EXECUTIVE SUMMARY: The report is an earnest endeavor made to understand the present market scenario of fairness creams and

simultaneously ascertain visibility and availability of ITC personal care products. ITC has launched body wash under its brand Vivel. Discover the latest market trends and uncover sources of future market growth for the Beauty and Personal Care industry in India with research from Euro monitors team of in-country analysts. Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections. 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', "Engage" 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.

Beauty and personal care shows no signs of slowdown Beauty and personal care continued to show consistent growth in value terms in 2012, driven mainly by the uptake of higher-priced products with new claims by urban consumers, and new consumers in second- and third-tier cities, who continued to show greater interest in self-grooming. To leverage the consumer base in second-tier cities, the leading companies continued to introduce products in smaller pack sizes and innovative pack formats to stimulate interest and increase the desire to try out such products. Beauty and personal care becomes more gender-specific Beauty and personal care products became increasingly gender-specific during 2012. This was driven by the desire to meet the needs of urban men, who were becoming increasingly appearance-conscious, and looked for male-specific products. Leading companies such as ITC and Hindustan Unilever introduced ranges of malespecific bath and shower products, in addition to the already growing ranges of mens skin care products which were available, in their aim to capitalize on the growing opportunities in this category. New launches and promotions intensify the competition Although beauty and personal care remained fragmented, international manufacturers maintained their lead in 2012. With a range of new launches in shower gel, anti-agers, facial cleansers and moisturizers, manufacturers continued to encourage consumers to try out different brands. Many manufacturers started to push their products at points of sale by offering promotional discounts and offers such as conditioners free with shampoos. Independent small grocers maintains its lead, whilst direct selling increases further

Independent small grocers continued to be the largest channel for sales of beauty and personal care products in 2012. Since the majority of consumers still reside in second- and third-tier cities, where neighborhood stores are dominant, independent small grocers continued to lead. Interestingly, the contribution of direct selling to overall value sales recorded a significant rise, as direct sellers including Avon continued to strengthen their roots in southern states, and also in second-tier cities such as Meerut and Kanpur. Beauty and personal care is expected to show consistent growth Beauty and personal care is expected to maintain consistent growth over the forecast period, as consumers will continue to spend more on personal grooming. In addition, manufacturers will continue to launch new products at different price points, which will help them to gain volume sales and also margins. The majority of growth, however, will come from new consumers, who will increasingly try out different products over the forecast period.

COMPANY PROFILE: ITC Limited is an Indian conglomerate founded on 24 August 1910. The company (formerly known as Imperial Tobacco Company of India Limited) is currently headed by Yogesh deveshwar. The company has its registered office in Kolkata. It employs over 20,000 people at more than 60 locations across India. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, AgriBusiness, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. It ranks third in pre-tax profit among India's private sector corporations. ITC is one of India's foremost private sector companies with a market capitalization of over US $ 22 billion and a turnover of US $ 6 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week.

COMPETITORS ANALYSIS SHAMPOO COMPETITOR SOAPS COMPETITOR SHAMPOOS SUNSILK HEAD & SHOULDERS PANTENE DOVE SHAMPOO AYUR SHAMPOO CLINIC PLUS CLINIC ALL CLEAR CHIK SHAMPOO VATIKA GARNIER 324 126 114 67 07 61 30 26 04 46 % 70 27 25 15 01 13 06 06 0.8 10 % LUX DOVE DETTOL PEARS LIRIL DYNA SOAP GODREJ NO 1 LIFEBOUY BREEZE SANTOOR MEDIMIX 340 101 96 69 06 35 38 67 26 02 02 74 30 21 15 01 07 08 14 05 0.4 0.4

PORTERS FIVE FORCE FMCG SECTOR OF ITC: BUYER POWER: Low switching cost. Buyers are numerous and fragmented. Considering buyer power retailers, they are able to negotiate the price with the company. Buyer power is very high and unfavorable. SUPPLIER POWER: Large no. of supplier in the country. Cost of switching of supplier is very low. Prices of substitutes are low. Supplier power is low and favorable THREATS OF SUBSTITUTE: Numerous substitutes are available.

