Limited in 1974.The Company got rechristened as 'ITC Limited' after the full stops got removed with effect from September 18, 2001. ITC has a wide range of businesses.

ITC
FMCG

Hotels

Paperboards & Specialty Papers

Packaging

Agri-Business

Information Technology

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 company witnessed the beginnings of a corporate transformation that would usher in momentous changes during the Seventies. Now ITC is one of India's foremost private sector companies with a market capitalisation of over US $ 34 billion and a turnover of US $ 7 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine. It is also ranked among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study

conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITC has a diversified presence in FMCG (Fast Moving Consumer Goods), Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology. While ITC is an outstanding market leader in its traditional businesses of Hotels, Paperboards, Packaging, AgriExports and Cigarettes, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. With its headquarters located in Kolkata, the current chairman of ITC Limited is Mr Yogesh Chander Deveshwar. ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brandbuilding capabilities and effective supply chain management. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market".

The diversification timeline of ITC: In 1925, ITC's Packaging & Printing Business was set up as a backward integration for ITC's Cigarettes business. In 1975, the Company entered into Hotels business with the acquisition of a hotel in Chennai which was renamed as 'ITC-Welcomgroup Hotel Chola' (now renamed My Fortune, Chennai). 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 under four brands namely, ITC Hotels - Luxury Collection, WelcomHotels, Fortune Hotels and WelcomHeritage. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. 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). In 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. In 2000, ITC's unique and now widely acknowledged e-Choupal initiative began with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. Also, through the 'Choupal Pradarshan Khet' initiative, the agri services vertical has been focusing on improving productivity of crops while deepening relationship with the farming community. In 2000, ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women. 8

In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited. 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 - Banking Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG), Retail, Manufacturing, Engineering Services, Media & Entertainment, Travel, Hospitality, Life Sciences and Transportation & Logistics. In 2001, 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 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, Bhadrachalam Paperboards amalgamated with the Company and became a Division of the Company, Bhadrachalam Paperboards Division. Later that year, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. In 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). In 2002, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division. In 2002, ITC launched line of premium range of notebooks under brand Paperkraft. In 2002, The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear. In 2002, ITC also initiated a foray into the popular segment with its men's wear brand, John Players. 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). 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 and Aim. In 2003, the Classmate range of notebooks was launched. In 2003, Sunfeast was introduced in the market as the Company entered the biscuits segment. In 2003, ITC marked the manifestation of its partnership with the cottage sector as it forayed into the marketing of Agarbattis (incense sticks) in 2003. Mangaldeep is a highly established national brand and is available across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. In 2005, ITC entered the Personal Care Business. In seven years, the Personal Care portfolio has grown under 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel' and 'Superia' brands which have received encouraging consumer response and are also being progressively extended nationally. 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. In 2007, ITC entered the fast growing branded snacks category with Bingo. 9

In 2008, ITC positioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the 'Paperkraft' Brand. In 2010, ITC launched Sunfeast Yippee! to enter the Indian instant noodles market. In 2010, ITC launched its handrolled cigar, Armenteros, in the Indian market. Armenteros cigars are available exclusively at tobacco selling outlets in select hotels, fine dining restaurants and exclusive clubs.

COMPETITORS ANALYSIS

The Rs. 150 billion Indian biscuits market has grown at the rate of 12-14 percent year on year. It is the third largest market for biscuits in the world. Britannia is highest selling in terms of value, followed by Parle and ITC. Britannia and Parle together command a 75-78 percent market share, which three years ago was 82 percent before the entry of ITC. It is classified under two sectors: 1. Organized, 70% market share 2. Unorganized, 30%market share The biscuit market in India is extremely price sensitive. With Parle providing most of its biscuits in the range of Rs. 4.00-6.00, other players in the market can't think of increasing the prices. The onus now lies in the hands of brand managers to project their brands to capture a bigger market share. One factor on which smaller players like Bisk Farm, Priya Gold, etc., are leveraging is the "quality". Since most of the bigger players like Britannia and ITC outsource their manufacturing, there is difference in the quality of biscuits contrary to these firms who do the production in-house.

