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8/3/2019 Assignment - Group 3 - Rev 2.8
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Presentation MarketingManagement
EMBA Semester I (Batch 2011 14)Presented by
Shubh, Mahesh, Pushkar, Prabodh, Vikas,
Mohammad Ali, Sai Prashanth, Vasanth, Vishnu
4/27/2012 1Group 3
Inspiring Years
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List of Participants
4/27/2012Group 3 2
Name Roll Number
Shubh 230-41?????????
Mahesh 230-20
Pushkar 230-30
Prabodh 230-27
Vikas 230-52
Mohammad Ali 230-40
Sai Prashanth 230-37
Vasanth Kumar 230-50
Vishnu 230-48
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4/27/2012Group 3 3
Brands & Products
Scope of the presentation
ITC Ltd Company profile
Analysis for ITC
Introduction Understanding and Scope
4
1
2
3
5
Sales & Marketing growth6
Agenda
Promotions, Brand Ambassadors7
Conclusion, Appendix8
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Scope
India Market scenario
Worlds Youngest nation - median age of 25 years
Growing Urbanization, increased disposableincome
Consumer expenditure(1) on Food, Beverage &tobacco is US $ 286.9 M
Food
Meat consumption 6.6 kg/head
Vegetable consumption 94 kg/head
Beverage
Tea consumption 0.7 kg/head
Soft drinks, sales volume 4,941 million litres
India Market Value Forecast(2) prediction is US $17,468.7 M (increase by 29.5% since 2009)
Indian food sector to have volume of 28,668Million transactions (increase of 31.4% since
2009) 4/27/2012Group 3 4
Year 2005-2009 India Asia
FoodservicemarketCAGRgrowth rate
7.9%
China 14.3%
Japan 0.1%
Share of
foodservicesegmentation
18.5%
China
38.5% Japan
29.8%
NOTE:(1)-
As per Economist Intelligent report for India projected for 2009
(2)- Data Monitor reports, by 2014
Market Mix consideration Labor intensive
Low Margin with lowswitching costs
Supply chain leads andmoderate rivalry
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ITC Company profile
ITC started as Imperial Tobacco Company. 70% of market share with GoldFlake.
100 year old headquartered in Kolkata. 49% of turnover from Cigarettes business
Market capitalization of over $33 Billion.
Employs over 26,000 people
Presence in over 60 locations across India
Listed on Forbes 2000 4/27/2012Group 3 5
Hotel Business - ITC
Welcomegroup Hotel Chola
Cigarettes andLeaf Tobaccobusiness
Packaging andPrinting Business
Paperboardsbusiness
Indo-Nepal and British jointventure - Surya Nepal PrivateLimited
1) Acquired Tribeni Tissues
LimitedPaperboards & Specialty Papersdivision
Agribusiness Division
1) Greeting, Gifts, Stationary
2) Lifesytle Retailing business3) ITC Infotech India Limited
1) Food business2) Safety matches
Aug 24 1910 20021925 1979
1975 1985 1990 2000 2005
FineFragrance,
bath and body
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About ITC Ltd
4/27/2012Group 3 6
Vision:Sustain ITCs position as one of India's
most valuable corporations through
world class performance , creating
growing value for the Indian economy
and the company's stakeholders
Mission:
To enhance the wealth generating
capability of the enterprise in a
globalizing environment, delivering
superior and sustainable stakeholder
value.
Core Values:ITCs core values are aimed at
developing a customer focused, high
performance organization which creates
value for all its stakeholders
Trusteeship
Customer Focus
Respect for people
Excellence Innovation
Nation Orientation
Slogan: Enduring Value
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Paper board& Packaging
ITC Ltd Business & products
HotelsFMCG Agri Business
4/27/2012 7Group 3
Cigarettes & Cigars
Foods Lifestyle Retailing
Personal Care
Education &Stationery
Safety Matches
Agarbattis
e-Choupal
Leaf Tobacco,Spices
AgriCommodities
Paper Boards
Packing
Education &stationeryClassmate ,paperkraft,color crew
IT
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Product MixFM
CGCigarette
s &Cigars
IndiaKings
Classic
GoldFlakes
NavyCut
Foods
Sunfeast
Bingo!
