itc classmate_submitted by pgp30102
TRANSCRIPT
BRAND MANAGEMENT Overview of brand extension – ITC Classmate
-submitted to Prof. Sameer Mathur
Submitted by:Shamael AnsariPGP 30102Section B
FMCG industry in India
Source: GMID Euro monitor report, annual report 2014
Overview
Fast moving consumer goods (FMCG) is the fourth largest sector in the Indian economy
The FMCG sector has grown at an annual average of about 11 per cent over the last decade
Food products is the leading segment, accounting for 43 per cent of the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market share
Education & Stationery Market in India
Consumer expenditure in India (INR million)2009 2010 2011 2012 2013 201490,201.7 111,528.4 120,699.8 128,444.5 144,504.4 163,861.3
Source: GMID Euro monitor report, annual report 2014
Organized notebook market in India is 4000 Cr
ITC’s Classmate is market leader with 20% share
Navneet follows with 7% share
Remaining market is controlled by regional shares
ITC Group
Country’s leading marketer in FMCG
Second largest hotel chain in India
Market leader in Indian paperboard & packaging industry
Pioneer is farmer empowerment with its Agri Business
In the 1970s, it diversified into non-tobacco businesses
ITC Group – key financials
Source: GMID Euro monitor report, annual report 2014
ITC’s extension into ‘Classmate’ stationery
ITC made its foray into stationery with ‘Paperkraft’ in 2002
Expanded into the popular segment with ‘Classmate’ in 2003
Classmate became largest notebook brand in the country
Classmate & Paperkraft have become a natural extension of the consumer
Source: GMID Euro monitor report, annual report 2014
Target Group
General Market for Classmate: Students,
Educational Institutes, Corporate Employees
Stands for identifying & celebrating the
uniqueness in every child
Encourages the user to nurture his talents, skills and interests that make
him special.
Classmate's simple message to every child: "You are born unique so
succeed to your own strengths. Because you
are one of a kind."
Marketing Mix (4P’s)
• Pencils (mechanical and wood-cased)• Pens (ball, gel, roller and fountain)• Mathematical Instruments (wax crayons, colour pencils, sketch pens and oil pastels)• Erasers• Sharpeners• Art Stationery• Notebooks
Product
Marketing Mix (4P’s)
• Selecting Pricing objective : Classmate objective is to maximize market share• Pencils – INR 3- 40 per unit• Pens – INR 5- 20 per unit• Mathematical Instruments (wax crayons, colour pencils, sketch pens and oil pastels)• Erasers• Sharpeners – INR 4- 20 per unit• Art Stationery• Notebooks
Pricing
Marketing Mix (4P’s)
• Classmate’s products are targeted across rural & urban areas across India• Classmate's main manufacturing unit is at Bhadrachalam , Andhra Pradesh.• Out of 5 levels of distribution of ITC, Classmate uses two type of levels• LEVEL 3 : Producer Agent Wholesaler Retailer Consumer• This level is used majorly for reaching consumers in rural areas • LEVEL 3 L : Producer Wholesaler Retailer Consumer• This is used in all other areas of distribution
Place
Marketing Mix (4P’s)
• Promotions is a major player for Classmate• Promotions are undertaken with the tag line ”You are one of a kind”• TV Advertisements, hoardings, posters and banners are used to promote the
products across all areas• Classmate uses 3 type of advertising strategies
• Television advertising• Newspaper advertising• Magazine advertising
Promotion
Competitive Frame of Reference
NavNeet and Bilt are the main competitors of Classmate.
POP’s & POD’s
Points of Difference
• Product Differentiation: Durability, conformance quality, reliability, repair ability, style, performance quality differentiate a product
• Design Differentiation: Classmate has very good cover design that differentiates it from its competitors. The customers register the design at the first look and hence prefer classmate over others.
• Services Differentiation: Ordering ease, delivery, installation, customer training, customer consulting, maintenance repair and returns differentiate services
Points of similarity
• Regular range of stationery like competitors• Similar reach & target group• Similar price range