- ITC was incorporated in 1910 as Imperial Tobacco Company of India Limited and later changed its name to ITC Limited in 1974. - ITC operates in various business segments including FMCG, hotels, paperboards, packaging, agri business and IT. Within FMCG, it operates in cigarettes, food, lifestyle retailing, personal care, education and stationery, safety matches and agarbattis. - ITC Foods launched Sunfeast biscuits in 2003 which has grown at a rate of 53%. Sunfeast has a 23% market share in the Indian biscuits market.

1. By,
.

2. ITC
was incorporated on August 24, 1910 under the
name Imperial Tobacco Company of India Limited.
 As the Company's ownership progressively Indianised, the
name of the Company was changed from Imperial
Tobacco Company of India Limited to India Tobacco
Company Limited in 1970 and then to I.T.C. Limited in
1974.
Chairman- Y C Deveshwar.

4. FMCG
HOTELS
Paperboards
& Specialty
Papers
PACKAGING AGRI BUSINESS
INFORMATION
TECHNOLOGY

5. FMCG
Cigarette
s & Cigars
Foods
Lifestyle
Retailing
Personal
Care
Education
and
Stationery
Safety
Matches
Agarbattis

6. FOODS
PACKAGED FOODS

7. SUNFEAST BISCUITS
SUNFEAST PASTA
SUNFEAST YIPPEE!

8. Launched
Growth
ITC
in July, 2003 with the quote “Spread the Smile"
rate of 53%.
Eyes Turnover of over 10,00,00 crore.(by economic times
27 jul-2013)
Saturated
Wide
biscuits in market.
categorization.

10. Market value of biscuits
Sunfeast
23%
other local products
34%
Parle Products
18%
Oreo
6%
Britannia
19%
Sunfeast
Parle Products
Britannia
Oreo
other local products

11. ITC
Foods, which makes Sunfeast biscuits and Bingo
chips, expects increased distribution in rural areas and new
product launches in biscuits and snacks to help it grow sales
by 28-30% this year, chief executive Chitaranjan Dar said in
an interview.
“We’re going to make products available in small towns
and rural areas, which were earlier confined only to cities.
For example, if we had 1,000 stocking points in a
region, we’ll now have 3,000 stocking points,” Dar said.
“We’re appointing new wholesalers, stockists. Our strategy is
to intensely market our products in rural areas.”

12. ITC
Foods gets about 30-35% of its business from the villages. Dar
said that number would increase to 35-40% in two years.
“It’s not that growth in urban is saturated,” he said.
“It’s just that the opportunity in rural areas is immense and
consumers there are premiumizing (trading up).”
Increasing distribution in rural areas is important for ITC
Foods, which likely accounted for over 11% of ITC’s sales
last year, to keep up its strong growth rate as Parle and Good Day
maker Britannia are aggressively promoting their brands.

13. ITC
is India’s third-largest biscuits maker after Parle and Britannia.
“It’s extremely important for them to expand distribution in rural
areas. Until now, the focus was to scale up the business in urban
India, build up the brands and achieve break-even,” said Anand
Mour, analyst at ICICI Securities, a brokerage.
“Now that they’ve achieved break-even or are close to it, they
need to be competitive enough in terms of availability and
distribution in rural areas where they lag most FMCG (fast-moving
consumer goods) companies.
To get growth across markets, they need to be in rural areas in a big
way.”

14. WHY
Rural
RURAL MARKET?????
india accounts for over 75% of india`s population.
Strength of market.
Size of market.
Incomes in rural India have improved dramatically.
The rural markets are growing at about two time faster pace
than urban markets.
Rural India accounts for 60% of the total national demand.

15. Mostly
rural consumers wont accept the change once they
like it.
Its is less price starting from 3rs to 30rs.
Mostly they believe in WOM(word of mouth).
Brand loyalty more in rural market.
People also appreciated it because of availability of large
variety.
Attractive wrappers for biscuits.
Good quality with large quantity.

16. Carried
a market research before entering
Found lacunas that can filled
Consumers vying for new taste.
They provide some samples and taking feedbacks.
They use secondary data from parle and Britannia.

17. ITC
relies on three core competencies.
 1.
The depth of distribution
 2. Its brand building capabilities.
 3. The ability of Quality outsourcing.
 Sunfeast has been a success because of these three competencies of
ITC.
Innovation.
 Distribution.
 Promotion.
 Pricing.


19. ITC
uses FIFO method to reduce the wastage of goods due to
expiry.
They
also keep the good on constant move from low sales area to
high sales area.
The
company collects all the expired goods four times a year, and
destroys them.
Retailers
must return expired or damaged products within six
months after the date of expire.
Adjustment for them is done in three months time.

20. 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.

21. 3
Rs Ad.
5 Rs Ad.
10 Rs Ad.
10 Rs Ad.
10 Rs Ad.
25 Rs Ad.
30 Rs Ad.
60 Rs Ad.

22. Introducing
new varieties.
Less profit margin.
Achieve a more market share value.
Continue in no.1 position in biscuit brands.
Entering into dairy products.

24. By,
MARUTHU PANDIAN