Marketing strategies of ITC ciggarettes

A
SUMMER TRAINING
PROJECT REPORT
ON
MARKETING STRATEGIES
OF
ITC CIGGARETTES
MADE BY
AMAN KHERA

TABLE OF CONTENTS
S. NO. CONTENT PAGE NO.
1 INTRODUCTION TO THE COMPANY
2 INTRODUCTION TO THE TOPIC
3 OBJECTIVES OF THE STUDY
4 RESEARCH METHODOLOGY
5 DATA ANALYSIS
6 FINDINGS
7 SUGGESTIONS
8 CONCLUSION
9 BIBLIOGRAPHY
10 ANNEXURE - QUESTIONNAIRE

INTRODUCTION TO THE COMPANY
ITC Limited is an Indian conglomerate founded on 24 August 1910. The company (formerly
known as Imperial Tobacco Company of India Limited) is currently headed by Yogesh Chander
Deveshwar. The company has its registered office in Kolkata. It employs over 20,000 people at
more than 60 locations across India.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging,
Agri-Business, Packaged Foods & 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 Cigarettes, Hotels, Paperboards,
Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of
Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.
It ranks third in pre-tax profit among India's private sector corporations. ITC is one of India's
foremost private sector companies with a market capitalization of over US $ 22 billion and a
turnover of US $ 6 billion.
ITC is rated 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 ranks
among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance
and published by the Economic Times. ITC also ranks among Asia's 50 best performing
companies compiled by Business Week.

THE MISSION STATEMENT
To enhance the wealth generating capability of the enterprise in a globalizing environment,
delivering superior and sustainable stakeholder value.
THE VISION STATEMENT
Sustain ITC's position as one of India's most valuable corporations through world class
performance, creating growing value for the Indian economy and the Company’s stakeholders.
POSITIONING STATEMENT
"Enduring Value. For the nation. For the Shareholder.
ITC’S CORPORATE STRATEGIES ARE:-
• Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organizational capability with opportunities in domestic and export markets.
• Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
• Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
• Ensure that each of its businesses is world class and internationally competitive.
• Enhance the competitive power of the portfolio through synergies derived by blending
the diverse skills and capabilities’ residing in ITC’s various businesses.
• Create distributed leadership within the organization by nurturing talented and focused
top management teams for each of the businesses.

HISTORY OF ITC
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of
India Limited'. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's
existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot
of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs
310,000. The Company's ownership progressively indianised, and the name of the Company was
changed to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio
encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information
Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle
Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were
removed effective September 18, 2001.
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business. It is today India's most sophisticated packaging house.
In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai
which was rechristened 'ITC-Welcome group Hotel Chola'. Since then ITC's Hotels business has
grown to occupy a position of leadership, with over 70 owned and managed properties spread
across India.
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited, which today has become the market leader in India.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In
August 2002, Surya Tobacco became a subsidiary 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 company and a
major supplier of tissue paper to the cigarette industry. Tribeni Tissues Division was merged
with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers
Division in November 2002.
In 1990, leveraging its agri-sourcing competency ITC set up the Agri Business Division for
export of agri-commodities. ITC's unique and now widely acknowledged e-Choupal initiative
began in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 9 states covering over 4
million farmers. ITC's first rural mall, christened 'Choupal Sagaar' was inaugurated in August
2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operatonal in the 3 states
of Madhya Pradesh, Maharashtra and Uttar Pradesh.
In 2000, ITC launched a line of high quality greeting cards under the brand name 'Expressions'.
In 2002, the product range was enlarged with the introduction of Gift wrappers, Autograph books
and Slam books. In the same year, ITC also launched 'Expressions Matrubhasha', a vernacular
range of greeting cards in eight languages and 'Expressions Paperkraft', a range of premium
stationery products. In 2003, the company rolled out 'Classmate', a range of notebooks in the
school stationery segment.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores
later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening
wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John
Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier
fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and
retailers as the single largest B-2-B platform for the Fashion Design industry. In 2007, the
Company introduced 'Miss Players'- a fashion brand in the popular segment for the young
woman.

In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC
InfoTech India Limited, to more aggressively pursue emerging opportunities in this area.
ITC's foray into the Foods business is an outstanding example of successfully blending multiple
internal competencies to create a new driver of business growth. It began in August 2001 with
the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes.
In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-
o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the
introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast
growing branded snacks category with Bingo! in 2007.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in the Safety Matches initiative. ITC now markets popular
safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.
ITC forayed into the marketing of agarbattis (incense sticks) in 2003 marked the manifestation
of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and
Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur,
Sambrani and Nagchampa.
ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care
products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills
provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and
women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian
consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels
and Soaps in September, October and December 2007 respectively. The Company also launched
the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in
October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of
shampoos in June 2008.

