Unnati App Expansion in Nainital Market
Unnati App Expansion in Nainital Market
On
EXPANSION OF UNNATI APP IN NAINITAL MARKET
(order ITC products online)
AT
SUBMITTED TO THE
SCHOOL OF MANAGEMENT STUDIES
IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE
OF
MASTER OF BUSINESS ADMINISTRATION
Under the Supervision
Of
Mrs. Kavita Khati
(Assistant Professor)
1
PREFACE
The core objective of the internship is to fulfill the requirement of the MBA program. An intern
has to prepare project report at the end of the internship period but the main objective of the
internship is to get the hands-on experience of the real-world organization. The internship was
completed with the objective of getting practical on field knowledge in the Sales and Marketing
department of ITC. Private Limited.
I have Chosen ITC limited because it is a diversified conglomerate in India, operates through
numerous subsidiaries across various sectors. I have worked in FMCG sector. During my
internship I worked on a project “Unnati” which is self ordering app for retailers. Unnati is app
designed exclusively to engage with retailers. It is a free online self-ordering platform for Retailers
through which they can now order anytime anywhere. Retailers can also redeem their earned points
through Unnati.
The major problem I faced during my internship was that Wholesale distribution point (W.D) was
too close to retailer and they all usually order on call. another problem was most of retailer still
don’t use smart phone. Due to this limitation it was not possible to achieve 100% receptive rate of
Unnati app.
This internship report covers many important aspects which are basically related with the
operations of sales and marketing in FMCG sector. I successfully completed all the assigned duties
and handed them over to the senior supervisor at the end of the internship. Though I have tried my
best to keep the report free from errors, I apologize if any error is found which was not deliberately
made. If the report can help any person in providing information, I will feel that the purpose of the
report has been fulfilled.
Divyanshu Kumar
Roll no: 2255034
Student of MBA
2
ACKNOWLEDGEMENT
The gratification and elation of this project will be incomplete without mentioning all the people
who helped me to make it possible, whose guidance and encouragement were valuable to me.
Every project big or small is successful largely due to the effects of number of wonderful people
who have always given their valuable advice. I sincerely appreciate the inspiration, support, and
guidance of all those people who helped me in making this work success. There are many people
who have helped me directly or indirectly in the successful completion of my project. I would like
to take this opportunity to thanks each and everyone.
First of all, I would like to express my deep sense of gratitude towards Dr. Nidhi Bhatt pant (HOD)
for always being available, whenever I required her guidance as well as for motivating me
throughout the project work my teaching and non-teaching staff for giving their valuable
suggestion and co-operation for helping in my project. I am deeply indebted to Mr. Kamal & Mr.
Manish (Daily Salesperson) for providing necessary facilities at execution of this project. I would
like thank all my friends for their efforts during my project making time period. Finally, I am very
much indebted to my Parents for their support and encouragement to achieve higher goals. I have
no words to express my graduate and still I am very thankful to my parents who have shown me
this world and for every support they gave to me.
I, would like to, give special thanks and gratitude to Mr. Mohammad Ibrahim (Sales HR), Mr.
Devendra Bora (Area Executive) and Mr. Ankit thakur (Area Manager) ITC Saharanpur. Without
whose support this project would not have seen the phase of culmination. And thanks for mentoring
and providing the necessary data and information as and when required throughout the project.
Divyanshu Kumar
3
EXECUTIVE SUMMARY
The core objective of the internship is to fulfill the requirement of the MBA program. An intern
has to prepare project report at the end of the internship period but the main objective of the
internship is to get the hands-on experience of the real-world organization. The internship was
completed with the objective of getting practical on field knowledge in the Sales and Marketing
department of ITC. Private Limited.
This project report contains all information about the work I carried out during my internship. As
an intern, I realized that I was successful to gather a lot of significant learning experiences which
would be helpful in my future career. This internship program helped me to learn about the
practical on field scenario of a FMCG sector.
During the internship period I observe my mentor (sales person) while he was talking to the various
customers whether it is walking customer or field work, l learns a lot from my mentor. Along with
that I used to prepare daily report, which is given by my mentor (Area Executive) and I need to do
this on regular basis which help me a lot to understand how work is carried out in FMCG Sector.
“Unnati App” I have worked on this project for ITC. In this I have taken care of installation of
Unnati app at outlets in Nainital, Uttarakhand. The main motive behind this project is to Know the
digitalization of the ITC FMCG sector, to aware customers about Unnati app, to aware them about
various schemes, to analyze the brand awareness, how to retain the existing customers, how other
competitors working Online, how can we improve our work? How FMCG sector work in India, to
gain relevant knowledge and skills, to improve communication. It was 60 days internship from 10
July to 10 September and my project title was digital enablement of kirana outlets.
During my internship program I use to visit to each outlet of that particular beat with D.S (daily
salesman) beside explaining shopkeepers, the benefits of the app like how they can purchase their
orders online and how they will get to know about all the schemes and track their delivery of order.
Under this project we have given the details of outlets that are registered shops of ITC it include,
UID, Customer id, customer name, phone number, location. we are suppose to visit only those
outlets that are mentioned into the list provided by Area executive. We have to just install the app
in customer’s android phone and register them after receiving OTP with UID and phone numbers,
and customer who has already installed the app, we are suppose to update it. and after successful
installation we are required to educate the customers about how to use the app, how to place order,
where to search the products, how they can track you placed order, cancellation of order placed
and also about various schemes and discount available in each products.
This internship report covers many important aspects which are basically related with the
operations of sales and marketing in FMCG sector. I successfully completed all the assigned duties
and handed them over to the senior supervisor at the end of the internship.
4
GRAPHIC ERA HILL UNIVERSITY BHIMTAL, (NAINITAL)
UTTARAKHAND
SUPERVISOR’S DECLARATION
This is to certify that the internship report on “Expansion of Unnati App in Nainital Market”
(order ITC products online) submitted for the award of Master of Business Administration from
Graphic Era Hill University carried out by Divyanshu Kumar is his original work and is
satisfactorily completed under my supervision.
Material obtained from other sources has been duly acknowledged in the Project Report I wish her
every success in life.
