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ITC Classmate Brand Extension


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ITC Classmate Brand Extension

  1. 1. BRAND MANAGEMENT Overview of brand extension – ITC Classmate
  2. 2. FMCG industry in India Source: GMID Euro monitor report, annual report 2014 Overview Fast moving consumer goods (FMCG) is the fourth largest sector in the Indian economy The FMCG sector has grown at an annual average of about 11 per cent over the last decade Food products is the leading segment, accounting for 43 per cent of the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market share
  3. 3. Education & Stationery Market in India Consumer expenditure in India (INR million) 2009 2010 2011 2012 2013 2014 90,201.7 111,528.4 120,699.8 128,444.5 144,504.4 163,861.3 Source: GMID Euro monitor report, annual report 2014 Organized notebook market in India is 4000 Cr ITC’s Classmate is market leader with 20% share Navneet follows with 7% share Remaining market is controlled by regional shares
  4. 4. ITC Group Country’s leading marketer in FMCG Second largest hotel chain in India Market leader in Indian paperboard & packaging industry Pioneer is farmer empowerment with its Agri Business In the 1970s, it diversified into non-tobacco businesses
  5. 5. ITC Group – key financials Source: GMID Euro monitor report, annual report 2014
  6. 6. ITC’s extension into ‘Classmate’ stationery ITC made its foray into stationery with ‘Paperkraft’ in 2002 Expanded into the popular segment with ‘Classmate’ in 2003 Classmate became largest notebook brand in the country Classmate & Paperkraft have become a natural extension of the consumer Source: GMID Euro monitor report, annual report 2014
  7. 7. Market Segmentation By User Professional (business) users - Medium (10-50) & large (>50) sized offices Small office & Home Users - 1-10 employees Private Users - Children, teens & students
  8. 8. Target Group General Market for Classmate: Students, Educational Institutes, Corporate Employees Stands for identifying & celebrating the uniqueness in every child Encourages the user to nurture his talents, skills and interests that make him special. Classmate's simple message to every child: "You are born unique so succeed to your own strengths. Because you are one of a kind."
  9. 9. Positioning Recognizing and celebrating the uniqueness of every child Encouraging individuality.
  10. 10. Marketing Mix (4P’s) • Pencils (mechanical and wood-cased) • Pens (ball, gel, roller and fountain) • Mathematical Instruments (wax crayons, colour pencils, sketch pens and oil pastels) • Erasers • Sharpeners • Art Stationery • Notebooks Product
  11. 11. Marketing Mix (4P’s) • Selecting Pricing objective : Classmate objective is to maximize market share • Pencils – INR 3- 40 per unit • Pens – INR 5- 20 per unit • Mathematical Instruments (wax crayons, colour pencils, sketch pens and oil pastels) • Sharpeners – INR 4- 20 per unit Price
  12. 12. Marketing Mix (4P’s) • Classmate’s products are targeted across rural & urban areas across India • LEVEL 3 : Producer  Agent  Wholesaler  Retailer  Consumer • This level is used majorly for reaching consumers in rural areas • LEVEL 3 L : Producer  Wholesaler  Retailer  Consumer • This is used in all other areas of distribution Place
  13. 13. Marketing Mix (4P’s) • Promotions is a major player for Classmate • Promotions are undertaken with the tag line ”You are one of a kind” • TV Advertisements, hoardings, posters and banners are used to promote the products across all areas • Classmate uses 3 type of advertising strategies • Television advertising • Newspaper advertising • Magazine advertising Promotion
  14. 14. Competitive Frame of Reference NavNeet and Bilt are the main competitors of Classmate.
  15. 15. Ad Analysis (videos)
  16. 16. Ad Analysis – ‘because you are one of a kind’ Ads have an emotional appeal Recognizing and celebrating the uniqueness of every child Encouraging individuality *depicted are snapshot of TVCs over the years
  17. 17. Competitor Analysis Brand Recall Brand Recognition
  18. 18. Competitor Analysis – Product, Place Products : Writing instruments, Art Stationery, Notebooks Place: Across rural & urban India Products : Scholastic Paper Stationery, Educational Books Publishing, Non-paper stationery Place : Rural & Urban India + Exports
  19. 19. Competitor Analysis – Price, Promotion Price : Higher priced (Rs. 40 per notebook) Promotion : ‘you are one of a kind’ Encouraging individuality Price : Lower priced (Rs. 35 per notebook) Promotion : ‘Knowledge is wealth’
  20. 20. Perceptual Mapping Classmate Navneet Bilt Local
  21. 21. POP’s & POD’s Points of Difference • Product Differentiation: Durability, conformance quality, reliability, repair ability, style, performance quality differentiate a product • Design Differentiation: Classmate has very good cover design that differentiates it from its competitors. The customers register the design at the first look and hence prefer classmate over others. • Services Differentiation: Ordering ease, delivery, installation, customer training, customer consulting, maintenance repair and returns differentiate services Points of similarity • Regular range of stationery like competitors • Similar reach & target group • Similar price range
  22. 22. By - Shamael Ansari (PGP 30102) Brand Management (Sec B) IIM Lucknow