assignment - group 3 - rev 2.8

8/3/2019 Assignment - Group 3 - Rev 2.8

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Presentation MarketingManagement

EMBA Semester I (Batch 2011 14)Presented by

Shubh, Mahesh, Pushkar, Prabodh, Vikas,

Mohammad Ali, Sai Prashanth, Vasanth, Vishnu

4/27/2012 1Group 3

Inspiring Years


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List of Participants

4/27/2012Group 3 2

Name Roll Number

Shubh 230-41?????????

Mahesh 230-20

Pushkar 230-30

Prabodh 230-27

Vikas 230-52

Mohammad Ali 230-40

Sai Prashanth 230-37

Vasanth Kumar 230-50

Vishnu 230-48


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4/27/2012Group 3 3

Brands & Products

Scope of the presentation

ITC Ltd Company profile

Analysis for ITC

Introduction Understanding and Scope

4

1

2

3

5

Sales & Marketing growth6

Agenda

Promotions, Brand Ambassadors7

Conclusion, Appendix8


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Scope

India Market scenario

Worlds Youngest nation - median age of 25 years

Growing Urbanization, increased disposableincome

Consumer expenditure(1) on Food, Beverage &tobacco is US $ 286.9 M

Food

Meat consumption 6.6 kg/head

Vegetable consumption 94 kg/head

Beverage

Tea consumption 0.7 kg/head

Soft drinks, sales volume 4,941 million litres

India Market Value Forecast(2) prediction is US $17,468.7 M (increase by 29.5% since 2009)

Indian food sector to have volume of 28,668Million transactions (increase of 31.4% since

2009) 4/27/2012Group 3 4

Year 2005-2009 India Asia

FoodservicemarketCAGRgrowth rate

7.9%

China 14.3%

Japan 0.1%

Share of

foodservicesegmentation

18.5%

China

38.5% Japan

29.8%

NOTE:(1)-

As per Economist Intelligent report for India projected for 2009

(2)- Data Monitor reports, by 2014

Market Mix consideration Labor intensive

Low Margin with lowswitching costs

Supply chain leads andmoderate rivalry


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ITC Company profile

ITC started as Imperial Tobacco Company. 70% of market share with GoldFlake.

100 year old headquartered in Kolkata. 49% of turnover from Cigarettes business

Market capitalization of over $33 Billion.

Employs over 26,000 people

Presence in over 60 locations across India

Listed on Forbes 2000 4/27/2012Group 3 5

Hotel Business - ITC

Welcomegroup Hotel Chola

Cigarettes andLeaf Tobaccobusiness

Packaging andPrinting Business

Paperboardsbusiness

Indo-Nepal and British jointventure - Surya Nepal PrivateLimited

1) Acquired Tribeni Tissues

LimitedPaperboards & Specialty Papersdivision

Agribusiness Division

1) Greeting, Gifts, Stationary

2) Lifesytle Retailing business3) ITC Infotech India Limited

1) Food business2) Safety matches

Aug 24 1910 20021925 1979

1975 1985 1990 2000 2005

FineFragrance,

bath and body


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About ITC Ltd

4/27/2012Group 3 6

Vision:Sustain ITCs 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

globalizing environment, delivering

superior and sustainable stakeholder

value.

Core Values:ITCs core values are aimed at

developing a customer focused, high

performance organization which creates

value for all its stakeholders

Trusteeship

Customer Focus

Respect for people

Excellence Innovation

Nation Orientation

Slogan: Enduring Value


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Paper board& Packaging

ITC Ltd Business & products

HotelsFMCG Agri Business

4/27/2012 7Group 3

Cigarettes & Cigars

Foods Lifestyle Retailing

Personal Care

Education &Stationery

Safety Matches

Agarbattis

e-Choupal

Leaf Tobacco,Spices

AgriCommodities

Paper Boards

Packing

Education &stationeryClassmate ,paperkraft,color crew

IT


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Product MixFM

CGCigarette

s &Cigars

IndiaKings

Classic

GoldFlakes

NavyCut

Foods

Sunfeast

Bingo!

