MARKETING MANAGEMENT-II

PROJECT

DONE BY-
GROUP- 4, SECTION- B
2019MBA061
2019MBA065
2019MBA077
2019MBA083
2019MBA056
 MARKETING MANAGEMENT-II PROJECT
1. Undertake the marketing environment analysis and assess the marketing opportunities
available for your chosen company.

The environmental analysis is done by using SWOT analysis:

STRENGTHS WEAKNESSES
Very strong and experienced management
Brand presence, excellent products
Tobacco products are the main source of
advertising
revenue contributing more than 60% of the
Diversified product and services portfolio total revenue in a year
which includes FMCG, Hotel chains, paper &
Competitors have cheaper substitutes
packaging and agri-business
The hotel segment has been unable to gain a
Over 6500 E-Choupal CSR activities and
huge market share
sustainability initiatives enhance ITC’s brand
image reaching over 4 million farmers Way too many brands are presence in ITC and
its business is expanded to various different
Strong network of Employees over 25,000
industries which is causing brand dilution
people
Excellent research and development facilities

OPPORTUNITIES
High Potential to tap and deeply penetrate
the rural market and unreached urban areas
due to strong distribution channels
Large Cash reserve could help in Mergers and
acquisitions to strengthen the brand portfolio
( based on ITC Annual Report 2018-2019)
Increasing purchasing power of people
thereby increasing demand
Premium Hotel chain to publicity of hotel
chains to increase market share
THREATS
Intense domestic and international
competition in various industries set to grow
in upcoming years
Regulations and Increasing Taxation in
Cigarette Business can hinder the revenue
from the highest revenue generating product
New market entrants that may challenge the
company with niche innovations
 After assessing the above opportunities, it can be realized that the distribution channels of the
ITC is very well established to even penetrate the rural markets. Which means that ITC can even
capture the market of other FMCG products, for example the detergent market, to earn
substantial profits.

2. Evaluate the current product portfolio for your chosen company, the target segment and the
positioning being adopted by the company currently.

ITC Product Portfolio (FMCG)

 Cigarettes and Cigars

 Food
 Personal Care
 Education and Stationery
 Lifestyle Retailing
 Safety Matches
 Agarbattis and Dhoop

Brands Mix of the Products

Cigarette Food Persona Education Matches and Lifestyle

s and l Care Agarbatti
Cigars

Insignia Aashirvaad Essenza De ClassMate AIM WLS

Wills
India Kings Sunfeast Dermafique Paper Mangal
Craft deep

Classic Bingo Fiama Homelites

Gold Flake Kitchens of India Vivel
American Club Yippee Engage
 Navy Cut B-Natural Superia
Players Minto nimyle
Scissors CandYMan Savlon
Capstan GumOn Shower to
Shower
Berkeley Fabelle Charmis
Bristol SunBean
Flake WonderzMilk
Silk Cut ITC Master Chef Chef
Duke & Royal Farm Land

Some Well Recognized Brands

Aashirvaad: The brand has seven kinds of products with product mix width of 7. Different types
of product are being sold in name of this brand and those are atta, superfoods, salt, ghee, dairy
products, spices and instant mix.

a. Atta: Different products in this category are Aashirvaad Whole Wheat Atta, Aashirvaad Atta with
Multigrains, Aashirvaad Select Atta, Aashirvaad Sugar Release Control Atta, Aashirvaad Fortified
Atta. Depth of product mix in atta is 5.
b. Superfoods: Gluteen free flour, Ragi flour and Multi Millet flour.
c. Salt: Aashirvaad Salt.
d. Ghee: Aashirvaad svasti ghee
e. Dairy Products: Aashirvaad Svasti fresh dairy products are consists of Toned Milk, Double Toned
Milk, Cow Milk, Full Cream milk, Pouch Curd and Paneer. Depth of product mix here is 7.
f. Spices: In this segment Aashirvaad is currently selling Chilli, Turmeric, Coriander, Cumin, Garam
masala and Koora Karam powder with a depth of product of 7.
g. Instant Mix: This range includes Gulab Jamun, Rava Idli, Rice Idli and Rice Dosa.

Sunfeast: Sunfeast has two types of product category and those are biscuit and cake.

a. Biscuit: Sunfeast has wide ranges of products in biscuit segment. These varieties are
Sunfeast Farmlite Active Protein Power, Sunfeast Milk Biscuits, Sunfeast Farmlite Digestive
High Fibre, Sunfeast Farmlite Digestive, Sunfeast Farmlite, Sunfeast Dark Fantasy Choco Fills,
Sunfeast Dark Fantasy Choco Fills Luxuria, Dark Fantasy Coffee Fills And 18 more varieties of
products. Depth of product mix here is 7.
b. Cake: Sunfeast produces Dark Fantasy Yumfills Cake, Choco Jellifills Cake and Bounce cake in
this category and those have different variants.

