1. ITC – CREATING ENDURING VALUE

2. ITC LTD PROFILE
 History And Evolution of ITC Ltd
 ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited
 The Company was changed from Imperial Tobacco Company of India Limited
to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974
 In recognition of the Company's multi-business portfolio encompassing a wide
range of businesses - Fast Moving Consumer Goods, Hotels, Paperboards &
Specialty Papers, Packaging, Agri-Business and Information Technology
 ITC's Packaging & Printing Business was set up in 1925
 In 1975, the Company launched its Hotels business with the acquisition of a hotel
in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola' (now
renamed My Fortune, Chennai).

3.  In 1979, ITC entered the Paperboards business by promoting
ITC Bhadrachalam Paperboards Limited
 In 1990, leveraging its agri-sourcing competency, ITC set up the
Agri Business Division for export of agri-commodities
 ITC also entered the Lifestyle Retailing business with the Wills
Sport range of international quality relaxed wear for men and
women in 2000
 ITC launched line of premium range of notebooks under brand
Paperkraft in 2002
 In 2002, ITC also entered the confectionery and staples
segments with the launch of the brands mint-o and Candyman
confectionery and Aashirvaad atta (wheat flour)
 In 2003, ITC witnessed the introduction of Sunfeast as the
Company entered the biscuits segment
 ITC entered the fast growing branded snacks category with
Bingo! in 2007
 In 2010, ITC launched Sunfeast Yippee! to enter the Indian
instant noodles market

4. VISION Sustain ITC's position as one of India's most valuable corporation
through world class performance, creating growing value for the Indian economy and
the Company’s stakeholders
MISSION To enhance the wealth generating capability of the
enterprise in a globalizing environment, delivering superior and
sustainable stakeholder value
CORE VALUES ITC's Core Values are aimed at developing a customer-
focused, high-performance organization which creates values for all its stakeholders

5. BUSINESS PORTFOLIO --- ITC LTD
ITC
AGRI BUSINESS,LEAF PAPER BOARD, PAPER
FMCG HOTELS TOBACCO , AGRI
BOARD AND PACKAGING
COMMODITIES
CIGARETTE
PERSONAL CARE
PACKEGED FOOD
PRODUCTS

6. PRODUCT MIX OF ITC LTD (FMCG Sector)

7. TRIPLE BOTTOM LINE PERFORMANCE –
(Turnover and profits as on 17TH July 2012 )
 Gross Income for the year grew by 14.9% to over Rs. 36,000 crores. Profit
before tax increased by 22.4% to over Rs. 8,800 crores while Net Profits grew
by 23.6% to over Rs. 6,100 crores.
 The non-cigarette segment net revenue growing 12-fold from about Rs. 1,360
crores in 1996 to Rs. 16,150 crores today.
 As a result, 57% of net segment revenue of your Company is now from
businesses other than cigarettes
 Your Company is today acknowledged as one of India's most valuable
corporations. Market capitalisation, which stood at Rs. 5,570 crores in
1996, has multiplied over 35 times to touch Rs. 2 lakh crores.
 ITC's traditional businesses have touched a turnover of over Rs. 5,500 crores
in a relatively short span of time.
 The topline from this segment is expected to triple over the next 5 to 7 years
to a level of Rs. 15,000 crores,

9. HOW HAS THE FINANCIAL PERFORMANCE OF
ITC LTD BEEN ?

10. ACHIEVEMENTS
• ITC is the first Indian company and the second in the world to win the
prestigious Development Gateway Award
• ITC is the first Corporate to receive the Annual FICCI Outstanding Vision
Corporate Triple Impact Award in 2007
• ITC was conferred the World Business and Development Award 2012 at
the historic Rio+20 United Nations Summit which concluded recently
• ITC has won the Golden Peacock Awards for 'Corporate Social
Responsibility (Asia)' in 2007
• The Business Today Award for the Best Managed Company in recognition
of its outstanding initiatives in the consumer products segment.
• The only Indian FMCG company to have featured in the Forbes 2000 list.

