Presentation by Priti das on Dark Fantacy of ITC

1. ITC Limited

2. 2
ACKNOWLEDGEMENT
I, Ms Priti Das, deem, it is a pleasure and privilege for me to work under the guidance of Mr
Raman Preet, Ex. Director of Pune Institute of business management. I would like to express
my gratitude and regards to him for rendering me her thoughtful and rational approach
regarding this project work, which enable me to complete it.
I would also like to thank our honourable Principal Director, Mr Kumar Iyer , honourable
Assistant Director, Mr Pranav Nagpurkar and my mentor, Mr David of Pune Institute of
business management , for offering me the proper environment, internet facilities and
overall administration which are very much suitable for my study and project work.
I would also render my thanks to all the faculty members for helping me to complete and
submit my project work.
Date: - ………………………
……………………………………
Place: - ……………………... PGDM, 2nd SEM

3. 3
Table of Contents
SECTORAL INFORMATION......................................................................................................................5
Worldwide sectorial Contribution to the World Economy...............................................................5
GDP % Contribution to the Indian Economy .....................................................................................6
Historical Growth/Degrowth Pattern observed in the last 5 years..................................................7
Porter’s Five Forces Model.................................................................................................................8
............................................................................................................................................................8
COMPANY INFORMATION ...................................................................................................................10
Market Share of the company .........................................................................................................11
Competitor Analysis.........................................................................................................................11
Product/Services offered by the company......................................................................................12
News (Last 6/12 month) incl. corporate announcement................................................................13
SUNFEAST- AN OVER VIEW..................................................................................................................14
PRODUCT ..............................................................................................................................................15
MARKETING STRATEGY........................................................................................................................16
PEST analysis.....................................................................................................................................16
SWOT analysis of company..............................................................................................................17
Segmentation, Target, Positioning ..................................................................................................18
Comparison of sales of company for past 3 years ..........................................................................18
BCG matrix........................................................................................................................................19
Promotional strategy of the company.............................................................................................20
Growth drivers..................................................................................................................................20
Consumer behaviour........................................................................................................................22
Demography study survey of consumers........................................................................................22
Branding and positioning.................................................................................................................23
Packaging..........................................................................................................................................24
Advertising........................................................................................................................................27
Promotion or communication strategy...........................................................................................31
..........................................................................................................................................................31
Rural Marketing vs. Urban Marketing.............................................................................................32
Channel / Distribution strategy .......................................................................................................33
Challenges faced in Marketing.........................................................................................................34
BUSINESS FINANCE...............................................................................................................................35
Gross Profit and Net Profit Margin of the company.......................................................................35
Direct and indirect costs of the company – change in comparison to previous year....................37

4. 4
Fixed assets added during the year .................................................................................................38
Working Capital requirement for the year......................................................................................39
Debt/Equity ratio of the company and its implications .................................................................39
Top line and bottom-line .................................................................................................................40
DuPont Analysis................................................................................................................................41
HUMAN RESOURCE MANAGEMENT....................................................................................................42
Organization Structure.....................................................................................................................42
Analysis of JDs and Job Specifications posted by the company on online-job portals..................43
Training needs of the company .......................................................................................................44
Organization culture (as per employee reviews or research findings) ..........................................45
CONCLUSION ....................................................................................................................................47
BIBLIOGRAPHY..................................................................................................................................48

5. 5
SECTORAL INFORMATION
Worldwide sectorial Contribution to the World Economy
India is a consumer driven market, with consumer spending in the country projected to more
than double by 2025. These days, the Indian consumer segment, broadly categorized into
urban and rural markets, is attracting marketers from across the globe.
Global corporations see India as a key market for the future. The growth in the country's
consumer market is largely driven by a young demographic and rising disposable income. If
India sustains its current pace of growth for the foreseeable future, average household
incomes will likely triple over the next twenty years and the country will become the world's
fifth largest consumer economy by 2025, as per a study by the McKinsey Global Institute
(MGI).
The Government of India has also played a significant role in the growth of the Indian
consumer segment. It has brought about policies which have attracted foreign direct
investment (FDI) and consequently boosted economic growth.
India has the potential to become the world's largest middle class consumer market with an
aggregated consumer spend of nearly US$ 13 trillion by 2030, as per a report by Deloitte
titled 'India matters: Winning in growth markets'.
Driven by growing incomes and increasing affordability, the consumer durables market is
projected to expand at a compound annual growth rate (CAGR) of 14.8 per cent, from US$
7.3 billion in FY12 to US$ 12.5 billion in FY15.
Online retailing, both direct and via marketplaces, will grow threefold to become an Rs
50,000 crore (US$ 8.26 billion) industry by 2016, driven by a 50-55 per cent per year growth
over the next three years, as per rating agency Crisil. The growth of internet retail is also
expected to boost offline retail stores.
https://www.cia.gov/library/publications/the-world-factbook
Agriculture
6%
Industry
31%
Services
63%
PERCENTAGE CONTRIBUTION

