NAME: MOHAMMED FAHIM

COURSE: BBA

REGISTRATION NO: 202342005010054

ROLL NO: 23405020005

SUBJECT: PROJECT AND VIVA

TOPIC: HOW ITC HAS PENETRATED THE FMGC

MARKET IN INDIA WITH ITS MARKETING
STRATEGIES

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ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to my subject teacher
Professor Rajkumar Dasgupta for his exemplary guidance, monitoring and constant
encouragement throughout the course of the project. The blessing, help and guidance given by
his time to time shall carry me a long way in the journey of life on which I am about to embark.

- Rajkumar Dasgupta

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CONTENTS

Introduction……………………………………………………………………………………… Page 4

History………………………………………………………………………………………………. Page 5

Core Values…………………………………………………………………………………………Page 6

Corporate Strategies…………………………………………………………………………Page 7

ITC’S Profile……………………………………………………………………………………… Page 8

Multiple Drivers of Growth……………………………………………………………. Page 9

Nations First “SAB SAATH BADHEIN” ………………………………………. Page 10

Corporate Governance ………………………………………………………………… Page 11

Different divisions in FMGC Sector……………………………………………….Page 12 - 14

ITC: Rise of a challenger FMGC Brand………………………………………… Page 15 - 16

When did ITC entered FMGC? ………………………………………………………Page 17 - 19

Achievment / Recognition…………………………………………………………….. Page 20

Marketing Strategies………………………………………………………………………Page 21 - 23

Awards received over the years……………………………………………………. Page 24

Conclusion………………………………………………………………………………………. Page 25

Customer Survey…………………………………………………………………………… Page 26-29

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INTRODUCTION
ITC Limited is an Indian company headquartered in Kolkata, West Bengal. ITC has a
diversified presence across industries such as cigarettes, FMCG, hotels, packaging,
paperboards and specialty papers and agribusiness. The company has a total of 13 businesses
in 5 segments. Also, there are 90 countries where ITC exports its products. Its products are
available in 6 million retail outlets.
Established in 1910 as the Imperial Tobacco Company of India Limited, the company was
renamed as the India Tobacco Company Limited in 1970 and later to I.T.C. Limited in 1974.
The company now stands renamed to ITC Limited, where "ITC" today is no longer an
acronym or an initialised form. The company completed 100 years in 2010 and as of 2019–
20, had an annual turnover of US$10.74 billion and a market capitalisation of US$35 billion.
It employs over 36,500 people at more than 60 locations across India and is part of the Forbes
2000 list. Within a relatively short span of time, ITC has built 25 mother brands, many of
which are market leaders in their segments. This vibrant portfolio of brands represents an
annual consumer spends of over H19,700 crore today. ITC’s world-class Indian brands
anchor competitive and inclusive value chains that create, capture and retain larger value
within the country.

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HISTORY
"ITC Limited" was originally named "Imperial tobacco company of India Limited", succeeding
W.D. & H.O. Wills on 24 August 1910 as a British-owned company registered in Calcutta.
Since the company was largely based on agricultural resource, it ventured into partnerships in
1911 with farmers from the southern part of India to source leaf tobacco. Under the company's
umbrella, the "Indian Leaf Tobacco Development Company Limited" was formed in Guntur
district of Andhra Pradesh in 1912. The first cigarette factory of the company was set up in
1913 at Bangalore.
In 1928, construction began for the company's headquarters, the 'Virginia House' at Calcutta.
ITC acquired Carreras Tobacco Company's factory at Kidderpore in 1935 to further
strengthen its presence. ITC helped to set up indigenous cigarette tissue-paper-making plant
in 1946 to significantly reduce the import costs and a factory for printing and packaging was
set up at Madras in 1949. The company acquired the manufacturing business of Tobacco
Manufacturers (India)
Limited and the complementary lithographic printing business of Printers (India) Limited in
1953.

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CORE VALUES
ITC's Core Values are aimed at developing a customer-focused, high-performance organisation
which creates value for all its stakeholders.

(A) TRUSTEESHIP
As professional managers, they are conscious that ITC has been given to them in "trust" by all
their stakeholders. They will actualise stakeholder value and interest on a long-term sustainable
basis.

(B) CUSTOMER FOCUS

They are always customer focused and will deliver what the customer needs in terms of value,
quality and satisfaction.

