How ITC influenced the

behavior of Indian Consumers.

Presented to : Presented by:

Arvind Arora Sandeep
 INTRODUCTION
• ITC Limited which previously stood for ‘Imperial Tobacco Company
one of India's foremost private sector companies.
• Transform itself from a leading Cigarette manufacturer to an umbrella
group which offers diversified products.
• Forayed into field of FMCG, IT, Agri- business to obtain different
revenue stream.
• Successful in Hotel Business(ITC welcome group) and collaborated
with Sheraton Corporation.
• ITC's wholly owned Information Technology subsidiary, ITC InfoTech
India Limited, is pursuing emerging opportunities in providing end-to-
end IT solutions, including e-enabled services and business process
outsourcing.
• ITC's Agri-Business is one of India's largest exporters of agricultural
products.
 VISION & MISSION
 
• 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 globalizing environment, delivering superior and
sustainable stakeholder value.
 NEED FOR DIVERVICATION
• Core business of ITC is in the manufacture of cigarettes and
tobacco.
• On domestic front, it realized that there was huge revenue
potential for a launch of wider product range to the Indian
consumer base.
• ITC’s FMCG business has one of largest retail networks in the
country(2 million retailers)
• Government ban on advertisements of cigarettes, high tax
rates, decline for the demand of cigarettes.
• The company felt the to diversify from the early 1970 and
started entering those business that provides good ROI and a
potential for future expansion.
• Leads to concentrate to the other business opportunities.
 DIVERSIFICATION OF ITC

Hotel
Branded Apparel
Cigaretes

Stationery

Incense Sticks

Packaged Foods

Personal Care

Paper boards

Safety Matches
Information
Technology Agricultu-ral
Industry
 Diversification Strategy

Cigarettes :
• Focus to deliver highest product quality and value to consumers helps
them to lead in cigarettes industry.
• To boost sales growth introduce festivals packs of brands like: flake
filter, bristol filter, berkeley filter and Scissor filter.
Branded food business(2001):
• Launch kitchen of India(Canned foods from ITC Bukhara
restaurants).
• Brand offers ready to serve products.
• Introduced Aashirwad brand of wheat(atta) in 2002.
• Entered into biscuit market by launching Sunfeast brand in 2003.
Stationery products:
• Launch greeting cards under the brand name Expressions.
• Gain popularity due to introduction of cards in different
languages.

Safety matches
• Increase market share and its sales by offering unique designs
and value added features such as AIM.

Hotels(1975)
• Four brands- ITC Welcome group, Welcome hotels,
Fortune hotels, Welcome heritage
 SWOT Analysis
Strength Weakness

•Cigarette market is 22,000 cr and ITC has •Dependence on tobacco revenues

lion’s share in it • Negative Connection of Tobacco
•Strong brand recognition and product portfolio
•Distribution network
•Management
Opportunity Threat
•Low per capita consumption •Competition both Domestic & International
Of personal care products
•Increasing Tax on cigarettes
•Rural Market
•Regulatory restrictions on cigarettes
•E-Choupal
•Ban on smoking

• Terror attacks
In case of tobacco industry

Low bargaining
power of
Low substitutes customer
due to strict
laws

High bargainng
power of
supplier
Porters 5 forces
High rivalry

High threats of
new entrants
 Market share of ITC Ltd.

Outstanding market leader

• Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports.

Gaining market share

• Nascent businesses of Packaged Foods & Confectionery, Branded

Apparel and Greeting Cards.
 Corporate Social Responsibility

• ITC's businesses generate livelihoods for over 5 million people.

 
• ITC's globally recognised e-Choupal initiative is  the world's largest rural
digital infrastructure benefiting over 4 million farming families.
 
• ITC's Social and Farm Forestry initiative has greened over 80,000 hectares
creating an estimated 35 million person days of employment among the
disadvantaged.
 
• ITC's Watershed Development  Initiative brings precious water to nearly
35,000 hectares of dry lands and moisture-stressed areas.
 
• ITC's Sustainable Community Development initiatives include women
empowerment, primary education.
 Issues with ITC

• Advertisement ban 2003

• Decrease in sales of Cigarettes
• Luxury tax
• Regulatory laws
• Health awareness
 THANK YOU

ITC. Touching your life. Everyday