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KALKAJI
PROJECT COMPLETION
CERTIFICATE
This is to certify that the Project Work titled "Product Analysis of ITC" is a
bonafide work of Deep Singh, Enrollment No. : 41424588818 carried out in
partial fulfillment for the award of degree of B.Com.(Hon.) of Jagannath
International Management School under my guidance. This project work is
original and not submitted earlier for the award of any degree / diploma or
associate ship of any other University / Institution.
Place:
Date:
DECLARATION
I, Deep Singh being a student of B.COM(Hons.) second semester of JAGANNATH
INTERNATIONAL MANAGEMENT SCHOOL hereby declares that the project report
under title "PRODUCT ANALYSIS OF ITC" is my own work. All care has been taken
to keep this report error free and I sincerely regret for any unintended
discrepancies that might have crept into this report. I shall be highly obliged if
errors (if any) be brought to my attention.
Thank You
(Deep Singh)
ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and organizations.
would like to extend my sincere thanks to all of them.
I am highly indebted to Ms. Ashima Sexana for their guidance and constant
supervision as well as for providing necessary information regarding the project &
also for their support in completing the project.
I would like to express my special gratitude and thanks to industry persons for
giving me such attention and time.
List of tables 7
3. Objectives 14
4. Literature Review 15
5. Research Methodology 69
6. Analysis & Interpretation 70
7. Limitations 82
8. Conclusion 83
9. Bibliography
LIST OF TABLES
PAGE
NO.
2.1
45
Product Range
2. Table 3.1 Market Stand Of ITC Ltd. 73
PAGE
S NO. FIGURE TITLE
NO.
Figure 2.1 ITC products 27
2. Figure 2.2 Food business 32
Its businesses and brands are focused almost entirely on the Indian markets,
and despite being most well-known for its tobacco brands such as Gold Flake,
the business is now diversifying into new FMCG (Fast Moving Consumer
Goods) brands in a number of market sectors including cigarettes, hotels,
paper, agriculture, packaged foods and confectionary, branded apparel,
personal care, greetings cards, Information Technology, safety matches,
incense sticks and stationery. Examples of its successful new FMCG products
include:
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Aashirvaad - hdia's most popular atta brand with over 50% market sh are. It is
also present in spices and instant mixes.
Sunfeast - is ITC's biscuit brand (and the sub-brand is also used on some pasta
products).
The demand for some of their product is low, because people don't know about
their brands very well.
ITC knows their strength and weakness in the personal care market, so they are
applying new concept to overcome their weaknesses.
ITC is now offering more margins, exciting offers and long credit period to
retailers and wholesalers.
13
CHAPTER -
INTRODUCTION TO THE TOPIC
Product
In general, the product is defined as a "thing produced by labor or effort" or
the "result of an act or a process", and stems from the verb prod4ruce, from
the Latin prödüce(re) '(to) lead or bring forth'. Since 1575, the word
"product" has referred to anything produced. Since 1695, the word has
referred to "thing or things produced".
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Classification of Product
A product can be classified as:-
Tangible Product - A tangible product is a physical object that can be perceived
by touch such as a building, vehicle, gadget, or clothing.
2 Intangible Product - An intangible product is a product that can only be
perceived indirectly such as an insurance policy.
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OBJECTIVES
To find the product's design specification are based on the requirements of the
target market and the manufacturing facilities available are up to it.
The product's performance; i.e., how suitable it is for its end use and what are
its aftercare requirements.
The quality of the fibers, and manufacture: e.g., how adequate are the,
fastenings and seam allowance.
17
international competitiveness but by also consciously contributing to
enhancing the competitiveness of the larger value chain of which it is a part."
ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd,
provides IT services and solutions to leading global customers. ITC Infotech
has carved a niche for itself by addressing customer challenges through
innovative IT solutions.
ITC's production facilities and hotels have won numerous national and
international awards for quality, productivity, safety and environment
management systems. ITC was the first company in India to voluntarily seek a
corporate governance rating.
ITC employs over 26,000 people at more than 60 locations across India. The
Company continuously endeavors to enhance its wealth generating
capabilities in a globalizing environment to consistently reward more than 4,
08, 000 shareholders, fulfill the aspirations of its stakeholders and meet
societal expectations. This over-arching vision of the company is expressively
captured in its corporate positioning statement: "Enduring Value. For the
Nation. For the Shareholder."
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History
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited. As the Company’s ownership progressively
Indianite, the name of the Company was changed from Imperial Tobacco
Company of India Limited to India Tobacco Company Limited in 1970 and
then to I.T.C. Limited in 1974. In recognition of the Company’s multi-business
portfolio encompassing a wide range of businesses - Fast Moving Consumer
Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded
Apparel, Education and Stationery Products, Incense Sticks and Safety
Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business
and Information Technology - the full stops in the Company’s name were
removed effective September 18, 2001. The Company now stands
rechristened 'ITC Limited'.
Though the first six decades of the Company’s existence were primarily
devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco
businesses, the Seventies witnessed the beginnings of a corporate
In 1975, the Company launched its Hotels business with the acquisition of a
hotel in Chennai which was rechristened 'ITC-Welcom group Hotel Chola'
(now renamed My Fortune, Chennai). The objective of ITC's entry into the
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hotels business was rooted in the concept of creating value for the nation. ITC
chose the Hotels business for its potential to earn high levels of foreign
exchange, create tourism infrastructure and generate large scale direct and
indirect employment. Since then ITC's Hotels business has grown to occupy a
position of leadership, with over 100 owned and managed properties spread
across India under four brands namely, ITC Hotels - Luxury Collection,
Welcom Hotels, Fortune Hotels and Welcom Heritage.
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Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri
Business Division for export of agri-commodities. The Division is today one of
India's largest exporters. ITC's unique and now widely acknowledged
eChoupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now
it extends to 10 states covering over 4 million farmers. Also, through the
'Choupal Pradarshan Khet' initiative, the agri services vertical has been
focusing on improving productivity of crops while deepening relationship
with the farming community.
ITC launched line of premium range of notebooks under brand Paper craft in
2002. To augment its offering and to reach a wider student population, the
Classmate range of notebooks was launched in 2003. Classmate over the
years has grown to become India's largest notebook brand and has also
increased its portfolio to occupy a greater share of the school bag. Years
2007- 2009 saw the launch of Practical Books, Drawing Books, Geometry
Boxes, Pens and Pencils under the 'Classmate' brand. In 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. 'Paperkraft' offers a diverse portfolio in the premium
executive stationery and office consumables segment. In 201 0, Color Crew
was launched as a new brand of art stationery.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of
international quality relaxed wear for men and women in 2000. The Wills
Lifestyle chain of exclusive stores later expanded its range to include Wills
Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also
initiated a foray into the popular segment with its men's wear brand, John
Players, in 2002. In 2006, Wills Lifestyle became title partner of the country’s
most premier fashion event - Wills Lifestyle India Fashion Week - that has
gained recognition from buyers and retailers as the single largest B-2-B
platform for the Fashion Design industry. To mark the occasion, ITC launched
a special 'Wills Signature', taking the event forward to consumers.
