Product Mix & Advertising strategy used by ITC

1. Marketing
Assignment
One of India’s Most Valuable
Corporations
India Tobacco Company
(I.T.C.)
Submitted by:
ANUBHAV SHARDA
Seat no: 09 – D
Enrol. no:
16BSPHH01C0161

2. ABOUT THE
COMPANY…
 One of India’s most Admired and Valuable companies
- Market Capitalisation: Rs. 3 lakh crores
 A US$ 8 billion enterprise by Revenue
- 57% of Net Revenue from non-Cigarette segments
 One of the largest retailing network in the country
 Ranked 8th in the ET 500 survey.
 Leading Fast Moving Consumer Goods (FMCG) marketer in India
- Established several world-class brands in the last 10 years
 A global exemplar in sustainable business practices

3. PRODUCT MIX of ITC

4. ITC’s Business
Portfolio FMCG
Cigarettes Foods Personal Care Lifestyle Retailing
Education & Stationery
Safety Matches &
Incense Sticks
Hotels
Paperboards, Paper &
Packaging
Agri Business Information Technology

5. Dominance & Revenue
Segment Dominance Contribution
Revenue PBIT
Cigarettes 70% share 77.0% 87.7%
Paperboards &
Packaging
No.1 in Asia 7.3% 10.7%
Agri business 1 largest exporter in Asia 7.0% 3.7%
Hotels
FMCG(others)
ITC group Rank No.2
20% Share of Greeting
Market , Aashirvad Atta is
No.1 in it’s Segment
4.3% 5.4%
4.4% -7.5%

6. FOODS

7. Personal Care

8. EDUCATION & STATIONARY

9. LIFESTYLES

10. SAFETY MATCHSTICKS
& INCENSE STICKS

11. CIGARETTES

12. 1. ITC made its entry into the HOTELS business
in 1975 from Chennai.
2. It consists of over 70 hotels across India
3. These include super deluxe and five star
hotels, heritage palaces, havelis and resorts
and full service budget hotels.
ITC’s Hotel
Business

14. 1. ITC InfoTech, a global IT
services company, is today one
of India’s fastest growing IT
and ITES service providers.
2. Providing outsourced IT
solutions and services to
leading global customers.
ITC’s
Information &
Technology

15. 3. ITC InfoTech has a strength of over 2,000
employees and delivery centers across North
America, Europe.
4.Asia-Pacific that serve Fortune-listed
companies in 42 countries.
5.ITC InfoTech conforms to the highest standards
in international process Quality.

16. ITC’s Paperboard business
1.ITC's Paperboards business has a manufacturing capacity
of over 360,000 tones per year.
2.India's market leader across all carton-consuming
segments including cigarettes, foods, beverages any many
more.
3.ITC is a front-runner in introducing environment-friendly
Elemental Chlorine Free (ECF) technology
4.It is the first-mover in the field of collecting and recycling
post-consumer waste from residential localities, corporate
and educational institutes

17. 1. ITC's International Business Division( IBD) is the
country's second largest
exporter of Agri-products with exports of over Rs.
1000 Crores (Rs. 10 billion).
2.IBD domestic sales of Agri-products are in excess of
Rs. 1500 Crores (Rs. 15 billion).
ITC’s Agri-
Business

18. ADVERTISING
STRATEGY OF ITC FOR
ITS TOBACCO
PRODUCTS IN INDIA

19. TOBACCO INDUSTRY IN
INDIA
 Legal cigarettes account for only ~11% of tobacco consumed in India due to a punitive taxation
and discriminating regulatory regime
 Illegal cigarette industry in India estimated to constitute 1/5th of the Total industry; 4th
Largest Market in the World; resulting in Revenue loss of over 9000 cr. p.a. to the National
Exchequer
 48% of adult Indian males consume tobacco. Only 10% of adult Indian males smoke cigarettes
as compared to 16% who smoke bidis and 33% who use smokeless tobacco (Source: Global
Adult Tobacco Survey India 2010)
 Annual per capita adult cigarette consumption in India is approx. one-ninth of world average.

20. STRATEGIES…
 Point of sale Promotion of Tobacco Products.
 Sampling and value incentives
 Brand extension
 Product placement
 Packaging and product design features

21. STRATEGIES…(cont.)
 Sponsorship
 Corporate social responsibility
 Stealth advertising and promotion
 “Word-of-mouse” in the wild Web

23. THANKYOU