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ITC - Marketing Management
1. Presentation – Marketing
Management
EMBA – Semester I (Batch 2011 – 14)
Presented by
Shubh, Mahesh, Pushkar, Prabodh, Vikas,
Mohammad Ali, Sai Prashanth, Vasanth, Vishnu
3/13/2014 1Group 3
Enduring Value
2. List of Participants
3/13/2014Group 3 2
Name Roll Number
Shubh 230-41
Mahesh 230-20
Pushkar 230-30
Vasantha Kumar 230-50
Sai Prashanth 230-37
Prabodh 230-27
Mohammad Ali 230-40
Vishnu 230-48
Vikas 230-52
3. 3/13/2014Group 3 3
Brands & Products
Scope of the presentation
ITC Ltd Company profile
Analysis for ITC
Introduction
4
1
2
3
5
Sales & Marketing growth6
Agenda
Promotions, Brand Ambassadors, Competition7
Conclusion, Appendix8
4. Our Understanding and
Scope
India Market scenario
• World‟s Youngest nation - median age of 29
years
• Growing Urbanization, increased disposable
income
• Consumer expenditure(1) on Food, Beverage &
tobacco is US $ 286.9 M
• Food
Meat consumption – 6.6 kg/head
Vegetable consumption – 94 kg/head
• Beverage
Tea consumption – 0.7 kg/head
Soft drinks, sales volume – 4,941 million
liters
• India Market Value Forecast(2) prediction is US
$ 17,468.7 M (increase by 29.5% since 2009)
• Indian food sector to have volume of 28,668
Million transactions (increase of 31.4% since
3/13/2014Group 3 4
Year 2005-
2009
India Asia
Foodservice
market
CAGR
growth rate
7.9%
China –
14.3%
Japan –
0.1%
Share of
foodservice
segmentatio
n
18.5
%
China –
38.5%
Japan –
29.8%
NOTE:
(1) - As per Economist Intelligent report for India projected for 2009
(2) - Data Monitor reports, by 2014
Market Mix consideration
• Labor intensive
• Low Margin with low
switching costs
• Supply chain leads and
moderate rivalry
5. ITC Company profile
• ITC started as “Imperial Tobacco Company”. 70% of market share with Gold
Flake.
• 100 year old headquartered in Kolkata. 49% of turnover from Cigarettes business
• Market capitalization of over $33 Billion.
• Employs over 26,000 people
• Presence in over 60 locations across India
• Listed on Forbes 2000 3/13/2014Group 3 5
Hotel Business - ‘ITC
Welcomegroup Hotel Chola’
Cigarettes and
Leaf Tobacco
business
Packaging and
Printing Business
Paperboards
business
Indo-Nepal and British joint
venture - Surya Nepal Private
Limited
1) Acquired Tribeni Tissues
Limited
Paperboards & Specialty Papers
division
Agribusines
s Division
1) Greeting, Gifts, Stationary
2) Lifestyle Retailing business
3) ITC Infotech India Limited
1) Food business
2) Safety matches
Aug 24 1910 20021925 19791975 1985 1990 2000 2005
Fine
Fragrance, bat
h and body
6. About ITC Ltd
3/13/2014Group 3 6
Vision:
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
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
value for all its stakeholders
Trusteeship
Customer Focus
Respect for people
Excellence
Innovation
Nation Orientation
Slogan: Enduring Value
7. Paper board
& Packaging
ITC Ltd Business & Products
HotelsFMCG Agri Business
3/13/2014 7Group 3
• Cigarettes & Cigars
• Foods
• Lifestyle Retailing
• Personal Care
• Education &
Stationery
• Safety Matches
• Agarbattis
• e-Choupal
• Leaf Tobacco,
Spices
• Agri
Commodities
• Paper Boards
• Packing
• Education &
stationery –
Classmate
, paperkraft,
color crew
IT
10. ITC Market Analysis
3/13/2014Group 3 10
• Organized retail Market is the new channels for FMCG.