In 2000, ITC spun off its information technology business into a wholly owned
subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging
opportunities in this area. Today ITC Infotech is one of India's fastest growing
global IT and IT-enabled services companies and has established itself as a
key player in offshore outsourcing, providing outsourced IT solutions and
services to leading global customers across key focus verticals - Banking
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Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG),
Retail, Manufacturing, Engineering Services, Media & Entertainment, Travel,
Hospitality, Life Sciences and Transportation & Logistics.
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked
the manifestation of its partnership with the cottage sector. Mangaldeep is a
highly established national brand and is available across a range of fragrances
like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and
Nagchampa.
ITC entered the Personal Care Business in 2005. In seven years, the Personal
Care portfolio has grown under 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel' and
'Superia' brands which have received encouraging consumer response and
are also being progressively extended nationally.
In 2010, ITC launched its hand rolled cigar, Armentieres, in the Indian market.
Armentieres cigars are available exclusively at tobacco selling outlets in select
hotels, fine dining restaurants and exclusive clubs.
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THE ITC WAY
ITC is a board-managed professional company, committed to creating
enduring value for the shareholder and for the nation. It has a rich
organizational culture rooted in its core values of respect for people and
belief in empowerment. Its philosophy of all-round value creation is backed
by strong corporate governance policies and systems.
• Ensure that each of its businesses is world class and internationally competitive.
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RESEARCH & DEVELOPMENT
ITC is committed to delivering world-class products and services. This
requires a clear focus on continuously striving to create a higher value to
customers by achieving excellence in all Companys operations. Business
excellence calls for a passionate focus on technology, products, services,
processes and an operating environment firmly anchored to an impregnable
foundation of Quality.
ITC firmly believes that quality is not a specifically assignable task. It needs to be
firmly rooted and institutionalized in the culture and value system of the
Company. ITC nurtures a culture of striving for continuous improvement in quality,
be it in products, services, systems or performance. The Company is committed to
the establishment of systems and processes to promote organizational creativity
and innovation.
All ITC manufacturing units have ISO quality certification. Almost all contract
manufacturing units in the Foods Business and all large hotels have food
safety and quality systems certified by accredited 'third party' in accordance
with 'Hazard Analysis Critical Control Points' (HACCP) standards. Additionally,
the quality of all FMCG products of the Company is regularly monitored
through 'Product Quality Rating System' (PQRS). The Leaf Tobacco and
Printing & Packaging businesses have achieved world-class ratings in the
'International Quality Rating System' (IQRS) for business excellence in which
key processes are rated against international benchmarks and certified by
accredited 'third party' independent assurance providers.
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FORBES RANKING
ITC features on the Forbes Global 2000 rankings for 2007 at position 1256.
ITC is the only Indian FMCG company that features on the Forbes Global 2000
rankings for 2009 at position 987.
ITC also featured on the Forbes World's Most reputable Companies List at
position 95.
STRENGTHS
ITC leveraged it traditional businesses to develop new brands for new
segments. For example, ITC used its experience of transporting and
distributing tobacco products to remote and distant parts of hdia to the
advantage of its FMCG products. ITC master chefs from its hotel chain are
often asked to develop new food concepts for its FMCG business.
WEAKNESSES
The company’s original business was traded in tobacco. ITC stands for
Imperial Tobacco Company of India Limited. It is interesting that a business
that is now so involved in branding continues to use its original name, despite
the negative connection of tobacco with poor health and premature death.
To fund its cash guzzling FMCG start-up, the company is still dependent upon
its tobacco revenues. Cigarettes account for 47 per cent of the companys
turnover, and that in itself is responsible for of its profits. So there is an
argument that WC's move into FMCG (Fast Moving Consumer Goods) is being
subsidized by its tobacco operations. Its Gold Flake tobacco brand is the
largest FMCG brand in India - and this single brand alone holds
70% of the tobacco market.
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OPPORTUNITIES
Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others)
can be developed using strategies of market development, product
development and marketing penetration.
ITC is moving into new and emerging sectors including Information Technology,
supporting business solutions.
E-Choupal is a community of practice that links rural Indian farmers using the
Internet. This is an original and well thought of initiative that could be used in
other sectors in many other parts of the world. It is also an ambitious project
that has a goal of reaching 10 million farmers in 100,000 villages.
ITC leverages e-Choupal in a novel way. The company researched the tastes
of consumers in the North, West and East of India of atta (a popular type of
wheat flour), then used the network to source and create the raw materials
from farmers and then blend them for consumers under purposeful brand
names such as Aashirvaad Select in the Northern market, Aashirvaad MP
Chakki in the Western market and Aashirvaad in the Eastern market. This concept
is tremendously difficult for competitors to emulate.
Chairman Yogi Deveshwar's strategic vision is to tum his Indian conglomerate
into the country’s premier FMCG business.
Per capita consumption of personal care products in India is the lowest in the
world offering an opportunity for ITC's soaps, shampoos and fragrances
under their Wills brand
THREATS
The obvious threat is from competition, both domestic and international. The
laws of economics dictate that if competitors see that there is a solid profit to
be made in an emerging consumer society that ultimately new products and
services will be made available. Western companies will see India as an
exciting opportunity for themselves to find new market segments for their
own offerings.
ITC's opportunities are likely to be opportunities for other companies as well.
Therefore the dynamic of competition will alter in the medium-term. Then ITC will
need to decide whether being a diversified conglomerate is the most competitive
strategic formation for a secure future.
DIVERSIFICATION
ITC has been a leader in the tobacco business, but it realize from the upcoming
trends that remaining with a single business is not a noble thought, moreover the
company was threatened of the anti-tobacco campaign. Therefore the company
26
decided to venture into InfoTech with ITC InfoTech, foods via Kitchens of India,
greeting cards through Expressions and lifestyle retailing through Wills Sport. Each
of these is intended to draw revenues of at least Rs.250 crore by 2005.
ITC was a cash rich company with a liquidity of Rs.8816 million in the
cigarette business, even though the company understood the need and
usefulness of diversification. The writer in the article is mainly concerned
with the way ITC spreads its wings in the lifestyle segments, he writes:"
Forty-five stores in 34 cities in just under a year, selling an expensive fashion
brand of relaxed-wear. If retail swamp-out and brand salience were the goals,
ITC's Wills Sport would be on a victory lap already."
