Success of ITC by consumer segmentation

& brand positioning

PRESENTED BY
CHANDRA BHUSHAN TYAGI (2009MB36)
ADITYA SINGH (2009MB30)
ITC AT A GLANCE
 ITC started in year 1910 as Imperial Tobacco Company
of India.
 Headquarter of ITC is Kolkata.
 Present Chairman Y C Deveshwar.
 Market capitalisation that exceeds 100,000 crore till 2nd

quarter of 2010.
 Profit after tax of over 4,000 crore.
 ITC completed 100 years in 2010 ( 1910-2010).
PRODUCT PORTFOLIO
Presence in
 Cigarettes

 Hotels

 Paperboards & Specialty Papers

 Packaging & Printing Business

 Agricultural Industry

 Packaged Foods & Confectionery

 Branded Apparel

 Toiletries

 Education & Stationery Products

 Information Technology

 Safety Matches

 Incense Sticks
Contd….
 Earlier Cigarettes and Leaf Tobacco were its main products.
 In 1975 it started diversifying in other areas starting with hotels.

 The year 2000 ushered in the branded apparel, IT and paper

business. Slowly established itself as a major market player.

 In July 2003, ITC forayed into the Biscuits market with the

Sunfeast range of Glucose, Marie and Cream Biscuits.

 ITC entered the branded Atta market with the launch of

Aashirvaad Atta in Jaipur and Chandigarh on 26th May 2002.

The product is now available all over India.
 The launch of Bingo! in March 2007 marked ITC's foray into the

fast growing branded snack foods segment. Bingo’s portfolio

includes an array of products in both Potato Chips & Finger
Snacks segment.
ITC’s Packaged Foods & Confectionery
PRODUCT BRANDS
Atta Aashirvaad Atta
Salt Aashirvaad Salt
Spices Aashirvaad Spices
Snack foods Bingo
Confectionery Candyman
Mint-o
Biscuits Sunfeast
Chutneys Kitchens of India
 Price
Place

4 Ps

Promo
tion
Product
 Price
 Initial pricing of ITC bingo is a direct frontal attack on Frito Lays
with pricing of Rs 5, 10 and 20.
Place
 It has chosen a combination of flank and frontal attack against the
market leader Frito Lay’s. 
 ITC has made a strategic alliance with Future group.
 The Company has distributed more than 4 lakhs large racks, to
display the brand at all points of sale.
 Within six months of the launch, Bingo was available in more than
2,50,000 retailers across the country, according to which all retail
stores of Future group like Food Bazaar, Big Bazaar.
Contd….
Product
 Bingo! positioned itself with its Indian flavors such as
Tandoori Paneer, Tikka, Spice Paneer etc.
 The segmentation was mainly done on basis of the age of the

people.
 The offerings under the Finger Snacks segment are unique

and innovative
Packaging
 ITC has done the packaging such that the product attracts the

buyer.
 It launched packs with different quantity keeping in mind the

specific consumer demand.

Promotion
 Bingo's advertising follows the AIDA model.
 No Brand Ambassador.
 Comes in unique shapes for better recognition.
 Brand recall along with 16 flavors.
 Humorous and irrelevant themes garnered enough eyeballs to
create awareness of the product and generate an interest towards
the product in the minds of consumers
Segmentation Strategy for

Demographic (Age) Targeting

1-15
Psychographic
(Attitude/Behavior)
Age 16-
>50 class 35
Conservative, reserved, shy
35-
50 Outgoing, Fun loving, Bindass
Contd….
 After spending months researching the consumption habits and
consumer behaviour, ITC has based its campaign on solid research
insights.

 The company's in-house research team of eight people travelled

extensively across the country, studying typical home-made
snacks such as bhel, khakras, gol gappas and so on. The verdict:
as many as 70 per cent of those surveyed confirmed that they
would like to have snacks which are slightly familiar yet have
variations in taste.

