1

TOPIC
Marketing techniques to make processed foods attracttive to consumers.

Name: KAZI ADIL RASHID

Course: BBA

Sem: 3

ENROLLMENT No: A90606415044

Subject: Term paper

ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher MS.SURANJANA

JOARDEN who gave me the golden opportunity to do this which also helped me in doing a
lot of Research and i came to know about so many new things I am really thankful to them.
Secondly i would also like to thank my parents and friends who helped me a lot in finalizing
this project within the limited time frame.

ITC (LITERATURE REVIEW)

ITC India Limited
Founded August 24, 191
Radha bazar Lane, Kolkata, India
Headquarters Virginia House, Kolkata
Industry Tobacco, Foods, Hotels
Products Cigarettes, Packaged Food, Hotels, Apparel
Revenue (US$8.0 billion) (2016)
Employees 25,000 (2016)
Website

http://www.itcportal.com/

ITC Company background

ITC was set up in Kolkata as the Imperial Tobacco Company of India Ltd on the twenty
fourth of august 1910. In 1974 it was renamed as I.T.C Limited and in 2001 it was
ultimately changed to ITC Ltd. ITC is a part of many businesses such as apparel, tobacco,
hotel, food, packaging, paper boards and confectionery. In 2001, ITC diversified in the food
division. In the Ready-to-Eat segment the KOI brand was launched by them. They further
expanded their brand in different segments such as staples, snack food and confectionery. ITC
can achieve the first place in the market if its standards are maintained and increased in the
future as at present it has been able to fulfil the requirements and needs of the nation. ITCs
hotel business has nurtured few restaurants such as Dum Pukth, Bukhras etc that are famous
throughout the world. This shows that the company understands the Indian taste and has the
required expertise who can convert the knowledge gained into pleasant experience of dining
for the customers. For the last ninety eight years ITC has provided high quality products and
many of its brands are benchmarked internationally because of its quality.
The products offered by ITC foods are a result of rigorous market research based on the
insights of the consumer. Many innovative new products besides the existing products are
being developed in ITCs state of the art Product Development facility situated at Bangalore.
ITC has developed intimate business relationships over ninety eight years with the farmers in
India and is boosting the ability of the farmers to access the global markets via schemes like
E copal. This close relationship is used by the company so as to get quality agricultural
products for their food business. This makes the procurement easy and feasible for ITC foods.
ITC Packaged Foods In August 2001 ITC entered the branded and packaged food business
by introducing the brand named Kitchens of India. A broader entry was made in June 2002 by
launching brands in the staples, snacks and confectionery segment. The strengths of ITC in
the fields of branded cuisine, hospitality, packaging, sourcing agricultural products can be

utilized for packaged food business. To guarantee the customers high standard of food
hygiene and safety, it assists outsourced manufacturers to implement hygiene standards that
are world class by the certification of HACCP.
ITC has quickly gained a standing in the market in all of its six brands such as sun feast,
Bingo, candy man, Ashirvad, Kitchens of India and mint o because of its strong commitment
towards quality which is benchmarked internationally. Lately the food segment of ITC made
plans on the first of August 2008 to extend into frozen food through brand- Kitchen of India.
The business of branded packaged food is expanding as sales grew by twenty three percent
from the last year. Along with the cost required for the development of new products, the
company has to bear the current economic slowdown and also the increase in prices of
various input commodities such as maize, vegetable oil, wheat, and skimmed-milk-powder.
To add to it the fuel prices are also rising. ITC in a short time has gained a reasonable scale.
They are increasingly focusing to consolidate the portfolio in some of the segments,
enhancing servicing of the market and also motivating efficiencies in the supply chain. The
food market in India is monopolistic. In all the different categories there are several players
who offer almost the same products and at the same price, yet they are differentiating
themselves with their planned marketing strategies.
It is very easy to enter this business and this is a big benefit to ITC as they have been able to
enter numerous categories in this business.
Packaged foods are divided into 5 major parts.
Ready to eat
ITC diversified into the branded & packaged food segment through the introduction of a
brand named Kitchens of India. In the year 2004, it launched the brand KoI which included
spice conserves, spice and fruit conserves. The spice and fruit conserves were made jointly
with a food expert named Karen Anand. To target the elite segment its price of spice and fruit
conserve was set at Rs 70 and cooking paste for Rs 30 which was a hundred grams pack .The
Aashirvaad brand introduced cooking pastes that were multipurpose and for a pack of eighty
grams it was priced Rs 10. The production of these products was outsourced to save the
operating cost to contract manufacturers. In 2005, ITC introduced itself to the branded spices
segment and in the year 2006 to the segment of instant mix through Aashirvaad brand. The
annual turnover as per April 2006, in the segment of ready to cook and ready to eat was about
Rs. 700 million and posted a growth of twenty percent annually. In the year 2006 the ready to
eat market was dominated by MTR which had 60 percent share whereas ITC had 35percent
share. 40-50% products of the Kio brand were exported to Switzerland, Canada, The USA,
Australia and the UK. During the mid of 2006, within the Kio brand ITC decided to offer 10
more varieties within the price of Rs 35- 98 . In the year 2007, few products were introduced
in the ready-to-eat segment such as conserves, curries, chutneys ,biryanis ( Bore Britani, nor
Mahan )and few new variety products from Guarani ( Keera Mutter, Pander Malay). ITC
food expects to have a market share of 50- 60% by 2008-09 after the launch of these
products.

