“ From a leading cigarette manufacturer to an umbrella group that offers a diversified product mix”
ITC's diversification into related and unrelated areas in recent years
Why they did this ?
Huge Impostion of Govt. on Cigarette Market
To reduce dependence on cigarette business
How they did ?
The Company’s relentless efforts to create value through International quality products.
Significant investments in technology and product development
Strong portfolio of brands have enabled it to maintain its leadership position in terms of market standing and share.
Customization of product
Brand image enhancement
BCG MATRIX FOR ITC LTD -
Maybe ITC InfoTech.
Snack & confectionery
Indian Packaged Food industry
With improving living standards, Indian consumers are now becoming more Hygiene and health-conscious
Demand for neat and tidy packaged branded food in India.
The increasing number of working women and fast pace of life change social structure has driven the demand of packaged branded food.
Changing life style, the consumers now look for ways to reduce cooking time.
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
Snacks and Confectionery Industry
The Snacks and confectionery market is equally divided into the organised and unorganised sector.
The market size is estimated to the tune of US$3bn.
The organised sector of the snack food market is growing at 15-20 % per year
While the growth rate of unorganised sector is 7-8 per cent and the market
Size is estimated to be worth of US$ 1.56 bn.
Sales & Market Growth Market for Biscuits 11% 10% 33% 15% 31% Sunfeast Others Parle Priya Gold Britannia
Direct marketing :- Sign boards, posters at shops on point of sale
ITC has just packed a classic punch (Jazz, Blues, Rocks)
Interaction with customers in form of Competitions
ITC. Touching your life. Everyday
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
The has flavors such as Masala Chaas, Chatpata Nimbu and Paneer Tikka, it has variants with truly Indian flavors.
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.
Bingo is positioned as a youthful and innovative snack.
KOI – READY-TO-EAT CATEGORY) targeted at
Consumers who order at Home
NRIs US/ canada Makets –Availabilty in more than 4500 stores
Women in age group 25 plus
Sunfeast Pasta Treat
Targeted towards children as Healthy snack
Youngsters as Fun Food
Various marketing strategies -
The Company is planning to double its distribution and its advertisement budget to counter the PepsiCo's Frito lay.
“ SHARUKH KHAN ” “ DHONI ” & “ SURYA ”
as brand ambassador of SUNFEAST
Sunfeast World 10K Bangalore- Brand philosophy -Spread the smile
E-COMMERCE activities for READY-TO-EAT
Snack brand KOI
Tie-up with leading portals to promote snack range
Online advertising & can order snack on toll-free number –
ITC Foods has contract manufacturing facility.
Panel tastes & approves it before processing takes place.
Organizational Structure for FMCG Foods
Important factors FOOD MARGINS CREDIT SYSTEMS STOCK OUTS WASTAGES PROMOTIONS DISTRIBUTION CHANNELS