CULTURAL ENVIRONMENT GROUP 6

Amlan Pati Arpit Agrawal Ekansh Tiwari Neha Balooja Shishir Shukla Tanuj Goyal

ITC
24th Aug, 1910
Company was Incorporated as Private Company under the name IMPERIAL TOBACCO CO. of India Ltd.

Gross Turnover Rs. 30604 crores Market Cap Rs. 140408 crores Profit After Tax Rs. 4988 crores

27th Oct, 1954

Company converted into Public Limited

May, 1970

Name of Company changed to Indian Tobacco Company Ltd.

CULTURE
y According to Hofstede, Culture is the software of the mind- the social programming that runs the way we think, act and perceive ourselves and others. y Culture is defined as a complex whole which consists of customs, attitudes, beliefs and values of a society. The set of shared attitudes, values, goals, and practices that characterizes an institution, organization or group. y It is the total way of life of people.

Cultural Factors
Mode of Living Increased Complexity of Purchases Strong Beliefs Influences Purchase Behavior Values Change

Multiple Lifestyles

Values

Changing Family Structure

More Working Women More Purchasing Power Changing Roles

Time starved customers

Non-Material Accomplishments Increasing Value of Time

Impact of Foreign Culture on Business

Foreign culture has affected India in a significant manner : For Example, Our eating habits have changed dramatically. Owing to increased exposure of media such as television and internet, international travel, etc., the Fashion Retailing segment is gaining popularity

Family System
y Earlier, Joint Family System was prevalent. y Now, Nuclear family is being preferred. The joint family is being split into smaller units of nuclear family. Now, the impacts for Marketers: y Increasing demand for Instant foods and Ready to Eat foods.

Young Singles  Young singles who live alone or with their family.  Low individual income and less financial burden.  Fashion and recreation oriented. BUY:- Two Wheelers, Gift Items, Movies, Computers, Mobile Phones etc.  Note: The current proportion of
population under 25 years in India is 51% and the proportion under 35 is about 66%.
source - http://www.youthportal.gov.in/statistics.htm

Newly Married Couples Young families, No Children. High Income. High level of purchase of homes durable goods. BUY:- Spend heavily on Cars, clothing, Vacations & Leisure activities, highest average purchase of durable goods especially furniture and appliances.

The metrosexual man wants it all

It s not a woman s domain anymore. Men staying glued to mirror or hopping to beauty salons to enhance their looks is becoming quite common. Whether he is an executive, a college student or an entrepreneur, he is very much into the endlessly-admiring-oneself syndrome. Due to globalization in the last two decades, people have become more aware.

No wonder the Indian beauty market is growing at 13% P.A and valued at $8.3 bn Numerous fitness centres Saloons are mushrooming in every corner. Spa s increasing demand

Commercialised beauty
Earlier

Women used to utilize household products like : Turmeric, Besan, multani mitti, lemon, rose leaves,orange peel off.

Macro-Economic Culture
2 decades ago, Roti (food), kapda (clothing) and makaan (shelter) were the issues that India was grappling with. In contrast, here is a list of recent and publicly raised issues that have caught the attention of the masses: Anti-terror rallies Save water campaigns Gay rights parades Women s rights parades Environment issues parades AIDS awareness campaigns Basic education rights campaigns Farmers Uprising

ITC s Business Portfolio

ITC s involvement in Indian Culture

ISSUES CAUSE EFFECTS

Environment Issues

Green-GDP & Sustainable Livelihoods

ITC Hotels awarded LEED platinum rating by US Green Building Council Energy Mix - 35% Renewable

Women Empowerment

Women are becoming more independent and job oriented.

Micro-Credit collaborations among rural women 1359 self-help groups

ISSUES Water conservation

CAUSE Societys awareness towards conservation of water

EFFECTS ITCs Watershed Development Programme 65000 hectares under water conservation

Agri-business

Farmers are getting acquainted with new agricultural techniques

Empowering 4 million farmers in over 40000 villages 6500 E-Choupals in 10 states

Education Rights

Increasing literacy rates

Spread across the country helping 744 govt. schools in infrastructures 2,79,711 students receiving basic education 2715 Supplementary learning centers

Women Empowerment and micro credit Self Help Group Model:

Savings

Credit

SHG members

Savings Support and linkage services

SHG group Trainings Job work Business development

Credit

NGOs
Banks Support and linkage services

Biscuits
Marketed under the brand name Sunfeast Holds Approx. 10% share in the Biscuits Industry
Market Size Value (Rs. Crore) 04-05 05-06 06-07 07-08 08-09 09-10

4279.6 4957.3 5810.6 6411.3 7710.7 9011.1

Cigarettes
Brands Goldflake, Wills, India Kings, Insignia, Berkeley, Silk Cut, etc.
Market Share

04-05

05-06

06-07

07-08

08-09

09-10

ITC Ltd. Godfrey Phillips

81.37 9.73

82.49 9.71

83.29 9.56

83.53 10.03

82.79 10.77

83.36 10.81

Hotels
Tourism in India is the largest service industry contributes 6.23% to national GDP. It is expected to surge by 42% from 2007 to 2011. ITC Maurya, Maratha, Gardenia, Windsor, Sheraton