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IILM ACADEMY OF HIGHER LEARNING JAIPUR SHEFALI BHANDARI PGDM 12-14
INTRODUCTION ITC is an indian public conglomerate. Formed in: 1970. Turnover : $7 billion. Headquarters: kolkatta(west bengal) Listed in:forbes 2000. Number of employees:29000,over 60 locations across india. Chairman: Yogesh Chander Deveshwar
HISTORY….1910: established as imperial tabaccocompany of india ltd.1970: changed its name as indian tabaccocompany , then to I.T.C limited in 1974.1975:ITC launched its hotel business first timein chennai.1979: ITC entered the paper boardbusiness.(bhadrachalam paperboards ltd.)1985: set up surya tabacco co. in nepal.
Cont… 2000: a unique initiative was taken for upgrading the knowledge of farmers, stepped into greeting and stationery,and also launched retailing business in branded apparels. 2002: stepped into paperkrakt and also into confectonaries. 2003: launched notebooks under the brand “CLASSMATE”. 2005,2007,2008: introduce essenza di wills, fiama di wills and vivel respectively.
DIVERSIFIED bUSInESS OF ITC….FMCGHOTELSPAPER BOARDS AND PACKAGINGAGRI BUSINESS
ITC:- FMCG• FOODS• STATIONARY• CIGARATTES &CIGARS• SAFTEY MATCHES & AGARBATTIS• PERSONAL CARE PRODUCTS• LIFE STYLE RETAILING
ITC-cigarettes• The companies original business was traded in tobacoo.• Cigarettes accounts for 47% of the company’s turnover.• ITC Cigarettes itself responsible for 80% of its profits.• Its Goldflake tobacco brand is the largest fmcg brand in india –holding 70% of the tobacco market.• ITC cigarettes has been manufactured in the states of Bengaluru,Munger,Saharanpur, Kolkatta & Pune.
• Its highly popular brands include-india silk,classic,gold flake,silk cut,navy cut, bristol and flake etc.
Strategies of ITC cigarettesSingle minded focus on value creation of customers through :• Innovation• Product design• Manufacturing technology.• Quality• Marketing• DistributionIncreasing exportsFlavoured cigarettes
Sales and profits…• Itc sales has increased by 18% even after government imposes a ban.• ITC ‘s net cigarette sales was 52% in 2008 showed 3% increase in its sales.• Profits in 2008 has been increased to 736 crores from 651 crores.• In the quarter ended june 2012,profits rose to 20.49% to rs 1,899.81 crore from 1,576.69 crore .
Awards!!!2004:India’s first cigarette factory of kolkatta to getISO 9000 certificate & first among cigarette factoriesto get 14001 environment management systemscertificate.2005: “1ST National Security Today Award”,for bestmaintained fire saftey systems.2006: Innovative saftey management system tobangaluru factory,from institute of managers. “Sword of honour “ for bangaluru and saharanpurfactories.2007 &2008: Best manufacturer of cigarettes,bytobacco board based on previous 3 yearperformance.2008: Best exporter of cigarettes by tobacco board.
STRENGHTS WEAKNESS LARGEST MARKET PLAYER. ITC FMCG STILL DEPENDS UPON ITS TOBACCO REVENUES.POWERFUL BRANDS ACROSS SEGMENTS. DESPITE OF THE NEGATIVE CONNECTIONGOLD FLAKE HOLDS 70%OF THE MARKET OF TOBACCO WITH POOR HEALTH,IT IS SHARE. STILL USING ITS SAME NAME. THREATS OPPORTUNITIES DOMESTIC AND INTERNATIONAL MOVE INTO NEW AND EMERGING COMPETITION.MARKETS OF COUNTRIES LIKE EASTERN EUROPE,AFRICA ETC. VARIOUS BANS ON SMOKING.