ITC COMPANY

BACHELOR OF MANAGEMENT STUDIES

(2013 2014)

PROJECT GUIDE: PROF. GAURANG SAMPAT

SUBMITTED BY

AADIT KHONA

CHIKITSAK SAMUHAS
S.S. & L.S. PATKAR COLLEGE OF ARTS & SCIENCE AND
V.P. VARDE COLLEGE OF COMMERCE & ECONOMICS
S.V ROAD, GOREGAON (WEST), MUMBAI 400 062.

ITC COMPANY

BACHELOR OF MANAGEMENT STUDIES

(2013 2014)

Submitted
In Partial Fulfilments of the Requirements
For the Award of Degree of Bachelor of Management Studies

BY
AADIT KHONA

CHIKITSAK SAMUHAS
S.S. & L.S. PATKAR COLLEGE OF ARTS & SCIENCE AND
V.P. VARDE COLLEGE OF COMMERCE & ECONOMICS
S.V ROAD, GOREGAON (WEST), MUMBAI 400062

CHIKITSAK SAMUHAS
S.S. & L.S. PATKAR COLLEGE OF ARTS & SCIENCE AND
V.P. VARDE COLLEGE OF COMMERCE & ECONOMICS
S.V ROAD, GOREGAON (WEST), MUMBAI 400062

CERTIFICATE

This is to certify that Mr. Aadit Khona of Bachelor of Management Studies

(2013 - 2014) has successfully completed the project on ITC Company Under
the guidance of Prof. Gaurang Sampat.

Course Co-ordinator

Project Guide / Internal Examiner

External Examiner

Principal

DECLARATION

I Mr. AADIT KHONA the student Of Bachelor of Management Studies (2013

- 2014) hereby declare that I have completed the project on ITC COMPANY.
The information submitted is true and original to the best of my Knowledge.

Signature

AADIT KHONA

ACKNOWLEDGEMENT

It has been a great pleasure for me to work on this project. My sincere thanks to Prof.
Gaurang Sampat, my teacher for giving me an opportunity to work on this project whereby I
was given a chance to study the impact of celebrity endorsement as a source of brand
building and on consumers buying behaviour which helped me to increase the span of my
knowledge and developed my thinking on more practical lines. I thank her for her guidance
and support throughout the time when I was working on this project. I express my sincere
thanks to my parents, friends who encouraged me throughout this project.

OBJECTIVE OF THE PROJECT:

1) To understand how ITC has large potential in todays scenario.

2) To understand the various segments in which ITC has emerged.

3) How the ITC Company have emerged rapidly

4) To understand in general the customers behaviour in ITC products and the factors
affecting their decision making.

5) To assess the brand image of ITC.

EXECUTIVE SUMMARY

This topic has been chosen to study the marketing and business strategy of ITC Ltd. There are
certain prospective on which a company sells their products into the market and diversifies their
business. ITC is giving competition to many other companies. As it has diversified its business
starting from a traditional Cigar Company to stationery, hotels, paperboards, FMCG products
etc.

ITC is one of India's foremost private sector companies and ranks among India's 10 Most
Valuable (Company) Brands'. ITC also ranks among Asia's 50 best performing companies
compiled by Business Week.

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.

The project also covers about the various facts and information of other growing industry as
their competitors. It is based on the study on customer attitude and preference towards ITC and
its products. The following project contains in brief the profile of the company, and how the ITC
company has boomed in the past few years. It also covers the changing customer attitude about
ITC products and its brands.

TABLE OF CONTENT

SR.NO

CONTENT

PAGE NO.

Introduction

1 13

Marketing Mix

14 57

SWOT Analysis

58

Corporate Governance

59 60

Ventures

61 62

Competitors

63 75

Research Methodology

Questionnaire

77 78

Data Analysis

79 84

10

Conclusion

85

11

Recommendations

86

12

Bibliography

87

76

INTRODUCTION

ITC Limited or ITC is an Indian public conglomerate company, headquartered in Kolkata, West
Bengal, India. Its diversified business includes four segments: Fast Moving Consumer Goods
(FMCG), Hotels, Paperboards, Paper & Packaging and Agri Business. The company has its
registered office in Kolkata. It started off as the Imperial Tobacco Company, but it is now fully
independent, and was rechristened to India Tobacco Company in 1970 and then to I.T.C.
Limited in 1974.

The company is currently headed by Yogesh Chander Deveshwar. It employs over 29,000
people at more than 60 locations across India. In the last few years ITC expanded its portfolio to
include snacks and personal care products as well. So, over the years the company has become a
truly diversified business house with interests spanning across industries.

ITC Limited completed 100 years on 24 August 2010.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT
services and solutions to leading global customers. ITC Infotech has carved a niche for itself by
addressing customer challenges through innovative IT solutions. ITC's production facilities and
hotels have won numerous national and international awards for quality, productivity, safety and
environment management systems.

The company 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. 2

The Segment Revenues of the new FMCG businesses are growing at a much faster clip than
ITC's traditional businesses touching 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.

COMPANYS PROFILE:

Type

Public

Traded as

BSE: 500875, BSE SENSEX Constituent

Industry

Conglomerate

Predecessor(s)

W.D. & H.O. Wills

Founded

August 24, 1910 (as Imperial Tobacco Company of India)

Founder(s)

Henry Overton Wills

Headquarters

Kolkata, West Bengal, India

Key people

Yogesh Chander Deveshwar, (Chairman)

Products

Tobacco, Hotels, Paperboards & Speciality Papers, Packaging,

Agri-Business, Packaged Foods & Confectionery, IT, Branded
Apparels, Personal Care, Stationery, Safety Matches and Other
FMCG products.

Revenue

INR 45,102 Crores (US$ 8.31 billion) (2012-13)

Employees

25,959 (2013)

Website

www.itcportal.com

COMPANY BRIEF:

ITC is one of India's foremost private sector companies with a market capitalisation of
over US $ 33 billion and a turnover of US $ 7 billion.

Its diversified business includes four segments: Fast Moving Consumer Goods (FMCG),
Hotels, Paperboards, Paper & Packaging and Agri Business.

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.

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.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is

one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last
decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly
enhance its competitiveness by empowering Indian farmers through the power of the
Internet.

HISTORY AND EVOLUTION:

1) 1910- ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of
India Limited.
2) 1925- ITC's Packaging & Printing Business was set up as a strategic backward integration for
ITC's Cigarettes business. It is today India's most sophisticated packaging house.
3) 1974- 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.
4) 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.
5) 1979- ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited, which today has become the market leader in India.
6) 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.
7) 2000- ITC's unique and now widely acknowledged e-Choupal initiative began with soya farmers
in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC forayed into
the Greeting, Gifting and Stationery products business with the launch of Expressions range of
greeting cards. 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 Indias 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,
5

Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel,
Hospitality and Transportation) and Media & Entertainment.
8) 2001- The full stops in the Company's name were removed effective September 18, 2001. The
Company now stands rechristened 'ITC Limited'. 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 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 with the introduction of 'Kitchens of India' ready-to-eat
Indian gourmet dishes.
9) 2002- A line of premium range of notebooks under brand Paperkraft was launched. ITC entered
the confectionery and staples segments with the launch of the brands mint-o
and Candyman confectionery and Aashirvaad atta (wheat flour). 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. The Wills Lifestyle chain of exclusive stores later expanded its range to
include Wills Classic formal wear. ITC also initiated a foray into the popular segment with its men's
wear brand, John Players.
10) 2003- 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 Indias largest notebook brand and has also increased its portfolio to occupy a greater share
of the school bag. 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. It also witnessed the introduction of Sunfeast as the Company
entered the biscuits segment.
11) 2004- 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.

12) 2005- ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body
care products for men and women in July. Inizio, the signature range under Essenza Di Wills
provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women
(Inizio Femme).

13) 2007- ITC's entered the fast growing branded snacks category with Bingo! 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
respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the massmarket segment at select markets in October. It saw the launch of Children Books, Slam Books,
Geometry Boxes, Pens and Pencils under the Classmate brand.
14) 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. The company also launched Vivel De Wills & Vivel range of soaps in February and Vivel
range of shampoos in June.
15) 2009- Paperkraft entered new categories in the office consumable segment with the launch of
Text liners, Permanent Ink Markers and White Board Markers.

