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  • 1. ITC LIMITED
      • Mariam Khan PGPM- Business Strategy
  • 2.  
  • 3. Introduction
    • Type: Public (BSE:ITC)
    • Founded: 24 August 1910 Radha Bazar Lane, Kolkata, India
    • Headquarters: Kolkata, India
    • Key people: Yogesh Chander Deveshwar, Chairman K. Vaidyanath, Director, Partho Chatterjee, CFO
    • Industry: Tobacco, foods, hotels, stationery, greeting cards
    • Products: Cigarettes, packaged food, hotels, apparel
    • Employees: over 25,000 (2009)
    • Website: http://www.itcportal.com/
    • Forbes Global 2000 List: 987 rank (2009)
      • Sales (Rs.crore): 15388.11
      • Profits (Rs. million): 32636
      • Market Value($ billion): 13.48
  • 4.
    • “ 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
  • 5.  
  • 6.  
  • 7.  
  • 8. BCG MATRIX FOR ITC LTD -
    • Dogs
    • Maybe ITC InfoTech.
    • Cows
    • FMCG-Cigarettes
    • ?
    • FMCG- Foods
    • Stars
    • Hotels
    • Paperboards/ Packaging.
    • Agri business.
  • 9. ITC PRODUCTS
    • FMCG-FOOD
    • Packaged Food
    • Snack & confectionery
  • 10. 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
  • 11. 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.
  • 12. FMCG –FOODS
  • 13. Sales & Market Growth Market for Biscuits 11% 10% 33% 15% 31% Sunfeast Others Parle Priya Gold Britannia
  • 14. Promotion
    • Direct marketing :- Sign boards, posters at shops on point of sale
    • Sales force
    • ITC has just packed a classic punch (Jazz, Blues, Rocks)
    • Interaction with customers in form of Competitions
    ITC. Touching your life. Everyday
  • 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
  • 16. Targeting
    • Bingo –Snacks
    • 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
    • Tourists
    • 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
  • 17. 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 –
    • 1600
    • ITC Foods has contract manufacturing facility.
    • Panel tastes & approves it before processing takes place.
  • 18. Organizational Structure for FMCG Foods
  • 19. Important factors FOOD MARGINS CREDIT SYSTEMS STOCK OUTS WASTAGES PROMOTIONS DISTRIBUTION CHANNELS
  • 20.
    • Strict compliance standards, low profit margins, intense competition, high customer-service expectations.
      • Fast and effective sales ordering processes.
      • Flexibility
      • Quick reaction
    • ITC uses FIFO method
    • They also keep the good on constant move from low sales area to high sales area.
    • The company collects all the expired goods four times a year, and destroys them.
    • Retailers must return expired or damaged products within six months after the date of expire.
    • Adjustment for them is done in three months time.
    • ITC provides their retailers with racks, hangers, etc to display the products.
    • The benefits received by the retailers depend upon their sales volume and also the location of their shops.
    • ITC has hired IMRB to do the market research.
    Distribution of Food Products
  • 21. Flow Diagram FACTORY CNF WHOLESALE DISTRIBUTOR WHOLESALE DEALER BASE RETAILER
  • 22. ITC. Touching your life. Everyday Places
  • 23.  
  • 24. e-Choupal
    • To Tackle Challenges
    • Fragmented farms
    • Weak infrastructure
    • Involvement of various intermediaries
    • e-Choupal unshackles
    • low investment
    • low productivity
    • weak market orientation
    • low value addition
    • low margin
    • low risk taking ability
    e-Choupal
  • 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
  • 26. Business Model
  • 27. The e-Choupal Services
    • Information
    • Knowledge
    • Purchase-choupal saagar
    • Sales
  • 28.
    • Distribution Challenges
    • first time internet users
    • infrastructural inadequacies,
    • How challenges are encountered
    • Power back
    • Upgrading BSNL exchanges
    • by installation of VSAT equipment, Mobile Choupals, 24x7 helpdesk etc
    VSAT equipment Mobile Choupal Solar Power
  • 29. Over Coming Challenges Through
    • Trustmanship
    • Creating Goodwill
  • 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
  • 31.
    • No Questions
    • Thank you .. 