ITC LTD

MTR

9%

KOHINOOR

OTERS

8%
48%

35%

2. Confectionary
ITC at present has the brands named Candy man and Mint-o in the market. Mint o fresh
was able to secure 17 percent share in the market of cough lozenges in India whereas Perfecta
the former leader was able to achieve only 14.3% share by chloromint. In the whole
confectionary market ITC has just 3 percent share whereas Perfecta has 37 percent or more
and offers many brands. Hence it can be seen that ITC is lagging behind.
PREFFETI VAN
MILLE

ITC LIMITED

NESTLE

CADBURY

COFITOS
CHCOTELLA
ALPENLIEBE
CENTRE MINT
CENTRE FRUIT
MENTOS
BUG BABOL
LOLLIPOP
HAPPYDENT WHITE

CANDYMAN
MINTO

ECLAIRD
MUNCH
POLO
MILK
CHOCOLATE
KIT KAT
POLO POWER
MINT
MILKY BAR

DIARY MILK
5 STAR
GEMS
PERK
HALLS
ECLAIRS

MARKET SHARE -CONFECTIONARY

PREFFETI

7%
CADBURY

NESTLE
39%

OTHERS

45%
9%

3.BISCUITS: .The biscuit market in India is valued to be approximately worth Rs. 5000
core. In the Indian Biscuit industry out of the net production 60% percent is produced by the
organized sector and the rest 40% is produced by the bakeries which form a part of the
unorganized sector. SUNFEAST a premium product of ITC is helping the company to
acquire a huge share in the market. They should get 12 percent market share within the next
few years.
BRITANNIA
MILK BIKIS
PURE MAGIC
TREAT
GOOD DAY
50-50
TIGER

ITC LTD
MARIE
DREAM CREAM
CHOCO NUT
BUTTER NUT

PARLE
PARLE G
KRACK JACK
KREAMS
HIDE AND SKEAK

PRIYAGOLD
BUTTER BITE
BUTTER LITE
BIG BOSS
MAGIC GOLD

MARKET STRUCTURE -BISCUIT

PARLE; 28%

ITC; 33%

PRIYAGOLD; 7%
BRITANNIA; 33%

Staples
In the year 2002 ITC introduced itself in the staples market by offering wheat flour with the
brand Aashirvaad. The Aashirvaad brand was extended to edible salt in the year 2003 by ITC.
In 2006, ITC had 40 percent share in the market of the whole packaged food industry worth
Rs 6 billion. Its biggest Competitor was Annapurna brand by HUL which had a market share
of just 18 percent. The market growth rate was 12 percent. ITC extended the Aashirvaad
brand by launching mixers, salt and ready-to-cook pastes under the Aashirvaad Umbrella. In
the organized salt market worth Rs. 4 billion (2006), ITC had a market share of mere 5
percent compared to the market leader, Tata salt with market share of 28 percent.

MARKET SHARE
ITC

HUL

PILLSBURY

OTHERS

24%
41%
13%
21%

5. Snacks
The Indian Snacks industry is valued to be of 1800 Core Rs. and is growing at a remarkable
10% every annum. In the world the Indian snack market is the largest and is dominated by
potato chips which have a share of about 85% in the total snacks market. ITC has been able
to penetrate quickly into the market through its brand Bingo by its adaptive pricing technique
and unique promotion.
.

MARKET SHARE
FRITOLAYS

HALDIRAM

ITC

12%
16%

27%

45%

OTHERS

10

COMPANY CULTURE
ITCS VISION
MAINTAINING ITS POSITION AS ONE OF THE VALUABLE CORPORATION IN
INDIA BY PROVIDING WORLD CLASS PERFORMANCE.
TO CREATE INCREASING VALUE FOR THE STAKEHOLDERS AND ULTIMATELY
TO THE INDIAN ECONOMY.
ITCS MISSION
TO IMPROVE THE POTENTIAL OF THE COMPANY IN THE GLOBAL
ENVIRIOMENT
OFFER SUSTAINAIBLE AND STAKEHOLDER VALUE.
DESIGN
AS PER THE CULTURE AND STRUCTURE OF ITC,IT CAN BE CONCLUDED THAT
ITCS DESIGN IS ROUGHLY BASED ON DIVITIONAL STRUCTURE.THE
DIFFERENT INDUSTRIES ARE AUTONOUMOUS UNITS BUT THEY ARE ALL
CONTROLLER BY THE BOARD AND CORPORATE MANAGEMENT COMMITTEE
WHICH IS THE TOP LEVEL.THE OPERATING AND STRATEGIC DECISION MAKING
POWER IS IN THE HANDS OF THE DEVISIONAL MANAGERS.
IN THE DECEMBER 2010 QUATER OF SALE OF POTATOCHIPS UNDER THE BINGO
GREW BY 48 PERCENT.IN THE CATOGARY OF BISCULT ,SUNFEAST INCREASED
BY PERCENT WHERE THE PRODUCT MIX HAS BEEN PROVED.THE KEY
DRIVERS IN THE GROWTH OF THE BUSINESS IS BISCULT AND SNACKS.

11

ANALYSIS AND DISCUSSION

ITC MARKETING STRATEGY ANALYSIS ITC HAS BEEN A LEADER IN THE
TOBACCO BUSINESS,BUT IT REALIZE FROM THE UP COMING TRENDS THAT
THE REMAINING WITH A SINGLE BUSINESS IS NOT A NOBLE THOUGHT
,MOREOVER THE COMPANY WAS THREATENED OF THE ANTI TOBACCO
CAMPAIGN.THEREFORE THE COMPANY DECIDED TO DIVERSIFY INTO VARIOUS
FIELDS LIKE IN INFO TECH THROUGH ITC INFO TECH,IN THE GREETING CARD
WITH EXPRESSION,FOOD THROUGH KITCHENS OF INDIA AND UNDER THE
NAME OF WIL SPORT INTO LIFESTYLE RETAILING.IT WAS INTENTED THAT
EACH FIELD WOULD DRAW ABOVE 25 MILLION GDP BY THE YEAR.
ITC FOOD IS FOCASING MAINLY ON THEIR SHORT TERM AND MIDTERM GOALS
WHICH CAN BE SEEN BY THE COMPANY RIGOUROUS EFFORTS OF HEAVY
INVESTMENT AND MARKETSHARE CAPITALIATION STRATEGIES.THE ITC FOOD
STRUCTURE IS MARKET ORIENTED AS THEYARE FOCUSING OF PENETRATING
THE MARKET DEEPLY.
IN THE FOOD DIVISION OF ITC LEARDERSHIP IS RATIONAL SINCE THE LEADER
FUNCTION LOGICALLY ACCORDING TO THE MARKET SHARE .SKILL OF THE
LEADER WERE PORTRAYED EASILY WHEN HE MADE OPTIMAL USE OF ITC S
FOOD DIVITION .THE ITC DISTRIBUTION NENETWORK WAS USED VERY
EFFICIENTLY WHEN THEY LAUNCHED THE FOOD PRODUCTS ACCROSS THE
NATION.

