TERM PAPER

OF

Product and brand management

On

ITC”S Brand portfolio

Submitted By Submitted To
Dinesh Kumar Mr.krishan gopal
Roll no :- RT1901B50

Regd. No :- 10901690

Class :- MBA-3 sem

Section :- T1901
 Lovely Professional University’
Punjab’

Acknowledgement

I would like to take this opportunity to express my

gratitude towards all those people who have helped
me in the successful completion of this term paper,
directly or indirectly. I would also like to express my
sincere gratitude towards Mr.krishan gopal (my
term paper guide) for her guidance and help which
she willingly provided at every step of my term
paper.

Dinesh Kumar
MBA-3nd Sem
Table of Content
1. INTRODUCTION
2. History of company
3. Objective
4. Brand structure of ITC
5. FMCG product portfolio
6. Salient feature of brand and product
7. Level of Strategies of ITC
8. Recommendation
9. CONCLUSION
10. Bibliography
 ITC

ITC is one of India's foremost private sector companies with a market

capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75 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, among India's Most
Respected Companies by Business World and among India's Most Valuable
Companies by Business Today. ITC also ranks among India's top 10 `Most
Valuable (Company) Brands', in a study conducted by Brand Finance and
published by the Economic Times.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards &
Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery,
Information Technology, Branded Apparel, Personal Care, Stationery, Safety
Matches and other FMCG products. While 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.
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". In his own
words: "ITC believes that its aspiration to create enduring value for the nation
provides the motive force to sustain growing shareholder value. ITC practices this
philosophy by not only driving each of its businesses towards international
competitiveness but by also consciously contributing to enhancing the
competitiveness of the larger value chain of which it is a part."
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 brand-building capabilities,
effective supply chain management and acknowledged service skills in hoteliering.
Over time, the strategic forays into new businesses are expected to garner a
significant share of these emerging high-growth markets in India.
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 $ 2.8
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. This transformational strategy, which
has already become the subject matter of a case study at Harvard Business School,
is expected to progressively create for ITC a huge rural distribution infrastructure,
significantly enhancing the Company's marketing reach.ITC's wholly owned
Information Technology subsidiary, ITC InfotechIndia Limited, is aggressively
pursuing emerging opportunities in providing end-to-endIT solutions, including e-
enabled services and business process outsourcing. ITC's production facilities and
hotels have won numerous national and international awards for quality,
productivity, safety and environment management systems. ITC was the first
company in India to voluntarily seek a corporate governance rating.
ITC employs over 21,000 people at more than 60 locations across
India. The Company continuously endeavors to enhance its wealth generating
capabilities in a globalizing environment to consistently reward more than 3,
73,000 shareholders, fulfill the aspirations of its stakeholders and meet societal
expectations. This over-arching vision of the company is expressively captured in
its corporate positioning statement: "Enduring Value. For the nation. For the
Shareholder."
HISTORY
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited. As the Company's ownership progressively Indianised,
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 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. 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. In 1985, ITC
set up Surya Tobacco Co. in Nepal 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
operatonal 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 ³Paperkraft´ was launched in
2002.
To augment its offering and to reach a wider student population, the popular range
of notebooks was launched under brand ³Classmate´in 2003. Classmate´ over the
years has grown to become India¶s largest notebook brandand 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
³Classmate´ 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 ³Paperkraft´ 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) andWills Clublife evening wear (2003).

Objectives
 Primary
To study the brand portfolio and brands and products feature of ITC
Company.

Secondary
To distinguish ITC’s brand and product.

ITC has a diversified presence in

Cigarettes
ITC is the market leader in cigarettes in india and has a wide range of popular
brands such as insignia india kings, classic,Gold W. D. & H. O. Wills, Gold Flake,
Navy Cut, Insignia, India Kings, Classic (Verve, Regular, Mild & Ultra Mild), Silk
Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike and Flake

Packaging : ITC packaging and printing business is the country’s ;argest convertor
of paperboard into packaging it was set up in 1925 as a strategic backward
integration for ITC cigarettes business it offers a variety of value added packaging
solutions for the food and beverage personal products cigarette liquor cellular
phone and IT packaging industries

· Hotels : ITC Welcomgroup Hotels, Palaces and Resorts is India's second largest
hotel chain with over 80 hotels. Based out of Hotels Division Headquarters at the
ITC Green Centre in Gurgaon, ITC Welcomgroup is also the exclusive franchisee
of The Luxury Collection brand.It entered the hotels business in 1975 with the
acquisition of a hotel in Chennai which was rechristened hotel chola . today itc
welcome group with over 70 hotels is one of the foremost hotel chains in india.