Threat of substitutes is very high. Because large no. of substitute are in the market THREAT OF NEW ENTRANTS: To many small firms in market. No dominating firms. Little product differentiations. Customer switching costs are low.

Threat of new entrant is very high. RIVALRY AMONG THE FIRMS: Consumers in this category enjoys multitude choice It does not cost anything for a consumer to buy one brand of shampoo instead of another, making the industry quite competitive. Rivalry among the firm is very high which is not favorable for business.

PESTLE ANALYSIS: PESTEL ANALYSIS ON FMCG INDUSTRY:POLITICAL FACTORSPolitical stability : Political stability is one of the important most factor which influence the growth of business directly. If Political stability is higher, then it leads to perfection in business & on the other hand if there is unstability the business will have to suffer. Taxation policy : Tax policy of government will affect the price of inputs & it ultimately affect the prices of final products & it will directly affect the sale of product. Government intervenes : This indicates that at what level the government intervences in the economy. If the government intervence is more sometimes it helps the organization at large extent. Subsidies : The subsidies which are provided by government to different organisation at different level also help it to grow at faster rate & helps the organisation in reducing the finance which is to be funded from outside & it directly reduces interest amount paid in favour of fund raised from outside. Trading policies : This indicates the policies related to import & export of goods and services from different nations. If the policies are favourable more goods & services will be imported & exported, & on the other hand if policies are unfavourable it will restricts the import & export. Labour law : Labour law also affect the organisation, for example- child labour, a child below 14 year of age can not work In factory or any hazardious place. ECONOMIC FACTORS Interest rates : Interest rate directly affect the cost of capital, if the interest rate is higher the cost of capital will increase & if it is lower then cost of capital will be lower. This directly affect the profit of the organization & its growth. Tax charges : If the tax charged by the government is lower then it will reduce the product price & if it is higher then it will increase the prices of the products. Exchange rates : This shows that what is the exchange rate or foreign currency rate. If exchange rate is higher more amount is paid on import of goods & if it lowers less amount is to be paid & on the other hand if it is higher the amount received will be more & if it is lower the amount received will be low. National income : National income is important factor as if affect the growth of the organisation. If per capita income is more the amount spend will be more & if it will be lower the amount spent will be less. Economic growth : Economic growth is important factor in the development of the organization. If economy grows at a higher speed it will directly affect the growth of the organization. Inflation rate : Inflation means the rise in the value of all the product in the economy, if inflation rate is higher the cost of products will be higher & if inflation rate is lower the cost of product will be lower. This directly affect the growth of the organization.

SOCIO CULTURAL FACTORS Demographics : Demographics is the study of human population in the economy. It helps the organzation to divide the markets in different segments to target a large of customers. For Example- according to race, age, gender, family, religion, & sex. Distribution of income : This shows that how income is distributed in the ecconomy. It directly affect the purchasing power of the buyers. And ultimately leads to increase or decrease in the consumption level of the products. Changes in life style : Change in life style also leads to increase or decrease in the demand for different commodities. For example- presently LCD & LED TVs have replaced Digital displayed TV set, this shows that the changes in life style of consumers. Consumerism : This indicates that a large number of options are available while purchasing of goods to consumers, so the choice becomes easy & quality products can be choose by consumers. So while purchasing a consumer have different choices to select product according to his needs. Education levels : Education is one of the most important factor which influence the buying power of consumer, while selecting a particular good a consumer should know all its features so it can differentiate them with another products. Law affect social behaviour : Different laws are made by the government to safe guard the rights of consumers. For example- Consumer protection act, this law indicates that a consumer can file a case against a seller if he finds that he is cheated. TECHNOLOGICAL FACTORS Advancement in technology : New technology helps in economising the scale of production, this means that new technology helps in increasing the level of production, & reducing the costs of inputs, & maximising the level of profits. Discoveries & innovation : Advancement in technology will leads to discoveries & innovations & further improvements in technology so as to improve perfections in the production process. Competitive forces : Advancement in technology will also leads to competition in the markets, more quality products will be provided to consumers to cover a large number of market. Automation : Change in technology will leads to automation, this means that with new technology labour required is less as machines are automatic. All the works are done automatically by the machines as earlier it is labour oriented. Now all the work is machine oriented. Obselete rate : Day-by-day new inventions are made so the rate of obselete is higher, as in Computer LAPTOPS have replaced the PC. This shows that the technology becomes obselete very fast. Research & development : This department plays a vital role in the development of the organization. As this department always do research that what are the demand of the markets & how to make advancements so the organization can survive in the competitive world. ENVIRONMENTAL FACTORS Ecological : The ecological and environment aspects such as weather, climate, & climate changes, which may especially affect industry such as tourism, farming, & insurance. In FMCG Air conditioners demand increase in summer season.

