Your SlideShare is downloading. ×
0
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Itc
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Itc

11,081

Published on

Published in: Business
3 Comments
4 Likes
Statistics
Notes
No Downloads
Views
Total Views
11,081
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
885
Comments
3
Likes
4
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. ITC LIMITED <ul><ul><li>Mariam Khan PGPM- Business Strategy </li></ul></ul>
  • 2. &nbsp;
  • 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>
  • 4. <ul><li>“ From a leading cigarette manufacturer to an umbrella group that offers a diversified product mix” </li></ul><ul><li>ITC&apos;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>
  • 5. &nbsp;
  • 6. &nbsp;
  • 7. &nbsp;
  • 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>
  • 9. ITC PRODUCTS <ul><li>FMCG-FOOD </li></ul><ul><li>Packaged Food </li></ul><ul><li>Snack &amp; confectionery </li></ul>
  • 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>
  • 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>
  • 12. FMCG –FOODS
  • 13. Sales &amp; Market Growth Market for Biscuits 11% 10% 33% 15% 31% Sunfeast Others Parle Priya Gold Britannia
  • 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
  • 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 &amp; CRM capability Lifestyle retailing Education Stationery Matches &amp; Agarbattis Personal Care Products
  • 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>
  • 17. Various marketing strategies - <ul><li>The Company is planning to double its distribution and its advertisement budget to counter the PepsiCo&apos;s Frito lay. </li></ul><ul><li>“ SHARUKH KHAN ” “ DHONI ” &amp; “ 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 &amp; 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 &amp; approves it before processing takes place. </li></ul>
  • 18. Organizational Structure for FMCG Foods
  • 19. Important factors FOOD MARGINS CREDIT SYSTEMS STOCK OUTS WASTAGES PROMOTIONS DISTRIBUTION CHANNELS
  • 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
  • 21. Flow Diagram FACTORY CNF WHOLESALE DISTRIBUTOR WHOLESALE DEALER BASE RETAILER
  • 22. ITC. Touching your life. Everyday Places
  • 23. &nbsp;
  • 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
  • 25. Outbound Logistics Display &amp; Inspection Auction Bagging &amp; weighing Payment Pricing Mandi Inspection &amp; Grading Inbound Logistics Inbound Logistics Weighing &amp; Payment Hub Logistics e-Choupal Operational Process
  • 26. Business Model
  • 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>
  • 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
  • 29. Over Coming Challenges Through <ul><li>Trustmanship </li></ul><ul><li>Creating Goodwill </li></ul>
  • 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. <ul><li>No Questions </li></ul><ul><li>Thank you ..  </li></ul>

×