11. SWOT ANALYSIS
Strength Weakness
 Strong Financial  Dependency on the tobacco
Performance business
 Products Portfolio  Not present in many
 Distribution Network important sectors
 Environmental Friendly  Local Company
 Research & Development
 Socially Responsibility
 Brand Equity
Opportunities Threats
 Leveraging its brand  Competition
equity  Pressure groups and
 Right size at the right time Government Policy
 The unique reach and  General threats
distribution network of E-
choupal:
 Synergies across
businesses and leveraging
domain expertise for
growth in other sectors

12. SUNFEAST- AN OVER VIEW
 Sun"mascot - The brand ambassador reinforcing the positioning of the
brand with an essence “Spread theSmile”
 "Sunfeast" - The umbrella brand name introduced in the Glucose, Marie
and Cream segments
 “Sunfeast” - To be launched nationally in phases in over one million
retail outlets across the country.“
 “Sunfeast" range of biscuits is competitively priced and would include
two new product innovations - Orange flavored Marie and Butterscotch
flavored Cream biscuits
 Product innovation

14. SUNFEAST RANGE OF BISCUITS CONTD…

15. PRICING STRATEGY OF ITC LTD (FOOD DIVISION)
• The pricing of the ITC food division depends upon the Customers’
demand schedule, the cost function and the competitors’ price.
• The pricing of the company is such that it caters to the need of all
income groups of people but special provision has been kept for Low
and middle income group, and their pricing are competitive with
respect to other players like Britannia, Parle and Briskfarm.
• The company follows the Going rate pricing that is the price of the
product depends upon the competitors price. The firm chooses pricing
more or less the same as Market leader.

16. PRICING STRATEGY FOR SUNFEAST
 Sunfeast look at a two prolonged strategy:-
 High margin
(High margins in cream variants)
 High volumes
 (High volumes from the
Marie and Glucose segments)
 Examples
sunfeast glucose (200 gm): 20/-
sunfeast marie light (130gm : 10/-
Sunfeast dream cream (82): 10/-

17. DISTRIBUTION OF FOODS PRODUCTS

18. DISTRIBUTION NETWORK FOR SUNFEAST
 The company used its existing network of convenience stores: the
company’s name for the hole-in-the-wall pan-beedi shops for Sunfeast.
 The company also looked at grocery stores and other retail formats.
 The company says the brand is now available in nearly 1.8 million outlets.
14 manufacturing units
 The company has extended its manufacturing capacity by setting up three
new biscuit plants in UP and West Bengal to focus on supply chain
management strategy to enhance product freshness, market servicing and
margins

19. PROMOTIONAL STRATEGY
 Sunfeast school programme: cover 1000 schools across country, to familiarize
children with sunfeast brand name and sunfeast mascot
 Brand ambassador: shahrukh khan & surya (south actor)
 Official sponsor of WTA tennis championship-sunfeast open
 Launch of Sachin’s Fit Kit, the first product co-created with brand ambassador
 Other activities:-
On buses, print media , hoardings, TV and radio advertisements

20. INDIAN BISCUIT INDUSTRY
• Indian Biscuits Industry came into limelight after 20th century when the
urbanized society called for ready made food products at a tenable cost.
• It is assumed as sick-man's diet in earlier days .
• Bread and biscuits is the two major product of the bakery industry and covers
around 80% of the total bakery market, out of which
• Industry size is about 14500 crore
• biscuit covers up to 70% of the total production
• The organized and unorganized sector of the biscuit
• industry is in the proportion of 65% : 35%

21. INDUSTRY CONSISTS OF
Foreign Niche
Major Players Minor Players Emerging Players
Players
United
Biscuits(Bitain)
Kraft’s Cadbury Danone (French
Surya Biscuits Pvt Oreo food giant)
Parle
Ltd PepsiCo : "protein- Nubisco
Britannia
priyaGold rich “ Aliva Unibic (tied up
ITC
Anmol launched 2009 with Food Bazaar
launched Tasty
Treat

