2. ITC â The Company
One of Indiaâs most Admired and Valuable company
-Market Capitalization: over US $ 40 Bilion
A USD 8 billion enterprise by Revenue
- ~58% of Net Revenue from non-Cigarette segments
Leading Fast Moving Consumer Goods marketer in India
- Established several world class brands in the last 10 years
The only Indian company to feature consistently amongst the
Top 10 global FMCG companies
Only Indian FMCG company to feature in Forbes 2000 List
2
5. Source: Audited Financial Results, ended 31st March 2015,
http://www.itcportal.com/about-itc/shareholder-value/key-financials/quarterly-results.aspx
41%
21%
3%
19%
12%
4%
Segment Revenue
FMCG - Cigarettes
FMCG - Others
Hotels
Agribusiness
Paperboards, Paper & Packaging
Others
ITC Category Wise Segmentation
⢠Generates 80-85% of ITCâs profit
Cigarette FMCG Business
⢠Lowering its losses every year and it is
expected to breakeven in 2014-15. The
segment's losses declined from Rs
195.49 crore in 2011-12 to Rs 81.26
crore in 2012-13
Non-Cigarette FMCG Business
5
6. Wills â ITCâs Cigarettes Business
ď§ITC is the market leader in cigarettes in
India
ď§The Wills brand is estimated to be worth
Rs 1,500 crore and is second only to Gold
Flake, also owned by ITC, which is valued
at nearly Rs 2,500 crore
ď§Segment-wise Gross Revenue of FMCG-
Cigarettes is 41%
ď§Cigarettes still generate 80-85% of ITCâs
profit
ď§ITCâs cigarette sales by volume were
estimated to have shrunk 9% year-on-year
6
7. Wills Lifestyle â ITCâs Lifestyle Retailing
ď§ITC's share is not more than 4% in the
apparel retail
ď§Top-of-the-line garments Wills Lifestyle plus
John Players -- contributes a little over 2 per
cent of ITC's FMCG business
ď§Segment-wise Gross Revenue of FMCG-non
Cigarettes is 21% . Wills Lifestyle contributes
60% to ITC's lifestyle retail revenue
ď§Wills Lifestyle contributes almost 80% to
ITC's lifestyle profits
ď§Increasing average billing value by 15-20%
year-on-year with a more premium mix
7
9. Brand Diversification
High incidence of taxation and a discriminatory regulatory regime on cigarettes in India
The share of legal cigarettes in overall tobacco consumption has progressively declined
from 21% in 1981-82 to below 12% in 2014-15 even as overall tobacco consumption has
increased in India
The declining sales of cigarettes, the proposed ban on advertising (Prohibition of
Advertisement and Regulation Bill 2001), the increasing anti-tobacco campaigns and the
experience in developed countries seemed to suggest that tobacco would no longer be a
profitable business in the future
ITC decided to diversify into non tobacco businesses
ITC's diversification, especially into areas such as branded garments, aimed at improving its
brand image, which, in turn, may help it grow its core business
The lifestyle retailing business grew revenue by 20% in 2013-14. The premium-end of the
market which was earlier only 5 per cent has grown to about 10-15 per cent of the whole
market share
9
10. Indian Apparel Retail
- Category Growth
10
India apparel retail industry value:
$ billion, 2010â14
Source: Marketline
11. 11
India apparel retail industry value forecast:
$ billion, 2014â19
SOU
Indian Apparel Retail
â Growth Forecast
Source: Marketline
12. WILLS LIFESTYLE
In 2000, ITC entered the lifestyle retailing
space with the launch of Wills Lifestyle.
Wills Lifestyle has established a nationwide
presence with upmarket product range
available in exclusive 104 Wills Lifestyle stores
across 44 cities and more than 500 âshop-in-
shopsâ in leading departmental stores and
multi-brand outlets
Brand Value: Elegance, Sophistication and
Exclusivity
Imagery: International premium quality and
vitality
Tagline: Enjoy the Change
12
13. WILLS LIFESTYLE
Mission:
To be a one-stop, global solution provider for lifestyle
and become synonymous with âQuality Lifestyle across
the Globeâ
Vision:
To create a fashion wardrobe that complements every
facet of your personality at work, party and a special
occasion called âLIFEâ
13
14. Timeline
14
Entry into Lifestyle
Retailing space â
2000
Wills Sport - 2000
Brand extensions
Wills Classic - 2002
Wills Clublife - 2003
Wills Signature
2006
Wills personal care
segment - 2005
Title partner of
the country's most
premier fashion
event â 2006
Preferred Brand for
rich & famous -
2009
16. 16
2000
Racy stripes,
Energetic prints
and Trendy
dobbies
2002
New age work
wear, trendy,
innovative, chic
and stylish;
Rreflects the work
ethos of gen next
2003
Sensuous satin
and sequins
embellished on
jacquards and
alluring prints
2006
a tribute to the
evolved
consumerâs fashion
sensibilities;
Created by the
leading stylists
Relaxed Wear Formal Wear Evening Wear Designer Wear
Product Price Place Promotion
18. Wills Lifestyle is considered as a brand that is at the forefront of fashion
It positioned itself in the premium category
In 2007 it was named amongst the Top Luxury Brands of India by Time
magazine
It is able to charge a premium from its customers
The Pricing of WILLS LIFESTLE Products is High
e.g. Menâs Shirts : Rs. 1500 â Rs. 5000
18
Product Price Place Promotion
20. Exclusive 104 Wills Lifestyle stores across 44 cities
More than 500 âshop-in-shopsâ in leading departmental stores and multi-
brand outlets
The online stores (The chunk of online customers is very small,
approximately only 5 per cent of the whole)
Coming up of more exclusive stores in the emerging premium mall & high
street catchments
Plans to scale up its retail presence by expanding the footprint in smaller
markets through the franchising model
20
Product Price Place Promotion
24. 24
Product Price Place Promotion
In 2008, developed a campaign voicing the thought
'The World Wants to be You'
The intent has been to take
consumer interest in the
brand to a new high
https://www.youtube.com/watch?v=qXXtpdKugos
3
26. 26
Product Price Place Promotion
Tie-ups with leading stylists of the country:
Anamika Khanna, Ashish Soni, Manish Malhotra, Manish Arora
and Shantanu-Nikhil
4
30. Target Group
⢠Fashion-conscious people
⢠Class I cities
⢠Professionals (studying/working)
⢠Both Men and Women
⢠Age: 20 - 34 years
30
31. Competitors
It is a mĂŠlange
of comfort,
perfection and
elegance.