Scope to improve the retail market
• Revenue from FMCG companies through organized retailing
• Rural India Market is one of the potential growth areas
Effective distribution and supplier network: e-Choupal
Personal and Household market – Less penetration. 95% by
HUL and Dabur
Innovation(packaging, pricing & quality) – To cover lower
pyramid on income group
• Competition from MNC‟s
• Export potential
• Merger and Acquisition – Godrej, Britannia, Lotte India, etc.
11. ITC Strategy – Marketing
3/13/2014Group 3 11
India Savory Market is fragmented – Nuts
& Seeds, popcorn, potato
chips, processed snacks
India savory snacks Market
share: % share by value, 2008
NOTE: Ref Source-Data Monitor
PepsiCo, Inc 6.10%
ITC Limited 1.40%
Haldirams 1.00%
Others 91.50%
• e-Choupal
• Agricultural
commodity
traders
• Direct from
farmers
Effective
SCM
• ITC
packaging
business
• Market reach
• Advertisemen
t strategy
• Health focus
Leverage
&
Innovatio
n
• Market
share -
oligopoly
• Strong CSR,
governance
mandates
• Commodity
Hedging
Differentia
tion
12. Strategies
• When compared to Maggi (Nestle), it is round shaped
• Longer noodles after cooking because of round shape
• Non sticky even after losing heat.
• 16 variants for more penetration.
• Hilarious approach through commercials.
No Confusion, Great Combination!
• Different shape (Mad Angles - Triangle)
• Easily recallable & recognisable names.
Tedhe Medhe, Live Wires
• No Brand Ambassador
• Features naughty boy & cartoon boy as central characters.
• Irresistible tagline " Kuch Bhi Karega for Candyman "
• Milk Shake candies with fruit flavours
• Candyman Natkhat Mango ad featuring Naughty Boy
•
3/13/2014 12Group 3
14. Brand Ambassadors
Sun feast: Shah Rukh Khan, Suriya
Classmate: Yuvraj Singh, Soha Ali Khan
Wills Lifestyle: Hrithik Roshan
Chocolaty candy “Maha Choco”: MS
Dhoni
Fiama Di Wills: Deepika Padukone
Product Promotions
3/13/2014 14Group 3
15. SWOT Analysis
3/13/2014Group 3 15
Strengths
Established Market Reputation
Expanding Market Share
Increased Financial Performance
Focus on New Product
Development
Diversified Business Portfolio
Weaknesses
Limited Liquidity Position
Lack of Geographical Reach
Over Dependence on Cigarettes
Division
Opportunities
Indian Cigarette Market
Indian Hospitality Sector
Favorable Trends in Rural Market
Threats
Highly Competitive Market
Shortage of Skilled Labor
Rising Counterfeit Goods Market
16. PEST Analysis
3/13/2014Group 3 16
Political
Huge burden of VAT
Excise duty raised by 5 % in the
union budget
Ban on communication
Luxury tax in 10 states
Smuggling
100% FDI not allowed
Economical
Bidee : cigarette ratio -10:1
Profit margin is high
Other forms of cheap tobacco
intake
Social
Becoming status symbol
Companions mounted by W.H.O.
Changing attitudes towards
tobacco
May 31 is no tobacco day
Change in life style
Strong Corporate Social
Responsibility(CSR)
Technological
State-of-the-art factories
Development of IQMS
Adapting other concepts like QC,
TQM, 5S, Six sigma
17. Star Question mark
DogCash Cow
FMCG-Cigarettes
FMCG-Foods
ITC Infotech
Agri Business
Hotels
Paperboards & Packaging
Branded Apparels
Packaged foods
ITC Ltd on BCG Matrix
Low
Low
High
High
MARKET SHARE
MARKET
GROWTH
3/13/2014 17Group 3
18. Porters 5 forces
Bargaining
power of
customer
Bargaining
power of
supplier
Threats from
new entrants
Rivalry
Threat from
substitutes
3/13/2014 18Group 3
20. 4P‟s – ITC Strategy
3/13/2014Footer Text 20
Product Strategy
• Bingo positioned
as chips with Indian
twist.
