Presentation on

By :

Abhishek Agarwalla (12121) Chirag A Thakur (12133) Kumar Piyush (12145) Rohin Thomas (12157) Sowmya K (12169) Ashish Jain (12181)

ITC
Founded on August 24, 1910 as Imperial Tobacco Company of India Limited It was rechristened to ITC Ltd in 2001 Rapidly gaining market share in Food & Confectionery Market Market Capitalization $33 billion & turnover of $7 billion Core Competencies
Unmatched Distribution reach Superior Brand building Effective supply chain management

ITC

FMCG

Hotels

Paperboards & Specialty Papers

Packaging

Agri-Business

Information Technology

ITC Sunfeast
ITC forayed into Biscuit segment in July, 2003 Glucose, Marie and Cream Biscuits were launched Sunny is the mascot

Brand essence-"Spread the Smile"

Orange Marie and Butterscotch Cream biscuits Sunfeast Pasta Treat-2005 Sunfeast Yippee noodles-2010

Why into Biscuits market?

12% growth in 2002(5% earlier)

Parle and Britannia-76% market share Consumers wanted new tastes and there no innovative products

BCG Matrix - ITC

Hotels Paper & Packaging Agri- Business FMCG

Cigarettes

ITC Infotech

 Sunfeast Milky Magic Sunfeast Marie Light Sunfeast Dark Fantasy Sunfeast Dark Fantasy Choco Fills

Sunfeast Glucose
Sunfeast Dream Cream Sunfeast Snacky

Sunfeast Sweet n Salt

Sunfeast Nice Sunfeast Special Sunfeast Pasta Treat Sunfeast Yippee!

PRICE
Two pronged strategy in pricing Prices of few Sunfeast products are:
Product Weight Price

Dark Fantasy (chocolate and vanilla) Bourbon Dream Cream

96gms 75gms 150gms

Rs.22 Rs.12 Rs.24 Rs.30 Rs.10 Rs.15

Dark Fantasy Choco Fills Yippee noodles Magic masala Pasta Treat Cheese

75gms 80gms 70gms

PLACE
Distribution

ITC has strong distribution network

FIFO method is used to reduce wastage due to expiry Constant movement of goods from low sales areas to high sales areas Expired goods are collected four times a year Benefits are provided to retailers depending on sales volume and location Distribution is fast, effective, flexible

SALES & DISTRIBUTION NETWORK

PROMOTION
Promoted through television campaigns

that were distinct, highlighted product attributes,

quality and newness Well differentiated advertisements targeted at

children and mothers

Tie up with Bey Blades Sunfeast school programme

Celebrities like Sachin Tendulkar, Shahrukh Khan,

Surya are the brand ambassadors

SEGMENTATON
Demographic segmentation:

Age and Life cycle stage: Sunfeast Glucose Biscuits : children between the age group 414 years and their mothers Sunfeast Orange Cream, Butterscotch Cream & Bourbon Cream : Children

Income: Economy: Glucose, Milky, Special, Special Cream Medium : Golden Bakery, Treat Premium : Dark Fantasy

SEGMENTATION
Psychographic Segmentation: Life Style:
Sunfeast Marie Light is directed as Light & Crispy biscuit targeting
housewives. Sunfeast Orange Marie also has a differentiated offering targeting housewives. Sunfeast Snacky is directed as light and crispy biscuit targeted for family members specially for having snacks

Behavioural Segment: Benefit:

Sunfeast Benne Vita Flaxseed Biscuits: People who are very health conscious.

TARGETING

- Glucose biscuit

Children between 4-14 years & mothers

- Cream biscuit
- Dark fantasy - Marie light

Children and youngsters

Teen and youth Housewives and adults

POSITIONING

Marie Light: Tea-time biscuit Sunfeast Milky Magic: Nutritious biscuit for children Sunfeast Benne Vita Flaxseed: Healthy biscuit

Sunfeast Nice : Nice moments

Dark Fantasy: Premium biscuit Sunfeast Snacky: Family biscuit Golden Bakery: Rich biscuit

STRENGTHS
Brand name.

