The document provides information on the success of ITC and Tata Group. For ITC, it discusses their diversified business portfolio and success in the instant noodles market with their Yippee brand. For Tata Group, it outlines their large revenue, employees and businesses. It then discusses the role of strategic planning in Tata's success, including understanding customer values, delivering value through companies like Taj Hotels, and strategic planning processes at the corporate, division and business levels.

2. Opening Vignette - ITC
• India’s foremost private company.
• Market Capitalization of US $ 33 Billion.
• Turnover US $ 7 Billion.
• “Asia’s Fab 50”
• Rated as Most reputed and respected
company by Forbes and Business world
Magazine 2010.
• Diversified Business Portfolio.
– Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods &
Confectionery, Information Technology, Branded
Apparel, Personal Care, Stationery, Safety Matches
and other FMCG products.
• 24,000 Employees at more than 60 locations

3. Success Mantra of ITC - Yippee
• Instant noodle market in India – 2000 crore
• Nestle Maggi – Mkt leader – 80 % Market share
• Players – Yippee -10%, Top Raman 7 % (Foodles, Knorr Soupy – 3%)
• Market Expected to grow 3000-3500 crore by 2015.
• Strong Customer segmentation base
– Age wise (Kids, teenage and adults)
– Psychological Behavior – Brand connection with noodles
– Consumption behavior – Indulgence – Regular , Atta and Health Consciousness
– Moisture content and stickiness in noodles
– Shape (Round) and length of noodles
• Target Audience : Mainly Kids who love noodles with sauce
• Positioning : Benefit Positioning
• Strong supply chain process through echoupal
– Crop advisories
– Relevant weather Information
– Price discovery and access to high quality agri inputs.
– “Choupal pradarshan khet”

4. Success Mantra of ITC - Yippee
– Product Development
• Long noodles, Round shape with opt moisture
• “Classic masala” and “Magic masala”
• New drying technology to avoid stickiness
• Brand Personality: Happy, Vibrant and fun loving
– Pricing
• Rs.10 for small pack
– Sourcing and making
• ITC Echoupal – Wheat and Maida
• Pune – Plant is located almost near market.
– Distribution and service
• ITC FMCG Distribution network – added advantage
• Specific target market – Big towns with more than 1 Lakh and next
phase 50,000 and more.

5. Success Mantra of ITC - Yippee
– Sales Force
• Exisiting FMCG Sales team
– Sales Promotion
• Rs 10 pack , no family pack – Trail purchase
• “Long noodle contest”
– Advertising
• Theme: Long and round noodles

7. Value delivery process

8. The Value chain – Michael Porter

9. What is the success of Tata
Group ?

10. Strategic Planning – Tata Group
• Prestigious huge corporate congloramate
• Total Revenue $83.5 Billion (Rs.380,663 crore)
• 425,000 employees worldwide
• 7 businesses and 90 companies
• Strong values and business ethics.
• How?

11. Role of strategic Planning in TATA
• Understanding customer values – Strong market research and innovation
• Creating customer value – Business excellence, innovation and climate
change
• Delivering customer value – Taj Hotels
• Capturing customer value – Customer’s perception – Experience
• Sustaining customer value – Constant review of business
• Customer centric organization
• Strategic Planning in 3 areas
– Managing company’s business as an investment portfolio
– Assessing each business strength (Market growth rate vs. company’s
competitive position)
– Establishing strategy for each business

12. Role of strategic Planning in TATA
• Corporate Level: Tata Group
• Division level: Tata Sons Ltd
• Business Level: The Indian
Hotels company Ltd (IHCL) /
Taj Hotels resorts and
palaces.
• Product level:
– Taj & Taj safari – Ultimate
luxury
– Taj Vivanta – Upper segment
– Taj gateway – Leisure hotel
upscale
– Ginger – Value segment

13. Strategic Planning Process

14. Corporate and division strategic
Planning
Corporate Four Planning activities
•Defining the corporate mission
•Establishing Strategic business units (SBU)
•Assigning resources to each SBU
•Assessing growth opportunities

15. Defining the Corporate Mission
• Nature of business and direction
Five major characteristics of Mission
• Limited number of goals
• Company’s major policies and values
• Competitive sphere
• Long term perspective
• Short, memorable and meaningful

16. Establishing strategic Business Units
Tata’s Business sectors SBU – Strategic Business
( 7 SBU) Units
•Materials •It is a single business or
•Energy collection of businesses
•Engineering
•Own set of competitors
•Chemicals
•Consumer products •Manager responsible for
•Services strategic planning,
•Information technology performance and control
and communications

17. Assigning resources to each SBU
• Allocation of corporate resources to each SBU
• Competitive advantage vs market
attractiveness – BCG Matrix

18. Assigning resources to each SBU
Tata’s SBU – Services
Companies or business in this sector
1. Indian Hotels company ltd
Taj Hotel – Market share – 58%
Tourism and hospitality sector – Growth rate – 7.2%
2. Financial services – TATA AIG Life Insurance
Life insurance industry Growth rate – 5.2%
Market share of TATA AIG – 1.8%
Strategies : Grow, Hold, Harvest and Divest

19. Assessing Growth Opportunities
• Planning new businesses, downsizing and terminating older businesses.
• Intensive growth – Tata Motors – Passenger car, utility vehicles, commercial &
passenger buses, europe market.
– Ansoff’s Product – market expansion grid
• Integrative growth – Tata Motors and Tata Auto component system & Tata
Cummins etc.
• Diversification growth – Technological, market & unrelated

20. Thank you