6. 6
GDP % Contribution to the Indian Economy
The overall fast moving consumer goods (FMCG) market is expected to increase at a
compound annual growth rate (CAGR) of 14.7 per cent to touch US$ 120.4 billion in the
period 2015-2020, with the rural FMCG market anticipated to increase at a CAGR of 17.7
per cent to US$ 100 billion during 2015-2025.
The market size of the Indian FMCG sector is expected to reach US$ 135 billion by 2020
from US$ 82.9 billion in 2013. It is also the fourth largest sector in the Indian economy and
has grown at an annual average of about 11 per cent over the last decade. Food products, the
leading market segment with 43 per cent of the overall market revenue together with personal
care at 22 per cent make up two-thirds of the sector's revenue.
The Government of India's policies and regulatory frameworks such as relaxation of license
rules and approval of 51 per cent foreign direct investment (FDI) in multi-brand and 100 per
cent in single-brand retail are some of the major growth drivers in this sector. The
government has also amended the Sugarcane Control Order, 1966, and replaced the Statutory
Minimum Price (SMP) of sugarcane with Fair and Remunerative Price (FRP) and the State
Advised Price (SAP).
There is a lot of scope for growth in the FMCG sector from rural markets with consumption
expected to grow in these areas as penetration of brands increases. Also, with rising per
capita income, which is projected to expand at a CAGR of 7.8 per cent over the period 2015-
19, the FMCG sector is anticipated to witness some major growth.
http://www.tradingeconomics.com/india/gdp

7. 7
https://www.cia.gov/library/publications/the-world-factbook
Historical Growth/Degrowth Pattern observed in the last 5 years

8. 8
Porter’s Five Forces Model
Threat of New Entry
Threat of new entrants refers to the threat that the new competitors pose to existing market
players in the industry. Naturally, a profitable industry will attract more competitors who are
looking to achieve profits. If the entry barriers in the industry are low, it may pose a great
threat to the firms who are already competing in that market.
Bargaining power of the Supplier
Supplier power refers to the pressure that the suppliers can exert on businesses by raising
prices or lowering quality or reducing product availability. Strong suppliers can pressurize
the buyers by raising product prices or lowering product quality or reducing product
availability. All of these things directly costs to the buyer.
Bargaining power of the Buyer
It refers to the pressure that the buyers can exert on businesses to provide them higher quality
products, better customer service, and at lower prices. Strong buyers can make the industry
more competitive, thus decreasing the profit for the seller.
Competitive Rivalry
It is the extent to which the competitive firms within an industry can pressurize each other’s,
thus decreasing the profits. Fierce competition may lead to stealing of profits and market
share within the competitors
Threat of Substitution
It is the availability of a substitute product which the buyers can find instead of a core selling
product.

9. 9
Porter’s Five Forces Model of ITC Dark Fantasy
Britannia, Parle
Bakery
Items, Fast
foods,
Ready-to-
eat
Premium
products
are
increasing
in market
Oreo,
PepsiCo
Inflation in
sugar &
wheat
prices

10. 10
COMPANY INFORMATION
Promoters of the Company and company snapshot
Type Public
Traded as
BSE: 500875
NSE: ITC
BSE SENSEX Constituent
CNX Nifty Constituent
Industry Conglomerate
Predecessor W.D. & H.O. Wills
Founded
August 24, 1910
(as Imperial Tobacco Company of India)
Headquarters Kolkata, West Bengal, India
Key people Y C Deveshwar, (Chairman)
Products
Tobacco, hotels, paperboards & specialty papers, packaging, agri-
business, packaged foods & confectionery, IT, branded apparels,
personal care, stationery, safety matches and other FMCG products
Number of
employees
25,959 (Mar 2013)
Divisions ITC InfoTech, Surya Nepal Pvt Ltd.
Website www.itcportal.com

11. 11
Market Share of the company
Competitor Analysis
Name Market share in %
ITC 35.92
HUL 33.66
Dabur India 5.85
Godrej Consumer 4.90
Colgate 4.29
Marico 4.42
Emami 2.04
P and G 2.46
Gillette India 2.10
Godrej India 1.74
Others 2.58
ITC
36%
HUL
34%
Dabur India
6%
Godrej Consumer
5%
Colgate
4%
Marico
4%
Emami
2%
P and G
2%
Gillette India
2%
Godrej Ind
2%
Others
3%

12. 12
Product/Services offered by the company
ITC's Branded Packaged Foods business is one of the fastest growing foods businesses in
India, driven by the market standing and consumer franchise of its popular brands -
Aashirvaad, Sunfeast, Bingo!, Yippee!, Kitchens of India, B Natural, mint-o, Candyman and
Gum On. The Foods business is today represented in multiple categories in the market -
Staples, Spices, Ready-to-Eat, Snack Foods, Bakery & Confectionery and the newly
introduced Juices & Beverages. ITC's uncompromising commitment to the health and safety
of its consumers ensures adherence to the highest levels of quality, safety and hygiene
standards in manufacturing processes and in the supply chain. The quality performance of all
manufacturing units is monitored continuously online. Going beyond process control, ITC
ensures that quality standards are scrupulously adhered to while choosing ingredients that go
into the preparation of its food products.
ITC's Foods brands delight millions of households with a wide range of differentiated, value-
added products developed by leveraging ITC's in-house R&D capabilities, relevant consumer
insights, a deep understanding of the Indian palate gained from its Hotels business, its agri-
sourcing & packaging strengths, exciting, innovative communication and an unmatched
distribution network.
The business continues to invest in every aspect of manufacturing, distribution and marketing
to ensure that it can leverage emerging opportunities and fulfil its aspiration of being the most
trusted provider of Branded Packaged Foods in the country.