DEPARTMENTS & FUNCTIONS
1. Finance Department- Finance Department is headed by an Assistant Finance Manager
who is in charge of the whole branch. He is assisted by two finance executives and five office
associates. Assistant Finance Manager has to report to both the Branch Manager as well as to
Finance Manager of the District. The Finance Department gets the advance cash through
cheques from the distributors. These are credited against the distributors on the next day
through Real Time Gross Settlement (RTGS).This process is called the Banking operation.

2. Marketing Department-The Marketing Department in ITC is working under four heads
namely: Foods, Personal care Products, Key accounts and Cigarettes. Each of these
departments are headed by an Assistant manager. Under these managers there are Area
Managers who are in charge of a particular region. Area Managers are assisted by Area
Executives who in turn look after the sales trainees. The basic function of Marketing
Department is to ensure superior sales for the products of the company. The Department on a
day-to-day basis collect the orders for the products from different distributors, ensures the
speedy delivery, ensures the superior visibility and availability of the products at stores,
undertakes various promotional activities etc. The number of Area Managers and Area
Executives are variable according to the size and sales of the market.
3. Logistics Department-The Logistics Department of ITC consist of Branch Logistics
Executive and Godown Logistics Executives. Generally in a branch, there is only one
Executive whereas in Godowns there will be two executives. They have to report to the
Regional Logistics Manager in the district office as well as to the Branch Manager. The
Regional Logistics Manager has to report to the District Manager as well as to the Divisional
Logistics Manager. The basic function of the logistics department is to arrange for the trucks,
transport vehicle optimisation, working with the finance department for the conversion of
delivery order into shipment of goods and the shipping out of the goods.
4. HR Department-The Human Resource Department of ITC generally has an HR office
associate at the branch level who takes care of the selection/appointment of the sales executives,
the appraisal and grievance redressal of different employees. The HR executive of each branch
has to report to the Assistant Manager as well as to the HR executive at the District level who has
to report to the HR Manager at the District level.

GROUP COMPANIES
Surya Nepal Private Limited (SNPL): is an Indo-Nepal-UK joint venture, which started
operations in Nepal in 1986. SNPL, a subsidiary of ITC Ltd, India, is the largest private sector
enterprise in Nepal. The balance shares are held by dispersed Nepalese shareholders and British
American Tobacco, UK.
ITC Info-Tech: ITC InfoTech is a fully owned subsidiary of ITC Ltd. Formed in 2000; ITC
InfoTech has today carved a niche for itself in the arena of global IT services and solutions. The
company has established technology Centres of Excellence (CoE) to deepen capabilities and
incubate cutting-edge technical competencies. A robust outsourcing model, comprehensive suite
of differentiated solutions & services and focus on excellence in execution has provided the
company a leadership position in chosen domains. With over 5600 employees, ITC InfoTech
conforms to the highest standards in process quality, with ISO 27001, ISO 9001 and CMMi
Level 3 accreditations.
LANDBASE: Landbase India Limited, a subsidiary of ITC, owns the prestigious Classic Golf
Resort in the outskirts of Delhi. Classic Golf Resort is the first South Asian signature
championship course designed by Jack Nicklaus. Spread over 300 acres at the foothills of the
picturesque Aravalli, it co signature canyon course, a social club and a sports complex which
offers non-golfing sports and recreational activities.
.King Maker Marketing INC: Established in 1994, King Maker Marketing Inc. (KMM) is a leading
supplier of premium quality, value-priced cigarettes and roll-your-own (RYO) tobacco. The
company's product lines, which include the Checkers, Hi-Val and Gold Crest, are made of 100%
American Blend tobaccos to ensure a smooth taste and consistent quality. KMM also provides
market research services relating to the US Tobacco and FMCG markets.
TECHNICO PTY LTD: Technico Pty Limited, Australia ('Technico') is an agri-biotechnology
company specializing in rapid seed potato production. Technico has developed the proprietary
TECHNITUBER® technology, which involves the use of pathogen-tested tissue culture and
processes that enable the rapid multiplication of seed potatoes from pathogen-tested plants in
controlled environment.