The company has started its retail stores not only in Indian metros but also in
the small towns like Ranchi, Jabalpur, Gwalior, Belgaum, Emakulum etc. the
article also talks about the strong market campaign done by the company, it
also describe how the company has used its brand image to attract the Indian
youth. It also tells about the strategy adopted by the company to
differentiate itself in this segment, like the company is outsourcing its designs
form the American Design intelligence Group (ADIG), a , US-based garment
and retail consultancy. Now it has its own six-member team, even as it
continues a tieup with Science & Designs, an Italian fashion design house —
through which it keeps a watch on hot western labels such as Banana
Republic and Armani
Exchange.
27
Packaging
4. Agri- Business
Agri Commodities & Rural
Services
E-choupal
Leaf Tobacco, Spices & Agri Inputs
5. Information Technology
ITC BUSINESSES
FMCG
It is ITC's strategic intent to secure long-term growth by synergizing and
blending the diverse pool of competencies residing in its various businesses
to exploit emerging opportunities in the FMCG sector.
28
The Companys institutional strengths — deep understanding of the Indian
consumer, strong trademarks, deep and wide distribution network, agrisourcing
skills, packaging know-how and cuisine expertise — continue to be effectively
leveraged to rapidly grow the new FMCG businesses.
Over the last few years, ITC has rapidly scaled up presence in its newer FMCG
businesses comprising Branded Packaged Foods, Lifestyle Retailing, Education
and Stationery products, Personal Care products, Safety Matches and Incense
Sticks (Agarbatti) with Segment Revenues growing at an impressive
compound annual growth rate of 38% during the last 5 years.
The Companys unwavering focus on quality, innovation and differentiation
backed by deep consumer insights, world-class R&D and an efficient and
responsive supply chain will further strengthen its leadership position in the
Indian FMCG industry.
ITC is the market leader in cigarettes in India. With its wide range of
invaluable brands, [TC has a leadership position in every segment of the
market. ITC's 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.
The Company has been able to consolidate its leadership position with single
minded focus on continuous value creation for consumers through significant
investments in creating & bringing to market innovative product designs,
maintaining consistent & superior quality, state-of-the-art manufacturing
technology, & superior marketing and distribution. With consumers & consumer
insights driving strategy, ITC has been able to fortify market standing in the long-
term, by developing & delivering contemporary offers relevant to the changing
attitudes & aspirations of the constantly evolving consumer.
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excellent work practices benchmarked to the best globally. An efficient
supplychain & distribution network reaches india's popular brands across the
length
& breadth of the country.
Awards
ITC's Cigarettes business has been winning numerous awards for its quality,
environmental management systems and product excellence:
• 'Best Manufacturer of Cigarettes' for the year 2008 & 2007 and Best Exporter
of Cigarettes for 2008 by the Tobacco Board based on previous three years'
performance.
• 5 Star Health and Safety Rating in 2007 from the British Safety Council to the
Bengaluru, Munger, Kolkata and Saharanpur factories and the "Sword of
Honour" for Bengaluru & Saharanpur factories in 2006.
• Greentech Gold Award for excellence in Safety Management for the year
2007 to the Bengaluru, Kolkata and Saharanpur cigarette factories for the
high level of performance that the units have achieved in Environment Health
and Safety (EHS). Saharanpur along with Kolkata and Munger factories were
honoured with the God award and the Bengaluru Factory with the Platinum
Award in 2006.
• Safety innovation Award for 2007 and 2006 for Innovative Safety
Management System to the Bengaluru Factory from the Institution of
Engineers and also the Unnatha Suraksha Puraskara Award 2006 from
NSC Karnataka Chapter.
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• Golden Peacock Award for Occupational Health and Safety from the Institute
of Directors, New Delhi; Award for Outstanding Performance in Environment
Health and Safety from the C ll and the Suraksha Puraskar Award from the
National Safety Council, Mumbai to the Kolkata factory in 2007 and the "1st
National Security Today Award" in the category of Best Maintained Fire Safety
System in 2005.
• Occupational Health and Safety God Award from the ROSPA, UK; the Winners
Trophy - Safety Health and Environment Award from the C ll Eastern region;
National Award for Excellence in Water Management and innovative Project
Award Initiatives for Energy Conservation from the C ll to the Munger factory
in 2007 and also the Excellence in Water Management Award from CII-GBC
for 2006.
• All the four factories are certified by Det Norske Veritas (DNV) for ISO 14001,
for their Environment Management Systems, OHSAS 18001 for their
Occupational Health and Safety Management Systems (OHSMS) and the SO
9000-2000 for Quality Management Systems. The Kolkata factory is the first
cigarette factory in India to be awarded the SA 8000 Certificate for Social
Accountability by Det Norske Veritas (DNV) in June 2004.
ITC's R&D Centre at Peenya, Bengaluru has the distinction of being the first
independent R&D Centre in India to get ISO 9001 accreditation and certified
with ISO 14001 for Environment Management Systems by DNV. The R&D
Centre is also certified for the standard ISO/IECI 70252005, by National
Accreditation Board for Testing and Calibration Laboratories (NABL). This
certification is awarded for "General requirement for the competence of
Testing & Calibration Laboratories".
FOODS
ITC made its entry into the branded & packaged Foods business in August
2001 with the launch of the Kitchens of India brand. A more broad-based
entry has been made since June 2002 with brand launches in the
Confectionery, Staples and Snack Foods segments.
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packaging and sourcing of agricultural commodities. ITC's word famous
restaurants like the Bukhara and the Dum Pukht, nurtured by the Companys
Hotels business, demonstrate that ITC has a deep understanding of the Indian
palate and the expertise required to translate this knowledge into delightful
dining experiences for the consumer. ITC has stood for quality products for
over 100 years to the Indian consumer and several of its brands are today
internationally benchmarked for quality.
The Foods business carries forward this proud tradition to deliver quality
food products to the consumer. All products of ITC's Foods business available
in the market today have been crafted based on consumer insights developed
through extensive market research. Apart from the current portfolio of
products, several new and innovative products are under development in
ITC's state-of-the-art Product Development facility located at Bengaluru.
leveraged in sourcing best quality agricultural produce for ITC's Foods business.
Staples
Confectionery
Snack Foods
32
Figure 2.2 Food business
LIFESTYLE RETAILING
ITC's Lifestyle Retailing Business Division has established a nationwide
retailing presence through its Wills Lifestyle chain of exclusive specialty
stores. Wills Lifestyle, the fashion destination, offers a tempting choice of
Wills Classic work wear, Wills Sport relaxed wear, Wills Clublife evening wear,
fashion accessories and Essenza Di Wills - an exclusive range of fine
fragrances and bath & body care products and Fiama Di Wills - a range of
premium shampoos and shower gels. Wills Lifestyle has also introduced Wills
Signature designer wear, designed by the leading designers of the country.