Distribution network.
Wide range of innovative products. Active involvement of master chefs in. innovating new verities

of biscuits.
ITCs competitive advantage procurement of commodities

WEAKNESS

Still dependent on tobacco business for revenues. The negative impact of tobacco in the name gives a picture of poor health and premature death.

OPPORTUNITY
Scope of Increasing market share as:-

Total production of biscuits in India is estimated to be around 30 lakh MT

The biscuit industry is estimated to grow over 15-17% in the next few years. In the mid to premium category, there are several taste buckets and categories available on the health & nutrition, indulgence and convenience platforms. In these three platforms there is still a lot to be exploited. It is possible to innovate around that

THREATS

Competition from other organized sector

Entry of global players like kraft food ltd and McVities

CURRENT PRODUCT 1.Market Penetration (Intensive Growth)

NEW PRODUCT 3. Product Development (Intensive Growth)

C U R R E N T
M A R K E T

Attract Users of Competitors Product.

Introduction of combo packs at discounted price Increase Product Usage. New usage like using Sunfeast Snacky Classic salted and Chilli flakes biscuit with different toppings.

Product Reformulation
Sunfeast Marie Light Oats Product line Extension Relaunch of Sunfeast Dark Fantasy Cream Delight with new flavour New product development

Increase the frequency of purchase.

Making small packages available like sunfeast special at Rs.5 and Glucose biscuits at Rs.1 Sunfeast Marie Light Orange dream cream with Butter scotch flavour Dark Fantasy Choco fills targeting premium segment

CURRENT PRODUCT
2. Market Development (Intensive Growth) Expand geographically Launched in the Middle East and Africa Related

NEW PRODUCT
4. Diversification

NEW MARKET

Sunfeast Yippie Sunfeast Pasta

Integrative Growth
Backward Integration- Procurement of agricultural raw materials from E-choupal

COMPETITORS ANALYSIS

The major players in the Indian biscuit industry are:-

Parle
Britannia Priya gold Oreo

MARKET SHARE
1 5 8

Parle
10 40

Britania Sunfeast Priyagold Kraft Foods Others

36

STRENGTH

WEAKNESS

Well defined and appealing advertisements highlighting the core value of energy and health

Unable to come up with strategies to maintain market share- oreo, sunfeast biting into its market share

BRITANNIA

Well diversified portfolio of biscuits and innovative concepts of smaller size packets Only biscuit company to have removed trans-fat from all its recipes, catering to a market with sensitive needs Brand image, one of the oldest in the country Overdependence on Parle G brand Rely more on retailers ad grocery stores to showcase their diversified product range rather than on individual advertisement of individual products. Declining market share

PARLE

Extensive distribution system Low and mid range prices catering to all segments of consumers

STRENGTH

WEAKNESS

Extensive and varied portfolio of biscuits Quality assurance

Lacking to cater to the High-income segment

PRIYA GOLD

Big budget and willingness to invest in long term phases

Inability to retain target consumers

Oreo has collaborated with McDonalds, Dominos and Baskin Robbins to promote its product

Nutritional problems, high fat content and calories Limited flavours and varieties

OREO

Very well-known brand name(Cadbury) Well established customer base

RECOMMENDATIONS
Quality improvement and image advertising as compared to market leader The company can look at diversifying into the chocolates and candies segment as the name sunfeast resonates well with the kids The premium and super premium segments according to industry experts are believed to be growing at around 30% annually. So sunfeast can come up with new varieties in premium segment Sunfeast should provide better benefits to wholesalers and retailers as Nestle is providing higher margin to retailers to compete in the market

References
www.ibmabiscuits.in

www.indianmirror.com
www.wikipedia.org http://business.mapsofindia.com/top-brands-india/top-noodle-brands-in-india.html

http://articles.economictimes.indiatimes.com/2011-03-16/news/28698081_1_instantnoodles-market-cg-foods-wai-wai
http://www.indiafoodbrief.com/opinion/154-from-the-editors-desk/126394-pasta-for-nastahttp://www.thehindubusinessline.com/companies/article1474941.ece

http://itcportal.com/about-itc/itc-profile/history-and-evolution.aspx