CHAIRMAN

ORGANISATIONAL STRUCTURE:

Y.C.
DEVESHWAR

EXECUTIVE
DIRECTORS

NAKUL
ANAND

P.V.
DHOBALE

K.N.
GRANT

NON
EXECUTIVE
DIRECTORS

A. BAIJAL

S. BANERJEE

A.V. GIRIJA
KUMAR

S.H. KHAN

S.B.
MATHUR

D.K
MEHROTRA

H.G.
POWELL

P.B.
RAMANUJAM

ANTHONY
RUYS

BASUDEB
SEN

K. VAIDHYA

B.
VIJAYA

KEY STRENGTH AND STRATEGIES:

Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organisational 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 ITCs various businesses.

Create distributed leadership within the organisation by nurturing talented and focused top
management teams for each of the businesses.

Continuously strengthen and refine Corporate Governance processes and systems to

catalyse the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.

ITC VISION:
Sustain ITC's position as one of Indias most valuable corporations through world class
performance, creating growing value for the Indian economy and the Companys stakeholders.

ITC MISSION:
10

To enhance the wealth generating capability of the enterprise in a globalizing environment,

delivering superior and sustainable stakeholder value.

ITC POSITIONING STATEMENT:

"Enduring value, For the nation, For the shareholders.

11

CONSERVATION OF ENERGY:
1. IT E-waste Policy:IT E-Waste is a subset of E-Waste and covers the following IT equipments

The lifecycle of all IT assets spanning from acquisition to disposal shall be managed in a manner
which conforms to sound environmental norms as detailed in the IT E-Waste guidelines. This
includes:

Preferential dealing with IT vendors having sound E-Waste management processes.

Extending the useful life of IT assets to postpone / minimize generation of E-

Waste. Responsible disposal processes conforming to regulatory requirements and best

practices.

IT E-WASTE MANAGEMENT GUIDELINES:

REGULATORY ENVIRONMENT:-

12

 Different government bodies have published regulatory framework for handling E-waste.
Similarly, different trade and industry bodies are also evolving the best practices to deal
with IT E-Waste.

The appropriate government bodies, e.g., Ministry of Environments & Forests / Central
or State pollution control boards in India, etc. have initiated the process of approving and
authorizing E-Waste Recyclers. CIO Office shall identify authorized Recyclers, publish
a list of such E-Waste Recyclers and enter into appropriate agreements covering all
aspects of the E-Waste disposal. The list of authorized Recyclers and the agreed terms and
conditions will be circulated to the DMMs.

IT E-WASTE MINIMIZATION PROCESS:-

It shall be the endeavor of every user to maximize utilization of all IT assets to their full
productive life. Apart from internal re-use, option to extend use outside ITC through
donation to bonafide philanthropic institutions will also extend the useful life of IT assets.

Only such IT assets which are non-operational and cannot be reused for any other alternate
purpose should be considered as IT E-waste for disposal. The DMM will certify this
position.

2. EHS POLICY:
In particular, it is ITCs EHS Policy

To contribute to sustainable development through the establishment and implementation

of environment standards those are scientifically tested and meet the requirement of
relevant laws, regulations and codes of practice.
13

To take account of environment, occupational health and safety in planning and decisionmaking.

To provide appropriate training and disseminate information to enable all employees to

accept individual responsibility for Environment, Health and Safety, implement best
practices, and work in partnership to create a culture of continuous improvement

To provide and maintain facilities, equipment, operations and working conditions which
are safe for employees, visitors and contractors at the Companys premises.

To ensure safe handling, storage, use and disposal of all substances and materials those
are classified as hazardous to health and environment.

To reduce waste, conserve energy, and promote recycling of materials wherever possible.

AWARDS:

ITC features on the Forbes Global 2000 rankings for 2007 at position 1256.

ITC is the only Indian FMCG company that features on the Forbes Global 2000 rankings
for 2009 at position 987.

ITC also featured on the Forbes World's Most reputable Companies List at position 95.

ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate
Triple Impact Award in 2007 for its invaluable contribution to the triple bottom line
benchmarks of building economic, social and natural capital for the nation.

14

ITC Hotel Royal Gardenia, Bengaluru is the first Indian Hotel and world's largest, to get
the LEED Platinum rating - the highest green building certification globally.

The Corporate Social Responsibility Crown Award for Water Practices from UNESCO
and Water Digest for its distinguished work carried out in the water sector in India. ITC
also received the National Award for Excellence in Water Management 2007 in the
'beyond the fence' category from the CII Sohrabji Godrej Green Business Centre for its
leadership role in implementing water and watershed management practices.

ITC Filtrona is the first cigarette filter company in the world to obtain ISO 14001.

The Stockholm Challenge 2006 for the e-Choupal initiative. This award is for using
Information Technology for the economic development of rural communities.

ITC Green Centre in Gurgaon has recently been re-certified as the world's highest rated
Platinum certified green building by the US Green Building Council

15

MARKETING MIX

I.

PRODUCTS:

1. FMCG PRODUCTS:-

A. Cigarettes and Cigars

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands,
ITC has a leadership position in every segment of the market. ITCs highly popular
portfolio of brands includes Insignia, India Kings, Lucky Strike, Classic, Gold Flake,
Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol, Flake, Silk Cut, Duke & Royal.

The Company has been able to consolidate its leadership position with single minded
focus on continuous value creation for consumers through significant investments in
creating & bringing to market innovative product designs, maintaining consistent &
superior quality, state-of-the-art manufacturing technology, & superior marketing and
distribution.

ITC's pursuit of international competitiveness is reflected in its initiatives in overseas

markets. In the extremely competitive US market, ITC offers high- quality, value-priced
cigarettes and Roll-your-own solutions.

ITC's cigarettes are manufactured in state-of-the-art factories at Bengaluru, Munger,

Saharanpur, Kolkata and Pune, with cutting-edge technology & excellent work practices
benchmarked to the best globally. An efficient supply-chain & distribution network
reaches India's popular brands across the length & breadth of the country.

16

B. 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.

ITC has stood for quality products for over 100 years to the Indian consumer and several
of its brands are today internationally benchmarked for quality.

All products of ITC's Foods business available in the market today have been crafted
based on consumer insights developed through extensive market research.

Apart from the current portfolio of products, several new and innovative products are
under development in ITC's state-of-the-art Product Development facility located at
Bengaluru.

ITC has over the last 100 years established a very close business relationship with the
farming community in India and is currently in the process of enhancing the Indian
farmer's ability to link to global markets, through the e-Choupal initiative, and produce
the quality demanded by its customers
17

The Foods business is today represented in 4 categories in the market. These are:

Ready To Eat Foods

Staples

Confectionery

Snack Foods

In order to assure consumers of the highest standards of food safety and hygiene, ITC is engaged
in assisting outsourced manufacturers in implementing world-class hygiene standards through
HACCP certification. The unwavering commitment to internationally benchmarked quality
standards enabled ITC to rapidly gain market standing in all its 6 brands:

18

a) Kitchen Of India-

Kitchens of India products encompass ancient recipes of India safeguarded and

passed down by generations of royal cooks of the Maharajas, capturing the elements
of a time when every meal was treated as a grand celebration.

The Kitchens of India delectable treats are crafted with 100% natural ingredients and
free of any preservatives. Kitchens of India meals are packaged in keep fresh
packs, so that you can enjoy in an instant, what has taken centuries to perfect

Kitchens of India has a strong presence in both the Indian and overseas markets. From
exotic vegetarian and non-vegetarian dishes, to authentic Biryanis and delicious
halwas, Kitchens of India assures a complete dining experience.

Kitchen of Indias Ready-To-Dine Range

Veg Curries

19

Non-Veg Curries

Biryanis

Halwas

Mix Masalas

20

Self Stable Range

The range captures the best of Indian Cuisine from all corners of the country. These dishes are
recreated by ITC Master Chefs following the traditional methods of preparations and made
available to you in convenient shelf stable Ready-to-Eat packs.

