2. SUNFEAST

3. History and Evolution
 ITC was incorporated on August 24, 1910 under the name
Imperial Tobacco Company of India Limited. As the
Company's ownership progressively Indianised, the name
of 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 - Cigarettes &
Tobacco, Hotels, Information Technology, Packaging,
Paperboards & Specialty Papers, Agri-business, Foods,
Lifestyle Retailing, Education & Stationery and Personal
Care - the full stops in the Company's name were removed
effective September 18, 2001. The Company now stands
rechristened 'ITC Limited'.
 The Company‟s beginnings were humble. A leased office on
Radha Bazar Lane, Kolkata, was the centre of the
Company's existence. The Company celebrated its 16th
birthday on August 24, 1926, by purchasing the plot of land
situated at 37, Chowringhee, (now renamed J.L. Nehru
Road) Kolkata, for the sum of Rs 310,000. This decision of
the Company was historic in more ways than one. It was to
mark the beginning of a long and eventful journey into
India's future. The Company's headquarter building,
'Virginia House', which came up on that plot of land two
years later, would go on to become one of Kolkata's most
venerated landmarks.

4.  In 1975 the Company launched its Hotels business with the acquisition of a
hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The
objective of ITC's entry into the hotels business was rooted in the concept of
creating value for the nation. ITC chose the hotels business for its potential to
earn high levels of foreign exchange, create tourism infrastructure and generate
large scale direct and indirect employment. Since then ITC's Hotels business
has grown to occupy a position of leadership, with over 100 owned and
managed properties spread across India.
 In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam
Paperboards Limited, which today has become the market leader in India.
Bhadrachalam Paperboards amalgamated with the Company effective March 13,
2002 and became a Division of the Company, Bhadrachalam Paperboards
Division. In November 2002, this division merged with the Company's Tribeni
Tissues Division to form the Paperboards & Specialty Papers Division. ITC's
paperboards' technology, productivity, quality and manufacturing processes are
comparable to the best in the world. It has also made an immense contribution
to the development of Sarapaka, an economically backward area in the state of
Andhra Pradesh. It is directly involved in education, environmental protection
and community development. In 2004, ITC acquired the paperboard
manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near
Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service
with reduced lead time and a wider product range.
 In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British
joint venture. Since inception, its shares have been held by ITC, British
American Tobacco and various independent shareholders in Nepal. In August
2002, Surya Tobacco became a subsidiary of ITC Limited and its name was
changed to Surya Nepal Private Limited (Surya Nepal).

5.  In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing
company and a major supplier of tissue paper to the cigarette industry. The
merged entity was named the Tribeni Tissues Division (TTD). To harness
strategic and operational synergies, TTD was merged with the Bhadrachalam
Paperboards Division to form the Paperboards & Specialty Papers Division in
November 2002.
 ITC also entered the Lifestyle Retailing business with the Wills Sport range of
international quality relaxed wear for men and women in 2000. The Wills Lifestyle
chain of exclusive stores later expanded its range to include Wills Classic formal
wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into
the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills
Lifestyle became title partner of the country's most premier fashion event - Wills
Lifestyle India Fashion Week - that has gained recognition from buyers and retailers
as the single largest B-2-B platform for the Fashion Design industry. To mark the
occasion, ITC launched a special 'Celebration Series', taking the event forward to
consumers.
 In 2000, ITC spun off its information technology business into a wholly owned
subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging
opportunities in this area. Today ITC Infotech is one of India’s fastest growing global IT
and IT-enabled services companies and has established itself as a key player in
offshore outsourcing, providing outsourced IT solutions and services to leading global
customers across key focus verticals - Manufacturing, BFSI (Banking, Financial
Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel,
Hospitality and Transportation) and Media & Entertainment.

