Assignment No.

4
Submitted By:-
Abhishek Verma , Anushka , Dipanita , Inu
INTRODUCTION
ITC Ltd (ITC) was joined on August 24, 1910, under the name Imperial Tobacco
Company of India Ltd. to make cigarettes and tobacco. In 1975, the association
entered the invitingness business with the acquirement of ITC–Welcome group
Hotel Chola. the name of the Company was changed to I.T.C. Compelled in 1974.
In affirmation of the Company's multi–business portfolio fusing a wide extent of
associations – Cigarettes and Tobacco, Hotels, Information Technology,
Packaging, Paperboards and Specialty Papers, Agri–Exports, Foods, Lifestyle
Retailing and Greeting Gifting and Stationery – the full stops in the Company's
name were emptied effective September 18, 2001. The Company as of now stands
rechristened 'ITC Limited'.

ITC is one of India's head private zone associations with a market capitalization of
about US $ 14 billion and a turnover of over $ 5 billion. ITC is assessed 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 positions among India's '10 Most Valuable (Company) Brands', in an
examination drove by Brand Finance and conveyed by the Economic Times. ITC
moreover positions among Asia's 50 best performing associations amassed by
Business Week.

ITC has an improved proximity in Cigarettes, Hotels, Paperboards and Specialty

Papers, Packaging, Agri–Business, Packaged Foods and Confectionery,
Information Technology, Branded Apparel, Personal Care, Stationery, Safety
Matches and other FMCG things. While ITC is a noteworthy market pioneer in its
traditional associations of Cigarettes, Hotels, Paperboards, Packaging and Agri–
Exports, it is rapidly getting bit of the general business even in its nascent
associations of Packaged Foods and Confectionery, Branded Apparel, Personal
Care and Stationery. As one of India's commonly significant and respected
organizations, ITC is extensively observed to be dedicatedly nation masterminded.

ITC's Agri–Business is maybe the greatest exporter of agrarian things. ITC is one
of the country's most noteworthy remote exchange laborers ( $ 3.2 billion in the
latest decade). The Company's 'e–Choupal' action is engaging Indian cultivation
generally improve its force by empowering Indian farmers through the power of
the Internet. This transformational philosophy, which has quite recently gotten the
subject of a logical investigation at Harvard Business School, is depended upon to
powerfully make for ITC a massive nation transport establishment, generally
updating the Company's promoting reach.

ITC's totally asserted Information Technology helper, ITC Infotech India Ltd,
offers IT organizations and responses for driving overall customers. ITC Infotech
has cut a claim to fame for itself by watching out for customer challenges through
innovative IT game plans.

Its beginnings were unassuming. A leased office on Radha Bazar Lane, Kolkata,
was the point of convergence of the Company's quality. The Company lauded its
sixteenth birthday festivity on August 24, 1926, by purchasing the plot of land
orchestrated at 37, Chowringhee, (by and by renamed J.L. Nehru Road) Kolkata,
for the entire of Rs 310,000. This decision of the Company was vital in a more
prominent number of ways than one. It was to check the beginning of a long and
significant journey into India's future. The Company's headquarter building,
'Virginia House', which came up on that plot of land two years afterward, would
continue to get one of Kolkata's most loved achievements. The Company's
ownership ceaselessly Indianized, and the name of the Company was changed to
I.T.C. Limited in 1974. In affirmation of the Company's multi–business portfolio
joining a wide extent of associations – Cigarettes and Tobacco, Hotels, Information
Technology, Packaging, Paperboards and Specialty Papers, Agri–Exports, Foods,
Lifestyle Retailing and Greeting Gifting and Stationery – the full stops in the
Company's name were ousted reasonable September 18, 2001. The Company by
and by stands rechristened 'ITC Limited'.

In spite of the way that the underlying six numerous long periods of the Company's
quality were essentially devoted to the turn of events and association of the
Cigarettes and Leaf Tobacco associations, the Seventies saw the beginnings of a
corporate change that would present noteworthy changes in the life of the
Company.

