Marketing project on ITC

7/29/2019 Marketing project on ITC.

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SUBJECT : MARKETING MANAGEMENT

PROJECT TOPIC : PRODUCT LINE OF ITC

CLASS : SYBMS

DIV: A

NAME : SUPRIYA

ROLL NO. : 14


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INDEX

NO. TOPIC NAME1 INTRODUCTION

2 HISTORY OF ITC

3 ABOUT ITC

4 PRODUCT LINE OF ITC

5 PRODUCTS: AASHIRVAAD ATTA

6 BINGO CHIPS

7 CANDYMAN

8

SUPERIA SOAP

9 NAVY CUT CIGARETTE

10 GOLD FLAKE PREMIUM CIGARETTE

11 BIBLIOGRAPHY


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INTRODUCTION

ITC is one of India's foremost private sector companies with a marketcapitalisation of over US $ 22 billion and a turnover of US $ 6 billion.*ITC is

rated among the World's Best Big Companies, Asia's 'Fab 50'and the World's

Most Reputable Companies by Forbes magazine, among India's Most

Respected Companies by Business World and among India's Most Valuable

Companies by Business Today.ITC ranks among India's `10 Most Valuable

(Company) Brands', in a study conducted by Brand Finance and published by

the Economic Times. ITC also ranks among Asia's 50 best performing

companies compiled by Business Week.ITC has a diversified presence inCigarettes, Hotels, Paperboards &Specialty Papers, Packaging, Agri-Business,

Packaged Foods &Confectionery, Information Technology, Branded Apparel,

Personal Care, Stationery, Safety Matches and other FMCG products. While

ITC is an outstanding market leader in its traditional businesses of Cigarettes,

Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining

market share even in its nascent businesses of Packaged Foods &

Confectionery, Branded Apparel, Personal Care and Stationery. As one of

India's most valuable and respected corporations, ITC is widely perceived tobe dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of

inspiration "a commitment beyond the market". In his own words: "ITC

believes that its aspiration to create enduring value for the nation provides the

motive force to sustain growing shareholder value. ITC practices this

philosophy by not onlydriving each of its businesses towards international

competitivenessbut by also consciously contributing to enhancing

thecompetitiveness of the larger value chain of which it is a part."ITC's

diversified status originates from its corporate strategy aimed atcreating

multiple drivers of growth anchored on its time-tested corecompetencies:

unmatched distribution reach, superior brand-buildingcapabilities, effective

supply chain management and acknowledgedservice skills in hotel iering.Over

time, the strategic forays into new businesses are expected togarner a

significant share of these emerging high-growth markets inIndia.ITC's Agri-

Business is one of India's largest exporters of agriculturalproducts. ITC is one


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of the country's biggest foreign exchangeearners (US $ 3.2 billion in the last

decade).The Company's 'e-Choupal' initiative is enabling Indian

agriculturesignificantly enhance its competitiveness by empowering

Indianfarmers through the power of the Internet.This transformational

strategy, which has already become the subjectmatter of a case study atHarvard Business School, is expected toprogressively create for ITC a huge

rural distribution infrastructure,significantly enhancing the Company's

marketing reach.ITC's wholly owned Information Technology subsidiary,

ITC InfotechIndia Ltd, provides IT services and solutions to leading

globalcustomers. ITC Infotech has carved a niche for itself by

addressingcustomer challenges through innovative IT solutions.ITC's

production facilities and hotels have won numerous nationaland international

awards for quality, productivity, safety andenvironment managementsystems. ITC was the first company inIndia to voluntarily seek a corporate

governance rating.ITC employs over 26,000 people at more than 60 locations

acrossIndia. The Company continuously endeavors to enhance its

wealthgenerating capabilities in a globalising environment to consistently

reward more than 3,53,000 shareholders, fulfill the aspirations of its

stakeholders and meet societal expectations. This over-arching vision of the

company is expressively captured in its corporate positioning statement:

"Enduring Value. For the nation.For the Shareholder.