With a distinctive presence across segments at the premium end, [TC has also
established John Players as a brand that offers a complete fashion wardrobe
to the male youth of today. With its brands, ITC is committed to build a
dominant presence in the apparel market through a robust portfolio of
offerings.
JOHN
WILLS LIFESTYLE PLAYERS
Awards
ITC's Lifestyle Retailing Business has won numerous awards for its quality,
marketing and product excellence:
LRBD has won several mages Fashion Awards over the years:
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2009: Most admired Fashion Brand of the year - Fashion Forward — Wills
Lifestyle
2007.• Most Admired Fashion Campaign - John Players
2005: Most Admired Shirt Brand of the Year - John
Players
2004: Rising Star Brand of the Year - John Players
2003.• Most Admired Exclusive Brand Retail Chain of the Year - Wills
Lifestyle
2002.• Most Admired Women's Wear Brand of the Year - Wills Sport
2001: The Most Admired Brand Launch of the Year - Wills Sport
The Most Admired Exclusive Brand Retail Chain of the Year - Wills
Lifestyle.
•:• "Best Retail Marketing Campaign of the Year" Award at Reid & Taylor Awards
for Retail Excellence in 2011
•:• Award for Customer and Brand Loyalty in Retail Sector category at the 4th
Loyalty Summit, 2011
•:• Retailer of the Year Award to Wills Lifestyle in Fashion & Lifestyle category at
Asia Retail Congress 2008.
•:• Wills Lifestyle rated amongst the top 5 Luxury brands in the country in a
Global Luxury Survey conducted by TIME Magazine.
•:• Front runner Award - 2007 to Wills Lifestyle in the Retail category by Real
Estate Observer & Trammel Crow Meghraj.
•:• Super brand 2006 awarded to Wills Lifestyle by the Super brands Council of
India.
•:• The "Best Supply Chain Practices Award 2006" for time-effective and
costefficient Logistics management in Organized Retail. The awards were
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organized by Retailers Association of India (RAI) in association with ITW
Signode - the International leaders in packaging solutions.
•:• The Division's Product & Quality Testing facilities were awarded the
prestigious accreditation by the National Accreditation Board of Laboratories
of the Department of Science and Technology, GOI (affiliated to the
International Laboratories Accreditation Cooperation - Geneva) in 2006. This
accreditation is awarded after rigorous procedures confirmed that LRBD's
Testing facilities truly conform to international standards in terms of quality
and technical competence. The Division also obtained ISO
9001:2000certification in the area of Receipt, Storage & Distribution of
Merchandise / Finished Goods by Det Norske Veritas, Netherlands.
•:• NID Awards for Design Excellence for Best Packaging Design
in the FMCG
Category for John Players.
•:• Award for Customer and Brand Loyalty in Retail Sector category at the 2nd
Loyalty Summit.
ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills',
'Vivel Ultra Pro', 'Vivel' and 'Superia' brands has received encouraging
consumer response and is being progressively extended nationally.
35
Extensive insights gained by ITC through its numerous consumer
engagements have provided the platform for its R&D and Product
Development teams to develop superior, differentiated products that meet
the consumer's stated and innate needs. The product formulations use
internationally recognized safe ingredients, subjected to the highest
standards of safety and performance.
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.
Paperkraft Business paper and the papers used in Classmate and Paperkraft
notebooks are superior in quality and environment-friendly. Other offerings
available in education and Stationery range are safe and certified non-toxic.
36
Paperkraf
Figure 2.5 Education & Stationary products
SAFETY MATCHES
ITC's range of Safety matches includes popular brands like Aim, Aim Special,
Aim Premium and iKno. With differentiated product features and innovative
value additions, these brands effectively address the needs of different
consumer segments. ITC also exports regular and premium safety matches
brands to markets such as Middle East, Africa and the USA. The successful
acquisition of Wimco Ltd., a subsidiary of ITC has consolidated the market
standing of the Companys Matches business through synergy benefits
derived through combined portfolio of offerings, improved servicing of
proximal markets and freight optimization. Through its participation, [TC aims
to enhance the competitiveness of the small and medium scale sectors
through its complementary R&D based product development and marketing
strengths, especially the breadth and depth of the Companys trade marketing
and distribution.
AGGARBATTIS
37
scale sectors through its complementary R&D based product development
and strengths in trade marketing and distribution.
38
The Business continues to work on various exciting new offerings to the
consumers and is planning to launch them in the near future.
In line with ITC's Triple Bottom Line philosophy of every business contributing to
the nation's economic, environmental and social capital, Mangaldeep agarbattis
are manufactured by small scale and cottage units, providing livelihood
opportunities for more than 12,000 people. Six out of 17 Mangaldeep Agarbatti
manufacturing units are ISO 9000 certified. Mangaldeep ASHA (Assistance in
Social Habilitation through Agarbattis) is an ITC initiative to improve the quality of
raw agarbatti production and provide better value realization for women rollers.
Under the project, ITC has extended support to NGOs in states and like Bihar,
Tripura, Tamil Nadu, who are setting up agarbatti units, training village women in
rolling agarbattis and employing them in these units. In the latest initiative, ITC
signed a MOU with Orissa Government run Orissa Rural Development and
Marketing Society (ORMAS) for marketing raw incense sticks in the state- a move
that is expected to provide employment opportunities to over 3000 rural women.
HOTELS
ITC Hotels, India's premier chain of luxury hotels was launched on October
18, 1975, with the opening of its first hotel - Chola Sheraton (now
rechristened as My Fortune) in Chennai. Since then the ITC Hotels brand has
become synonymous with Indian hospitality. With over 100 hotels in more
than 90 destinations, ITC Hotels has set new standards of excellence in the
hotel industry in Accommodation, Cuisine, Environment and Guest Safety.
A leader in the premium hospitality segment, ITC Hotels have had the
privilege of hosting world leaders, Heads of State and discerning guests from
across the world and within.
As one of India's most dynamic hospitality chains, ITC Hotels has set
standards for excellence in the hotel industry by pioneering the concept of
branded accommodation. The chain has developed three brands of
accommodation ITC One', 'Towers' and the 'Executive Club' to differentiate
between the needs of various travelers and provide high levels of service.
First to introduce branded cuisine, its restaurants Bukhara, Dakshin and DumPukht
are renowned for their delicious and authentic Indian cuisines from the different
regions of India. ITC Hotels also showcases international cuisine in its specialty
restaurants West View and Pan Asian.
39
Figure 2.7 Authentic Indian cuisines
In 2007, ITC Hotels entered a new phase in its collaboration with Starwood
Hotels & Resorts. ITC Hotels now has an exclusive tie-up with Starwood in
bringing its premium brand, the 'Luxury Collection', to India. These are super
deluxe and premium hotels located at strategic business and leisure
locations. The ten hotels which are part of this collection are: ITC Grand Chola
in Chennai, ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar in Kolkata,
ITC Grand Central in Mumbai, ITC Windsor &ITC Gardenia in Bengaluru, ITC
Kakatiya in Hyderabad and ITC Mughal in Agra and ITC Rajputana in Jaipur.
