Your SlideShare is downloading. ×
ITC MARKETING STRATEGIES
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

ITC MARKETING STRATEGIES

2,546
views

Published on

ITC MARKETING STRATEGIES AND THERE POSITIONING

ITC MARKETING STRATEGIES AND THERE POSITIONING


0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,546
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
331
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. By: MANISH POOJA NEHA NINAD GIRISH …ENDURING VALUES
  • 2. Chairperson : Y C Deveshwar Directors : S S H Rehman, Nakul Anand, A Singh, PV Dhobale, K Vaidyanath, K N Grant, A Baijal, B Vijayaraghavan J P Daly, H G Powell, P B Ramanujan, B Sen, R S Tarneja, CEO, Yogesh Chander Deveshwar
  • 3. HISTORY  ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited.  Name changed from Imperial to Indian tobacco comapany in the year 1970 then to ITC limited in the year 1974.  One of the 8 Indian Companies to feature in ‘Forbes A-list’ for 2004  Only Indian FMCG Company to feature in Forbes 2000 List  Among top in :  Sustained value creation (BT-Stern Stewart survey)  Operating profits  Cash Profits  Ranks No. 4 among Indian listed Private Sector Companies by market cap. (@ April 09)  No. 1 in FMCG Sector  Rated as one of India’s Most Respected Companies (IMRB-Businessworld Survey 2006)  Diversified conglomerate with interests ranging from Tobacco to Hospitality
  • 4. INDIAN TOBACCO COMPANY  24 Aug1910 – ITC incorporated under the name of 'Imperial Tobacco Company of India Limited'.  1925– ITC’s Packaging & Printing Business Division was set up as a strategic backward integration for ITC’s Cigarettes business.  1974 – The Company's ownership progressively Indianised, and the name of the Company was changed to ITC Limited (Indian tobacco company).  1975 – The Co. launched its HOTEL BUSINESS which was named ‘ITC-Welcomgroup Hotel Chola’.  1979 – ITC entered the Paperboards Business by promoting. ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India.
  • 5. CIGARETTES 6  Market leader in India.  Highly portfolio of brands includes Insignia, India kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.
  • 6. WHY HOTELS AND TOURISM????? ITC. Touching your life. Everyday
  • 7. BRAND CATEGORY POSITIONING ITC HOTEL LUXURY COLLECTION MANSION OF LUXURY WELCOME HOTEL SHERATON UPPER UP SCALE PASSION FOR QUALITY FORTUNE HOTEL UPSCALE - MIDSCALE PROMISE OF TRUE VALUE WELCOME HERITAGE HERITAGE UNIQUE EXPERIENCES
  • 8. WHY FMCG?????  Entering the foods business was itself a strategic decision for ITC.  ITC‟s core business, tobacco, was under pressure owing to several factors like government bans on advertising and on smoking in public places.  Hikes in the excise duty for cigarettes, and anti tobacco campaigns, ITC planned to deploy its surplus in the packaged food business where it saw huge business potential.
  • 9. FMCG PRODUCTS
  • 10. 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 5545 7012 Rs. crs Rapid share of FMCG business 20 563 1013 1704 2511 3014 3642 4482
  • 11. MARKETING STRATEGIES  DISTRIBUTION NETWORK • Huge distribution network due to its tobacco business. • Today, ITC‟s Bingo and Sunfeast are available at nearly 1.8 million outlets whereas Parle is available at only 1.5 million outlets.
  • 12. Market differentiation  In Biscuits also, ITC launched differentiated products in each and every segment. For e.g. it introduced an Orange Marie, a butterscotch cream biscuit, chilli flakes in a biscuit and even honey flavor under the Sunfeast brand.  In March 2005, ITC Foods launched Sunfeast Pasta, a whole wheat based product targeted at children. It was expected to compete with products like Nestle‟s Maggie noodles. With this strategy ITC built for itself new markets.
  • 13. Cost control strategy  ITC realized that they have to offer products at a price which is either equal or less than what the competitors are offering.  ITC‟s printing and packaging business provided high-quality, cost-effective, and innovative packaging.  ITC also enjoyed cost advantages over its competitors owing to its electronic procurement system called e-Choupal.
  • 14. Diversification of products  Bingo, ITC has come up with 21 flavors in comparison to its competitor „Lays‟ of „Frito Lay‟ which has only 4 major flavors. Extensive advertising  They hired the best professionals and the best ambassadors in the country to make their products famous.  The tagline "Jab Laila ko karna tha impress to majnu ne khayi mint o fresh" has stood the test of times and is still widely known and remembered.  10 to 15 spots per channel per day on youth channels such as MTV and Star World, mass Hindi channels like Zee and Star TV, and news 19 channels. It also had around 20 spots on a variety of radio channels and advertised in most leading national dailies.  Top-30 cities, over 1,000 outdoor hoardings advertised the product.  ITC spent close to Rs 100 crore on marketing.
  • 15. Regular introduction of new products  ITC has been expanding its distribution network aggressively and also their product range.  In biscuits and wafers range, it is launching new products or flavors week after week. Innovation  ITC was innovative in identifying the market or niche for all its products.
  • 16. AGRO BASED INDUSTRY
  • 17. o Basic components of ITC are from the agricultural sector. o Cost reduction strategy. o Direct raw material without involvement of third party. o Direct touch with farmers.
  • 18. ITC e-Choupal  Started in the year 2000  Target Area so far 38,000 villages, 6500 kiosks, 9 states  Wholly owned by ITC Why it become a success ?  Only initiative to attempt to combine Services and an Effective Business Model successfully Designed to address the issues such as: 1. Fragmented farms 2. Weak institutions 3. Involvement of intermediaries 4. Information Asymmetry
  • 19. A win-win Deal Farmers gain • Better information Content • Better info timing • Less transportation Cost • Transaction duration • Weighing accuracy • Professionalism ITC gains • Disintermediation savings • Freight costs • Quality control • Risk management
  • 20. Transaction cost in Mandi Chain (before e-Choupal)
  • 21. Transaction cost in Mandi Chain (after e-Choupal)
  • 22. SWOT ANALYSIS Strength •Cigarette market is 22,000 cr and ITC has lion’s share in it •Strong brand recognition and product portfolio •Distribution network •Management Weakness •Dependence on tobacco revenues • Negative Connection of Tobacco Opportunity •Consumption Of personal care products •Rural Market •E-Choupal • Filter cigarette segment of less than 60mm size Threat •Competition both Domestic & International •Increasing Tax on cigarettes •Excise duty on unfiltered cigarettes less than 60mm in length was increased 387% last year •Hike was 142% for those between 61mm and 70mm long. •Regulatory restrictions on cigarettes •Ban on smoking
  • 23. ITC. Touching your life. Everyday
  • 24. SOMETIMES, NOT TAKING RISK IS THE BIGGEST RISK … YC Deveshwar… Y C Deveshwar
  • 25. THANK YOU
  • 26. ITC. Touching your life. Everyday