ITC's Packaging and Printing Business was set up in 1925 as a fundamental in

switch fuse for ITC's Cigarettes business. It is today India's most current packaging
house.
In 1975 the Company pushed its Hotels business with the acquisition of a housing
in Chennai which was rechristened 'ITC–Welcome group Hotel Chola'. The
objective of ITC's passageway into the lodgings business was set up in making a
motivating force for the nation. ITC picked the motels business for its capacity to
secure raised degrees of outside exchange, make the movement business system
and produce colossal extension quick and underhanded work. Starting now and
into the foreseeable future ITC's Hotels business has created to include a position
of power, with in excess of 100 had and regulated properties spread across India.

In 1979, ITC entered the Paperboards business by progressing ITC Bhadrachalam

Paperboards Limited, which today has become the market boss in India.
Bhadrachalam Paperboards amalgamated with the Company ground-breaking
March 13, 2002 and transformed into a Division of the Company, Bhadrachalam
Paperboards Division. In November 2002, this division combined with the
Company's Tribeni Tissues Division to outline the Paperboards and Specialty
Papers Division. ITC's paperboards' development, proficiency, quality and
gathering structures are like the best on earth. It has similarly made a gigantic
pledge to the headway of Sarapaka, a financially in turn around locale in the region
of Andhra Pradesh. It is direct connected with preparing, environmental protection
and system improvement. In 2004, ITC got the paperboard creating office of BILT
Industrial Packaging Co. Ltd (BIPCO), close Coimbatore, Tamil Nadu. The Kovai
Unit grants ITC to improve customer help with reduced lead time and an
increasingly broad thing broaden.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo–Nepal and British joint
undertaking. Since initiation, its offers have been held by ITC, British American
Tobacco and diverse free financial specialists in Nepal. In August 2002, Surya
Tobacco transformed into an assistant of ITC Limited and its name was changed to
Surya Nepal Private Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing

association and a huge supplier of tissue paper to the cigarette business. The
solidified component was named the Tribeni Tissues Division (TTD). To harness
fundamental and operational coordinated efforts, TTD was united with the
Bhadrachalam Paperboards Division to shape the Paperboards and Specialty
Papers Division in November 2002.
Moreover in 1990, using its agri–sourcing competency, ITC set up the Agri
Business Division for toll of agri–items. The Division is today most likely the
greatest exporter. ITC's unique and now extensively perceived e–Choupal
movement began in 2000 with soya farmers in Madhya Pradesh. Directly it
connects with 10 states covering in excess of 4 million farmers. ITC's first nation
strip mall, started 'Choupal Saagar' was presented in August 2004 at Sehore. On
the natural retail front, 24 'Choupal Saagars' are by and by operational in the 3
states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC forayed into the Greeting, Gifting and Stationery things business with
the dispatch of Expressions extent of welcome cards. A line of premium extent of
scratch pads under brand "Paperkraft" was moved in 2002. To amplify its
commitment and to show up at a progressively broad understudy people, the
notable extent of scratch cushion was moved under brand "Companion" in 2003.
"Classmate" during the time has formed to transform into India's greatest diary
brand and has moreover extended its portfolio to have an increasingly noticeable
bit of the school sack. Quite a while 2007–2009 saw the dispatch of Children
Books, Slam Books, Geometry Boxes, Pens and Pencils under the "Accomplice"
brand. In 2008, ITC repositioned the business as the Education and Stationery
Products Business and impelled India's first condition sincere premium business
paper under the "Paperkraft" Brand. "Paperkraft" offers a different portfolio in the
excellent authority composing material and office consumables segment.
Paperkraft entered new classes in the work environment consumable part with the
dispatch of Text liners, Permanent Ink Markers and White Board Markers in 2009.