Aashirwad

Mint -o

PersonalCare

Vivel DiWills

Vivel

Fiama DiWills

Superia

LifestyleRetailing

WillsLifestyle

WillsSignatur

e

JohnPlayers

MissPlayers

Education &

Stationary

Classic

Paperkraft

ClassmateNoteboo

k

Classmate Pens

SafetyMatches

Aim

I Kno

Stylites

Mangaldeep

Agarbattis

Mangaldeep

Frangrance of

temple

4/27/2012Group 3 8


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ITC FMCG PRODUCTS & MARKET SHAR

4/27/2012Group 3 9

Cigarettes 70%

Education & Stationery 35

Lifestyle Retailing 9Personal Care 14%

Food 27%

Safety Matches & Aggarbatis 45 - 51%


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ITC Market Analysis

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Organized retail Market is the new channels for FMCG.o Scope to improve the retail market

Revenue from FMCG companies through organized retailing

Rural India Market is one of the potential growth areas

o Effective distribution and supplier network: e-Choupal

o Personal and Household market Less penetration. 95% byHUL and Dabur

o Innovation(packaging, pricing & quality) To cover lower

pyramid on income group Competition from MNCs

Export potential

Merger and Acquisition Godrej, Britannia, Lotte India, etc.


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ITC Strategy Marketing

4/27/2012Group 3 11

India Savory Market is fragmented Nuts& Seeds, popcorn, potato chips,processed snacks

India savory snacks Marketshare: % share by value, 2008NOTE: Ref Source-Data Monitor

PepsiCo, Inc 6.10%

ITC Limited 1.40%

Haldirams 1.00%

Others 91.50%

E-choupal

Agriculturalcommoditytraders

Direct fromfarmers

EffectiveSCM

ITCpackagingbusiness

Market reach Advertiseme

nt strategy

Health focus

Leverage&

Innovation

Marketshare -oligopoly

Strong

CSR,governancemandates

CommodityHedging

Differentiation


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Few Innovative Marketing Strategies

When compared to Maggi (Nestle) Round shaped, Longer noodles after cooking because of round shape, Non sticky even after losing heat.

16 variants for more penetration.

Hilarious approach through commercials.No Confusion Great Combination.

Different shape (Mad Angles - Triangle) Easily recallable & recognisable names.

Theede Medhee, Live Wires

No Brand Ambassador

Features naughty boy & cartoon boy as central characters. Irresistible tagline " Kuch Bhi Karega for Candyman " Milk Shake candies with fruit flavours. Candyman Natkhat Mango ad featuring

Naughty Boy.

4/27/2012Footer Text 12

ITC C i


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ITC Competitors

4/27/2012Group 3 13

Godrej Amul MTR

Family BusinessModel

EffectiveManagement ofGodrej Groupnamely : Godrej &Boyce and GodrejIndustries Limited (FMCG )

One of the largestmilk producers in

the world Effective supply

chain managementsystem

One of the TOP 5processed food

manufacturers inIndia

MTR productsknown for Quality

and are 100%vegetarian

Annual sales inexcess of US $ 1.7billion

HR practices of the

Group areconsideredamongst best in thecountry

Indigenous R&Dand TechnologyDevelopment

Effective Network

of Cooperativesand Unions

Uses Innovativetechnology to meetcustomer demands

Awarded by prime

minister for Qualityusing tech & bySAP forimplementing ERPsystem in 3 months


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Brand Ambassadors Sun feast: Shah Rukh Khan, Surya

Wills Lifestyle: Hrithik Roshan

Fiama Di wills: Deepika Padukone

Bru Cappuccino: Karan Johar

Chocolaty candy Maha choco: MS

Dhoni

Product Promotions

4/27/2012 14Group 3


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SWOT Analysis

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Strength

Brand Cigarette market ITC Lion

share of 22,000 cr Strong brand recognition &

product portfolio Distribution network Management

Weakness

Negative Connection of Tobacco Unrelated diversification Dependence on tobacco

revenues

Opportunity

Going global

Rural Market E-Choupal Low per capita consumption of

personal care products Filter cigarette segment of less

than 60mm size

Threat

Competition both Domestic &

International Increasing Tax on cigarettes Excise duty on unfiltered

cigarettes based on their length. Regulatory restrictions on

cigarettes

Ban on smoking


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PEST Analysis

4/27/2012Group 3 16

Political

Huge burden of VAT Excise duty raised by union budget

by 5 % Ban on communication Luxury tax in 10 states Smuggling 100% FDI allowed

Economical

Bidee : cigarette ratio-10:1 Profit margin is high Other forms of cheap tobacco intake The FMCG sector is a 4th largest

sector in INDIA Indian FMCG recorded 16% Sales

growth in last fiscal

Social

Becoming status symbol

Companions mounted by W.H.O. Changing attitudes towards tobacco May 31 is no tobacco day Change in life style Strong Corporate Social

Responsibility(CSR)

Technological

State-of-the-art factories

Cheap labor supply Development of IQMS Adapting other concepts like QC,

TQM, KSS, 5S, Six sigma


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Star Question mark

DogCash Cow

FMCG-Cigarettes

ITC Infotech

FMCG-Foods Agri Business

Hotels

Paperboards & Packaging

Packaged foods

Branded Apparels

ITC Ltd on BCG Matrix

L

ow

Low

High

HighMARKET SHARE

MARKETGROWTH

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Porters 5 forcesModerate

bargainingpower ofcustomer

Highbargaining

power ofsupplier

Growingthreats fromnew entrants

High rivalry

Lowsubstitutes

due to strictlaws

4/27/2012 18Group 3

ITC S


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4Ps ITC Strategy

4/27/2012Footer Text 19

Product Strategy

Bingo positionedas chips with Indiantwist.

