final itc ppt
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1ITC LIMITED
2
IN THE NEXT ONE HOUR……
Introduction & History…. Marketing Channels….
...Distribution Network
…Product Decision
…BCG Matrix ITC Foods: TASTING SUCCESS ? ….
…Ready-To-Eat
…Confectionery
…Staples
…Biscuits
3
SWOT Analysis….Group Analysis….
…Learning Points
…Future Prospects
…HighlightsReferences….
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ITCONE OF INDIA’S MOST VALUABLE CORPORATION
One of India’s premier private limited groups with over 97 years
of experience
Large and established Distribution Network
Having market capitalization of US $ 15 billion
Annually turnover of the company is US $ 4.75 billion
It is one of the 8 Indian Companies to feature in ‘Forbes A-list’ for 2004
Rated as: The Forbes Global 2000 rankings for
2006 at position 1171.
Third in pre-tax profit among India's private sector corporations.
No. 1 in FMCG Sector by IMRB-Business world Survey 2006.
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HISTORY OF THE COMPANY….
24th August 1910
• Company was incorporated as a Private Company under the name, Imperial Tobacco Co. of India Ltd.
27th October 1954 • The Company was converted into a
Public Limited Company.
May 1970
• The name of the Company was changed from the Imperial Tobacco Co. of India Ltd., to India Tobacco Co. Ltd
October 1975• Company entered into hotel
business.
2000
• Company has launched a project "e-Choupal" in Bhopal to Web-enable farmers to make a beginning in agricultural e-trade.
• launched Wills Sport, a full range of internationally styled premium wear for men and women.
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Accolades & Awards….
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ACHIEVMENTS….
2006
• Stockholm Challenge Award
2005
• Golden Peacock Award
2004
• World Business Award
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Product….
1 • Goods
2 • Services
3 • Ideas
What is a Product?Solutions a marketer provides to its target market
Types of Product
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Categories of consumer product…..
Shopping Products
Specialty Products
Emergency Products
Unsought Products
Convenience Products
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The BCG Matrix for ITC..
StarsHotels
Paperboard/Packaging
Agri- business
?FMCG-Others
CowsFMCG-
Cigarettes
Dogs
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Product Decisions….. A Product is designed to provide the core benefits
sought by the target market
.
The marketer offers the benefits through a combination of factors that make up the actual product Four key factors together help shape the actual product
• Product-featurtes
• Branding
• Labeling
• Packaging
1 2
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Distribution Channel… Trade channel covers the distance between the
producer and the consumer ITC Foods utilizes distribution network efficiently Distributes products to more than a million outlets
across the country Distribution centers located in the major states e- choupals - distribution channel where the farmers
are linked to the company It even uses the services of Panwalaas for distributing
its brands
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Distribution philosophy- that of channel-tailored
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 to its head offices and factories
Developed a companywide hybrid network called Project Infoben
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ITC GROUP OVERVIEW
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ITC - Business Portfolio
HOTELS & I.T.
FMCG & CIGRATES
Agri Business PAPERBOARD & PACKAGING
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The ITC Group...Enduring Values
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The ITC Group...Enduring Values
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Ready-To-Eat…..
2001• Launched the koI brand under sub-
brands- bukhara, dum pukht and dakshin
2003• Gharana• Started website www.kitchenofindia.com• Brand sweets• Starting exporting its brand product
2004 • Launched conserves and cooking pastes•Won the National Excellence Award and was conferred the title “King of Ready-To-Eat Products”.
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2005 •Entered the branded spices market
2006 •Entered the instant mix segment •Planned to introduce 10 more varieties
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Ready-to-eat…MTRRava idly mixKhara Bhaath Mix
Satnam Overseas LimitedKohinoor
Priya FoodsPickels Instant mixes
Competitors
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Confectionery….
2002 • Mint-O
2003 • Candyman
2004 • Minto-O-Fresh
2005 • Coffitino
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Confectionery….Perfetti Van MelleAlpenliebeCenter Shock
ParleMelodyMango Bite
Competitors
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Biscuits….2003 •Entered with the brand SUNFEAST
•3 varieties Glucose, Marie and Cream
2004 •Launching of Sunfeast Milky Magic•Also launched Sunfeast Strawberry Cream, Sunfeast Pineapple Cream and Sunfeast Coconut
2005 •Launching of Sunfeast Golden Bakes•Launching of Sunfeast Pista
2006 •Tied up with House of spices to launch Sunfeast across US
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BRANDING STRATEGIES….
