1. Marketing Mix Of ITC Limited ( FMCG ) ITC

2. ITC Limited Profile Type Public Traded as BSE: 500875 Industry Conglomerate Founded August 24, 1910 (as Imperial Tobacco Company of India) Founder Henry Overton Wills Headquarters Kolkata, West Bengal, India Key people Yogesh Chander Deveshwar (Chairman) Products : Tobacco, Hotels, Paperboards & specialty papers, packaging, agri-business, packaged foods &confectionery, IT, branded apparel, personal care, stationery, safety matches and other FMCG products Revenue US$ 7 billion (2012-13) Employees 25,000 (2012) 3. ITC has a diversified presence in FMCG, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, and Information Technology. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. ITC is one of India's foremost private sector companies with a market capitalisation of US $ 35 billion and a turnover of US $ 7 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine and among India's Most Valuable Companies by Business Today. ITC ranks among India's '10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. 4. Board of Directors CHAIRMAN Y C Deveshwar EXECUTIVE DIRECTORS Nakul Anand P V Dhobale K N Grant 5. Yogesh Chander Deveshwar is the Chairman of ITC Limited, one of India's largest multi-business conglomerates. He was appointed as a Director on the Board of the Company in 1984 and became the Chairman on 1 January 1996. Yogesh Chander Deveshwar was born on 4 February 1947 in Lahore, British India. He received his Bachelor of Technology Degree in Mechanical Engineering from the Indian Institute of Technology, Delhi in 1968. Y C Deveshwar joined ITC Limited in 1968. He was appointed as a Director on the Board of the Company in 1984 and became the Chief Executive and Chairman of the Board in 1996. Between 1991 and 1994, he led Air India as Chairman and Managing Director. During his 15-year tenure at the helm, ITC has seen top-lines moving from Rs. 5,000 crore to nearly Rs. 27,000 crore in 2010 and profits from a level of Rs. 260 crore to over Rs. 4,000 crore. 6. Vision & Mission statements Vision: Sustain ITCs position as one of Indias most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders. Mission: To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value. 7. TIMELINE 1910 ITC was incorporated under the name Imperial Tobacco Company of India Limited. 1925 Packaging & Printing Business 1954 Converted into a Public Limited Company 1970 Imperial Tobacco Company of India Limited to India Tobacco Company Limited 1974 I.T.C. Limited 1975 Company launched its Hotels business 1979 ITC entered the Paperboards business 1985 ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. 1990 ITC acquired Tribeni Tissues Limited (TTL) 1990 ITC set up the Agri Business Division for export of agri- commodities. 2000 ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited 2000 ITC entered the Lifestyle Retailing business with the Wills Sport range 2001 The Company now stands rechristened 'ITC Limited'. 8. 2001 Introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. 2002 Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited 2002 ITC launched line of premium range of notebooks under brand Paperkraft 2002 The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear and Wills Clublife evening wear. 2002 ITC also initiated popular segment John Players 2002 ITC entered the confectionery and staples segment the launch of the brands minto and Candyman confectionery and Aashirvaad atta (wheat flour). 2002 ITC markets popular safety matches brands like iKno, Mangaldeep and Aim. 2003 Classmate range of notebooks was launched. 2003 Introduction of Sunfeast as the Company entered the biscuits segment. 9. 2005-2012 ITC entered the Personal Care Business. In seven years, the Personal Care portfolio has grown under 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel' and 'Superia' brands 2006 Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week. ITC launched a special 'Wills Signature', taking the event forward to consumers. 2007- 2009 launch of Practical Books, Drawing Books, Geometry Boxes, Pens and Pencils under the 'Classmate' brand. 2007 ITC entered snacks category with Bingo! 2008 ITC positioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the 'Paperkraft' Brand. 2010 Colour Crew was launched as a new brand of art stationery. 2010 ITC launched Sunfeast Yippee! to enter the Indian instant noodles market. 2010 ITC launched its handrolled cigar, Armenteros, in the Indian market. 10. SWOT ANALYSIS 11. Strength Cigarette market is 22,000 cr and ITC has lions share in it ITC leveraged it traditional businesses to develop new brands for new segments. Diversification 12. Weakness Dependence on tobacco revenues Cigarettes account for 49% of company`s turnover and responsible for 82% of revenues. 13. Opportunities E-Choupal ITC is moving into new and emerging sectors including IT with supporting business solutions. Rural market 14. Threats Increasing Tax on cigarettes Ban on smoking 15. MARKETING MIX 16. According to Philip Kotler, Marketing mix is the combination of four elements, called the 4Ps (Product, Price, Promotion and Place), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy. 17. FMCG FMCG (Fast Moving Consumer Goods) ARE THOSE CONSUMABLES WHICH ARE NORMALLY CONSUMED BY THE COSUMERS AT A REGULAR INTERVAL 18. FMCG PRODUCTS OF ITC Packaged foods &confectionery Personal care Stationery Safety Matches and Agarbattis Cigarettes 19. ITCs Branded Packaged Foods business is one of the fastest growing foods businesses in India, driven by the market standing and consumer franchise of its seven popular brands - Aashirvaad, Sunfeast, Bingo!, Kitchens of India, mint-o, Candyman and Yippee! Over the past 5 years, the business has grown at an impressive rate faster than that of the industry. 