These creations are 100% natural and contain no preservatives. Preserved without using any
chemicals, Kitchens of India combines the science of pasteurization with traditional preservation
techniques using oil and salt. Kitchens of India present the world with a range that has been
passed through the most stringent quality checks to ensure the safest of products. The Kitchens
of India range has the necessary FDA registrations.

Connoisseurs of Indian food in the US, UK, Switzerland, Bhutan, Bangladesh, Hong Kong,
Tanzania, Canada and Australia now have the opportunity to taste these delicious recipes.
Ready to Eat Dishes
1. Biryanis

2. Curry Paste

21

Frozen range

Using Quick Freeze technology, Kitchens of India is able to trap the authentic essence, aroma
and flavour of every dish, only to be relished when youre ready to experience it. The Kitchens of
India Frozen range includes a complete range of traditional Indian Meals, Snacks and Breads that
you can serve anytime, anywhere.

b) Aashirwaad-

22

ITC entered the branded Atta market with the launch of Aashirvaad Atta in Jaipur and
Chandigarh on 26th May 2002. The product is now available all over India. Aashirvaad atta has
further built on its leadership position among the National Branded Players with a market share of
56%.

ITC uses the sourcing strength of its e-Choupals to buy wheat directly from the farmers to
deliver happiness to the Indian consumer Khushiyaan Chun Chun ke (Happiness
handpicked). Premium quality atta, made from 100% MP 'sharbati' wheat is also available as
Aashirvaad Select Atta.

The wheat for Aashirvaad Superior MP Wheat Atta comes from the plush, fertile soil of Madhya
Pradesh and then blended using the traditional 'chakki-grinding' method to give the superior,
discerning taste.

Multigrains
The latest offering is Aashirvaad Atta with Multigrains. This new and improved variant is
designed to provide nourishment for people of all ages and is an integrated mix of six different
grains - wheat, soya, channa, oat, maize & psyllium husk - which gives a better and healthier
option for the consumers The extra fibre makes food easier to digest and low content of
saturated fat keeps the heart smiling all through the day. This product is available in select cities.

23

Aashirvaad Salt
ITC launched branded packaged salt under the brand name Aashirvaad Salt on 26th March,
2003. The product is available in grocery stores around the country.

Spices
ITC forayed into the branded spices market with the launch of Aashirvaad Spices in May 2005.
The offering currently consists of Chilli, Turmeric and Coriander powder in SKUs of 50g, 100g,
200g and 500g each. Aashirvaad Spices, operating in selected markets of south and east, have
spread to a large consumer base and have emerged as a major player in basic
spices in most regional markets.

24

Instant Mix
Convenience and authentic taste now has a new name with the Aashirvaad Instant Mix range. This
range, launched in March '06, now includes Gulab Jamun, Rava Idli, Rice Idli and Rice Dosa.

Aashirvaad Ready Meals

Aashirvaad Ready Meals - a range of ten of the most popular Indian dishes in a ready-to-eat
format. These are 100% natural and have zero preservatives.

25

c) Sunfeast-

Snack Food:

In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie and
Cream Biscuits. Sunfeast's brand essence connotes happiness, contentment, satisfaction and
pleasure. In a span of 9 years, Sunfeast has well-established presence in almost all categories of
biscuits and is also a key player in the pasta and instant noodles segments.

Sunfeast Milky Magic

26

Sunfeast Marie Light

It comes in 3 flavours
-

Sunfeast Marie Light Original

Sunfeast Marie Light Orange

Sunfeast Marie Light Oats

Sunfeast Dark Fantasy

Sunfeast Dark Fantasy Choco Fills

27

Sunfeast Dark Fantasy Choco Fills is the latest and the most premium offering from the
portfolio of Sunfeast.

Sunfeast Glucose

Sunfeast Glucose biscuits are ideal not just for kids but for adults too.

Sunfeast Dream Cream

'Dream Cream' split cream variants are available in 'Choco-Vanilla', 'Strawberry-Vanilla' and
Butterscotch flavours.

Bourbon

28

Orange Cream

Butterscotch Cream

Sunfeast Snacky
It is available in two variants classic salted and chilly flakes
29

Sunfeast Sweet n Salt

These thin and crisp biscuits come with a distinctive sundry taste, that of salt and sweetness

Sunfeast Nice

Sunfeast Special

30

Sunfeast Pasta

The Sunfeast product portfolio was expanded in early 2005 to include healthy snacking options
as well. After the tremendous success of the 4 initial flavours, (Masala, Tomato Cheese, Cheese
and Sour Cream), the instant Pasta range has been extended with three new exciting flavours Pizza style, Chicken and Tangy Tomato.

31

Sunfeast Yippie

The portfolio has been further expanded with Sunfeast Yippee! instant noodles. At present,
Sunfeast Yippie is available in three lip smacking variants Chinese Masala, Classic Masala
and Magic Masala.

d) Mint-O

ITC currently has two brands in the confectionery segment - 'Mint-o' and 'Candyman'. 'Mint-o'
was acquired by ITC from Candico in March 2002. ITC re-launched the compressed mint
offering, across all major markets in India, with new and improved product and packaging.
ITC launched 'mint-o Fresh' in October 2004.

The latest offering in the adult mint confectionery segment is mint-o GOL, in the 'Chews' subsegment.

The latest punch of mint from Mint-o - Mint-o Strong - Power Mint! has been launched to
strengthen the cough lozenges portfolio of ITC.

32

e) Candyman-

ITC launched the Candyman range of confectioneries in August 2002. Led by the 'Candyman
Fruitee Fun' range of assorted fruit flavours (Wild Banana, Pineapple Punch, Orange Josh
and Mango Delite), the 'Candyman' portfolio now includes deposited candy products like
Candyman Butterscotch Licks and Candyman The coffee toffee segment also saw the
successful launch of Candyman Cofitino in November 2005.

The brand was further strengthened with the launch of Candyman Natkhat Mango and
Candyman Maha Mango. In line with the strategy to provide innovative flavours and formats
to consumers, Candyman Mango Licks was launched in June 2007, Candyman Lacto Crme
Centre in June 2008 and Candyman Toffichoo Strawberry in early 2009.

33

f) Bingo

Bingo! was launched in March 2007 with a wide range of exciting packaged salted snacks. The
range includes multiple flavour variants of Potato Chips & Finger Snacks.

These flavours range from traditional favourites like Salted to innovative ones such as Red
Chilli & Lime Pickle and later new variants were introduced as Bingo Mad Angles.

C. Lifestyle Retailing-

34

ITC's Lifestyle Retailing Business Division has established a nationwide retailing presence
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
Clublife evening wear, fashion accessories and Essenza Di Wills - an exclusive range of fine
fragrances and bath & body care products and Fiama Di Wills - a range of premium shampoos
and shower gels. Wills Lifestyle has also introduced Wills Signature designer wear, designed by
the leading designers of the country.

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. With its
brands, ITC is committed to build a dominant presence in the apparel market through a robust
portfolio of offerings.

WILLS LIFESTYLE

Wills Lifestyle has been established as a chain of exclusive specialty stores providing the Indian
consumer a truly 'International Shopping Experience'through world-class ambience, customer
facilitation and clearly differentiated product presentation.

Wills Lifestyle was named Superbrand 2009 by the Superbrands Council of India recently. Wills
Lifestyle has been twice declared 'The Most Admired Exclusive Brand Retail Chain of the Year'
at the Images Fashion Awards in 2001 & 2003. as well as'Most Admired Fashion Brand of the
year - Fashion Forward' in 2009.

Wills Lifestyle is the title partner of the countrys most premier fashion event - Wills Lifestyle
India Fashion Week.

Wills Sport is an energetic, colorful collection that boasts of airy fabrics and vibrant prints set in
shirts, polos, shorts and denims. It also features bold and new patterns in knits, dresses, tunics and
tops portraying the season in its best form.

35

Wills Signature, straight from the runway to the stores, these designs have graced Indias most
elaborate fashion extravaganza, Wills Lifestyle India Fashion Week.

