A Project On “The Best Selling Product Of ITC And It’s Competitors.”

Presented by – Ankush kumar Roll no – 13 Section A BIITM

History and Evolution

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited, 'where ‘ITC’ is today no longer an acronym or an initialised form.

ITC’S BUSINESS PROTFOLIO.

Competitors of ITC.

HINDUSTAN UNILEVER LIMITED

PROCTER & GAMBLE HYGIENE & HEALTH CARE LIMITED.

GODREJ CONSUMER PRODUCTS LIMITED.

DABUR INDIA LIMITED.

FMCG.

Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, over-the-counter drugs, toys, processed foods and many other consumables. In contrast, durable goods or major appliances such as kitchen appliances are generally replaced over a period of several years. FMCGs have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly.

Though the profit margin made on FMCG products is relatively small (more so for retailers than the producers/suppliers), they are generally sold in large quantities; thus, the cumulative profit on such products can be substantial. FMCG is probably the most classic case of low margin and high volume business.

Fast-moving consumer electronics are a type of FMCG and are typically low priced generic or easily substitutable consumer electronics, including mobile phones, MP3 players, game players, and digital cameras which are of disposable nature.

ITC’S FMCG

CIGARETTES &

CIGARS

FOODS LIFEST

YLE RETAILI

NG

PERSONAL CARE

EDUCATION AND STATION

ARY AGGARBATTIS

SAFETY MATCHE

S

ITC’S Personal Care Products.

1- Essenza Di Wills,

2- Fiama Di Wills, 3- Vivel and 4- Superia

Current market size estimated at over Rs. 29000 cores (growing at 12% p.a.)

ITC presence established in Body Wash (Soaps, shower gels), Hair Care (Shampoos, conditioner).

Product portfolio enlarged with the launch of Fairness cream.

Portfolio approach straddling all consumer segments with 4 umbrella brands

Essenza Di Wills (Prestige)

FACTS ABOUT PERSONAL CARE PRODUCT.

Fiama Di Wills (Premium)

Vivel Di Wills and Vivel (Mid)

Superia (Popular)

Products well received in the market, gaining customer acceptance

By investments in brands – celebrity endorsements

Investments being made in Research & Development and strategic tax incentivized manufacturing sites

BEST PERSONAL CAREPRODUCT OF ITC.

VIVEL

SKIN CARE SOAPS BODY

WASHHAIR CARE

VIVEL GLOW

Between February and June 2008, ITC expanded its personal care portfolio with the launch of Vivel range of soaps and shampoos to cater to the specific needs of a wide range of consumers.

This high quality range of soaps and shampoos are for the upper-mid and mid-market consumer segments. All products offer a unique value proposition of bringing together ingredients that provide the benefit of Nourishment, Protection and Moisturisation through one product, hence providing the ever discerning consumer complete care, which makes her beautiful and confident.

VIVEL

PRODUCT• VIVEL

PLACE• DISTRIB

UTION CHANNEL

PRICE• PRICING

POLICY

PROMOTION• ADVERTI

SING

Marketing MIX

1- Marketing mix (Product).

ViveL Products.

VIVEL Skin Care.

VIVEL Skin Care

Face wash

Vivel Active Essentials 3 in 1 Facewash +

Scrub

Lips care

Vivel Active Essentials

Kokum Butter Lip Care

Vivel Bath Care.

BATH CARE

BATHING BARS AND SOAPS

BODY WASHES

BATHING BARS AND SOAPS

Vivel Luxury Crème with Olive Butter

Vivel Luxury Sandal Crème with Milk Butter

Vivel Mixed Fruit + Cream

Vivel Aloe Vera

Vivel Refresh + Moisturize Vivel Luxury

Crème with Shea Butter

Vivel Green Tea

BODY WASHES.

Vivel Luxury Crème Body Wash with Olive Butter. Vivel Luxury Crème Deep Nourishing Body Washes cocoons your skin with rich butters, making it Butter Soft. Known for its natural goodness, Olive Butter pampers skin, making it gorgeous and radiant.

Vivel Luxury Crème Body Wash with Shea Butter. Vivel Luxury Crème Deep Nourishing Body Washes cocoons your skin with rich butters, making it Butter Soft. Shea Butter is known to be an excellent moisturiser that coddles skin gently and makes it butter soft and beautiful.

HAIR CARE.

HAIR CARE.

Volume & Bounce

Shine & Glow

Soft & Fresh

2-Marketing Mix (Place).

DISTRIBUTION CHANNELS. Trade channel covers the distance between

the producer and the consumer 

ITC Foods/Fmcg utilizes distribution network efficiently

Distributes products to more than a million outlets across the country

Distribution centres located in the major states

E-choupals-distribution channel where the farmers are linked to the company

It even uses the services of Panwalaasfor distributing its brands

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 toits head offices and factories

Developed a companywide hybrid network called Project Infoben

3- Marketing mix (Price).