Environmental issues : Global warming is one of the major issue now-a-days as external factor is becoming a significant issue for firms to consider. Many remedies have been taken to reduce Global warming. Environmental regulations : Various regulations have been declared by government to safe guard the environment. For example- no company should through its waste in rivers. LEGAL FACTORS Employment law : Employment law provides equal opportunities to every citizen to work & earn his livelihood. It provides equal opportunities to every citizen. Consumer protection : This law helps to protect the rights of consumers & he can file a case against seller if he fined that he is cheated. Industry-specific regulations : These laws are related to industry for example- no industry can establish in between cities i.e. it should be outside the cities.

MARKETING STRATEGY USED BY ITC ITC started an earnest exercise by creating a new brand image and corporate philosophy by investing in new business categories like personal care, premium apparel, rural business (e- Choupal) and foods. All along using its famed distribution strengths built through its successful past businesses like cigarettes, paperboards and packaging, hotels and agri business, to create synergies across its verticals and help prop up its new businesses, like personal care and foods. ITC has a well thought-out strategic approach. Rather than acquiring weaker brands to get into these new segments inorganically, it created a range of new personal care and branded apparel brands. The first step in this well-planned strategy was the launch of Wills Lifestyle, the premium branded apparel business in 2002. ITC then moved on to take the competition head on in the FMCG domain, through ITC Foods in August 2001, and personal care business, which is the focal point of this story, in 2005. It has created good impact with its well etched-out Personal Care Brands. Under this category, brands like Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the Superia were designed to take care of various sets of consumer segments. But behind this launch was five years of intensive on ground research of market conditions and consumer expectations. Over one lakh consumers were surveyed across the country to test various prototypes. Acceptance benchmark was kept as high as 90 percent for the final products. ITC called this exercise as '3E approach explore, establish and execute. As an adage goes 'if you have to win a race, you have to clearly target the No 1', ITC too aimed the No 1 which happened to be the formidable HUL (which still reigns over 50 percent of the FMCG market). And ITC's target was HUL and P&G only. ITC roped in its tobacco business veteran Sandeep Kaul to spearhead the personal care launch; it also sought help from product formulation and branding experts in Europe and America to formulate the fragrance, aesthetics and packaging. Many of the brands have also been developed at its R&D centre. The results are there for everyone to see. In less than four years, ITC has been able to create brand awareness and consumer acceptance for its five product lines Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the Superiaeach targeted at the needs, aspirations and usage behaviour of different consumer segments. Kaul informs that the strategy for designing personal care is that everyone is a potential consumer.