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HISTORY OF ITC

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco

Company of India Limited. As the Company's ownership progressively

Indianised, the name of the Company was changed from Imperial Tobacco

Company of India Limited to India Tobacco Company Limited in 1970 and

then to I.T.C. Limited in 1974.In recognition of the Company's multi-business

portfolio encompassing a wide range of businesses - Cigarettes & Tobacco,

Hotels, Information Technology, Packaging, Paperboards & Specialty Papers,

Agri-business, Foods, Lifestyle Retailing, Education &Stationery and

Personal Care - the full stops in the Company's name were removed effective

September 18, 2001.The Company now stands rechristened 'ITC Limited'.

BACKGROUND-The Company beginnings were humble. A leased office on

Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The

Company celebrated its 16th birthday on August 24, 1926, by purchasing the

plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road)

Kolkata, for the sum of Rs 310,000.

Though the first six decades of the Company's existence wereprimarilydevoted to the growth and consolidation of theCigarettesand Leaf Tobacco businesses, the Seventies witnessed thebeginningsof a corporate transformation that would usher inmomentous changes in thelife of the Company.ITC's Packaging & Printing Business was set up in 1925as a strategicbackward integration for ITC's Cigarettes business. It is todayIndia'smost sophisticated packaginghouse.In 1975 the Company launched its Hotels business with theacquisition o

f a hotel in Chennai which was rechristened 'ITC-Welcome group HotelChola'. The objective of ITC's entry into the hotelsbusiness was rooted in theconcept of creating value for the nation.ITC chose the hotels business for itspotential to earn high levels of foreign exchange, create tourism infrastructureand generate largescale direct and indirect employment. Since then ITC'sHotelsbusiness has grown to occupy a position of leadership, with over 100


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owned and managed properties spread acrossIndia.In 1979, ITC entered the Paperboards business by promoting ITCBhadrachalam Paperboards Limited, which today has become themarket leader inIndia. Bhadrachalam Paperboards amalgamated withthe Company effectiveMarch 13, 2002 and became a Division of theCompany, BhadrachalamPaperboards Division.In November 2002, this division merged with theCompany's TribeniTissues Division to form the Paperboards & SpecialtyPapersDivision. ITC's paperboards' technology, productivity, qualityandmanufacturing processes are comparable to the best in the world.It hasalso made an immense contribution to the development of Sarapaka, aneconomically backward area in the state of AndhraPradesh. It is directlyinvolved in education, environmental protectionand community development.In 2004, ITC acquired the paperboardmanufacturing facility of BILTIndustrial Packaging Co. Ltd (BIPCO),near Coimbatore, Tamil Nadu. The

Kovai Unit allows ITC to improvecustomer service with reduced lead timeand a wider product range.In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British

joint venture. Since inception, its shares have been held by ITC, BritishAmerican Tobacco and various independent shareholders in Nepal. In August2002, Surya Tobacco became a subsidiary of ITC Limited andits name was changed to Surya Nepal Private Limited (SuryaNepal).In 1990,ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturingcompany and a major supplier of tissue paper to the cigarette industry. Themerged entity was named the Tribeni Tissues Division (TTD).To harnessstrategic and operational synergies, TTD was merged with the BhadrachalamPaperboards Division to form the Paperboards &Specialty Papers Division inNovember 2002.Also in 1990, leveraging its agri-sourcing competency, ITC setupthe Agri Business Division for export of agri-commodities. TheDivision istoday one of India's largest exporters. ITC's unique and now widelyacknowledged e-Choupal initiative began in 2000 with soya farmers inMadhya Pradesh. Now it extends to 10 states covering over 4 million farmers.ITC's first rural mall, christened 'ChoupalSaagar' was inaugurated in August2004 at Sehore. On the rural retail front, 24 'ChoupalSaagars' are now

operational in the 3 states of Madhya Pradesh, Maharashtra and UttarPradesh. In 2000, ITC forayed into the Greeting, Gifting and Stationeryproducts business with the launch of Expressions range of greeting cards. Aline of premium range of notebooks under brand Paperkraft was launchedin 2002. To augment its offering and to reach a wider student population, thepopular range of notebooks was launched under brand Classmatein 2003.