(C) RESPECT FOR PEOPLE

They are result oriented, setting high performance standards for ourselves as individuals and
teams. They will simultaneously respect and value people and uphold humanness and human
dignity. ITC acknowledge that every individual brings different perspectives and capabilities
to the team and that a strong team is founded on a variety of perspectives.

(D) EXCELLENCE
ITC do what is right, do it well and win. They will strive for excellence in whatever they do.

(E) INNOVATION
ITC will constantly pursue newer and better processes, products, services and management
practices.

(F) NATION ORIENTATION

ITC are aware of their responsibility to generate economic value for the Nation. In pursuit of
their goals, they will make no compromise in complying with applicable laws and regulations
at all levels.

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CORPORATE STRATEGIES

ITC is a board-managed professional company, committed to creating enduring value for the
nation and the shareholder. It has a rich organisational 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.

ITC'S CORPORATE STRATEGIES ARE:

• Create multiple drivers of growth by developing a portfolio of world class businesses
that best matches organisational capability with opportunities in domestic and export
markets.
Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology
• the health of each business comprehensively across the criteria of Market Standing,
Profitability and Internal Vitality.
• Ensure that each of its businesses is world class and internationally competitive.
• Enhance the competitive power of the portfolio through synergies derived by blending
the diverse skills and capabilities residing in ITC's various businesses.
• Create distributed leadership within the organisation by nurturing talented and focused
top management teams for each of the businesses.
• Continuously strengthen and refine Corporate Governance processes and systems to
catalyse the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.

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ITC’S Profile
ITC is one of India's foremost private sector companies and a diversified conglomerate with
businesses spanning Fast Moving Consumer Goods, Hotels, Paperboards and Packaging,
Agri Business and Information Technology. The Company is acknowledged as one of
India's most valuable business corporations with a Gross sales value of ₹ 76,097.31 crores
and Net Profit of ₹ 15,136.05 crores (as on 31.03.2020). ITC was ranked as India's most
admired company, according to a survey conducted by Fortune India, in association with Hay
Group.

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Multiple Drivers of Growth

ITC is the country's leading FMCG marketer, the clear market leader in the Indian Paperboard
and Packaging industry, a globally acknowledged pioneer in farmer empowerment through its
widereaching Agri Business, a pre-eminent hotel chain in India that is a trailblazer in
'Responsible Luxury'. ITC's wholly-owned subsidiary, ITC Infotech, is a specialized global
digital solutions provider.
Over the last decade, ITC's new Consumer Goods Businesses have established a vibrant
portfolio of 25 world- class Indian brands that create and retain value in India. ITC's world
class FMCG brands including Aashirvaad, Sunfeast, Yippee! Bingo! B Natural, ITC Master
Chef, Fabelle, Sunbean, Fiama, Engage, Vivel, Savlon, Classmate, Paperkraft, Mangaldeep,
Aim and others have garnered encouraging consumer franchise within a short span of time. While
several of these brands are market leaders in their segments, others are making appreciable progress

Leveraging Institutional Strengths

The competitiveness of ITC's diverse businesses rests on the strong foundations of

institutional strengths derived from its deep consumer insights, cutting-edge Research &
Development, differentiated product development capacity, brand-building capability,
world-class manufacturing infrastructure, extensive rural linkages, efficient trade marketing
and distribution network and dedicated human resources. ITC's ability to leverage internal
synergies residing across its diverse businesses lends a unique source of competitive
advantage to its products and services.

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Nation First: ‘Sab Saath Badhein’

ITC's 'Nation First: Sab Saath Badhein' philosophy underlines its core belief in building a
globally competitive and profitable Indian enterprise that makes an exemplary contribution to
creating larger societal value. As a company deeply rooted in Indian soil, ITC is inspired by
the opportunity to serve larger national priorities. A global exemplar in Sustainability, ITC is
the only enterprise in the world of comparable dimensions to be carbon-positive, water-positive
and solid waste recycling positive for over a decade now. ITC has created over 6 million
sustainable livelihoods. Nearly 41% of the total energy consumed in ITC is from renewable
sources. ITC's premium luxury hotels have the unique distinction of being LEED Platinum
certified.
ITC's Well-being Out of Waste programme (WOW) that comprehensively addresses the
problem of solid waste management, of which plastic waste is a significant component,
provides an end to end sustainable and scalable solution that has reached out to over 1.5 crores
citizens in the country Together with farmers and local communities, ITC has implemented largescale
interventions in climate-smart and sustainable agriculture that make a meaningful contribution to
the Hon'ble Prime Minister's vision of doubling farmer incomes. Towards this, ITC has
launched an integrated programme titled 'Baareh Mahine Hariyali' (maximising farm
utilisation over 12 months of the year) to give a new dimension to the complex task of
multiplying farmer incomes. ITC is collaborating with NITI Aayog to progressively build
capacity of 2 million farmers in 27 Aspirational Districts to help enhance rural incomes.