Brand AmbassadorsSharukh KhanSachin Tendulkar
Sunfeast Hara Banao Campaign
The Sunfeast Open 2005
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Market Share in 2004-05ITC3%
Parle46%
Britannia38%
Surya7%
Anmol4%
Priya2%
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Market Share in 2005-06ITC6%
Parle46%Britannia
36%
Surya6%
Anmol4%
Priya2%
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STAPLES…
2002 •Entered the staples market with wheat flour under the ashirwad brand•GOI proposed to remove restrictions
2003 •ITC extended the ashirwad brand to edible salts
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Positioning •Health and Hygiene•Value for money
SuccessFactors
•An effective distribution network•Quality of the product
Competitive Advantage
•Cost advantage owing to e-choupal•Printing and packaging business
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E-CHOUPAL….
Initiated in 2000 to establish a strong agricultural product supply chain
• Helped farmers to become “MARKET ORIENTED”
In 2004 ITC opened “CHAUPAL SAGAR”, a village shopping complex
• In early 2006 ITC e-choupal covered 7 states
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E - Choupal
STRENGTHS….
Channels of
marketing and
product decision
Experience
Innovation
Diversification in product
line
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Segmentation at a later stage
Unrelated diversificati
on
Negative perception
with the name ITC
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WEAKNESSES…
OPPORTUNITIES….
Going global
Reaching complete
India
Giving tough
competition
Expanding into
segments
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THREATS….
Competitors
Increase in taxes
Health hazards
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Financial Aspects..
Business/ Year Growth %
Value (Rs in Crore)2005 2004
FMCG-Cigarettes
8.4 10002.5 9230.2
FMCG-Others 85.2 563.3 304.1
Hotels 124.1 577.2 257.5
Agribusiness 4.2 1780.0 1708.7
Paper & pkg. 24.9 1565.3 1253.2
Net revenue 12.9 13349.5 11815.0
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LEARNING POINTS…..
Well Managed Distribution Network…
Diversified Presence in Business…
Pre-Launch Research…
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Continued….
Strong Promotional Strategy..
Product Offering….
E-Choupal….
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Market position…
Outstanding market leader • Cigarettes, Hotels, Paperboards, Packaging
and Agri-Exports.
Gaining market share • Nascent businesses of Packaged Foods &
Confectionery, Branded Apparel and Greeting Cards.
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FUTURE PROSPECTS…
Next “Sunrise Industry” in
India”….
Large Scale Farming….
Government’s assistance for
“Food Parks”….
Newer Product Categories….
Expansion in Rural
Market…..
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HIGHLIGHTS……
Economic Performance... India's largest FMCG Company Fastest growing Foods business 2nd largest exporter of agri commodities Accounts for 2% of country's agri-exports Gross Income of Rs 16,511 crores (US $ 3.5 billion) Market capitalisation of Rs 73,207 crores (US $ 16
billion) Foreign exchange earnings of US $ 2.5 billion (1997-
2006)
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Continued….
Social Performance….Empowering over 3.5 million farmers through
nearly 6,000 e-Choupals covering 36000 villages… (As at November 2006: 6,500 e-Choupals covering 38000
villages)
37,000 children covered under rural education….
(As at November 2006: 60,000 children)2154 women entrepreneurs created…..
(As at November 2006: 4,867 women entrepreneurs)
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Continued….
Environmental Performance…Getting closer to zero solid waste discharge…
(through reduction, reuse and 100% recycling)Water positive: four years in a row…..
(Creating Rainwater Harvesting potential greater than net consumption)
ITC turns Carbon positive…….
(storing more CO2 than it emits)
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REFERENCES…..
• www.itcportal.com• www.kitchensofindia.com• www.business-today.com• www.timesofindia.com• www.ficci.com• Marketing Management-Philip Kotler
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Group 5….
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QUERIES….?
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