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Classmate over the years has grown to become India largest notebook brandand has also increased its portfolio to occupy a greater share of the school bag.Years 2007- 2009 saw the launch of Children Books, Slam Books, GeometryBoxes, Pens and Pencils under the Classmate brand. In 2008, ITCrepositioned the business as the Education and Stationery Products Businessand launched India's firstenvironmentfriendly premium business paper under the Paperkraft Brand.Paperkraft offers a diverse portfolio in the premium executivestationery andoffice consumables segment. Paperkraft entered new categories in the officeconsumable segmentwith the launch of Textliners, Permanent Ink Markersand White Board Markers in 2009.ITCalso entered the Lifestyle Retailing business with the WillsSport range ofinternational quality relaxed wear for men and women in 2000. The WillsLifestyle chain of exclusive stores later expandedits range to include Wills

Classic formal wear (2002) and Wills Club life evening wear (2003).ITC alsoinitiated a foray into the popular segment with its men's wear brand, JohnPlayers, in 2002. In 2006, Wills Lifestyle became titlepartner of the country'smost premier fashion event - Wills LifestyleIndia Fashion Week - that hasgained recognition from buyers andretailers as the single largest B-2-Bplatform for the Fashion Designindustry.To mark the occasion, ITC launcheda special 'Celebration Series',taking the event forward to consumers.In 2000,ITC spun off its information technology business intoawholly owned subsidiary,ITC Infotech India Limited, to moreaggressivelypursue emerging opportunities in this area.Today ITC Infotech is one of Indiafastest growing global IT and IT-enabled services companies and hasestablished itself as a key player in offshore outsourcing, providing outsourcedIT solutions andservices to leading global customers across key focus verticals.

Manufacturing, BFSI (Banking, Financial Services & Insurance),CPG&R(Consumer Packaged Goods & Retail), THT (Travel, Hospitality andTransportation) and Media & Entertainment. ITC's foray into the Foodsbusiness is an outstanding example of successfully blending multiple internal

competencies to create a new driver of business growth. It began in August2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmetdishes. In 2002, ITC entered the confectionery and staples segments withthelaunch of the brands mint-oand Candyman confectioneryand Aashirvaad atta (wheat flour). 2003 witnessed the introductionofSunfeast as the Company entered the biscuits segment.ITC's entered the fast growing branded snacks category with Bingo! in 2007.


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In eight years, the Foods business has grown to a significant size with over 200differentiated products under six distinctive brands, with an enviabledistribution reach, a rapidly growing market share and a solid marketstanding. In 2002, ITC's philosophy of contributing to enhancing thecompetitiveness of the entire value chain found yet another expression in theSafety Matches initiative. ITC now marketspopular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega andAim Metro. ITC's foray into the marketing of Agarbattis (incense sticks) in2003 marked the manifestation of its partnership with the cottage sector.ITC's popular agarbattisbrandsinclude Spriha and Mangaldeep across a range of fragrances likeRose,Jasmine, Bouquet, Sandalwood, Madhur, SambraniandNagchampa.ITCintroduced Essenza Di Wills, an exclusive range of fine fragrances and bath &body care products for men and women in

July2005. Inizio, the signature range under Essenza Di Wills provides acomprehensive grooming regimen with distinct lines for men (InizioHomme) andwomen (Inizio Femme).


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ABOUT ITC

ITC is one of India's foremost private sectors companieswith a market capitalization of nearly US $ 15 billion anda turnover of over US $ 4.75 billion. ITC is rated amongtheW o r l d ' s B e s t B i g C o m p a n i e s , A s ia ' s ' F ab 50 'a nd th e W or ld ' s M o s t R e p u t a b l e C o m p a n i e s b y Forbes magazine , among Ind ia 'sMo s t R e s p e c t e d C om p a n i e s b y Business World and among

India'sM o s t V a l u a b l e C o m p a n i e s b y Business Today. ITC also ranksa m o n g I n d i a ' s t o p 1 0 ` Mo s t Valuable (Company) Brands', in astudy conducted byBrandFinancean d pu bl i sh ed by th e Ec on om i c Times.ITC hasa diversif ied pre sence in Cigarettes, Hotels, Paperboards&Specialty Papers, Packaging, Agri-

B u s i n e s s , P a c k a g e d F o o d s & Confectionery, Inf ormation Technology, Branded Apparel, Greeting Cards, SafetyMatches and other FMCG products. While ITCis an outstanding market leader in its traditional businesses ofCigarettes, Hotels, Paperboards, Packaging and Agri-Exports,itis rapidly gaining market share even in its nascentbusinesses of Packaged Foods &Confectionery, BrandedApparel and Greeting Cards.As one of India's most valuable and

respected corporations, ITC is widely perceived to bededicatedlynation-oriented. Chairman Y C Deveshwar calls this source ofinspiration "