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Annual growth of Indian biscuit industry

Annual Growth(%)
16 15 15 14 14 13 13 12 11 10 10 9 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Annual Growth(%) 14 15

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Per capita consumption

Per Capita Consumption(Kg)

8 7 6 5 4 3 2 1 0 India South-East Asia USA European Countries 1.8 2.5 Consumption(kG) 5.5 7.5

There is a threat from the competitors and the aggressive strategies adopted by them. The major players are:-

BRITANNIA:
Britannia Industries Limited is an Indian food-products corporation based in Kolkata. It is famous for its Britannia and Tiger brands of biscuit, which are popular throughout India. Britannia has an estimated 32% market share. The Company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products . The company's factories have an annual capacity of 433,000 tonnes. The brand names of biscuits include VitaMarieGold, Tiger, Nutrichoice Junior,Good day, 50 50, Treat, Pure Magic, Milk Bikis, Good Morning, Bourbon, Thin Arrowroot, Nice, Little Hearts and many more. Britannia specialise in providing the challenging fat formulations demanded by the chocolate, ice cream, bakery, snack food and other industries. They are a relatively young company having a fresh approach, constantly striving to achieve higher standards of excellence particularly in customer service. Operated by a small close-knit team of people: scientists, technicians, marketing and production, all experts in their own fields, and all likeminded individuals whether it be setting successful strategies or conducting day-to-day operations.

Strengths:
Well defined and appealing advertisements highlighting the core value of energy and health. They have 6 power brands which contribute towards 80% of their sales. Well diversified portfolio of biscuits and innovative concepts of smaller size packets. Only biscuit company to have removed trans-fat from all its recipes, catering to a market with sensitive needs.

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Weaknesses:
Increase in input costs in putting pressure on the prices. Stiffer competition from other players in the segment.

PARLE:
Parle-G or Parle Glucose is a brand of biscuits manufactured by Parle Products in India. As of 2011, it is the largest selling brand of biscuits in the world according to Nilsen. Primarily eaten as a teatime snack, Parle-G is one of the oldest brand names in India. For decades, the product was instantly recognised by its iconic white and yellow wax paper wrapper with the depiction of a young girl on the front. Counterfeit companies have attempted to recreate and sell lower quality products of similar names with virtually identical package design The company's slogan is G means Genius. The name, "Parle-G", is derived from the name of the suburban rail station, Vile Parle which in turn is based on village Parle in olden days (there is also area called Irle nearby where the Parle Agro production factory is based). Parle-G has 70% market share in India in the glucose biscuit category followed by Britannia, Tiger (17-18%) and ITC's Sunfeast glucose (8-9%). The brand is estimated to be worth over Rs 2,000 crore (Rs 20 billion), and contributes more than 50 per cent of the company's. It also is popular across the world and is starting to sell in Western Europe and USA.

Strengths:
Brand image, one of the oldest in the country Well diversified product range. Extensive distribution system. Low and mid range prices catering to all segments of consumers.

Weaknesses:
Overdependence on Parle G brand. They have to rely more on retailers ad grocery stores to showcase their diversified product range rather than on individual advertisement of individual products. Declining market share Stiff competition by other players.

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Priya Gold:
Surya Food & Agro Ltd. was incorporated in November 1992 and commenced its commercial operations of manufacturing & selling of biscuits under brand Priyagold in October 1993. Over a period, it has established strong manufacturing capabilities and has invested substantially in developing consumer preference for its products. The company has capacity of producing upto 1,50,000 MT p.a., with strong brand building and distribution capabilities. Strengths: Glamorous and effective advertising. Extensive and varied portfolio of premium biscuits. Quality assurance. Big budget and willingness to invest in long term phases.

Weaknesses: Lacking to cater to the low-income segment. Inability to retain target consumers. Expensive product range. Competition from other biscuit players in the market.

