Presentation on BY: SUCHORIT CHATTERJEE MBA 3rd SEM SITM
ITC Limited public conglomerate company headquarteredin Kolkata, India. Its turnover is $7 billion and a market capitalization of over $33 Billion. It started off as the Imperial Tobacco Company, and shares ancestrywith Imperial Tobacco of the United Kingdom, but it is now fully independent,and was rechristened to Indian Tobacco Company in 1970 and then to I.T.C.Limited in 1974 The company is currently headed by Yogesh Chander Deveshwar. Itemploys over 26,000 people at more than 60 locations across India and is listedon Forbes 2000. ITC has a diversified presence in Cigarettes, Hotels, Paperboards &Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery,Information Technology, Branded Apparel, Personal Care, Stationery, SafetyMatches and other FMCG products.
ITCs aspiration to be an exemplar in sustainability practices is manifest in its status as the only company in the world of its size and diversityto be carbon positive, water positive and solid waste recycling positive. ITCs businesses have created sustainable livelihoods for more than 5million people, a majority of whom represent the poorest in rural India. ITC was the first company in India to voluntarily seek a corporategovernance rating . ITCs Agri-Business is one of Indias largest exporters of agriculturalproducts. ITC is one of the countrys biggest foreign exchange earners (US $ 3.2billion in the last decade). As one of Indias most valuable and respected corporations, ITC is widelyperceived to be dedicatedly nation-oriented. The vision of the company is expressively captured in its corporate positioningstatement: "Enduring Value. For the Nation. For the Shareholder."
The company was founded as Wills, Watkins & Co. by Henry OvertonWills and his partner Watkins, who opened a shop in Castle Street, Bristol in1786. After the retirement of his partner in 1789, it became Wills & Co. In 1826 his two sons, William Day Wills and Henry Overton Wills tookover the company. In 1830, the company was renamed W.D. & H.O. Wills. In 1901 Sir William Henry Wills formed the Imperial TobaccoCompany from a merger of W.D. & H.O. Wills with seven other British tobaccocompanies ITC was incorporated on August 24, 1910 under the name ImperialTobacco Company of India Limited. As the Companys ownership progressivelyIndianised, the name of the Company was changed from Imperial TobaccoCompany of India Limited to India Tobacco Company Limited in 1970 andthen toI.T.C. Limited in 1974.
The primary objective of this study is to systematically explore thedeterminants responsible for the competitive advantage of ITC Limited and howITC developed new product lines in its foods business drawing on itscompetencies in brand-building, R&D, packaging, and distribution.However, market analysts were not sure whether ITC would achieve success inall the food categories that it had entered.• Why people are buying the products.• What all the things which influences them to buy• To understand how IT C has diversified themselves to a multi-productcorporation from a single product company
• Sustain ITCs position as one of Indias most valuable corporations ITC through world class performance, creating growingVISION value for the Indian economy and the Company’s stakeholders • To enhance the wealth generating capability of the ITC enterprise in a globalizing environment, delivering superiorMISSION and sustainable stakeholder value
FMCG Cigarettes Foods Personal Care Lifestyle Retailing, Education & Stationery Matches Incense Sticks Paper & Agri Information Hotels Packaging Technology Business
The Basic Concept used by ITC is:“PRICE IS SOMETHING WHICH CUSTOMER IS READY TO PAY FOR YOURPRODUCT” Pricing is an important strategic issue because it is related toproduct positioning. Furthermore, pricing affects other marketing mix elementssuch as product features, channel decisions, and promotion. While there is no single recipe to determine pricing, the following isa general sequence of steps that are followed for developing the pricing ofproduct:1. Develop marketing strategy - perform marketinganalysis, segmentation, targeting, and positioning. Methods Adopted: Box PlotMethod: i.e. Market Segmentation2. Make marketing mix decisions - define the product, distribution, andpromotional tactics.
ITC DistributionBuoyed by a strong distribution network ITC is likely to retain its market share inthe cigarettes business; the ban on advertisements is likely to work in favour of ITCthanks to the recall factor. MANUFACTURING HUB UNIT DISTRIBUTORS WHOLESALER RETAILERS SMALL RETAILRS MALLS
A particular budget is allocated for the promotion of the products,. The local promotionscheme is decided by the Area Sales Manages, it give itssuggestion to the District officeand that is forwarded to the Head Quarter inKolkata. In another promotional scheme for Biscuits a particular number of cases isgiven freely to the distributors according to the amount of sale they make, thiswas a drop down promotion i.e. of the number of free cases that a particulardistributors gets, off them acertain part is reserved for the retailers and customerif they buy a certain level of biscuit quantity