12

ITC CORPORATE STRATEGY

FOLLOWING ARE THE CORPORATE STRATEGIES SET UP BY ITC.
TO MAINTAIN THE GROWTH DRIVERS AND MATCHING THE INTERNAL
CAPABILITIES OF THE FIRM TO THE OPPORTUNITY IN THE GROWING MARKET.
FOLLOW EXCELLENT COMPETIVINESS IN ALL THE DIFFERENT BUSNINESS AND
EVEN THROUGHOUT THE WHOLE VALUE CHAIN.
IT IS THE BEST IN TERM
PROFITABILITY
MARKET STANDING
INTERNAL VITABILITY
GOVERNANCE PROCSSES AND STRATIGIES OF THE FIRM EQUPPED TO
CONTROL THE DIFFERENT BUSNINESS
BLEND OF CORE COMPETENCIES AND LEVERAGING ITC UMBERELLA
POSITIVES TO FORM NEW AREAS OF GROWTH.

13

ITCS STRATEGIES WITH RESPECT TO PACKAGED FOODS ARE

ENTRY INTO PACKAGED FOODS
THE BIG DECISION
IT WAS A STRATEGIC DECISION BT ITC TO ENTER INTO FOOD BUSNIESS.THE
COMAPANY TOBACCO BUSINESS WAS UNDER JEOPARDY DUE TO MANY
FQACTORS SUCH AS BANS BY THE GOVERMENT ON SMOKING AND
ADVERTISING IN THE PUBLIC PLACE,ANTI TOBBACCO MPOVEMENT WITH
EXTENSIVE CSR ACTIVITIESAND DECIDED TO USE SURPLUS IN THE HUGE
PACKAGED FOOD WHICH HAD A BIG POTENTIAL.
ITCS PORTRAYED AN EXCEPTIONAL EG OF COMBINING ITS INTERNAL CORE
COMPETENCIES TO GROW AS AN ORGANISATION BY ENTERING FOOD
BUSNIESS.IT STARTED IN AUGUST 2001 BY INTRODUCING KITCHEN OF INDFIA
INDIA READY TO EAT DISHES.IN GTHE YEAR 2002 ITC INTRODUCED STAPLES
AND CONFECTIONARY SEGMENTS BT LAUNCHING ATTA AND THAT IS WHEAT
FLOUR AND CANDYMAN ABD MINT O CONFECTIONARY,THEY ENTERED THE
BISCULT SEGMENT BY INTRODUCING SUNFEST ON 2003 ABD SNACKS
SEGMENT BY LAUNCHING BINGO IN THE YEAR 2007 THE FOOD BUSUINESS
HAS REACHED GREAT HEIGHT IN JUST 7 YEARS AND OFFER ALMOST 200
VARIED PRODUCTS UNDER 6 DIFFERENT BRANDS HAS A WIDE DISTEIBUTION
REACH STRONG MARKET STANDING AN MARKET SHARE IN GROWING
RAPIDLY.
MARKET ENTRANCE
IT WAS STRATEGIC DECISION ON THE PART OF ITC TO ENTER THE FOOD
BUSINESS IN THE YEAR 2001 .ITS FOCUS WAS ON UNLEASHING THE MARKET
WHERE THERE WAS NO COMPETITION OR HARDLY ANY.IN THE YEAR 2008 ITC
Declared its wish to cater to the frozen food segment in the Indian market.
DIVERSIFICATION OF PRODUCTS HAS BEEN ITC S SUCCESSFUL
STRATEGY.WHERE BINGO IS CONSIDERED IT INTRODUCED SIXTEEN
DIFFERENT FLAVOURS IN COMPARISION TO LAYS ITS BIGGEST COMPETITIOR
WHICH IS AVAILAIBLE ONLY IN FOUR FLAVOUR.THE CAN BE SEEN IN THE
BISCULT AND READY TO EAT SEGMENT ALSO.

