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BY: SUCHORIT CHATTERJEE MBA 3rd SEM SITM

ABOUT THE COMPANY ITC Limited public conglomerate company headquartered in Kolkata, India.

Its turnover is $7 billion and a market capitalization of over $33 Billion.

It started off as the Imperial Tobacco Company, and shares ancestry with Imperial Tobacco  of the United Kingdom, but it is now fully independent, and was rechristened to Indian Tobacco Company in 1970 and then to I.T.C. Limited in 1974

The company is currently headed by Yogesh Chander Deveshwar. It employs over 26,000 people at more than 60 locations across India and is listed on Forbes 2000.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

ITC's aspiration to be an exemplar in sustainability practices is manifest in its status as the only company in the world of its size and diversity to be 'carbon positive', 'water positive' and 'solid waste recycling positive.

ITC's businesses have created sustainable livelihoods for more than 5 million people, a majority of whom represent the poorest in rural India.

ITC was the first company in India to voluntarily seek a corporate governance rating .

ITC's Agri-Business is one of India's largest exporters of agricultural products.

ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade).

As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. 

The vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the Nation. For the Shareholder."

The company was founded as Wills, Watkins & Co. by Henry Overton Wills and his partner Watkins, who opened a shop in Castle Street, Bristol in 1786. After the retirement of his partner in 1789, it became Wills & Co.

In 1826 his two sons, William Day Wills and Henry Overton Wills took over the company. 

In 1830, the company was renamed W.D. & H.O. Wills.

In 1901 Sir William Henry Wills formed the Imperial Tobacco Company from a merger of W.D. & H.O. Wills with seven other British tobacco companies

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 toI.T.C. Limited in 1974.

HISTORY OF THE COMPANY

The primary objective of this study is to systematically explore the determinants responsible for the competitive advantage of ITC Limited and how ITC developed new product lines in its foods business drawing on its competencies in brand-building, R&D, packaging, and distribution. However, market analysts were not sure whether ITC would achieve success in all the food categories that it had entered.• Why people are buying the products.

• What all the things which influences them to buy

• To understand how IT C has diversified themselves to a multi-product corporation from a single product company

OBJECTIVE OF THE COMPANY

ITC VISIO

N

• Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Company’sstakeholders

ITC MISSI

ON

• To enhance the wealth generating  capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value

FMCG

,

Paper & PackagingHotels Agri

Business

Information Technology

Cigarettes Personal CareFoods Lifestyle Retailing

Education & Stationery Matches Incense Sticks

PRODUCTS

PRICEThe Basic Concept used by ITC is:

“PRICE IS SOMETHING WHICH CUSTOMER IS READY TO PAY FOR YOUR PRODUCT”

Pricing is an important strategic issue because it is related to product positioning. Furthermore, pricing affects other marketing mix elements such as product features, channel decisions, and promotion.

While there is no single recipe to determine pricing, the following is a general sequence of steps that are followed for developing the pricing of product:1. Develop marketing strategy - perform marketing analysis, segmentation, targeting, and positioning. Methods Adopted: Box Plot Method: i.e. Market Segmentation 2. Make marketing mix decisions - define the product, distribution, and promotional tactics.

PLACE

MANUFACTURING UNIT

HUBDISTRIBUTORS

WHOLESALER

RETAILERS

MALLS

SMALL RETAILRS

ITC DistributionBuoyed by a strong distribution network ITC is likely to retain its market share in the cigarettes business; the ban on advertisements is likely to work in favour of ITC thanks to the recall factor.

PROMOTION A particular budget is allocated for the promotion of the products,.

The local promotionscheme is decided by the Area Sales Manages, it give its suggestion to the District officeand that is forwarded to the Head Quarter in Kolkata.

In another promotional scheme for Biscuits a particular number of cases is given freely to the distributors according to the amount of sale they make, this was a drop down promotion i.e. of the number of free cases that a particular distributors gets, off them acertain part is reserved for the retailers and customer if they buy a certain level of biscuit quantity