IT IS GOING TO BE PRESENTED BEFORE CORPORATES AT MY COLLEGE PIBM.

1. z
SEM.1 FINAL PROJECT PRESENTATIONS KUSHAL VASHISHTH
SECTION 5 (PGDM)
2017-2019
PIBM, Pune

2. z SECTOR INFORMATION
Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian
economy with Household and Personal Care accounting for 50 per cent of FMCG sales
in India.
The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 672
billion in 2016, with modern trade expected to grow at 20 per cent - 25 per cent per
annum, which is likely to boost revenues of FMCG companies.
In 2016-17, revenue for FMCG sector have reached US$ 49 billion and is expected to
grow at 9-9.5 per cent in FY18 supported by expectations of the total consumption
expenditure reaching nearly US$ 3,600 billion by 2020 from US$ 1,469 billion in 2015.
The government has allowed 100 per cent Foreign Direct Investment (FDI) in food
processing and single-brand retail and 51 per cent in multi-brand retail. The sector
witnessed healthy FDI inflows of US$ 12.25 billion, during April 2000 to June 2017.

3. DOMINANT PLAYERS OF THE SECTOR

4. COMPANY INFORMATION
 ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal.
Its diversified business includes five segments: Fast-Moving Consumer Goods (FMCG),
Hotels, Paperboards & Packaging, Agriculture Business & Information Technology.
 In line with ITC's aspiration to be India's premier FMCG company, recognised for its
world-class quality and enduring consumer trust, ITC forayed into the Personal Care
business in July 2005.
 ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama', 'Vivel', "Engage"
and 'Superia' brands has received encouraging consumer response and is being
progressively extended nationally.
 Extensive insights gained by ITC through its numerous consumer engagements have
provided the platform for its R&D and Product Development teams to develop superior,
differentiated products that meet the consumer's stated and innate needs.
 ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and
benchmarked manufacturing practices. Contemporary technology and the latest
manufacturing processes have combined to produce distinctly superior products which
rank high on quality and consumer appeal.

5. PERSONAL CARE PRODUCT PORTFOLIO

6. FIAMA DI WILLS
Ever since September 2007, Fiama has been providing gentle and effective care while
pampering and keeping you refreshed throughout the day.
The Fiama product portfolio has been developed by scientists at the ITC R&D Centre,
leveraging the expertise of International product formulation specialists.
Fiama products are for modern, aware customers who are confident of themselves and
seek indulgences that make them feel alive, beautiful and young !!
A Sensuous Bathing Experience meets Irresistibly Soft Skin with Fiama Shower Gels
and Gel Bathing Bars.
They are enriched with Skin Conditioner with Moisture Lock giving you soft, moisturized
and youthful skin round the clock.
Fiama Di Wills Gel Bathing Bar is handcrafted using ITC’s Innovative Liquid Crystal
Freezing Technology, which freezes gel into a bar.

7. SEGMENTING TARGETING AND POSITIONING
SEGMENTING
 AGE: - 16-40 years (Youth)
 Income Level: - Middle Class
 Skin Care: - Skin Conscious
 Awareness: - Curious about research
and nature lovers
 Soap Experience: - Seeking luxury
bath experience
TARGETING
 Skin conscious, young,
modern and aware middle
class men and women who
want to look beautiful and
confident.
 A Sensuous Bathing
Experience meets
Irresistibly Soft Skin with
Fiama Shower Gels and Gel
Bathing Bars.
POSITIONING
 Gel bar that has converted gel to a bar giving rich
bath experience
 Blend of nature (made up of exotic ingredients
like peach, avocado, lemongrass) and science
 Gentle on skin and act as moisturizer

8. SWOT Analysis of FIAMA DI WILLS
STRENGTH
 Different variants – Every day Mild, Aqua Balance, Volume Boost.
 Bollywood celebrities are brand ambassadors, so the product is more identifiable
among girls and women.
 Effective use of both push and pull strategy.
 Good brand visibility and distribution; and product range offers shampoos,
conditioner, bathing bars and shower gels.
WEAKNESSES
 Product not popular among men. Ads made the product look like unisex but it
was targeted at both the genders.
 Confused state of existence in consumers’ mind.
 With the launch of multiple product targeting various segments, the brand needs
to have a common positioning platform which connects all variants together.