40
Welcom Hotels offer five-star hospitality for the discerning business and
leisure traveller. Currently there are three hotels under this brand namely,
Welcom Hotel Rama International Aurangabad, Welcom Hotel Vadodara and
Welcom Hotel Grand Bay Vishakhapatnam. Two other Welcom Hotel
Sheratons - Sheraton Park Hotel and Towers, Chennai and Sheraton New
Delhi offer warm, comforting services to the global traveller and a chance to
connect.
41
hotels are expected to be commissioned soon in other key locations in
India.
Welcom Environ
Welcom Environ is ITC Hotels' vision for a green world. It's a multi-faceted
programme started in order to propagate environmental causes in the cities
where [TC Hotels' hotels are located. With the guiding principle of 'Reduce,
Reuse and Recycle', each hotel has its own programme, encompassing local
participation, creating awareness among employees and internal
conservation.
The ITC Green Centre in Gurgaon, the headquarters of ITC's Hotels Business is
the physical expression of this commitment to sustainability - Ecological,
Social and Economic. This building is one of the world's largest green
42
buildings with space of over 170,000 square feet and the first non-
commercial
At ITC Green Centre, energy consumption has been reduced significantly through
design integration. The building has been designed to maximize the effect of
natural light during daytime, largely eliminating the need for artificial ones. At the
same time, the window glass, while allowing light inside, does not allow heat. This
not only keeps the office cool from inside during the day, but also decreases the
load on air-conditioners. Again, there is minimum exterior lighting to limit night
sky pollution. The water consumption has dropped by 40 per cent and, with a
water re-cycling plant; the building is now a zero water discharge building.
43
abled have been employed in diverse functions like housekeeping,
teleworking, bakery and as musicians. Special badges for the visually
impaired, whistles for hearing impaired employees to use in an emergency
and sign language classes for the staff to communicate with them are just a
few examples of how ITC Hotels has created an atmosphere of sensitivity and
caring.
ITC Hotels has also published a booklet aimed at sharing experiences with the
rest of the corporate world and laying down a step-by-step guide to demystify
the perceived complexities around employing persons with disabilities.
PACKAGING
Virgin Recycled
44
SPECIALITY
liquid
Cupstock
Barrier Packaging Antifungal COåted Boards
Food Grade Packaging Board
Coated Carton boards Cast Coated Boards
Coated Carton boards
Biodegradable
PAPERS oodfree
Opaque fine papers nbleached Kraft base papers
Printing Pharma Inserts Niche papers Superfine
Cigarette
papers
Tissues Decor Surface, Printing & barrier
Electrical
GRAPHICS
45
PLA Coated boards: Omegabev, Omegabarr, Omegawrap
Recycled boards: Eco Blanca, Eco Natura
Fine Papers: AlfaZap, Alfa Plus, Hi Brite, Paperkraft , Alfazine, Perma
White
The Tribeni unit specializes in fine papers and tissues and the product range
from this unit comprises opaque papers for fine printing like the Bible,
dictionaries, cigarette tissues, medical grade papers, anti-rust papers,
electrical insulation papers, decor surface, printing and barrier papers. The
Bollaram unit manufactures specialty boards such as cast coated papers and
46
boards, poly extrusion coated barrier boards and C2S art boards and ivory
boards. This unit is BRC- OP certified for food grade boards.
Customers are at the core of the business. This is reflected in the diverse
range of products, grades and value added services. There is a strong focus
on partnering customers to co-create and deliver superior solutions,
enhancing their competitive advantage.
All the 4 units of ITC PSPD are FSC-CoC (Forest Stewardship Council- Chain of
Custody) certified enabling it to provide a diverse range of
paperboards/paper with FSC certificate which is a god standard in wood
certification for ethical and legal sourcing.
The Business' quality philosophy is reflected at every stage - from the selection of
clones used for growing pulpwood to world-class manufacturing
facilities to the finishing and packing lines. It embraces the relevant skills and
competencies of employees, managers and specialists as well.
ITC's commitment beyond the market finds a strong expression in the Social
and Farm forestry programmes spearheaded by the business. These
programmers help create man hours of employment for the rural poor,
besides being a sustainable source of high-quality raw material for the
business. ITC's Research and Development efforts in creating disease
resistant, high yielding clones help farmers realize greater yields in a shorter
time - from land that may be otherwise unproductive. More than 1, 24,000
hectares of planted area stands testimony to ITC's commitment to
sustainable forestry.
47
become a member of the WWF GFTN programme. With this membership, ITC
has committed to bring larger volumes of its products and its operations
under credibly certified schemes like FSC.
PACKAGING
ITC's Packaging & Printing Business is the largest value added converter of
paperboard packaging in South Asia. It converts over 70,000 tonnes of paper,
paperboard and laminates per annum into a variety of value-added packaging
solutions for the food & beverage, personal products, cigarette, liquor and
consumer goods industries.
The Division, which was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business, is today hdia's most sophisticated packaging house.
State-of-the-art technology, world-class quality and a highly skilled and
dedicated team have combined to position ITC as the first-choice supplier of
high value added packaging.
48
With three packaging factories at Tiruvottiyur near Chennai (in the South),
Munger in Bihar (in the East), and Haridwar (in the North of India), the
Company offers a comprehensive product range in packaging backed by its
packaging expertise over the decades and cutting edge technology making it
truly a "One stop shop for Packaging".
Product Lines
ITC's Packaging Business has 3 major product lines
Carton Board Packaging
Printed Cartons
Fluted cartons
Flexible Packaging
Tobacco Packaging
49
Figure 2.14
Tobacco packaging
Tobacco packaging: ITC offers a
range of products line including
flip top boxes (Square, Round,
Beveled and Pillow Pack Hinge
lids etc.), Outers, Soft Cup labels,
Pack inserts, Printed cork
tipping, printed overwraps, inner frames. ITC makes value added shoulder
boxes for cigars and cigarettes. ITC supplies packaging for over 80 billion
cigarettes a year domestically, and supplies packaging for 15 billion cigarette
sticks a year for the export market to leading tobacco majors.
ITC has enhanced the value of some of the most favored brands with superior
look-and-feel packaging, using the best raw materials and process
combinations, and an in-house pre-press Design Centre.