13. 13
News (Last 6/12 month) incl. corporate announcement
Century Textiles up 8% on demerger of cement, paper biz
Shares of Century Textiles and Industries climbed 8.4 percent intraday Wednesday on media
reports that company's textile & cement businesses may be demerged, and paper division
may be sold. India's largest cigarette maker ITC is in talks with Century Textile and
Industries Ltd to buy its paper division in a bid to diversify revenue to non-tobacco
businesses, said two sources directly involved in the deal. However, ITC told CNBC-TV18
that they are not looking at paper business of Century. In separate transactions, Century's
textile division will be merged with Aditya Birla Nuvo and the cement unit will be merged
with UltraTech Cement, as part of the company's restructuring, the sources said. The sources
declined to be named as the deal talks were not public yet. A spokeswoman for Aditya Birla
group declined to comment and a spokesman for ITC did not immediately reply to Reuters
request for comment. Century Textile's officials were not immediately reachable. Axis
Capital spokeswoman did not immediately offered comments. At 11:25 hours IST, the scrip
of Century Textiles and Industries was quoting at Rs 754.75, up Rs 40, or 5.60 percent while
UltraTech Cement rose 1.53 percent to Rs 2,797.50 and Aditya Birla Nuvo jumped 2.5
percent to Rs 1,653.50 on the Bombay Stock Exchange.
ITC in talks to buy Century's paper business
ITC Ltd , India's largest cigarette maker, is in talks with Century Textile and Industries Ltd to
buy its paper division in a bid to diversify revenue to non-tobacco businesses, said two
sources directly involved in the deal. In separate transactions, Century's textile division will
be merged with Aditya Birla Nuvo Ltd and the cement unit will be merged with UltraTech
Cement Ltd, as part of the company's restructuring, the sources said. The sources declined to
be named as the deal talks were not public yet. Axis Bank is advising Century Textile on the
restructuring process, the sources said. A spokeswoman for Aditya Birla group declined to
comment and a spokesman for ITC did not immediately reply to Reuters request for
comment. Century Textile's officials were not immediately reachable. Axis Capital
spokeswoman did not immediately offered comments. Axis Bank stock price On April 23,
2015, at 12:59 hrs. Axis Bank was quoting at Rs 537.95, down Rs 2.4, or 0.44 percent. The
52-week high of the share was Rs 655.35 and the 52-week low was Rs 298.87. The
company's trailing 12-month (TTM) EPS was at Rs 29.59 per share as per the quarter ended
December 2014. The stock's price-to-earnings (P/E) ratio was 18.18. The latest book value of
the company is Rs 161.16 per share. At current value, the price-to-book value of the company
is 3.34.
Hold ITC; may touch Rs 425, says Gaurang Shah
Gaurang Shah of Geojit BNP Paribas Financial Services told CNBC-TV18, "The disclosure
is we have personal coverage on ITC. The only problem in the recent time has been the anti-
tobacco approach by various state governments as well as the government at the center and
the increase in duties which impact the tobacco business vertical of ITC which by default is
the largest contributor to the top line and bottom-line." He further added, "We should see the
stock heading towards Rs 425 from a longer timeframe horizon – that’s about one year plus.
There is also a trigger about the cigarettes business getting hived off and getting listed as
separate entity, so that the negative impact of the cigarette business does fall on the other
business that ITC has plus they have recently invested into new business verticals which will
translate into positivity over longer period of time.

14. 14
SUNFEAST- AN OVER VIEW
Sun “mascot - The brand ambassador reinforcing the positioning of the brand with an essence
“Spread the Smile”
"Sunfeast" - The umbrella brand name introduced in the Glucose, Marie and Cream
segments
“Sunfeast” - To be launched nationally in phases in over one million retail outlets across the
country. “
“Sunfeast" range of biscuits is competitively priced and would include two new product
innovations - Orange flavored Marie and Butterscotch flavored Cream biscuits

15. 15
PRODUCT
A sub brand of ITC Sunfeast. Launched in 2005 as a premium biscuit brand which was a new
trend in Indian market. Acquired the status of a standalone brand, introduced with a tagline
"Pure Indulgence “, later launched with the tagline to “Escape into One “
• Available in 5 variants
• Dark Fantasy chocolate
• Dark Fantasy vanilla
• Choco fills launched in 2011
• Choco Meltz in 2013

16. 16
MARKETING STRATEGY
PEST analysis

17. 17
SWOT analysis of company
ITC is one of India’s biggest and best-known private sector companies. In fact it is one of the
World’s most high profile consumer operations.
. Its businesses and brands are focused almost entirely on the Indian markets, and despite
being most well-known for its tobacco brands such as Gold Flake, the business is now
diversifying into new FMCG (Fast Moving Consumer Goods) brands in a number of market
sectors
Strengths
ITC leveraged it traditional businesses to develop new brands for new segments. For
example, ITC used its experience of transporting and distributing tobacco products to remote
and distant parts of India to the advantage of its FMCG products. ITC master chefs from its
hotel chain are often asked to develop new food concepts for its FMCG business.
ITC is a diversified company trading in a number of business sectors including cigarettes,
hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care,
greetings cards, Information Technology, safety matches, incense sticks and stationery.
Weaknesses
The company’s original business was traded in tobacco. ITC stands for Imperial Tobacco
Company of India Limited. It is interesting that a business that is now so involved in
branding continues to use its original name, despite the negative connection of tobacco with
poor health and premature death.
Opportunities
Core brands such as Aashirvaad, Mint-o, and Bingo! And Sun Feast (and others) can be
developed using strategies of market development, product development and marketing
penetration. ITC is moving into new and emerging sectors including Information
Technology, supporting business solutions.
Per capita consumption of personal care products in India is the lowest in the world offering
an opportunity for ITC’s soaps, shampoos and fragrances under their Wills brand.
Threats
The obvious threat is from competition, both domestic and international. The laws of
economics dictate that if competitors see that there is a solid profit to be made in an emerging
consumer society that ultimately new products and services will be made available. Western
companies will see India as an exciting opportunity for themselves to find new market
segments for their own offerings. ITC’s opportunities are likely to be opportunities for other
companies as well. Therefore the dynamic of competition will alter in the medium-term.
Then ITC will need to decide whether being a diversified conglomerate is the most
competitive strategic formation for a secure future.

