MARKETING REAL LIFE PROJECT

on
ITC FOODS
Presented by:

Group G
Amrit Agarwal
Harish Rammohan G.
Ankush Kumar Gupta
Mayur Kumar Lakhmani
Neetisha Arya
Pritha Preshi Sharma
 Agenda
• 7 Values Model
• Environmental factors – External & Internal
• Segmentation, Targeting & Positioning
• Product Mix
• Competitive Analysis
• Social Responsibility
7 VALUES MODEL
 VALUE EXPLORATION
After thorough analysis of the market, ITC entered into the branded &
packaged Food business in Aug 2001 with the launch of kitchens of India

ITC understood Indian taste preferences - successfully ran famous

restaurants such as Bukhara and Dum Pukht

Translated this expertise into providing food products which would suit
consumer needs.

Conducted extensive market research and crafted products based on

consumer insights
 Value definition

ITC's Core Values are aimed at developing a customer-focused, high-performance

organisation which creates value for all its stakeholders

ITC strives to provide value in terms of quality of products to consumers thus

maintaining long term relationships with them and therefore it follows Relationship
Value Model in segments such as Aashirvaad, Sunfeast and Bingo

In case of CandyMan and Minto, it follows Low Cost Value Model – high competition,
low cost products

The Ready-to-Eat segment belongs to Convenience Value Model. Includes KoI,

Aashirvaad ready to eat meals, spice pastes and conserves
 Value proposition
Maintain highest standards of food safety and hygiene

Implement world-class hygiene standards through HACCP certification

Customer Focus

Respect For People – Consumers & Employees

Excellence & Innovation

The unwavering commitment to internationally benchmarked quality standards

enabled ITC to rapidly gain market standing in all its 6 brands
 Value offering

Augmented Benefits at minimum costs

Quick to realise that the foods business in India requires sound

knowledge of local tastes and preferences

ITC Foods Chief Executive Chitaranjan Dar - "Food is a very

personalised category. It's not like soap. You can get some space if
you can create differentiation"

"Brands will need to be fragmented to cater to local tastes and

preferences. So there can be no omnibus product which can be a
national hit."
 Value Delivery

ITC's competitive advantage from day one has been procurement of

commodities. The agri-business division of ITC connects with 5 million
farmers in 170 districts of 16 states
E Choupal helps to cater to the flour requirements for biscuits

Huge distribution network due to tobacco business

Thus facilitating good launch and effective promotion of products

Products are distributed in 1.8 million networks whereas Parle products

are distributed in only 1.5 million outlets
 Value Relationships

Continuously striving for quality and hygiene in its food products by implementing
HACCP

Delivers on the commitment to its customers by consistently addressing their needs

on product quality, value and overall satisfaction

It respects the values of people and also encourages people to pursue their dreams,
values their differences and helps them to experiment in pursuit of various
opportunities

Success over hundred years – proof to its success delivers results in a manner that
actualizes stakeholder’s interests on a long term basis.
 Value assessment
Continuous improvement necessary

Innovation- . "Customers can lose interest if we do not innovate continuously" Dar admits

"So you need to look at new textures, flavours and shapes regularly. In terms of flavours, our target is one or
two launches a year. In texture and shape, there should be one new product in two years. There are eight to
ten flavours always in the pipeline in various stages of development.“

Bingo's positioning is such that it needs to come out with new flavours and
advertisements all the time

Always on the strive for newer products – constantly manufacturing new flavours never
heard of

Strong desire to exploit new product and market opportunities

 External
Environme
ntal factors
Demographic Factors
• Greater proportion of people
in middle ages

• Population migration trends –

From rural to urban areas –
developed infrastructure
eased supply chain challenges

• Increasing number of families

with two working members

• Greater demand for snacks,

confectionary, ready-to-eat
food items and spice mixes
Competition
 MARKET SHARE
Ready to eat Confectionary

Staples Biscuits
 Strategies to overcome competition

Began by entering markets with little or no competition e.g. Ready to Eat food. Later
extended to Aashirvaad atta and salt

Utilised its huge tobacco distribution network to distribute biscuits and wafers

Market differentiation – 16 flavours of Bingo compared to 4 of Lays

Regular introduction of new products

Focus on health and hygiene – better packaging technology

 Technology
Improved quality of
service as technology
improved

Maintenance of
freshness & hygiene of all
products – especially
ready-to-eat products
 Economic factors
Growing economy – Increased purchasing power

Income Distribution
Middle income group : Aashirvaad range of staples
Higher income group : Kitchens of India

Economic Downturn / Weak Consumer:

Consumers postpone buying cars, televisions and that frees up a lot of money to spend on everyday
needs
Consumers push relentlessly for the best value in non-discretionary categories
ITC Foods is positioning itself for offense, on the back of meaningful innovation

Credit and pricing dynamics drive reduction of inventories at some retailers, distributors and
wholesalers
Internal factors
3 tier management structure – Chairman & BOD, Corporate Managing committee and
divisional CEOs

Decentralized decision process in management

Diversity – unique characteristic and strength

Utilisation of efficient supply chain to deliver quality products at competitive prices

Market Development Organisations (MDOs) - tailor the global programmes for local
markets and develop market strategies

Prediction of the changing market demand is key driver to ensure innovation at ITC
Competitive analysis
 Porter’s 5 Force Model
With increasing Various competitors
competition, like Parle and others
consumers want are trying to enter
quality at lowest into the lucrative
possible price food market

The cost of raw Highly innovative

materials is market. Need to
increasing hence come up with
putting the industry frequent innovations
in a fix. ITC benefits
from e-choupal.