DATE:
SIGNATURE OF GUIDE:
5
GRAPHIC ERA HILL UNIVERSITY BHIMTAL, (NAINITAL)
UTTARAKHAND
STUDENT’S DECLARATION
I hereby declare that the internship work entitled “The evolution of mobile apps for FMCG
companies and How it’s helping every mom-and-pop retailer to take digital leap” is an original
work done by me under the guidance of Mrs. KAVITA KHATI, School of Management, Graphic
Era Hill University, BHIMTAL. This project work is submitted in the partial fulfillment of the
requirements for the Internship Program and has not been submitted to any other university or
Institute for an award of any degree/diploma.
DIVYANSHU KUMAR
2255034
6
CERTIFICATE OF INTERNSHIP COMPLETION
7
STUDENT AND SUPERVISOR INTERACTION CERTIFICATE
The certificate verifies that student has visited the supervisor and the corrections indicated in the
report are modified and verified by the student through the supervisor. The details of visit, remarks
and modifications are mentioned below:
1.
INTRODUCTION
Signed by:
Mrs. Kavita Khati
(Assistant Professor) School of Management
GEHU (Bhimtal)
8
CONTENT
* Preface 2
* Acknowledgment 3
* Executive Summary 4
* Supervisor Declaration 5
* Student Declaration 6
* Certificate of Completion 7
* Student and Supervisor Interaction Certificate 8
Chapter 1 Introduction
* 1.1 Introduction 12
* 1.2 Industry overview 13-15
* 1.3 About the Organization 16-22
* 1.4 Unnati App Review 23-28
9
Chapter 4 Data Analysis & Interpretation
* 4.1 Data Analysis 42
* 4.2 Analysis and Interpretation 43-52
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CHAPTER 1
(INTRODUCTION)
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1.1 INTRODUCTION
A business’s success without sales or marketing today is improbable. Sales and marketing are
essential components that drive business growth and revenue. Without marketing, there would be
no awareness or demand for products or services, resulting in limited sales opportunities. Similarly,
sales efforts are necessary for the business to convert leads into customers and generate revenue.
During 2 months of internship, I have been allocated the Nainital region and there are more than
300 registered shops of ITC. and during internship I had to work for 6 days in a week from 10 am
to 5pm. It was a field work where I had to visit on an average 15 shops per day with daily
salesperson either on vehicle or by foot. Nainital is a hill station and it has its private Monsoon and
this mostly hindered my internship frequently.
While visiting the shops and persuading the customers to install the application I experienced the
market behavior and addresses the problems of customer in installing the application.
The report covers some of the major functions of Sales and Marketing management- Selling and
promotion. This report has been prepared through extensive discussion with company employees
(Daily salesperson, & Area Executive). sales records and outlets details provided by the asset
management department also helped in preparing the report.
Honest reviews and feedbacks of customers also helped in preparing the report and getting
valuable insights as a conclusion of the report.
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1.2 INDUSTRY OVERVIEW
FMCG
Fast Moving Consumer Goods can be defined as packaged goods that are consumed or sold at
regular and small intervals. They are one of the largest sold products in the market and are specially
manufactured to cater to the general people's daily needs. Nearly everyone on this planet uses
consumer goods, which are consumed regularly; thus, consumers need to buy them frequently.
Due to their short shelf life, they are sold quickly and at low per unit prices. Generally, you will
find sale offers and heavy discounts on FMCG.
FMCG is the fourth largest sector in the Indian economy. It provides employment to around 3
million people accounting for approximately 5% of the total factory Employment in India. It is an
important contributor to India’s GDP growth. Growth in the country’s FMCG sector is being
fuelled by improving scenarios in both demand as well as supply side.
It consists of an extensive range of products such as food and beverages, personal care items,
household products, and more. The FMCG product group is an important contributor to the
economy. The products included in the FMCG group have a quick turnover. The global FMCG
market includes a wide range of durable and non-durable consumer products, which are frequently
purchased.
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Feature of FMCG:
High turnover: Due to the frequent use and short shelf life of FMCG, the industry
turnover rate is high. These goods are produced and manufactured in large quantities and
sold in high volumes. Due to this, FMCG is the best wholesale business option.
The competitive market: The fast-moving consumer goods market is large. Top
leading companies like Coca-Cola, Nestle, and Unilever are key market players. Apart
from manufacturers, there are wholesale and distribution opportunities in FMCG. The
industry is huge in manufacturing, distribution and retail.
Types of FMCG:
There are different types of FMCG, which include:
1. Food and beverages: This includes packaged food items such as snacks, dairy products,
beverages, bakery items and canned foods.
2. Personal care and cosmetics: This includes products such as shampoos, soaps,
toothpaste, skincare and makeup.
3. Household products: This includes products such as cleaning supplies, detergents, air
fresheners and paper products.
4. Healthcare products: This includes products such as over the counter medicines, vitamin
and supplements.
5. Tobacco and Alcohol: This includes products such as cigarettes, beer, vines and sprits.
6. Pet Care: This includes products such as pet food, pet grooming supplies and pet toys.
7. Baby care: this includes products such as diapers, baby food and baby skin care.
8. Confectionary: This includes products such as chocolate, candy and gum.
9. Office and Stationary supplies: This includes products such as pen, pencils, notebooks
and paper.
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Current Market Scenario of FMCG companies in India:
India has a strong FMCG industry with several companies operating in this sector. Some well
known FMCG companies in India are Hindustan Unilever Limited (HUL), ITC Limited, Nestle
India, Britannia industries limited and Godrej Consumer products limited. These companies have
gained a strong presence in their respective products categories.
With a market share of approximately 30%, HUL is the largest FMCG company in India, providing
an extensive range of products that include personal care items, soaps, food products and
detergents. ITC Limited is another major player in the FMCG sector with a varied range of
products that includes personal care items, food Products and cigarettes.
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1.2.1 ABOUT THE ORGANIZATION:
ITC Ltd is one of India’s foremost private sector companies. ITC has a diversified presence in
Cigarette, Hotel, Paperboards, and Specialty paper, packaging, Agribusiness, packaged foods and
confectionery, information technology, branded apparel, personal care, stationery, safety matches
and other FMCG products. While ITC is an outstanding market leader in its traditional businesses
of cigarette, hotels paperboards, packaging and Agri-exports, it is rapidly gaining market share
even in its nascent businesses of packaged food & confectionary, branded apparel, personal care
and stationery.