6. chairman
Board of Y C Deveshwar
Directors EXECUTIVE DIRECTORS
NakulAnand P V Dhobale K N Grant
NON-EXECUTIVE DIRECTORS
A Baijal S Banerjee AV Girija Kumar
S H Khan S B Mathur D K Mehrotra
PB
H G Powell Anthony Ruys
Ramanujam
B
BasudebSen K Vaidyanath
Vijayaraghavan

8.  Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri
Business Division for export of agri-commodities. The Division is today one
of India's largest exporters. ITC's unique and now widely acknowledged e-
Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now
it extends to 10 states covering over 4 million farmers. ITC's first rural mall,
christened 'ChoupalSaagar' was inaugurated in August 2004 at Sehore. On
the rural retail front, 24 'ChoupalSaagars' are now operational in the 3 states
of Madhya Pradesh, Maharashtra and Uttar Pradesh.
 In 2000, ITC forayed into the Greeting, Gifting and Stationery products
business with the launch of Expressions range of greeting cards. A line of
premium range of notebooks under brand “Paperkraft” was launched in
2002. To augment its offering and to reach a wider student population, the
popular range of notebooks was launched under brand “Classmate” in
2003. “Classmate” over the years has grown to become India‟s largest
notebook brand and has also increased its portfolio to occupy a greater
share of the school bag. Years 2007- 2009 saw the launch of Children
Books, Slam Books, Geometry Boxes, Pens and Pencils under the
“Classmate” brand. In 2008, ITC repositioned the business as the
Education and Stationery Products Business and launched India's first
environment friendly premium business paper under the “Paperkraft”
Brand. “Paperkraft” offers a diverse portfolio in the premium executive
stationery and office consumables segment. Paperkraft entered new
categories in the office consumable segment with the launch of Textliners,
Permanent Ink Markers and White Board Markers in 2009.

9. Products of Sunfeast
1. Sunfeast Milky Magic
2. Sunfeast Marie Light
3. Sunfeast Golden Bakery
4. Sunfeast Dark Fantasy
5. Sunfeast Dark Fantasy Choco Fills
6. Sunfeast Glucose
7. Sunfeast Dream Cream
8. Sunfeast Snacky
9. Sunfeast sweet 'n salt
10. Sunfeast Nice
11. Sunfeast Benne Vita Flaxseed Biscuits
12. Sunfeast Special
13. Sunfeast Pasta
14. Sunfeast Yippee!

10. Sunfeast Milky Magic
Packed with goodness of milk
these deliciously nutritious crisp
and crunchy biscuits are a
favorite among mothers and kids.
Milky Magic has the ‘Magic of 2’ -
A perfect balance of energy that
aids physical strength and mental
ability. These biscuits strike the
right balance of milk and wheat
which helps in an all round
development and nurturing of the
child.

11. Sunfeast Marie Light
 Sunfeast Marie Light Original :
This ideal teatime biscuit is made
from the finest quality wheat high in
fibre and keeps one light and
healthy through the day .
 Sunfeast Marie Light Orange :
It has the distinction of being one of
the most successful innovative Marie
biscuits and is liked by one and all.
 Sunfeast Marie Light Oats:
The first of its kind in India, Sunfeast
Marie Light Oats is enriched with the
goodness of natural wheat fibre and
soluble oats fibre.

12. Sunfeast Golden Bakery is a premium
cookie on an innovative and
differentiated platform. Launched
nationally in March 2008, these cookies
are made from the recipes crafted by
the master bakers of ITC Hotels and are
slowly baked in the traditional way till
they are golden brown and develop the
crispy broken crust texture.
The Sunfeast Golden Bakery cookies
are available in three distinct flavours - Sunfeast
Butter-Nut, Butterscotch and Choco-
Nut cookies. These products are
designed to give consumers a rich &
Golden
truly indulgent experience.
Bakery

13. Sunfeast Dark Fantasy
Inspired by the Master Chefs of
ITC hotels, it is the richest of
chocolate vanilla biscuits. These
biscuits are created using
carefully chosen premium
ingredients for a sensory
experience unlike any other. Dark
Fantasy is more than a biscuit, it‟s
a luxurious mix of aromatic cocoa
and vanilla.

14. Sunfeast Dark Fantasy Choco
Fills
 Sunfeast Dark Fantasy Choco
Fills is the latest and the most
premium offering from the
portfolio of Sunfeast.
An exquisite combination of
luscious chocolate filling
enrobed within a perfectly
baked rich cookie outer. An
offer that fully epitomizes the
brand promise of "Pure
Indulgence".