ITC is investing in India's future by building world-class consumer goods factories and iconic
hospitality assets that will contribute to the country's competitive capacity. These investment
projects underpin the Company's support to the Government's "Make in India" vision.

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CORPORATE GOVERNANCE
Over the years, ITC has evolved from a single product company to a multi-business
corporation. Its diverse businesses include fast moving consumer goods, hotels, paperboards,
paper & packaging and agri business.
The Company's investments in its different businesses are structured in the nature of in-house
divisions, subsidiaries, joint ventures, associate companies and trade investments.
The task of governing a corporation of ITC's size and diversity was rendered more complex in
post liberalisation India, which began experiencing the intense impact of globalisation. In order
to address its own unique organisational context and prepare itself for the global Indian market,
ITC, as early as in 1999, fashioned a unique corporate governance model that would enable it
to 'focus' on its multiple businesses, while maximising shareholder value.
This governance policy has not only stood the test of time, but also supported ITC's rapid
growth in the last two decades since its formulation. In the intervening years, ITC has not only
widened its diversity with the launch of several new businesses in its chosen strategic arena,
but has also responded to the growth challenge by creating new internal structures like shared
services and business verticals, designing broad-band roles like Line CMC Members, Chief
Operating Officers of Business / Vertical, and enabling operating decision-making powers at
empowered levels.

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DIFFERENT DIVISIONS IN THE FMGC SECTOR
Some of ITC's brands that have gained significant market standing among consumers are
Aashirvaad, Sunfeast, Bingo! YiPPee! Candyman, mint-o and Kitchens of India in the Branded
Packaged Foods space; Essenza Di Wills, Fiama, Vivel and Superia in the Personal Care
Products segment; Classmate and Paperkraft in Education & Stationery products; WLS in the
Lifestyle Apparel business; Mangaldeep in Agarbattis as well as Aim in Matches.
(A) FOODS
ITC's Branded Packaged Foods business is one of the fastest growing foods businesses in
India, driven by the market standing and consumer franchise of its popular brands -
Aashirvaad, Bingo! Sunfeast, Fabelle, Sunbean, Yippee! Kitchens of India, B Natural, ITC
Master Chef, Farmland, mint-o, Candyman and GumOn. The Foods business is today
represented in multiple categories in the market - Staples, Spices, Biscuits, Confectionery & Gums,
Snacks, Noodles & Pasta, Beverages, Dairy, Ready to Eat Meals,chocolate,coffe and frozen foods.

Itc uncompromising commitment to the health and safety of its consumers ensures
adherence to the highest levels of quality, safety and hygiene standards in
manufacturing processes and in the supply chain. ITC's Foods brands delight
millions of households with a wide range of differentiated, value-added products
developed by leveraging ITC's in-house R&D capabilities, relevant consumer
insights, a deep understanding of the Indian palate gained from its hotels business,
its agri-sourcing & packaging strengths, exciting, innovative communication and an
unmatched distribution network.
ITC's Foods business also exports its products to the key geographies of North America, Africa,
Middle East and Australia.

(B) PERSONAL CARE

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. Anchored on extensive consumer
research and product development, ITC's personal care portfolio brings world-class products
with clearly differentiated benefits to quality-seeking consumers.
ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama', 'Vivel', 'Engage', 'Savlon',
'Charmis', 'Shower to Shower', 'Nimyle', 'Nimwash' and 'Superia' brands has received
encouraging consumer response and is being progressively extended nationally.
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 recognised safe ingredients, subjected to the highest standards of safety and
performance.

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 (C) EDUCATION AND STATIONERY

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.

