Marketing Strategy by ITC:
Using a six-pillar strategy that straddles consumer insighting to product
development and packaging, ITC has created a powerful personal care
portfolio with five brands across multiple categories and price-points
Creating brands from scratch with no history and lineage, ITC used clear
segmentation across its five product lines and the target audience, each brand was
Once the five products were created and communication strategies set, ITC
leveraged its properties like hotels, foods and apparel store network to retail these
Like HUL, these brands sport Western names, and different communication.
Essenza & Fiama, meant for the elite, have English communication, while Vivel &
Superia use Hindi.
A selective extension as it doesn‟t want to confuse consumers with too many
irrelevant brand extension & sub-brands. The Essenza range is the only exception.
ITC uses brand ambassadors strategically. While for the Fiama and Vivel ranges it
has roped in brand ambassadors, for the Superia & Essenza ranges the key target is
the real king.
Since packaging plays a key role in product differentiation, ITC uses it to the hilt.
It has taken foreign experts‟ help to make its products stand out from competition.
ITC Commercial Initiatives complementing Above 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 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.
Effective Distribution System by ITC
Strict compliance standards, low profit margins, intense competition, high
Fast and effective sales ordering processes.
ITC uses FIFO method
They also keep the good on constant move from low sales area to high sales
The company collects all the expired goods four times a year, and destroys
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.
ITC: Creating World-Class Brands that Put India First
A country's brands are a reflection of its competitive strengths and a manifestation
of its innovation and intellectual capacity. I strongly believe that a country's
economic capacity is significantly enriched when its institutions build and own
internationally competitive brands. Winning brands serve as market anchors to
support the competitiveness of the entire value chains of which they are a part.
Strong domestic brands create much larger value since they create, capture and
retain value within the country. ITC takes justifiable pride in creating world-class
Indian brands that have demonstrated immense vitality in the global Indian market
Y C Deveshwar, Chairman, ITC Limited
ITC's Brand Image heps in economic Growth Of the country
Great brands are not just about delighting the consumer, they are also about
powering national economic growth. Brands capture value for the nation in
numerous ways – creating intellectual capital, boosting R&D and innovation, and
creating large-scale livelihoods by empowering value chains, investing in physical
infrastructure and expanding markets.
ITC is today proud to have created over 50 energetic and popular brands across
categories that delight nearly 140 million households. Within a relatively short
span of time, ITC has established vital brands with significant salience among
consumers like Aashirvaad, Sunfeast, Bingo!, Yippee!, Candyman, mint-o and
Kitchens of India in the Branded Foods space and Essenza Di Wills, Fiama Di
Wills, Vivel and Superia in the Personal Care products segment. In addition,
brands like Classmate and Paperkraft in Education & Stationery products; Wills
Lifestyle and John Players in the Lifestyle Apparel business; Mangaldeep in
Agarbattis as well as Aim in Matches have established significant market standing
and continue to delight consumers with superior offerings.
ITC Hotels, with its credo of “Responsible Luxury”, stands apart not only for its
exquisite signature properties, cuisine and service excellence but also for being the
greenest luxury hotel chain in the world. ITC's hotels business also contributes to
the country's tourism landscape and livelihood creation through its other high
quality offerings embodied in the WelcomHotels, Fortune and WelcomHeritage
brands. ITC‟s hotels have pioneered the concept of branded cuisine in India with
globally acclaimed restaurants including Bukhara, Dum Pukht and Dakshin. ITC
has also set new benchmarks in wellness with its Kaya Kalp Spa brand that offers a
new dimension in luxury and an enriching experience.
ITC's Brand Customisation as per Indian need
ITC‟s strong portfolio of brands and products are supported by well-defined
research and development strategies executed by the dedicated state-of-the-art
„ITC Life Sciences and Technology Centre‟ in Bengaluru. This Centre, an integral
part of ITC's future-ready capabilities, is set to drive game-changing innovations
for its businesses of tomorrow. The core of this strategy is to design and provide
customised superior solutions that address the unique needs of the Indian
consumer. A large pool of highly qualified scientists with global exposure
relentlessly drives innovation that helps create world-class winning brands and
growing value for the consumer.