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Acommitment beyond the market". In his own words: "ITC believes that its aspiration

tocreate enduring value for thenation provides the motive force to

sustain

growing shareholder value. ITC p

ractices this philosophy by not o

nly driving each of itsbusinesses

towards international competitiveness

but by also consciously contributing to

enhancing the competitiveness ofthe larger value chain of which it is

a part

."ITC's diversified status originates from its corporate strategyaimed at creating multipledrivers of growth anchored on itstime-tested core competencies: unmatcheddistributionreach, superior brand-

building capabilities, effective supply chain management andacknowledged service skills in hotelier. Over time, the strategic forays into new

businesses are expected to garner a significant share ofthese emerging high-growthmarkets in India.ITC's Agri-Business is one of India's largest exporters of agriculturalproducts. ITC is oneof the country's biggest foreignexchange earners (US $ 2.8 billion in the last decade). TheCompany's 'e-Choupal' initiative is enabling Indian agriculturesignificantly enhanceits competitiveness by empowering Indianfarmers through the power of the Internet. Thistransformationalstrategy, which has already become the subject matter of a case


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studyatHarvard Business School, is expected to progressively create for ITC a huge ruraldistribution infrastructu

re, significantly enhancing the Company's marketingreach.ITC's wholly owned Information Technology subsidiary,ITC InfoTech India Limited, isaggressively pursuingemerging opportunities in providing end-to-end IT solutions,i n c l u d i n g e -e n a b l e d s e r v i c e s a n d b u s i n e s s p r oc e s s o u t s o u r c i n g . ITC's

production facilities and hotels have won numerousnational and internationalawards for quality, productivity,

safety and environment management systems. ITC wasthe first

company in India to voluntarily seek a corporate governance

rating.ITC employs over 21,000 people at more than 60

locations across India. The Companycontinuously

endeavors to enhance its wealth generating capabilities ina

globalizingenv ir onme nt to con s is ten t ly rew ard mor

e th an 3, 95, 00 0 sha re hol de rs , fu lf i l l the aspirations

of its stakeholders and meet societal expectations. This over-

arching vision of the company is expressively captured in its

corporate positioning statement:


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PRODUCT LINE OF ITC

In FMCG, ITC has a strong presence in :A)Cigarettes:

W.D. & H. O. Wills,

Gold Flake Kings,

Gold Flake Premium,

Navy Cut,

Insignia,

India Kings,

Classic Verve,

Menthol,

Menthol Rush,

Regular,

Citric twist,

Mild & Ultra Mild,

555,

Benson & Hedges,

Silk Cut,

Scissors,

Capstan,


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Berkeley,

Bristol,

Lucky Strike,

Players and

Flake.

B)Foods :

Kitchens of India,

Aashirvaad,

Minto,

Sunfeast,

Candyman,

Bingo,

Yippee,

Sunfeast

Pasta brands in ready to eat,

Staples,

Biscuits,Confectionary,

Noodles and

Snack Foods;


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C)Apparel:

Wills Lifestyle and

John Players

D)Personal Care :

Fiama di Wills,

Vivel,

Essenza di Wills,

Superia,

Vivel di Willsbrands of products in perfumes,

haircare and

skin care

E)Stationary :

Classmate and

Paperkraft brands

F)Safety Matches and Agarbattis :

Ship (through ownership of WIMCO),

ikno,

Mangaldeep,

Aimed brand


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AASHIRVAAD ATTA

MARKETING MIX:

Product:

ITC had launched nearly all the products range off Non tobaccoProducts; they are very aggressive in their distribution of such products.Among them the Ashirvaad is the market leader in the branded atta category and

at the second rung after Britannia. The existingnetwork of ITCs Cigarettesdistribution is being used extensively for the sales all products of ITC Fooddivision. They are trying to capitalized the market by associating the productswith the ITC brand.

Price:

The pricing of the ITC food division depends upon the Customers

demand schedule, the cost function and the competitors price. Thepricing of the company is such that it caters to the need of all income groupsof people but special provision has been kept for Low and middle incomegroup, and their pricing are competitive with respect to other players likeBritannia, Parle and Brisk farm. The company follows the Going ratepricing that is the price of the product depends upon the competitors price.The firm chooses pricing more or less the same as Market leader.