Wills Clublife for men is a more alluring and exciting range. Comprising of fabrics such as
cotton and linen blends, it procures a softer look with less rigid construction

JOHN PLAYERS

ITC forayed into the youth fashion segment with the launch of John Players in December 2002
and John Players is committed to be the No. 1 fashion brand for the youth. The brand is available
across the country through a nation-wide network of over 225 exclusive stores and 1200 multibrand outlets. Having built a powerful brand portfolio that is making waves across the country,
ITC's Lifestyle Retailing is poised to grow and build a dominant presence in the country's fashion
industry.

D. Personal Care-

In line with ITC's aspiration to be India's premier FMCG company, recognised for its worldclass quality and enduring consumer trust, 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.

Extensive insights gained by ITC through its numerous consumer engagements have provided
the platform for its R&D and Product Development teams to develop superior, differentiated
products that meet the consumer's stated and innate needs

36

a) Essenza Di Wills

ITC launched an exclusive line of prestige fine fragrances under the Essenza Di Wills brand in
mid 2005. Essenza Di Wills is an exclusive range of fine fragrances and bath & body care
products for women and men. It includes the following brands:-

MIKKEL

AQUA

INIZIO

b) Vivel

Between February and June 2008, ITC expanded its personal care portfolio with the launch of
Vivel range of soaps and shampoos to cater to the specific needs of a wide range of consumers.

The Vivel range of soaps is available in six variants:1) Vivel luxury crme

2) Vivel milk cream

3) Vivel deo spirit

37

4) Vivel clear 3 in 1

5) Vivel active fair

6) Vivel healthy glow

VIVEL LUXURY CRME

VIVEL CLEAR 3 in 1

VIVEL MILK CREAM

VIVEL ACTIVE FAIR

VIVEL DEO SPIRIT

VIVEL HEALTHY GLOW

The Vivel range of shampoos is available in three variants:

1. Vivel shine and glow
2. Vivel soft and fresh
3. Vivel volume and bounce

38

Vivel has augmented the skin care range with the launch of Vivel Active Essentials and Vivel
Active Fair face washes.
1) Vivel Active Essentials Purifying Face Wash
2) Vivel Active Essentials 3-in-1 Face Wash + Scrub
3) Vivel Active Fair Mild Exfoliating Face Wash

Vivel also forayed into lip care segment with the launch of Vivel Active Essentials Kokum
Butter Lip Care.

39

c) Fiama Di Wills

In September 2007, ITC launched Fiama Di Wills, a premium range of personal care products
comprising shampoos, conditioner, shower gels, bathing bar and face and body Talc.

The Fiama Di Wills product portfolio has been developed by scientists at the ITC R&D Centre,
leveraging the expertise of International product formulation specialists. Fiama Di Wills products
are targeted at the young and trendy youth.

Fiama Di Wills Hair Care Range consists of the Colour Damage Repair System, the Anti Hair
Fall System and the Total Damage Repair System. Each range has a shampoo, a conditioner and a
serum

Fiama Di Wills Skin Sense Bathing Bar

40

Fiama Di Wills Shower Gels & Shower Gel Bars product range includes the Exotic Dream, the
Clear Springs and the Mild Dew.

Fiama Di Wills Men's bath care was voted as the "Product of the Year"

d) Superia

The Superia ranges of soaps and shampoos have been launched to cater to the large popular
41

market in the personal care category.

Superia Soaps are available in four variants:

1) Fragrant Flower: with the fragrance of Rose & Lavender Oil

2) Soft Sandal: with the fragrance of Sandal & Almond Oil
3) Natural Glow: with Neem & Coconut Oils
4) Healthy Glow: with Orange Oil

Superia Lemon Fresh & Milky Glow Soaps

Superia added two new soap variants to enhance its product portfolio.
1) Superia Lemon Fresh
2) Superia milky glow

Superia shampoos are available in two variants:

1) Shiny Black with Triple Conditioners
2) Vibrant Green with Triple Conditioners

42

E. Education And Stationery-

ITC made its entry to the education and stationery business with its Paperkraft brand in the
premium segment in 2002; and later expanded into the popular segment with its Classmate
brand in 2003. By 2007, Classmate became the largest Notebook brand in the country. Together,
Classmate and Paperkraft offer a range of products in the Education & Stationery space to the
discerning consumer, providing unrivalled value in terms of product & price.

Classmate and Paperkraft have become a natural extension of the consumer. ITC is the
manufacturer of India's first Ozone treated environment friendly Elemental Chlorine Free
(ECF) pulp, paper and paperboard. Paperkraft Business paper and the papers used in Classmate
and Paperkraft notebooks are superior in quality and environment-friendly.

i.

Colour Crew

Colour Crew is the new brand of art stationery from the house of Classmate. Now create
everything you can imagine and explore a whole new world with Bill and his exciting range of
43

Colour Pencils, Wax Crayons and Sketch Pens.

WAX CRAYON

ii.

COLOUR PENCIL

SKETCH PENS

Classmate

Classmate is the lead provider of all student stationery needs. ITC launched its Classmate brand
in 2003 with the notebooks category.

Classmate Notebooks: Classmate is India's No. 1 Notebook brand. These notebooks reach more
than 65,000 outlets across the country. For every four Classmate Notebooks purchased, ITC
contributes Re. 1 to its social development initiative that supports, among other projects, primary
education.

Classmate Pens: Exciting range of pens from Classmate include B Quick, , B Neat, B Fine, B
Positive, Volt, UVO, Radeon and Genghis under the Ball point pens and Gel-o-fun, Octane,
Crypton, Attila and Trojan under the Gel pens.

44

CLASSMATE PENCIL

CLASSMATE
MECHANICALPENCIL

iii.

Paperkraft

Paperkraft is the lead provider of all premium executive stationery needs. The Paperkraft range
of products aims at satisfying the stationery and office consumables needs of office executives
and working professionals. The current Paperkraft portfolio includes Premium Business Paper,
Paper Stationery, Markers and Highlighters.

45

Paperkraft Premium Business Paper: Paperkraft Premium Business Paper is an embodiment of

ITC's cumulative sustainability efforts, committed to the highest level of environmentally
responsible business practices.

Paperkraft Paper Stationery: The assortment consists of notepads & multi subject notebooks in
hard, soft covers & multiple binding formats including spirals, wires etc.

Paperkraft Markers & Highlighters: Paperkraft has recently launched a superior range of
Markers and Highlighters into its portfolio

46

F. Safety Matches-

ITC's range of Safety matches includes popular brands like Aim, Aim Special, Aim Premium
and i Kno. With differentiated product features and innovative value additions, these brands
effectively address the needs of different consumer segments. ITC also exports regular and
premium safety matches brands to markets such as Middle East, Africa and the USA.

G. Agarbattis-

As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector, the
Company 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, Durbar, Anushri etc. New launches include
Fragrance of Temple - Gold Tradition & Silver Edition; Champa, Tarangini & Malligai in an
47

attractive pouch format.

2. PAPERBOARDS AND PACKAGING:-

a) Paperboards and Speciality Papers-

ITCs Paperboards and Speciality Papers Division is India's largest, technologically advanced and
most eco-friendly, paper and paperboards business.

Some of ITC's prominent paperboard brands are:

Folding Box Boards: Cyber XLPac, Cyber Cypak, Cyber Propac, Cyber Premium, Pearl
XL Pac

Solid Bleached Sulphate Boards: Safire Graphik, Art Maestro, Carte

Persona, Carte Lumina, Safire XL Pac, Digiart
Poly coated boards: Indobev, Indobarr
PLA Coated boards: Omegabev, Omegabarr, Omegawrap
Recycled boards: Eco Blanca, Eco Natura
48

 Fine Papers: AlfaZap, Alfa Plus, Hi Brite, Paperkraft, Alfazine, Perma White.
b) Packaging

Product Lines:

ITCs Packaging Business has 3 major product lines:

Carton Board Packaging
-Printed Cartons
-Fluted Cartons
Flexible Packaging
Tobacco Packaging

Carton Board Packaging: ITC offers a range of value additions for carton board packaging such
as UV offset printing, Foil Stamping, Embossing, Window patching & lined cartons, etc.

Flexible Packaging: ITC offers a completely integrated solution for laminates from Pre-press, Inhouse Blown Film, Cast film, Extrusion Lamination, Hot Melt Coating, specialty pouching and
bag making.

