ITC has diversified from its origins as a tobacco company in 1910 into a conglomerate with businesses in FMCG, hotels, paper, agriculture, and IT. ITC launched its food division in 2002 with brands like Candyman and Aashirvaad atta. In 2003, ITC entered the biscuits segment with Sunfeast. Since then, Sunfeast has grown to become a market leader through new product innovations, a strong distribution network of over 1.8 million outlets, and promotional activities including brand ambassadors. ITC follows a diversification strategy to build footholds in fast growing Indian sectors and tap new profit opportunities beyond its traditional tobacco business.

1. ITC – CREATING ENDURING VALUE

2. ITC LTD PROFILE
 History And Evolution of ITC Ltd
 ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited
 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
 In recognition of the Company's multi-business portfolio encompassing a wide
range of businesses - Fast Moving Consumer Goods, Hotels, Paperboards &
Specialty Papers, Packaging, Agri-Business and Information Technology
 ITC's Packaging & Printing Business was set up in 1925
 In 1975, the Company launched its Hotels business with the acquisition of a hotel
in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola' (now
renamed My Fortune, Chennai).

3.  In 1979, ITC entered the Paperboards business by promoting
ITC Bhadrachalam Paperboards Limited
 In 1990, leveraging its agri-sourcing competency, ITC set up the
Agri Business Division for export of agri-commodities
 ITC also entered the Lifestyle Retailing business with the Wills
Sport range of international quality relaxed wear for men and
women in 2000
 ITC launched line of premium range of notebooks under brand
Paperkraft in 2002
 In 2002, ITC also entered the confectionery and staples
segments with the launch of the brands mint-o and Candyman
confectionery and Aashirvaad atta (wheat flour)
 In 2003, ITC witnessed the introduction of Sunfeast as the
Company entered the biscuits segment
 ITC entered the fast growing branded snacks category with
Bingo! in 2007
 In 2010, ITC launched Sunfeast Yippee! to enter the Indian
instant noodles market

4. VISION Sustain ITC's position as one of India's most valuable corporation
through world class performance, creating growing value for the Indian economy and
the Company’s stakeholders
MISSION To enhance the wealth generating capability of the
enterprise in a globalizing environment, delivering superior and
sustainable stakeholder value
CORE VALUES ITC's Core Values are aimed at developing a customer-focused,
high-performance organization which creates values for all its stakeholders

5. BUSINESS PORTFOLIO --- ITC LTD
ITC
FMCG HOTELS
AGRI BUSINESS,LEAF
TOBACCO , AGRI
COMMODITIES
PAPER BOARD, PAPER
BOARD AND PACKAGING
CIGARETTE
PERSONAL CARE
PACKEGED FOOD
PRODUCTS

6. PRODUCT MIX OF ITC LTD (FMCG Sector)

7. TRIPLE BOTTOM LINE PERFORMANCE –
(Turnover and profits as on 17TH July 2012 )
 Gross Income for the year grew by 14.9% to over Rs. 36,000 crores. Profit
before tax increased by 22.4% to over Rs. 8,800 crores while Net Profits grew
by 23.6% to over Rs. 6,100 crores.
 The non-cigarette segment net revenue growing 12-fold from about Rs. 1,360
crores in 1996 to Rs. 16,150 crores today.
 As a result, 57% of net segment revenue of your Company is now from
businesses other than cigarettes
 Your Company is today acknowledged as one of India's most valuable
corporations. Market capitalisation, which stood at Rs. 5,570 crores in 1996,
has multiplied over 35 times to touch Rs. 2 lakh crores.
 ITC's traditional businesses have touched a turnover of over Rs. 5,500 crores
in a relatively short span of time.
 The topline from this segment is expected to triple over the next 5 to 7 years
to a level of Rs. 15,000 crores,

9. HOW HAS THE FINANCIAL PERFORMANCE OF
ITC LTD BEEN ?

10. ACHIEVEMENTS
• ITC is the first Indian company and the second in the world to win the
prestigious Development Gateway Award
• ITC is the first Corporate to receive the Annual FICCI Outstanding Vision
Corporate Triple Impact Award in 2007
• ITC was conferred the World Business and Development Award 2012 at
the historic Rio+20 United Nations Summit which concluded recently
• ITC has won the Golden Peacock Awards for 'Corporate Social
Responsibility (Asia)' in 2007
• The Business Today Award for the Best Managed Company in recognition
of its outstanding initiatives in the consumer products segment.
• The only Indian FMCG company to have featured in the Forbes 2000 list.