15. Sunfeast Glucose
 For those light hunger
pangs, a wholesome &
nutritious choice as these
golden brown biscuits are
made from the best quality
wheat. Sunfeast Glucose
biscuits are ideal not just for
kids but for adults too.

16. Sunfeast Dream Cream
A truly scrumptious range of
cream biscuits that have
become an instant hit with
children. ITC‟s chefs have
put their legendary skills into
these biscuits to deliver truly
tasty cream biscuits. Special
Flavor Crystals in the
Strawberry variant keeps the
creamy flavor linger on.

17. Sunfeast Snacky
 Bigger than most others in
the salted biscuit category,
Snacky is light and crispy
like no other. From kids to
adults, it’s the quintessential
‘Family Biscuit’. Available in
two variants, Classic salted
and Chilli flakes - the very
first of its kind in India.

18. Sunfeast sweet 'n salt
 These thin and crisp biscuits
come with a distinctive
sundry taste, that of salt and
sweetness. A bite into one of
these one keeps wondering
about its taste!

19. Sunfeast Nice
 These are crisp coconut
biscuits showered with sugar
crystals. The crisp sugary
sweetness will just go on to
make all those nice
moments nicer.

20. Sunfeast Benne Vita Flaxseed
Biscuits
 If Benne Vita in Italian stands for
‘Good Life’, then Benne Vita
Flaxseed biscuits just make the
good life better. The Flaxseed
content in these protein and
mineral enriched biscuits are rich
source of Omega III acids that
helps control cholesterol.
Flaxseed is the richest plant
source of these essential
Omega-3 Fatty Acids. It is also
rich in dietary fibre, proteins,
calcium and other minerals to
maintain healthy heart and good
gut health.

21. Sunfeast
ITC Sunfeast presents a range of
Special cookies and creams.
Special Cookies:
Special
Made with best quality wheat, cashew
and butter, Sunfeast
 Special cookies are baked with
real butter and the finest
ingredients to give a mouth-
watering treat that makes every
moment special. Available in
Cashew & Butter.
 Special Creams:
Delicious value for money cream
biscuits with a thick layer of cream
sandwiched between two biscuits.
 Available in Orange, Chocolate &
Elaichi variants.

22. Sunfeast Pasta
The Sunfeast product portfolio was
expanded in early 2005 to include
healthy snacking options as well.
 Sunfeast Pasta Treat, a whole
wheat based instant pasta was
introduced as a healthy
snacking option for children
and young adults. After the
tremendous success of the 4
initial flavours, (Masala,
Tomato Cheese, Cheese and
Sour Cream), the instant Pasta
range has been extended with
three new exciting flavours -
Pizza style, Chicken and
Tangy Tomato.

23. Sunfeast Yippee!
 The portfolio has been further expanded
with Sunfeast Yippee! instant noodles.
Three years of exhaustive developmental
work has gone into the creation of
Sunfeast Yippee! The product has two
intrinsic components - the noodle block
and the masala mix. Wheat is a key
ingredient of the noodle block. The
sourcing and blending expertise that has
made Aashirvaad India's No 1 branded
Atta has been leveraged to make a truly
delightful noodle block. Sunfeast Yippee
noodles do not lump even 30 minutes
after cooking. At present, Sunfeast Yippie
is available in two lip smacking variants -
Classic Masala and Magic Masala.