Classmate and Paperkraft have become a natural extension of the

consumer.
ITC is the manufacturer of India's first Ozone treated environment friendly Elemental Chlorine
Free (ECF) pulp, paper and paperboard. It blends its knowledge of image processing, printing
and conversion garnered from Packaging & Printing Business with its brand building and trade
marketing & distribution strengths resident in its FMCG business to offer superior value
products to consumers.
Classmate over years has transformed itself from being a notebook brand to a provider of the
complete stationery portfolio with the product range including high quality writing instruments
(ball, gel & roller pens & mechanical pencils), mathematical instruments (geometry boxes),
scholastic products (erasers, sharpeners and rulers) and art stationery products (wax crayons,
plastic crayons, sketch pens and oil pastels)

(D) SAFETY MATCHES

As part of its strategic initiative to create multiple drivers of growth

in the FMCG sector, ITC commenced marketing safety matches
sourced from the small-scale sector. The Safety Matches business
leverages the core strengths of ITC in marketing and distribution,
brand building, supply chain management and paperboard &
packaging to offer Indian consumers high quality safety matches.
ITC's range of Safety Matches includes popular brands like Aim, Ship and Homelites. With
differentiated product features, formats and innovative value additions, these brands effectively
address the needs of different consumer segments. The wax matchstick offering provides better
resistance in windy conditions, burns longer and comes in a compact size making it an ideal
companion for outdoor usage while Homelites' stronger, longer and Karborised match sticks
make them safer for everyone to use inside home.

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 (E) AGARBATTIS AND DHOOP

As part of ITC's business strategy of creating multiple drivers

of growth in the FMCG sector, the Company commenced
marketing Agarbattis (Incense Sticks) sourced from
smallscale and cottage units in 2003. This Business leverages
the core strengths of ITC in nation-wide distribution and
marketing, brand building, supply chain management,
manufacture of high-quality paperboards and the creation of
innovative packaging solutions to offer Indian consumers
high quality Agarbattis & Dhoop. These core strengths aided ITC in becoming the No. 1 Dhoop
player in the country.
ITC has signed a MoU with ORMAS (Orissa Rural Development & Marketing Society), an
autonomous body under the Pachayat Raj in Odisha. This initiative provides technical
training to rural women & provides employment opportunities to over 4,000 rural women.

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ITC: The rise of a challenger FMCG Brand
A multi-business conglomerate, ITC has climbed its way to the top posing a challenge to
established FMCG players. It has been a trailblazer which
has achieved significant mile-stones in its long journey.
Today it prides itself on creating 5 million sustainable
livelihoods, having created brands that are posing a serious
challenge to world class brands in every category. ITC, the
Kolkata based conglomerate is a force to reckon with
especially in the FMCG sector. Its new FMCG businesses
have crossed Rs 7,000 crore. This growth has been rated to
be the fastest among the consumer goods companies
operating in India.
When ITC overtook the FMCG giant HUL in the branded food and beverage category in the
last fiscal, it was an eye-opener for analysts, marketers and consumers.
ITC is among the 50 fastest growing consumer products companies globally. ITC improved its
ranking to 134 from 150 last year in the Top 250 Consumer Products Companies. The company
has been able to make an impact globally as reflected in the list. Today ITC’s market share is
as much as that of Reliance. It’s also as valuable as Reliance. They are the biggest market share
holders in tobacco. Hence, they could easily leverage on their brand strength to make an impact
globally.
ITC's Branded Packaged Foods business comprises seven popular brands -Aashirvaad,
Sunfeast, Bingo, Kitchens of India, mint-o, Candyman and Yippee. The focus is health and
building trust among consumers.
ITC blended multiple internal competencies to take over the foods market by storm. Its
distribution reach is phenomenal and the foods business boasts of a solid market position.
ITC Foods has drawn on its internal resources like the agri-sourcing strength of e-choupals,
its knowledge of Indian cuisine, capabilities in product development, sales and distribution
to scale up volumes. Superior consumer insights and smart sourcing have helped ITC
maintain the edge.
The personal care industry in India is on a growth curve. It is driven by rising consumer
incomes and the rising awareness about glooming and personal care among them. ITC has
risen to this opportunity too, resulting in an expanding Personal Care products range that has
made its presence felt in the market. In July 2005, ITC embarked on the Personal Care
business. "Essenza Di Wills”, "Fiama Di Wills”, “Vivel", "Engage" and "Superia" are some of
the brands in this category which have received a positive response in the market. The
personal care business continues to grow especially in the Deodorants category where the
"Engage” range continues to receive good response from consumers.
ITC has extended its distribution reach to the tier 2 and tier 3 cities, with these cities also
driving the growth of the company. These markets contribute to 30 per cent of the turnover of
the FMCG industry. ITC has been quick to adapt to these markets providing products at
affordable pricing. The contribution of these markets has been increasing for ITC and account
for l/3rd of the business in the FMCG category for ITC.
ITC entered the education and stationery business in the premium segment in 2002 and in the
popular segment in 2003. Classmate became the largest Notebook brand in the country in
2007. The products were a result of ITC's insights into the Indian consumer. It provided great
value in terms of product and pricing for the Indian consumer. In March 2014, ITC’s