Place:

Distribution channel is one of the fortes of the ITC food division, wherethe infrastructure and distribution channel of Cigarettes is used. The forty strong


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salesman team for ITC food division is the backbone of the distributionchannel. The distributors can contact the Branch Manager and the AreaExecutive for any suggestion or complain they act as interface between the

company and the distributors.

Promotion:

In past the company has done its promotional activity mainly through the localmode of transport like Auto and rickshaw and giving ads in local newspaper. Nospecific ads have been made . Free Packets of Biscuit and Aashirvaadatta samplewere distributed freely to the people. At present there is no promotional schemein Aashirvaadatta category but in case of sunfeast biscuit, a promotional schemeto attract the children the company is giving free things that are used by childrenlike Ruler, Eraser, and Sharpener etc. inside the Biscuit packets.

ADVERTISEMENT:

An effective advertisement will attract more and more customer to buy, helps in

the brand and image formation, and informative in telling the USP of the product.In survey only 16 or 23% of the sample agrees that the advertisement ofAashirvaadatta is effective enough to make them buy, and 41% feels that theadvertisement was good enough to make them aware of the product butnot capable enough to make them buy and 36% of the consumer surveyedfound the advertisement of the Aashirvaadatta to be not effective at all. AndNone of the consumer in the surveyed found that advertisement for

Aashirvaad are Highly Effective.

CUSTOMER SATISFACTION:

The higher the satisfactionlevel higher will be the chances that the customer willbuy the same brand again andagain that leads to the building of the Brand loyalty.


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Also it also determines whethersome attribution change or any othermodification is required in promoting the brand.71% of the peoplesurveyed were satisfied with the product and 23.5% were extremelysatisfied with

the product and will buy the product again and again and 6% of thepeoplesurveyed where not satisfied with the product.

BRAND POSITIONING:

Ashirvaad though being a clear market leader does notlead in the brand recall. Itis its closest competitor Annapurna that leads in the brand recall.This shows thatAshirvaad has not been able to connect with the consumers. It needs toinvestin aggressive marketing and advertising to connect with the emotions ofthe consumer to havea sustainable market share and growth.


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BINGO CHIPS

MARKETING MIX:Product:

Bingo is currently available in eight variants, in addit ionto the rice-mealsnacks.B a s e d o n t h e m a r k e t r e s e a r c h , t h e c o m p a n yc a n i n c o r p o r a t e t h e f o l l o w i n g improvements in its productportfolio.

Price:

Bingo currently is among the lowest priced packaged snacksbrands having a national presence. Bingo was the firstbrand to introduce, its snacks in Rs 5, Rs 10 and Rs 20 packets. Rightnow Bingo and its prime competitors, Frito-Lay, Kurkureand Cheetosare currently priced at the same levels.

Place:

Both the consumer and the retail surveys have affirmedthat Bingos greatest strengthlies in its strong distributionnetwork. The brand, through its appeal to the youth withthe helpof its snazzy advertisements, has been able to secure a strongyouthcustomer base in the cities. High visibility and availability with t

he help ofITCs strongdis trib utio n n etwo rk h as he lped itpenetrat e i nto the smaller towns. The companymust continueto leverage its distribution network. Bingo must go local, withinIndiaa n d d e v i s e v a r i a n t s ( f l a v o u r s ) s p e c i f i c t o e a c h r eg i o n .

Promotion:


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W i t h t h e g r o w i n g a w a r e n e s s a b o u t h e a l t h -c o n s c i o u s p r o d u c t s a n d F r i t o - L a y s launching of Aliva andKurkure (cornmeal and rice snacks, perceived to be

healthier than potato chips), Bingo needs to get into thesesegments. It needs to promote theMad Angles sub-brand as a health-sensitive product.While the whacky advertisements of the companystill find a lot of takers, there is noneed to follow Frito-Laysfootsteps and acquire celebrity endorsements as consumer surveysreveal their relative insignificance.

