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ITC LIMITED <ul><ul><li>Mariam Khan  PGPM- Business Strategy   </li></ul></ul>
 
Introduction <ul><li>Type:  Public (BSE:ITC) </li></ul><ul><li>Founded:  24 August 1910 Radha Bazar Lane, Kolkata, India <...
<ul><li>“ From a leading cigarette manufacturer to an umbrella group that offers a diversified product mix” </li></ul><ul>...
 
 
 
BCG MATRIX FOR ITC LTD - <ul><li>Dogs  </li></ul><ul><li>Maybe ITC InfoTech. </li></ul><ul><li>Cows </li></ul><ul><li>FMCG...
ITC PRODUCTS <ul><li>FMCG-FOOD </li></ul><ul><li>Packaged Food  </li></ul><ul><li>Snack & confectionery   </li></ul>
Indian Packaged Food industry <ul><li>With improving living standards, Indian consumers are now becoming  more Hygiene and...
Snacks and Confectionery Industry <ul><li>The Snacks and confectionery market is equally divided into the organised and un...
FMCG –FOODS
Sales & Market Growth   Market  for Biscuits   11% 10% 33% 15% 31% Sunfeast Others  Parle  Priya Gold  Britannia
Promotion  <ul><li>Direct marketing :-  Sign boards, posters at shops on point of sale </li></ul><ul><li>Sales force </li>...
Positioning of ITC F A R M E R S M A R K E T S Cigarette Trade Marketing capability Branded Foods Expanded FMCG distributi...
Targeting <ul><li>Bingo –Snacks   </li></ul><ul><li>The has flavors such as Masala Chaas, Chatpata Nimbu and Paneer Tikka,...
Various marketing  strategies - <ul><li>The Company is planning to double its distribution and its advertisement budget to...
Organizational Structure for FMCG Foods
Important factors FOOD MARGINS CREDIT SYSTEMS STOCK OUTS WASTAGES PROMOTIONS  DISTRIBUTION CHANNELS
<ul><li>Strict compliance standards, low profit margins, intense competition, high customer-service expectations. </li></u...
Flow  Diagram FACTORY CNF WHOLESALE DISTRIBUTOR WHOLESALE DEALER BASE RETAILER
ITC. Touching your life. Everyday Places
 
e-Choupal <ul><li>To Tackle Challenges </li></ul><ul><li>Fragmented farms </li></ul><ul><li>Weak infrastructure </li></ul>...
Outbound Logistics Display & Inspection Auction Bagging & weighing Payment Pricing Mandi Inspection & Grading Inbound Logi...
Business Model
The e-Choupal Services <ul><li>Information </li></ul><ul><li>Knowledge </li></ul><ul><li>Purchase-choupal saagar </li></ul...
<ul><li>Distribution Challenges </li></ul><ul><li>first time internet users </li></ul><ul><li>infrastructural inadequacies...
Over Coming Challenges Through   <ul><li>Trustmanship </li></ul><ul><li>Creating Goodwill </li></ul>
NEW PRODUCTS LAUNCHED-2008-09 Paperkraft Copier Paper  Classmate Invento Classmate Pencils Classmate Pens Mangaldeep Durba...
<ul><li>No Questions  </li></ul><ul><li>Thank you ..  </li></ul>
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Itc