Tobacco Packaging: ITC makes value added shoulder boxes for cigars and cigarettes.

Green Packaging: ITC Packaging has pioneered offering of Green Packaging which includes
usage of raw material from sustainable sources and conversion of the same in a facility which is
49

100% powered by renewable energy.

3. AGRI-BUSINESS AND SERVICE:-

ITC's Agri Business Division is the country's second largest exporter of Agri-products. It
currently focuses on exports and domestic trading of:

o Feed Ingredients - Soyameal

o Fsood Grains - Rice (Basmati), Wheat
o Marine Products - Shrimps and Prawns
o Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic Fruit
Products, Fresh Fruits
o Coffee & Spices - Coffee, Black Pepper, Chilly, Turmeric, Ginger, Celery and
other Seed Spices.

FARMER EMPOWERMENT THROUGH E-CHOUPAL

ITC has made significant investments in web-enabling the Indian farmer. Christened 'eChoupal', ITC's empowerment plan for the farmer centres around providing Internet kiosks in
villages. Farmers use this technology infrastructure to access on-line information from ITC's
farmer-friendly website www.echoupal.com. E-Choupal today is the world's largest rural digital
infrastructure

CHOUPAL SAAGAR

Following the success of the e-Choupal, the Company launched Choupal Saagar, a physical
infrastructure hub that comprises collection and storage facilities and a unique rural hypermarket

50

that offers multiple services under one roof. 24 'Choupal Saagars' have commenced operations in
the states of Madhya Pradesh, Maharashtra and Uttar Pradesh

CHOUPAL FRESH

Choupal Fresh, ITC's fresh food wholesale and retail initiative, leverages its extensive backward
linkages with farmers and supply chain efficiencies. It focuses on stocking fresh horticulture
produce like fresh fruits and vegetables.

CHOUPAL PRADARSHAN KHET

In line with its mission of improving the quality of life in rural India, ITC's Agri Business has
launched a flagship extension programme called 'Choupal Pradarshan Khet' (CPK) or
demonstration plots to help farmers enhance farm productivity by adopting agricultural best
practices. Started in 2005-06, the crop portfolio includes soya, paddy, cotton, maize, bajra, wheat,
51

gram, mustard, sunflower and potato.

4. HOTELS:-

ITC Hotels, India's premier chain of luxury hotels was launched on October 18, 1975, with the
opening of its first hotel - Chola Sheraton (now rechristened as My Fortune) in Chennai. With
over 100 hotels in more than 90 destinations, ITC Hotels has set new standards of excellence in
the hotel industry in Accommodation, Cuisine, Environment and Guest Safety.

As one of India's most dynamic hospitality chains, ITC Hotels has set standards for excellence in
the hotel industry.

LUXURY COLLECTIONS-

In 2007, ITC Hotels entered a new phase in its collaboration with Starwood Hotels & Resorts.
ITC Hotels now has an exclusive tie-up with Starwood in bringing its premium brand, the
'Luxury Collection', to India. The ten hotels which are part of this collection are: ITC Grand
Chola in Chennai, ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar in Kolkata, ITC
Grand Central in Mumbai, ITC Windsor & ITC Garden in Bengaluru, ITC Kakatiya in Hyderabad
and ITC Mughal in Agra and ITC Rajputana in Jaipur.

WELCOMHOTELS
52

WelcomHotels offer five-star hospitality for the discerning business and leisure traveller.
Currently there are three hotels under this brand namely, WelcomHotel Rama International
Aurangabad, WelcomHotel Vadodara and WelcomHotel Grand Bay Vishakhapatnam. Two other
WelcomHotel Sheratons - Sheraton Park Hotel and Towers, Chennai and Sheraton New Delhi.

ITC Hotel's Awards:

ITC Gardenia, Bengaluru is the first Indian Hotel and world's largest, to get the LEED Platinum
rating - the highest green building certification globally.

ITC Hotels was named the Best Premier Hotel Brand at the Galileo-Express TravelWorld
Awards 2008 & 2006. ITC WelcomHeritage won the Best Heritage Hotel Brand award in 2006.

ITC Maurya, New Delhi received the award for 'Best Luxury Hotel' at the Star Hospitality
Awards 2007-08 and the NATIONAL TOURISM AWARD 2007 for 'Best Eco-Friendly Hotel'
from Ministry of Tourism.

WelcomHotel Sheraton New Delhi won the Golden peacock Award 2008 for Environment
Management. It was also conferred the '6th Annual Greentech Safety Award' in the Service
Sector for the year 2006.

ITC Maurya, New Delhi is also India's first hotel to be accorded the ISO 14001 certification for
its Environment Management Systems.

ITC Maratha at Mumbai was declared to be the Best Luxury Hotel of the Year 2002, by the
Federation of Hotel and Restaurant Associations of India

Some renowned ITC Hotels:

1) ITC Grand Chola, Chennai

53

2) ITC Maurya, New Delhi

3) ITC Maratha, Mumbai
4) ITC Gardenia, Bangaluru
5) ITC Windsor, Bangaluru
6) ITC Grand Central, Mumbai
7) ITC Sonar, Kolkatta
8) ITC Kakatiya, Hyderabad
9) ITC Rajputana, Jaipur
10) ITC Mughal, Agra
11) Sheraton New Delhi Hotel, New Delhi
12) WelcomHotel Vadodra, Vadodra

5. INFORMATION TECHNOLOGY:-

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 Centers of Excellence (CoE) to
deepen capabilities and incubate cutting-edge technical competencies. The company services
industries including, Banking Financial Services & Insurance (BFSI), Consumer Packaged
Goods (CPG), Retail, Manufacturing, Engineering Services, Media & Entertainment, Travel,
Hospitality, Life Sciences and Transportation & Logistics.

ITC Infotech's leadership capabilities also accrue from business critical engagements with
leading organisations across five continents, and a service delivery footprint spanning over 140
countries.
54

ITC Infotech conforms to the highest standards in international process quality, with ISO 27001,
ISO 9001.

People first- ITC Infotech nurtures its employees through numerous training and development
programmes to help them actualize their potential. The objective is to ensure for each
individual, a wholesome and challenging job profile, thereby constantly aligning individual
aspirations to organizational needs. ITC Infotech offers global careers, global exposure and a
diversity of opportunities to create business and technology leaders of tomorrow

The company became the first Indian IT company to receive the prestigious Social
Accountability (SA) 8000:2008 certification.

II.

PRICING STRATEGY:

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
Brisk farm. 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.
Retail sales volume is now 80% controlled by 2-3 chains with a scattering of independent
operators making up the rest of the volume. This concentration means the negotiations favour
the retailer with the supplier handling over margin via the mechanism of trading terms and via the
demand for increased promotional frequencies and deep price discounts on key branded lines

The challenge for Trade Marketing, Category Management as well as Sales and Marketing is to
develop a pricing system that can be customized to reflect your business needs but utilize the
power of a structured and proven pricing management system.

The Basic Concept used by ITC is:

55

"PRICE IS SOMETHING WHICH CUSTOMER IS READY TO PAY FOR YOUR PRODUCT.

Hence it is a majority function of

- Consumers purchasing power.

- Market condition created by the Competitor in terms of the price

The objective of the company is to maximize its market share, as the cigarettes industry works
on low margins so the company here tries to maximize its sales quantity so that it can maximize
its profits. Further the company does not raise the price of its most selling brand (Gold Flake) so
that it can get maximum market share and earn money on its premium brands(Insignia).The
demand is here is inelastic as per the price changes as the customer are addicted. But there is an
inter brand elasticity as the people shift to competitive brands if the price of one is raised (i.e. if
the price of Gold flake (s) is raised then the consumers will shift to Wills Navy cut as the
consumer will get longer cigarettes and also a similar brand, Similar is the case with Red &
White and Gold Flake (s).

The cost structure of the company plays a major role in determining the prices the various stages
and the companies cost structure is as follows:- Fixed Cost(Plant operations) .69% &Variable
(manufacturing , packaging etc. 99.31%)There are not much price or product variations in the
competitors brands and all of them work in the same segment. The company is following a
mark-up pricing method wherein the company mark-ups the goods at a margin and then provides
discounts to the various channel partners according toits policy (e.g. the distributors have a fixed
margin of 1.45% and the dealers have a margin of .8%) the company also follows the consumer
perceived value as the while launching its new products in the super premium segment the
company will price it at a higher price as the consumer perceives it to be a high priced product.