18. 18
Segmentation, Target, Positioning
Segmentation Demographic Age and Income class
Targeting The product is mainly targeting adults
mainly, young fun loving adults
Positioning To the middle and high income adults who
are seeking self-indulgence
 Premium biscuit brands
 Heavy campaign are used
 It gives pure chocolate sensual
STP of Sunfeast
Biscuit Segmenting Targeting Positioning
Sunfeast glucose
biscuit
Demographic Children between
the age group 4-14
yrs.
Natural goodness
of wheat
Sunfeast orange
Marie
Education Housewives A very differentiate
offering
Sunfeast Marie
light
Income Children between
the age group 4-14
yrs.
Tight and Crispy
Sunfeast orange
cream
Geographic Children between
the age group 4-14
yrs.
Smooth and yummy
cream
Sunfeast
Butterscotch
Cream
Age Children between
the age group 4-14
yrs.
Smooth and yummy
cream
Sunfeast bourbon
cream
Lifestyle Children between
the age group 4-14
yrs.
Smooth and yummy
cream
Comparison of sales of company for past 3 years
Particular Mar 2014 Mar 2013 Mar 2012
Net Sales 33238.6 29901.27 25147.46
% change in sales 11.16116473 18.90373819

19. 19
BCG matrix
BCG Matrix of ITC
BCG Matrix of Sun Feast, Dark Fantasy
STARS
HIGH MARKET SHARE
&
HIGH MARKET
GROWTH
Sunfeast Dark Fantasy
Choco Fills and Sun feast
snack-foods-Bingo
CASH COWS
HIGH MARKET SHARE
&
LOW MARKET GROWTH
Milky Magic, Marie Light
Original and orange,
Sunfeast ‘Dual’ Dream
Cream
DOGS
LOW MARKET SHARE
&
LOW MARKET
GROWTH
Sun feast Fit-Kit
QUESTION MARKS
LOW MARKET SHARE
&
HIGH MARKET GROWTH

20. 20
Promotional strategy of the company
Growth drivers
 Disposable Income: There is increase in disposable income, observed in both rural and
urban consumers, which is giving opportunity to many rural consumers to shift from
traditional unorganized unbranded products to branded FMCG products and urban
fraternity to splurge on value added and lifestyle products. The increasing salaries,
along with rising trend of perks in the corporate sector at regular intervals, have
increased people’s spending power. As per some research, there is a high correlation
between Disposable per capita and HPC per capita.
 Organized Retail: The emergence of organized retail have led to more variety with
ease in browsing, opportunity to compare with different products in a category, one
stop destination (entertainment, food and shopping) etc., which is playing an important
role in bringing boom in the Indian FMCG market. Currently the modern trade is
capturing 5% of the total retail space, which will increase to 10% and 25% in 2010 and
2025 respectively. Also, as the credit card and organized retail trend picks up, people
won’t think much while buying and buy more.
 Distribution Depth - Rural Penetration: There are 5500 towns and 6.38 Lacs villages
with 2.5Mln and 5Mln outlets respectively. Due to saturation and cut throat competition
in urban India, many FMCG companies are devising strategies for targeting rural
consumers in a big way. Many FMCG companies are focusing on increasing their
distribution network to penetrate with a step by step plan. This is the reason that FMCG
urban market size has dropped from 50% to 29% in last 5 years. The FMCG market
size for semi-urban and rural segment was 19% and 52% respectively for the year 2006-
07. As per FICCI, the FMCG market size for urban, semi-urban and rural for year 2007-

21. 21
08 was expected to be 57%, 21% and 22%, which clearly shows that rural market is the
growth engine for FMCG growth. Though the urban markets are growing too, the
incremental addition in consumer’s households is much more in rural space as
compared to urban markets. The planned development of roads, ports, railways and
airports, will increase FMCG penetration in the long term. 180 million rural and semi-
urban people’s attention has already been diverted towards FMCG products, according
to latest estimates released by industry chamber, Assocham in 2008. The estimated
number of households using FMCG products in rural India has grown from 131 million
in 2004 to 140 million in 2007, according to market research company IMRB. Over
70% sale of FMCG products is made to middle class households and over 50% of
middle class is in rural India.
 Buying Pattern Shift: The crisis of declining FMCG markets during 2001-04 was
driven by new avenues of expenditure for growing consumer income such as consumer
durables, entertainment, mobiles, motorbikes etc. Now, as many consumers have
already upgraded, their income is being directed towards pampering themselves.

22. 22
Consumer behaviour
Consumer perception
PRODUCT
 Innovative product
 A new experience
 High quality , premium brand image
 Better than competitors
PRICE
 Slightly on expensive side ,
 But it’s worth
PACKAGING AND LABELLING
 Highly attractive and appealing
 New and makes product unique
 Gives a more luxurious aura to the brand
Demography study survey of consumers.
Favourable Indian Economy & Demographics: 45% people in India are under 20 years of
age. Per capita disposable income has increased from $550 to $600 in 2007 (9% increase).
GDP is growing at a CAGR between 8 to 9%.In the next five years, affluent and aspirers as a
total will supersede strives and will be dominated by aspirers, as per NCAER.