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  1. 1. ITC LIMITED <ul><ul><li>Mariam Khan PGPM- Business Strategy </li></ul></ul>
  2. 3. Introduction <ul><li>Type: Public (BSE:ITC) </li></ul><ul><li>Founded: 24 August 1910 Radha Bazar Lane, Kolkata, India </li></ul><ul><li>Headquarters: Kolkata, India </li></ul><ul><li>Key people: Yogesh Chander Deveshwar, Chairman K. Vaidyanath, Director, Partho Chatterjee, CFO </li></ul><ul><li>Industry: Tobacco, foods, hotels, stationery, greeting cards </li></ul><ul><li>Products: Cigarettes, packaged food, hotels, apparel </li></ul><ul><li>Employees: over 25,000 (2009) </li></ul><ul><li>Website: http://www.itcportal.com/ </li></ul><ul><li>Forbes Global 2000 List: 987 rank (2009) </li></ul><ul><ul><li>Sales (Rs.crore): 15388.11 </li></ul></ul><ul><ul><li>Profits (Rs. million): 32636 </li></ul></ul><ul><ul><li>Market Value($ billion): 13.48 </li></ul></ul>
  3. 4. <ul><li>“ From a leading cigarette manufacturer to an umbrella group that offers a diversified product mix” </li></ul><ul><li>ITC's diversification into related and unrelated areas in recent years </li></ul><ul><li>Why they did this ? </li></ul><ul><li>Huge Impostion of Govt. on Cigarette Market </li></ul><ul><li>To reduce dependence on cigarette business </li></ul><ul><li>How they did ? </li></ul><ul><li>The Company’s relentless efforts to create value through International quality products. </li></ul><ul><li>Significant investments in technology and product development </li></ul><ul><li>Strong portfolio of brands have enabled it to maintain its leadership position in terms of market standing and share. </li></ul><ul><li>Customization of product </li></ul><ul><li>Brand image enhancement </li></ul>
  4. 8. BCG MATRIX FOR ITC LTD - <ul><li>Dogs </li></ul><ul><li>Maybe ITC InfoTech. </li></ul><ul><li>Cows </li></ul><ul><li>FMCG-Cigarettes </li></ul><ul><li>? </li></ul><ul><li>FMCG- Foods </li></ul><ul><li>Stars </li></ul><ul><li>Hotels </li></ul><ul><li>Paperboards/ Packaging. </li></ul><ul><li>Agri business. </li></ul>
  5. 9. ITC PRODUCTS <ul><li>FMCG-FOOD </li></ul><ul><li>Packaged Food </li></ul><ul><li>Snack & confectionery </li></ul>
  6. 10. Indian Packaged Food industry <ul><li>With improving living standards, Indian consumers are now becoming more Hygiene and health-conscious </li></ul><ul><li>Demand for neat and tidy packaged branded food in India. </li></ul><ul><li>The increasing number of working women and fast pace of life change social structure has driven the demand of packaged branded food. </li></ul><ul><li>Changing life style, the consumers now look for ways to reduce cooking time. </li></ul><ul><li>Processed food output in India is likely to grow by 44.2% to touch US$ 90.1 billion, while packaged food sales will increase by 67.5% to reachUS$ 21.7 bn by 2012 </li></ul>
  7. 11. Snacks and Confectionery Industry <ul><li>The Snacks and confectionery market is equally divided into the organised and unorganised sector. </li></ul><ul><li>The market size is estimated to the tune of US$3bn. </li></ul><ul><li>The organised sector of the snack food market is growing at 15-20 % per year </li></ul><ul><li>While the growth rate of unorganised sector is 7-8 per cent and the market </li></ul><ul><li>Size is estimated to be worth of US$ 1.56 bn. </li></ul>
  8. 12. FMCG –FOODS
  9. 13. Sales & Market Growth Market for Biscuits 11% 10% 33% 15% 31% Sunfeast Others Parle Priya Gold Britannia
  10. 14. Promotion <ul><li>Direct marketing :- Sign boards, posters at shops on point of sale </li></ul><ul><li>Sales force </li></ul><ul><li>ITC has just packed a classic punch (Jazz, Blues, Rocks) </li></ul><ul><li>Interaction with customers in form of Competitions </li></ul>ITC. Touching your life. Everyday
  11. 15. Positioning of ITC F A R M E R S M A R K E T S Cigarette Trade Marketing capability Branded Foods Expanded FMCG distribution capability e-choupal rural two-way fulfillment capability A basis for strategic partnerships with other FMCG brand owners VPN providing SCM, ERP & CRM capability Lifestyle retailing Education Stationery Matches & Agarbattis Personal Care Products