24. Description of Sunfeast
 Brand :Sunfeast
Company : ITC Ltd
Agency " FCB Ulka
 Can a cigarette manufacturer succeed in marketing Biscuits? What do management thinkers say about
unrelated diversification? Unrelated diversification will succeed if it is based on the core competency of
the firm. So What is the core competency of ITC that is being leveraged when it decided to enter the
Foods market. ITC relies on three core competencies
 1. The depth of distribution
 2. Its brand building capabilities.
 3. The ability of Quality outsourcing.
 Sunfeast has been a success because of these three competencies of ITC. Sunfeast was launched in
2003 was one of the diversification forays of ITC which wanted to establish itself as a serious FMCG
player from its position of Tobacco products leader. ITC had the advantage of the well entrenched
distribution setup which is matched only by HLL.
 Indian biscuit market is estimated to be around 4500 - 5000 crore. The market is dominated by Parle
and Britannia. Parle is the volume leader with brands like parle- G, Krackjack and Monaco while
Britannia is the value leader with brands like 50: 50, milk bikis, Tiger, Goodday etc. The biscuit market
has now moved from the core Glucose base to more value added categories. The key markets are UP,
Maharashtra, and Tamilnadu. The percapita consumption of biscuits in India is only 1.2 kg per annum
while the percapita consumption is 15 kg p.a in developed nations. While the glucose biscuits are
popular in Rural India , Urban market prefer Cream biscuits.

25.  To establish a brand in this tough market was never easy. Sunfeast using heavy promotion
and careful brand building have already garnered 10% market share in this market. Sunfeast
is positioned as an exciting brand. This platform is supported by a series product launches.
Since Biscuits are convenience goods , new tastes and new products are essential to built
excitement in the market. Sunfeast have maintained continous series of new launches like
Milky Magic, Coconut, strawberry, pineapple cream etc. Recently Sunfeast launched a
product for the premium segment named " Dark Fantasy" with chocolate flavour and cool
advertisements.
 Sunfeast have used the baseline " spread the smile" as the brand essence and the brand is
endorsed by Shah Rukh Khan. The use of SRK makes sense since the TG is mainly kids .
SRK have the energetic persona that goes well with the brand. The mascot of Sunfeast is the
Animated Sun which is the symbol of contentment, satisfaction and Pleasure. This mascot
has been well received by the TG. The ad campaigns are catchy and full of colors and
excitement. The product is also of very high quality. Thus Sunfeast has managed to get all
the winning combinations in the right mix.
 Sunfeast is also trying to garner more share in the Marie category which is estimated to be
around 600 crore. It launched the Marie with different flavours that has enabled it to gain a
strong foothold in that category. To expand the brand in to the snack category Sunfeast has
launched Pasta Treat which talks of a healthy snacking option for kids.
 Sunfeast also uses lot of Below the line promotions for brand building. It sponsors Sunfeast
Open, a recent initiative aiming at the school kids by providing them an opportunity to
enhance creativity through painting competitions, " HaraBano " campaign which set a world
record in planting maximum number of saplings etc.
 The constant product launches and careful promotions have enabled Sunfeast to move to
the top league in the biscuit market with in a span of 3 years. We may see this brand
expanding to many categories .Hope they don't mess the brand by extending it to
underwears.

26. Reason for Entry into
Biscuits
 Innovation: Research revealed that the category had gaps which ITC could settle
into. Findings revealed that consumers wished to taste new and innovative products. That
was precisely what the competition had not done in a big way. Glucose was Glucose and
same is the case with Marie. The company decided that this could be its biggest point of
attack. In 2003, ITC launched Sunfeast with six ranges. But it was a calculated risk. ITC
stuck to category favourites like Glucose, Marie and Bourbon cream. Along with that, it also
launched innovations such as orange-flavoured Marie, Marie light and butterscotch-
flavoured cream biscuits. In 2004, Sunfeast followed this up with the launch of Sunfeast
Milky Magic. More recently, it also has launched the Sunfeast Snacky and Sunfeast Golden
Bakes. The biscuits industry had not witnessed any major product innovation in years.
Consumers were just waiting for something new, something fresh, when Sunfeast
happened
 Distribution: Distribution is the key for FMCG products. In biscuit category, distribution
and visibility is extremely important as it's partly an impulse purchase product. Priya Gold,
which entered the western region in 2000, is struggling to find its feet even five years later.
However, in this regard, Sunfeast did not stumble. The main credit goes tobacco business –
its understanding and deep grasp in distribution. But it was not limited to just panwaris, but
looked at the grocery stores and other retail formats. The company says the brand is now
available in nearly 1.8 million outlets. Britannia claims it has a superior distribution clout
with its presence in nearly 3.3 million outlets. Parle, the seasoned player itself, says it is
available in 1.5 million outlets. Sunfeast's next step was to step up its branding and
promotion