Paperboards
In 1979 itc entered the paper boards business by promoting itc bhadrachalam
paperboards .itc paperboards business has a manufacturing capacity of over
360000 tonnes per year and is a market leader in india across all caton consuming
segments.

Greeting,giftig and stationery

Itc stationery brands paper kraft and blassmate are widely distributed brands across
India the paper kraft designer stationery range consists of notepads and multi
subject notebooks in hard ,soft ccovers and multiple binding formats including
spirals wiros etc. itc greeting and gifting products include expressions range of
greeting cards and gifting products.

e-choupal:
The e-Choupal model of ITC has been very effective in tackling the challenges
posed by the unique features of Indian agriculture, characterised by fragmented
farms, weak infrastructure and the involvement of numerous intermediaries, among
others. ITC's e-Choupal won the Stockholm Challenge 2006 award is for using
information technology for the economic development of rural communities.

Agri Exports:
ITC's International Business Division (IBD) is the country's second largest
exporter of agri-products. ITC exports Feed Ingredients (Soyameal), Foodgrains
(Rice, Wheat, Pulses), Coffee & Spices, Edible Nuts, Marine Products, and
Processed Fruits.

Food:
ITC made its entry into the branded & packaged Foods business in August 2001
with the launch of the "Kitchens of India" brand. In 2002 it expanded into
Confectionery, Staples and Snack Foods segments. ITC's brand in Food category
include: Kitchens of India, Aashirvaad, Sunfeast, Mint-O, Candyman, and Bingo!.

Lifestyle Retailing:
ITC 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). In 2002, ITC entered into the
popular segment with its
men's wear brand, John Players. In 2005, ITC introduced Essenza Di Wills, an
exclusive line of prestige fragrance products.

Aggarbattis:
ITC has launched Mangaldeep brand of Aggarbattis with a wide range of
fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini,
Anushri, Ananth and Mogra. Mangaldeep is also being exported to USA, UAE,
Bahrain, Nepal, Singapore,
Malaysia, Oman and South Africa

Safety Matches:
ITC's brands of safety matches include iKno, Mangaldeep, VaxLit, Delite and
Aim. The Aim is the largest selling brand of Safety Matches in India.ITC also
exports premium
brands to markets such as Europe, Africa and the USA.

ITC has a strong presence in:

· Foods business (Kitchens of India; Ashirvaad; Minto; Sunfeast; Candyman;
Bingo brands in Ready to Eat, Staples, Biscuits, Confectionery and Snack Foods);
· Apparel business (Wills Lifestyle and John Players brands);
· Personal Care Products business(Fiama di Wills; Vivel; Essenza di Wills;

Superia brands of products in perfumes, haircare and skincare)

· Stationery (Classmate and Paperkraft brands)
· Safety Matches and Agarbattis [Ship (through ownership of WIMCO);
iKno; Mangaldeep; Aim brands]

Other businesses include:

· Paperboard, Specialty Paper, Graphic and other Paper;
· Packaging and Printing for diverse international and Indian clientele.
· InfoTech (through its near-wholly owned subsidiary ITC InfoTech India
Limited which is a SEI CMM Level 5 company)
Rural initiatives
ITC's Agri-Business is India's second largest exporter of agricultural products. ITC
is one of the India's biggest foreign exchange earners (US $ 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. This transformational strategy, which has already
become the subject matter of a case study at Harvard Business School, is
expected to progressively create for ITC a huge rural distribution infrastructure,
significantly enhancing the Company's marketing reach.
The company places computers with Internet access in rural farming villages; the
e-Choupals serve as both a social gathering place for exchange of information
(choupal means gathering place in Hindi) and an e-commerce hub. What began as
an effort to re-engineer the procurement process for soy, tobacco, wheat, shrimp,
and other cropping systems in rural India has also created a highly profitable
distribution and product design channel for the company—an ecommerce
platform that is also a low-cost fulfillment system focused on the needs of rural
India. The e-Choupal system has also catalyzed rural transformation that is helping
to alleviate rural isolation, create more transparency for farmers, and improve their
productivity and incomes.