OREO:
Oreo is a popular sandwich cookie made by the Nabisco division of Kraft Foods. Since its 1912 introduction, Oreo has become the best selling cookie in the United States, through the 20th century and into the 21st. It was first introduced in India in March 2011 under Cadbury, a major chocolate brand recently acquired by Kraft, with the tag line, it is the world's No. 1 biscuit. It is also available in local McDonald's restaurants as an addition to McFlurry ice cream. Before the launch of the brand in India, Britannia Industries launched a similar brand named Treat-o.

Strength:
Oreo has collaborated with McDonalds, Dominos and Baskin Robbins to promote its product Worlds No. 1 biscuit Very well-known brand name(Cadbury) Well established customer base

Weakness:
Nutritional problems, high fat content and calories Limited flavors and varieties 14

Market Share

Sales
1.6 4.4 7 Parle 15 40 Britania Sunfeast Priyagold Kraft Foods Others 32

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4Ps Marketing Mix

Product :
The snack foods offered by Sunfeast are:-

Sunfeast milky magic

Milky magic packed with goodness of milk is delicious, nutritious, crispy and crunchy.it is a perfect balance of energy that aids physical strength and mental ability. These biscuits strike the right balance of milk and wheat which helps in an all round development and nurturing of the child.

Sunfeast Marie Light

o Sunfeast Marie Original This ideal teatime biscuit is made from the finest quality wheat high in fibre and keeps one light and healthy through the day. o Sunfeast Marie Orange
It has the distinction of being one of the most successful innovative Marie biscuits and is liked by one and all.

o Sunfeast Marie Oats

The first of its kind in India, Sunfeast Marie Light Oats is enriched with the goodness of natural wheat fibre and soluble oats fibre.

o Sunfeast dark fantasy

It is the richest of chocolate vanilla biscuits. These biscuits are created using carefully chosen premium ingredients for a sensory experience unlike any other. Its a luxurious mix of aromatic cocoa and vanilla.

Sunfeast dark fantasy choco fills

It is the latest and the most premium offering from the portfolio of Sunfeast. It is an exquisite
combination of luscious chocolate filling enrobed within a perfectly baked rich cookie outer and it fully epitomizes the brand promise of "Pure Indulgence".

Sunfeast glucose
It is a wholesome & nutritious choice as these golden brown biscuits are made from the best
quality wheat and are ideal not just for kids but also adults.

Sunfeast dream cream

o Choco-vanilla and strawberry-vanilla flavours o Bourbon It is a special delight for all chocolate lovers. o Orange cream A tangy twist in biscuits can be experienced by every orange cream. o Butterscotch cream It provides the taste of butterscotch ice-cream in cream biscuit.

Sunfeast snacky
It is light and crispy. It is available in two variants classic salted and chilli flakes

Sunfeast sweet n salt

These thin and crisp biscuits come with a distinctive sundry taste that of salt and sweetness.

Sunfeast nice
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These are crisp coconut biscuits showered with sugar crystals.

Sunfeast special
o Special cookies o Special creams

Sunfeast pasta
o Sunfeast pasta treat It is a whole wheat based instant pasta introduced as a healthy snacking option for children and young adults. Initially Masala, Tomato Cheese, Cheese, Sour Cream flavours are introduced and later Pizza style, Chicken, Tangy Tomato are introduced.

Sunfeast Yippee!
Wheat is a key ingredient of the Yippee! Noodles. These noodles do not lump even 30 minutes after cooking. The two varieties of Yippee are Classic Masala and Magic Masala.

Price:
Sunfeast looked at a two-pronged strategy in pricing with their strategy being high margins in cream variants and volumes from the Marie and Glucose segments. In Glucose and Marie varieties, the companies have little choice in terms of pricing. As there is little differentiation in these varieties, consumers are extremely price sensitive. A former CEO of one of the major companies reportedly commented the biscuit consumer is willing to pay more only when he sees a clearly differentiated product. Hence companies have little choice in terms of pricing.