Russell credit Limited: Russell Credit Limited is a 100% subsidiary of ITC Limited. Russell is an
Investment Company with activities primarily confined to making long-term investments in areas of
strategic thrust, namely FMCG, Hotels & Tourism, Paper, Paperboards & Packaging Agri Business
and Information Technology. Russell has one wholly owned subsidiary, Greenacre Holdings
Limited, which is engaged in property infrastructure maintenance.
WIMCO Limited: The acquisition of Wimco through Russell Credit Limited, a 100%
subsidiary of ITC Limited on July 1, 2005, aimed to further consolidate the market standing of
ITC's Matches business through synergy benefits of combined portfolio of offerings, improved
servicing of proximal markets and freight optimization. Subsequently Wimco became a direct
subsidiary of ITC effective 29th September, 2011 when ITC acquired the entire shareholding of
Wimco from Russell Credit.
Srinivasa Resorts Limited: Srinivasa Resorts Limited is a subsidiary of ITC Limited. ITC has
68% stake in the Company. The Company owns the "ITC Kakatiya" at Hyderabad, which is
operated by ITC Limited. The Company continues to focus on hygiene, safety and environment.
The Company's Hotel, ITC Kakatiya has received various awards /recognitions, significant
amongst them are the prestigious Leadership in Energy and Environment Design.
Fortune Park Hotels Limited: Fortune Park Hotels Ltd. is a subsidiary of ITC Ltd. Set up in
1995 to cater to the mid-priced market segment in business and leisure destinations; it is today a
professional Hotel Management company, with forty operating hotels and many more in various
stages of completion.
Bay Islands hotels Limited: Bay Islands Hotels Limited is a 100% subsidiary of ITC Limited.
The Company owns the hotel "Fortune Resort Bay Island" at Port Blair which is licensed to ITC
Limited and is operated by Fortune Park Hotels Limited under an Operating & Marketing
Services Agreement.
Gold Flake Corporation Limited: Gold Flake Corporation Limited is wholly owned subsidiary
of ITC Limited. The Company's nature of business is specific to general trading. ITC Filtrona
Limited is a 50% joint venture of Gold Flake Corporation Limited with Cigarette Components
Limited, U.K.

JOINT VENTURE
Maharaja Heritage Resorts Limited: Maharaja Heritage Resorts Limited, where ITC Limited
has an ownership interest of 50% is a joint venture with Jodhana Heritage Resorts Private
Limited. The joint venture company currently operates across India under the "WelcomHeritage"
brand.
ITC Filtrona: ITC Filtrona Ltd is an equal partnership joint venture between ITC Limited and
Filtrona Plc, U.K., the world leader in filter design and development. The company is located in
Bangalore. ITC Filtrona commenced manufacturing of Acetate filter rods in 1994 and pioneered
the full changeover of the Indian market to acetate filters from viscose filters by 2000. The
company has state-of-the-art technology and has the capacity of producing over 13 billion rods
per annum. It enjoys over 60% market share and has played a critical role in import substitution.
ITC Filtrona brings in world-class technology to the Indian market in the form of Acetate filter
rods and Specialty filters.
Operating Licence Agreement. WelcomHotel Vadodara offers plush accommodation and top-of-
the-line Business, Conference and Leisure facilities tailored to the requirement of the discerning
and modern day business traveller.
International Travel House: International Travel House is one of the largest total travel
management companies in India with a presence in 13 cities. It offers a range of services which
include corporate travel, car rental, destination management services, world class holidays,
incentive group travel, conference management and foreign exchange.

COMPANY STAKEHOLDERS
ITC has adopted a multi-pronged, multi stakeholder strategy for an inclusive approach to
building partnerships in sustainable business practices. It has also put in place institutional
mechanisms to facilitate strong partnerships with communities in its programmes such as
Watershed Development, Social Forestry, Animal Husbandry Services and Women‘s
Empowerment. These initiatives augment the natural resource base and create sustainable rural
livelihoods.
SHAREHOLDERS
ITC believes that protection and enhancement of shareholder wealth is one of the Company‘s
key responsibilities. The primary expectations of shareholders remain centred around continued
profitability and growth, effective communications and investor servicing. The Chairman
addresses and provides clarifications to shareholders at least once a year at the Annual General
Meeting in the presence of the Board. The Board encourages open dialogue with all
shareholders, including individuals, corporates and investors.
CUSTOMERS
Enduring and long-term customer relationships form the bedrock of ITC‘s businesses. Significant
efforts are made to gain insights into customers’ needs and aspirations and to seek consumer delight
through ITC‘s high-quality and cost competitive products and services. Most of ITC‘s Businesses
have various mechanisms to capture the needs and expectations of the customer, such as market
surveys, personal contacts/visits, events, customer satisfaction surveys, joint development and
improvement projects, key account management, multi-level interfaces at dealer-customer-end user,
personalised lifestyle privilege programme, etc. Robust Quality Assurance systems, supported by
process innovations, adoption of green technology, lean management, six sigma and TPM, help to
achieve benchmarks in the quality of products.

