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8/11/2019 Title of Presentation ncndalkbvjadbvojbadljbvzdbvlodzbvlobzdljvnzdlkvb

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Name

TitleCompany Name


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*One of the worlds most reputable company

Market capitalization of nearly US $ 18 billion

post tax profit of US $ 750 million

Diversified product portfolio

Direct group employment of 29000


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Introduction to Sunfeast

Growth rate of 53%

Turnover of over 1000 crore

Wide categorization

Launched in July, 2003

ITC Biscuits industry come out to be aroundRs 4000 crores


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In 2003, the biscuit market in India was estimated to be about 0.8

million ton, with a Value of about Rs. 45 billion. The share of theorganized sector in the biscuit market was estimated to be about 50

%. BRITANNIA and PARLE held more than 80% of the organized Sector

share in value terms. The market was growing at a rate of 5% to 8%

This was the scenario which ITC decided to enter with its

Sunfeast range of Glucose , Marie, and Cream biscuits . ITCs market

research had shown that urban India, which Comprised about 27% of

the population, accounted for almost 44% of the biscuit consumption.

Market research also revealed that consumers were looking for

innovation , variety, and fun in all the biscuit categoriesITC, therefore , decided to enter the branded biscuit market with

The product that would reinforce the gratifying aspects of the brands

as well as offer great taste and quality to customers.


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Products at a Glance


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Annual Growth:

The biscuit industry in India witnessed annual growth as below:-

2005-06 - 14%

2006-07 - 13%

2007-08 - 15%

2008-09 - 10%

2009-10 - 14%

2010-11 - 15%

Press Report 2005

ITC Ltd today reported a 17.9 per centrise in post-tax profit for the third quarter(Q3) ended December 31, 2004, at Rs

448.94 crore on the back of a 10 per

cent rise in net sales for the quarter at

Rs 1795 crore.
http://www.itcportal.com/about-itc/newsroom/press-reports/PressReports.aspx?Year=2005http://www.itcportal.com/about-itc/newsroom/press-reports/PressReports.aspx?Year=2005http://www.itcportal.com/about-itc/newsroom/press-reports/PressReports.aspx?Year=2005http://www.itcportal.com/about-itc/newsroom/press-reports/PressReports.aspx?Year=2005


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Targeting

Sunfeast Glucose targeted children in the age group4-14 years and their mothers, Sunfeast Orange Marieand Marie Light were targeted athousewives/families. Sunfeast Cream (orange,butterscotch, and bourbon) was also targeted atchildren. The Orange Marie and butterscotch cream

variants were introduced after a year long productR&D effort and extensive sampling covering 14,000consumers. Gradually, the product line was expanded(Refer Table II for the product list in 2006)...

STP

Segment

Taste and Quality conscious children and

adults

Target Group

All age groups middle and upper class

people

Positioning Ideal tea time biscuit


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Biscuit Segmenting Targeting Pricing

Sunfeast glucose biscuit

Natural goodness of

wheat

Children betweenthe age group 4-14

yrs & mothers

100gms - Rs. 4,75gms - Rs 3,

19gms - Rs. 1

Sunfeast orange marie

A very differentiate

offering Housewives 200gms - Rs. 13

Sunfeast marie light

Tight and Crispy Housewives

200gms - Rs. 13

, 400gms - Rs.24

Sunfeast orange cream Smooth and yummy

Cream

Children between

the age group 4-14

yrs 100gms - Rs.11

Sunfeast Butterscoth

Cream Smooth and yummy

Cream

Children between

the age group 4-14

yrs 100gms - Rs. 11

Sunfeast bourbon

cream

Smooth and yummy

Cream

Children between

the age group 4-14

yrs 100gms - Rs12


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FACTORY

C F

WHOLESALE

DISTRIBUTOR

WHOLESALE

DEALER

BASE

RETAILER


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Parent Company ITC

Category Biscuits

Sector Food Products

Tagline/ Slogan Light Khaao Light Raho; Spread the smile

USP

Ideal teatime biscuit is made from the finest quality wheat high

in fibre and keeps one light and healthy through the day

SWOT Analysis

Strength

1. Low cost 2.Good advertising and visibility 3.Good product

quality and packaging 4.Celebrity brand ambassador

Weakness 1. Many competitors in this segment 2.Nothing unique

Opportunity 1. Tie-up with corporates/hotel chains

Threats

1. Severe threat from wafer and salted snacks segment

2.Similar biscuit categories


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Competition

Competitors

1. Britannia

2. Parle G

Competitors Analysis

The major Competitors are

Britannia

90% of annual revenue comes from the biscuits

Wide range of biscuits

Good distribution network of around 3 million stores

Parle

Oldest and largest selling brandin glucose segment (70% share in glucosesegment)

Low price range of biscuits

Plays with high volume and low profit margin


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Products:-

Sunfeast glucose

Sunfeast marie light

Sunfeast dream cream

Sunfeast dark fantasy

Sunfeast snacky

Sunfeast sweet n salt, nice

Sunfeast special

Sunfeast benne vita flaxseed biscuits


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Place:-

Distribution network:-

The company used its existing network of convenience stores: the

companys name for the hole-in-the-wall pan-beedi shops for Sunfeast.

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.


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Manufacturing units:-14 manufacturing units

The company has extended its manufacturing capacity by setting up three newbiscuit plants in UP and West Bengal to focus on supply chain management strategyto enhance product freshness, market servicing and margins


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Promotions:-

Advertisements & promotions: 35-40% of turnover

Sunfeast school programme: cover 1000 schools across country, to

familiarize children with sunfeast brand name and sunfeast mascot.

Brand ambassador: shahrukh khan & surya (south actor)

Official sponsor of WTA tennis championship-sunfeast open.

Launch of SachinsFit Kit, the first product co-created with brand

ambassador.

Other activities:

On buses, print media , hoardings, TV and radio advertisements


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Price:-

Sunfeast look at a two prolonged strategy:-

High margin & High volume

(High margins in cream variants and volumes from the

Marie and Glucose segments)

examples-

sunfeast glucose (200 gm): 20/-

sunfeast marie light (130gm : 10/-

Sunfeast dream cream (82): 10/-


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Food products are normally ahigh volume ball game. Products

have to essentially be available in

the market at all given points of

time and at all given points of

purchase.

The skeleton of distr ibution system

is same for all the companies but it

depends on eff icient sales anddistr ibution system of a firm how

well they manages them

ITC done very well in this case

ON LUSION

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