MARKETING

CAPSTONE
GROUP: E
LIPIKA BANSAL (P027)
SOHAIL ALI KHAN (H094)
SUMIT DHANOTIYA (H098)
BISHAL KUMAR (H077)
ROHIT GUSSAIN (H090)
AVASH PANDA (H076)
Source: https://www.ibef.org/download/FMCG-November-2019.pdf
 ITC OVERVIEW

• ITC limited is an Indian multinational conglomerate company headquartered in Kolkata,

west Bengal
• The company was renamed as the ‘India Tobacco Company Limited' in 1970 and later to
‘I.T.C. Limited' in 1974
• The company is having 27279 work force
• Products the company is offering are Consumer Goods, Cigarettes, Apparel, Education,
Hotels and Resorts, Paperboards & Specialty, Papers Packaging, Agri-business,
Information Technology.
• Market Capitalization of company is Rs. 265199.58 crore
 ITC
Personal
Cigarettes Foods
Care
Key Players and their Annual Turnover for the 2017-18
Key Players Annual Turnover ( in Crores)
ITC 44995.65
HUL 38224
P&G 2946.40
Godfrey Philips 2592

Key Players and their Market Share

Key Players Cigarettes Foods Personal Care Others
ITC 41% 16% 8% 35%
HUL - 6% 49% 45%
P&G - 7% 69% 24%
Godfrey Philips 85% 15% - -
https://economictimes.indiatimes.com/itc-ltd/yearly/companyid-13554.cms
 ITC
Gold Flake
 Gold Flake was produced by the Bristol
 company of W.D. & H.O. Wills, from 1901 part
of Imperial Tobacco
 ITC launched the brand Gold Flake in India in
the 1960.
 ITC has launched its smallest size which is of
64 mm and costs 100 Rupees for a 10-pack of
cigarettes.
 Categories:-
• Gold Flake Kings (84 mm)
• Gold Flake Kings Lights (84mm)
• Gold Flake (64mm)
• Gold Flake Lights (64mm)
P&G
Gillette
 In 1901 the American Safety Razor Company,
soon renamed the Gillette Safety Razor
Company, was formed.
 Gillette India Ltd formerly known
as Indian Shaving Products Ltd was incorporated
in the year February 09th 1984
 Product Catogry
• Gillette Classic Sensitive Shave Foam
• Gillette Mach 3 Manual Shaving Razor Blades
• Gillette Fusion Manual Shaving Razor Blades
• Gillette Series 3x Protection Sensitive Shave
Foam with Aloe
GROWTH IN FMCG INDUSTRY IN INDIA

https://www.itcportal.com/about-itc/shareholder-value/ITC-Corporate-Presentation.pdf
BUSINESS

MODEL
OF
HUL
BUSINESS MODEL OF ITC
COMPANIES STRENGTH WEAKNESS
Sustainability and CSR Dependency on Tobacco
Strong Research and products.
ITC Development Govt. Policies regarding
Diversified Product and cigarettes
Services
Economies of scale Limited Product
Brand Image Limited degree of business
P&G Efficient product distribution diversification
network
Market Share Stiff competition
Research and Development Decreasing market share
HUL Strong distribution network High Adverting cost

Increasing Global value Limited market share

Specialized in their product Govt. policies
Godfrey Phillips Strong financial position
FACTORS AFFECTING
BUYING
BEHAVIOR

 PURCHASING POWER

 GROUP INFLUENCE

 PERSONAL PREFERENCES

 ECONOMIC CONDITION

 MARKETING CAMPAIGNS
CATEGORY

Fiama di Wills Sunsilk Pantene

Segmentation-
Demographics- males, females,
income- middle class
Geographic- urban, metros
SHAMPOO TG- 16- 40yrs , skin conscious
youth
Positioning- Luxury bath
experience
Segmentation-
Demographic- females, income-
middle & lower classes
Geographic-rural, urban, metros
TG- 15- 45yrs
Positioning- Beauty, Affordable
Segmentation-
Demographic- Females,
income- upper class, upper
middle class
Geographic- urban, metros
TG- 16- 40yrs
Positioning- Beauty, Elegant,
Sophisticated

Olay Lux Vivel

Segmentation-
Demographic- females, income-
upper class
Geographic-metros, urban
SOAPS TG- 30- 45yrs
Positioning- A product for middle
aged socially active women who
wants to look young and beautiful
Segmentation- Segmentation-
Demographics- Female, income- Demographics- males, females,
middle, upper middle income- middle class
Geographic- urban, sub urban, Geographic- urban, metros,
metros
Behavioral- Glamour, beauty,
sub urban
TG- 16- 40yrs
fragrance Positioning- Beauty,
TG- 16- 40yrs fragrance
Positioning- Beauty, Affordable
CATEGORY