• Offerings under
finger snacks -
khakhra inspired
Mad Angles
• Multiple Pricing
offerings - Rs
5, Rs 10, Rs20
• Varity cream
biscuit - Sunfeast
and Marie
segment, butterscot
ch , orange
flavored Marie
• Leveraging Agri
business – Wheat
biscuits
Pricing
• Competitive
pricing - Similar
priced SKUs.
• Leverage its SCM:
e-Choupal initiative
to ensure
availability of raw
materials
• Leverage printing
& packaging
business: Lead to
high quality , cost
effective and
innovative
packaging
Promotional
Strategy
• Bingo launched in
the time of World
cup to cash in on
the popularity of
snacks among
cricket lovers.
• ITC booked 10-15
spots per channel
per day, 20 spots
on radio stations
supported by 1000s
of hoardings
• Digital media:
Bingo national
Gaming
championship
across 4 cities
• Indian classical
CDs given away
with „Kitchens of
India‟ to target
western market.
Place
• Rural & Urban
Market – e-Choupal
fresh
• Leverage its well
established
Cigarette
distributing network
• Enabling retailers
by providing 4
lakhs racks for
POS
• Lifestyle products
• Alliances:
• Future group - Big
bazaar
• Cafes , local betel
shop
21. ITC Competitors
3/13/2014Group 3 21
HUL Godrej Amul
• India‟s largest
FMCG company
• According to Brand
Equity, HUL has
one of the largest
no of brands in
most trusted brands
list
• Family Business
Model
• Effective
Management of
Godrej Group
namely: Godrej &
Boyce and Godrej
Industries Limited
(FMCG)
• One of the largest
milk producers in
the world
• Effective supply
chain management
system
• Diversified in non-
Tobacco &
operating purely in
FMCG
• Major emphasis on
low-cost products
• Annual sales in
excess of US $ 1.7
billion
• HR practices of the
Godrej group are
considered
amongst best in the
country
• Indigenous R&D
and Technology
Development
• Effective Network of
Cooperatives and
Unions
22. FMCG- Achievements
• Aashirvad Atta is now #1 selling.
• Sunfeast Biscuits is ranked #3.
• Bingo, launched in August 2007 - 16% market share.
• November 2007 - Mint-o overtook its competitor Chlormint
• „Classmate’ brand - Most widely distributed stationary
brand
• Kitchens of India has about 48% market share in India. Its
Ready to Eat food Market is estimated to be Rs.700m
• Safety Matches market at Rs. 1250 crores p.a. for 24 billion
match boxes which is targeted by ITC‟s iKno, Aim, Aim Mega, Aim
Metro
• Successful acquisition of 94% of WIMCO Ltd. i.e. Homelites, Ship
• „Mangaldeep‟ serves the nation‟s 900cr incense sticks market3/13/2014 22Group 3
23. Conclusion
3/13/2014Group 3 23
Better position considering the fragmentation in the market
Huge potential to capture the market share from the current level
Stronger control on SCM – e-Choupal, retail network
Leverage its diversified business portfolio into positive
advantage,
Brand value (Market position)
Effective strategies to mitigate the threats
Inorganic growth
To secure long-term growth by synergizing and blending the
diverse pool of competencies
The Company‟s institutional strengths – deep understanding of
the Indian consumer, strong trademarks, deep and wide
distribution network, agri-sourcing skills, packaging know-how
and cuisine expertise
27. References – India cost foodservice sector
volume forecast: million transactions, 2009-
14
3/13/2014Group 3 27
Source: Datamonitor D A T A M O N I T O R
28. References
3/13/2014Group 3 28
This section was originally published on February 1st 2005
1998a 1999a 2000a 2001a 2002a 2003b
Consumer expenditure
Food, beverages & tobacco (US$ m) 142,498 145,827 136,566 143,992 142,552 168,050
Food, beverages & tobacco (% of
household spending) 52.6 50.0 45.9 46.0 43.4b 43.3
Food
Meat consumption (kg per head) 4.8 4.8 5.0 5.1 5.2 5.4
Milk consumption (liters per head) 64 65 65 63 63 64
Fruit consumption (kg per head) 39 39 38 38 38 41
Vegetable consumption (kg per head) 61 66 66 70 69 76
Confectionery, sales volume (‟000
tonnes) 88 94 101 111 119 127
Beverages
Coffee consumption (liters per head) 0.0 0.0 0.1 0.1 0.1 0.1
Tea consumption (liters per head) 0.6 0.7 0.6 0.7 0.6 0.7
Alcoholic drinks, sales volume (m liters) 81 61 53 49 51 57
Soft drinks, sales volume (m liters) 1,271 1,416 1,591 1,827 2,143 2,484
Tobacco
Cigarettes, sales volume (m units) 95,279 91,702 95,900 86,000 85,400 88,208a
a Actual. b Economist Intelligence Unit estimates.