Aashirwad
Mint -o
PersonalCare
Vivel DiWills
Vivel
Fiama DiWills
Superia
LifestyleRetailing
WillsLifestyle
WillsSignatur
e
JohnPlayers
MissPlayers
Education &
Stationary
Classic
Paperkraft
ClassmateNoteboo
k
Classmate Pens
SafetyMatches
Aim
I Kno
Stylites
Mangaldeep
Agarbattis
Mangaldeep
Frangrance of
temple
4/27/2012Group 3 8
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ITC FMCG PRODUCTS & MARKET SHAR
4/27/2012Group 3 9
Cigarettes 70%
Education & Stationery 35
Lifestyle Retailing 9Personal Care 14%
Food 27%
Safety Matches & Aggarbatis 45 - 51%
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ITC Market Analysis
4/27/2012Group 3 10
Organized retail Market is the new channels for FMCG.o Scope to improve the retail market
Revenue from FMCG companies through organized retailing
Rural India Market is one of the potential growth areas
o Effective distribution and supplier network: e-Choupal
o Personal and Household market Less penetration. 95% byHUL and Dabur
o Innovation(packaging, pricing & quality) To cover lower
pyramid on income group Competition from MNCs
Export potential
Merger and Acquisition Godrej, Britannia, Lotte India, etc.
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ITC Strategy Marketing
4/27/2012Group 3 11
India Savory Market is fragmented Nuts& Seeds, popcorn, potato chips,processed snacks
India savory snacks Marketshare: % share by value, 2008NOTE: Ref Source-Data Monitor
PepsiCo, Inc 6.10%
ITC Limited 1.40%
Haldirams 1.00%
Others 91.50%
E-choupal
Agriculturalcommoditytraders
Direct fromfarmers
EffectiveSCM
ITCpackagingbusiness
Market reach Advertiseme
nt strategy
Health focus
Leverage&
Innovation
Marketshare -oligopoly
Strong
CSR,governancemandates
CommodityHedging
Differentiation
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Few Innovative Marketing Strategies
When compared to Maggi (Nestle) Round shaped, Longer noodles after cooking because of round shape, Non sticky even after losing heat.
16 variants for more penetration.
Hilarious approach through commercials.No Confusion Great Combination.
Different shape (Mad Angles - Triangle) Easily recallable & recognisable names.
Theede Medhee, Live Wires
No Brand Ambassador
Features naughty boy & cartoon boy as central characters. Irresistible tagline " Kuch Bhi Karega for Candyman " Milk Shake candies with fruit flavours. Candyman Natkhat Mango ad featuring
Naughty Boy.
4/27/2012Footer Text 12
ITC C i
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ITC Competitors
4/27/2012Group 3 13
Godrej Amul MTR
Family BusinessModel
EffectiveManagement ofGodrej Groupnamely : Godrej &Boyce and GodrejIndustries Limited (FMCG )
One of the largestmilk producers in
the world Effective supply
chain managementsystem
One of the TOP 5processed food
manufacturers inIndia
MTR productsknown for Quality
and are 100%vegetarian
Annual sales inexcess of US $ 1.7billion
HR practices of the
Group areconsideredamongst best in thecountry
Indigenous R&Dand TechnologyDevelopment
Effective Network
of Cooperativesand Unions
Uses Innovativetechnology to meetcustomer demands
Awarded by prime
minister for Qualityusing tech & bySAP forimplementing ERPsystem in 3 months
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Brand Ambassadors Sun feast: Shah Rukh Khan, Surya
Wills Lifestyle: Hrithik Roshan
Fiama Di wills: Deepika Padukone
Bru Cappuccino: Karan Johar
Chocolaty candy Maha choco: MS
Dhoni
Product Promotions
4/27/2012 14Group 3
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SWOT Analysis
4/27/2012Group 3 15
Strength
Brand Cigarette market ITC Lion
share of 22,000 cr Strong brand recognition &
product portfolio Distribution network Management
Weakness
Negative Connection of Tobacco Unrelated diversification Dependence on tobacco
revenues
Opportunity
Going global
Rural Market E-Choupal Low per capita consumption of
personal care products Filter cigarette segment of less
than 60mm size
Threat
Competition both Domestic &
International Increasing Tax on cigarettes Excise duty on unfiltered
cigarettes based on their length. Regulatory restrictions on
cigarettes
Ban on smoking
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PEST Analysis
4/27/2012Group 3 16
Political
Huge burden of VAT Excise duty raised by union budget
by 5 % Ban on communication Luxury tax in 10 states Smuggling 100% FDI allowed
Economical
Bidee : cigarette ratio-10:1 Profit margin is high Other forms of cheap tobacco intake The FMCG sector is a 4th largest
sector in INDIA Indian FMCG recorded 16% Sales
growth in last fiscal
Social
Becoming status symbol
Companions mounted by W.H.O. Changing attitudes towards tobacco May 31 is no tobacco day Change in life style Strong Corporate Social
Responsibility(CSR)
Technological
State-of-the-art factories
Cheap labor supply Development of IQMS Adapting other concepts like QC,
TQM, KSS, 5S, Six sigma
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Star Question mark
DogCash Cow
FMCG-Cigarettes
ITC Infotech
FMCG-Foods Agri Business
Hotels
Paperboards & Packaging
Packaged foods
Branded Apparels
ITC Ltd on BCG Matrix
L
ow
Low
High
HighMARKET SHARE
MARKETGROWTH
4/27/2012 17Group 3
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Porters 5 forcesModerate
bargainingpower ofcustomer
Highbargaining
power ofsupplier
Growingthreats fromnew entrants
High rivalry
Lowsubstitutes
due to strictlaws
4/27/2012 18Group 3
ITC S
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4Ps ITC Strategy
4/27/2012Footer Text 19
Product Strategy
Bingo positionedas chips with Indiantwist.