 To achieve this, the company turned to the chefs from its

restaurant business to dish out new and tasty combinations of
existing delicacies. They created 16 different varieties inspired
from regular snacks such as potato chips, khakra and pakodas.
What’s in my name ?? (brand name)

Exclamatio
n Mark
Trendy and
Recallable
Fun

Easy to
Catchy
pronounce
Brand property

 Bingo has a unique musical sound that is loved by everyone.

 It is one of the properties that is remembered by everyone and
it is used to recall the brand by every age group.
Branded Apparel
 ITC forayed into the youth fashion segment with the launch of
John Players in December 2002 and John Players is committed to
be the No. 1 fashion brand for the youth.

 Youth icon & bollywood actor, Ranbir Kapoor is the brand

ambassador of John Players. The 'New face of cool' personifies the
youthfulness, vibrancy and panache that brand stands for.
Contd….
 John Players offers a complete and vibrant wardrobe of Casual
wear, Party wear, Work wear, Denims, Outer wear and Suits &
Jackets, incorporating the most contemporary trends, an exciting
mix of colors, playful styling, trendy textures and comfortable fits.

 The brand is available across the country through a nation-wide

network of over 225 exclusive stores and 1200 multi-brand
outlets.

 It is mostly positioned for youth in the price range of Rs 400 to

1000.
Wills Lifestyle
 Wills Lifestyle provides the Indian consumer a truly
'International Shopping Experience' through world-class
ambience, customer facilitation and clearly differentiated
product presentation.

 Wills Lifestyle is the title partner of the country’s most

premier fashion event - Wills Lifestyle India Fashion Week.

 Wills Sport, fashionable relaxed wear for men and women

has, over thirteen seasons, become the vibrant face of
contemporary fashion.
Contd…
 Wills Classic work wear was launched in November 2002,
providing the premium consumer a distinct product offering
and a unique brand positioning.

 Wills Classic work wear is positioned as the brand for new

age leaders, who are changing the rules of business and
encouraging a dynamic culture of enterprise, innovation and
teamwork.

 Wills Clublife brand is uniquely positioned to complement

the glittering evening life of premium consumers perfectly.
How Wills Lifestyle has been able to weave a premium
success story with its high-end branded apparel
range; and how it plans to sustain this success?

 In the past one decade, the nation's shopping habit, especially

in the metros and big cities has changed completely.

 Initially, there were hardly any exclusive premium outlets or

brands of repute for premium wear for men and women.

 Working on these segment-insights, Wills Lifestyle presented

its premium offerings.
Contd…
 Hence, they set out to make a strong store imagery and were
been able to successfully fill those gap.

 Consumers were looking for brands which offer distinct

apparel, for instance, formals, casuals, sports, club wear,
sleepwear, and innerwear.

 They wanted precise solutions and prefer brands which can

help them select a piece of functional clothing, thereby
enriching their quality of life.
Contd…
 ITC, through its deep consumer research and insight, has
understood this fact and rolled out its strategy accordingly.

 In less than a decade, Wills Lifestyle boasts of over 55 retail

stores across 30 cities and enjoys around 8 percent of the Rs
2,000-crore premium branded apparel market.

 Maximum care has been given to the store location as well.

ensure that they are present where consumers are shopping
extensively -- malls and high streets. So the expansion strategy
is in line with what and how consumers are doing and where.
Reference
 http://www.itcportal.com

 www.wikipedia.org

 www.willslifestyle.com
A Brand Loyalty Model Involving Cognitive, Affective,
and Conative Brand Loyalty and Customer Satisfaction
 There is a mediating effects of attitudinal brand
loyalty on the relationship between customer
satisfaction
 customer satisfaction had a significant indirect
effect on behavioral brand loyalty when mediated
by attitudinal brand loyalty, including cognitive-
affective-conative brand loyalty stages and
behavioral brand loyalty
 Thus customer perception of the brand is given
more importance than the purchase frequency
while measuring the brand loyalty by ITC