ITC in like manner entered the Lifestyle Retailing business with the Wills Sport
extent of overall quality extricated up wear for individuals in 2000. The Wills
Lifestyle chain of particular stores later stretched out its range to fuse Wills Classic
appropriate wear (2002) and Wills Clublife evening wear (2003). ITC furthermore
began an intrusion into the notable part with its men's wear picture, John Players,
in 2002. In 2006, Wills Lifestyle became title accessory of the country's most head
style event – Wills Lifestyle India Fashion Week – that has gotten affirmation from
buyers and retailers as the single greatest B–2–B stage for the Fashion Design
industry. To stamp the occasion, ITC pushed an excellent 'Celebration Series',
taking the event forward to purchasers. In 2007, the Company introduced 'Miss
Players'– a style brand in the standard area for the youngster.
In 2000, ITC spun off its information development business into an altogether had
helper, ITC Infotech India Limited, to even more compellingly look for subsequent
to rising open entryways around there. Today ITC Infotech is one of India's fastest
creating overall IT and IT–enabled organizations associations and has set up itself
as a key player in toward the ocean re-appropriating, giving re-appropriated IT
game plans and organizations to driving overall customers across key focus
verticals – Manufacturing, BFSI (Banking, Financial Services and Insurance),
CPG&R (Consumer Packaged Goods and Retail), THT (Travel, Hospitality and
Transportation) and Media and Entertainment.

ITC's attack into the Foods business is a surprising instance of adequately blending
various inside abilities to make another driver of business improvement. It began in
August 2001 with the introduction of 'Kitchens of India' arranged to–eat Indian
gourmet dishes. In 2002, ITC entered the sweet shop and staples parts with the
dispatch of the brands mint–o and Candyman dessert parlor and Aashirvaad atta
(wheat flour). 2003 saw the introduction of Sunfeast as the Company entered the
bread moves divide. ITC's entered the rapidly creating stamped snacks grouping
with Bingo! in 2007. In just seven years, the Foods business has created to a
critical size with in excess of 200 isolated things under six specific brands, with a
worthwhile transport go to, a rapidly creating bit of the general business and a solid
market standing.

In 2002, ITC's perspective of adding to overhauling the force of the entire worth
chain discovered one more explanation in the Safety Matches action. ITC now
features notable prosperity matches brands like iKno, Mangaldeep, Aim, Aim
Mega and Aim Metro.

ITC's assault into the advancing of Agarbattis (incense sticks) in 2003 signified the
presence of its relationship with the lodge zone. ITC's standard agarbattis brands
join Spriha and Mangaldeep over an extent of aromas like Rose, Jasmine, Bouquet,
Sandalwood, Madhur, Sambrani and Nagchampa.

ITC introduced Essenza Di Wills, a specific extent of fine smells and shower and
body care things for individuals in July 2005. Inizio, the imprint stretch out under
Essenza Di Wills outfits an intensive preparing routine with specific lines for men
(Inizio Homme) and women (Inizio Femme). Continuing with its show of
conveying world class things to Indian buyers the Company impelled 'Fiama Di
Wills', a choice extent of Shampoos, Shower Gels and Soaps in September,
October and December 2007 independently. The Company in like manner impelled
the 'Superia' extent of Soaps and Shampoos in the mass–publicize divide at select
markets in October 2007 and Vivel De Wills and Vivel extent of chemicals in
February and Vivel extent of shampoos in June 2008.

INFORMATION ABOUT SECTOR

Quick moving buyer merchandise (FMCG) or shopper bundled products (CPG) are
items that are sold rapidly and at generally minimal effort. Models incorporate
non-tough merchandise, for example, FMCG, toiletries, and staple things. In spite
of the fact that the supreme benefit made on FMCG items is moderately little, they
are commonly sold in enormous amounts, thus the aggregate benefit on such items
can be significant.
Quick moving buyer hardware are a sort of FMCG and are ordinarily low valued
nonexclusive or effectively substitutable purchaser gadgets, including lower end
cell phones, MP3 players, game players, and computerized cameras, which have a
short utilization life, normally a year or less, and as such are expendable. Modest
FMCG hardware are regularly held considerably after quick disappointment, as the
buyer justifies the choice to not return the merchandise on the premise that the
products were modest in the first place, and that the expense of return comparative
with the ease of procurement is high. Along these lines low-quality electronic
FMCG merchandise can be exceptionally gainful for the merchants.
The term FMCGs alludes to those retail products that are for the most part
supplanted or completely spent over a brief time of days, weeks, or months, and
inside one year. This diverges from sturdy merchandise or significant machines,
for example, kitchen apparatuses, which are commonly supplanted over a time of
quite a long while.
FMCG have a short time span of usability, either because of high customer request
or on the grounds that the item disintegrates quickly. Some FMCGs, for example,
meat, leafy foods, dairy items, and heated products—are profoundly short-lived.
Different merchandise, for example, liquor, toiletries, pre-bundled nourishments,
FMCG, and cleaning items have high turnover rates. A brilliant model is a paper—
each day's paper conveys distinctive substance, making one futile only one day
later, requiring another buy each day.
The principle attributes of FMCGs:

From the customers' point of view:

 Visit buy
 Low contribution (practically no push to pick the thing – items with solid
brand devotion are special cases to this standard)
 Low cost

From the advertisers' point:

 High volumes
 Low commitment edges
 Broad dispersion systems
 High stock turnover
CATEGORY OF COMPANY
BUSINESS MODEL
1. Customer segment:
ITC covers the mass market, as they cover the product segment such as- All
FMCG products which covers food and beverages, Health and Hygiene,
Personal care, Education and stationery etc. ITC also have hotels. It is also
in information Technology department. So, ITC is spread in large span so it
has large customer base.

2. Value proposition:

 ITC is the clear market leader in the Indian Paperboard and Packaging
industry.
 A globally acknowledged pioneer in farmer empowerment through its
wide-reaching Agri Business.
 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. 
 Ranked N0. 3 Globally in Foods Industry.
3. Channels:

ITC reaches the customers through various channels, such as-

Advertisements in television, internet, Print media such as newspapers,
magazines, banners and hoardings. They also reach the customers through
social media apps such as Facebook, twitter.

4. Customer relationship:
ITC is always customer focused and delivers what the customer needs in terms
of value, quality and satisfaction. Customers can reach the company through the
help line number or website.

5. Key activities:

Their Key Activity is to manufacture FMCG products and Paperboards and

Specialty papers, provide services through their hotels and ITC infotech.
 They also have an Agri business where they help farmers to grow quality
grain. They are also involved in Printing and packaging business.

6. Key partners:

ITC’s Key Partners are their shareholders, Sustainability partners and

employees.

7. Key resources:

Their Key Resources are their employees, Factories, Hotels, raw materials
they use, social investment, ITC report & accounts, ITC sustainability report
ana many more.

8. Cost structure:
The cost of the company is mainly on manufacturing and servicing
providing. Some of the major cost drivers are in the areas of sales/marketing
and administration, both fixed costs.

9. Revenue stream:

Their Revenue Stream is from the sales of raw materials, service provided
by the hotels and ITC Infotech, Packaging and printing business.
PRODUCTS AND SERVICES

In FMCG, ITC has a strong presence in  :

 Cigarettes: W.D. & H.O. Wills, Gold Flake Kings, Gold Flake Premium,
Gold Flake Super Star, Navy Cut, Insignia, India Kings, Classic (Verve,
Menthol, Menthol Rush, Regular, Citric Twist, Mild & Ultra Mild), 555,
Benson & Hedges, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky
Strike, Players and Flake.
 Foods: (Kitchens of India; Aashirvaad, Minto, Sunfeast,Candyman,
Bingo,Yippee, Sunfeast Pasta brands in Ready to Eat, Staples, Biscuits,
Confectionery, Noodles and Snack Foods);
 Apparel: (Wills Lifestyle and John Players brands);
 Personal care: (Fiama di Wills; Vivel; Essenza di Wills; Superia; Vivel di
Wills brands of products in perfumes, haircare and skincare)
 Stationery: (Classmate and PaperKraft brands)
 Safety Matches and Agarbattis: [Ship (through ownership of WIMCO);
iKno; Mangaldeep; Aim brands]

Other businesses include:

 Hotels: ITC's hotels (under brands including WelcomHotel) have evolved

into being India's second largest hotel chain with over 80 hotels throughout
the country. ITC is also the exclusive franchisee in India of two brands
owned by Sheraton International Inc.- The Luxury Collection and Sheraton
which ITC uses in association with its own brands in the luxury 5 star
segment. Brands in the hospitality sector owned and operated by its
subsidiaries include Fortune and WelcomeHeritage brands.
 Paperboard, Specialty Paper, Graphic and other Paper;
 Packaging and Printing for diverse international and Indian clientele.
 Infotech (through its fully owned subsidiary ITC Infotech India Limited
which is a SEI CMM Level 5 company)
SOME OF THE COMPETITORS IN EACH PRODUCTS AND SERVICES
CATEGORIES

[Link]

Hindustan Unilever Limited (HUL) is the largest Fast Moving Consumer Goods
Company located in India. It has a rich 80 years of legacy in this field. Almost, nine
out of ten Indian households make use of the products of HUL.

The company works daily for a better future to make people feel and look good with
their various brands and services. The main product includes cleaning agents, food
products, personal care products, and water purifiers. It has about 35 brands which
span across 20 distinct categories. The company’s research center continuously works
and develops innovative products which make HUL lead the consumer goods market.
As HUL is considered as a market leader in consumer goods, it is indeed a top ITC
competitor.

[Link]

Nestle is a food processing industry located in Switzerland. Established in the year

1866, Nestle is the largest food company in the world based on revenue.  It is a lively
company which provides their consumers with various products of global standards.
The company has about 200 brands that range from global to local ones and their
products are available in almost 191 countries. The research and development center
of Nestle is the world’s largest food and nutrition research organization. Due to their
broad portfolio of products, Nestle is considered a top ITC competitor.

[Link]

A popular Ayurveda medicine and natural consumer products manufacturer, Dabur is

an Indian company. The portfolio of Dabur’s FMCG includes five leading brands.
Their brands are well known by the name Dabur for healthcare products, Vatika for
personal care, Hajmola for digestives, Fem for skin care products, and Real for fruit
juices.
The products of Dabur have a huge presence in the international markets and are
available in about 120 countries. The revenue from the international market is about
30% of the total turnover. It is well placed among its customers. Dabur is considered
as the fourth largest company in FMCG segment. It has a great distribution network
worldwide. Due to their brand and the quality of products, Dabur is considered a top
ITC competitor.

ITC Competitors in Hotels

 1. Leela Hotels

An Indian luxury hotel chain, Leela Hotels was founded in the year 1986 by C.P.
Krishnan Nair.  This hotel is a group of nine luxury hotels and palaces. Over the
years, the company has been on a continuous journey to make the travelers
comfortable that crosses their path.
Over the 30 years, Leela Hotels has grown to geta first-class collection of almost nine
award-winning luxury hotels that are spread across the main destinations in India. Due
to their quality of rooms and their service, Leela Hotels is considered a top ITC
competitor.

2. Taj Group of hotels

Taj group of hotels is an international chain of resorts and hotels that is headquartered
in Mumbai, India. It was founded by the Tata group during the year 1903. The
company has about 99 hotels and resorts across 83 locations in India and 16 in other
countries. It is considered to be the best luxury hotel chain in India. Due to their brand
value, Taj group of hotels is considered a top ITC competitor.
 3. Oberoi Group of Hotels

A famous hospitality company, Oberoi Group is headquartered in Delhi. The

company operates more than 30 luxury hotels and two river cruise ships in almost six
countries. It operates with the brand name Trident Hotels and Oberoi Hotels and
Resorts.
This luxury hotel has established its reputation and set an example of luxury in service
amongst the various hotels in the world. Due to their strong base of the client in the
commercial sector and its brand, Oberoi Group of Hotels is considered a top ITC
competitor.
ITC Competitors in Cigarettes

Philip Morris International

With brands like Marlboro, L&M and others in its belt, without a doubt a top ITC
competitor in the cigarette industry is Philip Morris International. Philip Morris is an
American origins company which has worldwide distribution of its cigarette brands.
Cigarettes are a major revenue driver for ITC and Philip Morris hits ITC in the
premium brands of cigarettes.