PricePricing Strategy ITC Foods Business Division (Staples)The FMCG & RETAIL Pricing Strategy UNDERSTANDING THE PROCESS FMCG Pricing Strategy is now a critical element of the management mix. Old school management responsibilities of Sales owning the trade spend budget and customer negotiations with marketing owning the Recommend Retail Price do not work in today's information driven age. Retail sales volume is now 80% controlled by 2-3 chains with a scattering of independent operators making up the rest of the volume. This concentration means the negotiations favour the retailer with the supplier handing over margin via the mechanism of trading terms and via the demand for increased promotional frequencies and deep price discounts on key brandedlines.The challenge for Trade Marketing, Category Management as well as Sales and Marketing isto develop a pricing system that can be customized to reflect your Is this Essay helpful? Join Poppers to read more and access more than 325,000 just like it! Get better grades business needs but utilize the power of a structured and proven pricing management system.

The Basic Concept used by ITC is: “PRICE IS SOMETHING WHICHCUSTOMER IS READY TO PAY FOR YOUR PRODUCT” 'Hence it is a majority function of - Consumers purchasing Power.- Market condition created by the Competitor in terms of the Price. PRICING STRATEGY Pricing is an important strategic issue because it is related to product positioning. Furthermore, pricing affects other marketing mix elements such as product features, channel decisions, and promotion. While there is no single recipe to determine pricing, the following is a general sequence of steps that are followed for developing the pricing of product:1. Develop marketing strategy - perform marketing analysis, segmentation, targeting, and positioning. Methods Adopted: Box Plot Method: i.e. Market Segmentation2. Make marketing mix decisions - define the product, distribution, and promotional tactics.3. Estimate the demand curve - understand how

4-Marketing mix (promotion).

Brand ambassador of ITC is Kareena Kapoor who has a huge fan following.

ITC provides its customers with large varieties of product. This avails the customers with wide range of selection.

ITC believes in huge and rigorous promotion practices.

In metro cities, ITC adopts selling strategies like personal selling and home to home selling.

ITC focuses on attractive packaging of its products.

Discounts and offers are also a part of ITC’S promotion strategy.

Promotion.

MAJOR PLAYERS

HINDUSTAN UNILEVER LIMITED

PROCTER & GAMBLE HYGIENE &• HEALTH CARE

LIMITED.

GODREJ CONSUMER PRODUCTS LIMITED.

DABUR INDIA LIMITED.

HINDUSTAN UNILEVER LIMITED.

Introduction. India's largest Fast Moving Consumer Goods company with 100 factories across

India.

In 1931, first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).

HUL formed in November 1956;

The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited.

one of the country's largest exporters and recognised as a Golden Super Star Trading House

The mission – “add vitality to life.”

Lifebuoy Bar Soaps Mothers are the true

experts when it comes to their family’s health. These six variants help you protect your family from the 10 infection causing germs and stay one step ahead of them.

Lifebuoy Totalprotect Lifebuoy Mildcare Lifebuoy Naturepure Lifebuoy Activfresh Lifebuoy Vitaprotect Lifebuoy Moistureplus

product Package size

Price(Rs)

Lifebuoy care bath 120gm 15

90gm 12

Lifebuoy Deo fresh soap 90gm 10

Lifebuoy Milk care soap 90gm 12

Lifebuoy Nature bath 120gm 15

90gm 13

Lifebuoy clear Skin guard 75gm 15

Lifebuoy total 120gm 15

80gm 12

Product, price, place, promotion

Lifebuoy soap has been promoted through all type of media like T.V; Radio; Newspaper; etc. HUL also promoted lifebuoy through local bodies like ‘Gram Panchayat', ‘Swasthya Parishad' by offering knowledge for using good and anti-germ products. HUL focused on the promotional campaign in rural sector. They also concentrated on promoting through radio and sponsoring programmes like ‘Krishi Darshan' and ‘Aap ka Swasthya' programmes that have greater number of audience.

PROMOTION

It has made his strategy like that in every small or big shop customer will be able to find out the product. It has already appointed 6000 such sub- stockists . As a result, the distribution network directly covers about 50,000villages, reaching about 250 million consumers. By the swasthya chetna project company has already covered great % of villages and is being progressively extended.

PLACE

• Difference between ITC VIVEL’S Luxury Crème with Olive Butter& HUL LIFEBOY’S clear Skin guard.

S.NO BASIS OF DIFFERENCE

ITC’S VIVEL HUL’S LIFEBOY

1 PRICE RS. 15/- PER 120 GM.

RS. 22/- PER100 GM.

2 PRODUCT ABOUT 17 TYPES OF VIVEL SOAPS

ABOUT 22 VARIETIES OF

LIFEBOY PRODUCTS

3 PLACE DISTRIBUTES ITS PRODUCT IN ABOUT 22,440,990 RETAIL STORES IN INDIA

DISTRIBUTES ITS PRODUCT IN ABOUT 31,992,361 RETAIL STORES IN INDIA

4 PROMOTION TAKES HELP OF TV MEDIA AS WELL AS

PERSONAL SELLING.

TAKES HELP OF TV MEDIA AS WELL AS

PERSONAL SELLING.