Presentation on

By : Abhishek Agarwalla (12121) Chirag A Thakur (12133) Kumar Piyush (12145) Rohin Thomas (12157) Sowmya K (12169) Ashish Jain (12181)

ITC• Founded on August 24, 1910 as

Imperial Tobacco Company of India Limited

• It was rechristened to ITC Ltd in 2001

• Rapidly gaining market share in Food & Confectionery Market

• Market Capitalization $33 billion & turnover of $7 billion

• Core Competencies– Unmatched Distribution reach– Superior Brand building– Effective supply chain management

ITC

FMCG

Hotels

Paperboards & Specialty Papers

Packaging

Agri-Business

Information Technology

ITC Sunfeast

• ITC forayed into Biscuit segment in July, 2003

• Glucose, Marie and Cream Biscuits were launched

• Sunny is the mascot

• Brand essence-"Spread the Smile"

• Orange Marie and Butterscotch Cream biscuits

• Sunfeast Pasta Treat-2005

• Sunfeast Yippee noodles-2010

Why into Biscuits market?

• 12% growth in 2002(5% earlier)

• Parle and Britannia-76% market share

• Consumers wanted new tastes and there no innovative

products

BCG Matrix - ITC• Hotels

• Paper & Packaging• Agri- Business

• FMCG

• Cigarettes • ITC Infotech

• Sunfeast Milky Magic

• Sunfeast Marie Light

• Sunfeast Dark Fantasy

• Sunfeast Dark Fantasy Choco Fills

• Sunfeast Glucose

• Sunfeast Dream Cream

• Sunfeast Snacky

• Sunfeast Sweet ‘n Salt

• Sunfeast Nice

• Sunfeast Special

• Sunfeast Pasta Treat

• Sunfeast Yippee!

PRICE

• Two pronged strategy in pricing

• Prices of few Sunfeast products are:Product Weight Price

Dark Fantasy (chocolate and vanilla) 96gms Rs.22

Bourbon Dream Cream 75gms Rs.12

150gms Rs.24

Dark Fantasy Choco Fills 75gms Rs.30

Yippee noodles Magic masala 80gms Rs.10

Pasta Treat Cheese 70gms Rs.15

PLACE

Distribution

• ITC has strong distribution network

• FIFO method is used to reduce wastage due to expiry

• Constant movement of goods from low sales areas to high sales

areas

• Expired goods are collected four times a year

• Benefits are provided to retailers depending on sales volume and

location

• Distribution is fast, effective, flexible

SALES & DISTRIBUTION NETWORK

PROMOTION

• Promoted through television campaigns

that were distinct, highlighted product attributes,

quality and newness

• Well differentiated advertisements targeted at

children and mothers

• Tie up with Bey Blades

• Sunfeast school programme

• Celebrities like Sachin Tendulkar, Shahrukh Khan,

Surya are the brand ambassadors

SEGMENTATON

Demographic segmentation:

• Age and Life cycle stage:

– Sunfeast Glucose Biscuits : children between the age group 4–14 years and their mothers

– Sunfeast Orange Cream, Butterscotch Cream & Bourbon Cream : Children

• Income:

– Economy: Glucose, Milky, Special, Special Cream

– Medium : Golden Bakery, Treat

– Premium : Dark Fantasy

SEGMENTATION…

Psychographic Segmentation:• Life Style:

– Sunfeast Marie Light is directed as Light & Crispy biscuit targeting

housewives. Sunfeast Orange Marie also has a differentiated offering

targeting housewives.

– Sunfeast Snacky is directed as light and crispy biscuit targeted for

family members specially for having snacks

Behavioural Segment:• Benefit:

– Sunfeast Benne Vita Flaxseed Biscuits: People who are very health conscious.

TARGETING

- Glucose biscuit Children between 4-14 years & mothers

- Cream biscuit Children and youngsters

- Dark fantasy Teen and youth

- Marie light Housewives and adults

POSITIONING

• Marie Light: Tea-time biscuit

• Sunfeast Milky Magic: Nutritious biscuit for children

• Sunfeast Benne Vita Flaxseed: Healthy biscuit

• Sunfeast Nice : Nice moments

• Dark Fantasy: Premium biscuit

• Sunfeast Snacky: Family biscuit

• Golden Bakery: Rich biscuit

STRENGTHS

• Brand name.

• Distribution network.