Corporate philanthropy
ITC Echoupal creatively leverages information technology to set up a meta-market
in favour of India's small and poor farmers, who would otherwise continue to
operate and transact in 'unevolved' markets. As of July 2010, services through 6500
Echoupal across 10 states, reach more than 4 million farmers in about 40,000
villages. Free access to Internet is also opening windows of rural India
to the world at large. ITC eChoupal e-choupal is now being regarded as a reliable
delivery mechanism for resource development initiatives. Its potential is being
tested through pilot projects in healthcare, educational services, water management
and cattle health management with the help of several service providers including
non-governmental organizations. When Classmate notebooks were launched, it
came up with the initiative of contributing 1 rupee towards the education of poor
children,from every single notebook it sold
 FMCG PRODUCTS

1.CIGARETTES
2.FOODS
3. LIFESTYLE RETAILING
4. PERSONAL CASE
5. EDUCATION AND
ATATIONARY
6. SAFETY MATCHES
7. AGARBATTIS
CIGARRATES:
segment of the market. It's highly popular portfolio of brands includes Insignia
,India Kings, Classic ITC is the market leader in cigarettes in India. With its wide
range of invaluable brands, it has a leadership position in every, Gold Flake, Silk
Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.
STATIONERY PRODUCTS:
ITC's Classmate range of stationery, created to inspire young minds is creating a
buzz in classrooms with over 300 variants: Notebooks, Graph Books, Drawing
Books, Practical Notebooks, Reminder Pads and more. Attractively designed,
featuring jokes, general knowledge nuggets and more, Classmate notebooks are the
prized possessions of school kids eager to explore their potential. Classmate even
provides personalized stationery with school emblems.

AGARBATTIS AND SAFETY MATCHES

As part of ITC's business strategy of creating multiple drivers of growth in the
FMCG sector, the Company commenced marketing Agarbattis (Incense Sticks)
sourced from small-scale and cottage units in 2003. Mangaldeep Agarbattis are
available in a wide range of fragrances like Rose, Jasmine, Bouquet, Sandalwood,
Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra. As part of its strategic
initiative to create multiple drivers of growth in the FMCG sector, ITC commenced
marketing safety matches sourced from the small-scale sector. The Matches
business leverages the core strengths of ITC in marketing and distribution, brand
building, supply chain management and paperboard & packaging to offer Indian
consumers high quality safety matches. ITC¶s range of Safety matches include
popular brands like i Kno, Mangaldeep, Aim, Aim Mega and Aim Metro. With
differentiated product features and innovative value additions, these brands
effectively address the needs of different consumer segments.
The Aim brand is the largest selling brand of Safety Matches in India.

RE
ADY TO EAT FOODS:
Let your kids dig into ITC's tasty Sunfeast biscuits. And watch the smile spread as
they demolish wholesome delights like Butterscotch Cream, Orange Marie,
Bourbon and Orange Cream. Milky Magic, made with cow's milk, gives them high
energy, stamina and health; while the Jagmag 'flavour bursts' of the Strawberry and
Pineapple Cream biscuits melt in their mouths. ITC's Sunfeast is a brand driven by
innovative product development at ITC's state-of-the-art food technology centre in
Bengaluru. Every Sunfeast product is made with utmost care, ensuring world class
standards of hygiene. Sunfeast symbolises ITC's commitment to create brands that
enrich the quality of life for every Indian. Because our people and our country
deserve the best. ITC in March launched it's ready-to-eat snacks 'Bingo' to mark it's
entry into the Rs 2,000 crore fast-moving branded snacks market. As usual the
company has backed the launch by a well designed ad campaign and the taste and
variants of the product are based on extensive research on tastes of consumers .
The launch of Bingo represents ITC Foods' fifth major line of foods business after
Staples, Biscuits, Ready-to-Eat and Confectionery businesses.

LIFESTYLE RETAILING:
ITC's Lifestyle Retailing Business Division has established a nationwide retailing
presence through itsWills Lifestyle chain of exclusive specialty stores. Wills
Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work
wear, Wills Sport relaxed wear, Wills Clublife evening wear, fashion accessories
and Essenza Di Wills - an exclusive range of fine fragrances and bath & body care
products and Fiama Di Wills - a range of premium shampoos and shower gels.
Wills Lifestyle has also introduced Wills Signature designer wear, designed by the
leading designers of the country.

