Name

Title
Company Name
*One of the worlds most reputable company
Market capitalization of nearly US $ 18 billion
post tax profit of US $ 750 million
Diversified product portfolio
Direct group employment of 29000

Introduction to Sunfeast

Growth rate of 53%
Turnover of over 1000 crore
Wide categorization
Launched in July, 2003
ITC Biscuits industry come out to be around
Rs 4000 crores
In 2003, the biscuit market in India was estimated to be about 0.8
million ton, with a Value of about Rs. 45 billion. The share of the
organized sector in the biscuit market was estimated to be about 50
%. BRITANNIA and PARLE held more than 80% of the organized Sector
share in value terms. The market was growing at a rate of 5% to 8%
This was the scenario which ITC decided to enter with its
Sunfeast range of Glucose , Marie, and Cream biscuits . ITCs market
research had shown that urban India, which Comprised about 27% of
the population, accounted for almost 44% of the biscuit consumption.
Market research also revealed that consumers were looking for
innovation , variety, and fun in all the biscuit categories
ITC, therefore , decided to enter the branded biscuit market with
The product that would reinforce the gratifying aspects of the brands
as well as offer great taste and quality to customers.
Products at a Glance
Annual Growth:

The biscuit industry in India witnessed annual growth as below:-

2005-06 - 14%
2006-07 - 13%
2007-08 - 15%
2008-09 - 10%
2009-10 - 14%
2010-11 - 15%
Press Report 2005
ITC Ltd today reported a 17.9 per cent
rise in post-tax profit for the third quarter
(Q3) ended December 31, 2004, at Rs
448.94 crore on the back of a 10 per
cent rise in net sales for the quarter at
Rs 1795 crore.
Targeting
Sunfeast Glucose targeted children in the age group
4-14 years and their mothers, Sunfeast Orange Marie
and Marie Light were targeted at
housewives/families. Sunfeast Cream (orange,
butterscotch, and bourbon) was also targeted at
children. The Orange Marie and butterscotch cream
variants were introduced after a year long product
R&D effort and extensive sampling covering 14,000
consumers. Gradually, the product line was expanded
(Refer Table II for the product list in 2006)...
STP
Segment
Taste and Quality conscious children and
adults
Target Group
All age groups middle and upper class
people
Positioning Ideal tea time biscuit
Biscuit Segmenting Targeting Pricing
Sunfeast glucose biscuit
Natural goodness of
wheat
Children between
the age group 4-14
yrs & mothers
100gms - Rs. 4,
75gms - Rs 3,
19gms - Rs. 1
Sunfeast orange marie
A very differentiate
offering Housewives 200gms - Rs. 13
Sunfeast marie light
Tight and Crispy Housewives
200gms - Rs. 13
, 400gms - Rs.24
Sunfeast orange cream

Smooth and yummy
Cream
Children between
the age group 4-14
yrs 100gms - Rs.11
Sunfeast Butterscoth
Cream

Smooth and yummy
Cream
Children between
the age group 4-14
yrs 100gms - Rs. 11
Sunfeast bourbon
cream
Smooth and yummy
Cream
Children between
the age group 4-14
yrs 100gms - Rs12
FACTORY
C&F
WHOLESALE
DISTRIBUTOR
WHOLESALE
DEALER
BASE
RETAILER
Parent Company ITC
Category Biscuits
Sector Food Products
Tagline/ Slogan Light Khaao Light Raho; Spread the smile
USP
Ideal teatime biscuit is made from the finest quality wheat high
in fibre and keeps one light and healthy through the day
SWOT Analysis
Strength
1. Low cost 2.Good advertising and visibility 3.Good product
quality and packaging 4.Celebrity brand ambassador

Weakness 1. Many competitors in this segment 2.Nothing unique

Opportunity 1. Tie-up with corporates/hotel chains


Threats
1. Severe threat from wafer and salted snacks segment
2.Similar biscuit categories
Competition
Competitors
1. Britannia
2. Parle G
Competitors Analysis

The major Competitors are

Britannia
90% of annual revenue comes from the biscuits
Wide range of biscuits
Good distribution network of around 3 million stores
Parle
Oldest and largest selling brand in glucose segment (70% share in glucose
segment)
Low price range of biscuits
Plays with high volume and low profit margin
Products:-
Sunfeast glucose
Sunfeast marie light
Sunfeast dream cream
Sunfeast dark fantasy
Sunfeast snacky
Sunfeast sweet n salt, nice
Sunfeast special
Sunfeast benne vita flaxseed biscuits
Place:-
Distribution network:-
The company used its existing network of convenience stores: the
companys name for the hole-in-the-wall pan-beedi shops for Sunfeast.

The company also looked at grocery stores and other retail formats.

The company says the brand is now available in nearly 1.8 million
outlets.

Manufacturing units:-
14 manufacturing units
The company has extended its manufacturing capacity by setting up three new
biscuit plants in UP and West Bengal to focus on supply chain management strategy
to enhance product freshness, market servicing and margins
Promotions:-
Advertisements & promotions: 35-40% of turnover
Sunfeast school programme: cover 1000 schools across country, to
familiarize children with sunfeast brand name and sunfeast mascot.
Brand ambassador: shahrukh khan & surya (south actor)
Official sponsor of WTA tennis championship-sunfeast open.
Launch of Sachins Fit Kit, the first product co-created with brand
ambassador.
Other activities:
On buses, print media , hoardings, TV and radio advertisements

Price:-
Sunfeast look at a two prolonged strategy:-
High margin & High volume
(High margins in cream variants and volumes from the
Marie and Glucose segments)

examples-
sunfeast glucose (200 gm): 20/-
sunfeast marie light (130gm : 10/-
Sunfeast dream cream (82): 10/-

Food products are normally a
high volume ball game. Products
have to essentially be available in
the market at all given points of
time and at all given points of
purchase.
The skeleton of distribution system
is same for all the companies but it
depends on efficient sales and
distribution system of a firm how
well they manages them
ITC done very well in this case
CONCLUSION