23. 23
Source:
Simplify360 – A Social Media Analytics Tool
Sunfeast dark fantasy is mainly targeting children and adults, who are basically from middle
and high income background, as it is a bit costly compared to other cookies and biscuits
Branding and positioning
• “To the middle and high income adults who are seeking self-indulgence, the brand
Sunfeast Dark Fantasy is a premium cookie cream biscuit that gives a pure chocolate
sensual indulgence for one to escape reality into exotic fantasies “
• Positioned as a premium biscuit brand
• Took a risk in positioning as the premium space was vacant
• Uncertainty about how customers will react
• had the first mover advantage
• Heavy campaigns were used

24. 24
Packaging
ITC's Packaging Business has 3 major product lines
 Carton Board Packaging
o Printed Cartons
o Fluted cartons
 Flexible Packaging
 Tobacco Packaging
Carton Board Packaging
ITC occupies a leadership position in catering to the needs of the liquor, mobile phones &
food. ITC offers a range of value additions for carton board packaging such as UV offset
printing, Foil Stamping, Embossing, Window patching & lined cartons, etc.

25. 25
Flexible Packaging
Flexible Packaging is an area of high growth, supported with investments in technology and
equipment from world class suppliers. ITC offers a completely integrated solution for
laminates from Pre-press, In-house Blown Film, Cast film, Extrusion Lamination, Hot Melt
Coating, specialty pouching and bag making. This is backed by in house cylinder making and
pre-press support.
Tobacco packaging
ITC offers a range of products line including flip top boxes (Square, Round, Bevelled and
Pillow Pack Hinge lids etc.), Outers, Soft Cup labels, Pack inserts, Printed cork tipping,
printed overwraps, inner frames. ITC makes value added shoulder boxes for cigars and
cigarettes. ITC supplies packaging for over 80 billion cigarettes a year domestically, and
supplies packaging for 15 billion cigarette sticks a year for the export market to leading
tobacco majors.

26. 26
Innovation & New Product Development
ITC has enhanced the value of some of the most favoured brands with superior look-and-feel
packaging, using the best raw materials and process combinations, and an in-house pre-press
Design Centre.
A Product Introduction Process team pioneers packaging innovations. The team uses a unique
process to pilot the client's packaging through its manufacturing system. Specifications are
evolved based on clients' needs based on which a variety of packaging solutions is generated.
The efficacy of the packaging is tested simulating the client's factory conditions. ITC has
contemporary laboratories for its 3 product lines for testing packaging requirements.
Green Packaging
ITC Packaging has pioneered offering of Green Packaging which includes usage of raw
material from sustainable sources and conversion of the same in a facility which is 100%
powered by renewable energy (Wind Energy). This clean energy initiative along with the
other sustainability initiatives helps the Packaging Business to significantly contribute to ITC
being a carbon Positive, Water Positive and Solid Waste Recycling Positive Company.
Quality of the pack
46%
Graphics
8%
Colour
4%
Uniqueness
42%
Importance of packaging for ITC

27. 27
Advertising
Sunfeast Dark Fantasy’s strategy revolves around temptation. With brilliant imagery and
visuals, they have managed to strike decent chord with their mature audiences.
It has a fairly huge Facebook community that manages to keep its audience engaged. Though
Twitter and YouTube are a disappointment.
Platform-wise Strategy
Facebook
Dark Fantasy’s Facebook Page boasts of a 1.1 million member strong with a very impressive
engagement rate to show off. They have used visual content that is literally mouth-watering
and the results are there for all to see.
Source: Simplify360 – A Social Media Analytics Tool
Source: Simplify360 – A Social Media Analytics Tool
But again, the problem with too many image updates is that you don’t get that many
comments. An average update on the page gets more than 1000 ‘likes’ but only 25 comments.

28. 28
Source: Simplify360 – A Social Media Analytics Tool
And we all know that a ‘like’ is not as good as what a ‘comment’ is for any brand which
needs to connect deeper with its audience.
Which is why I would love to see some more interactive updates (and better ones, the present
updates are not that effective) from them.
They can also make do with some nice campaigns on contests to generate some buzz and
activity.
As far as usage of custom tabs are concerned, I found several of them as not working.
Though I must commend them on their smartness of allowing users to download their jingles
as ringtones. Their TVCs have some really great jingles and seeing people gushing about it,
they have done a great job by allowing them to download it.
Twitter
Hugely disappointed with absence of any Twitter handle for Sunfeast Dark Fantasy. The only
Sunfeast branded handle we have on Twitter is @sunfeastcares but I am not sure if it is the
official handle or not.
It has no bio or any branding that can help me decide its veracity.
YouTube
Another downer. If you rely on brilliant visuals and your there is temptation, I am surprised
why you are not using videos. Just images won’t work.
Instead, what we have with us is the YouTube channel of the parent brand where all the
TVCs are stored. So you will find TVCs of Dark Fantasy besides Dream Cream as well.
Hopefully, this 2013 we will see many brands using YouTube to its full potential.
Sunfeast Dark Fantasy’s Campaigns
Alas! They are not having any campaign either. No, there wasn’t any for the holiday season
gone by too.