Green Packaging
50
AGRI BUSINESS
AGRI COMMODITIES & RURAL
agricultural sector is based on strong and enduring farmer partnerships that has
revolutionized and transformed the rural agricultural sector. A unique rural digital
infrastructure network, coupled with deep understanding of agricultural practices
and intensive research, has built a competitive and efficient supply chain that
creates and delivers immense value across the agricultural value chain. One of the
largest exporters of agri products from the country, ITC sources the finest of Indian
Feed Ingredients, Food Grains, Marine Products, Processed Fruits, Coffee & Spices.
ITC's unique strength in this business is the extensive backward linkages it has
established with the farmers. This networking with the farming community has
51
enabled ITC to build a highly cost effective procurement system. ITC has made
significant investments in web-enabling the Indian farmer. Christened 'e-Choupal',
ITC's empowerment plan for the farmer centers around providing Internet kiosks
in villages. Farmers use this technology infrastructure to access on-line
information from ITC's farmer-friendly website www.echoupal.com. Data accessed
by the farmers relate to the weather, crop conditions, best practices in farming,
ruling international prices and a host of other relevant information.
Choupal Saagar
52
Figure 2.16 Choupal Saagar such as sourcing, training, soil testing, health
clinic, cafeteria, banking, investment services, fuel station etc. 24 'Choupal
Saagars' have commenced operations in the states of Madhya Pradesh,
Maharashtra and Uttar Pradesh. ITC is engaged in scaling up the rural retailing
initiative to establish a chain of
100 Choupal Saagars in the near future.
Choupal Fresh
Choupal Fresh, ITC's fresh food wholesale and retail initiative, leverages its
extensive backward linkages with farmers and supply chain efficiencies. It
focuses on stocking fresh horticulture produce like fresh fruits and
vegetables. Choupal Fresh retail stores are currently operational at
Hyderabad. The company has also set up a complete cold chain for ensuring
the availability of fresh products in the market, besides directly sourcing farm
fresh produce from the farmers.
53
Choupal Pradarshan Khet
In line with its mission of improving the quality of life in rural hdia, ITC's Agri
Business has launched a flagship extension programme called 'Choupal
Pradarshan Khet' (CPK) or demonstration plots to help farmers enhance farm
productivity by adopting agricultural best practices. Started in 2005-06, the crop
portfolio includes soya, paddy, cotton, maize, bajra, wheat, gram, mustard,
sunflower and potato. This initiative, has covered over 70,000 hectares and has a
multiplier impact and reaches out to 1.6 million farmers.
Processed Fruits
In line with its strategy of achieving a higher order of value capture, the
business also focuses on the value added segment, steadily enhancing its
basket of offerings with several new products. These include frozen foods,
IQF (individually quick frozen) fruits, niche products like baby-food quality
purees and high brix pulp and organic purees. ITC seeks to focus on this
segment and exploit the market opportunity for tropical fruits and fruit
products, where India has a natural advantage of growing the complete
range, including exotic varieties. In Processed Fruits category, ITC exports
from HACCP certified plants to Western Europe, North Africa, West Asia,
Japan and North America, a wide range of Processed Fruit products made
from Mango (Alphonso, Kesar & Totapuri), Guava, Papaya and Pomegranate.
ITC is the leading Indian exporter of Organic Fruit Products certified to
European (EC 2092/91) and US (NOP) Standards.
Fresh Table Grapes & Pomegranates are sourced from ITC's EUREPGAP
certified farmer groups & retailed through prominent supermarkets like
Sainsburys and Albert Heijn in Europe and Daiei in Japan.
54
Marine Products
ITC has been a significant exporter of seafood from India since 1971. It
exports frozen as well as cooked shrimps and other seafood products to
Japan, USA and Europe. Its well-known brands include Gold Ribbon, Blue
Ribbon, Aqua Kings, Aqua Bay, Aqua Feast and Peninsular.
ITC's Agri Business Division continues to use innovation as its core strategy to
retain its position as the one-stop shop for sourcing agri-commodities from
India. Besides setting benchmarks in quality, reliability and value-added
services, ITC is a trendsetter in customer care particularly in commodity
trading. Major customers include Cargill, Marubeni, Toepfer, among others,
who source agriculture commodities and food products from India.
Customers can log onto www.itcabd.com, and readily access information on
crop production and forecast, market updates, the latest shipment status and
the prevailing foreign exchange rates.
ITC's Agri business is progressively aligning its commodity portfolio with the
sourcing needs of the Companys Foods business to generate higher order
value from its agri procurement infrastructure. The business has commenced
procurement of chipstock potatoes, one of the critical raw materials in the
manufacture of the Companys 'Bingo!' brand of potato chips. The acquisition
of Technico, an Australian company with technology leadership in the
production of early generation seed potatoes, helped the business access a
ready pipeline of new high-yielding varieties of chipstock potato seeds.
E-CHOUPAL
The e-Choupal model has been specifically designed to tackle the challenges
posed by the unique features of Indian agriculture, characterized by
55
fragmented farms, weak infrastructure and the involvement of numerous
intermediaries, among others.
'e-Choupal' also unshackles the potential of Indian farmer who has been trapped
in a vicious cycle of low risk taking ability, low investment, low productivity, weak
market orientation, low value addition, low margin, low risk taking ability. This
made him and Indian agribusiness sector globally uncompetitive, despite rich &
abundant natural resources.
Further, a growth in rural incomes will also unleash the latent demand for
industrial goods so necessary for the continued growth of the Indian economy.
This will create another virtuous cycle propelling the economy into a higher
growth trajectory.
56
Figure 2.19 Sanchalaks
With a judicious blend of click & mortar capabilities, village internet kiosks
managed by farmers - called sanchalaks - themselves, enable the agricultural
community access ready information in their local language on the weather &
market prices, disseminate knowledge on scientific farm practices & risk
management, facilitate the sale of farm inputs (now with embedded
knowledge) and purchase farm produce from the farmers' doorsteps
(decision making is now information-based).
While the farmers benefit through enhanced farm productivity and higher
farm gate prices, ITC benefits from the lower net cost of procurement
(despite offering better prices to the farmer) having eliminated costs in the
supply chain that do not add value.
57
Launched in June 2000, 'e-Choupal', has already become the largest initiative
among all Internet-based interventions in rural India. 'e-Choupal' services
today reach out to over 4 million farmers growing a range of crops - soya
bean, coffee, wheat, rice, pulses, shrimp - in over 40,000 villages through
6500 kiosks across ten states (Madhya Pradesh, Haryana, Uttarakhand,
Kamataka, Andhra Pradesh, Uttar Pradesh, Rajasthan, Maharashtra, Kerala
and Tamil Nadu).
The problems encountered while setting up and managing these 'e-Choupals' are
primarily of infrastructural inadequacies, including power supply, telecom
connectivity and bandwidth, apart from the challenge of imparting skills to the
first time intemet users in remote and inaccessible areas of rural hdia.