11. SWOT ANALYSIS
Strength
 Strong Financial
Performance
 Products Portfolio
 Distribution Network
 Environmental Friendly
 Research & Development
 Socially Responsibility
 Brand Equity
Weakness
 Dependency on the tobacco
business
 Not present in many
important sectors
 Local Company
Opportunities
 Leveraging its brand
equity
 Right size at the right time
 The unique reach and
distribution network of E-
choupal:
 Synergies across
businesses and leveraging
domain expertise for
growth in other sectors
Threats
 Competition
 Pressure groups and
Government Policy
 General threats

12. SUNFEAST- AN OVER VIEW
 Sun"mascot - The brand ambassador reinforcing the positioning of the
brand with an essence “Spread theSmile”
 "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
 Product innovation

14. SUNFEAST RANGE OF BISCUITS CONTD…

15. PRICING STRATEGY OF ITC LTD (FOOD DIVISION)
• The pricing of the ITC food division depends upon the Customers’
demand schedule, the cost function and the competitors’ price.
• The pricing of the company is such that it caters to the need of all
income groups of people but special provision has been kept for Low
and middle income group, and their pricing are competitive with
respect to other players like Britannia, Parle and Briskfarm.
• The company follows the Going rate pricing that is the price of the
product depends upon the competitors price. The firm chooses pricing
more or less the same as Market leader.

16. PRICING STRATEGY FOR SUNFEAST
 Sunfeast look at a two prolonged strategy:-
 High margin
(High margins in cream variants)
 High volumes
 (High volumes from the
Marie and Glucose segments)
 Examples
sunfeast glucose (200 gm): 20/-
sunfeast marie light (130gm : 10/-
Sunfeast dream cream (82): 10/-

17. DISTRIBUTION OF FOODS PRODUCTS

18. DISTRIBUTION NETWORK FOR SUNFEAST
 The company used its existing network of convenience stores: the
company’s name for the hole-in-the-wall pan-beedi shops for Sunfeast.
 The company also looked at grocery stores and other retail formats.
 The company says the brand is now available in nearly 1.8 million outlets.
14 manufacturing units
 The company has extended its manufacturing capacity by setting up three
new biscuit plants in UP and West Bengal to focus on supply chain
management strategy to enhance product freshness, market servicing and
margins

19.  Sunfeast school programme: 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
PROMOTIONAL STRATEGY

20. INDIAN BISCUIT INDUSTRY
• Indian Biscuits Industry came into limelight after 20th century when the
urbanized society called for ready made food products at a tenable cost.
• It is assumed as sick-man's diet in earlier days .
• Bread and biscuits is the two major product of the bakery industry and covers
around 80% of the total bakery market, out of which
• Industry size is about 14500 crore
• biscuit covers up to 70% of the total production
• The organized and unorganized sector of the biscuit
• industry is in the proportion of 65% : 35%

21. INDUSTRY CONSISTS OF
Major Players Minor Players Emerging Players
Foreign Niche
Players
United
Biscuits(Bitain)
Danone (French
food giant)
Nubisco
Unibic (tied up
with Food Bazaar
launched Tasty
Treat
Parle
Britannia
ITC
Surya Biscuits Pvt
Ltd
priyaGold
Anmol
Kraft’s Cadbury
Oreo
PepsiCo : "protein-
rich “ Aliva
launched 2009