29. 29
Comparison with Competitors
The competing brand which targets the same TG and has the same ‘temptation’ theme would
be Parle’s Hide & Seek. But Parle is unable to match the quality content that Sunfeast has
come up with and hence the low engagement rate.
Source: Simplify360 – A Social Media Analytics Tool
But Twitter is where Hide & Seek has left Dark Fantasy far behind. Not only there is a
separate handle for Parle Hide & Side, but with some decent branding (the cover photo is
amiss though!) and interactive, they have managed to build a good following of 800+ on
Twitter. And the community is in fact talking to the brand instead of being mute followers.
Comments on the Strategy
Their strategy of temptation has worked nicely and they have built a good audience of mature
adults (instead of kids who’d prefer Oreo).
They have carried their offline personality to the social media world and have succeeded a
good deal in it.
Feedback of the Strategy
The community seems to be loving their content. Not only are they liking it, they are sharing
it with their friends too. An average update gets shared 500 times and I believe this is what
has led to its phenomenal growth on Facebook.
The community also seems to be happy and has no complaints whatsoever from the page.
Source: Simplify360 – A Social Media Analytics Tool
Overall, I like the fact that Sunfeast Dark Fantasy is doing a great job at Facebook but I hope
they start doing some kickass work on Twitter and Facebook too.

30. 30
SHOPS
14%
ADVERTISEMENT
44%
FRIENDS
36%
OTHERS
6%
Importance of advertising for ITC

31. 31
Promotion or communication strategy
PROMOTIONAL STRATEGY
 Sunfeast school program: cover 1000 schools across country, to familiarize children
with Sunfeast brand name and Sunfeast mascot
 Brand ambassador: Shahrukh khan & surya (south actor)
 Official sponsor of WTA tennis championship-Sunfeast open
 Launch of Sachin’s Fit Kit, the first product co-created with brand ambassador
 Other activities:-
On buses, print media , hoardings, TV and radio advertisements
 Heavy promotion
 Spends around 35-40 per cent of its turnover
 Print ads
 TV commercials
 Digital presence
 Outdoor advertisements
 Visual merchandising
 In- flight sampling
The most influential promotion tool
TVC
38%
HOARDINGS
10%
PRINT AD
18%
ONLINE
ADVERTISING
12%
IN STORE
PROMOTION
22%

32. 32
Rural Marketing vs. Urban Marketing
E-Choupal is an initiative of ITC Limited "Indian Tobacco Company", a conglomerate
in India, to link directly with rural farmers via the Internet for procurement
of agricultural and aquaculture products like soybeans, wheat, coffee, and prawns. E-Choupal
tackles the challenges posed by Indian agriculture, characterized by fragmented farms, weak
infrastructure and the involvement of intermediaries. The programme installs computers with
Internet access in rural areas of India to offer farmers up-to-date marketing and agricultural
information.
4A’s of marketing
Availability
Due to poor access to rural markets, poor infrastructure and irregular or no power supply to
rural areas it is a difficult task for firms to make products available all the time in the reach of
the rural consumers
Acceptability
Firms have to understand rural customers’ need. Automotive, salt, FMCG, telecom,
insurance, soft drinks, cigarettes, TV, fans, pressure cooker, washing soaps, tea, blades, tooth
powder are the goods and services which are excelling in the rural market
Awareness
Rural consumer is not much aware about brands. They rely more on local brands. To develop
reliability factor in them towards new brands it is necessary to publicize the brand awareness
by NGOs working actively in the region. This can be done through mouth publicity by any
known resident of the same village also. E-Choupal program of ITC is helping it in making
brand image. Illiteracy makes them unable to read basic text about the brand identification. It
is easy to sale spurious products in rural market
Advertising strategies in rural market
Rural society is mostly agrarian society. Rural people can be easily contacted by a rural
salesperson in afternoon which generally comes under their leisure time. Since most of the
rural people live in joint families therefore almost all the family members especially demand
generators of that household can be contacted directly. This will also build face-to-face
relationship between salesperson and customers.

33. 33
Channel / Distribution strategy
FACTORY
CNF
WHOLESALE
DISTRIBUTOR
WHOLESALE
DEALER BASE
RETAILER
Customer

34. 34
 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.
 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.
Challenges faced in Marketing
 Infrastructure Barrier – Technology Innovation ,cooperation with government bodies
 Knowledge Barrier – Enhance publicity and training , simplify inference e- Choupal
 Cost – Extended lifecycle of Equipment ,increase revenue by adding advertisement

35. 35
BUSINESS FINANCE
Gross Profit and Net Profit Margin of the company
Gross Profit Margin
Formula= Gross Profit/ Net sales, (Gross profit= Net Sales- Direct Cost)
2014 (Rs in Crores) 2013 (Rs in Crores) 2012 (Rs in Crores)
Net Sales 33238.6 29901.27 25147.46
Direct Cost 16836.79 15406.27 12461.17
Gross profit 16401.81 14495 12686.29
GP Ratio 0.493457 0.484762 0.504476
0
5000
10000
15000
20000
25000
30000
35000
Net Sales
Direct Cost
Gross profit
2014 (Rs in Crores) 2013 (Rs in Crores) 2012 (Rs in Crores)

36. 36
Net Profit Margin
Formula= PAT/ Net sales
2014 (Rs in Crores) 2013 (Rs in Crores) 2012 (Rs in Crores)
Net Sales 33238.6 29901.27 25147.46
PAT 8785.21 7418.39 6162.37
Net profit ratio 3.78 4.03 4.08
0
5000
10000
15000
20000
25000
30000
35000
Net Sales
PAT
2014 (Rs in Crores) 2013 (Rs in Crores) 2012 (Rs in Crores)