THE TARGET MARKET The target market for ITC products is active consumers between the ages of 25 and 45people who like to look beautiful fresh. These active consumers represent a demographic group of well-educated and successful individuals; they are single or married and raising families. Household incomes generally range between rupees 60.000 and 120,000 annually. Despite their comfortable incomes, these consumers are price conscious and consistently seek value in their purchases. Regardless of their age (whether they fall at the upper or lower end of the target range), they lead active lifestyles. They are somewhat status oriented but not overly so. They like to be associated with high-quality products but are not willing to pay a premium price for a certain brand. However, one future goal is to target consumers all over India. OBJECTIVES Marketing Objectives Reverse downward slope of Recital market share. A stretch goal will be to increase sales by 20%. Vivel body wash to become the worlds no.1 personal care product in coming 2 years. To increase market share by 10%. To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value 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.

THE MARKETING MIX The following discussion outlines some of the details of the proposed marketing mix for ITC products. PRODUCT STRATEGY. ITC currently offers a line of high-quality personal care products. Over the next five years, ITC plans to expand the product line to include some more personal care products. Customers may select a logo that represents their good brand image. The strategy of introducing new product will keep the concept fresh and prevent it from becoming diluted with too many variations. DISTRIBUTION STRATEGY The process of passing down each passing the product down the chain to the next organization through Chain of intermediaries, before it finally reaches the consumer or end-user is known as the 'distribution chain' or the 'channel.' A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers, Dealer Or wholesaler, who sells to end customers Advertisement typically used for consumption goods ITC follows:

CHANNEL WISE DISTRIBUTION Here the total product is divided into different channels like, Health care product, Personal care products, Home products & etc. BEAT WISE DISTRIBUTION Here total market is divided into different areas where the products are served to all the outlets exist in that area.

MARKETING MIX: Product: Mainly the new product of ITC is vivel body wash which will bw targeting both the genders of age between 25 years and it will be launched in the developing markets. Price: Price of the product will be somewhat between 120 to 155 rs for 100 ml bottle it will be not too costly and not too cheap it will be affordable to all Promotion: Company will use a pull marketing strategy directed at end users. It will market the benefits of the products to the target segments: new, younger clientele and present established client base. The target segment for ITC tagged lines will be male and females who are under 25. This is 40% of the population and they are the heaviest consumers for personal products. In this competitive market it is very difficult to persuade customers to switch brands, so company wants to ensure its future by targeting the young buyer to use the product. Advertising: Company will roll out a coordinated advertising campaign to emphasize the following points: 1. ITC is getting better, with a new and refurbished line of products from their bodywash "No longer should consumers question which Company to buy personal care products from, now they just have to decide which ITC product to purchase. 2. This product will focus on consumers over 25 years of age. Advertising will begin to refocus these products as being classy, upscale, and successful. 3. This product will focus on consumers' 25 years and under. Company will promote that these products are "new", hip, and fashionable. 4. Company will use their positioning statements as appropriate in all mediums. it will use print and broadcast ads in women and men-oriented mediums several weeks before the new introduction of products to inform people of how ITC is growing and changing to meet their needs. Billboards, television, radio, and display signs will be primary vehicles for this. About two weeks before introduction, ads will change from stressing the company image to stressing product line imaging. We will run specific ads for vivel body wash.

MARKETING MIX FOR VIVEL BODY WASH: Product - It is a tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cell phone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration. Every product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, product differentiation is required and is one of the strategies to differentiate a product from its competitors. Price The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product. Place Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

Promotion- Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations Any organization,

CUSTOMER ANALYSIS: As we know that the customer analysis is very important question like who are the consumers, what do they buy, how do they use , when do they buy, how do they choose, why they prefer the product? This types of questions must be answered otherwise launching a new product is of no use. Mainly the customers are both male as well as female between the age group of 25. They will buy vivel body wash. It will be available in the market and easy available to the consumers. This product is as per the need of the consumers and consumer will be satisfied after using the product. And definitely once they use the product they will again buy the same product.

SEGMENTATION: Segmentation will be done on the basis 1. Geographic Segmentation. 2. Demographic Segmentation. 3. Psychographie Segmentation. 4. Buyer Behavior Segmentation. 5. Volume Segmentation.