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India
Ltd. As the company’s ownership progressively Indianised, the name od the company was changed
from Imperial Tobacco company India ltd. To India Tobacco Company ltd. In the year 1970 and
then to I.T.C Ltd. In the year 1974. In recognition of the company’s multi-business portfolio
encompassing a wide range of business. The full stop in the company’s name were removed
effective September 18, 2001. The company now stands rechristened ITC Ltd.
ITC is one of India’s foremost private sector Company with a Gross Revenue of rupee 69,481
crores and Net profit of 18,753.31 crores (as on 31.03.2023). ITC has a diversified presence in
FMCG, Hotels, packaging, paperboards & specialty papers and Agri-business. ITC’s aspirations
to be an exemplar in sustainability practices is manifest in its status as the only company in the
world, of its size and diversity, to be carbon, water and solid waste recycling positive. In addition,
ITC’s businesses and value chains creates sustainable livelihoods for more than 6 million people,
a majority of whom represents the poorest in rural India.
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1.2.2 Organization Vision:
Vision Statement:
Sustain ITC’s position as one of India’s most valuable corporation through worldclass
performance, creating growing value for the Indian economy and the Company’s stakeholders.
ITC is a world-class, global integrator providing continuous improvement, cutting-edge innovation
and quality solutions to our customer and partners with the highest rating for employee
satisfactions. ITC believes that businesses can bring about transformational change to creates a
more sustainable future. To serve larger national priorities, ITC has made societal value creation
the core of its business strategies.
• Trusteeship
• Respect for people
• Excellence
• Innovation
• Nation Orientation
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1.2.5 COMPANY’S PRODUCT PORTFOLIO:
ITC Life Sciences and Technology Life Sciences and Technology Solutions
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ITC PRODUCTS AND BRANDS LIST:
In FMCG, ITC has a strong presence in:
Food:
* Ashirvaad * Sunfeast
* Bingo * Kitchen of India
* Yippee noodles * B natural
* Sunfeast milkshake * Mint-o
* Candyman * Jelimals
* Gumon * Fabelle
* Sun bean * ITC master chef
* Farm land frozen * Sunrise spices
Personal Care:
* EWD Essenza * Dermafique
* Fiama * Vivel
* Engage * Superia
* Nimyle * Nimeasy dishwash gel
* Nimwash * Savlon soap, antiseptic liquid
* Shower to shower * Charmis cream
* Classmate * Paperkraft
* Aim * Mangaldeep
* Homelites
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1.2.6 ITC COMPETITOR AND ANALYSIS:
It is a multinational conglomerate company and thus they face huge competition in the
market. They have competition from all sides, we have shortlisted some of the main
competitors in all these distinct fields that it faces. Let us take a look here.
1. Vast experience
As the company has a long market presence it has developed a strong base. This has allowed the
business to recognize the customer’s needs and expectations to make it financially strong and
competitive ahead of its peers.
2 . The X- Factor
Through the social initiative, ITC’s E-Choupal initiative aimed at making the internet accessible
to Indian farmers and their families in the rural part of the country, thus increasing brand presence
to the business.
3. Big Conglomerate : Over the years, they have become a massive conglomerate providing a
wide range of goods and services in the FMCG market, IT solutions, from Agri-products to food
products. Experience in such a diverse range of products and services has enabled the business to
emerge in the market .
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1.2.7 Sustainability at ITC:
E- Choupal Ecosystem:
• An initiative of ITC limited conceived to tackle the
challenges posed by the unique feature of Indian
agriculture- fragmented farms, weak infrastructure and
the involvement of numerous intermediaries.
• It involves the installation of computers with internet
access in rural areas of India to offer farmers up to date
marketing and agriculture information.
• The farmer carries a sample to kiosks and receives a spot
quote from the Sanchalak. If the farmer accept the quote,
he can transport the produce directly to an ITC collection
center, and can get payment within two hours.
• Raising Agri competencies through knowledge and technology transfer.
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Solid Waste Management Programme:
• Waste generation in India has soared steeply, mainly as a
result of three factors - a large and growing population, rapid
and unplanned urbanization and swiftly rising consumption
levels.
• ITC's Well-being Out of Waste (WOW) initiative promotes
awareness about the importance of source segregation and
recycling, and establishes systems to ensure effective practice.
• It collaborates with local municipalities to train waste workers
and rag-pickers in these concepts and to provide an efficient
collection system that covers virtually all segments:
households, offices, schools, hospitals, commercial establishments etc.
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1.3 Unnati App- (order ITC product online)
ITC Ltd. has developed a digital tool named Unnati App to support its retailers. Unnati is an app
designed exclusively to engage with Retailers. It is a free online self-ordering platform for
Retailers through which they can now order anytime anywhere.
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1.3.1 Benefits of Unnati App:
• This app aids company in maintain selling process hygiene and run smoothly even
when the Daily Salesperson in absent.
• Every organization need to have sound channel strategies involving small retailers, who
has important role to play in catering the need of millions of consumers by making
essential goods available Unnati is one filling gap.
• Unnati is smart app retailer tool with user - friendly interface that enables customers
involvement, retailer self- service, transparency in information, product details and
convenient tracking of orders. App aids retailers through better connectivity. With this
retailers and company can communicate directly, know about the deals offered and
status of their orders. Offering better conversion of leads.
• It leads to contextual enablement, as the retailers can be kept updated on new products,
product information, the latest sales pitch, product positioning, and new features that
can help retailer sell ITC’s product better.
• App aids in better engagement with retailers, through which company can get key
insights of all the information gathered from retailers.
• The company can also look into the performance of retailers, conversion rates, and lead
response times to spot trends make revenue forecasts, and devise opportunities for
improvement.
• Unnati App has aid company capture large market by their retailers going digital and
best cater to their customers during pandemic.
• The pandemic has put e-com at forefront of retail business. The industry has chosen to
go virtual for reaching their customers despite the distribution challenges during
lockdown. Considering the needs of the trade channels, ITC came up with Unnati app
for driving sales of the company, but also helping retailer go digitized proving
immensely useful for them.
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Benefits to Customers (Retailers, Wholesaler, Stockists)
Customers can browse through a vast range of Products & see latest schemes & offers.