22. BRITANIA
INDUSTRIES
LIMITED
PARLE PRODUCTS
PVT LIMITED
SURYA FOOD AND
AGRO LIMITED
MAJOR COMPETITORS
Established in 1896
90% of Britannia’s
annual revenue of
Rs2,200 crore comes
from biscuits
KEY PRODUCTS:
TIGER, GOODDAY,
BORBON, 50-50,
MARIE GOLD,
TIME PASS
Established in 1929
the largest selling brand
of biscuits in the world
70% market share in
India in the glucose
biscuit category
KEY PRODUCTS:
Parle-G, Hide and Seek,
Krack Jack, Monaco,
Parle Marie, Milk
Shakti, Parle 20-20.
Incorporated
1992Manufacturing and
selling of biscuit under
brand “ PRIYAGOLD”
in octoer1993. Key
products: Classic
Cream, Butter Bite,
Bourbon, Marie Lite,
Magic Gold, CNC ,
Sanack, zig zag,

24. STRATEGIC COMPARISON

25. • Biscuit Industry Market (in crore)
• PER CAPITA CONSUMPTION IN
KG
AS PER FEDERATION OF BISCUIT MANUFACTURERS’ OF
INDIA (FBMI)
0
1
2
3
4
5
6
7
8
9
10
India USA UK Japan China
2.1
10 10
7.5
1.9
0
2000
4000
6000
8000
10000
12000
14000
16000
2004-06 2007-08 2008-09 2009-10 2010-11
4000
6800
9830
11206
14500

26. • Annual growth rate of biscuit
industry
• Annual production (in lakh
metric tonnes)
INDIAN BISCUIT MANUFACTURERS’ ASSOCIATION (IBMA)
0%
2%
4%
6%
8%
10%
12%
14%
16%
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
14%
13%
15%
10%
14%
15%
0
2
4
6
8
10
12
14
16
18
20
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
11
12.54
14.29
16.14
17.44
16.57
18.25
19.6

27. BCG MATRIX: OBJECTIVES
• BCG matrix is a tool to determine the future strategic plan for each
SBU
• SBU can be a company division, a product line or even individual
brands
• Companies have multiple products and businesses under their umbrella
• While preparing the marketing strategy companies need to decide about
adding new products or identify products should no longer be retained.
• So the first step is to identify the various Strategic Business Units
(SBUs) in a company portfolio.

28. BCG Market share/Market Growth Matrix
STARS
generate
considerable income
Strategy: Invest more
fund for future
growth
Question mark
Have potential to
become stars or cash
cows
Strategy: Either invest
more fund for growth
or disinvesting
Cash flow
Generate strong cash
flow
Strategy: milk
profits to finance
growth of Stars or
Question marks
Dog
Generate little profits
Strategy: Consider
withdrawing
INDUSTRYGROWTHRATE RELATIVE MARKET SHARE
HIGHLOW
LOWHIGH

29. ITC BCG MATRIX
STARS
HIGH MARKET
SHARE
&
HIGH MARKET
GROWTH
Hotels, packaging &
Paper boards, e-choupal
CASH COWS
HIGH MARKET
SHARE
&
LOW MARKET
GROWTH
FMCG-Cigarette
DOGS
LOW MARKET
SHARE
&
LOW MARKET
GROWTH
ITC infotech
QUESTION MARKS
LOW MARKET
SHARE
&
HIGH MARKET
GROWTH
FMCG others
HIGH
GROWTH
LOW
GROWTH
HIGH MARKET SHARE
LOW MARKET SHARE

30. SUN FEAST BCG MATRIX
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
HIGH
GROWTH
LOW
GROWTH
HIGH MARKET SHARE
LOW MARKET SHARE