14

MAKRKET DIFFERENTIATION
ITC DIVERSIFIED IN THE PACKAGED FOOD DIVISION BY INTRUDUCING READY
TO COOK PRODUCTS UNDER THE KOL BRAND.THESE PRODCUTS ARE PRENIUM
AND TARGET GROUP INCLUDES NRI ETC.IT LAUNCHED VARIED PRODUCTS IN
THE ALL THE SEGMENT OF BISCULT WITH
BUTTERSCOTCH,ORANGE,MARIE,BISCULT,WITH CHILLI FLAKES HONEY
FLAVOURED BISCULT.
MAINTENANCE OF FRESHNESS AND HYGIENE
ITC ENSURED THAT THE SUPPLY CHAIN GAVE POSITIVE RESPONSE AND
STRESSED ON FORECASTING THE SALES ACCURATELY WITH THE HELP OF MIS
SYSTEM SYSTEM THROUGH INPUTS FROM SALES PERSONAL AND
DISTRIBUTOR.THE COMPANY WORKED ON MINIMIZING THE TRANSIT NORMS
COMPANY SPECIPIC.THE TANGIBLE CHARACTRISTIC OF SUPPLY CHAIN SUCH
AS THE TRUCKS AND WAREHOUSE WERE CONTROLLED AND MONITERED TO
RETAIN CLEARLINESS.
REGULAR INTRODUCTION OF NEW PRODUCTS
ITC GAINED A REASONABLE MARKET SHARE IN A SHORT TIME AND THUS
RECOGNISED THAT IT WAS NECESSARY FOR THE COMPANY TO COME UP WITH
NEW PRPDUCTS ON REGULAR BASIS TO BE IN THE COMPETITION.HENCE ITC
IS INCRESING ITS PRODUCT RANGE AND ALSO ITS DISTRIBUTION NETWORK.
INNOVATION
ITC HAS CHANGED ITS FOCUS TO INNOVATION WHEN THE NEED AND TIME
CAME TO LAUNCH NEW PRODUCTS.ITS FOR ALL ITS PRUDUCTS COULD
IDENTIFY THE NICHE OR MAKRKET INNOVATIVELY.

PRICE
COST CONTROL STRATEGY
ITSS MAIN CHALLENGE WHEN IT ENTERED THE FOOD DIVISION WAS TO
COMPLETE WITH THE EXISTING PLAYERS.IT RECOGNISED THAT IT WILL HAVE
TO PAY THE PRODUCTS EQUIVALENT TO THE COMPETIOTORS PRICE OR EVEN
LESS SO AS TO OVER COME THIS CHALLENGE.FOR THIS ITC PALNNED TO USE
THE STRENGTH OFF THE BUSNINESS OF THE COMPANY BUSINESS OF THE
COMAPANY.ITC PACKEGING AND PRINTING BUSINESS INITIATIVE ITC GAINED
COST ADVANTAGE OVER ITS RIVALS.THE FACILATATED THE COMPANY TO
PROCURE RESOURCES TO THE FULLEST EFFCIENCY.

15

PLACE
DISTRIBUTION NETWORK
THE DISTRIBUTION NETWORK OF ITC WAS ALREADY HUGE BECAUSE OF ITS
TOBACCO BUSINESS. THE SAME NETWORK OF DISTRIBUTION WAS USED BY
ITC FOR ITS WAFERS AND BISCUITS. THROUGH THIS THE PRODUCTS GOT A
GOOD LAUNCH AND IT ALSO FACILITATED IN INCREASING SALES. AT THE
MOMENT ITCS BINGO AND SUN FEAST ARE OFFERED IN ABOUT 1.8 MILLION
STORES WHILE PANE IS OFFERED IN ONLY 1.5 MILLION STORES. FOR KITCHENS
OF INDIA, ITC LTD HAD TO JUST APPEND TO THE ALREADY WELL
ESTABLISHED NETWORK AND ENJOY THE LARGER MARKET SHARE. ITC USES
FIFO METHOD TO REDUCE THE WASTAGE OF GOODS DUE TO EXPIRY. THEY
ALSO KEEP THE GOOD ON CONSTANT MOVE FROM LOW SALES AREA TO HIGH
SALES AREA. THE COMPANY COLLECTS ALL THE EXPIRED GOODS FOUR TIMES
A YEAR, AND DESTROYS THEM. RETAILERS MUST RETURN EXPIRED OR
DAMAGED PRODUCTS WITHIN SIX MONTHS AFTER THE DATE OF EXPIRE.
ADJUSTMENT FOR THEM IS DONE IN THREE MONTHS TIME. ITC PROVIDES
THEIR RETAILERS WITH RACKS, HANGERS, ETC TO DISPLAY THE PRODUCTS.
THE BENEFITS RECEIVED BY THE RETAILERS DEPEND UPON THEIR SALES
VOLUME AND ALSO THE LOCATION OF THEIR SHOPS.
PROMOTION
EXTENSOR ADVERTISING
IT IS THE DIFFERENCE IN ADVERTISING ITC SHOWED A DIFFERENCE WIN
COMPARED TO ITS COMPUTERS. THEY APPOINTED THE BEST AMBASSADORS
AND THE BUTT PROFESSIONAL SO THAT THEIR 1WODUCTS ARC RAIOWNECT
THE MARKETING CAMPAIGN FOR MOTTO AND BINGO WERE AWARD WINNING
THEY HIRED THE MOST FAMOUS STARS FROM THE SPORTS AND FILM
INDUSTRY FOR CG SHIN TCNDULKAR AND SHAHRUKH KHAN FOR BISCUITS
AND FOR MINK FRESH RAKHI SAWANT W HIRED. PER DAY. PER CHANNEL ON
TELEVISION ITC BOOKED 10- 1$ SPOTS ON YOUTH CHANNELS LIKE STAR
WORLD AND MW, NEWS CHANNELS AND HINDI CHANNELS LIKE STAR AND
ZEE TV. IT ADVERTISED ON RADIO CHANNELS AND II NATIONAL DAILIES TOO.
THE PRODUCTS WERE EVEN ADVERTISED THROUGH HOARDMG.S IN THE TOP
THIRTY CITIES, AS R THE INDUSTRY ANIS ,THE COMPANY SPOIL SOMCSTIAC
ARIA HUNDRED CORES ON MARKETING. THESE PROMOTION ACTIVITIES
MADE LITRES PRODUCES KNOWN IN THE MARKET AND HELPED IN
ATTRACTING CONSUMERS.
TO SUM UP...
IN THE YEAR 2003 BY CNIENNG THE BISAAS MARKET AND INTRODUCING 3
DIFIERENT TPCI OF BISCUITS SUCH CREAM, MANE AND GLUCOSE. ITC DID
WHAT ANY NESTS ENTRANT WOULD DO E EMULATING AND IMITATING
BRITANNIA AS IT WAS THE LENDER. THEIR STRATEGY FOALED ON PRODUCING
THOSE PRODUCTS ISIIICH WERE SUCCESSFUL FROM BEFORE, LIT

