ITC

Turning over
a new leaf
Group 4
Cecilia Paul
Divya Pavar
Nishanth
Prasanna
Introduction
 Company Background
From a modest
beginning as a Agri business -
tobacco company Entry into Strengthening
in the year 1910 hospitality sector Farmer Linkages

1910 1925 1975 1979 1990 2000

packaging and Paperboards and Lifestyle Retailing

printing vertical speciality Papers and Information
integration Development of a technology
backward area
 Fast moving Consumer Goods industry
4th largest sector in the Indian economy
CAGR of 14.7% to touch US$110.4 billion in 2012-
2020

FMCG Food market is the leading sector with 43% of

market share, 22% personal care and 12% fabric
Industry care
As awareness increased among they youth, growth
rate in rural areas is 16% and all the companies
are trying to capitalize on the opportunity
Growth in Urban areas is 12% and moving towards
premium and luxury products
Competition
Cigarettes industry Ready to eat category

Market share in terms of volume Market share in terms of volume

ITC 65% Haldirams 36.75%

VST 13%
Amul 35.75%
Godfrey Philips 12%
MTR 18.75%
GTC 9%

Others 1% Others 8.75%

Strategy - Differentiation
Strong distribution network
Consistent promotional support
Focused R&D
Internal and external pressures

Internal pressures
Difference of opinion between the management and the main promoter (BAT)

Regulations
1975 - the Cigarettes (Regulation of Production, Supply and Distribution) Act
statutory warning on the cigarette packs

2000 - the Cable Television Network (Regulation) Amendment Bill

Curb on Cigarette advertisements
Consumer insight

Major determinants in Changing trends

buying decision

Health Taste

Lifestyle
Brand communication
Case question
Thank you