ITC as the company works on the low margin, high volume strategy and also its channel partners
work on the same strategy, so the company raising its prices will have a huge impact on its value
chain (e.g. If the company raises its price without raising the mark up price the channel partners
56

will have to forgo part of their profits which would lead to conflict between the channel partners
and the company). Further on the company cannot afford to raise its mark-up due to the presence
of intense competition. So before making changes to the prices the company will have to
consider the interest of the channel partners and also the strategies adapted by its competitors.

Wills Lifestyle, the premium lifestyle retail arm of ITC Ltd, has said it is reworking strategy to
protect bottom line and check a drop in sales, even as it has cut its growth forecast for the fiscal
year. Wills has shut four stores in the past three months and now plans to use ITCs hotel
properties to set up boutique stores. The Kolkata-based retailer is revitalising its growth strategy
as sales at lifestyle retailers have slumped, forcing it to cut growth forecast for the fiscal year
ending March to 20 per cent, from 30 per cent earlier. The premium retailer has also shut down a
store each in Bangalore, Mumbai, Surat and Kanpur, to redevelop the business strategy in order
to stay profitable. The company is also tapping its loyal customer pool to ramp up sales. A few
retailers, including Shoppers Stop, have witnessed spurt in sales because of loyalty schemes.
About 70 per cent Shoppers Stop sales come from its First Citizens programme.

The Bingo brand of chips was launched by ITC on 14th March 2007 with an aim to capture at
least 25 percent market share of the Rs. 2000 crore branded snack market within five yrs with an
aggressive pricing strategy. Presently the relative market share of Bingo is 16%. The pricing
strategy adopted by Bingo is a clever one. Bingo is priced the same as the Lays brand of chips at
Rs10 for a 35g packet and Rs5 for the smaller one. By adopting a consistent pricing strategy and
by offering higher margins to the retailers Bingo has won the retailers hearts. Once the initial
objective of Bingo was to capture 25% market share but now keeping in mind the increasing
inflation rate and production costs it will have to sooner or later re-price its products.

"Indian consumers love premium and imported products. If we had started from the bottom-end
of the market, consumers would have never accepted us when we entered the premium segment,"
says ITC Executive Director Kurush N Grant.

ITC entered the food business in 2001 with premium ready-to-eat brand 'Kitchens of India' and
in 2003 launched the 'Aashirvaad' range of ready meals at a price range of 35-50.ITC's non-

57

cigarette FMCG business grew almost 25% during April-December 2010 to 3,168 crore. It has
yet to release its full-year results. A recent report by HDFC Securities estimates that ITC has
around 6% market share in soaps and 3% in shampoo. ITC's progress is impressive because it has
been in the business only for the last 3-4 years. Expect ITC to do well in food business where it
already has two 1,000-crore-plus brands: Sunfeast and Aashirvaad. And it gets back-end support
from its e-Chaupal initiative.

III.

PROMOTIONAL STRATEGY:

Wills is also devising special schemes and events for its 60,000 Club Wills (its loyalty
programme card) members, who account for 55 per cent sales. It is also realigning its marketing
spends towards below-the-line activities, bringing down spends on television and print
advertising.

"So, if the ratio of TV and print advertising to consumer-centric activities was 70:30, it will be
the reverse of this in the short term. We spend around 12 per cent of our turnover on advertising
and marketing," said Chand.

"We are looking at new-age media to attract more young customers. For instance, we are looking
at tying up with social networking sites like YouTube and Facebook, or building a Hrithik
Roshan community for a more personalised marketing," said Chand.

Also, the company intends to offer more variety, designs and range to consumers every two
months, which means it plans to redo its supply chain.

The company has 55 stores in 30 cities and plans to open another 10 in financial year 2009-10.
58

Earlier, it had announced plans to have 100 stores by 2010-11.

IV.

DISTRIBUTION CHANNELS:

The process of passing down each product down the chain to the next organization through
chain of intermediaries, before it finally reaches the consumer or the end-user is known as
Distribution Chain or Channel.

A number of alternate channels of distribution may be available: Distributors who sells to the retailers.
Dealers or wholesalers who sell to the end customer.
Advertisement typically used for consumption goods.

ITC follows:

CHANNEL WISE DISTRIBUTION

Here the total product is divided into different channels like, Health care products,
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.

59

ITC supply chain consists of diverse categories with different priorities: More than 650 trucks move every day.
Direct distribution from factories to distributors.
Combination of Rail/Road/Sea movement within the country depending on the product
type.

MARKETING STRATEGY:

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 (Echoupal) , and foods. All using its famed distribution strengths built through its successful past
60

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 the FMCG domain, through ITC foods in
August 2001, and personal care business in 2005. It has created good impact with its well etchedpersonal care brands. Under this category, Fiama Di Wills, Superia, Essenza Di Wills, Vivel Di
Wills and Vivel 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 % for the final products. ITC
called exercise as "3E" Approach- explore, establish and execute. As the saying 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 HUL which still reigns over 50 % of the FMCG market. And ITCs target was

HUL and P&G only. In less than 4 years, ITC has been able to create brand awareness and
consumer acceptance for its five product lines Fiama Di Wills, Superia, Essenza Di Wills, Vivel
Di Wills and Vivel- each targeted at the needs, aspirations, usage behaviour of different
consumer segments.

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SWOT ANALYSIS

STRENGTHS-

ITC leveraged its traditional businesses to develop new brands for new segments. ITC is a
diversified company trading in a number of business sectors including cigarettes, hotels,
paperboards, agriculture, packaged foods, branded apparel, personal care, Information
Technology, safety matches and stationery

WEAKNESSES-

ITC Company is still dependent upon its tobacco revenues. Cigarettes account for about 47% of
the companys turnover and it is responsible for 80% of its profits. So there is an argument that
ITCs move into FMCG products is being subsidised by its tobacco operations. Its Gold Flake
tobacco brand is the largest FMCG brand in India- and this single brand alone holds 70% of the
tobacco market. Unrelated diversification is also a major weakness of ITC.

OPPORTUNITIES-

Core brands such as Aashirwad, Mint-O, Bingo! And Sunfeast (and other) can be developed using
strategies of market development, product development and marketing penetration. ITC is
moving into new and emerging sectors including IT, supporting business solutions. e-choupal is a
well thought of initiative that could be used in other sectors in many other parts of the world. It is
also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages.

THREATS-

The obvious threat is from the competition, both domestic and international. ITCs opportunities
62

are likely to be opportunities for other companies as well.

CORPORATE GOVERNANCE

ITC defines Corporate Governance as a systemic process by which companies are directed and
controlled to enhance their wealth generating capacity. Since large corporations employ vast
quantum of societal resources, we believe that the governance process should ensure that these
companies are managed in a manner that meets stakeholders aspirations and societal
expectations.

Core Principles

ITC's Corporate Governance initiative is based on two core principles. These are:

Management must have the executive freedom to drive the enterprise forward without undue
restraints; and this freedom of management should be exercised within a framework of effective
accountability.

ITC believes that any meaningful policy on Corporate Governance must provide empowerment
to the executive management of the Company, and simultaneously create a mechanism of checks
and balances which ensures that the decision making powers vested in the executive
management is not only not misused, but is used with care and responsibility to meet stakeholder
aspirations and societal expectations.

Cornerstones

From the above definition and core principles of Corporate Governance emerge the cornerstones
of ITC's governance philosophy, namely trusteeship, transparency, empowerment and
accountability, control and ethical corporate citizenship. ITC believes that the practice of each of
these leads to the creation of the right corporate culture in which the company is managed in a
63

manner that fulfils the purpose of Corporate Governance.

CODE OF CONDUCT

ITCs Code of Conduct was circulated to the employees more than five years back and is posted
on the Companys corporate website on http://www.itcportal.com This Code has now been redrafted for better presentation. This Code is derived from three interlinked fundamental
principles, viz. good corporate governance, good corporate citizenship and exemplary personal
conduct.