16

INTRODUCED NEW FLAVOURS WHICH WOE NEVER BEFORE MADE ONCE THEIR
BRAND SASS RECOGNISED IN THE MARKET. SPIED WAS A CRUSH OF ITCS
PLAN OF EXPLOITING THE OPPORTUNITY THROUGH NEW PRODUCTS. FINALLY
BY BUNCHING BINGO IN THE 2007 AND WITH THE HELP OF THE STRATEGIES
MENTIONED ABOVE. ITC BECAME SUCCESSFUL IN ITS FOOD

INNOVATION AND COMPETITIVE STRATEGY FOR DESIGNING THE

MARKETING MIX
MARKETING MIX DEVELOPMENT FOR SUN FEAST BISCUITS
IN CHENNAI, TWENTIETH APRIL 2004 THE FOOD DIVISION OF ITC LTD
ANNOUNCED THE SUN FEAST VARIETY OF BISCUITS BY INTRODUCING
MARIE, GLUCOSE AND CREAM BISCUITS. ACCORDING TO ITC CHENNAI
BRANCH MANAGER MR AMBIT SAT APATHY SUN FEAST MARKED THE ENTRY
OF ITC FOODS IN THE BRANDED BISCUIT MARKET AND OFFERING BISCUITS IN
BOTH VALUE ADDED AND BASIC SEGMENTS. THE BRAND ESSENCE OF SUN
FEAST, SPREAD THE SMILE DENOTES CONTENTMENT, PLEASURE, HAPPINESS
AND SATISFACTION THAT A PERSON WOULD GET FROM THE BISCUITS. THE
SUN MASCOT REINFORCES THE BRAND IMAGERY AND POSITIONING BY
EXPRESSING THE GRATIFYING AND EMOTIONAL FEATURES OF THE PRODUCT.
FOR LAUNCHING THE NEW RECIPE OF BISCUITS, ITC DID A MARKET
RESEARCH. IT WAS REVEALED BY THE RESEARCH THAT THERE WERE GAPS IN
THE SEGMENT WHICH THE COMPANY COULD USE AND THE CONSUMERS
DESIRED TO EXPERIENCE NEW DIFFERENTIATED INNOVATIVE PRODUCTS. IT
CAN BE REVEALED THAT THE EXISTING PLAYERS DID NOT COME UP WITH
INNOVATIVE PRODUCTS. THERE WAS HARDLY ANY INNOVATION IN THE
BISCUIT INDUSTRY AS MARIE WAS MARIE AND GLUCOSE WAS STILL GLUCOSE,
SO ITC DECIDED TO ATTACK ON THIS POINT. IN THE YEAR 2003, SIX RANGES OF
SUN FEAST WERE LAUNCHED BY THE COMPANY. BUT THE RISK WAS
CALCULATED. ITC WAS NOT ONLY STUCK WITH THE FAVOURITE CATEGORIES
OF BISCUITS LIKE BOURBON CREAM, MARIE AND GLUCOSE BUT ALSO
LAUNCHED INNOVATIVE BISCUITS SUCH AS MARIE LIGHT, CREAM BISCUITS
WITH BUTTERSCOTCH FLAVOUR AND ALSO MARIE WITH ORANGE FLAVOUR.
THE SUN FEAST UMBRELLA GREW BY INTRODUCING SUN FEAST MILKY
MAGIC IN THE YEAR 2004. LATELY IT HAS INTRODUCED THE SUN FEAST
GOLDEN BAKES AND SUN FEAST SNACK. ITCS ANNUAL EXPENDITURE ON
MARKETING IS ESTIMATED AROUND RS115-120 CORES AND IS ONE AMONG
THE LARGEST SPENDERS ON PROMOTIONS AND ADS IN THE BISCUITS
SEGMENT. PRICING MODEL OF SUN FEAST BISCUIT. FOR INITIAL OFFERINGS,
SUN FEAST GLUCOSE BISCUITS WHICH DELIVERED THE GOODNESS OF WHEAT,
IS AVAILABLE IN 19 GEMS, 75 GEMS, 100 GEMS PRICED AT RE 1, RS. 3, RS. 4
RESPECTIVELY, WHICH TARGETED THE CHILDREN FROM 4 YEARS TO 14