  12. 16. Targeting <ul><li>Bingo –Snacks </li></ul><ul><li>The has flavors such as Masala Chaas, Chatpata Nimbu and Paneer Tikka, it has variants with truly Indian flavors. </li></ul><ul><li>The segmentation was mainly done on basis of the age of the people. The primary target for Bingo is 18-30 year old people, who are willing to try out new flavors more easily than the small kids. </li></ul><ul><li>Bingo is positioned as a youthful and innovative snack. </li></ul><ul><li>KOI – READY-TO-EAT CATEGORY) targeted at </li></ul><ul><li>Tourists </li></ul><ul><li>Consumers who order at Home </li></ul><ul><li>NRIs US/ canada Makets –Availabilty in more than 4500 stores </li></ul><ul><li>Women in age group 25 plus </li></ul><ul><li>Sunfeast Pasta Treat </li></ul><ul><li>Targeted towards children as Healthy snack </li></ul><ul><li>Youngsters as Fun Food </li></ul>
  13. 17. Various marketing strategies - <ul><li>The Company is planning to double its distribution and its advertisement budget to counter the PepsiCo's Frito lay. </li></ul><ul><li>“ SHARUKH KHAN ” “ DHONI ” & “ SURYA ” </li></ul><ul><li>as brand ambassador of SUNFEAST </li></ul><ul><li>Sunfeast World 10K Bangalore- Brand philosophy -Spread the smile </li></ul><ul><li>E-COMMERCE activities for READY-TO-EAT </li></ul><ul><li>Snack brand KOI </li></ul><ul><li>Tie-up with leading portals to promote snack range </li></ul><ul><li>Online advertising & can order snack on toll-free number – </li></ul><ul><li>1600 </li></ul><ul><li>ITC Foods has contract manufacturing facility. </li></ul><ul><li>Panel tastes & approves it before processing takes place. </li></ul>
  14. 18. Organizational Structure for FMCG Foods
  15. 19. Important factors FOOD MARGINS CREDIT SYSTEMS STOCK OUTS WASTAGES PROMOTIONS DISTRIBUTION CHANNELS
  16. 20. <ul><li>Strict compliance standards, low profit margins, intense competition, high customer-service expectations. </li></ul><ul><ul><li>Fast and effective sales ordering processes. </li></ul></ul><ul><ul><li>Flexibility </li></ul></ul><ul><ul><li>Quick reaction </li></ul></ul><ul><li>ITC uses FIFO method </li></ul><ul><li>They also keep the good on constant move from low sales area to high sales area. </li></ul><ul><li>The company collects all the expired goods four times a year, and destroys them. </li></ul><ul><li>Retailers must return expired or damaged products within six months after the date of expire. </li></ul><ul><li>Adjustment for them is done in three months time. </li></ul><ul><li>ITC provides their retailers with racks, hangers, etc to display the products. </li></ul><ul><li>The benefits received by the retailers depend upon their sales volume and also the location of their shops. </li></ul><ul><li>ITC has hired IMRB to do the market research. </li></ul>Distribution of Food Products
  17. 21. Flow Diagram FACTORY CNF WHOLESALE DISTRIBUTOR WHOLESALE DEALER BASE RETAILER
  18. 22. ITC. Touching your life. Everyday Places
  19. 24. e-Choupal <ul><li>To Tackle Challenges </li></ul><ul><li>Fragmented farms </li></ul><ul><li>Weak infrastructure </li></ul><ul><li>Involvement of various intermediaries </li></ul><ul><li>e-Choupal unshackles </li></ul><ul><li>low investment </li></ul><ul><li>low productivity </li></ul><ul><li>weak market orientation </li></ul><ul><li>low value addition </li></ul><ul><li>low margin </li></ul><ul><li>low risk taking ability </li></ul>e-Choupal
  20. 25. Outbound Logistics Display & Inspection Auction Bagging & weighing Payment Pricing Mandi Inspection & Grading Inbound Logistics Inbound Logistics Weighing & Payment Hub Logistics e-Choupal Operational Process
  21. 26. Business Model
  22. 27. The e-Choupal Services <ul><li>Information </li></ul><ul><li>Knowledge </li></ul><ul><li>Purchase-choupal saagar </li></ul><ul><li>Sales </li></ul>
  23. 28. <ul><li>Distribution Challenges </li></ul><ul><li>first time internet users </li></ul><ul><li>infrastructural inadequacies, </li></ul><ul><li>How challenges are encountered </li></ul><ul><li>Power back </li></ul><ul><li>Upgrading BSNL exchanges </li></ul><ul><li>by installation of VSAT equipment, Mobile Choupals, 24x7 helpdesk etc </li></ul>VSAT equipment Mobile Choupal Solar Power
  24. 29. Over Coming Challenges Through <ul><li>Trustmanship </li></ul><ul><li>Creating Goodwill </li></ul>
  25. 30. NEW PRODUCTS LAUNCHED-2008-09 Paperkraft Copier Paper Classmate Invento Classmate Pencils Classmate Pens Mangaldeep Durbar Gold Mikkel Classic Verve Fortune Select Dasve Fortune Select Manohar
  26. 31. <ul><li>No Questions </li></ul><ul><li>Thank you ..  </li></ul>
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