ITC limited is one of top Indian companies.....here I am discussing about
Marketing mix of ITC .......
Let's start with introduction of ITC limited...
ITC Limited is an Indian company headquartered in Kolkata, West Bengal.Established in 1910 as the 'Imperial Tobacco Company of India Limited', the company was renamed as the 'India Tobacco Company Limited' in 1970 and later to 'I.T.C. Limited' in 1974.
The dots in the name were removed in September 2001 for the company to be renamed as 'ITC Limited' where 'ITC' would no longer be an acronym.
ITC has a diversified presence across industries such as Cigarettes, FMCG, Hotels, Packaging, Paperboards & Specialty Papers and Agribusiness. The company completed 100 years in 2010 and as of 2012-13, had an annual turnover of US$8.31 billion and a market capitalization of US$50 billion.
It employs over 30,000 people at more than 60 locations across India and is part of Forbes 2000 list.
Competitors:
HUL, P&G, Marico, Colgate-Polmolive, Dabur, L'Oreal, Godfrey Phillip, VST, Golden Tobacco, etc.
Product strategy of ITC:
The product strategy and mix in ITC marketing strategy can be explained as follows:
ITC is a leading FMCG company in India. ITC has a dynamic portfolio in its marketing mix with businesses spanning FMCG, Agri-business, Hotels, Information technology, paperboard's and packaging. The product lines have great product length and depth.
In FMCG goods ITC is India’s leading marketer. ITC comprises of packaged food, Lifestyle retailing, Education and stationery products, safety matches and incense sticks, personal care products. ITC’s food brands include Sun-feast with sub-brands Dark fantasy, Yum fills, Bounce; Bingo, Candy man, Yippee, Gum On, Mint-O, Kitchen of India, Aashirvaad, Fabelle, Sun fresh, B natural and Sunbeam.
Within each of these brands there are different variants of the product.For example, ITC Sunfeast offers biscuits, cookies and cakes; ITC Yippee offers instant noodles and pasta; candy man offers toffees, candies and mint.
ITC has a range of popular brands like Navy cut, Insignia, India Kings, Silk cut, Gold flake, Classic, Lucky Strike, Players, capstan, Bristol, Duke & Royal, which has won many awards.ITC has developed an array of products in the personal care segment.
Based on extensive consumer research and product development ITC’s brands like Fiama, Vivel, Essenza Di Wills, Engage, Superia have received a very positive response. Shower to Shower and Savlon are already very popular.
Wills Lifestyle and John Players are ITC’s lifestyle retailing businesses. They provide a tempting collection of apparels and a delightful shopping experience to their consumers.
Classmate and Paperkraft offer a variety of products in the education and stationery business. Classmate is the largest notebook brand in the country.
Carton board packaging, flexible packaging are the different product lines of ITC’s packaging business.
ITC has a premium range of luxury hotels in over 70 destinations. ITC hotels are the greenest luxury hotels in the world because of its sustainable and responsible policies.
Price strategy of ITC:
Below is the pricing strategy in ITC marketing strategy:
ITC has different price points as it has a diversified product portfolio. ITC have products in all price brackets but more and more new products are on the premium side as they provide higher margins.
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Pricing of the product depends on several things like pricing objective, the market one is operating in, the purchasing power of the consumers, the market condition, product’s market position etc.
For instance, as Bingo was entering the market, it adopted a very clever aggressive pricing strategy to capture the market share.
They maintained their prices as per the market leader but offered more quantity and more margin to the retailers which gave them a competitive edge.
ITC follows different marketing mix pricing strategy for different products.Their economy brands follow economy pricing.
Marketing and manufacturing cost is kept at a minimum.ITC had to hike the price its premium products in the industry due to hike in excise duty.Classmate is priced over 5% over its competitors.
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Place:
Following is the distribution strategy of ITC:
ITC has an unmatched distribution network. Its products are available in 4.3 million retail stores in India.
A strong distribution shows its marketing mix place strategy. ITC is constantly trying to reduce the lead time and to make the products reach to the retailers as quickly as possible.
Being an environment friendly organization, ITC is carbon positive, solid waste positive and water positive.
Out of the total energy it consumes over 47% comes from renewable sources. E-choupals ensure timely supply of high quality raw materials. ITC has well integrated manufacturing and Logistics facilities with a wide and deep distribution network.
All manufacturing units owned by ITC are hazard Analysis and critical control point certified. ITC has distinctive agri-sourcing capabilities with farm linkages in over 17 states which provide it with high quality wheat, soya, potato, coffee etc.
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It has an efficient CRM program for commodity customers. ITC's Paperboards and Specialty Papers Division has four manufacturing units, eight regional sales offices and over 60 dealers in India.
ITC has over 100 hotels are present in 70 destinations. ITC’s food products are exported to North America, Middle east, Africa and Australia. It is also one of the largest exporter of Agri-products and coated boards in India.
Promotion strategy of ITC:
The promotional and advertising strategy in the ITC marketing strategy is as follows:
ITC designs its promotion strategy keeping in mind its brand proposition and its target audience. It promotes its product through Print, television and radio as a part of its marketing mix. ITC’s different brands have different brand ambassadors.
For example, classmate has been endorsed by Yuvraj Singh and Soha Ali Khan; Saina Nehwal has endorsed Salvon; Shahruk Khan has been endorsing the entire range of snacks under the umbrella brand of Sunfeast.ITC roped in Ranbir Kapoor for John players.
As part of ITC’s centenary initiative, Classmate launched the largest student contact program- Ideas for India challenge. It provided a platform for Indian youth to brainstorm and address the issues and challenges which our nation faces and help in developing the nation.
ITC also launches a lot of digital campaigns to ensure maximum participation. The Fiama De Wills Men campaign is one such example. Fiama DE Wills has had an association with the talented designer, Masaba Gupta for Wills Lifestyle Fashion Week. ITC also engage in cross marketing promotions.
YiPPee! Launched a campaign with Paytm offering recharge coupons equivalent to the price of YiPPee noodles. The company launched an advertisement to back the campaign.
Hence, this concludes the marketing mix of ITC.
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1 Comments
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