1. A Project On “The Best
Selling Product Of ITC And
It’s Competitors.”
Presented by –
Ankush kumar
Roll no – 13
Section A
BIITM
2. Historyand Evolution
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 - Fast Moving Consumer
Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded
Apparel, Education and Stationery Products, Incense Sticks and Safety Matches,
Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and
Information Technology - the full stops in the Company's name were removed
effective September 18, 2001. The Company now stands rechristened 'ITC
Limited, 'where ‘ITC’ is today no longer an acronym or an initialised form.
5. FMCG.
Fast-moving consumer goods (FMCG) or consumer packaged
goods (CPG) are products that are sold quickly and at relatively
low cost. Examples include non-durable goods such as soft
drinks, toiletries, over-the-counter drugs, toys, processed
foods and many other consumables. In contrast, durable goods
or major appliances such as kitchen appliances are generally
replaced over a period of several years. FMCGs have a short
shelf life, either as a result of high consumer demand or
because the product deteriorates rapidly.
6. Though the profit margin made on FMCG products is
relatively small (more so for retailers than the
producers/suppliers), they are generally sold in large
quantities; thus, the cumulative profit on such products
can be substantial. FMCG is probably the most classic
case of low margin and high volume business.
Fast-moving consumer electronics are a type of FMCG
and are typically low priced generic or easily
substitutable consumer electronics, including mobile
phones, MP3 players, game players, and digital
cameras which are of disposable nature.
9. Current market size estimated at over Rs. 29000 cores (growing at
12% p.a.)
ITC presence established in Body Wash (Soaps, shower gels), Hair
Care (Shampoos, conditioner).
Product portfolio enlarged with the launch of Fairness cream.
Portfolio approach straddling all consumer segments with 4
umbrella brands
Essenza Di Wills (Prestige)
10. Fiama Di Wills (Premium)
Vivel Di Wills and Vivel (Mid)
Superia (Popular)
Products well received in the market, gaining
customer acceptance
By investments in brands – celebrity
endorsements
Investments being made in Research &
Development and strategic tax incentivized
manufacturing sites
12. Between February and June 2008, ITC expanded its personal
care portfolio with the launch of Vivel range of soaps and
shampoos to cater to the specific needs of a wide range of
consumers.
This high quality range of soaps and shampoos are for the
upper-mid and mid-market consumer segments. All
products offer a unique value proposition of bringing
together ingredients that provide the benefit of Nourishment,
Protection and Moisturisation through one product, hence
providing the ever discerning consumer complete care, which
makes her beautiful and confident.
18. Vivel Luxury
Crème with Olive
Butter
Vivel Luxury
Sandal Crème with
Milk Butter
Vivel
Mixed Fruit
+ Cream
Vivel Aloe Vera
Vivel Refresh +
Moisturize Vivel Luxury
Crème with
Shea Butter
Vivel Green
Tea
19. Vivel Luxury Crème Body Wash
with Olive Butter. Vivel Luxury
Crème Deep Nourishing Body
Washes cocoons your skin with
rich butters, making it Butter Soft.
Known for its natural goodness,
Olive Butter pampers skin, making
it gorgeous and radiant.
Vivel Luxury Crème Body
Wash with Shea Butter. Vivel
Luxury Crème Deep Nourishing
Body Washes cocoons your skin
with rich butters, making it Butter
Soft.
Shea Butter is known to be an
excellent moisturiser that coddles
skin gently and makes it butter
soft and beautiful.
22. Trade channel covers the distance between
the producer and the consumer
ITC Foods/Fmcg utilizes distribution network
efficiently
Distributes products to more than a million outlets
across the country
Distribution centres located in the major states
E-choupals-distribution channel where the farmers
are linked to the company
It even uses the services of Panwalaasfor distributing
its brands
23. Supervision process is to avoid overstocking and stock outs
Frequency of distribution to retail outlets
Help retailers manage their stock better
company can manage working capital better
ERP based logistics link-Distributers-Warehouses-Marketing
branches toits head offices and factories
Developed a companywide hybrid network called Project
Infoben
25. Price
Pricing Strategy ITC Foods Business Division (Staples)The FMCG & RETAIL
Pricing Strategy UNDERSTANDING THE PROCESS FMCG Pricing Strategy is now
a critical element of the management mix. Old school management
responsibilities of Sales owning the trade spend budget and customer
negotiations with marketing owning the Recommend Retail Price do not work
in today's information driven age. Retail sales volume is now 80% controlled
by 2-3 chains with a scattering of independent operators making up the rest
of the volume. This concentration means the negotiations favour the retailer
with the supplier handing over margin via the mechanism of trading terms
and via the demand for increased promotional frequencies and deep price
discounts on key brandedlines.The challenge for Trade Marketing, Category
Management as well as Sales and Marketing isto develop a pricing system
that can be customized to reflect your Is this Essay helpful? Join Poppers to
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business needs but utilize the power of a structured and proven pricing
management system.
