ITC Limited is an Indian conglomerate headquartered in Kolkata, West Bengal. It has diversified business segments including FMCG, hotels, paperboards & packaging, agri business, IT, and tobacco. ITC sells 80% of cigarettes in India and uses various strategies like push, pull, and competitive strategies like first mover and late mover approaches. It has a vision to be one of India's most valuable corporations through world-class performance and creating value for stakeholders. ITC implements its strategies through a 3-tiered governance structure and pursues growth through mergers, strategic alliances, joint ventures, and acquisitions.

1. Presented By:
Group 2
Maria Khatoon (PGFA1528)
Monika Trivedi (PGFA1529)
Rupali Singh (PGFA1543)
Shilpee (PGFA1549

2. Introduction
ITC Limited or ITC is an Indian conglomerate
headquartered in Kolkata, West Bengal. Its
diversified business includes five segments:
 Fast-Moving Consumer Goods (FMCG)
 Hotels
 Paperboards & Packaging
 Agri Business
 Information Technology
 Tobacco

3. Product and Brand
“Cigarette”
 ITC Ltd sells 80 percent of the cigarettes in India
 275 million people use tobacco products
 The total cigarette market is worth close to $6
billion (around Rs.65,000 Crore)

4. Vision and Mission
VISION »
 Sustain ITC's position as one of India's most valuable
corporations 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 globalising environment,
 Delivering superior and sustainable stakeholder
value.

5. ITC's Core Values
 ITC's Core Values are aimed at developing a customer-focused, high-performance organisation which creates
values for all its stakeholders.
Trusteeship
 As professional managers, we are conscious that ITC has been given to us in 'trust' by all our stakeholders.
We will actualise stakeholder value and interest on a long term sustainable basis.
Customer Focus
 We are always customer focused and will deliver what the customer needs in terms of value, quality and
satisfaction.
Respect for People
 We are result oriented, setting high performance standards for ourselves as individuals and teams. We will
simultaneously respect and value people and uphold humanness and human dignity.
 We acknowledge that every individual brings different perspectives and capabilities to the team and that a
strong team is founded on a variety of perspectives.
 We want individuals to dream, value differences, create and experiment in pursuit of opportunities and
achieve leadership through teamwork.
Excellence
 We do what is right, do it well and win. We will strive for excellence in whatever we do.
Innovation
 We will constantly pursue newer and better processes, products, services and management practices.
Nation Orientation
 We are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals, we will
make no compromise in complying with applicable laws and regulations at all levels.

6. OBJECTIVES
 To build relationship with customer based on trust
and mutual benefit
 To uphold highest ethical standard in conduct of
our business
 We create the nurture a culture that supports
flexibility, learning and its proactive to change
 To chart a challenging career for employees with
opportunities for advancement and rewards
 To value the opportunity and responsibility to make
a difference in people’s lives

7. Strategy Generation
 Focus on the chosen business portfolio
o FMCG; Hotels; Paperboards, Paper & Packaging; Agri
Business; Information Technology
 Blend diverse core competencies residing in various
Businesses to enhance the competitive power of the
portfolio
 Position each business to attain leadership on the
strength of world-class standards in quality and costs
 Craft appropriate ‘Strategy of Organisation’ and
governance processes to:
o Enable focus on each business and
o Harness diversity of portfolio to create unique sources of
competitive advantage

11. Strategy Selection
3-Tiered Governance Structure

14. E- cigarettes
 There are several vendors in the e-cigarette market in
India, but they lack organized e-cigarette selling
strategies.
 Few vendors use retail outlets to sell their products while
many generate revenue through online sales. Tobacco
companies promote their e-cigarette brands through
celebrity endorsements. They also try to differentiate
their brands from those of the Pharmaceuticals industry.
 In addition, the increased demand for e-cigarettes is
increasing the market's lucrativeness and forcing
retailers and cigarette sellers to stock e-cigarettes,
cartridges, and e-liquids. Online sales constitute the
majority of the market share. The entry of leading
cigarette manufacturers into the market is expected to
increase the number of distribution outlets around the
country. This will help increase the revenue of the
market during the forecast period.

15. Strategy Implementation
 The policy is communicated to all employees
through induction programmes, policy manuals and
intranet portals.
 The custodian of this policy is the head of each
operational unit and divisional chief executives of
the respective business.
 ITC’s complaints resolution procedure is premised
on the freedom of employees to approach higher
officials beyond his/her immediate superior.
 For unionised employees compliance of the policy
is ensured through a robust grievance handling
procedure and the presence of a union that brings
violation to the notice of the unit HR head.

16. A Push Strategy involves ‘pushing’ the product through
distribution channels to the final customers.
ITC adopted this strategy to increase its sell and
awareness & to gain favouritism from the kirana
owners. In anticipation of the mystery shoppers, the
kirana owners kept offering ITC cigarettes to all the
customers first and only upon request & insistence they
sold the requested brand. ITC did this by putting up
posters in kiranas & used the concept of mystery
shopping in case of tobacco industry. And hence they
requested the shop owners to
Offer
ITC cigarettes first to every customer & if he sold a
particular target he will be qualified to enter a lucky
draw and hence bumber prize.
PUSH
STRATEGY
(PROMOTIONAL
STRATEGY)

17. The pull strategy is where the producer directs its marketing
activities (primarily advertising & consumer promotion) towards
final consumer to induce them to buy the product
Under this strategy the consumer demand pulls the product
through channels
Sun feast ready to eat pasta achieved 6% volume in branded
noodles market. This was achieved by excessive advertising
which pulls the product through distribution channels
The strategy adopted is to spend more money on consumer
advertising designed to build brand awareness so that shoppers
will ask for the product.
Pull
Strategy

18. Competitiv
e Strategy
FIRST MOVER
The first company to
manufacture and sell a
new product or service
is called First or Prime
mover.
ITC-Welcome group
pioneered a holistic
concept of ‘branded
accommodation’ in the
hospitality industry it
was the first to launch
the powerful idea of a
‘Hotel within a hotel’ by
segmenting and
branding the hotel
services. It was first to
brand its cuisine.
LATE MOVER
Late mover are those who
are able to imitate the
technological advance of
others, keep risk down by
waiting until the new
market is established and
take advantage f the first
movers inclination to ignore
market.
ITC entered the biscuit
business very late when to
measure players like
Britannia & Parle were
busy biting of chunked of
the national market among
themselves,
ITC dug into market
research.
Finding revealed that the
category had gaps and
hence ITC launched
Sunfeast with 6 ranges.

19. Growth Strategy
 Mergers and Amalgamation
 ITC has decided to consolidate its hotels business and has accordingly
proposed to amalgamate its wholly owned ITC hotels ltd. And other hotels
subsidiaries with the main company.
 ITC has merged Bhadrachalam Paperboard Ltd. With the main company to
position itself as a leader in the paperboard market.
• Strategic Alliance
 ITC has made a significant move in its greeting card business by entering
into a strategic alliance with the Maple leaf. Hence Maple Leaf make
exclusive cards for ITC and hence ITC re-launched under expression Brand
name.
• Joint Venture
 In 1985, ITC set up Supriya Tobacco Co. in Nepal as an Indo- Nepal and
British Joint venture.
• Acquisition
 In 1990 ITC acquired Tribeni Tissue Ltd.