15
stationary business had earned a revenue of Rs 1000 crore in consumer spends. ITC has
managed to provide unique and differentiated products in the Paperkraft and Classmate
ranges. In January this year, ITC's

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 WHEN DID ITC ENTERED FMGC?
ITC is one of India's foremost private sector companies with a market capitalisation of nearly
US $ 14 billion and a turnover of over $ 5 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,
among India's Most Respected Companies by Business World 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.
Its beginnings were humble. A leased office on
Radha Bazar Lane, Kolkata, was the centre of the
Company's existence. The Company celebrated its
16th birthday on August 24, 1926, Chowringhee,
Kolkata. This decision of the Company was historic in more ways than one. The Company's
headquarter building, 'Virginia House', which came up on that plot of land two years later,
would go on to become one of Kolkata's most venerated landmarks. The Company's ownership
progressively Indianized, and the name of the Company was changed to I.T.C. Limited in 1974.
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 transformation that would usher in momentous changes in the life of
the Company.
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business. It is today India's most sophisticated packaging house.
In 1975 the Company launched its hotels business with the acquisition of a hotel in Chennai
which was rechristened 'ITC–Welcome group Hotel Chola'. The objective of ITC's entry into
the 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. In 1979, ITC entered the Paperboards business by promoting
ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India.
Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and
became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002,
this division merged with the Company's Tribeni Tissues Division to form the Paperboards &
Specialty Papers Division. ITC's paperboards' technology, productivity, quality and
manufacturing processes are comparable to the best in the world. It has also made an immense
contribution to the development of Sarapaka, an economically backward area in the state of
Andhra Pradesh. It is directly involved in education, environmental protection and community
development.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo–Nepal and British joint venture.
Since inception, its shares have been held by ITC, British American Tobacco and various
independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of
ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal).

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In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company
and a major supplier of tissue paper to the cigarette industry. The merged entity was named
the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was
merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty
Papers Division in November 2002.
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 e–Choupal initiative began in 2000 with soya farmers
in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first
rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural
retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh,
Maharashtra and Uttar Pradesh.
In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the
launch of Expressions range of greeting cards. A line of premium range of notebooks under
brand “Paperkraft” was launched in 2002. To augment its offering and to reach a wider student
population, the popular range of notebooks was launched under brand “Classmate” 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 Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the
“Classmate” brand. In 2008, ITC repositioned the business as the Education and Stationery
Products Business and launched India's first environment friendly premium business paper
under the “Paperkraft” In 2007, the Company introduced 'Miss Players'– a fashion brand in
the popular segment for the young woman.
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 – Manufacturing,
BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods &
Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment.
ITC's foray into the Foods business is an outstanding example of successfully blending multiple
internal competencies to create a new driver of business growth. It began in August 2001 with
the introduction of 'Kitchens of India' ready–to–eat Indian gourmet dishes. In 2002, ITC entered
the confectionery and staples segments with the launch of the brands mint–o and Candyman
confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast
as the Company entered the biscuits segment. ITCs entered the fast-growing branded snacks
category with Bingo! in 2007. In just seven years, the Foods business has grown to a significant
size with over 200 differentiated products under six distinctive brands, with an enviable
distribution reach, a rapidly growing market share and a solid market standing.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in the Safety Matches initiative. ITC now markets popular
safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation
of its partnership with the cottage sector.