Gold Flake Marlboro

Segmentation- Segmentation-
Demographic- Age, Demographic- Age, Socio-
Gender, Socio-economic economic class
class Geographic – Urban
Geographic – Urban and TG- 16- 40yrs
CIGARETTES semi-urban cities Behavioral – Personality,
TG- 16- 40yrs Lifestyle
Positioning- depends on Positioning- Premium product
the products
 PRODUCT
• Has occupied 81% market share
in selling Cigarettes in India.
• Cigarettes – Wills Navy Cut, Gold
Flake King, etc.
• Food – Bingo, Sunfeast,
Aashirvaad, Yippee, etc.
• Personal Care – Fiama, Vivel,
Engage, Savlon, etc.
PLACE
• Market its products to every
nook and corner of India and has
spread its network to nearly 60
locations of India.
• Set up its Tobacco Business in
Nepal vis Joint Venture.
• It started online sales from the
year 2014 in order to move with
changing times.
PRICE
• For Consumer Products -
Maintains both competitive and
penetration pricing strategies to
deal with its competitors and to
spread the product reach to
remote areas.
• For Luxurious Products (Hotel
Business) – Adopted premium
pricing policy.
PROMOTION
• Adopted aggressive marketing
strategies
• Used promotional tools like
electronic media, print media
and social media.
• Launched several Ad-campaigns
via popular television channels,
aired on radio and hoardings.
 PRODUCT
• Deals in various product categories
like Feminine Hygiene, Food, Hair
Care, Laundry Detergents, etc.
• Skin Care – Olay, Secret, etc
• Laundry Detergent – Tide Ariel, etc
• Haircare – Pantene, Rejoice, Head &
Shoulder.
• Personal Hygiene – Whisper,
Pampers, etc
PLACE
• Network channel consists of
manufacturers, who are the
producing agents, and from them to
the wholesalers who are the
distributors and from them to
retailers who are in fact the suppliers
for the consumers.
PRICE
• For Consumer Products – uses
competitive pricing.
• For New Launch – uses penetration
pricing
• For Premium Products – uses
Premium pricing policy.
PROMOTION
• Capitalizes heavily on online media
and insists on “attraction strategy”.
• Through tie-ups with numerous
shopping sites.
• By sponsoring various shows on
different television channels.
• Providing free samples as promotion
technique at various events to
increase product visibility.
 PRODUCT
• Food Brands – Lipton Tea, Brooke Bond
Tea, Bru coffee, Magnum, etc.
• Homecare Brand – Rin, Surf Excel, Vim,
Dishwash, Wheel, Comfort, etc.
• Personal Care – Tresemme, Vaseline,
Sunsilk, Ponds, Pepsodent, Lux,
Lifebuoy, Lakme, Dove, etc.
• Puriet Water Purifier
PLACE
• Has vast distribution channel having
atleast 2 million outlets and 7.7 million
retail shops in every part of country.
• Also has direct selling network called “
Hindustan Unilever Network Limited”.
• Reaches customers through independent
wholesalers and retail outlets with a
minimum of 2900 stockists.
• Uses Four- Tier Distribution system for
rural market.
PRICE
• Used simple pricing strategy for low
cost products to reach wider market.
• For some products it uses
competitive based pricing as well.
• Also kept premium pricing for
products, those who are happy to buy
branded and premium products.
PROMOTION
• Shares product knowledge using
print media.
• Sometimes coupons are attached
with local newspaper to promote the
product.
• Discounts are provided along with
various schemes to attract the
customers.
 PRODUCT PRICE

• Cigarette
• Premium Pricing
Four Square
Marlboro , Fuse, Cluve
Marlboro
• Penetration Pricing
Red and White
Four square special
Cavander
• Price Skimming
• Pan Masala
Advance (blue)
• Cigar
• Economy Pricing
• Chewing
Cavander smooth gold
• Confectionary

PLACE PROMOTION

• Traditional distribution channel
is followed which consist of
dealer, retailer
• Sales promotion
Insert coupons(for retailers)
• Advertisement
Branding on counters
Hoardings
• Personal Selling
Samples to retailers, consumer
ITC PROMOTIONAL STRATEGY

https://www.itcportal.com/about-itc/shareholder-value/ITC-Corporate-Presentation.pdf
FESTIVAL ACTIVATIONS ACROSS KEY BRANDS
 SURROGATE
ADVERTISING
 PESTEL ANALYSIS

POLITICAL ECONOMIC SOCIAL TECHNOLOGY ENVIRONMENT LEGAL

• Increased • Contributing • Social • Collaborating • 78% waste • Ban on
Excise Duties over 20000 Investment with global hands reduced smoking in
• Smuggling in employment Programs over for increasing • Rain water public areas
Tobacco • Supporting the 26 states more future harvesting &
products competitiveness covering 166 opportunities treatment of waste
• Cigarette taxes of 120 vendors districts • Packed category water
in India are of SME • Empowering tested by HACCP • Greenhouse gases
14%, 9% and farmers • ITC’s Lifestyle to be reduced by
7% higher than through E- Business is a afforestation
USA, China, Choupal contemporary
Japan. initiative master Design
Facility
 SWOT ANALYSIS