27.  Promotion: In August 2003, a month after its 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, corner space in newspapers P
 Pricing: The biscuits industry now has two clear models. Parle products plays the low price game
at all varieties of biscuits from glucose to cream. Parle plays a high volume, low margin game. But
Britannia and 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 Britannia
and Sunfeast cost Rs 10 for 100 grams. Parle, however, only charges Rs 5 for its cream variants.
Except for Hide & Seek, all of Parle's products lie in the price range between Rs 4 and Rs 6 for 100
gram packs. Biscuit consumer is willing to pay more only when he sees a clearly differentiated
product. Hence companies have little choice in terms of pricing. No wonder all the Glucose and
Marie variants straddle price points of Rs 4-6 (for 100 grams)
 Results
1. Volumes: In March 2006
 Britannia's shares have dropped from 35.8 per cent in 2004-05 to 30.5 per cent in May 2006
 Parle's shares have also dropped from 42.2 to 38.4 per cent in the same period
 Priya Gold has seen a minor dip from 6.4 per cent to 5 per cent
 ITC's Sunfeast has been a big gainer with its share increasing from 2.7 to 6.7 per cent
 2. Value
 Britannia leads the market with 37 per cent market share
 Parle's 31.3 per cent
 ITC's 6.3 per cent

28. Sunfeast foray into Biscuits
 Major players in biscuits who dominated the industry long back were Parle and Britannia. With that
there were smaller brands in various regions. Instead of all this ITC took a bold step to hit on these
biscuit mammoths making 82% of industry (in 2004)
Now the important question at hand is the reason why ITC entered into this product category. Let
me enumerate some reason:
 Food segment is Rs. 550,000 crores (112 b$)
 6% is FMCG (Branded and packaged) – Rs. 33000 crores
 In developing markets, the above percentage is as high as 95%. So looking into future, India’s will
have more organized and branded food product categories. It will lead to dual effect: Increase in
base of biscuit segment and Increase in % of branded food categories
 ITC has a great scope to be a branded player
 Branded Biscuits industry come out to be around Rs. 4000 crores
 Increasing at the rate of 12 to 14% yoy
 Synergies with ITC core competencies (value addition to wheat with Aashirwad Atta brand)
 Biscuits as a segment positively effects the bottom line
 Threats for ITC: Behemoths like HLL tried their hand in this segment but unsuccessful (Max brand
exit in 2005)

29.  SUN SHOWS REACHNESS,
 NECESSITY, ENERGY.
 SMILEIS FOR CUSTOMER
SATISFACTION, TARGET
SEGMENT……
 Milky Magic, made with cow's milk, gives
them high energy, stamina and health; while
the Jagmag'flavour bursts' of the Strawberry
Launched in July, 2003 and Pineapple Cream biscuits melt in their
•Growth rate of 53% mouths.
•Turnover of over 1000  ITC's Sunfeast is a brand driven by innovative
Cr. product development at ITC's state-of-the-art
•Wide food technology centre in Bengaluru. Every
categorization.Entry Sunfeast product is made with utmost care,
level ensuring world class standards of hygiene.
 Sunfeastsymbolises ITC's commitment to
create brands that enrich the quality of life
for every Indian. Because our people and
our country deserve the best.

30. Brand Ambassador
 Sunfeast signs Shah Rukh as its
Brand Ambassador
 ITC Limited - Foods Business has
appointed Shah Rukh Khan as the
brand ambassador for its flagship
brand „Sunfeast‟.
 The super-star will be endorsing
the entire range of snacks under
the umbrella brand „Sunfeast‟.
 As brand ambassador, the
celebrated actor will play a key
role in brand and product
communication on television, in
print and outdoor media and
various promotions and
merchandise that have been
planned for the brand.

31. Although Sunfeast is a new brand the conversion
rate is considerably high in all the price-quality
points. This signifies that the brand is doing fairly
well growing considerably