18
19
Achievements / Recognition

• In 2014 –ITC has been voted among the top two “Buzziest Brands” in the “Corporate”
category by “afaqs”, one of the world’s largest marketing and advertising portals.
• 2013 – ITC Infotech becomes the 1st PTC Authorized Training Partner in India ITC Hotels ties
up with RP Group Hotels & Resorts to manage 5 hotels in India and Dubai
• In 2012– Mr Y C Deveshwar, Chairman, ITC Limited has been ranked the 7th Best Performing
CEO in the World in the global scorecard on '100 Best Performing CEOs in the World' published
by the Harvard Business Review (HBR) in its January–February 2013 edition.
• ITC Bags Asian CSR Award–2012
• 2011– ITC Hotels adjudged 'People's Choice – Most Trusted Hotel Brand'
• 2011 –ITC Infotech launches first indigenously developed sustainability management and
reporting tool
• '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.
• Occupational Health and Safety Award 2007 for Excellence in Safety Management to the
Bengaluru, Saharanpur and Kolkata factories from the Royal Society for Prevention of
Accidents (ROSPA), U.K.
• 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.

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 MARKETING STRATEGIES
Marketing Mix of ITC analyses the brand/company which covers 4Ps (Product, Price, Place,
Promotion) and explains the ITC marketing strategy. There are several marketing strategies
like product/service innovation, marketing investment, customer experience etc. which have
helped the brand grow.
Marketing strategy helps companies achieve business goals & objectives, and marketing mix
(4Ps) is the widely used framework to define the strategies.
(A) ITC Product Strategy:
ITC is a leading FMCG company in India. ITC has a
dynamic portfolio in its marketing mix with
businesses spanning FMCG,
Agribusiness, Hotels, Information technology,
paperboards and packaging. The product lines
have great product length and depth.
In FMCG goods ITC is India’s leading
marketer. ITC comprises of packaged food, Lifestyle
retailing, Education and stationery products, safety matches and incense sticks, personal
care products. ITC’s food brands include Sunfeast with sub-brands Dark fantasy, Yumfills,
Bounce; Bingo, Candyman, Yippee, GumOn, Mint-O, Kitchen of India, Aashirvaad, Fabelle,
Sunfresh, B natural and Sunbeam. Within each of these brands there are different variants of
the product. For example, ITC Sunfeast offers biscuits, cookies and cakes; ITC Yippee offers
instant noodles and pasta; candyman offers toffees, candies and mint.
ITC has a range of popular brands like Navy cut, Insignia, India Kings, Silk cut, gold flake,
Classic, Lucky Strike, Players, capstan, Bristol, Duke & Royal, which has won many awards.
ITC has developed an array of products in the personal care segment. Based on extensive
consumer research and product development ITC’s brands like Fiama, Vivel, Essenza Di Wills,
Engage, Superia have received a very positive response. Shower to Shower and Savlon are
already very popular.
Wills Lifestyle and John Players are ITC’s lifestyle retailing businesses. They provide a
tempting collection of apparels and a delightful shopping experience to their consumers.
Classmate and Paperkraft offer a variety of products in the education and stationery
business. Classmate is the largest notebook brand in the country. Carton board packaging,
flexible packaging are the different product lines of ITC’s packaging business.
ITC has a premium range of luxury hotels in over 70 destinations. ITC hotels are the greenest luxury
hotels in the world because of its sustainable and responsible policies.
(B) ITC Price/Pricing Strategy:
ITC has different price points as it has a diversified product portfolio. ITC have products in all price
brackets but more and more new products are on the premium side as they provide higher margins.
Pricing of the product depends on several things like pricing objective, the market one is operating in,
the purchasing power of the consumers, the market condition, product’s market position etc. They
maintained their prices as per the market leader but offered more quantity and more margin to the
retailers which gave them a competitive edge.