31. PORTER’S FIVE FORCES

32. PORTER’S FIVE FORCES ANALYSIS
Major players dominate
the Indian Market.
High competition to
capture maximum market
share
Unorganized sector cannot
compete with major
players in the case of
Advertising
THREATS OF NEW
ENTRANTS
Low entry barriers because of
Heavy competition from major
players
BUYERS
BARGAINING
POWER
High because of,
Availability of many
biscuits from low,
moderate prices
Availability of biscuits
from non organized
sector
Brand Loyalty makes
buyers more powerful
in the case of new
entries
THREAT OF SUBSTITUTES
High Growing packaged industry
and bread industry
Traditional Indian homemade
snacks
THREAT FROM
SUPPLIERS
In the case of major
players bargaining
power of suppliers is
very low as they
dictate the prices.
The ingredients are
basic commodities
such as wheat , sugar
etc.

33. Bakery Items, Fast
foods, Ready-to-eat
Britannia, Parle
Oreo, PepsiCo
Inflation in sugar &
wheat prices
Premium products
are increasing in
market
PORTER’S FIVE FORCES SUN FEAST

34. STP OF SUNFEAST
Biscuit Segmenting Targeting Positioning
Age
Sunfeast orange
Marie
Sunfeast
marielight
Sunfeast orange
cream
Sunfeast
Butterscotch
Cream
Sunfeast
bourbon cream
A very differentiate
offering
Children between
the age group 4-14
yr
Children between the
age group 4-14 yr
Children between the
age group 4-14 yr
Children between the
age group 4-14 yrs
Housewives
Children between
the age group 4-14
yrs
Smooth and yummy
Cream
Smooth and
yummy Cream
Smooth and yummy
cream
Natural goodness of wheat
Tight and CrispyIncome
Education
Demographic
Geographic
Sunfeast
glucose biscuit
Lifestyle

35. PRODUCT FOCUS
 high quality
 great tasting biscuits
 With Different Segments
 Brand Essence "Spread the Smile"

36. DIVERSIFICATION
Indian rural and agri. market is 70% to other resources in India ,but only 30 %
of GDP is from agriculture sector . ITC realized it that their cigarette business
has a limit future which they wont be able to tap profit and their expansion
plans. So diversification was needed in any case, to build a foothold in Indian
market.
FMCG being the fourth largest sector in the field which is expanding at a
very fast pace and it has huge potential , along with the benefit that it can
be accrued by organizing the existing fragmented market accrued by
market leading to concept of ‘one stop shop’.
Further India being one of the largest economies with the benefit of its vast
market ,it attracted ITC to the expand its operation in various areas of
hospitality, FMCG ,Greeting cards Branded Apparels etc.

37. PRICING STRATEGY
Essentially, Parle plays a high volume, low margin game.
But Sunfeast look at a two-pronged strategy, High margins in cream variants
and volumes from the Marie and Glucose segments. For instance, cream biscuits
from both Sunfeast cost Rs10 for 100 grams.
 Parle, however, only charges Rs 5 for its cream variants.
Except for Hide & Seek, all of Parle 'products lie in the price range between Rs 4
and Rs 6for 100 gram packs.
There is Two method of Pricing
1. Low Margin
2. Two-Pronged Strategy

38. In August 2003, a month after Sunfeast launch, the company
undertook a major sampling exercise to promote the product. For two
years then, the brand did all the usual rounds -- riding behind buses,
blocking television spots, booking that corner space in your favorite
newspaper and soon.
BRAND PRAMOTION
The company says the brand is now available in nearly 1.8million outlets, Well
differentiated advertisements, some which showed a complete cream world with
cream rivers, cream mountains and cream trees, were targeted at kids watching
cartoon channels. In April 2005, Sunfeast launched its major campaign. It signed
on Hindi film actor, Shahrukh Khan as its brand ambassador

39. SUGGESTIONS AND RECOMMENDATION
• Sun feast has to give attention towards Advertisement.
• Sun feast has to maintain its status by providing more and more
facilities.
• Sun feast has to develop more variety of biscuit so that the customer
could not return in case of lack of choice.
• The company should also give emphasis on other gift scheme

40. DIMPLE
J1 Batch
IIPM