As India's 'kissan' Company, ITC has taken care to involve farmers in the
designing and management of the entire 'e-Choupal' initiative. The active
participation of farmers in this rural initiative has created a sense of
ownership in the project among the farmers. They see the 'e-Choupal' as the
new age cooperative for all practical purposes.
This enthusiastic response from farmers has encouraged [TC to plan for the
extension of the 'e-Choupal' initiative to altogether 15 states across India
over the next few years. On the anvil are plans to channelize other services
related to micro-credit, health and education through the same 'e-Choupal'
infrastructure.
58
of farmers to ensure productivity gains. The services are customized to meet
local conditions, ensure timely availability of farm inputs including credit, and
provide a cluster of farmer schools for capturing indigenous knowledge. This
initiative, which has covered over 70,000 hectares, has a multiplier impact
and reaches out to over 1.6 million farmers.
Leaf Tobacco
ITC is the largest buyer, processor and exporter of leaf tobaccos in India
creating a global benchmark as the single largest integrated source of quality
tobaccos. Serving customers in 50 countries across more than 70
destinations, ITC co-creates and delivers value at every stage of the leaf
tobacco value chain.
ITC buys nearly 50 per cent of all cigarette tobacco types grown in India. It
has a team of experienced, highly skilled and professional buyers and
classifiers who source and segregate tobaccos to exacting customer
specifications. A large inventory base of quality tobaccos provides an edge in
serving customers through product customization, portfolio rationalization,
product bundling and value added services. This strategic direction insulates
customers from crop fluctuations, a key 'winning proposition' acknowledged
worldwide.
59
Figure 2.20 Green Leaf Processing plants
ITC's Green Leaf Processing plants at Chirala and Anaparti in Andhra Pradesh,
the tobacco hub of India, are benchmarked with the best in the world. State-
of-the-art technology, shared product knowledge base, sophisticated process
and quality controls enable ITC to process and deliver 120 million Kgs of high
quality tobaccos annually. These factories have integrated warehousing
complexes that match international standards in hygiene, infestation control
and monitoring.
ITC's quality emanates from its intimate involvement with the tobacco
farmers in India. Effective reach mechanisms help transfer 'best practices'
from the lab to the land. With an extensive presence in rural India, ITC's Leaf
Tobacco business maps critical Soil, Crop and Process control parameters
across cultivated areas. Intermediation through a dedicated pool of trained
managers in critical areas like soil testing, varietal improvements,
vermicomposting, nutrient management and post-harvest management
results in a superior agri output. These initiatives position ITC as an integral
part of India's agricultural landscape. ITC's collaboration with related
Government agencies has helped develop new varieties of tobaccos and
explore new areas for tobacco cultivation.
60
SPICES
In pursuit of new drivers of growth, ITC is aggressively exploring strategic
growth opportunities by innovatively blending and extending the Companys
proven competencies in the procurement and processing of agricultural
products, storage, supply chain and sales management. Closely dovetailing
with this strategic endeavor, ITC's Leaf Tobacco business has successfully
ventured into spices and has made inroads into various other streams of
business.
61
expand the product range to include value added products such as
oleoresins. Also, catering to a niche customer base spread worldwide, the
business has forayed into Organic and Pesticide Residue Free Spices.
Focus on special growing programmes for organic spices and IPM chillies have
helped the business access premium export markets like Japan, US and the
European Union. The business has entered into a unique tripartite agreement
with the Spices Board and the State Government of Nagaland for developing
the 'Naga Chilli' crop. The customers derive value from "quality assured" and
"identity preserved" spices at globally competitive prices. This foray will
further boost ITC's efforts to export India's agricultural produce. ITC's spices
business also provides supply chain support to the Companys
Foods business.
AGRI INPUTS
ITC's Agri Inputs business actively encourages the farming community to use
judicious combination of organic and chemical inputs towards integrated crop
management (ICM) for sustainable agriculture with focus on productivity and
quality. The business concentrates in:
Restoring soil fertility and improving input use efficiency through prudent use of
eco-friendly agri inputs.
Educating the farmers on use of eco-friendly inputs through demonstrations,
direct contact and mass campaigns.
Extending the benefits of Integrated Nutrient and Pest Management practices
to multitude of farmers.
Offering a platter of nutritive and quality agricultural produce free from harmful
chemicals.
62
From seed treatment, organic soil management (including plant protection
and nutrition through all stages of growth) to grain storage with non-toxic
residue-free pest management, ITC's Agri Inputs business focuses on the
entire crop cycle with a wide range of products under the following three
brands:
Addressing soil fertility and crop nutrition in line with the concept of
Integrated Nutrient Management that includes Organic manures and
bio products.
Addressing crop protection by adherence to the principles of Integrated
Pest Management. Presently consisting of Neem based pesticides, this
line would further expand to bio pesticides and natural metabolites.
Addressing the problem of storage pests with eco — friendly solution
consisting of bio- pesticides.
Till date nearly 150,000 hectares have been covered and farmers have
already experienced improved yield, quality and marketability apart from
savings in non-usage of harmful chemical inputs across different crops. The
initiative has provided earning opportunity to nearly 50,000 families of
landless labourers and women self-help groups through supply of raw
materials, classified as Non-Forest Timber Products to ITC.
63
The business is continuously roping in the best small-scale industries
/entrepreneurs to manufacture eco-friendly agri inputs under ITC's direct
supervision. This has helped in capacity building and creating employment
opportunities for skilled people in the rural sector.
INFORMATION TECHNOLOGY
INFOTECH
64
ITC Infotech provides IT solutions by addressing customer pain points through
innovative solutions, optimizing their IT landscape and maximizing retums
from IT investments. The company focuses on developing deep and
differentiated capabilities to enhance expertise in specific industry domains,
business solutions and technologies. This steadfast focus on delivering
enduring value to customers has formed the bedrock of the ITC Infotech's
growth strategy. The company has been successful in attaining differentiation
in niches and continues to gain competitive advantage and strengthen market
standing. ITC Infotech's leadership capabilities also accrue from business
critical engagements with leading organizations across five continents, and a
service delivery footprint spanning over 140 countries.
The company became the first Indian IT company to receive the prestigious
Social Accountability (SA) 80002008 certification. SA8000 is widely accepted
as the most viable and comprehensive international workplace management
system.
Industry Recognition
65
Professionals
Listed as a leading Player in CRM & CPG Space, and mentioned amongst
top service providers for Radio Frequency Identification (RFD) and SAP
- Forrester
66
of human knowledge. Approaches to research depend on epistemologies,
which vary considerably both within and between humanities and sciences.