17

YEARS. SUN FEAST ORANGE MARIE OFFERED IN A DIFFERENTIATED WAY IN

PACKINGS OF 200 GEMS, PRICED AT RS. 13,AND THE CRISPY &LIGHT SUN
FEAST MARIE LIGHT WERE OFFERED FOR THE HOUSEWIVES IN PACKINGS OF
400 AND 200 GRAMS WHICH WERE PRICED AT RS 24 AND RS 13 RESPECTIVELY.
SMOOTH AND YUMMY CREAM BISCUIT , SUN FEAST BOURBON CREAM ,SUN
FEAST BUTTERSCOTCH CREAM , SUN FEAST ORANGE CREAM , ALL THESE
BISCUITS ARE AVAILABLE IN A PACKING OF 100 GRAMS AND ARE PRICED AT RS
12, RS 12, RS 11, AND RS 11 RESPECTIVELY. THESE BISCUITS TARGET THE
CHILDREN BETWEEN THE AGE GROUP OF 4 TO 14 YEARS. ITC PLACED ITSELF
IN THE SEGMENT WHERE IT COULD COMPETE WITH THE BULLIES IN THE
MARKET AND SURVIVE WITH COST FOCUS.
AFTER AN YEARS RESEARCH AND DEVELOPMENT IN THE PRODUCTS AND
WIDE SPREAD SAMPLING THROUGHOUT THE COUNTRY THE FOOD DIVISION
OF ITC LTD AS THEY ARE AHEAD IN PRODUCT INNOVATION CAME UP WITH 2
NEW FLAVOURS BUTTERSCOTCH CREAM AND ORANGE MARIE BISCUITS.
THESE BISCUITS WERE LAUNCHED IN THE INDIAN MARKET FOR THE FIRST
TIME. THE MARKET SHARE OF BOTH BRITANNIA AND PARLEY IS REDUCING AS
INDICATED BY AC NIELSON. ACCORDING TO THE MARCH2006 SALES AUDIT,
THERE IS LOSS IN THE VOLUMES OF BOTH PARLEY AND BRITANNIA.
BRITANNIAS SHARE DROPPED TO 30.5 PERCENT IN MAY 2006 FROM 35.8
PERCENT IN THE YEARS 2004-05(VOLUMES) AND PARLEY SHARE DROPPED TO
38.4 PERCENT FROM 42.2 PERCENT DURING THE SAME PERIOD. THE BISCUIT
MARKET IN INDIA IS APPROXIMATELY AROUND 4500-5000 CORES AND IS
DOMINATED BY BRITANNIA AND PARLEY.

PARLEY IS CONSIDERED AS THE VOLUME LEADER AND INCLUDES BRANDS

LIKE MONACO, KRACKJACK AND PARLEY-G WHEREAS THE VALUE LEADER IS
BRITANNIA AND COMPRISES OF BRANDS LIKE GOODDAY, TIGER, MILK BIKIS,
50:50 ETC. BUT NOW THIS MARKET HAS MOVED AWAY FROM THE CORE. ITCS
SUN FEAST SHARE HAS INCREASED TO 6.7 PERCENT FROM 2.7 PERCENT.
WHERE VALUE IS CONCERNED, THE MARKET IS LEAD BY BRITANNIA WHICH
HAS 37 PERCENT SHARE, PARLEY 32.3 PERCENT AND LASTLY ITC WITH
6.3PERCENT. HOWEVER, THERE IS STILL A WIDE GAP AND HENCE SUN FEAST
HAS A LONG WAY TO GO. BOTH PARLEY AND BRITANNIA ARE BIG PLAYERS
AND HAVE HIGH VOLUMES, THUS THEY CAN EASILY LOWER THEIR MARGINS.
SO FOR SUN FEAST TO BE IN THE RECKONING IT WILL ALSO HAVE TO LOWER
ITS PRICES WHICH WILL SQUEEZE THE MARGIN FURTHER. AT PRESENT THE
GAME IS NOT FULLY PLAYED BUT TODAY SUN FEAST IS THE BRAND WHICH IS
PREFERRED.

18

ITC BINGOS MARKETING MIX PRODUCT STRATEGY

BINGO POSITIONED ITSELF AS CHIPS WITH AN INDIAN TWIST. THE 16
FLAVOURS INTRODUCED AT LAUNCH WERE CAREFULLY DEVELOPED
THROUGH R&D. THE INITIAL OFFERINGS WERE A MIX OF POTATO CHIPS AND
FINGER SNACKS. THE POTATO CHIPS SEGMENT INCLUDES VARIANTS LIKE
MACULA, SALTED, TOMATO INSPIRED BY THE SNACKING HABITS OF THE
INDIAN CONSUMER THE OFFERINGS UNDER FINGER SNACKS INCLUDED THE
CHAKRA WHICH IS INSPIRED BY MAD ANGLES AND LIVE WIRES INSPIRED
PAYOLAS. THESE OFFERINGS WERE FURTHER DIFFERENTIATED BY PROVIDING
SKUS AT RS. 5, RS.10 AND RS. 20 . PRICING STRATEGY THE MAIN OBJECTIVE
FOR ITC WAS TO SEE THROUGH THE EXISTING COMPETITION IN THE MARKET.
HENCE, IT LAUNCHED A DIRECT FRONTAL ATTACK BY INTRODUCING SIMILAR
PRICED SKUS. ITC ALREADY ENJOYED COST ADVANTAGE OVER
COMPETITORS THROUGH ITS INITIATIVES. ONE OF THEM WAS E COPAL. THE
TIMELY SUPPLY OF RAW INPUTS AND MATERIALS ARE ALSO FACILITATED
THROUGH THIS. ITCS PACKAGING AND PRINTING BUSINESS HAS LED TO
INNOVATIVE, COST EFFECTIVE AND HIGH QUALITY PACKAGING.
PROMOTIONAL STRATEGY DURING THE WORLD CUP THE LAUNCH OF BINGO
WAS STRATEGIC TO CASH IN ON THE POPULARITY OF SNACKS AMONG THE
CRICKET LOVERS OF THE COUNTRY. THE ADVERTISING STRATEGY REVOLVED
AROUND SLAPSTICK HUMOUR AND IRRELEVANT THEMES TO HOLD
EYEBALLS, GARNER ATTENTION AND INTEREST, AND STAND OUT FROM THE
CLUTTER. BINGOS ADVERTISEMENT WAS A PERFECT COMBINATION OF
INNOVATION IN ADVERTISEMENT AND CREATIVITY. PER DAY, PER CHANNEL
10-15 SPOTS WERE BOOKED BY ITC, 20 SPOTS ON RADIO STATIONS SUPPORTED
BY 1000S OF HOARDINGS ADVERTISING THE PRODUCT. ACCORDING TO
INDUSTRY ESTIMATES, THE TOTAL ADVERTISING SPEND IN THE INITIAL 6
MONTHS WERE ROUGHLY 100 CORES. WHILE ITS COMPETITOR FRITO-LAY
FOCUSES ON CELEBRITY ENDORSEMENTS, BINGO CHOSE A DIFFERENT ROUTE.
IT DIDNT HAVE AN AMBASSADOR!