PAPERBOARDS AND SPECIALITY PAPERS:

ITC's Paperboards and Specialty Papers Division is India's largest, technologically
advanced and most eco-friendly, paper and paperboards business. The business
caters to a wide spectrum of packaging, graphic, communication, writing, printing
and specialty paper requirements through its four world-class manufacturing units,
6 sales offices and a network of more than 50 dealers in India, along with an
international trade network of 15 distributors / agents

PERSONAL CARE PRODUCTS:

In line with ITC's aspiration to be India's premier FMCG company, recognized for
its world-class quality and enduring consumer trust ITC forayed into the Personal
Care business in July 2005. In the short period since its entry, ITC has already
launched an array of brands, each of which offers a unique and superior value
proposition to discerning consumers. Anchored on extensive consumer research
and product development, ITC's personal care portfolio brings world-class
products with clearly differentiated benefits to quality-seeking consumers. ITC's
Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di
Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging
consumer response and is being progressively extended nationally. ITC launched
Fiama Di Wills, a premium range of shampoos today, following the success of
Essenza Di Wills, its exclusive range of fine fragrances and super premium
personal care products. Fiama Di Wills continues ITC¶s tradition of bringing world
class products to the Indian consumer.

ITC FOODS-

ITC made its entry into the branded & packaged Foods business in August 2001
with the launch of theKitchens of India brand. A more broad-based entry has been
made since June 2002 with brand launches in the Confectionery, Staples and Snack
Foods segments.The packaged foods business is an ideal avenue to leverage ITC's
proven strengths in the areas of hospitality and branded cuisine, contemporary
packaging and sourcing of agricultural commodities. ITC's world famous
restaurants like the Bukhara and the Dum Pukht, nurtured by the Company's Hotels
business, demonstrate that ITC has a deep understanding of the Indian palate and
the expertise required to translate this knowledge into delightful dining experiences
for the consumer.
ITC has stood for quality products for over 100 years to the Indian consumer and
several of its brands are today internationally benchmarked for quality.
The Foods business is today represented in 4 categories in the market. These are:

Ready To Eat Foods

Staples
Confectionery
Snack Foods

Some of which are-

 Kitchens of India pickles, masalas, curry pastes, ready made foods
Aashirvaad ± atta, salt, paste, chilli powders

 Sunfeast ± biscuits, cakes, pasta

 mint-o ± toffees ( ³minto fresh khao laila majnu ko patao´)
 Candyman ± eclairs, fruity, different flavours
 Bingo! ± chips and snacks
 Salient feature of ITC’s Brands and product
What factors are important in building brand value?
Professor David Jobber identifies seven main factors in building successful brands,
as illustrated in the diagram below:
Quality
Quality is a vital ingredient of a good brand. Remember the “core benefits” – the
things consumers expect. These must be delivered well, consistently. The branded
washing machine that leaks, or the training shoe that often falls apart when wet
will never develop brand equity. Research confirms that, statistically, higher
quality brands achieve a higher market share and higher profitability that their
inferior competitors.

Positioning
Positioning is about the position a brand occupies in a market in the minds of
consumers. Strong brands have a clear, often unique position in the target market.
Positioning can be achieved through several means, including brand name, image,
service standards, product guarantees, packaging and the way in which it is
delivered. In fact, successful positioning usually requires a combination of these
things.

Repositioning
Repositioning occurs when a brand tries to change its market position to reflect a
change in consumer’s tastes. This is often required when a brand has become tired,
perhaps because its original market has matured or has gone into decline.
The repositioning of the Lucozade brand from a sweet drink for children to a
leading sports drink is one example. Another would be the changing styles of
entertainers with above-average longevity such as Kylie Minogue and Cliff
Richard.

Communications
Communications also play a key role in building a successful brand. We suggested
that brand positioning is essentially about customer perceptions – with the
objective to build a clearly defined position in the minds of the target audience. All
elements of the promotional mix need to be used to develop and sustain customer
perceptions. Initially, the challenge is to build awareness, then to develop the brand
personality and reinforce the perception.

First-mover advantage
Business strategists often talk about first-mover advantage. In terms of brand
development, by “first-mover” they mean that it is possible for the first successful
brand in a market to create a clear positioning in the minds of target customers
before the competition enters the market. There is plenty of evidence to support
this. Think of some leading consumer product brands like Gillette, Coca Cola and
Sellotape that, in many ways, defined the markets they operate in and continue to
lead. However, being first into a market does not necessarily guarantee long-term
success. Competitors – drawn to the high growth and profit potential demonstrated
by the “market-mover” – will enter the market and copy the best elements of the
leader’s brand (a good example is the way that Body Shop developed the “ethical”
personal care market but were soon facing stiff competition from the major high
street cosmetics retailers.