ITC - FMCG
CIGARETTES
ITC is the market leader in cigarettes in India. It’s highly popular portfolio of brands
includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors,
Capstan, Berkeley, Bristol and Flake.
ITC's cigarettes are produced in its state-of-the-art factories at Bangalore, Munger,
Saharanpur and Kolkata. These factories are known for their high levels of quality,
contemporary technology and work environment.
ITC's has presence in overseas markets as well. In the extremely competitive US market,
ITC offers high-quality, value-priced cigarettes and Roll-your-own solutions. In West
Asia, ITC has become a key player in the GCC markets through growing volumes of its
brands.

FOODS
ITC made its entry into the branded & packaged Foods business in August 2001 with the
launch of the Kitchens of India brand. A more broad-based entry has been made since
June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments.
The Foods business strives to deliver quality food products to the consumer. All products
of ITC's Foods business available in the market today have been crafted based on
consumer insights developed through extensive market research. ITC's state-of-the-art
Product Development facility is located at Bangalore.
The Foods business is represented in 4 categories in the market. These are:
1. Ready To Eat Foods
2. Staples
3. Confectionery
4. Snack Foods

LIFESTYLE RETAILING
ITC’s ventured into Lifestyle Retailing Business Division through its Wills Lifestyle
chain of exclusive specialty stores.
Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic
work wear, Wills Sport relaxed wear, Wills Club life evening wear, fashion
accessories and Essenza Di Wills – an exclusive range of fine fragrances.
With a distinctive presence across segments at the premium end, ITC has also
established John Players as a brand that offers a complete fashion wardrobe to the
male youth of today.

EDUCATION & STATIONARY
ITC made its entry into the stationery business in the year 2002 with its premium range of
notebooks. ITC's Education and Stationery Products are marketed under the brands
"Classmate" and "Paperkraft".
The Classmate range of products is targeted at satisfying education & stationery needs of
students & young adults. The product range includes Notebooks, Math Instruments,
Scholastic Products as well as Writing Instruments.
The Paperkraft range of products aims at satisfying the stationery needs & office
consumables need of office executives & working professional. The continuously
expanding product range under Paperkraft includes Premium Business Paper, Paper
Stationery, Markers & Highlighters.

SAFETY MATCHES
ITC’s range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim
Mega and Aim Metro. With differentiated product features and innovative value
additions, these brands effectively address the needs of different consumer segments. The
Aim brand is the largest selling brand of Safety Matches in India.
AGGARBATTIS
ITC commenced marketing Agarbattis (Incense Sticks) sourced from small-scale and
cottage units in 2003. Mangaldeep Agarbattis are available in a wide range of fragrances
like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth
and Mogra.Durbar Gold is a new offering from Mangaldeep launched in Andhra Pradesh
and has received wide consumer acceptance..

PERSONAL CARE
ITC forayed into the Personal Care business in July 2005. In the short period since its
entry, ITC has already launched an array of brands, each of which offers a unique and
superior value proposition to discerning consumers. Anchored on extensive consumer
research and product development, ITC's personal care portfolio brings world-class
products with clearly differentiated benefits to quality-seeking consumers.
ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di
Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer
response and is being progressively extended nationally.

WELCOME GROUP OF HOTELS
ITC-Welcome group: fastest growing Hospitality chain in India
Over 90 properties across 70 locations
5 Brands –ITC Hotels, Welcome Hotel, My Fortune, Fortune & Welcome
Heritage
15 5-Star Deluxe/ 5-Star Properties with over 3800 rooms
40 Fortune Hotels with over 3000 rooms
40 Welcome Heritage Properties with nearly 1000 rooms
Exclusive tie up with Starwood’s Luxury Collection for 10 Hotels.
First hotel chain in the world to have all its premium luxury hotels certified at
the highest LEED (Leadership in Energy and Environmental Design) Platinum Rating

DISTRIBUTION SYSTEM AT ITC
The process of passing down each passing the product down the chain to the next
organization through Chain of intermediaries, before it finally reaches the consumer or
end-user is known as the 'distribution chain' or the 'channel.'
A number of alternate 'channels' of distribution may be available:
Distributor, who sells to retailers,
Dealer Or wholesaler, who sells to end customers
Advertisement typically used for consumption goods
ITC FOLLOWS:
CHANNEL WISE DISTRIBUTION
Here the total product is divided into different channels like,
Health care product, Personal care products, Home products &
etc.
BEAT WISE DISTRIBUTION
Here total market is divided into different areas where the products are served to all the
outlets exist in that area.