It Save the hassle of searching & adding Products to the cart. and Customers can Order
your readymade basket of items just through a single click.
Customers can also personalized their Product Baskets.
This Application also provide customer with latest ongoing schemes on orders & estimates
invoice value.
Unnati app suggest orders based on customers order history.
With the help of Unnati app customers can search any product through the smart search
option based on name, price & even grammage of the product.
Unnati app provide ease to retailers and wholesalers to order anytime & from anywhere.
Unnati app also notified automatically on order status update.
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1.3.3 Challenges of Unnati App:
Lack of Trust: One of the foremost challenge is that the retailers may have lack of trust for
the app, in terms of product availability and delivery of the product.
Low level of awareness: Sometimes shopkeepers are interested in placing orders through
salesman, they do not have much idea to order from the app. Talking, convincing and updating
shopkeepers from time to time is bit challenging.
Inadequate information: another major challenge was knowing about the availability of
Stock, Unnati app doesn’t shows whether the product is in stock or not, shopkeepers are unable
to see the clear picture of stock availability.
Lack of Interest: sometime customers do not want to come out of their comfort zone due
to lack of interest. so shopkeepers comfort zone was another hurdle in installation of Unnati
app.
Working hour challenge: Installing the application and educating the customers about
the app during the their working hours was in itself a challenge.
Delivery Challenge: the another major challenge was the successful delivery of the order
because all the order are shown to Area Executives and WDs, and rest of the staff couldn’t
get the details of the order and it uses to happen quite often that the sales person use to get his
order deducted on the system and unable to view the order that came from the app, therefore
it resulting in not delivered.
[Link] weak relation: sometime poor relationship of Wholesale dealer with Retailers was
another reason that become obstacle in installation of Unnati app.
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1.3.4 Competition:
'Unnati', the digitally powered eB2B platform, has been covered nearly 4.8 lakh outlets and it
facilitating sharp and direct engagement with retailers, superior analytics, personalized
recommendations of hyperlocal baskets based on consumer purchase insights, and deeper brand
engagement.
UNNATI App reduce the dependency on daily salesman, if in any case they are absent. ITC’s
business for that particular day won’t be effecting anymore as the messages will be received by
outlets about the them not coming.
So, they can place orders through app, assuring more transparency. Company can also reduce the
dependency on Salesman as cost cutting and in revert resulting in more profit.
Maximum download of UNNATI will also aid ITC with its aspiration of becoming largest pure
play FMCG firm by 2030 across segment like packaged food, personal care and stationary which
accounts for Rs. 1 lakh Cr. in revenue.
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1.3.6 Photo Gallery of Satisfied Customers:
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CHAPTER 2
(REVIEW OF LITERATURE)
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2.1 Theoretical Framework:
What is Sales?
Sales means selling a product or service in return for money or any other compensation.
basically it is an exchange of goods & services between two parties, buyer and seller.
Acc. to American Marketing Association, Sales Management refers, “the planning, direction
& control of personal selling, activities of a business unit, including recruiting, selecting,
equipping, assigning, routing, supervising, paying & motivating as these tasks apply to the
personal salesforce.”
What is Marketing?
Marketing is a social process by which individual and groups obtain what they need and want
through creating, offering and freely exchanging products and services of a value with others.
“The aim of marketing is to make selling unnecessary.”- Peter Drucker (1973)
Marketing is about ensuring that business can sell as many products as possible in order to
make profit.
“Philip Kotler” “Marketing Management is the analysis, planning, implementation and
control of programs designed to bring out desired exchanges with target audiences for the
purpose of personal and mutual gain. It relies heavily on the adoption and coordination of
product, price, place and promotion for achieving responses.” It is the performance of
managerial function like, Planning, execution, coordination and control of function like
marketing research, product planning and development, pricing, audit, selling and distribution
with the view of satisfy customers.
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2.1.2 Marketing Mix of ITC:
The marketing mix is one of the marketing techniques that are used by companies.
The main focus of the marketing mix are 4Ps, i.e product, price, promotion, and place.
By using this technique businesses can expand their name and products in the market.
ITC has a dynamic portfolio with numerous products in the market which contributes most to
its business.
1. In the food industry: Products offered by ITC includes FMCG i.e (Fast Moving
Consumer Goods) such as biscuits, cakes, noodles, candies, spices, juice, etc.
2. In personal care: ITC also offers personal and hygiene care products such as soaps,
shower gels, perfumes, shampoos, and much more.
3. In the education industry: ITC is also a well-established brand when it comes to
stationery products such as pens, pencils, notebooks, erasers, math instruments, art, pencil
sharpeners, etc
4. Apart, ITC is a market-leading company in cigarettes and cigars, some of its major brands
are India Kings, Classic, Gold Flake, Capstan, Berkely, Bristol, etc. it also manufactures
safety matches and sells them to name them AIM, Homelite, etc. they also have a lifestyle,
infotech & luxury hotels in India.
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Pricing Strategy of ITC:
ITC being a multi-industry company has a variety of products in the market. Therefore, a
different pricing strategy is followed for each product.
Keeping in consideration that India is home to many middle-class families ITC uses a
reasonable pricing policy for consumer products so that by selling products at reasonable rates
the company can generate maximum profit. ITC being a multi-industry company also owns
hotels, for that, it has adopted a premium pricing policy.
For example, the company launched yippee with basic pricing which is affordable, hence it
became an alternative to maggie. This shows how smartly the company has set reasonable
prices to deliver it to a larger segment.
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2.1.3 ITC Marketing Strategy:
A marketing strategy refers to an overall business plan that helps to target the consumers and,
therefore turning them into potential customers of the goods or services. Let’s look further into
the specifics of their strategy.
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The Agri-Business segment accounts for about 21% of total revenue and includes the sales
of agri-commodities such as wheat, rice, and coffee, while Paperboards, Paper &
Packaging accounts for about 11% of the total revenue, and Hotel business accounts for
the rest 2%.
3. Large market capitalization: ITC is one of India’s leading private sector companies with
a market capitalization of Rs 4.3 trillion. The corporation is currently considered
the number one stock in the market capitalization category compared to similar companies.
