PROJECT

ON
ITC Submited By-

Mayank Lalwani
Anshika singh
Ayush Chasta
Amrendra Uphadhay
Deepak Kumar
 COMPANY INFORMATION
SALES AND TURNOVER
IN 2012, ITC PRODUCTS SOLD RS 5,010 CRORE
WORTH OF ITS FLAGSHIP GLUCOSE BISCUIT BRAND AT
RETAIL PRICE
THIS MEANT SALES OF MORE THAN 100 CRORE
PACKETS ACROSS SIZES EVERY MONTH, OR 14,600
CRORE BISCUITS IN THE ENTIRE YEAR, THAT IS, 121
BISCUITS EACH FOR THE 1.2 BILLION INDIANS.
HISTORY
ITC Products company was founded in 1929 in British India. It was owned by
the Chauhan family of Vile ITC, Mumbai. ITC began manufacturing biscuits in
1939. In 1947, when India became independent, the company launched an ad
campaign, showcasing its Gluco biscuits as an Indian alternative to the
British biscuits.
ITC Products(1950s), led by Vijay, Sharad and Raj Chauhan (owner of the
brands sunfeast, Melody, Mango Bite, Poppins, Kismi toffee bar, Monaco and
KrackJack)
ITC (1960s), led by Prakash Chauhan and his daughters Schauna, Alisha
and Nadia
ITC Bisleri (1970s), led by Ramesh Chauhan
VISION
To ensure benefit to society and to the corporation for
sustainable development by imparting measurable values to
all stakeholders in every aspect of our operations. Ensuring
Corporate Social Responsibility is adopted through
principles implementations that contribute to our countrys
social, cultural, and environmental development and help in
developing the awareness on these issues.
MISSION
To work on the popularity, adoption, and implementation of the
concept of Corporate Social Responsibility while adding measurable
values to the community and to our company along with managing
related processes to the advantage of all concerned in a way that
becomes model for other corporations for replication. The Companys
CSR mission is to contribute to the social and economic development
of the community.
SALES TURNOVER OF ITC
IN CR.
14000

12000

10000

8000

6000

4000

2000

0
2008-09 2009-10 2010-11
IN CR.
MARKET SHARE
Market Share in Percentage for glucose biscuits in
2012

4%
9%

9%

78%

Parle-G Bratinia Tiger ITC Sunfeast Others

Sunfeast dark fantacy

SWOT
ANALYSIS

OPPORTUNITY THREATS
 MARKETING MIX

PRODUCT
PRICE
PLACE
PROMOTION
 PRODUCT
ASSOCIATED WITH THE POSITIVE VALUES
MULTITUDE OF PRODUCTS
CONSISTENCY OF PRODUCTS
EARNED AS A RENOWNED BRAND
ENJOYABLE BY ALL AGE GROUPS
 PRICING STRATEGY
MARKET PENETRATION STRATEGY WITH LOW PRICE.
VALUE FOR MONEY POSITIONING
APPEALS TO ALL INCOME GROUPS
PROFIT MARGIN FOR DISTRIBUTORS IS 4% AND FOR
RETAILERS IS 10-12%
 PLACE
EXTENSIVE DISTRIBUTION NETWORK
REACH TO REMOTE RURAL AREAS
VALUE FOR MONEY POSITIONING
1500 WHOLESALERS AND 4.25 LAKH RETAILERS
SETTING UP OF FACTORIES AT STRATEGIC LOCATIONS
ITC PRODUCTS AVAILABILITY
 PROMOTION STRATEGY
ADVERTISED MAINLY THROUGH PRESS MEDIA
SALES PROMOTION
THE DADAJI TV COMMERCIAL IN 1989
USING CELEBRITIES IN AD TO GENERATE FANTASY
PUBLIC RELATIONS
 PORTERS FIVE FORCES MODEL Ample no. of substitute
suppliers available
Raw Materials readily available
Bargaining power of supplier
Most of raw materials are homogeneous
No Monopoly
Suppliers have high competition among themselves In all low bargaining power
Resistance is very low Structure of industry is complex
Easy entry & tough competition with new firms
Threats of New Entrants Huge investment in promoting brands
Existing players have high competitive advantage
High competitive industries requires large investment, small players create less impact
Strong Competition
Intensive
Rivalry Competition Advertisements
Price Wars
Competition to a limited density of population Eg. Britania, ITC, etc
Wide range of choices
Plenty of substitute goods available
Low switching cost
Threat of Substitute Products Sufficient room for new product development
Eg. Traditional Indian home made snacks, bakery products, etc
Multiple brands with low differentiation
New co.'s compete at prices

Switching cost of goods is very low

Economic growth
Interest rates and monetary policies
Per capita disposable income
Economic Inflation Rate
Stages of Business cycle

Income distribution
Demographics of populations
Growth rate, Age distribution
Labor of social mobility
Life cycle, Education, Fashion
Social Living condition
Health consciousness
 CHALLENGES
Increasing prices of basic Raw material like , Sugar, Wheat,
Milk, Milk powder.
This leading to increase in manufacturing cost of the
biscuits.
ITC is very price sensitive product.
Small increase in price (by 50 paise) in past had seen high
decline in sales.
Should ITC increase price of flagship brand ITC ?
 CORPORATE SOCIAL RESPONSIBILITY
MY GREEN PLANET
INSTALLATION OF HAND PUMPS AND CELLING FANS
DISTRIBUTING GIFTS TO STUDENTS
EMPOWERING WOMEN
SELF-HELP GROUPS (MICROFINANCE FOR WOMEN AND FARMERS)
INTEGRATED AGRICULTURE DEVELOPMENT.
INTEGRATED LIVESTOCK DEVELOPMENT.
WATERSHED MANAGEMENT.
 ACHIEVEMENTS
AMONGST THE TOP BEST BRANDS
WINNING AWARDS AT MONDE SELECTION SINCE 1971
111 GOLD, 26 SILVER AND 4 BRONZES
ITC G AS THE PROUDEST PRODUCT
GAINING POPULARITY IN INTERNATIONAL MARKET
WORLDS LARGEST SELLING BISCUIT
 SUGGESTIONS
Even though the ITC is market leader in the segment, others are also trying to capture
the chunk of market share.
Fake brands like Parel G, ITC G tried to extract market share.
How ever only serious competition faced by ITC G is from Britania Tiger biscuit.
Concentrate on rural market
Target young generation, i.e. school going children
Associate with various Government initiative like,
- Primary Education scheme
- National Rural health mission centers
- Mid-day meals being serve in primary school.
 CONCLUSION
LARGEST SELLING BISCUIT BRAND
KNOWS THE TRICK OF TAPPING CONSUMERS
HEALTHY INGREDIENTS
CONSUMED BY ALL AGE GROUPS
GOOD DISTRIBUTION CHANNEL
EXCELLENT MARKETING AND PROMOTIONS STRATEGY