A global brand, and
one of the best
known in the world,
United Colors of
Benetton has an
international style
that combines color,
quality and fashion.
The brand
epitomizes
classic
American style
and effortless
cool.
31
33. POPs & PODs
POPs
⢠High Quality/
Comfortable to wear
⢠Fashion Space
⢠Premium Pricing
PODs
⢠Association with
countryâs most exclusive
& prestigious fashion
event
⢠Tie-ups with leading
stylists
⢠Unique fabrics
⢠The chain of exclusive
stores
⢠No Mass Media
Advertising
33
35. Brand Positioning
âITC's Wills Lifestyle presents a complete
fashion wardrobe that complements every
facet of your personality at work, when you
are relaxed, while you party and for those
special occasions.â
35
36. Brand Appearance
RED â â red carpet treatment â &
âpaint the town redâ
(VIP, celebrities or high profile person
& celebration, partying, fun &
excitement)
WHITE â âPeace, Perfection &
Sophisticationâ
36
37. Brand Personality
Synonymous with elegance and style that is effortless and chic, Wills
Lifestyle presents a premium fashion wardrobe for men and women.
37
Thus, Wills
Lifestyle has
adopted
Sophistication
as its Brand
Personality
39. Brand Resonance Model
39
⢠International
Premium Quality
⢠Vitality
⢠Superior consumer
value
⢠Global Standards ⢠Fashion
⢠High-end Lifestyle
⢠Premium clothing
⢠Inspiration
⢠Self-expression
⢠Quality
⢠Superiority
⢠Emulation
Wills Lifestyle users are
o Stand outs from the crowd
o Objects of everyone's envy
40. Conclusion
All of this has led to:
⢠Creating a distinctive identity in the premium western
wear market
⢠"The Most Admired Women's wear Brand of the Yearâ
⢠âThe Most Admired Exclusive Retail Chain of the Yearâ
⢠"Most Admired Fashion Brand of the Year - Fashion
Forwardâ
⢠âThe Most Admired Exclusive Brand Retail Chain of the
Yearâ
â Wills Lifestyle
40
41. References
1. ITC Corporate Presentation, Available at:http://www.itcportal.com/about-itc/shareholder-
value/ITC-Corporate-Presentation.pdf(Accessed: June 29, 2015)
2. ITC: Building World-Class Indian Brands, Available
at:http://www.itcportal.com/businesses/pdf/brand-booklet.pdf (Accessed: June 29, 2015)
3. (March, 2015) Retail Industry in India, Available at: http://www.ibef.org/industry/retail-
india.aspx (Accessed: June 30, 2015)
4. Database, Available at: http://advantage.marketline.com/ (Accessed: July 9, 2015)
5. Database, Available at: http://www.portal.euromonitor.com/portal/ (Accessed: August 22,
2015)
6. Wills Lifestyle, Available at:
http://www.superbrandsindia.com/images/brand_pdf/consumer_3rd_edition/Wills%20Lifestyle.
pdf (Accessed: June 30, 2015)
41
42. References
7. T R Vivek (2004) 'Tobacco ban forces ITC to stub Wills', Business Standard, 21st July
8. Manish Basu (2015) 'ITC to raise prices of all its key cigarette brands', Live Mint, 13th March
9. NAMRATA ANAND, VANDANA KHETARPAL, (2014) 'GROWTH OF APPAREL INDUSTRY IN
INDIA: PRESENT AND FUTURE ASPECTS ', , II(I)
10. Sreeradha D Basu (2010) ''We try to make fashion more accessible'', The EconomicTimes,
21stA April
42
43. Acknowledgement
43
The Brand Analysis is done under the able guidance and support of
Dr. Sameer Mathur, Ph.D.
Carnegie Mellon University
Marketing Professor (IIM Lucknow)
http://www.BuddingMarkets.com
By: Mehak Jindal | PGP30380 | IIM Lucknow
Brand Management Course