ITC designs strategy for men's grooming products Noticed the recent 'Fiama di Wills' campaigns focused at men? Recently, the brand also launched the 'Fiama di Wills' men's Web site. The new increased attention that ITC Ltd is lavishing on men is not surprising. The cigarettes to soaps conglomerate is keenly eyeing the market for men's grooming products - a category that, it says, has outpaced the broader personal care segment in India. "This (men's grooming) segment is an extremely exciting one and has suddenly evolved," said Mr Nilanjan Mukherjee, Head of Marketing, Personal Care Products Business, ITC. "We are keenly interested in participating in this growth and creating innovative solutions for the segment," which has grown at twice the rate of the personal care business.

DIFFRENTIATION: The diversified conglomerate is also confident margins from the personal care segment will grow through a strategy of 'innovation and differentiation.' New launches and a push into allied categories are likely to spur growth in its personal care business, said Mr SandeepKaul, Chief Executive, Personal Care Products Business, ITC. "If there is differentiation and innovation (in products), then consumers will understand the value," Mr Kaul told Business Line. "It will not be difficult for brands to maintain and sustain margins. Margins will automatically grow." ITC has positioned the 'Superia' in the mass market personal care segment, while it is 'Vivel' and 'Fiama di Wills' in the premium categories. In the super-premium space, it has the 'Essenza di Wills' range. And with it, its also launching it new product vivel body wash and it will adopt same strategy.

Key targeting strategies of ITC: ITC has different targeting strategies for each of its brands. They are as based on six mantras they are as follows: a) Segmentation: Creating brands from scratch with no history and lineage, ITC used clear segmentation across its five product lines and the target audience, each brand was meant for. b) Group synergy: Once the five products were created and communication strategies set, ITC leveraged its properties like hotels, foods and apparel store network to retail these brands c) Communication strategy: Like HUL, these brands sport Western names, and different communication. Essenza & Fiama, meant for the elite, have English communication, while Vivel & Superia use Hindi. d) Brand extensions: Selective extensions as it dont want to confuse consumers with too many irrelevant brand extension & subbrands. The Essenza range is the only exception. e) Brand ambassadors: ITC uses brand ambassadors strategically. While for the Fiama and Vivel ranges it has roped in brand ambassadors, for the Superia & Essenza ranges the key target group is the real king. f) Packing: Since packaging plays a key role in product differentiation, ITC uses it to the hilt. It has taken foreign experts help to make its products stand out from competition. For individual brand the key strategies of ITC are as follows:

a) Strategy for Essenza di Wills Segmentation: Essenza, as the Western name suggests, targets the luxury seeking elite Group synergy: Basically being distributed through ITC hotels and Wills Lifestyle stores Communication strategy: Genderneutral, mostly in English, and a bit of French the language of the super elite Brand extensions: Instead of brand extensions, it has subbrands like Inizio, Aqua and Mikkle Brand ambassadors: No brand ambassadors the target group do the role as they are very individualistic and are super achievers. Packing: Manufactured in France, the Essenza packaging has an international appeal