4. Market growth & E-commerce sale: ITC added new markets and outlets in FY 2021-22,
thereby increasing its market coverage by 1.4 times and outlet coverage by 1.1 times over
the previous year. The growth has further strengthened its multi-channel distribution
network in the process.
ITC Weakness:
1. Overreliance on the Tobacco business: ITC is heavily reliant on its cigarette business
for its revenue. Although it has tried to diversify its FMCG segment, cigarettes still
account for around 40% of revenues and about 81% of operating income.
2. Negative public perception: Despite its Public Relation efforts, the tobacco industry
cannot escape the perception that it harms health and the environment. In some
quarters, tobacco has been linked with the deaths of more than 1 million people a year
in India.
4. Business Disputes: ITC Ltd. and Nestle India have been embroiled in a seven-year
dispute over the use of ‘Magic Masala’ and ‘Magical Masala’ catchphrases to promote
their noodles brands.
The Madras High Court in 2020 ruled that the phrases are common English and
Indian words and that neither of the companies can claim a monopoly over them.
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ITC Opportunities:
ITC Threats:
1. Rising production costs: A sharp increase in commodity prices and energy costs, coupled
with persistent global supply chain disruptions in the last few months, have put
considerable pressure on the company’s profit margins.
2. Counterfeit cigarette trade: Tobacco consumption in India from the legal cigarette trade
has been on the decline and currently accounts for only 10%. This has severely impacted
ITC’s cigarette sales.
3. Anti- Tobacco regulation: The cigarette business is under threat from heavy taxation and
regulations, not only in India but across the globe. This has led to the migration from tax-
heavy cigarettes to lightly taxed or tax-evaded tobacco products.
Unfortunately, for ITC, cigarettes are still the company’s mainstay in terms of revenue,
making the company highly vulnerable.
4. Intense competitions: ITC does not only face intense competition from local competitors
but also from international FMCG brands and hotel chains. The intense competition might
hinder ITC from expanding its market share.
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2.2 Literature Review
Patil, Pramod (2016) FMCG product touches every aspects of human life. These products are
frequently consumed by all sections of the society and a considerable portion of their income is
spent on these goods. Apart from this, the sector is one of the important contributors of the Indian
economy. This sector has shown an extraordinary growth over past few years, in fact it has
registered growth during recession period also. The future for FMCG sector is very promising due
to its inherent capacity and favorable changes in the environment. This paper discusses on
overview of the sector, its critical analysis and future prospectus.
Purushothaman, B. & Hemalatha, S. & Divya, K. & R., Pangayar Selvi. (2022). The fastest-
growing segment of the Indian retail market is e-retailing. E-commerce has been a benefit for
customers throughout the pandemic. This study assists in identifying the problems that consumers
encounter when shopping for groceries online at hypermarkets. It also analyses the consumer's
usage patterns when it comes to online grocery shopping. The consumers using the online grocery
shopping were contacted for the study. The result findings from this study are, Trust on online
retailors was the major issue faced by consumer while using online grocery shopping.
Bohra, Devendra Kumar & Nagansur, Sagar & Anute, Nilesh. (2022). OmniScience India's
fourth major industry, Fast-Moving Consumer Goods (FMCG), has an influence on everyone's
everyday lives. When selling quickly changing consumer goods, it can be challenging to forecast
consumer behaviour. There are several reasons why this behaviour is lacking. In today's globalised
environment, consumer wants change over time. For India's economy, fast-moving consumer
goods (FMCG) are crucial. As a result, when it comes to FMCG products, it's vigorous to keep
track of changes in customer buying behaviour. The study focused on these two companies brand
categories, as well as both firms' product portfolios. The research focuses on comparing the brand
awareness between HUL & ITC products. The kind of items that consumers utilise, and their
consumption patterns are also factors in determining their gratification levels
A paper by Joghee, Shanmugan & Kumar, Pradeep. says that FMCG’s are consumer packaged
goods include Consumable items by consumers at regular intervals; these items are frequently used
by the Consumers and are yielding high returns to marketers. This paper also says that preferences
is a Choice between alternatives based on satisfaction and utility they provide, the study of
consumer Preferences not only focuses on how and why the consumers make buying decisions but
also How and why the consumer make the choice of goods they buy and their evaluation of these
Goods and FMCG’s are based on 4 A’s awareness, availability, adoptability and affordability.
36
Vijayadharani, S. & Uma, K. & Rohini, A. & Raju, Vasanthi. (2022). Indian consumers are
more health-conscious, preferring safe, natural, organic, and herbal items, particularly in personal
care and cosmetics. Its popularity and demand are growing every year. Herbs are becoming
increasingly popular in the personal care product segment. The growing demand for herbal
products begun with the launch of Patanjali products in 2016. It also affected the sales of other
conventional products. Other companies and multinational corporations have also started
launching herbal and natural products. The aim of this study is to analyze and understand the
behavioural differences between rural and urban consumers to develop a marketing plan for herbal
products.
Chatterjee, Kajal & Adhikary, Krishnendu & Sen, Srimani & Kar, Samarjit. (2018) Global
fast moving consumer goods (FMCG) industry dealing with distribution and marketing of
consumer products are coming with innovative plans to tacklethe challenges due to intense
competition, brand loyalty, and intensifying expectations of the customers. This study first
examined the socioeconomic factors of FMCG to explore significant variables that affect the
purchase intention of the consumers and find the gap in existing literature. Interpretive Structural
Modeling (ISM) helps in examining relationships among these factors.
37
CHAPTER 3
(RESEARCH METHODOLOGY)
38
3.0 Research Methodology:
Instructing and generating promotional efforts for the ITC Unnati App for retailers.
To Improving retailer retention for ITC Unnati App.
To find out the reason for low receptive rate.
To remarket the ITC Unnati App with latest version and updated features.
Researching and evaluating competitors marketing.
Performing market analysis and research on market gaps.
Lack of Technological upgradation: In Nainital region most of the retailers were not
having android phone and it has been observed that they have lack of technological
advancement.
Climate conditions (Private Monsoon of Nainital): Nainital is the hill station, having
its own private monsoon due to Naini Lake, during July to September it become too
difficult to do field work.