Philip morris acquired Godfrey phillips, a major Cigarette manufacturer and

distributor in India which is a majority playground for ITC. The combined power and
deep pockets of Philip Morris is a challenger to the market share of ITC.
Recent news of the sector:
 FMCG sector to expand at 9% in FY20, growth to improve in FY21;
The Rs 4-lakh crore FMCG sector will close fiscal 2020 with a 9 per cent
growth, down 4 percentage points and a jump in rural buying will lift the
same to 11 per cent in fiscal 2021. The recovery in growth for the fast
moving consumer goods (FMCG) sector will begin playing out from March-
April 2020 riding on a jump in farm incomes, Crisil NSE 2.57 % Ratings
said in its report.
 India Inc top guns could see big dip in profit & revenue;

India’s top listed companies may post a sharp fall in revenue and profit for
the fourth quarter of FY20 due to large scale shutdown of factories, offices
and public places in the second half of March.
 FMCG companies tweak sales mix in slow market;

To de-tangle growth from the grip of a slowdown, fast-moving consumer

goods (FMCG) companies are redefining their product and marketing
strategies, depending on their stage of evolution.
 FMCG stocks edge lower on CS slowdown bugle;

Most of the Fast Moving Consumer Goods (FMCG) stocks were trading
lower on Thursday after Credit Suisse sounded the bugle of slowdown in the
sector. BSE FMCG index was trading over 0.3 per cent lower intraday.
 Quality FMCG, Parma stocks will withstand lockdown;
All have been working from home since last one week; so, it is not forced.
We had already taken steps earlier and almost 95% of our employees were
working from home. From now on, almost 99% of people will be working
from home; the 1% would be the IT people and some back office and RMS
guys who need to be present in the office. Else, we have made arrangements
for almost 99% of the people to work from home.
 ITC extends fall on heavy volumes; stock slips 12% in 3 days

Shares of ITC were trading lower for the third straight day, falling 8 per cent
to Rs 161 on the BSE on Wednesday on heavy volumes. The stock of
cigarette manufacturer has slipped 12 per cent in the past three trading days
 on reports that the Health Ministry has notified new health warnings for
tobacco products. The counter has seen huge trading volume, with a
combined 22.4 million equity shares changing hands on the NSE and BSE.
 Covid-19 impact: Restrictions on movement still a pain point for FMCG
firms

Logistics and movement of goods continue to be the pain point for FMCG
companies who are considering improving operations this month after May
17.
 ITC, workers' unions face-off over work, pay cuts during Covid-19:

Indian consumer goods giant ITC has warned some workers of disciplinary

action and pay cuts for missing work during the coronavirus epidemic,
leading to a showdown with at least two unions, according to letters from
both sides seen by Reuters. The workforce problems at two ITC food plants
- one in Pune in Maharashtra and another in Karnataka - show how labour
issues weigh on Indian firms after a nationwide coronavirus lockdown
forced thousands of workers to go back to their villages.
 Reasonable capacity utilisation may take a quarter: ITC's Sanjiv Puri

ITC has about 120 manufacturing locations including third-party owned. Of

these, 70-80 are currently operational, but at capacity utilisation ranging
between 20 per cent and 60 per cent.
 ITC evaluating inorganic expansion, aims to boost non-cigarette
verticals

In a filing with the BSE, ITC said, “The Company, as part of its business
strategy, is always exploring inorganic growth opportunities, and enquiries
received from market participants are suitably evaluated.” The company was
responding to a clarification sought from the stock exchange over the
acquisition of Kolkata-based spices major.
 Coronavirus: ITC repurposes Himachal perfume plant to produce
sanitizers

Cigarettes-to-hotels major ITC has repurposed its recently commissioned

perfume manufacturing plant in Himachal Pradesh to make Savlon- branded
 hand sanitizer. This is to cater to the surging demand for hygiene products. It
will help ITC produce an additional 125,000 litres of sanitizer. The firm said
it has reduced prices of its sanitiser and is working round-the-clock to ensure
that the new stocks with revised prices reach the market.

