Description
PRESENTATION ON MARKETING STRATEGIES OF ITC
By: Neha Punjabi Ankit Agarwal
INTRODUCTION
• ITC Limited, is an Indian conglomerate
with a turnover of US $ 6 billion and a market capitalization of over US $ 22 Billion.
• The company is currently headed by
YOGESH CHANDER DEVESHWAR.
CONTD…
• It employs over 26,000 people at more
than 60 locations across India and is listed on FORBES 2000.
• ITC Limited completes 100 years on 24th
August, 2010.
ITC Business Portfolio
FMCG
Cigarettes Foods Personal Care Lifestyle Retailing
,
Education & Stationery
Matches
Incense Sticks
Hotels
Paper & Packaging
Agri Business
Information Technology
Cigarettes…
• W. D. & H. O. Wills • Gold Flake • Navy Cut • Insignia • India Kings • Classic (Verve, Regular, Mild & Ultra Mild)
Contd…
• Silk Cut • Scissors • Capstan • Berkeley • Bristol • Lucky Strike • Flake.
Strategies
? Market leadership ? Powerful brands across segments
? Extensive FMCG distribution network
? Direct serving to 2 million retail outlets
Hotels…
• ITC Welcomgroup Hotels, Palaces and
Resorts is India's second largest hotel
chain with over 100 hotels.
They have 4 brands in hotels
competitors
• TAJ GROUP OF HOTELS
• OBEROI GROUP OF HOTELS
Strategies
• Their strategy has been clearly to focus on a
few niche areas and provide unique and differentiated value propositions to their guests.
• Their brands ITC Hotel, Welcome Hotel, Fortune
and Welcome Heritage, which spans luxury to mid-market segments, have been on a growth trajectory in recent months. They have leveraged the unique advantages that India offers in terms of diversity and heritage.
Contd…
Category
Luxury Upper upscale Upscale - mid-scale Heritage
Brand
ITC Hotel: Luxury Collection WelcomHotel: Sheraton Fortune Hotels WelcomHeritage
Positioning
"Mansions of Luxury" "Passion for Quality" "Promise of True Value" "Unique Experiences"
• The physical architecture of their
properties are unique and offer a local flavour to discerning guests.
In FMCG, ITC has a strong presence in:
Foods business • Kitchens of India
• Aashirvaad
• Minto • Sunfeast • Candyman
Contd…
• Bingo brands in ready to eat. • Staples
• Confectionery • Snack Foods
Personal Care Products business
• • • • •
Fiama di Wills Vivel Essenza di Wills Superia brands of products in perfumes
Haircare and skincare
Safety Matches and Agarbattis
• • • •
Ship (through ownership of WIMCO) IKno Mangaldeep Aim brands
Competitors
• HUL
• BRITANNIA • PARLE • NESTLE
Strategies
• Their strategy is to consolidate and offer a
greater range in the existing categories and grow these markets.
Agri-business…
• ITC's Agri-Business is India's second largest
•
exporter of agricultural products. ITC is one of the India's biggest foreign exchange earners (US $ 2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet.
Contd…
• The company places computers with
Internet access in rural farming villages; the e-Choupals serve as both a social gathering place for exchange of information (choupal means gathering place in Hindi) and an e-commerce hub.
ABHISHEK JAIN • Soya Farmer & e-Choupal Sanchalak Dahod Village, Raisen District, Madhya Pradesh
ABHISHEK JAIN
Before ITC introduced us to e-Choupal, we were restricted to selling our produce in the local mandi. We had to go through middlemen and prices were low. ITC trained me to manage the Internet kiosk and I became the e-Choupal Sanchalak in my village. Today we are a community of e-farmers with access to daily prices of a variety of crops in India and abroad – this helps us to get the best price. We can also find out about many other important things – weather forecasts, the latest farming techniques, crop insurance, etc. e-Choupal has not only changed the quality of our lives, but our entire outlook.