39
Wholesale distribution Point was too close to most of the shops: In Nainital, ITCs
Wholesale Distribution point was centralized at a point. ( center of the Market) at that
point it has become too easy for retailers to contact wholesaler.
3.4.2 Sampling:
This study is based on Non-Probability sampling to draw sample from the assigned area.
The method used under non- probability sampling is Quota Sampling, on the basis of
location. In quota sampling, the number of participants is pre planned under specific
categories. the sample will be taken from the population using quota sampling of non-
random sampling.
Primary data: It is the data gather from first hand observation and experience. this data
has been collected through survey by using questionnaire that will be included into the
report. the data would also be collected from interacting with and observing the customer.
40
Secondary data: The secondary data would be the data of the past and the present sales of
FMCG products. Historic data provided by the company about the sales, market trends and
past performance of the Daily salesman will be used to Presence the interpretation in the
further reports. ITC Quarter reports has been also used to interpret the data.
Survey method include using questionnaire and conducting interview. In this research I
have prepared questionnaire and conducted interview with ITC Retailers and Salesman.
Observation method: observation is based on personal experience and the customer
behavior toward the Salesman.
Quantitative Technique: It focuses on numbers and is all about quantity. Experiments and
Surveys are kinds of quantitative techniques. In this project Survey as the qualitative
technique was used.
41
CHAPTER 4
(DATA ANALYSIS AND
INTERPRETATION)
42
4.1 Data Analysis:
Before diving deep into the analysis process it is necessary to know the entities involved and
their roles in the entire sale process because they all are interlinked to the smooth working of
the salesman and his efficiency to carry out the process and giving sales to the company.
The Entire Nainital district is divided into different W.D (wholesale distribution point) to
cater the demand of the customers. Each and every W.D is supervised by Area xecutive and
managed by W.D (wholesale distributor) and at lower level it consist of T.L (Team leader),
operators and Daily salesman, delivery boy.
Entities with whom D.S interacts and their role, how they affect work directly/ indirectly:
A. W.D (Mr. Ajay) owner Rama Enterprises:
• To manage and constantly increase the productivity thereby sales.
• To give monthly and quarterly estimates of sales after discussing with AE.
• To ensure products has availability , visibility and freshness in the market
43
4.2 Analysis and Interpretation:
The Questionnaire analysis is recorded on the basis of primary data collected from 150
respondents (Retailers).
I have been allotted Target list of 350 outlets in Nainital region which were divided into 10
market beats under 2 Daily salesman.
Question 1. Are you interested in installing and ordering from Unnati App?
The research is conducted in Nainital city and it’s a hilly area, The literacy rate is
average and most of people are not aware of advance technology like using android
phone, online shopping. Nainital is a hill station having its own private climate, it
was very challenging to work in the extreme conditions of rainy season. In Nainital
most of outlets were scattered and some of outlets forms well distanced market like
pichari bazaar, bara bazaar, and Indra market.
Yes 48%
No 37%
44
Question 2. Is it easy to navigate through Unnati app?
Navigation helps users move from page to page in order to create a seamless
shopping experience. The navigation show has product categories and filters that
a user can easily sort and maneuver.
NAVIGATION
No 15% yes no
Yes 85%
Interpretation:
Above data shows that 85% of respondents considered that the Unnati app as easy to
use.
15% of respondents were having problem in navigating with Unnati app.
45
Question 3. Did you ever placed the order & received the product which you ordered?
Availability plays a very crucial role in fulfilling the demands of the consumers on
time by ensuring a hassle-free supply of products. The aim of asking this question
is whether the ITC products are available in the Unnati App or not.
48% 72 respondent
52%
So, it can be concluded that the Unnati app sometime didn’t send the product that has been
searched or sort by the retailer into his cart or has been ordered.
46
Question 4. Do you received the ITC products at your retail store on time
and as per schedule?
The aim of asking this question is to find out the gap between the delivery channel
and of W.D. Timely delivery of products is of utmost importance for fast-moving
consumer goods to ensure that the dealers and retailers have their supplies on time.
Delays in deliveries create a negative impression amongst the customers as they
return empty-handed. Since the competition is very high for FMCGs, a missed
opportunity means ensuring customers for others in the league.
order delivery
Always 20% always
never 40%
most of the time
sometime
never
somtime 23%
40% of respondents says that they never receive order on scheduled time.
20% of respondents says that they receive order in T+2 days as its it scheduled time
for every order.
17% of respondents says they received order in T+3 days, of scheduled time.
23% of respondents says they received order in T+1 days, of scheduled time.
So, it could be concluded that order placed from Unnati app not always deliver the order as per
the scheduled time.
47
Question 5. What is the reason for using Unnati app?
The aim of asking this question is to know what are the perception and intention
of customer regarding the app.
18 out of 72 respondents i.e. 25% of retailers have installed the app due to the
convenience in ordering process, they said Unnati app give them convenience of ordering
product when ever they required, now they don’t have to wait for salesman to come and
take their order.
44 out of 72 respondents i.e. 60% of retailers have installed the app because of availing
offers and discounts on ITC products. Most of the retailers said they get most offers and
discounts in Aashirwaad aata, bingo , and dark fantasy, Tedha medha.
11 out of 72 respondents i.e. 15% of retailers installed the app because of trend of the
market i.e. digitalization and some of the customer were installing the app because of
good relationship with W.D and they were the loyal customers of ITC.
48
Question 6. What is the reason for not using Unnati app?
The reason for asking this question to the retailers is to find out shortcoming and
customers preference toward the app that could help in updating and remarketing
of the app.
no android phone
32%
not interested
47%
36 out of 77 respondents, i.e. 47% of retailers have not installed app because they were
not interested in ordering online, as the W.D point was too close to the retail shops and
they usually place order on call.
25 out of 77 respondents, i.e. 32% of retailers was not having android phone, few of them
were using iphone. and others having normal keypad phones.
21% of retailers were interested in installation, however they were failed to do so, due to
certain reasons, Few retailers were having problem in receiving OTP, and this issue were
also reported to the Area Executive.
many retailer didn’t installed the app due to network issues in Nainital.
some of the retailers were having weak relationship with W.D and this become another
reason of low receptive rate.
49
Question 7. Would you prefer Unnati app over Salesman?
The aim of asking this question was to find out the level of positioning of Unnati
app into customers mind.