Various strategies adopted by company to survive:

 The company has been launching new products and brand extension with
investment being made towards brand building and increasing its market
share.
 ITC is focusing on delivering value at competitive prices. They believe in
customer friendly products with major emphasis on low cost overall without
compromising on the quality of the product.
 They have adopted both forward and backward integration.
 They have adopted conglomerate diversification strategies. ITC’s diverse
strengths were being leveraged across three product groups- lifestyle
retailing, greeting cards and gifts and branded packaged foods.
 Tie up with leading portals to promote snack range, Online advertising and
can order snack on toll free number, E-commerce activities for ready to eat
snack brand KOI.

Future plans:
 Company will attempt to reinforce the existing Categories in the FMCG
segment.
 ITC’s FMCG business to include newer acquisitions.
 The move is in line with ITC’s efforts to reduce its dependence on the
tobacco business riddled with excessive taxing and regulation.
 The company is looking to build a large stable of consumer goods brands to
compete with the likes of Hindustan Unilever, PepsiCo and Britannia.
Market share of all players and recent facts of the company
 The FMCG sector in India generated revenues worth US$ 49 billion in 2016.
 By 2020, the revenues of the sector are forecasted to reach US$ 104 billion
 In the long run, with the system becoming more transparent and easily
compliable, demonetization is expected to benefit organized players in the
FMCG industry.
 The growth in sales of major FMCG companies like Dabur, HUL, Marico,
in the June-September 2017 quarter, is signalling the revival of consumer
demand in India.
 Direct selling sector in India is expected to reach Rs 159.3 billion (US$ 2.5
billion) by 2021, if provided with a conducive environment through reforms
and regulation.
 Edible oil market in India grew by 25.6 per cent in 2017 to cross Rs 1.3
trillion (US$ 20.08 billion).
 The focus on agriculture, MSMEs, education, healthcare, infrastructure and
employment under the Union Budget 2018-19 is expected to directly impact
the FMCG sector. These initiatives are expected to increase the disposable
income in the hands of the common people, especially in the rural area,
which will be beneficial for the sector.
 Market Share (%)
5% 2% 2% 2%
5% 34%
5%

7%

7%
29%

ITC Hindustan Unilever (HUL) Nestlé

Britannia Patanjali Ayurved Dabur
Godrej Group Marico GlaxoSmithKline (GSK)
Colgate-Palmolive
ITC Product Strategy:
The product strategy and mix in ITC marketing strategy can be explained as
follows:
ITC is a leading FMCG company in India. ITC has a dynamic portfolio in its
marketing mix with businesses spanning FMCG, Agri-business, 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.

ITC Price/Pricing Strategy:

Below is the pricing strategy in ITC marketing 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. For
instance, as Bingo was entering the market, it adopted a very clever aggressive
pricing strategy to capture the market share. 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 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.
ITC Place & Distribution Strategy:
Following is the distribution strategy of ITC:
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.
ITC Promotion & Advertising Strategy:
The promotional and advertising strategy in the ITC marketing strategy is as
follows:
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; Shahruk 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.

USP OF THE COMPANY

ITC is rated among the world’s best big companies.

FUTURE PLANS

“To achieve our revenue target of Rs 1 lakh crore by 2030 from the new
FMCG businesses, we are strengthening our existing categories and venturing
into newer ones,” B Sumant, president of the FMCG business, told.
Kolkata-based conglomerate ITC NSE -1.71 % plans will explore every possible
consumer category and launch 30-40 new products each year in its effort to
become the country's biggest fast-moving consumer goods (FMCG) company, a
company executive.

ITC’s FMCG business includes cigarettes, packaged food, personal care,

stationery, safety matches and agarbattis. The company will launch more products
in the packaged food space since it’s the largest FMCG business for ITC. Last
fiscal, it launched 30 products, next only to the rapidly expanding Patanjali
Ayurveda.