TYPES OF DATA:
PRIMARY DATA: - Primary Data is data that has not been previously
published, i.e. the data is derived from a new or original research study
and collected at the source, e.g., in marketing, it is information that is
obtained directly from first-hand sources by means of surveys,
observation or experimentation
SECONDARY DATA: - Secondary data, is data collected by someone
other than the user. Common sources of secondary data for social
science include censuses, organizational records and data collected
through qualitative methodologies or qualitative research.
ANALYSIS
In this project secondary data is used. Therefore no sampling is used here.
CHAPTER - Ill
ANALYSIS & INTERPRETATION
67
ANAL YSIS OF MARKETING ACTIVITIES
1 .The Product Mix of ITC
68
promotion i.e., of the number of free cases that a particular distributors gets, off
them ascertain part is reserved for the retailers and customer if they buy a certain
level of biscuit quantity.
4. ITC Distribution
Buoyed 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 favor
of ITC thanks to the recall factor. The companys reliable distribution network
also ensures superior inventory turnover than its peers.
CONSUMERBUYING DECISION
The main driver in attracting the consumers is quality of the product itself
with nearly65% of the people surveyed citing it as the main criterion for
choosing the product, followed by past experience of the consumer with the
brand (17.6%). Price was third criterion with a percentage of 11.7% of the
people surveyed gave importance during buying.
80
40
20
An effective advertisement will attract more and more customer to buy, helps in
the brand and image formation, and informative in telling the USP of the product.
30
69
25
20
15
10
80
60
40
20
Yes
70
Figure 3.5 The Availability of the Product
The Availability of the Product itself determines the effectiveness and the
penetration of the distribution channel of that particular brand among the
people.
MARKET POSITIONING
Market capitalization of over US $ 33 billion.
Turnover of US $ 7 billion.
71
Ifs Agri-Business is one of India's largest exporters of agricultural
products.
One of the countrys biggest foreign exchange earners (US $ 3.2 billion).
72
20082009. Following are the major competitors ITC is competing with in
Ready to
Eat category:
BRANDS DESCRIPTION
Gits Gits produces the selected range of popular ready to
cook and instant foods that cover a range of ethnic Indian
cuisine-and where the recipes have "Global pallete
acceptance".
73
ITC
MTR
u KOHINOOR
u Others(Gits, Priya
Foods, etc..)
Confectioner
Confectionary market in India is about Rs.2500 crore. It is loosely divided into
seven categories:
. Hard boiled candies
2. Toffies
3. Eclairs
4. Chewing gum
5. Bubble gum
6. Mints
7. lozenges
ITC has currently in market with its two brands "Mint-o" and "Candyman"
ITC's Mint-O fresh secured a 17% share of Indian cough lozenges market
ahead of former leader Perfetti which only achieved 14.3% with chloromint.
The Indian giant marked the confectionary sector in 2002 and hasonly two
brands "mint-o fresh" and "Candyman" But in overall confectionary market
they are lagging behind having just 3% market share as compared to market
leader Perfetti with more than37% market and providing larger number of
brands.
74
ITC
• Perfetti Van Melle
• Cadbury
• Nestle
Staples
ITC entered the staples market in 2002 with wheat flour under the
Aashirvaad brand. In 2003, ITC extended the Aashirvaad brand to edible salt.
By early 2006, ITC had a 40% market share in the Rs.6 billion packaged flour
business. Its closest competitor HLL's Annapuma brand was trailing behind
with a market share of 18%. The market was growing at 12%. Under its
Aashirvad brand ITC FOODS also launched salt, mixers, ready to cook pastes.
In the Rs.4 billion organized salt market (as of 2006), Tata Salt was the
market leader with a 28% market share. ITC had only a 5% share of the
market. Other players in this
business are HLL (Knorr
Annapuma), Nirma
(Shudh), Marico Industries
(Saffola), etc.
HLL
Pillsbury
Biscuits
Indian biscuit market is estimated to be around 5000 crore. Biscuit industry in
India in the organized sector produces around 60% of the total production,
the balance 40% being contributed by the unorganized bakeries. ITC with its
premium product, SUNFEAST, is acquiring a big share of market. Within few
years, they are able to get 12% share of the market.
BRITANIA ITC PARLE PRIYAGOLD
Ltd.(Sunfeast)
Tiger Marie Parle-g Butter Bite
Nutrichoice Dream cream Krack-Jack Classic Cream
Junior Milky Magic Fit Monaco Butter Lite
Good Day, kit Kreams
Big Boss
76
u ITC Ltd. u
Priyagold u
Britania u Parle
"Others(Bonn, Anmol, etc,.)
Snacks
Snacks industry overview
Snacks industry in India is worth Rs.1800 Crores of and growing at 10% is one
of the largest markets in the world, out of which potato chips holds the major
market share of around 85%.
PRODUCT PRICE PRODUCTPRICE PRODUCT PRICE
(ITC Ltd.) (FRITO LAY) (HALDIRAM)
Bingo Lays Namkeen
Rs.5 Rs.5 Rs.5
Rs.10 Rs.10 Rs.10
Rs.20 Rs.20 Rs.20
Lehar Namkeen
Rs.5
Rs.20
Kurkure
Rs.5
Rs.10
Rs.20
Table 3.4 Share of ITC in Snacks Industry Of India
77
ITC Ltd.
u Frito Lay u Haldiram
u 0th ers
Figure 3.10
Market Share - Snacks
STRATEGIES OF ITC
Corporate Strategies
Sustain multiple drivers of growth.
Pursue world class competitiveness in all businesses.
Best-in-class.
Organization & governance.
Blend core competencies & leverage ITC umbrella strengths.
Marketing Strategies
1. Pricing Strategy:
Market follower.
2. Promotional Strategy:
78
PRODUCT MIX OF ITC
79
Figure 3.11 Product Mix of ITC Ltd.
LIMITATIONS
Skill set shortage
Maintaining high quality standards
Lack of talent pool
Unable to do primary research
Confidentiality
80
CONCLUSION
ITC promoting their brands through advertisement campaign as well as door
to door promotion.
The demand for some of their product is low, because people don't know
about their brands very well.
ITC knows their strength and weakness in the personal care market, so they
are applying new concept to overcome their weaknesses.
ITC now offering more margins, exiting offers and long credit period to
retailers and wholesalers.
81
BIBLIOGRAPHY
In this project report, while finalizing and for analyzing quality problem in
details the following books magazines/ journals and websites have been
referred. All the material detailed below provides effective help and a guiding
layout while designing this text report.
www www.itcportal.com
.wikipedia.org
www.moneycontrol.com
www.economictimes.indiatimes.com
www.google.co
www.bseindia.com
www.perfettivanmelle.in
www.cadburyi ndia.com
www.nestle.in
www.rediff.com
www.thehindubusinessline.com
www.kitchensofindia.com
www.aashirvaad.com
www.bingeonbingo.com
www.mycandymanclub.com
www.sunfeastharabanao.co
Economic times
82