Total respondents Yes No May be
150 10 115 25
yes 7%
No 77%
yes no may be
50
Question 8. Do the competitors of ITC run similar schemes on their apps?
Competitor keep a look on schemes of ITC Ltd. having the same kind of schemes
with better product differentiation with similar MRP gives added advantage to a
company. The reason for having this question in the questionnaire is to find the
similarity between the schemes of the competitors for the Unnati app that can be
used to strategize the schemes in the future.
150` 110 30 10
may be 7%
no 20%
yes 73%
73% of respondents says that competitors like HUL run similar schemes in their app i.e.
Shikhar app while this app offer similar discounts and schemes on their products, they
hold minor difference.
20% of respondents says that competitors run different schemes from ITCs products.
51
Question 9. Overall, would you say there is customer satisfaction with regards ITCs
FMCG products?
Total respondents Definitely Yes Not really
150 54% 33% 13%
customer satisfaction
Yes 33%
Definitely 54%
Interpretation:
Out of 150 respondents, 54% of retailers are fully satisfied with ITC products. They are
satisfied with each product length offered by ITC. viz. food, personal care, cigarette,
Stationary and paperboard, and Agarbatti & match.
33% of respondent are satisfied with some specific products, like Ashirwaad atta,
cigarette, bingo, and dark fantasy etc. but not satisfied with body wash, and toilet and
soap etc.
13% of the respondents are not fully satisfied with FMCG products of ITC, due to their
non availability in Nainital reason.
52
Question 10. On the scale of 1-5 how would you rate ITC as a FMCG manufacturer,
keeping in mind the larger giants of HUL & P&G?
ITC Rating
80%
70%
60%
PERCENTAGE
50%
40%
30%
20%
10%
0%
1 2 3 4 5
RATING
Interpretation:
Out of 150 respondents, 73% of retailer have given 4 rating to ITC as a FMCG
manufacturer, because some of ITC products are not available in the market.
20% of respondents, have given 5 rating to ITC as a FMCG manufacturer, due to its
quality products and its reasonable rate.
7% of respondents, have given 3 rating because ITC have not provided them ‘rack stand’
for storage of products. and also many products are not available even after showing in
Unnati application.
So, it can be concluded that ITC products have catered the Nainital market, In Nainital
almost 9 out of 10 shops are retailing ITCs FMCG products.
53
CHAPTER 5
(FINIDINGS, SUGGESTIONS AND
CONCLUSIONS)
54
5.1 FINDINGS:
ITC Unnati app has slightly high receptive rate of 48% than the rejection rate of 37% in
Nainital region.
almost 85% of retailer who have installed the app, finds that unnati app is easy to use and
anyone can easily navigate through the app.
As per the records, 50% of the retailer who have installed the app, have also placed order
and received the same product that has been ordered. while other 50% retailers finds
difficulty in receiving the products due to non-availability.
From the gathered data, it has been find out that, In Nainital region ITC has week delivery
channel and W.D, 40% retailers doesn’t receive their order on time while other receive in
T+2 days.
In Nainital region, 60% of retailers, have installed the app to avail offers and discounts on
each products and other 40 % are using for convenience.
the reason of low receptive rate in Nainital region is that retailers are not interested in
ordering online because W.D point is close to their shops and another reason is that some
of the shopkeepers doesn’t have android phone.
ITC Retailers, prefer to order product for their shop, through D.S only. they still hesitate
in ordering online from Unnati app.
The research shows that, ITCs competitors run similar schemes and offers, and it holds
minor difference in schemes.
In Nainital region, 70% of customers are satisfied with ITC FMCG products with its quality
products and reasonable rates.
With this research we are able to find out that 75% of retailers gave 4 rating to ITC as a
FMCG manufacturer and 9 out of 10 shops hold ITCs products.
55
5.2 SUGGESTION
ITC can develop long-term contractual relationships with retailers to widen access to the
target market.
In hilly areas ITC should focus more on Daily salesman rather than making customer to
purchase online mode.
ITC should run awareness program in order to make its target audience aware about its
products launched and various offers and schemes on products.
company should also focus more on its delivery channel and should resolve the problem
of late delivery.
The Unnati app should be updated on half yearly basis, in order to update the customer
with latest products and their varients available.
Unnati app doesn’t shows whether the product is in stock or not, it doesn’t provide clear
data to the customer. so company should update the app with new feature that shows
availability of stock .
It can also an investment in research and development activities, get valuable customer
data and introduce innovative products/services to set strong differentiation basis.
The company should focus on providing additional staff that online focuses on the delivery
of online orders.
each W.D point should have adequate staff so that each worker should allotted equal task
to perform that helps them in focusing one task with full efficiency and effectiveness
56
5.3 CONCLUSION
This project was a great experience for me in order to study the marketing aspects in the world. It
was a great opportunity for me to express what I have studied.
ITC retailers in Nainital region are less aware about the digitalization and the receptive rate of
Unnati app is average that shows Unnati app has higher growth prospective in Nainital region. But
due to personal and technological factors retailers facing problems in coping up with the
digitalization. ITC has catered the Nainital market 9 out of 10 shops hold ITCs products. however
majority of retailers are in the favour of preferring Salesman over Unnati app for placing orders.
this represent their loyalty for the daily salesman.
On the other hand, The Digitalization of FMCG brands is a great initiative and time effective for
the company as well as retailers, they will save lot of time and cost. Company will be benefited
with direct connection to its retailer. they can provide more schemes and discounts as it could lead
to more transparency with retailers. that ultimately results in more customer retention. and it will
give competitive advantage to the company. So the digitalization of the FMCG brands is effective
for B2B and B2C sales.
ITC is renowned because of its excellence in providing customer satisfaction. They are enjoying
the status of market leadership rather monopoly since their existence. ITC should work to cope
with this competition. Whatever the conditions will be, ITC loyal and permanent customers will
always prefer them. As is not up to the expectations so far, therefore, it has an opportunity to
maintain and improve their quality service and retain their customers. It never compromises on
quality.
We conclude that ITC is better than any other FMCG brand in India at present and it is always
the first preference for its customers because of its vast product portfolio and product quality.
57
QUESTIONNAIRE
Q1. Are you interested in installing and ordering from Unnati app?
