ITC began as a tobacco company in 1910 but has since diversified into various industries including foods, hotels, paper, and personal care products. It aims to reduce dependence on cigarettes through international quality products and strong brand portfolios. ITC analyzes its strengths, weaknesses, opportunities, and threats and launches new FMCG initiatives. These include branded packaged foods, lifestyle retailing, personal care products, education and stationery, safety matches, and incense sticks. ITC's success is attributed to segmentation, leveraging group synergies, tailored communication strategies, selective brand extensions, strategic brand ambassadors, and distinctive packaging.

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ITC Revolution in FMCG Industry presented by
GROUP - H

2. HISTORY
 ITC was incorporated on August 24,1910 under the
name of IMPERIAL TOBACCO COMPANY of India
ltd’.
 In 1974 company’s name was changed to INDIAN
TOBACCO COMPANY LTD.
 From September 18,2001, company’s name has
effectively become ITC Ltd.
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3. ABOUT ITC
 Founded August 24,1910
 Headquarters Virginia House, Kolkata
 Chairman Mr. Y.C.Deveshwar
 Industry Tobacco, foods, hotels,
stationery, greeting cards,
personal care, IT etc.
 Net Sales Rs 16200 crores
 Employees 25,000 app.
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4. ITC INDUSTRY STRUCTURE
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5. From a leading cigarette manufacturer to an umbrella group that
offers a diversified product mix”
ITC's diversification into related and unrelated areas
in recent years
Why they did this ?
•Huge Imposition of Govt. on Cigarette Market
•To reduce dependence on cigarette business
How they did ?
•The Company’s relentless efforts to create value through
International quality products.
•Significant investments in technology and product development
•Strong portfolio of brands have enabled it to maintain its leadership
position in terms of market standing and share.
•Customization of product 5
•Brand image enhancement

6. SWOT ANALYSIS
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7. FUTURE GROWTH & VALUE CAPTURE
New FMCG Initiatives
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8. FMCG BUSINESS INITIATIVES
BRANDED PACKAGED FOODS
 Aashirvaad Atta:
 Current market leader amongst national branded players; leverages
the e-choupal network for cost-quality optimisation and region
specific offerings
 Sunfeast Biscuits:
 Differentiated & innovative products; continues to build consumer
franchise; distributed & outsourced supply chain being ramped up
 Number of innovative products in the pipeline shows the
capabilities of the ITC R&D Centre
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14. FMCG BUSINESS INITIATIVES
LIFESTYLE RETAILING
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15. FMCG BUSINESS INITIATIVES
LIFESTYLE RETAILING
 Entered the Lifestyle Retailing business with the Wills Sport range of
international quality relaxed wear for men and women in 2000
 Later expanded its range to include Wills Classic formal wear (2002)
 Men's wear brand :- John Players, in 2002
 Wills Clublife evening wear (2003).
 Title partner of the country's most premier fashion event - Wills
Lifestyle India Fashion Week in 2006.
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17. FMCG BUSINESS INITIATIVES
PERSONAL CARE PRODUCTS
 Brand wise Highlights
 Essenza Di Wills (Super Premium) – Portfolio’s premium
imagery augmented with launch of ‘Aqua’ for men in fine
fragrances and grooming range
 Fiama Di Wills (Premium) – Launched with
Shampoos/Soaps/Shower Gels/Conditioners
 Vivel Di Wills and Vivel (Mid) – Soaps and Shampoos
 Superia (Popular) – Soaps and Shampoos
 Products well received in the market, rapidly gaining customer
acceptance
 Supported by investments in brands – celebrity endorsements
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20. FMCG BUSINESS INITIATIVES
EDUCATION & STATIONERY PRODUCTS BUSINESS
 Leverages print and paper know-how. Forward linkages with new
paper capacity.
 An emerging market in India - growth driven by increasing cross-
cultural exposure
 Robust distribution network in place to scale up the Stationery
business significantly
• ‘Classmate’ brand already the most widely distributed brand in India
• Educational products launched
 Serves to expand the width of ITC’s FMCG distribution capability
with negligible incremental investment.
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21. FMCG BUSINESS INITIATIVES
SAFETY MATCHES
 Current industry consumer spend estimated at Rs. 1250 crores
p.a. for 24 billion match boxes
 Fragmented supply base arising from policy of reservation for
small scale industry
 ITC markets its brands with value added products across each
price point
• Support SMEs with complementary marketing strengths
 ‘AIM’ – India’s largest selling Safety Matches brand
 Successful acquisition of WIMCO Ltd. by Russell Credit
(shareholding as at 31/03/08: 96.82%)
• Key brands: Homelite,
• Ship, 21
• Cheetah Fight etc.

22. FMCG BUSINESS INITIATIVES
INCENSE STICKS (AGARBATTIS)
 Current industry consumer spend estimated at over Rs. 900 crores p.a.
 Fragmented supply base arising from policy of reservation for small scale
industry
 ITC markets its brands with value added products across each price point
 Support cottage sector with complementary marketing strengths
 ‘Mangaldeep’ : the only National brand in the country
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23. SIX SUCCESS MANTRAS…..
 Segmentation :- 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 meant for
 Group synergy :- Once the five products were created and communication
strategies set, ITC leveraged its properties like hotels, foods and apparel
store network to retail these brands.
 Communication strategy :- Like HUL, these brands sport Western names,
and different communication. Essenza & Fiama, meant for the elite, have
English communication, while Vivel & Superia use Hindi.
 Brand extensions :- Selective extensions as it doesn’t want to confuse
consumers with too many irrelevant brand extension & sub-brands. The
Essenza range is the only exception.
 Brand ambassadors :- 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 TG is the real king.
 Packaging :- 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
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stand out from competition.

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