Source: Economist Intelligence Unit.
29. ITC‟s Distribution channel
COMPANY HUB FACTORY
Retailer
Small wholesale dealer
Wholesale dealer
Carried and forward agent
consumer
3/13/2014 29Group 3
Editor's Notes
1) Buyer power is moderate with many medium and large corporations acting as buyers.2) In this sector, market players include multinationals such as Compass Group and Sodexo, as well asmany smaller and regionalized companies.3) Buyers will include corporate, healthcare, education, and other organizations; many of whom are mediumor large size companies which enhances their buyer power4) Advantage India ( Ref: P.N. Mari Bhat - “Indian demographic scenario 2025 )India is among the world’s youngest nations with a median age of 25 years as compared to 43 years in Japan and 36 years in US. New business channel for FMCG companies is blessed with real estate development, education and corporatesGrowing urbanization : Indian cities expected to add 379 million people to the consumer base for FMCG.
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of 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 - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'.The Company’s beginnings were humble. 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. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. 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-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 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. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. 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. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand “Paperkraft” was launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under brand “Classmate” in 2003. “Classmate” over the years has grown to become India’s largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the “Classmate” brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the premium executive stationery and office consumables segment. Paperkraft entered new categories in the office consumable segment with the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009. 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. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. 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. Today ITC Infotech is one of India’s fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. 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 eight years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing. 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's foray 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.
ITC's Core Values are aimed at developing a customer-focused, high-performance organization which creates value for all its stakeholders:Trusteeship: As professional managers, we are conscious that ITC has been given to us in "trust" by all our stakeholders. We will actualise stakeholder value and interest on a long term sustainable basis.Customer Focus: We are always customer focused and will deliver what the customer needs in terms of value, quality and satisfaction.Respect For People: We are result oriented, setting high performance standards for ourselves as individuals and teams.We will simultaneously respect and value people and uphold humanness and human dignity.We acknowledge that every individual brings different perspectives and capabilities to the team and that a strong team is founded on a variety of perspectives.We want individuals to dream, value differences, create and experiment in pursuit of opportunities and achieve leadership through teamwork.Excellence: We do what is right, do it well and win. We will strive for excellence in whatever we do.Innovation: We will constantly pursue newer and better processes, products, services and management practices.Nation Orientation: We are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals, we will make no compromise in complying with applicable laws and regulations at all levels.