Offerings underfinger snacks -khakhra inspiredMad Angles

Multiple Pricingofferings - Rs 5,Rs 10 Rs20

Pricing

Competitivepricing - Similarpriced SKUs.

Leverage its SCM:e-choupal initiativeto ensureavailability of rawmaterials

Leverage printing& acka in

PromotionalStrategy

Bingo launched inthe time of Worldcup to cash in onthe popularity ofsnacks amongcricket lovers.

ITC booked 10-15spots per channelper day, 20 spotson radio stations

Place

Rural & UrbanMarket Echoupalfresh

Leverage its wellestablishedCigarettedistributing network

Enabling retailersby providing 4lakhs racks for


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FMCG- Achievements Ashirvad Atta is now #1 selling.

Sunfeast Biscuits is ranked #3.

Bingo, launched in August 2007 - 16% market share.

November 2007 Mint-o overtakes its competitor Chlormint

Classmate brand - Most widely distributed stationarybrand

Kitchens of India has about 48% market share in India. Its Readyto Eat food Market is estimated to be Rs.700m

Safety Matches market at Rs. 1250 crores p.a. for 24 billion matchboxes which is targeted by ITCs iKno, Aim, Aim Mega, Aim Metro

Successful acquisition of 94% of WIMCO Ltd. i.e. Homelites, Ship

Mangaldeep serves the nations 900cr incense sticks market

4/27/2012 20Group 3


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Conclusion

4/27/2012Group 3 21

ITC is better in position from PepsiCo considering the fragmentation in themarket

Has huge potential to capture the market share from its current level of1.40%

Stronger control on SCM e-Choupal, retail network

Leverage its diversified business portfolio into positive advantage,

Brand value(Market position)

Effective strategies to mitigate the threats

Stiff competition from international brand and threat from otherplayers(China and Japan) and others

Indian food service market decline due to weaker forecast after 2009and CAGR at 5.3% for the period of 2009-2014

Inorganic growth through Merger and Acquisition

Diversify its food products - Ready to eat food(MTR), etc.


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No Questions

Thank you

4/27/2012Group 3 22


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References http://www.itcportal.com

Reports Data Monitor, Economists Intelligent report,Internet

EBSCO

4/27/2012Group 3 23
http://www.itcportal.com/http://www.itcportal.com/http://www.itcportal.com/


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References India cost foodservice sectorvolume forecast: million transactions, 2009-

14

4/27/2012Group 3 24

Source: Datamonitor D A T A M O N I T O R


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References

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This section was originally published on February 1st 20051998a 1999a 2000a 2001a 2002a 2003bConsumer expenditureFood, beverages & tobacco (US$ m) 142,498 145,827 136,566 143,992 142,552 168,050Food, beverages & tobacco (% ofhousehold spending) 52.6 50.0 45.9 46.0 43.4b 43.3Food

Meat consumption (kg per head) 4.8 4.8 5.0 5.1 5.2 5.4Milk consumption (litres per head) 64 65 65 63 63 64Fruit consumption (kg per head) 39 39 38 38 38 41Vegetable consumption (kg per head) 61 66 66 70 69 76Confectionery, sales volume (000tonnes) 88 94 101 111 119 127BeveragesCoffee consumption (litres per head) 0.0 0.0 0.1 0.1 0.1 0.1Tea consumption (litres per head) 0.6 0.7 0.6 0.7 0.6 0.7

Alcoholic drinks, sales volume (m litres) 81 61 53 49 51 57Soft drinks, sales volume (m litres) 1,271 1,416 1,591 1,827 2,143 2,484TobaccoCigarettes, sales volume (m units) 95,279 91,702 95,900 86,000 85,400 88,208aa Actual. b Economist Intelligence Unit estimates.Source: Economist Intelligence Unit.


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ITCs Distribution channelCOMPANY HUB FACTORY

Retailer

Small wholesale dealer

Wholesale dealer

Carried and forward agent

consumer

4/27/2012 26Group 3

assignment - group 3 - rev 2.8

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