b) Strategy for Fiama di Wills Segmentation: It tends to target at the young, urban, aspirational women. Its core target group is the upper and midsegment urban consumers. Group synergy: Besides, being retailed at departmental stores, it is also present at Wills Lifestyle stores, & ITC hotels Communication strategy: Mostly in the language of the young urban woman professionalsEnglish. Its aspirational in nature Brand extensions: It has been cleverly leveraged in the shampoos, shower gels, soap and conditioner categories Brand ambassadors: Sophisticated, young, having arrived & beautiful Deepika Padukone is used to further the brand recall Packing: Premium packaging to compete with the likes of Dove. Designed with help from American packaging experts. c) Strategy for Vivel di Wills and Vivel Segmentation: Clever targeting: Vivel Di Wills for the upper middleclass and Vivel for the popular midsegment. Group synergy: Retailed at John Players stores, besides ITCs traditional distribution channels Communication strategy: Communication in Hindi & English to cater to both uppermiddle & popular middle class. Brand extensions: Vivel & Vivel Di Wills a clever way to target the Lux consumers of yore Brand ambassadors: Kareena Kapoor is the brand face thanks to her popular mass and class appeal Packing: Vivel Di Wills has a more premium packaging, but Vivel has a different packaging d) Key strategy for Superia Segmentation: Superia is the mass brand from the ITC stable, catering to lower income and rural segments like a Lifebuoy does Group synergy: Retailed through ITCs distribution channels across the hinterlands, especially the EChoupal for rural reach Communication strategy: Being a mass brand, it caters to segments where aspirations are low, and family is very closen it. The brand has a family oriented communication strategy too Brand extensions: Superia has four soap variants and three shampoo variants which take on the likes of Clinic All Clear, Lifebuoy, Breeze, Godrej No1 etc Brand ambassadors: No popular brand ambassador the focus is on the target audience, which is the low income families Packing: The only brand which is available in sachets, Superia has colourful packaging, which is common among mass.

Brand positioning: Positioning is the act of communicating companys offer so that it occupies a distinct and valued place in the customers mind so as to create an enduring competitive advantage. Vivel is positioned on the healthcare platform with a body wash. The customer always see the tangible attributes like performance level, price, packaging, product components before buying the product.. Vivel prices are less as compared to their other competitor. The brand's range was expanded, but was later withdrawn. Strategy to promote Vaseline body care The marketing strategy is intended to promote Vivels new line of highly therapeutic body wash, Vivel Intensive Rescue, which includes three variants: Intensive Rescue Repairing Moisture, Intensive Rescue Soothing Moisture and Intensive Rescue Clinical Therapy. With the ability to accelerate skins healing process by instantly tripling moisture reserves without feeling greasy or sticky, Vivel claims that its new body wash will deliver more moisture than the existing products in the market. The Vivel brand mission, as stated on its Facebook page is to provide the knowledge, advice and products that enable everyone to enjoy great, healthy looking skin every day! The repeated attempt to employ social media marketing comes after Vivel for men and women in Indias controversial Facebook campaign, which gave users the option of lightening their skin colour in their photos.

MARKETING STRATEGY OF ITC: ITC has worked closely with farmers in designing and managing the entire e-choupal initiative. The active participation of farmers in e-choupal has created a sense of ownership in the project among the entire farming community. Farmers view e-choupal as the new age cooperative. Encouraged by this enthusiastic response from farmers, ITC has planned to extend the e-choupal initiative to 11 other states across India over the next seven years. ITCs vision is to extend this interactive transaction and fulfillment channel to cover one-lakh villages, and reach out to 10 million farmers growing a range of agricultural products.

PRODUCT AND BRAND STRATEGY: Customer target: Vivels existing target audience included upper middle class, middle class house wives, high earning individuals and teenagers but keeping view the new segmentation strategies, new target group would concentrate on lower middle class, semi rural, individuals with an average monthly income of 1000-1500 GBP and females in their teenage and early twenties. Competitor targets: Mainly the competitors are also targeting towards the same set of customers hence there is a cut throat competition between the giant companies. Product service features: The Company's 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.