9. OPPORTUNTY
 Increasing consumer with time.
 Fiama is young brand, in its growing stage.
 People are increasingly facing haircare problems hence haircare segment is
rapidly expanding.
THREATS
 Cut throat competition from HUL.
 People have a tendency to shift to other products, since so many options
are available.

10. FINANCIAL ANALYSIS OF COMPANY ACCOUNTS
Indirect expenses and direct expenses of the company has increased at very high
margin compared sales of the year, as a result net profit of the year as portion of
sales is slightly decreased i.e. from 18.39% 17.95%.
Companies overall performance is same by the last 4-5 years sales of the year is
somehow stand at the same position as that of last 2-3 years.
Fixed assets added to the net bloc of assets is less than previous year, so it can
be understood that purchase of fixed assets for the year is minimum.
Working capital is a term that can be understood as capital required for the
purpose of day-today operations of business it is determined as a current assets
net of current liabilities so company has higher working capital fund for business
as compared to last year.
It can be observed that sales of the company had been increased by 6.74%. But
gross profit and net profits as a percent of total sales of the respective years have
decreased with a smooth margin, however gross profit and net profit of the year as
compared to that of last year has increased by 3.24% and 9.35% respectively.

11. FINANCIAL ANALYSIS OF COMPANY ACCOUNTS
 Foreign exchange earnings of the ITC Group over the last ten years aggregated
nearly US$ 7.0 billion, of which agri exports constituted 56%. Earnings from agri
exports, which effectively link small farmers with international markets, are an
indicator of your Company’€™s contribution to the rural economy.
 Despite the challenging business environment as foretasted, Gross Revenue at
Rs, 55001.69 crores grew by 6.6% primarily driven by an 8.0% growth in the non-
cigarette FMCG segment, 10.8% growth in Agri Business and 5.1% growth in the
Cigarettes segment. Profit Before Tax registered a growth of 7.4% to Rs.15502.96
crores while Profit After Tax at Rs.10200.90 crores increased by 9.4%.
 Total Comprehensive Income for the year stood at Rs, 10277.90 crores (previous
year Rs, 9261.79 crores). Earnings Per Share for the year stood at Rs, 8.43
(previous year Rs, 7.74). Cash flows from Operations aggregated Rs, 15214.98
crores, compared to Rs, 14039.64 crores in the previous year.

12. HUMAN RESOURCE MANAGEMENT PRACTICES
 ITC’s human resource management systems and processes are designed to enhance
employee engagement, organizational capability and vitality so as to ensure that each of
the businesses is world class, positioned for competitive superiority and capable of
achieving the ambitious growth plan of the Company.
 The Company has fostered a culture that rewards continuous learning, collaboration and
capability development across the organization to be future-ready and meet the
challenges posed by ever-changing market realities.
 It creates and nurtures workplace challenges that keep employees engaged, motivated
and innovative. This talent has, through strong alignment with ITC’s vision, successfully
built and sustained its standing as one of India’s most admired and valuable corporations
despite unrelenting competitive pressures.

13. HUMAN RESOURCE MANAGEMENT PRACTICES
 The Company encourages local employment in the workforce in manufacturing
and hotels, depending on the availability of requisite skills. Employees’ Retirement
Benefit Schemes include employee pension, provident fund and gratuity, which are
administered through duly constituted and approved independent trusts.
 Provident Fund and Family Pension contributions in respect of unionised staff, as
required by applicable statutes are deposited with the Government in a timely
manner.
 The pension plans and other applicable employee benefits obligations are
determined and funded in accordance with independent actuarial valuation.
Expected rate of return on plan assets is based on the current portfolio of assets,
investment strategy and market scenario.

14. THANK YOU FOR
YOUR KIND
CONSIDERATIONS