How ITC influenced the behavior of Indian Consumers.

Presented to : Dr Vijay K Pandey

Presented by: Amir Khan(13) Anurag Dangi(29) Asmit Chaudhary(36) Ayaz Zaidi(39)

INTRODUCTION
ITC Limited which previously stood for Imperial Tobacco Company one of India's foremost private sector companies. Transform itself from a leading Cigarette manufacturer to an umbrella group which offers diversified products. Forayed into field of FMCG, IT, Agri- business to obtain different revenue stream. Successful in Hotel Business(ITC welcome group) and collaborated with Sheraton Corporation. ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is pursuing emerging opportunities in providing end-toend IT solutions, including e-enabled services and business process outsourcing. ITC's Agri-Business is one of India's largest exporters of agricultural products.

VISION & MISSION

Vision: Sustain ITCs position as one of Indias most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders. Mission: To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.

NEED FOR DIVERVICATION

Core business of ITC is in the manufacture of cigarettes and tobacco. On domestic front, it realized that there was huge revenue potential for a launch of wider product range to the Indian consumer base. ITCs FMCG business has one of largest retail networks in the country(2 million retailers) Government ban on advertisements of cigarettes, high tax rates, decline for the demand of cigarettes. The company felt the to diversify from the early 1970 and started entering those business that provides good ROI and a potential for future expansion. Leads to concentrate to the other business opportunities.

DIVERSIFICATION OF ITC
Branded Apparel Hotel

Stationery

Cigaretes

Packaged Foods

Incense Sticks

Paper boards

Personal Care

Information Technology

Agricultu -ral Industry

Safety Matches

Diversification Strategy
Cigarettes : Focus to deliver highest product quality and value to consumers helps them to lead in cigarettes industry. To boost sales growth introduce festivals packs of brands like: flake filter, bristol filter, berkeley filter and Scissor filter. Branded food business(2001): Launch kitchen of India(Canned foods from ITC Bukhara restaurants). Brand offers ready to serve products. Introduced Aashirwad brand of wheat(atta) in 2002. Entered into biscuit market by launching Sunfeast brand in 2003.

Stationery products:
Launch greeting cards under the brand name Expressions. Gain popularity due to introduction of cards in different languages.

Safety matches
Increase market share and its sales by offering unique designs and value added features such as AIM.

Hotels(1975)
Four brands- ITC Welcome group, Welcome hotels, Fortune hotels, Welcome heritage

SWOT Analysis
Strength Weakness Cigarette market is 22,000 cr and ITC has Dependence on tobacco revenues lions share in it Negative Connection of Tobacco Strong brand recognition and product portfolio Distribution network Management Opportunity Low per capita consumption Of personal care products Rural Market Regulatory restrictions on cigarettes Threat Competition both Domestic & International Increasing Tax on cigarettes

E-Choupal
Ban on smoking Terror attacks

In case of tobacco industry

Low bargaining power of customer

Low substitutes due to strict laws

High bargainng power of supplier

Porters 5 forces
High threats of new entrants

High rivalry

Market share of ITC Ltd.

Outstanding market leader Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports. Gaining market share Nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.

Corporate Social Responsibility

ITC's businesses generate livelihoods for over 5 million people.

ITC's globally recognised e-Choupal initiative is the world's largest rural digital infrastructure benefiting over 4 million farming families. ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating an estimated 35 million person days of employment among the disadvantaged. ITC's Watershed Development Initiative brings precious water to nearly 35,000 hectares of dry lands and moisture-stressed areas. ITC's Sustainable Community Development initiatives include women empowerment, primary education.

Issues with ITC

Advertisement ban 2003 Decrease in sales of Cigarettes Luxury tax Regulatory laws Health awareness

ITC. Touching your life. Everyday