YES ☐ No ☐
Yes ☐ No☐
Q3. Did you ever place the order and received the product which you were looking for ?
Yes ☐ No☐
Q4. Do you receive the ITC product at your retail store on time and as per schedule?
Q6. What is the reason for not installing the Unnati app?
YES ☐ No ☐ May be ☐
YES ☐ No ☐ May be ☐
Q9. Overall, would you say there is customer satisfaction with regard ITC’s FMCG products.
YES ☐ Definitely ☐ NO ☐
Q10. On a scale of 1-5, how would you rate ITC as a FMCG manufacturer keeping in mind the
larger giants of HUL and P&G?
58
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Patil, Pramod. (2016). An Overview of Indian FMCG Sector. PARIPEX -
INDIAN JOURNAL OF RESEARCH. 5. 171-173.
Purushothaman, B. & Hemalatha, S. & Divya, K. & R., Pangayar Selvi.
(2022). A Study on Usage Pattern and Issues Faced by Consumers using
Online Grocery Shopping.
Bohra, Devendra Kumar & Nagansur, Sagar & Anute, Nilesh. (2022).
OmniScience: A Multi-disciplinary Journal Comparative Analysis of FMCG
Products with Special Reference to HUL and ITC
Joghee, Shanmugan & Kumar, Pradeep. (2013). Brand Influence on Buying
FMCG Products in UAE: An Empirical Study. 5. 9-16.
Vijayadharani, S. & Uma, K. & Rohini, A. & Raju, Vasanthi. (2022). Brand
Awareness and Brand Preference towards Herbal Personal Care Products of
FMCG Brands.
Chatterjee, Kajal & Adhikary, Krishnendu & Sen, Srimani & Kar, Samarjit.
(2018). Identification and Analysis of Factors Affecting Consumer Behavior
in Fast Moving Consumer Goods Sector.
59
ITC's promotional strategies utilize a variety of platforms to maintain brand diversity and engage consumers. ITC deploys brand ambassadors such as Kartik Aryan and Tara Sutaria for specific sub-brands like "Engage." This reflects personalization in promotional activities tailored to different product lines. Additionally, ITC leverages television, radio, and print media for advertisements, while hoardings amplify brand visibility. Innovative programs like the e-choupal aid in rural engagement, facilitating market access for farmers, expanding both reach and positive brand perception .
ITC Ltd.’s digitalization strategy, notably through initiatives like the Unnati app, innovates its supply chain and consumer interaction. The app enhances order processing and delivery efficiency, particularly in remote areas, providing a seamless customer interface that includes easy navigation and product availability tracking. However, challenges remain as some users struggle with app adoption due to technical barriers . By digitalizing its operations, ITC aims to directly connect with retailers, offering transparency and opening up new avenues for consumer engagement and loyalty development .
To enhance its competitive advantage, ITC Ltd. can focus on expanding digital initiatives to strengthen direct retailer connections while promoting sustainability practices. The Unnati app’s growth suggests potential in increasing retailer interaction and optimizing supply chains through technology . Moreover, prioritizing sustainable practices aligns with global market trends and consumer preferences, potentially augmenting ITC’s brand value and positioning in the increasingly eco-conscious market environment. Continuous innovation and integration of technology in supply and operations will sustain ITC’s market leadership .
ITC enhances its consumer accessibility through a robust and diverse distribution strategy. It operates its own distribution channels, ensuring products reach over 4 million retail stores across India. ITC uses carried & forward agents (CFA's) to distribute goods to wholesale distributors and further to retail stores, even in remote areas . Internationally, ITC products are distributed to countries like North America, Africa, Australia, and the Middle East, showcasing its global reach .
ITC Ltd.'s marketing mix underpins its expansion in the FMCG sector through strategic product, price, place, and promotion approaches. The company offers a broad array of products from biscuits to personal care items, catering to various consumer needs . Price strategies vary across products, with strategies ranging from competitive pricing in consumer segments to premium pricing in hospitality. ITC ensures widespread distribution through an extensive network, facilitating accessibility. Its promotional efforts, adjusting to local and international markets, help in maintaining strong brand presence .
Segmentation, Targeting, and Positioning (STP) are central to ITC Ltd.'s marketing strategy as they allow the company to serve diverse market needs. ITC segments consumers based on demographic and psychographic factors such as age, income, occupation, and lifestyle. The company targets these segments with tailored products, like targeting the youth with products such as "Candyman." ITC positions its diverse offerings by highlighting product quality and value, reinforcing brand identity across multiple consumer demographics and making its products more appealing .
ITC’s market position is strengthened by its diversified business portfolio. The company is India’s largest cigarette producer, commanding over 75% market share in the cigarette segment, and it leads in other sectors such as FMCG, hotels, and agriculture . ITC’s diversification into areas like packaging and paperboards also bolster its financial stability, with each segment contributing to a unique revenue stream. This diversification not only cushions ITC against market volatility but enables it to leverage cross-industry synergies for sustained growth .
ITC's commitment to sustainability is evident in its aspiration to be an exemplar in sustainable practices. It is the only company of its size and diversity in the world that is water, solid waste, and carbon neutral. This dedication to sustainability not only supports environmental stewardship but also enhances ITC’s market positioning by appealing to environmentally conscious consumers and investors, thereby strengthening its brand reputation and competitive edge .
ITC Ltd. employs different pricing strategies for its diverse range of products. For their consumer products, such as FMCG goods, ITC uses a reasonable pricing policy to appeal to middle-class families in India, aiming to generate maximum profit by ensuring affordability . In contrast, for its hotels, ITC uses a premium pricing strategy, demonstrating how it tailors pricing to distinct market segments. This approach shows ITC's adaptability in strategizing according to product type and target demographic .
ITC’s historical evolution from the Imperial Tobacco Company of India Ltd to ITC Ltd reflects strategic shifts aimed at broadening its market and diversifying its business. Initially focused on cigarettes, the company progressively expanded into FMCG, packaged foods, and other sectors, aligning with market trends. The removal of full stops from its name symbolized a move away from its tobacco-focused identity to a multi-business portfolio. This strategic rebranding underscores ITC’s adaptive corporate strategy and commitment to encompassing a range of consumer needs beyond tobacco .