20. Kitchens of India Aashirvaad Sunfeast 21. ITC Vs Other Players Sunfeast Biscuits at third position with 10% market share after Britannia and Parle respectively. Aashirwad wheat flour is on top with 40% market share, virtually forcing HUL to slow down Annapurna wheat flour. Ready-to-eat Sunfeast Pasta established with 6% of volumes in branded noodles market. 8% market share in Biscuits industry(Rs 4500 Cr) & confectionery(Rs 2000 Cr) &15% Mkt share in atta and salt (Rs 1000 Cr) Bingo managed to capture an 11% market share of the Indian snack market within 6 months of its launch.Currently it has a market share of 13%. 22. In line with ITC's aspiration to be India's premier FMCG company, recognised for its world-class quality and enduring consumer trust, ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC has already launched an array of brands, each of which offers a unique and superior value proposition to discerning consumers. ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel UltraPro', 'Vivel' and Superia' brands has received encouraging consumer response and is being progressively extended nationally. 23. ITC made its entry to the education and stationery business with its Paperkraft brand in the premium segment in 2002; and later expanded into the popular segment with its Classmate brand in 2003. By 2007, Classmate became the largest Notebook brand in the country. Together, Classmate and Paperkraft offer a range of products in the Education & Stationery space to the discerning consumer, providing unrivalled value in terms of product & price. 24. As part of its strategic initiative to create multiple drivers of growth in the FMCG sector, ITC commenced marketing safety matches and agarbattis sourced from the small-scale sector. The business leverages the core strengths of ITC in marketing and distribution, brand building, supply chain management. ITC's range of Safety matches and Agarbattis include popular brands like Aim, Aim Special, Aim Premium, Mangaldeep and i Kno. 25. ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, ITC has a leadership position in every segment of the market. ITCs highly popular portfolio of brands includes Insignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol, Flake, Silk Cut, Duke & Royal, Armenteros 26. Pricing Bingo was launched in 2007 The pricing strategy adopted by Bingo is a clever one Bingo is priced the same as the Lays brand of chips at Rs10 for a 35g packet and Rs5 for the smaller one. A factor that aided Bingo was the failed pricing strategy of Lays in late 2007.Frito Lay had increased the price of Lays from Rs10 for 35g to Rs15 for 45g. By adopting a consistent pricing strategy and by offering higher margins to the retailers Bingo has won the retailers hearts. 27. Distribution The large, country wide distribution network of ITC built up over the years was a key factor in Bingos ubiquitous availability. Bingo pack of chips even at the smallest shop in the remotest parts of India. It also has entered into an agreement with the Food Bazaar chain of outlets for retail of its Bingo and other brands of food products Bingo has struck at the small shops, to which it's offering a margin that's 4% to 5% higher than what Frito Lays is paying 28. BINGO 29. Pricing The biscuits industry now has two clear models. Parle plays a high volume, low margin game. Britannia and Sunfeast look at a two-pronged strategy. High margins in cream variants and volumes from the Marie and Glucose segments. 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. 30. Distribution The company used its existing network of convenience stores. The company also looked at grocery stores and other retail formats. The company says the brand is now available in nearly 1.8 million outlets 31. SUNFEAST In 2005 Sunfeast launched its major campaign. It signed on SRK as its brand ambassador. In same year as the official sponsor of the WTA tennis championship titled the sunfeast open the company had teenage sensations sania mirza, Sachin Tendulkar and Mahesh bhupatti campaigning for it. In southern states, sunfeast has signed tamil superstar Surya as a brand ambassador. 32. Vivel di wills Kareena Kapoor is the brand ambassador for Vivel di wills since its onset. While ITC signed Tamil actress Trisha as a brand ambassador in southern states. 33. Fiama Di Wills Deepika Padukone is the brand ambassador for Fiama di wills since its launch in 2007. Sapna Bhavnani, a celebrity hair stylist, has also endorsed the brand since March 2010. She spearheaded "Tress-Talk", a unique initiative in which she created a Fiama Di Wills look for a model and spoke at length on specific hair care for different types of hair 34. Classmate, ITC's education and stationery products brand, has signed Yuvraj Singh and Soha Ali Khan as brand ambassadors for its range of products. 35. Future Plans ITC has planned to undertake investments of nearly Rs 25,000 crore spread over 40 projects across the country in the next 5-7 years. The company is also working towards entering the nutrition, health and well-being segment. The company aiming to become the number one FMCG player in the country (barring cigarettes).