Contd…
• E-Choupal • States covered • Villages covered • No. of e-Choupals • Farmers e-empowered
Now 10 40,000 6,500 4 million
Strategies
Paper boards & specialty papers
• Coated Virgin Boards • Coated Recycled Boards
• • • •
Barrier Poly Coated Cast Coated Graphic Others
Contd…
• • • • •
Cigarette Tissue and Components Fine Printing Packaging Decor Papers Niche Products
Business wise Sales data
Business/ Year FMCG-Cigarettes FMCG-Others Growth Value (Rs in Crore) % 2005 2004 8.4 85.2 10002.54 9230.27 563.39 304.16
Hotels
Agribusiness Paper & pkg. Net revenue
124.1
4.2 24.9 12.99
577.25
1780.07 1565.31
257.53
1708.77 1253.29
13349.58 11815.04
CAGR during FY 2005-2008
Category CAGR Growth parameters Cigarettes 10.9 % Pricing power Hotels Paper Agri business FMCGOthers 22.7% Inward traffic, occupancy
17.2 % Capacity utilization, value added products 34.3 % E-choupal, choupal sagar,
60.2 % Fast track, decent share.
Market share of ITC Ltd.
• Outstanding market leader
Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports. • Gaining market share Nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.
Segment Cigarettes Paper & Packg. Agri business Hotels
Dominance 70% share Packaging board – No. 1 in Asia 1of the largest xporters from India ITC Group ranks No.2
Contribution % Revenue PBIT 77.0% 87.7% 7.3% 7.0% 4.3% 10.7% 3.7% 5.4%
FMCG (Others)
20% share of greeting cards market, 'Aashirvaad' atta is No.1 in branded segment
4.4%
-7.5%
The BCG Matrix for ITC Ltd.
Stars •Hotels •Paperboards/ Packaging. •Agri business. Cows •FMCG-Cigarettes ? •FMCG- Others
Dogs
Major strategies followed by ITC:
• Entering into less competitive or unexplored
• • • •
markets (ready to eat, staples, wafers) Distribution network Market differentiation ( Ready to eat, biscuits) Cost control strategy (all products) Extensive advertising (biscuits, confectionary, wafers) Regular introduction of new products (all products)
•
doc_305739959.ppt
PRESENTATION ON MARKETING STRATEGIES OF ITC
By: Neha Punjabi Ankit Agarwal
INTRODUCTION
• ITC Limited, is an Indian conglomerate
with a turnover of US $ 6 billion and a market capitalization of over US $ 22 Billion.
• The company is currently headed by
YOGESH CHANDER DEVESHWAR.
CONTD…
• It employs over 26,000 people at more
than 60 locations across India and is listed on FORBES 2000.
• ITC Limited completes 100 years on 24th
August, 2010.
ITC Business Portfolio
FMCG
Cigarettes Foods Personal Care Lifestyle Retailing
,
Education & Stationery
Matches
Incense Sticks
Hotels
Paper & Packaging
Agri Business
Information Technology
Cigarettes…
• W. D. & H. O. Wills • Gold Flake • Navy Cut • Insignia • India Kings • Classic (Verve, Regular, Mild & Ultra Mild)
Contd…
• Silk Cut • Scissors • Capstan • Berkeley • Bristol • Lucky Strike • Flake.
Strategies
? Market leadership ? Powerful brands across segments
? Extensive FMCG distribution network
? Direct serving to 2 million retail outlets
Hotels…
• ITC Welcomgroup Hotels, Palaces and
Resorts is India's second largest hotel
chain with over 100 hotels.
They have 4 brands in hotels
competitors
• TAJ GROUP OF HOTELS
• OBEROI GROUP OF HOTELS
Strategies
• Their strategy has been clearly to focus on a
few niche areas and provide unique and differentiated value propositions to their guests.
• Their brands ITC Hotel, Welcome Hotel, Fortune
and Welcome Heritage, which spans luxury to mid-market segments, have been on a growth trajectory in recent months. They have leveraged the unique advantages that India offers in terms of diversity and heritage.
Contd…
Category
Luxury Upper upscale Upscale - mid-scale Heritage
Brand
ITC Hotel: Luxury Collection WelcomHotel: Sheraton Fortune Hotels WelcomHeritage
Positioning
"Mansions of Luxury" "Passion for Quality" "Promise of True Value" "Unique Experiences"
• The physical architecture of their
properties are unique and offer a local flavour to discerning guests.