Place:
Distribution FMCG products have to essentially be available in the market at all given points of time and at all given points of purchase ,so the distribution channels are very important.ITC has a very strong distribution network for their cigarette brands and they are using this network for Sunfeast biscuits also. ITC uses FIFO method to reduce wastage of goods due expiry. They keep their goods on constant move from low sales area to high sales area. They collect the expired goods four times a year and destroy them.The benefits received by the retailers depend upon their sales volume and also the location of their shops. The company says the brand is now available in nearly 1.8 million outlets.

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FMCG companies maintain intense distribution network. Companies spend a large portion of their budget on maintaining distribution networks

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Promotion:
ITC has strong brand building capacity. ITCs promotion activities were : The brand was promoted by Television campaigns across National and Vernacular media that were distinct, highlighted the product attributes, quality and the newness. Well differentiated advertisements, some of which showed a complete cream world with cream rivers, cream mountains and cream trees, were targeted at kids watching cartoon channels. At the same time, on general entertainment channels, mothers received information on the importance of glucose, the wholeness of wheat. The company tied up with Bey Blades, the popular television series that was a rage among children. In August 2003, a month after its launch, the company undertook a major sampling exercise to promote the product. For two years from then , the brand did all the usual rounds- blocking television spots, booking that corner space in your favourite newspaper and so on. In a bid to reinforce its brand on kids, they covered more than 1000 schools across the country as part of its Sunfeast school programme. The objective was to build salience for the brand and familiarise the kids with the Sunfeast brand world and the Sunfeast mascot. In April 2005, Sunfeast launched its major campaign. shah rukh khan was its brand ambassador and the official sponsor of the WTA tennis championship titled the Sunfeast Open. They had teenage sensations Sania Mirza and Mahesh Bhupathi campaigning for it. For promotions in southern states, Sunfeast has signed Tamil super star Surya as a brand ambassador. Launch of Sachins Fit Kit,the first product co-created with bran ambassador. Sachin has shared his dietary regimen which has helped him to stay in top fitness for more than 17 years ,with the company and the product was developed taking inputs from the dietary regime.

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SALES & DISTRIBUTION

Successful value creation needs successful value delivery.

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Sales & Distribution System of ITC

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DISTRIBUTION NETWORK
Bangalore Calcutta Saharanpur Munger

GODOWNS

BRANCHES

WHOLESALE DISTRIBUTORS PER RANC

Information Goods

RETAILERS

SECONDARY WHOLESALERS

Grocery Stores

Super Markets

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DISTRIBUTION:
In this regard, sunfeast has been fortunate: Thanks to its tobacco business, ITC already has a good understanding of distribution channels. The company says that the brand is available in nearly 1.8 million outlets. ITC uses FIFO method to reduce the wastage of goods due to expiry. They also keep the good on constant move from low sales area to high sales area. The company collects all the expired goods four times a year and destroys them. ITC provides their retailers with racks, hangers to display the products. The benefits received by the retailers depend upon their sales volume and also the location of their sales. ITC has hired IMRB to do the market research.

In a nutshell, the distribution of ITC food products gives the following things:

1. Fast and effective 2. Flexibility 3. Quick reaction to the competitors 4. Strict compliance methods, low profit margins, intense competition and high customer service expectations.

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Segmentation Targeting & Positioning

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1. Sunfeast Bourbon
Category: - Biscuits Tagline/Slogan: - Spread the smile USP:- Thick, rich and delicious chocolate packed between two crunchy chocolate biscuits Segment:- Quality conscious children and adults Target:- All age groups middle and upper class people Positioning:- A special delight for all those chocolate lovers Strength:1.

Low cost

2. Good advertising and visibility 3. Good product quality and packaging Weakness:1. Limited target audience i.e. people who prefer chocolate Opportunities:1. Tie-up

with corporates/hotel chains

Threats:1. Severe

threat from wafer and salted snacks segment

2. Similar biscuit categories 3. Chocolates Competitors:1.

Parle Hide n Seek Britannia Bourbon

2. Cadbury
3.

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2. Sunfeast Dark Fantasy

Category:- Biscuits Tagline/Slogan:- Escape into one dark fantasy; Spread the smile USP:- Thick, rich and delicious chocolate packed between two crunchy chocolate biscuits Segment:- Quality conscious children and adults Target:- Youth from middle and upper class people Positioning:- Its a luxurious mix of aromatic cocoa and vanilla. Strength:1.