ITC follows different marketing mix pricing strategy for different products. Their economy
brands follow economy pricing. Marketing and manufacturing cost is kept at a minimum. ITC

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had to hike the price its premium products in the industry due to hike in excise duty.
Classmate is priced over 5% over its competitors.
(C) ITC Place & Distribution Strategy:
ITC has an unmatched distribution network. Its products
are available in 4.3 million retail stores in India. A strong
distribution shows its marketing mix place strategy. ITC is
constantly trying to reduce the lead time and to make
the products reach to the retailers as quickly as possible.
Being an environment friendly organization, ITC is carbon
positive, solid waste positive and water positive. Out of
the total energy it consumes over 47% comes from
renewable sources. E-choupals ensure timely supply of
high-quality raw materials. ITC has well integrated manufacturing and Logistics facilities with
a wide and deep distribution network. All manufacturing units owned by ITC are hazard
Analysis and critical control point certified. ITC has distinctive agri-sourcing capabilities with
farm linkages in over 17 states which provide it with high quality wheat, soya, potato, coffee
etc. It has an efficient CRM program for commodity customers. ITC's Paperboards and
Specialty Papers Division has four manufacturing units, eight regional sales offices and over
60 dealers in India. ITC has over 100 hotels are present in 70 destinations. ITC’s food
products are exported to North America, Middle east, Africa and Australia.
It is also one of the largest exporters of Agri-products and coated boards in India.
(D) ITC Promotion & Advertising Strategy:
ITC designs its promotion strategy keeping in mind its brand proposition and its target
audience. It promotes its product through Print, television and radio as a part of its
marketing mix. ITC’s different brands have different brand ambassadors. For example,
classmate has been endorsed by Yuvraj Singh and Soha Ali Khan; Saina Nehwal has endorsed
Salvon; Shahrukh Khan has been endorsing the entire range of snacks under the umbrella
brand of Sunfeast. ITC roped in Ranbir Kapoor for John players.
As part of ITC’s centenary initiative, Classmate launched the largest student contact
program- Ideas for India challenge. It provided a platform for Indian youth to brainstorm and
address the issues and challenges which our nation faces and help in developing the nation.
ITC also launches a lot of digital campaigns to ensure maximum participation. The Fiama De
Wills Men campaign is one such example. Fiama DE Wills has had an association with the
talented designer, Masaba Gupta for Wills Lifestyle Fashion Week.

ITC also engage in cross marketing promotions. YiPPee! Launched a campaign with
Paytm offering recharge coupons equivalent to the price of YiPPee noodles. The
company launched an advertisement to back the campaign. Hence this concludes the
ITC marketing mix.

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AWARDS RECEIVED OVER THE YEARS

• 2012- ITC CONFERRED WORLD BUSINESS AND DEVELOPMENT

AWARD 2012
• 2007– SAM/SPG Sustainability Leadership Award conferred at the
International Sustainability Leadership Symposium, Zurich.
• 2006 Business Person of the Year from UK Trade & Investment, the UK
Government organisation that supports overseas businesses in that country.
• 2006 - Inducted into the `Hall of Pride' by the 93rd Indian Science Congress.
• 2005 – Honoured with the Teacher's Lifetime Achievement Award.
• 2001 – Manager Entrepreneur of the Year from Ernst & Young Retail Visionary
of the Year from Images, India's only fashion and retail trade magazine.
• 1998 – Honorary Fellowship from the All-India Management Association
• 1996 – Distinguished Alumni Award from IIT, Delhi.
• 1994 – Marketing Man of the Year from A&M, the leading marketing
magazine.
• 1986 – Meridien Hotelier of the Year.

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 CONCLUSION

The outlook for FMCG sector seems more promising in these uncertain times as most of
the products are considered essential; demand for which is stable unlike that of
discretionary items. Moreover, the FMCG sector tends to fetch higher valuations. For
ITC, in particular, the scope of growth for the FMCG business appears huge. JM
Financial points out, “ITC in FY30 could clock an FMCG Ebitda higher than the
combined FY20 Ebitda of Nestle India Ltd, Britannia Industries Ltd and Tata Consumer
Products Ltd. If that be the case, using current market capitalization of these companies
as benchmark for ITC FMCG’s FY30-based valuation, FMCG alone would justify half of
ITC’s present market value." In other words, this implies that cigarettes business (85% of
profits) is currently valued at just 4-5 times price-to-earnings ratio, as per the brokerage.

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CUSTOMER SURVEY

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Write a short note on what you feel about ITC brand

6 responses

1.ITC product is good in quality but the company should look after the price point
as for indian consumer
2.Most probably it's a good company
3.Trustable company.overview is good
4.Good
5.Mainly i use itc hotels for staying.because its a luxury 5 star hotel in town.but
they should look after price point
6.Overall good

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