In FMCG, ITC has a strong presence in:
Foods business • Kitchens of India
• Aashirvaad
• Minto • Sunfeast • Candyman
Contd…
• Bingo brands in ready to eat. • Staples
• Confectionery • Snack Foods
Personal Care Products business
• • • • •
Fiama di Wills Vivel Essenza di Wills Superia brands of products in perfumes
Haircare and skincare
Safety Matches and Agarbattis
• • • •
Ship (through ownership of WIMCO) IKno Mangaldeep Aim brands
Competitors
• HUL
• BRITANNIA • PARLE • NESTLE
Strategies
• Their strategy is to consolidate and offer a
greater range in the existing categories and grow these markets.
Agri-business…
• ITC's Agri-Business is India's second largest
•
exporter of agricultural products. ITC is one of the India's biggest foreign exchange earners (US $ 2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet.
Contd…
• The company places computers with
Internet access in rural farming villages; the e-Choupals serve as both a social gathering place for exchange of information (choupal means gathering place in Hindi) and an e-commerce hub.
ABHISHEK JAIN • Soya Farmer & e-Choupal Sanchalak Dahod Village, Raisen District, Madhya Pradesh
ABHISHEK JAIN
Before ITC introduced us to e-Choupal, we were restricted to selling our produce in the local mandi. We had to go through middlemen and prices were low. ITC trained me to manage the Internet kiosk and I became the e-Choupal Sanchalak in my village. Today we are a community of e-farmers with access to daily prices of a variety of crops in India and abroad – this helps us to get the best price. We can also find out about many other important things – weather forecasts, the latest farming techniques, crop insurance, etc. e-Choupal has not only changed the quality of our lives, but our entire outlook.
Contd…
• E-Choupal • States covered • Villages covered • No. of e-Choupals • Farmers e-empowered
Now 10 40,000 6,500 4 million
Strategies
Paper boards & specialty papers
• Coated Virgin Boards • Coated Recycled Boards
• • • •
Barrier Poly Coated Cast Coated Graphic Others
Contd…
• • • • •
Cigarette Tissue and Components Fine Printing Packaging Decor Papers Niche Products
Business wise Sales data
Business/ Year FMCG-Cigarettes FMCG-Others Growth Value (Rs in Crore) % 2005 2004 8.4 85.2 10002.54 9230.27 563.39 304.16
Hotels
Agribusiness Paper & pkg. Net revenue
124.1
4.2 24.9 12.99
577.25
1780.07 1565.31
257.53
1708.77 1253.29
13349.58 11815.04
CAGR during FY 2005-2008
Category CAGR Growth parameters Cigarettes 10.9 % Pricing power Hotels Paper Agri business FMCGOthers 22.7% Inward traffic, occupancy
17.2 % Capacity utilization, value added products 34.3 % E-choupal, choupal sagar,
60.2 % Fast track, decent share.
Market share of ITC Ltd.
• Outstanding market leader
Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports. • Gaining market share Nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.
Segment Cigarettes Paper & Packg. Agri business Hotels
Dominance 70% share Packaging board – No. 1 in Asia 1of the largest xporters from India ITC Group ranks No.2
Contribution % Revenue PBIT 77.0% 87.7% 7.3% 7.0% 4.3% 10.7% 3.7% 5.4%
FMCG (Others)
20% share of greeting cards market, 'Aashirvaad' atta is No.1 in branded segment
4.4%
-7.5%
The BCG Matrix for ITC Ltd.
Stars •Hotels •Paperboards/ Packaging. •Agri business. Cows •FMCG-Cigarettes ? •FMCG- Others
Dogs
Major strategies followed by ITC:
• Entering into less competitive or unexplored
• • • •
markets (ready to eat, staples, wafers) Distribution network Market differentiation ( Ready to eat, biscuits) Cost control strategy (all products) Extensive advertising (biscuits, confectionary, wafers) Regular introduction of new products (all products)
•
doc_305739959.ppt