TARGET MARKET:

Bingos current focus would be on increasingits penetration in the metros and cities,its strongholds. Thebrand should bank on its strong distribution network toensurethat it has high visibility in the smaller towns.Taking heed from its advertisementsduri ng the launch

face that focused on the cultural diversity in thecountry Bingoshould look to target each of thegeographical regions separately. The companyshouldcontinue with its current focus on


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category. Japan dominatesthe Asia-Pac ifi c snackmarket, holding a 59.5% share overall while Indiacontrols over 12.40% of the total Asia Pacific snack market

share.

POSITIONING:

Bingo should not dilute its current market image ofyouthful trendy brand and shouldlook to increase penetrationin the metros and cities, through its advertisements.The trickle-down effect, high visibility and availability could also see itsmarket sharein the smaller towns rise. Meanwhile, Bingoshould also introduce different variantsthat suit the localtastes to target the regional markets.


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CANDYMAN

FINDINGS:

Retailer Research:

Retailer research deals with retailer and their problems andsolution to the problems. In this I came to know about theretailersneed and expecta tion leve ls rega rding productsand ascertainable levels of satisfaction.

Product Research:

Under product research I came to know aboutthemodificat ion which retaile rs want s as to the quality, packing, shape, color, andquantity etc of their favoritecandy.

Pricing Research:

This includes ability to consume, to pay for the product,howmuch a person can spend on his/her favorite candy. In this Ihave tried to find outretailers price expectations and reactions.

Advertising Research:

Under this I have concluded that whethertheadvertisement appeals the retailers or not.This also


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includes evaluating andselecting the proper media-mix andmeasuring advertising effectiveness.


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SUPERIA SOAP

ADVERTISING:

a)Selection of MediaThere are number of Sources available for passing the productmessage. These are asfollows;TelevisionOutdoor(Billboards)MagazinesNewspapersBrochures.

b)Electronic MediaAs we know Superia soap is targeted towards lower middle class and

middle class consumers. So thisinfluence is clearly depicting on their

TV commercial. The first advertisement named Yeh to meraHai is

directed by RensilDsilva who is also the director of the movie

Kurban portrays that incrowded vegetable market a clash occurred

between a girl carrying a bag and a young boy driving abike due to

which the girl bag fell in the ground the boy come helps the girl inpicking up the goodswhich were fallen then they saw that Superia

soap was also there after that they both startedclaiming for the

soap this is mine there were lot of crowd seeing this incident all

stared claimingthe soap is mine , the member who were there in the

crowd were from different religion one wasPunjabi, one was Marathi

another was Bengali and all of them was claiming on their ownlanguageaccent. So this TV commercial shows it is catering to mass

market and the actors used in thiscommercials was trying portray a

middle class image for instance boy using a bike, the girl

wearing asalwarkameez and carrying a vegetable bag. All the


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brand imagery carried in this commercialportrayed the affection

with the brand and catering mass market. After that what so

evercommercial came for Superia all were carrying the same brand

imagery.

b)Regional InfluenceWhat so ever commercial of Superia came all were more telecasted onregional television channel,this was because as this soap was targetinglower middle class and middle class and these viewerwatch moreregional television channel.

d)Print MediaAgain on print media advertisement regional influence can bevisible. Most of the superia ads arepublished regional languagenewspaper, through this influence they are trying to create apersonaltouch with the target customer. Another important fact whichis taken careis the local newspaperreadership ratings.

e)No BrandAmbassadorAs this brand is carrying a image of common people soap so their isno brand ambassador for thebrand. There is no celebrity associationin the TV commercial and newspaper ads as well.

SALES PROMOTION:

Sales promotion, a key ingredient in marketing campaigns, consists of acollection of incentivetools, mostly short term, designed to stimulatequicker or greater purchase of particularproducts or services byconsumers or the trade. Whereas advertising offers a reason to buy,salespromotion offers an incentive to buy.


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a)ConsumersVarious sales promotion schemes for consumer are as follows

1)3+1 Superia soaps are being available in a combo pack in which of 3soaps in which 1soap is free

2)Offer packs- Superia soaps are available in a pack of 3 who s MRP30 but in offer pricethe consumers are getting RS 24.

3)Consumers are also getting Superia shampoo sachet free with Superiasoap.

4)Consumers are getting 10% extra in weight in combo pack of 3.

5)Consumers can get the chance of winning silver coin inside the soap.