AS THE PRODUCT IS AIMED AT THE YOUTH, DIGITAL MEDIA WAS HE AVIDLY

USED. FOR INSTANCE, THE BINGO NATIONAL GAMING CHAMPIONSHIP ACROSS
4 CITIES WITH MORE THAN 25,000 PARTICIPANTS. BINGEONBINGO.COM AND
MAD ANGLES TWISTER APPLICATION (FACE BOOK) WERE OTHER INITIATIVES
IN ONLINE MEDIA.

19

DISTRIBUTION STRATEGY ITC ALREADY HAD A WELL-ESTABLISHED

DISTRIBUTION NETWORK THROUGH ITS CIGARETTE AND TOBACCO RELATED
OFFERINGS WHICH WERE LEVERAGED IN CASE OF BINGO. FURTHER, THE
COMPANY DISTRIBUTED 4 LAKY RACKS ACROSS ALL RETAILERS FOR THE
BENEFIT OF DISPLAYING THE BRAND AT MAXIMUM POINTS OF SALE. WITHIN 6
MONTHS, BINGO WAS AVAILABLE ACROSS THE WHOLE COUNTRY AMONG 2,
50,000 RETAILERS. A CRUCIAL ALLIANCE WHICH HAPPENED WITH THE FUTURE
GROUP LEAD TO ALL FUTURE GROUP RETAIL OUTLETS LIKE BIG BAZAAR,
FOOD BAZAAR STOCKING JUST THE BINGO BRAND. LOCAL BETEL
SHOPS, HORECA (HOTELS, RESTAURANTS AND CAFES), WERE USED FOR
DISTRIBUTING BINGOS TO THE VARIED CLASSES OF AUDIENCES.

THUS IT WAS PROVED IN THE CASE OF ITC FOODS THAT INNOVATION AND
COMPETITIVE STRATEGY WERE RESPONSIBLE FOR THE DESIGN OF
MARKETING MIX.

20

ITC STRATEGY ANALYSIS

ITC BY ENTERING THE FOOD SECTOR CREATED A HUGE IMPACT ON ITS
PROGRESS. THIS INVOLVED A BIG RISK BUT DUE TO THE STRATEGIES IT WAS
ABLE TO MITIGATE IT.
THE DIFFERENT STRATEGIES ITC ADOPTED WERE: THEY INTRODUCED SIX
FLAVOURS IN SUN FEAST WHICH NO OTHER LEADING BISCUIT COMPANY HAD
DONE AND THUS WERE ABLE TO CREATE INTEREST AMONG PEOPLE AND
CHILDREN ESPECIALLY.
TO PROMOTE THEIR BRAND THEY APPLIED THE STRATEGY OF CELEBRITY
ENDORSEMENT AND THEIR BRAND AMBASSADOR WAS MADE AS SHAHRUKH
KHAN. THIS INCREASED THE DEMAND AS SHAHRUKH KHAN IS FAMOUS
AMONGST CHILDREN.
THE SUN FEAST BISCUITS HAD A DIFFERENT TASTE THAN THE OTHERS
WHICH INCREASED THE CRAVING FOR NEWER TASTE
. ITC ALSO LAUNCHED MANY OTHER FAMOUS BRANDS LIKE EASY-TO-COOK
PRODUCTS, SUN FEAST PASTA-TREAT ETC.
THE EASY-TO-COOK PRODUCTS WERE WELL LIKED BY THE INDIANS DUE TO
THE FAST LIFE. THEY CONTINUOUSLY INNOVATE AND CREATE HIGH QUALITY
NEW BRANDS AND PRODUCTS WHICH HELPED THEM TO CREATE CUSTOMER
LOYALTY.
QUALITY NEVER COMES CHEAP BUT THE SAME QUALITY CAN BE
PROVIDED IN A REASONABLE PRICE. THE PRODUCTS OF ITC IN CONTEXT TO
QUALITY ARE AT PAR TO THE QUALITY OF OTHER PRODUCTS IN THE MARKET
AS WELL IS PRICED REASONABLY.
THE FINE ADVERTISEMENT POLICIES CARRIED OUT BY THEM HAS
ENCOURAGED THE CUSTOMERS TO TRY THEIR PRODUCTS ONCE AT LEAST.
FOR INSTANCE THEIR ADVERTISEMENT IN WHICH A KID ENTERS A CREAM
WORLD CREATES EXCITEMENT AMONG CHILDREN WHICH LEADS TO
INCREASING SALES. ITC'S TAGLINE "SPREADING THE SMILE" IS VERY
ATTRACTIVE FOR PEOPLE. SUN' THEIR MASCOT CREATES A HEALTHY AND A
HAPPY FEELING AMONG THE CONSUMERS SEEING IT

