CHANNEL ENVIRONMENT OF

THE ITC LTD.

Presented By:
GROUP -6
Malka Nasim
Priya Bhattacharya
Shivam Mishra
Shrutika
Shashank Kamle
 ECONOMIC ENVIRONMENT

INTERNAL FACTORS: EXTERNAL FACTORS:

Recession: ITC expects its stationery business Inflation: When school sessions
to get back to double digit growth from starts, students buy in bulks but ITC is
December after dropping to single digit in the facing postponement in such
last six months. purchases due to economic Slowdown
Innovations: ITC is also focusing on product Floods: Due to floods in many parts
innovations to drive the growth. It had of the country, which had forced
launched its Classmate Pulse 3D Notebook, closure of schools, sales were
which provides "an immersive experience" impacted as well.
through a 3-dimensional cover
Policies: Multiple process controls such as
third party certifications, inline and final
quality checks are deployed across the
manufacturing process. Pencils and art
stationery items are in compliance with the
European Standard EN 71
 SOCIAL ENVIRONMENT
• Globalization: Around 6,91,000 Children covered under education programme
and around 67,500 youth skilled and trained. Classmate.com covered over 50
million registered users
• Social Networking: Engaging with Students through the ‘MyClassmate App’ and
‘Be Better Than Yourself’ campaign.
• Consumer Mobility & Connectedness: Aimed at driving tangible changes in society
by encouraging children to realise their full potential by pursuing their personal goals
and ambitions rather than comparing them with peers in terms of their achievements.
• Green Movement: ITC’s stationery brand, Classmate, is yet another unique example
of leveraging synergies between the Company’s businesses. ITC’s large-scale
Afforestation Programme which provides marginal and tribal households with a
commercially viable land
• Low productivity lands by assisting them to convert these into pulpwood plantations
has enabled the Company to offer the greenest paper and paperboard products, as seen
in ITC’s stationery brands such as Classmate and Paperkraft
 The Competitive Environment
 Competition is always a critical factor to consider for all
members of the marketing channel. As in recent years
competition has become global in scope.
 Types of competition in ITC Ltd:- Horizontal competition.
• The same type of firms at the same channel level compete with
each other.
 Competitor:- Navneet.

M M

M= Manufacture
W W
W= Wholesaler
R= Retailer
R R
 Competitive Structure and Channel Management.
• From the producer’s or manufacturer’s standpoint, an
understanding of competitive structure and the changes taking
place in that structure are crucial for successful channel design
and management.
• In the changing competitive environment producer and
manufacturer attempting to manage marketing channel now
face a more complex management task because they are
dealing with more different type of channel member.
 Technological Environment
• The electronic data interchange (EDI) used in
ITC Ltd. is SIFY
• SIFY stands for Satyam Infoway.
• It is an Indian information and communications
technology company providing end to end ICT
solutions including telecom services, data
center services, cloud & managed services,
transformation integration services and
application integration services.
 Role of SIFY in ITC Ltd.
• The inventory management of ITC is
connected with SIFY.
• Which is being monitored by the distributor.
• When the distributors inventory level of that
suppliers product reaches minimum point.
• It reorders the product without any human
intervention.
LEGAL ISSUES IN ITC LTD.

• EXCLUSIVE DEALING: ITC makes sure that its products are sold solely by a distributor in
the market. The distributors sell ITC stationery products and does not keep any other
competing brand products. However this does not apply to the retailers.

• FULL LINE COVERING: the distributors cover all the products under education and
stationery of ITC like Classmate OCTANE pens, classmate notebooks, saathi notebook,
etc. but there is no restriction on the retailer to keep all these products exclusively in its
retail outlet.