SWOT OF ITC
STRENGTHS
Cigarette market is 22,000 crore and ITC has lion’s share in it.
Strong brand recognition and product portfolio.
Distribution network.
WEAKNESSES
Dependence on tobacco revenues
Negative Connection of Tobacco
Unrelated diversification.

OPPORTUNITIES
Consumption Of personal care products
Rural Market
THREATS
Competition both Domestic & International
Increasing Tax on cigarettes
Regulatory restrictions on cigarettes
Ban on smoking

INTRODUCTION TO THE TOPIC
A marketing strategy is a business's overall game plan for reaching people and turning
them into customers of the product or service that the business provides. The marketing
strategy of a company contains the company’s value proposition, key marketing
messages, information on the target customer and other high-level elements.
The marketing strategy informs the marketing plan, which is a document that lays out the
types and timing of marketing activities. A company’s marketing strategy should have a
longer lifespan than any individual marketing plan as the strategy is where the value
proposition and the key elements of a company’s brand reside. These things ideally do
not shift very much over time.
THE CREATION OF A MARKETING STRATEGY
A marketing strategy grows out of a company’s value proposition. The value proposition
summarizes the competitive advantage a company has in its market. The value
proposition usually provides the key message for all marketing. Walmart, for example, is
a discount retailer with “everyday low prices,” and its business operations and marketing
revolve around that. A company is never creating a marketing strategy from scratch.
They start with the value proposition and distill the key marketing message(s) from that.
Once the value proposition is succinctly stated, the hard work is done. Any marketing
asset, from a print ad design to a social media campaign, can be judged by how well it
communicates the value proposition. To further the efficiency of marketing
efforts, market research can be added to the marketing strategy for the purpose of
identifying untapped audiences or refining the target consumer. Finally, an overall goal
for the marketing strategy can be set, with all the subsequent marketing plans inheriting
the responsibility for delivering on it. These can be concrete, bottom-line goals such as
increasing sales or something less direct like climbing the ranking of trusted providers
within the industry.
Marketing plans are operational documents that get more attention because they are the
day-to-day work that a company does to sell itself to the world. That said, a marketing
plan would be meaningless without a message, a target market and a goal — the core
of every marketing strategy.

IMPORTANCE OF MARKETING STRATEGY
 Marketing strategy provides an organization an edge over it’s competitors.
 Strategy helps in developing goods and services with best profit making potential.
 Marketing strategy helps in discovering the areas affected by organizational
growth and thereby helps in creating an organizational plan to cater to the
customer needs.
 It helps in fixing the right price for organization’s goods and services based on
information collected by market research.
 Strategy ensures effective departmental co-ordination.
 It helps an organization to make optimum utilization of its resources so as to
provide a sales message to it’s target market.
 A marketing strategy helps to fix the advertising budget in advance, and it also
develops a method which determines the scope of the plan, i.e., it determines the
revenue generated by the advertising plan.
GOAL OF MARKETING STRATEGY
The goal of marketing strategy is to set a foundation for a business’s marketing plan. This
is accomplished by having a good understanding of customer wants and needs. A
properly prepared strategy will allow the business to focus on the right mix of service and
products, to allow it to obtain its potential for maximizing profits.
ESSENTIALS OF MARKETING STRATEGIES:
Any marketing strategy to be worth calling as successful or effective must enjoy certain
extras which can be called as essentials or requisites of it.
The basic guidelines, used to call a strategy a successful one used by experts are:
1. It is consistent:
A marketing strategy to be effective is to be consistent with the overall and specific
objectives and policies and other, strategies and tactics of the marketing organisation.
Interval consistency is an essential ingredient of a good strategy as it identifies the areas
where the strategic decisions are to be made imminently or in the long run.