• Wide range of innovative products.

• Active involvement of master chefs’ in. innovating new verities

of biscuits.

• ITC’s competitive advantage procurement of commodities

WEAKNESS

• Still dependent on tobacco business for revenues.

• The negative impact of tobacco in the name gives a picture of

poor health and premature death.

OPPORTUNITY

Scope of Increasing market share as:-

• Total production of biscuits in India is estimated to be around 30 lakh MT

• The biscuit industry is estimated to grow over 15-17% in the next few years.

In the mid to premium category, there are several taste buckets and categories available on the health & nutrition, indulgence and convenience platforms. “In these three platforms there is still a lot to be exploited. It is possible to innovate around that

THREATS

• Competition from other organized sector

• Entry of global players like kraft food ltd and McVitie’s

CURRENT PRODUCT NEW PRODUCT

1.Market Penetration (Intensive Growth)

3. Product Development (Intensive Growth)

CURRENT MARKET

Attract Users of Competitors Product. • Introduction of combo packs at

discounted price Increase Product Usage. • New usage like using Sunfeast Snacky

Classic salted and Chilli flakes biscuit with different toppings.

Increase the frequency of purchase. • Making small packages available like

sunfeast special at Rs.5 and Glucose biscuits at Rs.1

Product Reformulation • Sunfeast Marie Light Oats Product line Extension • Relaunch of Sunfeast Dark Fantasy

Cream Delight with new flavour New product development • Sunfeast Marie Light Orange dream

cream with Butter scotch flavour • Dark Fantasy Choco fills targeting

premium segment

CURRENT PRODUCT NEW PRODUCT

2. Market Development (Intensive Growth)

4. Diversification

NEW MARKET

Expand geographically

• Launched in the Middle East and Africa

Related • Sunfeast Yippie

• Sunfeast Pasta

Integrative Growth

Backward Integration- Procurement of agricultural raw materials from E-choupal

The major players in the Indian biscuit industry are:-

• Parle

• Britannia

• Priya gold

• Oreo

COMPETITOR’S ANALYSIS

MARKET SHARE

40

36

10

8

15

ParleBritaniaSunfeastPriyagoldKraft FoodsOthers

STRENGTH WEAKNESS

BRITANN

IA

• Well defined and appealing advertisements highlighting the core value of “energy and health”

• Well diversified portfolio of biscuits and innovative concepts of smaller size packets

• Only biscuit company to have removed trans-fat from all its recipes, catering to a market with sensitive needs

• Unable to come up with strategies to maintain market share- oreo, sunfeast biting into its market share

PARLE

• Brand image, one of the oldest in the country

• Extensive distribution system

• Low and mid range prices catering to all segments of consumers

• Overdependence on Parle G brand

• Rely more on retailers ad grocery stores to showcase their diversified product range rather than on individual advertisement of individual products.

• Declining market share

STRENGTH WEAKNESS

PRIYA

GOLD

• Extensive and varied portfolio of biscuits

• Quality assurance

• Big budget and willingness to invest in long term phases

• Lacking to cater to the High-income segment

• Inability to retain target consumers

OREO

• Oreo has collaborated with McDonalds, Dominos and Baskin Robbins to promote its product

• Very well-known brand name(Cadbury)

• Well established customer base

• Nutritional problems, high fat content and calories

• Limited flavours and varieties

RECOMMENDATIONS

• Quality improvement and image advertising as compared to market leader

• The company can look at diversifying into the chocolates and candies segment as the name sunfeast resonates well with the kids

• The premium and super premium segments according to industry experts are believed to be growing at around 30% annually. So sunfeast can come up with new varieties in premium segment

• Sunfeast should provide better benefits to wholesalers and retailers as Nestle is providing higher margin to retailers to compete in the market

References• · www.ibmabiscuits.in

• · www.indianmirror.com

• · www.wikipedia.org

• · http://business.mapsofindia.com/top-brands-india/top-noodle-brands-in-india.html

• · http://articles.economictimes.indiatimes.com/2011-03-16/news/28698081_1_instant- noodles-market-cg-foods-wai-wai

• · http://www.indiafoodbrief.com/opinion/154-from-the-editors-desk/126394-pasta-for-nasta-

• · http://www.thehindubusinessline.com/companies/article1474941.ece

• · http://itcportal.com/about-itc/itc-profile/history-and-evolution.aspx