A slew of innovative products are already in the market and there is a continuous
pipeline of such products that are being readied for launch. Such innovation finds
articulation in brand variants such as Aashirvaad Atta with Multigrains which is
designed as a healthier nourishment option, smooth non-sticky Sunfeast Yippee!
Noodles in a unique round block and Sunfeast Yippee! Chinese Masala – a unique
combination of flavours which gives the consumer tasty Chinese noodles in
This spirit of innovation is also visible in a range of products developed for the
Biscuits segment. This includes Sunfeast Dream Cream Butterscotch Zing that
offers an innovative combination of sweet butterscotch and tangy Zing and
Sunfeast Dark Fantasy Choco Meltz– a delightful triple layer structure of chocolate
coating on the outside, crisp cookie in the middle and a luscious chocolate filling
inside. Innovative products in the confectionery segment include mint-o Ultra
mintz – India's most premium, sugarfree power mints packed in a stylish black
case and Candyman Crème Lacto which is made with the goodness of milk and
caramel with a rich, delicious crème filling.
In the personal care products category, ITC has developed Liquid Crystal Freezing
Technology for its Fiama Di Wills brand, a revolutionary method to freeze the
goodness of shower gels in soap. Equally unique in their value propositions are the
Fiama Di Wills Men Aqua Pulse De-stressing and brightening Face Wash,
enriched with unique revitalising beads, the Fiama Di Wills Men Moisture Guard
Instant Foam Wash with triple skin conditioners that hydrate deeply to combat
rough and dry skin, the Vivel Cell Renew skincare range that repairs and fortifies
skin at a cellular level with the power of Vitamin E and Vivel Perfect Glow which
is a unique multi-layer skin tone perfector that works at every layer of the skin to
lighten dark spots.
ITC's Brands: An Asset for the Nation
The consumer needs and aspirations they fulfil, the benefit they generate for
millions across ITC‟s value chains, the future-ready capabilities that support them,
and the value that they create for the country, have made ITC‟s brands national
assets, adding to India‟s competitiveness.
It is ITC‟s aspiration to be the No 1 FMCG player in the country, driven by its new
FMCG businesses. A recent Nielsen report has highlighted that ITC's new FMCG
businesses are the fastest growing among the top consumer goods companies
operating in India. ITC takes justifiable pride that, along with generating economic
value, these celebrated Indian brands also drive the creation of larger societal
capital through the virtuous cycle of sustainable and inclusive growth.
Targeting: All sets of customers including rural people, farmers, cigarette
smoking people, students, etc.
Near competitors of ITC (FMCG):
From the charts drawn below, it becomes obvious that following are the
competitors of ITC:
Key success factors of ITC:
There could be number of factors that contribute to the success of the company, but
the key factors for the success of ITC include:
Variety of products
Comparison on the basis of key success parameters:
*WAS : Weighted Average Success rate
From the above comparison it could be inferred that besides ITC is new in the
FMCG sector but still it has managed to reach a level at which the other strong
companies are. A score of 3.5 is a very good score at a point when the old
competitors (leaders) are at a score of 3.8. ITC is paying heavy competition to the
old competitors and this growth will help the company to boom in future. The
innovation, R&D (e-chaupal ,Aashirwad Aata) and the Brand Image (100 years
old) of the company is making a strong base for the company to develop its
potential and market in FMCG.
The company has started its retail stores not only in Indian metros but also in the
small towns like Ranchi, Jabalpur, Gwalior, Belguam, Ernakulam etc. thus the
company adopted strong market campaign, and used its brand image to attract the
Indian youth. The strategies adopted by the company has helped it to differentiate
itself in this segment, like the company is outsourcing its designs to The American
Design Intelligence Group (ADIG), a San Francisco, US-based garment and retail
consultancy. Now it has its own six-member team, even as it continues a tie-up
with Science & Designs, an Italian fashion design house – through which it keeps a
watch on hot western labels such as Banana Republic and Armani Exchange.
Thus by adopting these strategies ITC will surely maintain its success and add
many more new sub-brands to its corporate group-ITC.