21

INTRODUCTION
PROCESSED FOODS INDIA :
PROCESSED FOODS HAVE BEEN MAJORLY RESPONSIBLE FOR THE CHANGE IN
CONSUMPTION, WHERE THE PROCESSED FOODS IN THE NET FOOD MARKET
ACCOUNT FOR MORE THAN 32 PERCENT. THE INDIAN MARKET IS ESTIMATED
TO BE US$ 91.66 BILLION OUT WHICH PROCESSED FOOD ACCOUNTS FOR US$
29.4 BILLION. ACCORDING TO CONFEDERATION OF INDIAN INDUSTRY (CII), IN
THE SPAN OF COMING 10 YEARS THE FOOD PROCESSING SECTOR IS CAPABLE
TO ATTRACT US$ 33 BILLION IN TERMS OF INVESTMENT AND EMPLOYMENT
TO 9 MILLION PERSON-DAYS. THE GOVERNMENT OF INDIA HAS FRAMED AND
EXECUTED NUMEROUS PLAN SCHEMES WITH A VIEW OF PROVIDING
FINANCIAL HELP FOR CREATION OF INFRASTRUCTURE, DEVELOPMENT AND
MODERNIZATION OF THE FOOD PROCESSING UNITS, RESEARCH AND
DEVELOPMENT , SUPPORT FOR HUMAN RESOURCE DEVELOPMENT AND
VARIOUS OTHER PROMOTIONAL MEANS SO THAT THE COUNTRYS PROCESSED
FOOD SECTOR GROWS. THE FOOD PROCESSING SECTOR IS ENORMOUS AND IT
INCLUDES MANY ACTIVITIES LIKE PLANTATION, HORTICULTURE,
AGRICULTURE, ANIMAL HUSBANDRY AND FISHERIES. IT EVEN COMPRISES OF
VARIOUS INDUSTRIES THAT EMPLOY AGRICULTURAL INPUTS FOR
PRODUCTION AND MAKING OF OTHER EDIBLE PRODUCTS. AS PER THE INDIAN
GOVERNMENT, FOOD PROCESSING MINISTRY, THE FOOD PROCESSING
INDUSTRY CONSIST DO THE FOLLOWING SEGMENTS: PROCESSING OF FRUITS
AND VEGETABLE PROCESSING, POULTRY, FISHERIES, DAIRY, PROCESSING OF
GRAINS, MEAT PROCESSING, LASTLY CONSUMER FOODS WHICH INCLUDE
BEVERAGES, PACKAGED FOODS AND PACKAGED DRINKING WATER.
EVEN THOUGH THE FOOD PROCESSING INDUSTRY IS QUITE HUGE, IT IS STILL
AT AN EMERGING STAGE. JUST 2 PERCENT OF THE COUNTRYS TOTAL
PRODUCTION WHICH INCLUDES AGRICULTURAL DEVELOPMENT AND FOOD
PRODUCTION IS PROCESSED. THIS INDUSTRY IS PROJECTED TO GROW AT 9-12
PERCENT IN THE PHASE OF 2002 - 2007. VALUE ADDITIONS IN FOOD AND FOOD
PRODUCTS ARE LIKELY TO RISE BY 35 PERCENT BY 2025, FROM THE CURRENT
8 PERCENT. VEGETABLE AND FRUIT PROCESSING, WHICH IS 2 PERCENT OF THE
NET PRODUCTION HAS INCREASED TO 10 PERCENT BY THE YEAR 2010 WHERE
AS IT IS EXPECTED TO BE 25 PER CENT BY 2025.
THE DAIRY SECTOR CONTRIBUTES MAXIMUM TO PROCESSED FOODS, WHERE
37 PERCENT PRODUCTION IS PROCESSED OF THE TOTAL DAIRY PRODUCTION.
OUT OF WHICH, ORGANIZED SECTOR ONLY PROCESS 15 PER CENT. IN THE
APPROACHING DECADES THIS BUSINESS IS ON THE PATHWAY TO SAFEGUARD
PROFITABILITY AND PULL EXCEPTIONAL INVESTMENTS WORTH RS
1400BILLION OR MORE.

22

23

CONCLUSION:
IT CAN BE CONCLUDED THAT, THEY HAVE EXCELLED IN INNOVATING,
ADVERTISING, MARKETING AND OFFERING HIGH QUALITY PRODUCTS. AS A
RESULT OF THESE ACTIVITIES ITC HAS GAINED A LOT IN A SHORT TIME AND IS
CHERISHED AMONG CHILDREN. THEIR GROWTH HAS BEEN TREMENDOUS
OVER THE LAST 3-4 YEARS AND WILL CONTINUE GROWING IN THE COMING
YEARS AS THE COMPANY IS QUITE INNOVATIVE, STABLE AND UNDERSTANDS
THE NEEDS OF THE MARKET. NO DOUBT IT HAS BEEN FULFILLING THE NEEDS
AND DEMANDS OF THE CONSUMERS. ITC CAN BECOME THE MARKET LEADER
WITHIN A FEW YEARS IF IT KEEPS UP TO ITS STANDARDS OR IMPROVES IT.

24

BIBLIOGRAPHY
HTTP://TUTOR2U.NET/BUSINESS/MARKETING/RESEARCH-SECONDARY.HTML
HTTP://WWW.COURSEWORK4YOU.CO.UK/ESSAYS-ANDDISSERTATIONS/GENERALBUSINESS/STRATEGIC-MODELS/PORTER-S-5-FORCES
ANALYSIS/PORTERS5FORCESANALYSIS.PHP
HTTP://WWW.EXPERIMENT-RESOURCES.COM/CASE-STUDY-RESEARCHDESIGN.HTML
HTTP://WWW.INDIANFOODINDUSTRY.NET/ [ONLINE]. [ACCESSED 28/11/2016].

HTTP://WWW.UOGUELPH.CA/HTM/MJRESEARCH/RESEARCHPROCESS/RESEARC
HDESIGNDATACOLLE CTIONTECHNIQUESANDSELECTIONOFSUBJECTS.HTM
PHILIP KILTER. WWW.MARKETINGTEACHER.COM [ONLINE]. [ACCESSED
28/11/2016]. AVAILABLE FROM:
HTTP://WWW.MARKETINGTEACHER.COM/LESSON-STORE/LESSONWHAT-ISMARKETING.HTML
WWW.IMAGESRETAIL.COM [ONLINE]. [ACCESSED 27/11/201600]. AVAILABLE
FROM:
HTTP://WWW.IMAGESRETAIL.COM/SUPPORT_JAN_SUPLYCHAIN.HTM

25

CONTENT