2. It is workable:
Any strategy however laudable and theoretically sound is meaningless unless it is able to
meet the ever changing need of a situation. In this business world contingency is quite
common and the strategy that strikes at the head to contribute to the progresses and
prosperity of marketing organisation.
3. It is suitable:
A strategy is emergent of situations or environment. It is the subservient of changing
environment of business world. It is but natural that any strategy not suiting to .the
environment can impound the marketing organisation in the compounds of danger,
digress and frustration.
4. It is not risky:
Any strategy involves risks as uncertainty is certain; what is important is that the extent
of the risk involved or associated with strategy is reasonably low as compared to its pay-
off or returns. It is because; a high risk very strategy may threaten the survival of the
marketing organisation, let alone its success, if calculations go fit.
5. It is resource based:
A sound strategy is one which is designed in the background of the available resources at
its command. A strategy involves certain amount of risk which can hardly be segregated.
A strategic decision warrants commitment of right amount of resources to the opportunity
and reservation of sufficient resources for an anticipated or “pass through” errors in such
demands of resources.
6. It has a time horizon:
The statement “a stitch in time saves nine” that aptly applies to the concept of strategy. A
sound strategy is time bound to be used at the nick of the hour and tick of the
opportunity. It has an appropriate time horizon. This time this is costlier than money and
its horizon banks on the goals to be achieved. The time should be long enough to permit
the organisation to make adjustments and maintain the consistency of a strategy.

MARKETING STRATEGY USED BY ITC
ITC started an earnest exercise by creating a new brand image and corporate philosophy
by investing in new business categories like personal care, premium apparel, rural
business (e-Choupal) and foods. All along using its famed distribution strengths built
through its successful past businesses like cigarettes, paperboards and packaging, hotels
and agri business, to create synergies across its verticals and help prop up its new
businesses, like personal care and foods. ITC has a well thought-out strategic approach.
Rather than acquiring weaker brands to get into these new segments inorganically, it
created a range of new personal care and branded apparel brands.
The first step in this well-planned strategy was the launch of Wills Lifestyle, the
premium branded apparel business in 2002.
ITC then moved on to take the competition head on in the FMCG domain, through ITC
Foods in August 2001, and personal care business, which is the focal point of this story,
in 2005. It has created good impact with its well etched-out Personal Care Brands.
Under this category, brands like Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel
and the Superia were designed to take care of various sets of consumer segments.
But behind this launch was five years of intensive on ground research of market
conditions and consumer expectations. Over one lakh consumers were surveyed across
the country to test various prototypes. Acceptance benchmark was kept as high as 90
percent for the final products. ITC called this exercise as '3E’ approach —explore,
establish and execute. As an adage goes 'if you have to win a race, you have to clearly
target the No 1', ITC too aimed the No 1 which happened to be the formidable HUL
(which still reigns over 50 percent of the FMCG market). And ITC's target was HUL and
P&G only. ITC roped in its tobacco business veteran Sandeep Kaul to spearhead the
personal care launch; it also sought help from product formulation and branding experts
in Europe and America to formulate the fragrance, aesthetics and packaging.

OBJECTIVES OF THE STUDY
 To understand concept of marketing by means of ITC CIGARETTE demand
analysis.
 To find out marketing strategy used by ITC
 To find out consumer preference according to retailer view.
 To find out major competition of ITC

RESEARCH METHODOLOGY
DATA COLLECTION METHOD
Data are facts that may be obtained from several sources.
Data can be classified as:
 PRIMARY DATA
 SECONDARY DATA
PRIMARY DATA
Primary data is gathered for first time by researcher. If secondary data is found to be
inadequate or unavailable, the researcher goes for primary data.
COLLECTION OF PRIMARY DATA:
Data is to be collected from different wholesale and retail outlet of biscuit namely
 Shop
 Confectionary
 Kirana and general store
SECONDARY DATA
Data borrowed from secondary sources by researcher. It can be internal and external that
is internal record of company or information available from library. Field work plays a
vital role. It is backbone of market research. Data collected is arranged in tables.

DATA ANALYSIS
MATA MANDIR ROAD MARKET
Shop name HOLLYWOOD
RICH
HOLLYWOOD
BALANCE
HOLLYWOOD
MINT
3D FILTER VISIBILITY
Juneza store N Y Y Y Y
Baldev store Y Y Y Y Y
Mohan Y Y N Y Y
Govinda Y Y N Y Y
Mehta store Y Y N Y Y
Satis( gs) Y Y Y Y Y
Geeta store Y Y N Y Y
Batra store N N Y Y Y
Som nath (not taken ) Y Y
Neel kanth Y N N Y Y
Mandeep store Y Y N Y Y
Home need Y Y Y Y Y
Kashmiri pan N N N Y Y
Shyam bhandar Y Y N Y Y
Rajiv pastry Y Y Y Y Y
Malhotra store Y N Y Y Y
Ahuja store Y Y Y Y Y
DMA 893 N N N Y Y
BANSAL
STORE
Y Y Y Y Y