FINANCIAL HIGHLIGHTS
(Figures In Crores)

SR.NO.

PARTICULARS

Year 1996

Year 2013

1.

Gross Income

5188

36073

2.

Net Segment Revenue

1363

16150

3.

Profit After Income

261

6162

4.

Net Assets Employed

1886

19754

5.

Net Worth

1121

18792

64

JOINT VENTURES OF ITC

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 Bengaluru.

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.

The company is committed to delivering globally benchmarked quality and continuously invests
in technology and R&D. ITC Filtrona has Level 7 certification from International Quality Rating
System (IQRS), only such company in the industry in India and one of the few Indian companies
with this coveted certification. The company has also been awarded the SA8000 certification,
widely accepted as the most viable and comprehensive international workplace management
system and OHSAS 18001:2007certification for its Occupational Health and Safety System.

65

66

COMPETITORS

1) Hindustan Unilever Limited

Hindustan Unilever Limited was established in November 1956. With over 35 brands spanning
20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants,
cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of
the everyday life of millions of consumers across India. The Company has over 16,000
employees. On 17th October 2008, HUL completed 75 years of corporate existence in India. In
January 2010, the HUL head office shifted from the landmark Lever House, at Backbay
Reclamation, Mumbai to the new campus in Andheri (E), Mumbai. On 15th November, 2010,
the Unilever Sustainable Living Plan was officially launched in India at New Delhi. In March,
2012 HULs state of the art Learning Centre was inaugurated at the Hindustan Unilever campus at
Andheri, Mumbai. In April, 2012, the Customer Insight & Innovation Centre (CiiC) was
inaugurated at the Hindustan Unilever campus at Andheri, Mumbai

VISION

To create a better future every day.

MISSION

The deep roots in local cultures and markets around the world give them strong relationship with
consumers and are the foundation for the future growth.

67

AWARDS

Six of the brands (Lux, Lifebuoy, Close-up, Fair & Lovely, Clinic Plus and Sunsilk)
featured in Top 15 list in Brand Equitys Most Trusted Brands Survey.

Hindustan Unilever Limited (HUL) was awarded the CNBC AWAAZ Storyboard
Consumer Awards 2011 in three categories:
FMCG Company of the Year
The Most Consumer Conscious Company of the Year
The Digital Marketer of the Year

HUL was identified the sixth most innovative company in the world in a ranking
published by Forbes magazine.

HUL won the Rolta Corporate Award for the top Indian Company in the FMCG sector at
an awards ceremony organized by Dun & Bradstreet.

HUL won 5 EFFIE Awards which were organized by the Ad Club of Bombay.

HUL was awarded the FMCG Supply Chain Excellence Award at the 5th Express,
Logistics & Supply Chain Awards endorsed by The Economic Times along with the

Business India Group.

PRODUCTS

A. WATER PURIFIER
Pure-it

B. FOOD AND DRINK

68

Bru
Brook bond 3 roses
Kwality walls
Kissan
Knorr
Brook bond red label
Brook bond taj mahal
Brook bond taaza

C. HOME CARE
Rin
Vim
Surf excel
Active wheel
Domex
Cif

D. PERSONAL CARE
Dove
Lux
Pepsodent
Pears
Axe
Ponds
Vaseline
Sunsilk
Close-up
Lifebuoy
New Fair and Lovely

69

70

2. Golden Tobacco

Golden Tobacco Ltd (Formerly GTC Industries Ltd) is one of the leading cigarettes producers in
India. It was established in 1930, and is wholly indigenous cigarette manufacturing company of
its kind, in the country. It captured substantial domestic market shares & also carved a niche of
brilliance in the highly competitive international markets, on the strength of its high quality
products, variants and services. GTC offers you an exceptional variety of cigarettes in Virginia
and American blends, which meet world class standards of quality & consistency. GTC has a
Government of India approved Research & Development (R &D ) Centre, which continuously
strive to innovate as also in improving the quality of products.

Golden Tobacco Limited is engaged in International business from last 3 decades, carving a
niche of brilliance in the highly competitive international markets, on the strength of its high
quality products, variants and services.

VISION

To be a largest, human sensitive, Global Tobacco Company.

MISSION

Constant research and development to develop the finest blends guided by relentless focus to
deliver world class packaging, with the aim to exceed expectations of our consumers both in
71

India and around the globe. All of our long-term strategies and short-term actions will be bound
by the finest standards of professionalism and dedication. These core values are shared by each and
every stakeholder of Golden Tobacco.

PRODUCTS

It is one of the leading Manufacturer & Exporter from India having widest range of products
including Cigarettes, Slim Cigarettes, Little Cigars, TIP Cigars, Roll Your Own Smoking
Tobacco, Loe Tabac Cigarettes (50% less tobacco) & Blunt wrappers. Currently we offer the
following products for export.

A. CIGARETTES
Panama,
Chancellor Royale,
Flair International,
Esquire,
Style Mini Kings

B. FLAVOURED LITTLE CIGARS AND TIP CIGARS

Just Black,
Lips &
Loe Tabac.

C. SLIM CIGARETTES & LITTLE CIGARS

June

D. ROLL YOUR OWN SMOKING TOBACCO

Just Black

72

June

Panama

Just Black

Chancellor Royale

Style Mini Kings

3. Marico Limited

Established in April 1990, Marico Industries Limited was formerly the consumer products
division of Bombay Oil Industries Limited. Over the last 2 decades, Marico transformed from a
traditional commodity driven business into a leading Consumer Products & Services Company,
in the Beauty and Wellness space. Marico is one of India's leading Consumer Products &
Services companies in the global beauty and wellness space. Over the past 20 years, Marico has
been continually improvising and building new brands.

Marico markets brands across Indian and international markets which occupy leadership
positions and significant market shares in their respective categories. Today, Marico has a strong
73

presence in over 25 countries across India, South East Asia, Middle East and Africa.

VISION

Consumers- They are the reason we exist.

Membership- For a sense of ownership empowers us.
Innovation- It gives wings to ideas.

MISSION

The Maricos Innovation Foundations mission is to provide the nation with first.

AWARDS

Marico awarded the India International Logistics Forum (IILF) 'Innovation in Supply
Chain Award'

Parachute Advansed Ayurvedic hair oil won a 'Gold' at the Media Abby's in the print
category at the Goafest 2012.

Marici won "world star" award 2011 for the Saffola Arise 4.5kg jar rice pack.

Saffola was awarded the "Marketing Campaign Gold Medal" for its saffola life-young at
heart campaign at the APPIES-2011.

PRODUCT

A. Marico's Consumer Products Business houses well-known brands such as

Parachute,
Saffola,
Hair & Care,
74

Nihar,
Mediker,
Revive,
Coconut Oil,
Hair Oils,
Post wash hair care,
Anti-lice Treatment,
Premium Refined Edible Oils,
Niche Fabric Care etc.

B. Marico now owns popular brands like

Set Wet,
Livon,
Zatak

4. Procter and Gamble Co. (P&G)

P & G is an American Company based in Cincinnati, Ohio that manufactures a wide range of
consumer goods. In India Proctor and Gamble have two subsidiaries:
P&G Hygiene and Health Care Ltd.
P&G Home Products Ltd.

P &G Hygiene and Health Care Ltd.is one of Indias fastest growing FMCG Companies. Its
famous products are Whisper and Vicks. P&G Home Products Ltd. Deals in Fabric care segment
75

and Hair Care segment. Its famous products are Ariel and Tide in the Fabric Care segment and
Head and Shoulders, Pantene and Rejoice in the Hair Care segment.

P & G entered the Indian market in 1951 with Vicks Products Inc., U.S.A, Branch of P & G.
Procter and Gamble India since then has launched Whisper - the breakthrough technology
sanitary napkin. Ariel detergent, Ariel super soaker, Pantene Pro-V shampoo, Head and Shoulders
shampoo, Tide detergent powder- the largest selling detergent in the world. In 2003, Procter and
Gamble Home Products Ltd. Launched Pampers- worlds number one selling diaper brand.

Today P & G is the second largest FMCG Company in India after Hindustan Unilever Ltd.