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CIGARETTES:

NAVY CUT

TARGET SEGMENTS:

The target consumers for Flake excel and NCRsft is the people

lying in the lowerincome group roughly around 1 to 3 lc perannum. Saharanpur city has got a goodnumber of smokers andmajority of population comes under lower income level.1.The city is surrounded by a large number of villages and ruralareas.2. There is an ample number of workers engaged in the smallscale business.3. The city enjoys a large crowd coming from villages( be it,

for shopping for theirsmall business at their homes or be itselling their crops) and getting back by night.4.Even the small shopkeepers and businessmen likes to stick tothe price range of 1-3 Rs. Per stick.5. Majority of students in degree colleges are from therural areas in and around thecity. They prefer to stick to thelow cost cigarette segment.

6.People are less heath conscious and hence dont prefer thecigarettes having largefilters and more refined tobacco cigarettesi.e. cigarettes from KSFT segment.


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TARGET CUSTOMERS:

1)Adultsmokers

2)The youth smokers.

3)It extended beyond the SEC A

category to the SEC B as well.

POSITIONING:

1)Combines smooth flavor with cool.2)Unique packaging.3)Affordable price in todays life.

Promotional Pricing:

Promotional PricingPromotional pricing are divided in the following major type:

Loss leader pricing : Under this category the companyreduced the price of the maximum selling product.

Specialevent pricing: Under this category the companyreduced the price in special festivalas.

Cash rebates: Under this category the company reduced theprice in bundle of purchasing.

Low interest financing: Under this category the company


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sellthe product in instalments and not taking the interest on thedue amount.

Longer payment term: Under this category the companyselling the product and taking the payment in very long termmeans more than two or three years.

Warranties & service contracts : Under this category thecompany selling the product and giving more Warranties.


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GOLD FLAKE PREMIUM

BRANDING:

1) Building the brand image:To create a brand image of Gold Flake the company startedbranding of the product since it was launched in 1970. In thosedays India was a country of the genteel rich. The product offered theuser the sense of belonging to the upper class. For creating a brandimage; the advertisements of Gold Flake launched by the company in theseventies was as per the consumers taste and preference. The first

advertisement was the balcony ad For the Gracious people, Atouch of Gold and A tribute to the gracious people. But after fewyears this advertisement became stale as average age of theconsumer of Gold Flake had fallen and it also affected the salesof the companybecause the young smokers did not emphasis withthe brand. The brand did not stand for success and respectabilitybecause the liberalization and globalization had changed the consumerneeds and mindset. To overcome this problem

the company followed a brand repositioning st ra tegy . Thebrand was st i l l posit ioned as a premium cigarette but thetarget consumer had changed. Gold Flake then targeted adult as well asyoungsmokers. Ite x t e n d e d b e y o n d S E C A a n d i n c l u d e d S E C B a s w e l l . T h e p r o d u c t s t i l l differentiated itself on purity andquality of its experience. The advertisement forthe Gracious Peoplewas continued with another slogan added to it Celebrate the Feeling to

encourage the young smokers.2) Branding Strategies:Two brand strategies were applied by the company. The first brandstrategy is more qualitative in nature and is concentrated onincreasing market share and loyalty while the second strategy


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refers to t he more quantitat ive as pects of increasing bottomline profits. The brand extension strategy has also been mentioned.A)Honeydew smooth campaignAt a time when sales were stagnating, the tangible and

identifiable USPof being honeydew smooth was associated with Gold Flakeby revolving al l adcampaigns around i t . I t was meant to be

unique and durable. It attempted to reignite loyalty among itsconsumers. The honey drop icon in everything connected withthe brand which signified the identifiable characteristic of thebrand. Unlike the previous campaigns, the USP was not deriveditwas a tangible offering to

theconsumer . The hon ey drop ic on was desi gned to b e recognizable, simple andp o w e r f u l . W i t h t h i s , t h e c a m p a i g n s a l s o f o c u s e d o n s lo g a n T h e w o r l d o f Goldflake. Always mellow, Always smooth.Withthis, the brand was positioned as a premium cigarette targetingyoungand adul t male smo ker s fro m the SECA & B cate gor ies in the twen ties . Theconsumers wereprojected to be young, upwardly mobile and contemporaryandhad achieved a smooth balance between the various facets of theirlives. The results were visible within a single quarter. Sales hadincreased. The Indianmale identified with the brand and Gold Flake wason the path to success. In 2002,the No. 1 spot in Brand Equitys firstlisting of Indias 100 biggest FMCG brandswent to Gold Flake. GoldFlake remains Indias biggest FMCG brand for the year 2003. Itcontinues to be twice as big as its nearest competitor (in terms ofsales)and has even grown by almost 8% in the year 2002-03.


