ITC has diversified presence in: Cigarettes Hotels Packaging Personal care Agri-based business Branded apparel Safety matches Greeting cards
Main objective was to compete effectively with players who are already there. Hence, it launched direct frontal attack by introducing similar priced product. ITC already enjoyed advantages over competitors through e-choupal initiative. This also facilitate timely supply of raw material. ITC’s printing and packaging business also leads to high quality, cost effective and innovative products.
The company dose not raise the price of its most selling brand(Gold Flake (S)) so that it can get max market share and earn money on its premium brands(Insignia). The cost structure of the company plays a major role in determining the prices the various stages and the companies cost structure is as follows:- Fixed Cost(Plant operations) .69% &Variable (manufacturing , packaging etc. 99.31%) Further on the company cannot afford to raise its mark-up due to the presence of intense competition.
Cost of raw material is same for every industry Logistics Labor Larger the Quantity lower the production cost Target market Brand value Government policy
Form of market Whole sales supply chain compititors
Study of market Cost calculation Production expenses Channel of supply Brand value