37. 37
Direct and indirect costs of the company – change in comparison to previous year
Formula: (Current year- Previous year) /Previous year*100
Direct Cost 2014(Rs in Crores) 2013(Rs in Crores)
Raw Materials Consumed 13284.75 12312.13
Power & Fuel Cost 613.19 550.11
Employee Cost 1608.37 1387.01
Other Manufacturing Expenses 1330.48 1157.02
Percentage Change 0.15
Indirect Cost 2014(Rs in Crores) 2013(Rs in Crores)
General and Administration Expenses 1089.35 1234.39
Selling and Distribution Expenses 1982.31 2088.32
Miscellaneous Expenses 983.04 800.09
Percentage Change -0.0165
0
2000
4000
6000
8000
10000
12000
14000
Raw Materials Consumed Power & Fuel Cost Employee Cost Other Manufacturing
Expenses
2014(Rs in Crores) 2013(Rs in Crores)
0
500
1000
1500
2000
2500
General and Administration
Expenses
Selling and Distribution Expenses Miscellaneous Expenses
2014(Rs in Crores) 2013(Rs in Crores)

38. 38
Fixed assets added during the year
Formula= Current year- Previous year
2014(Rs in
Crores)
2013(Rs in
Crores)
Difference(Rs in
Crores)
Land Freehold 1089.18 1052.25 36.93
Land Leasehold 241.35 227.74 13.61
Buildings Freehold 3872.96 3562.23 310.73
Licensed Properties -
Building Improvement 58.8 56.56 2.24
Plant and Equipment 12094.75 10925.17 1169.58
Furniture and Fixtures 683.52 644.35 39.17
Vehicles 105.67 97.33 8.34
Office Equipment 27.4 21.03 6.37
Railway Sidings etc. 1.97 1.72 0.25
0
2000
4000
6000
8000
10000
12000
14000
2014(Rs in Crores) 2013(Rs in Crores)

39. 39
Working Capital requirement for the year
Formula= Current Asset- Current Liabilities
2014(Rs in Crores)
Total Current Assets 14617.47
Total Current Liabilities 11504.32
Working Capital 3113.15
Debt/Equity ratio of the company and its implications
Formula= Total Debt/ Shareholder's Funds
2014 (Rs in Crores)
Total Debts 166.09
Shareholder's Funds 26262.02
Debt Equity Ratio 0.006
Debt equity ratio is usually calculated to find out the nature of management of the
organization, it is said that if Debt equity ratio is more than 0.5, then the management is
aggressive in nature, and vice versa. In case of ITC it is 0.006, which is far below 0.5, so we
can state that the management is not aggressive in nature and does not want to take any risk.
0
5000
10000
15000
Total Current Assets Total Current Liabilities Working Capital
2014(Rs in Crores)

40. 40
Top line and bottom-line
Top line is comparison of Net Sales
2014(Rs in
Crores)
2013(Rs in
Crores)
2012(Rs in
Crores)
2011(Rs in
Crores)
2010(Rs in
Crores)
Net Sales 33238.6 29901.27 25147.46 21458.98 18153.19
% change 11.16 18.90 17.19 18.21 -
Bottom line is comparison of PAT
2014(Rs in
Crores)
2013(Rs in
Crores)
2012(Rs in
Crores)
2011(Rs in
Crores)
2010(Rs in
Crores)
PAT 8785.21 7418.39 6162.37 4987.61 4061
%change 18.42 20.38 23.55 22.82
2014(Rs in
Crores)
2013(Rs in
Crores)
2012(Rs in
Crores)
2011(Rs in
Crores)
2010(Rs in
Crores)
33238.6
29901.27
25147.46
21458.98
18153.19
NET SALES
2014(Rs in
Crores)
2013(Rs in
Crores)
2012(Rs in
Crores)
2011(Rs in
Crores)
2010(Rs in
Crores)
8785.21
7418.39
6162.37
4987.61
4061
PAT

41. 41
DuPont Analysis
Operating Efficiency
Formula: Net Profit/Sales*100
Assets Usage Financial Leverage
Formula: Sales/Total Assets Formula: Total assets/Shareholder fund
Return on Equity
Formula: Net Profit/ Shareholders Fund* 100
Calculation:
Operating Efficiency X Assets Usage X Financial Leverage = Return on Equity
(Net Profit/Sales*100) X (Sales/Total Assets) X (Total assets/Shareholder fund) =
(Net Profit/ Shareholders Fund* 100)
2014 2013 2012 2011 2010
Operating Efficiency 0.264 0.248 0.245 0.232 0.224
Assets use efficiency 1.258 1.330 1.324 1.328 1.281
Financial Leverage 1.006 1.009 1.011 1.013 1.008
ROE 0.335 0.333 0.328 0.313 0.289
 The net profit has increased from 0.224 in 2010 to 0.264 in 2015, which reflects a
good indication of performance for the company
 Assets turnover ratio has also detoriated from 1.281 in 2010 to 1.258 in 2014, which
is not good and it indicates that the company is not properly utilizing its assets for its
operations.
 Financial leverage has though decreased, which was 1.008 in 2010 to 1.006 in 2014,
but it has almost remained constant in the last consecutive years, this means that the
company is not focusing much on their capital, and not gone for much investment
either through equity or through debt.
 ROE has increased from 28.9% in 2010 to 33.5% in 2014 which is a slight
improvement, and it says that the company is doing well, as they are providing more
than the expected or benchmark return which is said to be 30% and above.