PREM NAGAR
Shop name GOLD
FLAKE
MINT
SUPERSTAR
GOLD
FLAKE
CAPISTON
Kwality store Y Y Y Y
Monika store Y Y N N
New Agarwal N Y Y Y
Mahalakshmi Y N Y Y
Shyam store Y Y Y N
Hem kund store Y Y N Y
Sriwas store Y Y N N
Jain store Y Y Y Y
Jindal store Y N Y Y
Singh motors Y Y Y Y
Jai mata ki Y Y N N
Vanarsi pan N N Y N
Nikki traders Y Y Y Y
Jain pan Y Y Y Y
Sheetal (gs) Y Y Y Y
PC pan centre Y N N Y
Shri sagar store Y Y Y Y
Vishal store Y Y Y Y
Kalak corner Y N Y Y
Satnam store Y Y Y N
Airport service
station
Y Y Y Y

SUDHOWALA
Shop name TOFFICHOO CANDY JELLY ECLAIRS
Ring road service
station
Y Y Y Y
State cafe (not taken)
Tej ram store Y Y Y N
NK mittal Y N Y Y
Bansal store Y Y N N
Gopal store N Y N Y
Agarwal store Y Y Y Y
Bhatia store Y N Y N
Ravi store Y N N N
Hanuman store Y N Y Y
Rajdhani bhujiya
bandar
Y Y N N
Sharma bakery Y N N Y
Harish bakery Y N Y N
Goyal store Y Y Y Y
Goyal (gs) Y Y N N
Shri balaji trader (not taken)
Maddi sweet corner (not taken)
Gupta store Y N Y N
Shiv dept. store Y Y Y Y

GHANTA GHAR
Shop name BOUNCE DARK
FANTASY
YIPEE BINGO
Munna store Y Y Y N
Parmod store Y Y Y N
Vicky store Y Y Y Y
Ajay store (not taken)
Lalu Y N N N
Narayan (gs) Y Y N N
Panday Y N Y N
Sanjay N N Y N
Sai Y N N N
Hukum singh$ sons Y Y Y Y
Sunil Y Y Y N
Satish store Y Y Y Y
Diwan store Y Y N N
Gupta store Y Y Y N
Yadav store Y Y Y N
Agarwal store Y Y Y N
Gupta Y N Y N
Shukla store Y Y N N
Samsher store Y Y N N
Rajesh pan Y N N N
Bhagat bazar Y Y Y N
Birju Y N Y N
Pankaj store Y Y Y N

PATEL NAGAR
Shop name AIM TEEKA HOMELIGHT TEDE MEDE
Gopal ji Y Y N Y
Vishal neibourhood Y Y Y Y
Kesari pichori lal Y Y N N
Jagdish prashad store Y N Y N
Singhal store Y Y Y Y
Ashok store Y Y N Y
Standard quality store Y N N Y
Gauri Shankar and
sons
Y Y Y Y
Singhal papi Y N N N
Maha lakshmi Y Y Y Y
Durga Y Y Y N
Sachin Y Y Y N
Luxmi confectionery Y Y N Y
Modi bakery Y Y Y Y
Ram singh shop Y Y N N
Janaki seth Y Y Y N
Modi pastry Y Y Y Y
Morning store Y Y N N
Rajdhani store Y Y N N

TRANSPORT NAGAR MARKET
Shop name ICEBURST DOUBLEBURST PILOT PLAYERS
HP petroleum Y Y Y Y
Mahesh store Y Y N N
Mohan baba store Y Y N N
Agarwal store Y Y Y N
Jai chand Y N N N
Jassi Y Y N N
Choudhary store Y Y N N
Ram lakhan pan Y N N N
CHAUDHARY Y Y N N
Pankaj Y Y N Y
Amandeep store Y Y Y Y
Pal store Y Y Y Y
Sethi electro store Y Y N N
NFC super store Y Y Y Y
Verma store Y Y Y Y
Ahmad store Y Y N N
Sonu Y Y Y N
Jai mata store Y Y N N
Pawan store Y Y N N
Bobby Y N Y N
MITTAL STORE Y Y N Y
Rohit Y Y N Y
Bitto store Y Y N N
Krishna store Y Y N Y
Pooja store Y N Y N
Jindal store Y Y N N
AK STORE Y Y Y N

1. What are the brands of CIGARETTE mostly sold in your shop?
 ITC 45
 MALBOURO 35
 VST 20
In this it is shown 45% sell ITC and 35% sell MALBORO and 20% VST.
45
0 0
0
35
0
0
20
0
5
10
15
20
25
30
35
40
45
50
ITC MALBOURO VST