Long-term perspective
This leads onto another important factor in brand-building: the need to invest in the
brand over the long-term. Building customer awareness, communicating the
brand’s message and creating customer loyalty takes time. This means that
management must “invest” in a brand, perhaps at the expense of short-term
profitability.

Internal marketing
Finally, management should ensure that the brand is marketed “internally” as well
as externally. By this we mean that the whole business should understand the brand
values and positioning. This is particularly important in service businesses where a
critical part of the brand value is the type and quality of service that a customer
receives.Think of the brands that you value in the restaurant, hotel and retail
sectors. It is likely that your favourite brands invest heavily in staff training so that
the face-to-face contact that you have with the brand helps secure your loyalty.
Loyalty-
the loyalty of customers towards itc brands is play important role in building its
strong image in the mind of customer. Customer has become so loyal towards
brand and they can spend money on product without thinking about quality
of product.

Attachment
Customer has attached with company and its product .the huge variety of products
and good brand image in the mind of consumer help it to build a strong
relationship with customer

Credibility
Customer has also become credible towards itc’s brand and product they use its
product for long time and use again and again .the long life and superior design has
helped company to build a long term credibility with customer

Security
ITC has approved its product with health department of india .which
provide full security to customer and users .this lead to increase sale of
product and its good brand image
LEVELS OF STRATEGIC MANAGEMENT

The strategic can be broadly divided into three levels they are as follows

1. Corporate strategy
2. Business strategy
3. Functional strategy

The above three levels can be diagrametically rapresent are as follows,

 CORPORATE STRATEGY:[CEO,MD]
ITCs corporate strategies are :
 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.

 Create multiple drivers of growth by developing a portfolio of world class

businesses that best matches organizational 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 organization by nurturing talented
and focused top management teams for each of the businesses.

 Continuously strengthen and refine Corporate Governance processes and

systems to catalyze the entrepreneurial energies of management by striking
the golden balance between executive freedom and the need for effective
control and accountability.

 Business strategy:[HOD]
FUTURE BUSINESS STRATEGY OF ITC ARE-
 No new investments in cigarettes
 New ventures in agri business
 Use the distribution network to reach rural areas
 Tie ups and acquisitions to boost IT business
 Increased exports
 Cut down prices in the biscuit domain
 Introduce low fat chips in respect of ITC foods

Hr strategies-
 Employee training
 Self-managing teams
 Pay for performance

 FUNCTIONAL STRATEGY:
[SUPERVISORS,WORKERS,STAFFS]
 The functional strategies of ITC are- Marketing and efficiency in respect of-
 Promotion
 Advertising
 Pricing
 Distribution
 Product design
 Production and efficiency in respect of-
 Economies of scale
 Flexible manufacturing
 This strategy were encouraged by PETER DRUCKER in his theory of
Management By Objectives(MBO)

Recommendations:
a. According to the survey conducted and after analyzing the Price, Promotion,
Place and Product of the ITC and the consumer behavior in the market the
company can
implement the following measure for increasing the sales and volume of their
products.

b. Advertisement for the Aashirvaad atta is found to be ineffective and infrequent.

So,the company can come up with an aggressive advertisement to attract the
Indianhousewife as they are found to be the decision maker in the buying of Atta.

c. The company can come up the concept of forming a Retail chain of Food
products across all over India as it is follows the marketing strategy of Umbrella
branding.In
such retail chains all the food division products can be sold at the discounted rate,
as more and more products are coming under the Umbrella products likefood
processing.

d. The branded atta can be exported to other countries where we are currently
exporting the whole wheat.

e. The company can approach the government or distributing their products in

Military canteens and can sell them to organization that provides the afternoon
meals to the children as a part of mid-day meal scheme.

f. Precision analysis of products in Food Business.

g. Process optimization for product development in Food Business.

h. Impact of measures for reduction of energy consumption and consequent impact

on the cost of production of goods.
CONCLUSION:
 ITC promoting their brands through advertisement campaign as well as door
to door promotion.
 ITC is also focusing on Retailers and Wholesalers to promote their brand.
 The demand of their product in very low, because people don¶t know about
their brands very well.
 ITC knows their strength and weakness in the personal care market, so they
are applying new concept to overcome their weaknesses.
 ITC now offering more margins, exiting offers and long credit period to
retailers and wholesalers.

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