22. MAJOR COMPETITORS
BRITANIA
PARLE PRODUCTS SURYA FOOD AND
INDUSTRIES
PVT LIMITED AGRO LIMITED
LIMITED
Established in 1929
Established in 1896 the largest selling brand Incorporated
90% of Britannia‟s of biscuits in the world 1992Manufacturing and
annual revenue of 70% market share in selling of biscuit under
Rs2,200 crore comes India in the glucose brand “ PRIYAGOLD”
from biscuits biscuit category in octoer1993. Key
KEY PRODUCTS: KEY PRODUCTS: products: Classic
TIGER, GOODDAY, Parle-G, Hide and Cream, Butter
BORBON, 50- Seek, Krack Bite, Bourbon, Marie
50, MARIE Jack, Monaco, Parle Lite, Magic Gold, CNC
GOLD, TIME PASS Marie, Milk , Sanack, zig zag,
Shakti, Parle 20-20.

24. STRATEGIC COMPARISON

25. AS PER FEDERATION OF BISCUIT MANUFACTURERS’ OF
INDIA (FBMI)
• Biscuit Industry Market (in crore)
16000 14500
14000
11206
12000
9830
• PER CAPITA CONSUMPTION IN 10000
KG 8000 6800
6000
10 10 4000
10 4000
9 2000
8 7.5
0
7 2004-06 2007-08 2008-09 2009-10 2010-11
6
5
4
3 2.1 1.9
2
1
0
India USA UK Japan China

26. INDIAN BISCUIT MANUFACTURERS’ ASSOCIATION (IBMA )
• Annual production (in lakh
metric tonnes)
19.6
20 18.25
17.44
18 16.14 16.57
16 14.29
14 12.54
• Annual growth rate of biscuit 12 11
industry 10
8
6
4
16% 15% 15%
14% 14% 2
14% 13%
0
12% 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
10%
10%
8%
6%
4%
2%
0%
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

27. BCG MATRIX: OBJECTIVES
• BCG matrix is a tool to determine the future strategic plan for each
SBU
• SBU can be a company division, a product line or even individual
brands
• Companies have multiple products and businesses under their umbrella
• While preparing the marketing strategy companies need to decide about
adding new products or identify products should no longer be retained.
• So the first step is to identify the various Strategic Business Units
(SBUs) in a company portfolio.

28. BCG Market share/Market Growth Matrix
RELATIVE MARKET SHARE
STARS Question mark
generate Have potential to
become stars or cash
considerable income cows
Strategy: Invest more Strategy: Either invest
fund for future
HIGH
more fund for growth
growth or disinvesting
INDUSTRY GROWTH RATE
Cash flow Dog
Generate strong cash Generate little profits
flow
Strategy: Consider
Strategy: milk withdrawing
profits to finance
LOW
growth of Stars or
Question marks
HIGH LOW

29. ITC BCG MATRIX
HIGH MARKET SHARE
STARS
HIGH MARKET CASH COWS
SHARE HIGH MARKET
& SHARE
HIGH MARKET &
GROWTH LOW MARKET
Hotels, packaging & GROWTH
Paper boards, e-choupal FMCG-Cigarette
HIGH LOW
GROWTH GROWTH
DOGS QUESTION MARKS
LOW MARKET LOW MARKET
SHARE SHARE
& &
LOW MARKET HIGH MARKET
GROWTH GROWTH
ITC infotech FMCG others
LOW MARKET SHARE

30. SUN FEAST BCG MATRIX
HIGH MARKET SHARE
STARS CASH COWS
HIGH MARKET HIGH MARKET
SHARE SHARE
& &
HIGH MARKET LOW MARKET
GROWTH GROWTH
Sunfeast Dark Fantasy Milky Magic ,Marie
Choco Fills and Sun feast Light Original and
snack-foods-Bingo orange, Sunfeast „Dual‟
Dream Cream
HIGH LOW
GROWTH GROWTH
DOGS
QUESTION MARKS
LOW MARKET
SHARE LOW MARKET
SHARE
&
&
LOW MARKET
GROWTH HIGH MARKET
GROWTH
Sun feast Fit-Kit
LOW MARKET SHARE