Offerings underfinger snacks -khakhra inspiredMad Angles
Multiple Pricingofferings - Rs 5,Rs 10 Rs20
Pricing
Competitivepricing - Similarpriced SKUs.
Leverage its SCM:e-choupal initiativeto ensureavailability of rawmaterials
Leverage printing& acka in
PromotionalStrategy
Bingo launched inthe time of Worldcup to cash in onthe popularity ofsnacks amongcricket lovers.
ITC booked 10-15spots per channelper day, 20 spotson radio stations
Place
Rural & UrbanMarket Echoupalfresh
Leverage its wellestablishedCigarettedistributing network
Enabling retailersby providing 4lakhs racks for
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FMCG- Achievements Ashirvad Atta is now #1 selling.
Sunfeast Biscuits is ranked #3.
Bingo, launched in August 2007 - 16% market share.
November 2007 Mint-o overtakes its competitor Chlormint
Classmate brand - Most widely distributed stationarybrand
Kitchens of India has about 48% market share in India. Its Readyto Eat food Market is estimated to be Rs.700m
Safety Matches market at Rs. 1250 crores p.a. for 24 billion matchboxes which is targeted by ITCs iKno, Aim, Aim Mega, Aim Metro
Successful acquisition of 94% of WIMCO Ltd. i.e. Homelites, Ship
Mangaldeep serves the nations 900cr incense sticks market
4/27/2012 20Group 3
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Conclusion
4/27/2012Group 3 21
ITC is better in position from PepsiCo considering the fragmentation in themarket
Has huge potential to capture the market share from its current level of1.40%
Stronger control on SCM e-Choupal, retail network
Leverage its diversified business portfolio into positive advantage,
Brand value(Market position)
Effective strategies to mitigate the threats
Stiff competition from international brand and threat from otherplayers(China and Japan) and others
Indian food service market decline due to weaker forecast after 2009and CAGR at 5.3% for the period of 2009-2014
Inorganic growth through Merger and Acquisition
Diversify its food products - Ready to eat food(MTR), etc.
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No Questions
Thank you
4/27/2012Group 3 22
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References http://www.itcportal.com
Reports Data Monitor, Economists Intelligent report,Internet
EBSCO
4/27/2012Group 3 23
http://www.itcportal.com/http://www.itcportal.com/http://www.itcportal.com/8/3/2019 Assignment - Group 3 - Rev 2.8
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References India cost foodservice sectorvolume forecast: million transactions, 2009-
14
4/27/2012Group 3 24
Source: Datamonitor D A T A M O N I T O R
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References
4/27/2012Group 3 25
This section was originally published on February 1st 20051998a 1999a 2000a 2001a 2002a 2003bConsumer expenditureFood, beverages & tobacco (US$ m) 142,498 145,827 136,566 143,992 142,552 168,050Food, beverages & tobacco (% ofhousehold spending) 52.6 50.0 45.9 46.0 43.4b 43.3Food
Meat consumption (kg per head) 4.8 4.8 5.0 5.1 5.2 5.4Milk consumption (litres per head) 64 65 65 63 63 64Fruit consumption (kg per head) 39 39 38 38 38 41Vegetable consumption (kg per head) 61 66 66 70 69 76Confectionery, sales volume (000tonnes) 88 94 101 111 119 127BeveragesCoffee consumption (litres per head) 0.0 0.0 0.1 0.1 0.1 0.1Tea consumption (litres per head) 0.6 0.7 0.6 0.7 0.6 0.7
Alcoholic drinks, sales volume (m litres) 81 61 53 49 51 57Soft drinks, sales volume (m litres) 1,271 1,416 1,591 1,827 2,143 2,484TobaccoCigarettes, sales volume (m units) 95,279 91,702 95,900 86,000 85,400 88,208aa Actual. b Economist Intelligence Unit estimates.Source: Economist Intelligence Unit.
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ITCs Distribution channelCOMPANY HUB FACTORY
Retailer
Small wholesale dealer
Wholesale dealer
Carried and forward agent
consumer
4/27/2012 26Group 3