Low cost

2.Good advertising and visibility 3.Good product quality and packaging Weakness:1. Limited

target audience i.e. people who prefer chocolate

Opportunities:1.

Tie-up with corporates/hotel chains

Threats:1. Severe

threat from wafer and salted snacks segment

2.Similar biscuit categories 3.Chocolates Competitors:1.

Parle Hide n Seek

2. Cadbury 3. Britannia Bourbon

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3. Sunfeast Marie Light

Category:- Biscuits Tagline/Slogan:- Light Khaao Light Raho; Spread the smile USP:- Ideal teatime biscuit is made from the finest quality wheat high in fiber and keeps one light and healthy through the day Segment:- Taste and Quality conscious children and adults Target:- All age groups middle and upper class people Positioning:- Ideal tea time biscuit Strength:1. Low

cost

2.Good advertising and visibility 3.Good product quality and packaging 4.Celebrity brand ambassador Weakness:1. Many

competitors in this segment 2.Nothing unique

Opportunities:1.

Tie-up with corporates/hotel chains threat from wafer and salted snacks segment

Threats:1. Severe

2.Similar biscuit categories Competitors:1.

Parle G

2.Priya Gold

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4. Sunfeast Milky Magic

Category:- Biscuits Tagline/Slogan:- Spread the smile USP:- These biscuits strike the right balance of milk and wheat which helps in an all round development and nurturing of the child. Segment:- Children segment Target:- Young growing children Positioning:- It has perfect balance of energy that aids physical strength and mental ability Strength:1.

Low cost

2.Good advertising and visibility 3.Good product quality and packaging 4.Celebrity brand ambassador Weakness:1. Many

competitors in this segment

2.Nothing unique Opportunities:1. Tie-up

with schools as a part of meals

2. Untapped rural market Threats:1. Similar

biscuit categories

Competitors:1. Parle G 2. Britannia Tiger

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5. Sunfeast Dark Fantasy Choco Fills

Category:- Biscuits Tagline/Slogan:- Escape into one dark fantasy; Spread the smile USP:- An exquisite combination of luscious chocolate filling enrobed within a perfectly baked rich cookie outer. An offer that fully epitomizes the brand promise of "Pure Indulgence". Segment: - Quality conscious children and adults Target: - Youth from middle and upper class people Positioning:- Its a luxurious mix of aromatic cocoa and vanilla.

Strength:1. Low

cost

2. Good advertising and visibility 3. Good product quality and packaging Weakness:1.

Limited target audience i.e. people who prefer chocolate Tie-up with corporates/hotel chains

Opportunities:1.

Threats:1.

Severe threat from wafer and salted snacks segment

2. Similar biscuit categories 3. Chocolates Competitors:1.

Parle Hide n Seek

2. Cadbury 3. Britannia Bourbon 29

6. Sunfeast Glucose
Category:- Biscuits Tagline/Slogan:- Jab choti si bhookh kare pareshan, main wo hun jo laye muskan. Har bite mein muskan. USP:- Wholesome & nutritious choices as these golden brown biscuits are made from the best quality wheat. Ideal not just for kids but for adults too. Segment:- Taste and Quality conscious children and adults Target:- All age groups middle and upper class people Positioning:- Ideal tea time biscuit Strength:1.

Low cost

2.Good advertising and visibility 3.Good product quality and packaging 4.Celebrity brand ambassador Weakness:1.

Many competitors in this segment

2.Nothing unique Opportunities:1. Tie-up

with corporates/hotel chains

Threats:1.

Severe threat from wafer and salted snacks segment

2.Similar biscuit categories

Competitors:1.