31. PORTER’S FIVE FORCES

32. PORTER’S FIVE FORCES ANALYSIS
THREATS OF NEW
ENTRANTS
Low entry barriers because of
Heavy competition from major
players
THREAT FROM BUYERS
SUPPLIERS BARGAINING
In the case of major POWER
players bargaining High because of,
power of suppliers is Major players dominate
the Indian Market. Availability of many
very low as they biscuits from
dictate the prices. High competition to low, moderate prices
capture maximum market
share Availability of biscuits
The ingredients are from non organized
basic commodities Unorganized sector cannot sector
such as wheat , sugar compete with major
players in the case of Brand Loyalty makes
etc. buyers more powerful
Advertising
in the case of new
entries
THREAT OF SUBSTITUTES
High Growing packaged industry
and bread industry
Traditional Indian homemade
snacks

33. PORTER’S FIVE FORCES SUN FEAST
Bakery Items, Fast
foods, Ready-to-eat
Premium products
Inflation in sugar & Britannia, Parle are increasing in
wheat prices market
Oreo, PepsiCo

34. STP OF SUNFEAST
Biscuit Segmenting Targeting Positioning
Demographic Children between
Sunfeast the age group 4-14 Natural goodness of wheat
glucose biscuit yrs
Sunfeast orange Education A very differentiate
Housewives
Marie offering
Children between the
Sunfeast Income age group 4-14 yrs Tight and Crispy
marielight
Geographic Children between the
Sunfeast orange Smooth and yummy
age group 4-14 yr
cream cream
Children between the
Sunfeast Age Smooth and
age group 4-14 yr
Butterscotch yummy Cream
Cream
Children between
Sunfeast Lifestyle Smooth and yummy
the age group 4-14
bourbon cream Cream
yr

35. PRODUCT FOCUS
 high quality
 great tasting biscuits
 With Different Segments
 Brand Essence "Spread the Smile"

36. DIVERSIFICATION
Indian rural and agri. market is 70% to other resources in India ,but only 30 %
of GDP is from agriculture sector . ITC realized it that their cigarette business
has a limit future which they wont be able to tap profit and their expansion
plans. So diversification was needed in any case, to build a foothold in Indian
market.
FMCG being the fourth largest sector in the field which is expanding at a
very fast pace and it has huge potential , along with the benefit that it can
be accrued by organizing the existing fragmented market accrued by
market leading to concept of „one stop shop‟.
Further India being one of the largest economies with the benefit of its vast
market ,it attracted ITC to the expand its operation in various areas of
hospitality, FMCG ,Greeting cards Branded Apparels etc.

37. PRICING STRATEGY
There is Two method of Pricing
1. Low Margin
2. Two-Pronged Strategy
Essentially, Parle plays a high volume, low margin game.
But Sunfeast look at a two-pronged strategy, High margins in cream variants
and volumes from the Marie and Glucose segments. For instance, cream biscuits
from both Sunfeast cost Rs10 for 100 grams.
 Parle, however, only charges Rs 5 for its cream variants.
Except for Hide & Seek, all of Parle 'products lie in the price range between Rs 4
and Rs 6for 100 gram packs.

38. BRAND PRAMOTION
In August 2003, a month after Sunfeast launch, the company
undertook a major sampling exercise to promote the product. For two
years then, the brand did all the usual rounds -- riding behind
buses, blocking television spots, booking that corner space in your
favorite newspaper and soon.
The company says the brand is now available in nearly 1.8million outlets, Well
differentiated advertisements, some which showed a complete cream world with
cream rivers, cream mountains and cream trees, were targeted at kids watching
cartoon channels. In April 2005, Sunfeast launched its major campaign. It signed
on Hindi film actor, Shahrukh Khan as its brand ambassador

39. SUGGESTIONS AND RECOMMENDATION
• Sun feast has to give attention towards Advertisement.
• Sun feast has to maintain its status by providing more and more
facilities.
• Sun feast has to develop more variety of biscuit so that the customer
could not return in case of lack of choice.
• The company should also give emphasis on other gift scheme

40. SWARUPANANDA DEOGHARIA 36
KRISHNAKUMAR MAURYA 27
ABHIJIT SHARMA 21