2. What is frequency of ITC CIGARETTE you take from distributer?
Inference:
In this chart it shows frequency of consumer takes DAILY.
60%
30%
10%
data
DAILY IN AWEEK
THRICE IN A WEEK
ONCE IN AWEEK

3. What is quality of ITC CIGARETTE you think?
Inference:
In this it shows that 60% think that quality of ITC is good.
20
0 0
0
60
0
0
0
20
0
10
20
30
40
50
60
70
very good good ok

4. Which age group mostly prefer ITC CIGARETTE?
Inference:
As per this survey youth prefer more itc.
YOUTH
ADULT
DATA

5. Have you any complaint about ITC CIGARETTE?
Inference:
In this survey 75% says they have no complaint and 25% have complaint.
25
0
0
75
0
10
20
30
40
50
60
70
80
yes no

FINDINGS
After close study of the present market situation prevailing in the areas assigned to me.
My findings were:
1. It was found that hollywood (especially Hollywood - mint) is most favored brand and
is sold most. Hollywood all three brands are the retailers and consumers prime choice.
2.hollywood –rich , mint , balanced, newly launched products, have very less availability.
3.taste problem in the hollywood packs of cigarette is leading to the decline in sales in
this category.
4.Schemes, Discounts, offers, coupons etc. are not reaching to the customers whereas on
the other hand other companies are doing that.
5.Retailers and even wholesalers are not satisfied with the supply system of itc.
6. Hollywood is not accepted by the general masses due to its dissatisfying taste.
7. 45% Hollywood are sold by sellers.
8. 40% of young working class prefer gold flake.
9. 50% sellers take itc products daily in a week.
10. 75% of retails and whole seller are not having any complaint with Itc .
11. 43% Shopkeepers think that quality of hollywood is very good.

RECOMMENDATIONS & SUGGESTIONS
1. Company should start a program for the loyal retailers and wholesalers to reduce their
complaints by providing timely supply and replacement. This will help in increasing their
sales.
2. The packaging of Hollywood in small pack must be improved for its better sales. The
company should come up with single as people refuse to buy 20 cigarettes.
3. Salesmen should be properly dressed and should have good communication skill to
effectively promote the new products launched, by making sure that the product reaches
each and every retailer and also increase the visibility of the products by arranging the
product clearly on the shelf or rack and show its prominence.
4. To increase the number of stock keeping units {SKU} available in the retailer store.
Each salesman should stress the retailers to keep the maximum SKUs and to maintain
these SKUs throughout. With this, the replacement of the damaged and expired biscuits
should be prompt and without any hassles, so that retailer can be saved from the loss of
the expired and damaged goods.
5. Company should adopt innovative packaging techniques, as they have their own
packaging unit as consumers are highly attracted towards new packaging.
6. The company should take proper action against that the schemes and offers are gulped
by the middlemen, and that why it benefits does not reach customers.

CONCLUSION
From the above comparison it could be inferred that besides ITC is new in the FMCG
sector but still it has managed to reach a level at which the other strong companies are. A
score of 3.34 is a very good score at a point when the old competitors (leaders) are at a
score of 3.8.
Lays has been around for a longer time and has its loyalists. Lays scores on
flavor while Bingo is crunchier. Right now Lays has the upper hand but Bingo
has a good thing going with new and innovative products like 'Mad Angles'.
There is a need to put the image of our product Bingo in the mind of
customers before they come to purchase at shop.
There is need of more focus on the sales of Personal care products.

BIBILIOGRAPHY
 BOOKS:
1. Human Resource Management, Dr. Himanshu Agarwal (2009), HR Management (Thirteenth
Edition)
Publisher-Prentice Hall PTR
2. Human Resource Management by Gary Dessler
 INTERNET:
1. www.google.com
2. www.businessworld.com
3. www.itcportal.com
4. http://www.yourarticlelibrary.com/marketing/top-6-objectives-of-market-promotion/48644
5. https://www.scribd.com/document/36664546/Project-Report-Final-ITC

ANNEXURE - QUESTIONNAIRE
1. What are brands of cigarette mostly sold in your shop?
A. MALBORO
B. ITC
C. TOTAL
2. What is frequency of ITC Cigarette you take from distributer?
A. ONCE IN A WEEK
B. TWICE IN A WEEK
C. THRICE IN A WEEK
3. What is quality of ITC cigarette you think?
A. VERY GOOD
B. GOOD
C. OK

4. Which age group mostly prefer cigarette?
A. YOUTH
B. MIDDLE AGE
C. OLD AGE
5. Have you any complaint about ITC?
A. YES
B. NO

Marketing strategies of ITC ciggarettes

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