A PROJECT 0N MARKETING STRETEGTY OF ITC

Introduction:ITC Limited (BSE: 500875) public conglomerate company. started off as the Imperial Tobacco Company, and shares ancestry with Imperial Tobacco of the United Kingdom, but it is now fully independent, and was rechristened to Indian Tobacco Company in 1970 and then to I.T.C. Limited in 1974. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. It market capitalization of nearly US $ 15 billion and a turnover of over US $ 4.75 billion.

Marketing Strategy of ITC:Marketers need to understand the psyche of the rural consumers and then act accordingly. Rural marketing involves more intensive personal selling efforts compared to urban marketing. Firms should refrain from designing goods for the urban markets and subsequently pushing them in the rural areas. To effectively tap the rural market, a brand must associate it with the same things the rural folks do. This can be done by utilizing the various rural folk media to reach them in their own language and in large numbers so that the brand can be associated with the myriad rituals, celebrations, festivals, "melas", and other activities where they assemble.

ITC Pricing Strategy:The pricing of the ITC food division depends upon the Customers demand schedule, the cost function and the competitors price. The pricing of the company is such that it caters to the need of all income groups of people but special provision has been kept for Low and middle income group, and their pricing are competitive with respect to other players like Britannia, Parle and Briskfarm. The company follows the Going rate pricing that is the price of the product depends upon the competitors price. The firm chooses pricing more or less the same as Market leader.

A PROJECT 0N MARKETING STRETEGTY OF ITC

ITC Packaging Strategy:ITC's Packaging & Printing Business is the country's largest convertor of paperboard into packaging. It converts over 50,000 tonnes of paper and paperboard per annum into a variety of value-added packaging solutions for the food & beverage, personal products, cigarette, liquor, cellular phone and IT packaging industries. It has also entered the Flexibles and Corrugated Cartons business. 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.

ITC Promotional Strategy:A particular budget is allocated for the promotion of the products, the local promotion scheme is decided by the Area Sales Manages, it give its suggestion to the District office and that is forwarded to the Head Quarter in Kolkata. In another promotional scheme for Biscuits a particular number of cases is given freely to the distributors according to the amount of sale they make, this was adrop down promotion i.e. of the number of free cases that a particular distributors gets, off them a certain part is reserved for the retailers and customer if they buy a certain level of biscuit quantity.

ITC Distribution Strategy:One of the ways could be using company delivery van which can serve two purposes - it can take the products to the customers in every nook and corner of the market, and it also enables the firm to establish direct contact with them, and thereby facilitate sales promotion. Buoyed by a strong distribution network ITC is likely to retain its market share in the cigarettes business; the ban on advertisements is likely to work in favour of ITC thanks to the recall factor. The company's reliable distribution network also ensures superior inventory turnover than its peers.

A PROJECT 0N MARKETING STRETEGTY OF ITC

ITC Targeting Strategy :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.

A PROJECT 0N MARKETING STRETEGTY OF ITC

ITC Vision, Mission, Core Values, Government Policies, Strength, Weakness, Opportunity and Threat :ITC have identified their Vision, Mission, Core Values, Government Policies, Strength, Weakness, Opportunity and Threat to success in their marketing strategy which they have planned or anticipated to reach or fulfill their goals. 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 Company's stakeholders. Mission:To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value. Core-Values:ITC's Core Values are aimed at developing a customer-focused, high-performance organization which creates values for all its stakeholders. Government-Policies:As professional managers, we are conscious that ITC has been given to us in 'trust' by all our stakeholders. We will actualize stakeholder value... Strength:-

ITC leveraged it traditional business to develop new brands for new segments. For example, ITC used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business. ITC is a diversified company trading in a number of business sectors including cigarette, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information Technology, safety matches, incense, sticks and stationery.

A PROJECT 0N MARKETING STRETEGTY OF ITC

Weakness:The companys original business was traded in tobacco. ITC stands for Imperial Tobacco Company of India Limited. It is interesting that a business that is now so involved in branding continues to use its original name, despite the negative connection of tobacco with poor health and premature death. Opportunities:Core brands such as Aashirbad, 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 IT, supporting business solutions. Threats:The obvious threat is from competition, both domestic and international. The laws of economics dictate that if competitors see that there is a solid profit to be made in an emerging consumer society that ultimately new products and services will be made available. Western companies will see India as exciting opportunity for themselves to find new market segments for their own offerings.