Highly competitive industry with rivals having

greater experience.
Porter’s Value Chain Model
 SWOT Analysis
●
Experience of transporting and distributing tobacco products

Strengths ●

●
Master Chefs from hotel business
Since ITC is a diversified company, brand value is higher

●
Even after diversifying into various sectors, tobacco is associated with

Weaknesses ●
its name which relates to negative aspects
To fund its innovation and R&D in food division, it is still dependent on
its tobacco products

●
e-Choupal
Opportunities ●
ITC is moving into new and emerging sectors such as information
technology which can be used for supporting business solutions

Western companies are trying to penetrate in the Indian

Threats
●

food market since it is a lucrative sector

●
High penetration of HUL and other competitors
SEGMENTATION, TARGETING
& POSITIONING
Segme ●
Different strategies for North
India and South India
ntation ●
Aashirvaad atta, spices, bingo

Targeti ●
KoI targeted at tourists, NRI’s etc.
●
Sunfeast Pasta targeted at children
ng
 ●
Extensive advertising
●
Hired celebrities to make their
products famous
●
Sachin Tendulkar, Shahrukh Khan
Positio ●
and Rakhi Sawant
On television booked 10 - 15

ning spots/channel/day, radio and

national dailies
●
Spent close to Rs. 100 crore on
marketing so far
●
Increased product awareness
PRODUCT MIX
 Kitchens of India

Curry Pastes Conserves Chutneys Biryanis Desserts

• Butter • Strawberry • Shredded • Noor- • Jodhpuri

Chicken & Mint Mango mahal Moong
• Fish Curry
BREADTH • Mango & Dal Halwa
DEPTH

• Dum Aloo • Pineapple Jeera • Bohri

• Chicken & Green • Mango & • Awadhi
Chettinad Pepper Garlic • Yakhni badam
• Malabar • Tamarind & Pulao Halwa
Chicken • Apple & Date
Stew Cinnamon • Papaya & • Hyderab • Hazoori
• Mughlai Raisin adi Petha
Paneer • Mango & • Hot Mango Mutton Halwa
• Paneer Saffron • Tomato
Darbari Chilli
 Aashirvaad

Flour Salt Spices Instant Mixes

• Select Atta • Aashirvaad • Chilli Powder • Gulab Jamun

Salt
• Superior MP
BREADTH • Turmeric • Rava Idli
DEPTH

Wheat Atta
• Coriander • Rice Dosa
• Atta with
Multigrains • Pickle Mirch • Khaman
Dhokla

• Rasmalai

• Vada Mix
 Sunfeast
Snacky & Cream & Golden Bakery
Special Biscuits Pasta
Glucose Marie & FitKit
• Butter • Chilli Flakes • Orange • Choconut • Masala
Marie
• Cashew • Classic • Butternut • Cheese
BREADTH • Choco
DEPTH

Salted
• Crunchy Cream • Butter- • Pizza
• Orange Scotch
• Coconut Glucose • Vanilla • Chicken
Cream • Vitamin
• Milky • Benne Vita
Magic • Orange • Multigrain
Cream
• Nice
• Milk
Cream
 Confectionary

MINT-O CandyMan

• Minto Cool Blue • Fruit Fun

• Butter-Scotch Licks

BREADTH
DEPTH

• Minto Fresh • Eclairs

• Cofitino
• Orange Mint • Natkhat Mango
• Natkhat Guava
• Lemon Mint • Mango Licks
• Maha Mango
• Lacto
 Bingo

Potato Chips Mad Angles Hatke Jhatke

• Salted • Tomato Mischief • Funky Masala

DEPTH

• Masala

• Tomato
BREADTH
• Chilli Dhamaka

• Achaari Masti
• Tomato Twist

• Chatkila Nimbu
Achar

• Tandoori Paneer
Tikka
SOCIAL RESPONSIBILITY
 Envisioning a larger societal purpose has always
Vision been a hallmark of ITC

The company believes in the twin goals of

Goals shareholder value enhancement and societal
value creation

Committed to a national agenda of raising

Commitment agricultural productivity and making the rural
economy more socially inclusive
 Launched e-Choupal in 2000, a knowledge portal
E-Choupal providing farmers with a range of information
and services

Followed by launching Mission Sunehra Kal, a

Sunehra Kal rural capacity building program fostering local
initiatives to develop water and forest resources

Sustainable
Initiatives include women’s empowerment &
Community supplementary education
Development

Watershed Brings water to more than 46,200 hectares of

Development dry land and moisture-stressed areas