CORPORATE OBJECTIVE OF ITC: To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value 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 VALUE CHAIN: A conscious strategy to drive the competitiveness of value chains linked to its businesses enables ITC to make a more enduring contribution to national economic development. ITC's winning brands drive synergies to make these value chains sustainable and inclusive. At the same time, by nurturing and strengthening these value chains, ITC adds a unique source of competitive strength to its brands. A very successful example of value chain augmentation is the ITC e-Choupal initiative that empowers over 4 million farmers, while at the same time providing significant competitive advantage in procuring raw material for ITCs Foods business be it for Aashirvaad atta produced from handpicked whole wheat, quality-assured Aashirvaad spices or superior chipstock potatoes for Bingo! snack foods. ITCs Social and Farm Forestry initiative is another example of such sustainable val ue chains. Renewable plantations cultivated under this initiative enable ITC to offer the greenest paper and paperboards products manifest in stationery brands such as Classmate and Paperkraft. The bedrock of this initiative is the development and greening of more than 1,42,000 hectares including wastelands, which has also provided over 64 million person days of employment to poor tribal communities and marginal farmers. The linkage of ITC's Women Empowerment Programmes to ITC's Agarbattis Business with the brand Mangaldeep is yet another unique example of livelihood creation through competitive value chains. These programmes have also provided gainful employment to over 14,000 rural women. ITCs Livestock Development programme, a CSR initiative to promote off-farm livelihood options for farmers, has been scaled up to provide animal husbandry services to more than 8,00,000 milch animals. In the future, the increasing milk yields will not only provide significant livelihood opportunities but also support a competitive and sustainable dairy value chain.

As we can see here that the Agri business, hotels, paperboards and packaging are in star and they are performing very well And the FMCG and cigrattes are in cash cow it means it has less market growth so they should launch some more products here to increase it. The FMCG food sector is in question mark position and ITC Infotech is in dog position so appropriate strategy should be followed to convert the dog in stars and cash cow.

SWOT ANALYSIS OF ITC:

Strengths ITC leveraged it traditional businesses to develop new brands for new segments. ITC is a diversified company trading in a number of business sectors including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery. Weaknesses To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being subsidised by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone holds 70% of the tobacco market. Unrelated diversification is also a major weakness of ITC. Opportunities Core brands such as Aashirwad, Mint-o, Bingo! And Sun Feast (and others) can be developed using strategies of market development, product development and marketing penetration.ITC is moving into new and emerging sectors including Information Technology, supporting business solutions. e-Choupal is a well thought of initiative that could be used in other sectors in many other parts of the world. It is also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages Per capita consumption of personal care products in India is the lowest in the world offering an opportunity for ITC's soaps, shampoos and fragrances under their Wills brand. Threats The obvious threat is from competition, both domestic and international. ITC's opportunities are likely to be opportunities for other companies as well. Therefore the dynamic of competition will alter in the medium-term. Then ITC will need to decide whether being a diversified conglomerate is the most competitive strategic formation for a secure future.

PORTERS 5 FORCES MODEL FOR INDUSTRY:

ANALYSIS: As we can see that the threat of new entrants is moderate due to low barriers. And the threat of new substitute is high due to multiple brand position with narrow differentiation and companies entering in to different category. Bargaining power is low because of some loyal customers but there is low switching cost and aggressive marketing strategy. Bargaining power of supplier is moderate due to long term relationship between the companies and the suppliers. Rivalries among the different firms are very high because many of the big players are entering in to the market.

SWOT ANALYSIS OF THE INDUSTRY: STRENGTHS: Moderate operating cost. Presence of established distribution network Presence of well known brands Favorable government policies.

WEAKNESS: Low exports level Counterfeit products Lower scope of investing in technology and achieving economies of scale.

OPPORTUNITIES: Untapped rural market. Rising income level Large domestic market Export potential. High consumer good spendings.

THREATS: Slowdown in rural demand. Tax and regulatory structure. Removal of import restriction resulting in replacement of domestic brand.

FINANCIAL STATEMENTS: ITC Raw Materials Product Name Others Tobacco Unmanufactured Wheat Waste Paper & Wood Pulp Lamination Films Chemicals Bamboo & Wood Coffee Edible Oil Filter Rods Sugar Wheat Flour Total ------------------- in Rs. Cr. ------------------Unit Quantity Not Reported NA Not Reported NA Not Reported NA Not Reported NA Not Reported NA Not Reported NA Not Reported NA Not Reported NA Not Reported NA Not Reported NA Not Reported NA Not Reported NA Mar 2013 Value 2,358.26 1,734.32 968.38 650.41 516.81 516.21 470.55 439.73 346.08 326.94 306.47 302.05 8936.21