Reference: ibef.org report. Refer to appendixExport PotentialHUL exporting its Skin care products, Oral, Tea, Culinary products, Rice, etc. to EMEA and APACNestleDabur exporting Gaur Gum, Vatika Hair oil to all over the world
The savory snacks market in India is extremely fragmented with independent retailers accounting for almost 70% of the market value2) Players are heavily reliant on the savory snacks market, with the exception of PepsiCo, who have a diverse product range and operations in anumber of other markets.3) Suppliers in the savory snacks market include agricultural commodity traders, and manufacturers of ingredients, packaging, and factory automation equipment4) Health FocusThe trend for healthy snacks option may be of threat to savory snacks market as more and more end-consumers are tend to switch to low fat and saturated sugar substitutes. Overall, there is a strong threat from substitutes5)
Cash cows are units with high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a "mature" market, and every corporation would be thrilled to own as many as possible. They are to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth. Dogs, or more charitably called pets, are units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to maintain the business's market share. Though owning a break-even unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a unit is worthless, not generating cash for the company. They depress a profitable company's return on assets ratio, used by many investors to judge how well a company is being managed. Dogs, it is thought, should be sold off. Question marks (also known as problem child) are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is a large net cash consumption. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share. Stars are units with a high market share in a fast-growing industry. The hope is that stars become the next cash cows. Sustaining the business unit's market leadership may require extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader. When growth slows, stars become cash cows if they have been able to maintain their category leadership, or they move from brief stardom to dogdom
1) Product Strategy:Bingo positioned itself as chips with Indian twist.Offerings under finger snacks include khakhra inspired Mad AnglesOfferings differentiated by providing SKU’s at Rs 5, Rs 10, Rs20Sunfeast introduced variety in cream biscuits and Marie segment butterscotch , orange flavored Marie.Leveraging their production in Wheat, they decided to come up with biscuits made of wheat2) Pricing:Main objective was to compete with players already there. Launched a direct frontal attack by introducing similar priced SKUs.ITC already enjoyed cost advantage over competitors through its e-Choupal initiative. This facilitated timely supply of raw materials.ITC’s printing and packaging business also lead to high quality , cost effective and innovative packaging.3) Promotional Strategy- Bingo launched in the time of World cup to cash in on the popularity of snacks among cricket lovers.- ITC booked 10-15 spots per channel per day, 20 spots on radio stations supported by 1000s of hoardings - Digital media was heavily used. Bingo national Gaming championship across 4 cities with more than 25000 participants.- Indian classical CDs given away with ‘Kitchens of India’ to target western market.4) Distribution StrategyITC already had a well established distributing network through cigarette which was leveraged for all ITC productsCompany distributed 4 lakhs racks across all retailers to display the brand at all points of sale.Crucial alliance with Future group which lead to all future group retail outlets like Big bazaar stocking ITC products.Cafes , local betel shops all being used to distribute Bingo to wider audience
1) Product Strategy:Bingo positioned itself as chips with Indian twist.Offerings under finger snacks include khakhra inspired Mad AnglesOfferings differentiated by providing SKU’s at Rs 5, Rs 10, Rs20Sunfeast introduced variety in cream biscuits and Marie segment butterscotch , orange flavored Marie.Leveraging their production in Wheat, they decided to come up with biscuits made of wheat2) Pricing:Main objective was to compete with players already there. Launched a direct frontal attack by introducing similar priced SKUs.ITC already enjoyed cost advantage over competitors through its e-Choupal initiative. This facilitated timely supply of raw materials.ITC’s printing and packaging business also lead to high quality , cost effective and innovative packaging.3) Promotional Strategy- Bingo launched in the time of World cup to cash in on the popularity of snacks among cricket lovers.- ITC booked 10-15 spots per channel per day, 20 spots on radio stations supported by 1000s of hoardings - Digital media was heavily used. Bingo national Gaming championship across 4 cities with more than 25000 participants.- Indian classical CDs given away with ‘Kitchens of India’ to target western market.4) Distribution StrategyITC already had a well established distributing network through cigarette which was leveraged for all ITC productsCompany distributed 4 lakhs racks across all retailers to display the brand at all points of sale.Crucial alliance with Future group which lead to all future group retail outlets like Big bazaar stocking ITC products.Cafes , local betel shops all being used to distribute Bingo to wider audience
The performance of the market is forecast to decelerate, with an anticipated CAGR of 5.3% for the five year period 2009-2014, which is expected to drive the market to a value of $17.5 billion by the end of 2014. Comparatively, the Chinese and Japanese markets will grow with CAGRs of 8.4% and 0.1% respectively, over the same period, to reach respective values of $41.9 billion and $21.8 billion in 2014.