42. 42
HUMAN RESOURCE MANAGEMENT
Organization Structure

43. 43
Job Description and Job Specifications posted by the company
Career in Sales
Students selected for a career with ITC will join as Sales Trainees. They will be on probation
for a period of one year. During the probation period, they will undergo training and upon
successful completion of training they will be positioned as Area Executives. Before
applying, students must keep in mind that the end of their probationary period is conditional
upon a confirmation review. Thus, it is important that they have a high learning orientation.
As Sales Trainees, they will be exposed to the Selling and Distribution process across
channels in ITC. They will be expected to visit retail outlets on a daily basis in different
localities in the city and learn on ground.
Once confirmed as Area Executives, they will be responsible for the turnover of an entire
section allocated to them. They will be accountable for sales & distribution, cost control,
adherence to systems and processes and training of their teams of that section. They will also
be expected to deal with distributors, supervisors and salesmen and hence must display strong
leadership qualities.
Location
Though the candidates will be employed for a particular location, they should be open to
relocation across any geography basis the organization’s needs.
Challenging Career Opportunities
Area Executives will be rotated across different channels in ITC. Basis their good
performance they can look at being promoted as Area Managers, and beyond. Please note that
growth across the organization is factor of performance and mobility.
Qualifications
We are looking for final year students currently pursuing Masters in Business Administration
or its equivalent with specialization in Marketing.
Selection Process
The selection process will entail shortlisting basis academic results, written test, group
discussion and personal interview.
Remuneration
Gross remuneration will be Rs. 3.5 Lacs per year for Sales Trainees and Rs. 6.1 Lacs (Fixed –
4.7 Lacs, Variable – Average of 1.4 Lacs) per year for Area Executives.

44. 44
Training needs of the company
Improved Productivity: The key purpose of any training is to improve effectiveness and
productivity. Everyone needs training to do their jobs well. Internal training begins with an
induction program, enabling the employee to learn how to do the job, its purpose and how it
fits into the corporate strategies.
Relevance: By training staff internally, an organization can customize the learning to fit
business needs exactly, adapting some elements and omitting any considered unnecessary for
the job. This enables the employees to focus more clearly on the organizational goals and
strategies, while sensing their individual contributions to its success.
Employee Motivation and Retention: Training as a reward is an effective motivator, and
happy employees are more productive and less likely to think about leaving. A structured
internal training program shows staff the organization recognizes their worth and it is in their
interests to stay. Keeping the staff motivated and happy is one of the best public relations
tools that an organization can have.
Costs: Internal training can be a lot less expensive to develop than training from external
providers. In-house courses and programs can be costly to set up initially, but in the long term
they can be re-used and adapted as required without further investment. Among the lowest
cost internal training strategies are the informal techniques such as using mentors and peers
for on-the-job training. Cascade training can help to make the most of any necessary external
training. Trainees are required, on completion of an external course, to share some of the
most important aspects of their new expertise with colleagues through presentations or
written reports.

45. 45
Organization culture (as per employee reviews or research findings)
Working in ITC, the pros and cons are:
Pros
 "It is a very good place for work life balance" (in 5 reviews)
 "We are provided very good working culture with essence of learning" (in 8 reviews)
 "A century old, so it has the BRAND NAME" (in 7 reviews)
 "Great place for fresher’s to start career, lots of experience" (in 7 reviews)
 "A great learning ground for youngsters who start their careers as management
trainee" (in 6 reviews)
Cons
 "Work-life balance, I don’t see anything other than this for this column" (in 25
reviews)
 "Slow growth due to extremely low attrition at senior level" (in 8 reviews)
 "Slow decision making in simple issues at times" (in 6 reviews)
 "No freedom, lot of politics, no meritocracy, lack of systems and good culture" (in 3
reviews)
 "No work life balance in company" (in 3 reviews)

46. 46
Example:

47. 47
CONCLUSION
After completing the entire report, what I can say, is that ITC focuses on innovation and
promotion of its brands, which is highly required in current scenario, so they spend a lot on
media advertisement and sponsorship, to keep a visibility in the market, but if we look at the
financial statistics we will see, that they have low debt equity ratio, which says that the
management is now aggressive and in not looking for expansion as of now. Their ROE has
increased which states that they are performing well and utilising their resources properly.
And as far the organization culture, they have a good culture and environment for its
employees, gives respect to them, and indulge them in various activities, which motivate
them to work hard and give a high productivity for the company.
ITC is relying too much on their cigarette brand which is not good, as the industry forecast is
not good and is predicted to decline in the future, so if ITC wants to progress and retain their
position in the market then they will have to focus on FMCG, and transfer their dependence
toward the FMCG industry, which will definitely progress in the future.
Overall ITC is doing well as for my opinion.

48. 48
BIBLIOGRAPHY
 http://www.mbaskool.com/brandguide/food-and-beverages/479-ITC-darkfantasy.html
 www.ITC.com/Annual-Reports-2013-14
 http://jobsearch.naukri.com/job-listings-Sales-Officer-Modern-Trade-Pune-Dabur-
India-Limited-Pune-3-to-8-years-
170415003462?xp=4&qp=Dabur%20india&srcPage=s
 http://viragbrand.blogspot.in/2012/12/dabur-chyawanprash-vs-himani-sona.html
 http://fmcgmarketers.blogspot.in/2008/07/fmcg-growth-drivers-and-category-
trends.html
 http://www.socialsamosa.com/2013/01/social-media-strategy-review-sunfeast-dark-
fantasy/
 http://www.moneycontrol.com/news/buzzingstocks/century-textiles8demergercement-
paper-biz_1364405.html
 http://www.aceanalyser.com/
 IBEF.org
 http://www.glassdoor.co.in/Reviews/ITC-Reviews-E40052.htm