Parle G 30

2.Priya Gold

7. Sunfeast Snacky
Category:- Biscuits

Tagline/Slogan:- Thodi Sharafat, Thodi Shararat USP:- Bigger than most others in the salted biscuit category, Snacky is light and crispy like no other. From kids to adults, its the quintessential Family Biscuit. Available in two variants, Classic salted and Chilli flakes - the very first of its kind in India. Segment: - Taste and Quality conscious children and adults Target:- All age groups middle and upper class people Positioning:- Ideal tea time biscuit Strength:1. Low

cost

2.Good advertising and visibility 3.Good product quality and packaging 4.Celebrity brand ambassador Weakness:- 1. Many competitors in this segment 2.Nothing unique Opportunities:1.

Tie-up with corporates/hotel chains

Threats:1.

Severe threat from wafer and salted snacks segment

2. Similar biscuit categories 31

Competitors:1.

Parle G

2.Priya Gold

8. Sunfeast Sweet & Salt

Category:- Biscuits Tagline/Slogan:- Kuchh Meethe Meethe Sapne, Kuch Namkeen Sach USP: - These thin and crisp biscuits come with a distinctive sundry taste, that of salt and sweetness. A bite into one of these one keeps wondering about its taste! Segment:- Taste and Quality conscious children and adults Target:- All age groups middle and upper class people Positioning:- Ideal tea time biscuit Strength:1.

Low cost

2.Good advertising and visibility 3.Good product quality and packaging 4.Celebrity brand ambassador Weakness:1. Many

competitors in this segment

2.Nothing unique Opportunities:1. Tie-up

with corporates/hotel chains

Threats:1. Severe

threat from wafer and salted snacks segment

2.Similar biscuit categories 32

Competitors:1.

Parle G

2.Priya Gold

9. Sunfeast Yippee Noodles

Category:- Food Products Tagline/Slogan:- The better noodles; Spread the smile USP:- Instant noodles with different tastes Segment:- People looking for a healthy snack when hungry Target:- Young people and children from upper and middle class Positioning:- Sunfeast Yippee noodles do not lump even 30 minutes after cooking Strength:1.

Good advertising and visibility

2. Good product distribution and availability 3. Lots of flavours and varieties available Weakness:1.

Media generated news about health issues

2. Brand loyalty of Maggi is tremendous Opportunities:1. Untapped

rural markets

2. DINKS, single professionals 3. Newer tastes Threats:1. Price

wars with other noodle brands 33

Competitors:1. 2. 3. 4. Maggi Top Ramen Foodles Tasty Treat

34

ANSOFF MODEL Current Products

1.Market

New Products
3. Product

Penetration (Intensive Growth)

Attract Users of Competitors Product. Introduction of combo packs at discounted price

Development (Intensive Growth)

Product Reformulation Sunfeast Marie Light Oats

Product line Extension Increase Product Usage. New usage like using Sunfeast Snacky Classic salted and Chilli flakes biscuit with different toppings. Relaunch of Sunfeast Dark Fantasy Cream Delight with new flavour

Current Market

New product development Sunfeast Marie Light Orange Dream cream with Butter scotch flavour Dark Fantasy Choco fills targeting premium segment

Increase the frequency of purchase. Making small packages available like sunfeast special at Rs.5 and Glucose biscuits at Rs.1

2. Market

Development (Intensive Growth)

Expand geographically Launched in the Middle East and Africa.

4. Diversification

Related Sunfeast Yippie Sunfeast Pasta

New Market

Integrative Growth
Backward Integration ------ Procurement of agricultural raw material from E-CHOUPAL.

35

RECOMMENDATIONS
Quality improvement and image advertising as compared to market leader The company can look at diversifying into the chocolates and candies segment as the name sunfeast resonates well with the kids. The premium and super premium segments according to industry experts are believed to be growing at around 30% annually. So sunfeast can come up with new varieties in premium segment. Sunfeast should provide better benefits to wholesalers and retailers as Nestle is providing higher margin to retailers to compete with.

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