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MARKETING MIX:

Product:

Brand name: The brand name of Gold flake has a very good positionin themarket. The brand name of Gold Flake is popular since last25 years.Quality: Gold Flake offers superior quality of cigarettes with

a differenttype of tobacco i.e. golden tobacco in it ,which is being bleached beforemanufacturing of the

cigarette. This gives a different type of quality to

the product.

Safety: It is less harmful as the tobacco content is less. There is also afilter connected to the end of the product, through whichthe tobacco content isinhaled in less proportion whilesmoking.Packaging: The packaging of Gold Flake is done in hard cardboardpaper. A packet contains 10 cigarettes and small packetcontains 5 cigarettes. The packaging also includes the rawmaterials used for the product, the harmfulcharacter of the

product and the price of the product.Accessories: The accessories offered by the product are a cigarette filterandalso a cigarette holder for smoking.


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Price:

Pricing strategy:The pricing strategy of the company depends uponthedemand of Gold Flake and also the prices of otherproducts. If the price of o t he r br and i s hi g h thep r i ces o f Go ld F lake a re lowered down . I f t he demand for the product is high the prices are risen up.Retail price:Gold Flake has different categories. The price of large packetofGold Flake is Rs 34/-; small packet is Rs 28/- and loosecigarettes costaround Rs 3.50/-.Volume pricing:The large packet of Gold Flake contains 10cigaretteswhich is Rs 34/-, small packet Rs 28/- contains 5cigarettes. These prices areoffered to the consumers. Toretailers the price offer is comparatively lessthan that of

consumers as the buy in bulk. The price dependsupon thequantity of the wholesale purchase by the retailers.Price flexibility:Price flexibility is very less in this product.Thepriceschange depending upon the market and consumersdemand and supply. The prices also changes as per the tax rateand government rules and regulations


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Place:

Distribution channels:

The distribution channel starts from the whole seller then thedistributers. The third party is the retailers and thenfinally theretailers to the consumers.Market coverage:ITC covers a wide range of the retail spectrum,from premium outlets in the metros to small shops in theinteriors of rural India.Order processing:the order processing is done as per the demandandsupply of the product in the market. In this category ofproduct the demandis increasing day-by day, therefore each yearthe company has to increaseits production as per theincreasing demand. Especially as the standardof rural consumer is increasing, the demand for brand

ed cigarettes is alsoincreasing. Therefore order processinghas to be done well in advance.Transportation:Long distance transportation is done through trucksandcontainers depending upon the quantity of the productto be transported.Small distance transportation likedistributing to the local retailers is donethrough small

tempos.


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Promotion:

Brand name

: The brand name of Gold flake has a very good positionin themarket. The brand name of Gold Flake is popular since last25 years.Quality: Gold Flake offers superior quality of cigarettes with

a differenttype of tobacco i.e. golden tobacco in it ,

which is being bleached beforemanufacturing of the

cigarette. This gives a different type of quality tothe product.

Safety: It is less harmful as the tobacco content is less. There is also afilter connected to the end of the product, through whichthe tobacco content isinhaled in less proportion whilesmoking.

Packaging: The packaging of Gold Flake is done in hard cardboardpaper. A packet contains 10 cigarettes and small packetcontains 5 cigarettes. The packaging also includes the rawmaterials used for the product, the harmfulcharacter of theproduct and the price of the product.Accessories

: The accessories offered by the product are a cigarette filterandalso a cigarette holder for smoking.


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BIBLIOGRAPHY

1)www.itcportal.com

2)wikipedia.org/wiki/ITC Limited

3)Moneycontrol.com

4)www.economywatch.com

5)www.google.com

6)www.indiaretailing.com
http://www.itcportal.com/http://www.itcportal.com/http://www.economy/http://www.economy/http://www.google.com/http://www.google.com/http://www.google.com/http://www.economy/http://www.itcportal.com/

Documents

Marketing project on ITC