26. The Basic Concept used by ITC is: “PRICE IS SOMETHING WHICH
CUSTOMER IS READY TO PAY FOR YOUR PRODUCT” 'Hence it is a
majority function of - Consumers purchasing Power.- Market
condition created by the Competitor in terms of the Price. PRICING
STRATEGY Pricing is an important strategic issue because it is
related to product positioning. Furthermore, pricing affects other
marketing mix elements such as product features, channel
decisions, and promotion. While there is no single recipe to
determine pricing, the following is a general sequence of steps that
are followed for developing the pricing of product:1. Develop
marketing strategy - perform marketing analysis, segmentation,
targeting, and positioning. Methods Adopted: Box Plot Method: i.e.
Market Segmentation2. Make marketing mix decisions - define the
product, distribution, and promotional tactics.3. Estimate the
demand curve - understand how
28. Brand ambassador of ITC is Kareena Kapoor who has a huge
fan following.
ITC provides its customers with large varieties of product.
This avails the customers with wide range of selection.
ITC believes in huge and rigorous promotion practices.
In metro cities, ITC adopts selling strategies like personal
selling and home to home selling.
ITC focuses on attractive packaging of its products.
Discounts and offers are also a part of ITC’S promotion
strategy.
Promotion.
31. India's largest Fast Moving Consumer Goods company with 100 factories across
India.
In 1931, first Indian subsidiary, Hindustan Vanaspati Manufacturing Company,
followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).
HUL formed in November 1956;
The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever
Limited.
one of the country's largest exporters and recognised as a Golden Super Star
Trading House
The mission – “add vitality to life.”
34. Mothers are the true
experts when it comes to
their family’s health. These
six variants help you
protect your family from
the 10 infection causing
germs and stay one step
ahead of them.
Lifebuoy Totalprotect
Lifebuoy Mildcare
Lifebuoy Naturepure
Lifebuoy Activfresh
Lifebuoy Vitaprotect
Lifebuoy Moistureplus
36. Lifebuoy soap has been promoted through
all type of media like T.V; Radio;
Newspaper; etc. HUL also promoted
lifebuoy through local bodies like ‘Gram
Panchayat', ‘Swasthya Parishad' by
offering knowledge for using good and
anti-germ products. HUL focused on the
promotional campaign in rural sector.
They also concentrated on promoting
through radio and sponsoring programmes
like ‘Krishi Darshan' and ‘Aap ka
Swasthya' programmes that have greater
number of audience.
PROMOTION
37. It has made his strategy like that in every small or big shop
customer will be able to find out the product. It has already
appointed 6000 such sub- stockists . As a result, the distribution
network directly covers about 50,000villages, reaching about 250
million consumers. By the swasthya chetna project company
has already covered great % of villages and is being progressively
extended.
PLACE
38. S.NO BASIS OF
DIFFERENCE
ITC’S VIVEL HUL’S LIFEBOY
1 PRICE RS. 15/- PER 120 GM. RS. 22/- PER100 GM.
2 PRODUCT ABOUT 17 TYPES OF
VIVEL SOAPS
ABOUT 22 VARIETIES
OF LIFEBOY PRODUCTS
3 PLACE DISTRIBUTES ITS
PRODUCT IN ABOUT
22,440,990 RETAIL
STORES IN INDIA
DISTRIBUTES ITS
PRODUCT IN ABOUT
31,992,361 RETAIL
STORES IN INDIA
4 PROMOTION TAKES HELP OF TV
MEDIA AS WELL AS
PERSONAL SELLING.
TAKES HELP OF TV
MEDIA AS WELL AS
PERSONAL SELLING.