Strength
 Strong Brand Preference Weakness
 Dependency on Tobacco
 Diversified Product and products.
Services  Less market share for hotel
 Strong Research & Industry
Development
SWOT

Opportunity Threat
 Tap rural markets  Strict govt. policies
 Merger & Acquisition to regarding cigarettes
strengthen the brand  Increasing FDI in retail
 BCG MATRIX CATEGORY WISE
High

Market Growth Rate

Personal Care
Food & beverages
House hold care
High

Low
Tobacco
Lightings

Low
Relative Market Share
 BCG MATRIX PRODUCT WISE
High

Market Growth Rate

Gold Flake
Fiama Di
Sunfeast & Vivel
Willis
Aashirvaad Bingo
Wills(Clothing)
Classmate
High

Low
Mangaldeep Kitchens of India

PaperKraft Essenza Superia (body care)

Low
Relative Market Share
 CORE COMPETENCIES

• Deep Farmer Linkage

• Unmatched Distribution Reach
• Rural Market Expertise
• Brand Building Capabilities
MARKETING INFORMATION SYSTEM (MIS)
• Four Main Components:

Internal Data Marketing Decision Support System

Marketing Intelligence Marketing Research
NEW PRODUCT DEVELOPMENT STRATEGY
NEW PRODUCT DEVELOPMENT PROCESS
 4 P’S OF DAMDAR

• PRODUCT
• PRICE
• PLACE
• PROMOTION
 PRODUCT

• Product is detergent powder ‘DAMDAR’ – aiming mediocre person to

keep their hands safe while washing the clothes
• USP – skin friendly (water soluble sodium sulphate to keep hands soft)
• Features – superior whiteness, natural freshness and cleans well without
irritation
 PRICE
• Competitive Based Pricing technique is used.

COMPONENTS GHADI (1KG) DAMDAR (1KG)

Manufacturing Cost
(Raw Material, Variable cost, Fixed cost,
₹40 ₹46
Logistic, Advertising and Promotion cost,
etc.)
Dealer’s Margin 9% 12%
Retailer’s Margin 12% 18%
Profit Margin ₹6.16 ₹1.20
MRP ₹55 ₹62
 PRICE (CONTD.)

SIZE VARIENT PRICE (Rs.)

1 KG ₹ 62

500 Grams ₹ 31

250 Grams ₹ 16

150 Grams ₹ 10

80 Grams ₹5
 PLACE

• Ranked as one of the best company in the world with an experienced and
strong management and distribution network.
• Its network is spread to nearly 60 locations in most part of India.
PLACE
 PROMOTION

Offline
Promotion

TV Local
Radio Ads
Advertisement Newspaper
 STP OF ‘DAMDAR’

• SEGMENTATION : Following are the factors-

Demographic – Income Level
Geographic – Rural and Semi Urban
Behavioral – Price Conscious
• TARGETING : Families belonging to Tier 3 & 4
Income level < 4 lac
• POSITIONING : A skin friendly detergent at affordable prices.
 HIGH
PRICE

HARSH ON MILD ON
HANDS HANDS

LOW
PRICE
MISSION, VISION, MARKETING OBJECTIVES
AND GOALS

• MISSION – Save Money, Save Water, Save Hands

• VISION – To be the leader in the Rural Market. Our Product is customer
focused, offers best quality product which maximizes value to the customer
• MARKETING OBJECTIVES – To capture 10% market share in the next
2 years
• GOALS –
 MARKET ATTRACTIVENESS

• Market Size
 MARKET ATTRACTIVENESS

• Market Growth – The market for powder detergents will expand at 4% a

year to Rs 4,500 crore by 2021.
• Intensity of Competition – Low (2 major competitors – GHADI and
NIRMA)
• Risk – Product Differentiation and Entry Barriers

https://economictimes.indiatimes.com/industry/cons-products/fmcg/hul-pg-nirma-lose-market-share-to-small-local-brands/
articleshow/57761589.cms
M
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K P
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 MARKETING BUDGET

Sales Budget Promotion Budget

Damdar Sales Budget
TV Advertisement
For the year ended December 2022
Brand Ambassador – 4 Crore
  Quarter 1 Quarter 2 Quarter 3 Quarter 4 Media Scheduling - 15 Crore
Forecasted unit sales 100000 112500 126562.5 142382.8 Radio Advertisement
* Price per Unit 62 62 62 62 Slot Booking – 50 lakh

Total gross sales 6200000 6975000 7846875 8827734 Print Media

Sales discounts(5%)
0 0 392343.8 441386.7
Local Newspaper – 75 Lakh
From 3rd quarter
Test Marketing – 1 Crore
Total net sales 6200000 6975000 7454531 8386348
 BRANDING STRATEGY

• Logo -

• Tagline - Kapdo Pe Sakht, Hatho Pe Narm

• Our TV campaign shows the product usp through a emotional message including
vidhya balan as a brand ambassador.