ITM Business School, Navi Mumbai Programme: PGDM (IB)

B2B Marketing: ITC Ltd

Date:5 th Dec 2011

Submitted by:
Aditi Pednekar (39) Komal Nerlekar (05) Disha Desai (40) Chitranshi Gupta (27) Aakash Sablani (49) J R Ray (24)

Submitted to:
Prof. Chefi Garg

ITC Vision:
Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders.

ITC Mission:
To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.

Goal of the Company:

We are always customer focused and will deliver what the customer needs in terms of value, quality and satisfaction.

About the Company:

In line with ITC's aspiration to be India's premier FMCG company, recognised for its world-class quality and enduring consumer trust, ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC has already launched an array of brands, each of which offers a unique and superior value proposition to discerning consumers. Anchored on extensive consumer research and product development, ITC's personal care portfolio brings world-class products with clearly differentiated benefits to quality-seeking consumers. ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel UltraPro', 'Vivel' and'Superia' brands has received encouraging consumer response and is being progressively extended nationally. ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and benchmarked manufacturing practices. Contemporary technology and the latest manufacturing processes have combined to produce distinctly superior products which rank high on quality and consumer appeal.

Extensive insights gained by ITC through its numerous consumer engagements have provided the platform for its R&D and Product Development teams to develop superior, differentiated products that meet the consumer's stated and innate needs. The product formulations use internationally recognised safe ingredients, subjected to the highest standards of safety and performance.

ITC FMCG Business Portfolio:

Over the last few years, ITC has rapidly scaled up presence in its newer FMCG businesses comprising Branded Packaged Foods, o Lifestyle Retailing, o Education and Stationery products, o Personal Care products, o Safety Matches and Incense Sticks (Agarbatti) with Segment Revenues growing at an impressive compound annual growth rate of 38% during the last 5 years. The Companys unwavering focus on quality, innovation and differentiation backed by deep consumer insights, world-class R&D and an efficient and responsive supply chain will further strengthen its leadership position in the Indian FMCG industry.

To study the buying behavior of the customers let us choose a product from the varied range of FMCG products of the personal care section, provided by ITC. The product our group chose is Essenza Di Wills

About Product:
ITC launched an exclusive line of prestige fine fragrances under the Essenza Di Wills brand in mid 2005.Essenza Di Wills is an exclusive range of fine fragrances and bath & body care products for women and men.

Key customers:
As Essenza Di Wills is a premium ranged product, the key customers of this product are upper class strata within the high income group.

Segmentation:
The main activity segmenting consists of four sub activities. These are:
1. 2. 3. 4.

Determining who the actual and potential customers are. Identifying segments. Analyzing the intensity of competitors in the market. Selecting the attractive customer segments.

For Essenza Di Wills, potential customers are those which belong to a segment of a company's brands or products that carries tangible or imaginary surplus value in the upper mid- to high price range. Premium brands are designed to convey an impression of exclusiveness, especially in the mass markets. Frequently, companies will invent different (sub)brands to differentiate their product lines into a premium and a general segment.

Launch of the product:

While launching the product in the market, ITC focused on the quality and identified the demand of the product. The marketing activities were focused on specific advertisement mediums such as premium magazines, business newspapers, etc

Pricing of the product:

ITC went in for Premium pricing as a pricing strategy. Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. The practice is intended to exploit the (not necessarily justifiable) tendency for buyers

to assume that expensive items enjoy an exceptional reputation or represent exceptional quality and distinction.

What's ITC doing that's different from its competitors?

Well, it is working on a different model from them, but Naware says the market is too big for anyone to worry about competition. For instance, branded and packaged foods is only 8 per cent of a total food market worth a staggering Rs 5,00,000 crore (Rs 5000 billion). This is expected to increase to 15-20 per cent in the next six years. Should that happen, there's more than enough room, and then some more, for everyone to coexist.

Conclusion:
ITC has developed an exceptional plan for Essenza Di Wills even after having an image of being a cost sensitive company for the masses. ITC ltd is a case in itself and has made us understand product line extensions effortlessly.