Bingo: In name of Bingo brand ITC is selling different types of Chips like potato chips, Bingo Mad
Angles, Bingo Tedhe Medhe and Bingo No Rulz. In these category they have different product
mix depth.

Yippee and B-Natural: Yippee and B-Naturals are quite well recognized brand and are selling
noodles and fruit drinks respectively.
Fiama: ITC has different premium segment products in name of Fiama and Fiama has shower
gel, hand wash, soap bars and talc. Later the company did down market stretch and come up
with low range product in different brand name called Vivel.

Savlon: In initial days Savlon came with only antiseptic. Later it came up with Savlon soap,
handwash and sanitizer with different packaging.

Classmate: ITC has very popular brand in notebook category with brand name classmate.

So it was found ITC has wide ranges of product in almost in every category with different brand
name to segregate and categorizes different business section.

STP for Cigarettes

Sale of Cigarettes contributes to maximum revenue for ITC and it has the largest market share
among all its competitors such as Marlboro, Wills etc. The income levels of the population has
been considered for STP.

Segmentation

 Economy
People in the low income bracket falls in this category. Cigarettes such as Flake, Silk Cut and
Players etc., which are low priced cigarettes (Rs 50-60/packet), cater to the needs of the
people

 Mid-Range
People in the average income bracket belongs to this category. Cigarettes like Classic, Gold
Flake, and Navy Cut, which are priced in the medium, range (Rs 140-150/packet), serves the
requirements of the people in this bracket

 Premium
People in the premium segment falls in this category. Cigarettes like Insignia, India Kings,
American Club and Duke Royal (above Rs 170/packet) cater to the needs of the people in this
bracket

Targeting
All the potential customers like teenagers started smoking out of pleasure; addicted as well as
occasional smokers are targeted to increase sales in their respective categories. The population
in the mid-range seems to be on the higher side to contribute significant revenue for ITC.

Positioning
Customers addicted to nicotine, conditional triggers such as triggers based on situations when a
person is with certain people, when people are upset, tensed or happy are major factors, which
decides how ITC position itself.
Sunfeast Biscuits:

 Market Sizing:

The biscuit market share was $3.9 billion in 2016 in India. CAGR is projected to grow at 11.27%.

Competition:

The major competitors for ITC in biscuit market are Britannia and Parle.

Parle has 35% market share in biscuit market whereas Britannia has 38%.

Compared to this ITC has 25% market share.

 Segmentation & Targeting:

The company had segmented its products according to different age groups and price range.

Dark fantasy: It is a premium product and it caters adult consumers with high involvement in
purchase.

Mom’s magic: It is a mid-range product and it caters all age group consumers with medium
involvement

Marie Light: It is a mid- range product and it caters adult and older age consumers with high
involvement

 Positioning:

ITC has positioned itself with its competitors in the biscuit market with its products similar to its
competitors. The prices of the products are also very similar to its competitors. It is now the
competing for the market share only depending on the distribution and better marketing using
advertisement.

STP Analysis of Aashirvaad Atta:

Segmentation:

 Market Sizing:

Out of 120 million metric tons of wheat produced in India 102 million metric tons approx are
used to produce whole wheat flour (atta) in locally situated stone mills or chakkis. This in turn is
used to cater to the large wheat consumer base all over India (predominantly Northern part of
the country).

Domestic Per Capita consumption of wheat (chakki atta) in India in 2019 is 98 million metric
tons. (ref. indexmundi.com)
Market share of Aashirvaad atta is 56% (market leader in this segment).

 Competition:

Shakti Bhog is the closest competitor to Aashirvaad atta at 20% contribution in the atta market.
(ref. www.coursehero.com)

 Demography and Geography:

The dominant market for wheat in India lies in the North with the States such as Uttar Pradesh,
Madhya Pradesh, Rajasthan, Haryana, Punjab and Gujarat among the leaders in chakki atta
consumption.

Targeting:

The consumption of wheat in India is distributed among all age groups. ITC being a customer
centric brand has created products in this segment keeping in mind to target several
requirements of the prospective consumers. The brand of ITC creates a perceived difference of
Aashirvaad atta amongst the minds of customers in comparison to the other brands present in
the market with not much difference in quality among the closest competitors.

Positioning:

Aashirvaad atta has created a brand image of its own so much so that its products are known
both in the urban and rural India equally. ITC creates a value proposition by using its sourcing
capabilities to buy the raw harvested wheat from the farmers directly and processing them to
bring out an indigenous organic brand image in the minds of the consumers. Aashirvaad has
created a variety of products in this segment which specifically targets a whole range of
customers, However, the the price differences among these products are kept less because of
the day-to-day consumption perception of atta products. Some of the varieties of Aashirvaad
aata along with their prices are given below.

Atta - Whole Wheat (1kg): Rs 77, Sugar Release Control: Rs 64, Multigrain Atta (1kg): Rs 58.20,
Select Atta (1kg): Rs 55.29