VISION

Be, and be recognized as, the best consumer products and services company in the world.

MISSION

We will provide branded products and services of superior quality and value that improve the lives
of the worlds customers, now and generations to come.

AWARDS

Forbes ranked P&G 10th on the "America's Most Reputable Companies" list, and 49th on
the list of the "World's More Reputable Companies."

Universal named P&G one of The World's Most Attractive Employers.

P&G received the U.S. Secretary of State Award for Corporate Excellence (ACE) for
contributions to improving the lives of consumers in Nigeria and Pakistan.

P & G also received the United Way Spirit of America Award, United Way's highest
national honour for any corporation.

Corporate Knights ranked this company 66th on its "Global 100 Most Sustainable
76

Corporations in the World."

PRODUCTS

Ambi Pur
Ariel
Duracell
Gillette
Head & Shoulders
Olay
Oral- B
Pampers
Pantene
Tide
Vicks
Whisper
Wella
Pringles
Ivory

77

5. Dabur

Dabur India Limited is the fourth largest FMCG company in India with brands like Dabur Amla,
Dabur Chyawanprash, Vatika, Hajmola and Real. Dabur operates in key consumer products
categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care & Foods.

Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn and
grow to a commanding status in the industry. The Company has come a long way in
popularising and making easily available a whole range of products based on the traditional
science of Ayurveda.

Dabur was founded in the year 1884 by Dr. S.K. Burman. It has employee strength of approx.
3000.

VISION

"Dedicated to the health and well-being of every household"

78

MISSION

To become a leading nature based health and family care product company.

AWARDS

Burman family ranked 18 in the list of 100 Richest Indians by Forbes India.

Hajmola, Dabur ranked among the Top 100 Most Trusted Brands in India, by ET- Brand
Equity

Dabur's Baddi (Chyawanprash) unit has bagged the first prize in Manufacturing Today
Award for Excellence in Innovation.

Dabur moves up 6 places, ranked 67 in the latest BT- 500 list for 2012.

Dabur listed amongst Best of India in Health and Wellness category.

In 2010-2011, Dabur ranked 7th most respected company in the FMCG space in India.

PRODUCTS

A. HEALTH CARE
Health Supplement
Digestives
OTC- Health Care

B. PERSONAL CARE
Dabur Amla
Dabur Vatika Hair Oil
Dabur almond Oil
Dabur Vatika Shampoo

79

C. FOODS
Real
Active
Lemoneez
Capsico
Burrst

D. HOME CARE
Odomos Cream
Odonil
Odopic
Spani Fresh Shine

E. PROFESSIONAL RANGE
Oxylife Facial
Fem Queens Pearl facial
Fem Gold Facial
Fem Body Bleach

80

RESEARCH METHODOLOGY

Data Collection Technique: This project is the part of the study that has been done using an
exploratory research process and a structured questionnaire was developed for this purpose. For
the collection of primary data this was the only method used.

Sample Design: The population considered for the purpose of the survey was people residing in
Mumbai.

Sample Size: I have restricted the sample size to 50 respondents. This was done keeping in
mind the time constraints and the fact that I felt this number would be enough to serve the
information needs required to show the trends.

81

QUESTIONNARE
Which factor influences you to prefer ITC product?
a) Price

b) Quality

c) Brand

d) Safety

e) Visibility

f) Usage

2) Why do you think ITC products are successful?

a) Range of products

b) Range of price

c) Promotional activities

d) Replacement

3) Are you satisfied by the quality of ITC products?

a) Yes

b) No

4) Which type of distribution channel is effective to buy the ITC products?

a) Wholesaler

b) Retailer

c) Supplier

5) How would you rate services offered given by ITC?

a) Satisfied

b) Highly satisfied

c) Not satisfied

d) Highly dissatisfied

6) Are the customers sales promotional activities of ITC effective?

a) Yes

b) No

7) Did you advise others to purchase ITC products?

a) Yes

b) No

c) Sometimes
d) Rarely

82

8) Which brand do you think is the toughest competitor to ITC segment for stationeries?
a) Natraj (Hindustan pencils ltd)

b) Faber Castell

c) Navneet

d) Camlin

9) How would you rate product/service as compared to HUL?

a) Satisfied

b) Extremely satisfied

c) Not satisfied

d) Extremely dissatisfied

10) Do you find that the price of ITC products is economical and does not burn a hole in the
pocket?
a) Yes

b) Somewhat

c) No

11) How do you rate your satisfaction level of ITC personal care product with other products?
a) Outstanding

b) Very satisfactory

c) Satisfactory

d) Somewhat satisfactory

12) How did you come to know about this ITC products?
a) Newspapers/magazines ad

b) Television

c) Website

d) Catalogues

NAME:
AGE:
SEX: a) Male

b) Female

83

DATA ANALYSIS

1. Which factor influences you to prefer ITC product?

2. Why do you think ITC products are successful?

84

3. Are you satisfied by the quality of ITC products?

4. Which type of distribution channel is effective to buy the ITC products?

85

5. How would you rate services offered given by ITC?

6. Are the customers sales promotional activities of ITC effective?

86

87

7. Did you advise others to purchase ITC products?

8. Which brand do you think is the toughest competitor to ITC segment for stationeries?

88

9. How would you rate product/service as compared to HUL?

10. Do you find that the price of ITC is economical and does not burn a hole in the pocket?

89

11. How do you rate your satisfaction level of ITC personal care product with other
products?

12. How did you came to know about ITC products?

90

91

CONCLUSION

Thus ITC Company has able to satisfy its customers during last few years. ITC Company has been
able to provide new and better FMCG products over the period of time. ITC has realized that to
survive in the market it has to launch new and better products and thus been doing on a
continuous basis. ITC Company is still growing in all the different segments. The FMCG
products have grown on a large scale and Lifestyle segment is growing under the premium class.

Today, your Company is a leading FMCG marketer in India, the second largest Hotel chain, the
clear market leader in the Indian Paperboard and Packaging industry and the country's foremost
Agri business player. Your Company's wholly owned subsidiary, ITC Infotech India Limited, is
one of India's fast growing Information Technology companies in the mid-tier segment.

92

RECOMMENDATIONS
1. The brand name and quality of ITC products enforces people to buy ITC products.

2. ITC products are successful in market because of its wide range of choices in its products.
3. Majority of ITC products consumers are very much satisfied with its products.
4. Retailers are the best type in distribution channels which are effective in buying ITC
products.
5. Consumers rated ITC products as Highly Satisfied.
6. Consumers sales promotion activities done by ITC are effective.
7. Many of the ITC products consumers advise others to purchase ITC products because of
promising features of ITC products.
8. Camlin brand in stationery is rated as the toughest competitor to ITC stationery segment.
9. ITC products consumers are satisfied even if it is compared to Hindustan Unilever
10. The price of ITC products are economic and pocket friendly to its consumers.
11. ITC personal care products are giving enough satisfaction to its consumers even if it is
compared with other personal care products available outside in the market.
12. ITC products are very famous in Indian market. Television is the best source in making
people aware of ITC products, there are some other sources as well like
newspapers/magazines, websites, catalogues etc.

93

BIBLIOGRAPHY

1) http://www.itcportal.com/
2) http://en.wikipedia.org/wiki/ITC_Limited
3) www.godfreyphillips.com/
4) www.marico.com/
5) http://www.itchotels.in/
6) http://www.business-standard.com/stocks/company-overview/301-itc
7) http://www.itcportal.com/businesses/fmcg/personal-care-products.aspx
8) www.itcstrategies.com/files/-ITCS_Brochure_ver6_2.pdf
9) http://www.scribd.com/doc/11518224/Marketing-Strategy-of-ITC-Ltd
10) http://www.studymode.com/subjects/marketing-mix-of-itc-hotels-page1.html
11) http://firstindiaschoolofbu.articlealley.com/swot-analysis-of-itc-limited-100-yearsjourney-1798649.html
12) http://www.itcinfotech.com/
13) http://www.echoupal.com/
14)

http://www.elect

ronicstakeback.com/2013/03/13/statement-on-the-new-itc-report-on-exports-ofelectronic-waste/

94