SUBJECT : MARKETING MANAGEMENT PROJECT TOPIC : PRODUCT LINE OF ITC CLASS : SYBMS DIV: A NAME : SUPRIYA ROLL NO.

: 14

INDEX NO. 1 2 3 4 5 6 7 8 9 10 11 TOPIC NAME

INTRODUCTION HISTORY OF ITC ABOUT ITC PRODUCT LINE OF ITC PRODUCTS: AASHIRVAAD ATTA BINGO CHIPS CANDYMAN SUPERIA SOAP NAVY CUT CIGARETTE GOLD FLAKE PREMIUM CIGARETTE BIBLIOGRAPHY

INTRODUCTION
ITC is one of India's foremost private sector companies with a market capitalisation 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.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. 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. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not onlydriving each of its businesses towards international competitivenessbut by also consciously contributing to enhancing thecompetitiveness of the larger value chain of which it is a part."ITC's diversified status originates from its corporate strategy aimed atcreating multiple drivers of growth anchored on its time-tested corecompetencies: unmatched distribution reach, superior brand-buildingcapabilities, effective supply chain management and acknowledgedservice skills in hotel iering.Over time, the strategic forays into new businesses are expected togarner a significant share of these emerging high-growth markets inIndia.ITC's AgriBusiness is one of India's largest exporters of agriculturalproducts. ITC is one

of the country's biggest foreign exchangeearners (US $ 3.2 billion in the last decade).The Company's 'e-Choupal' initiative is enabling Indian agriculturesignificantly enhance its competitiveness by empowering Indianfarmers through the power of the Internet.This transformational strategy, which has already become the subjectmatter of a case study at Harvard Business School, is expected toprogressively create for ITC a huge rural distribution infrastructure,significantly enhancing the Company's marketing reach.ITC's wholly owned Information Technology subsidiary, ITC InfotechIndia Ltd, provides IT services and solutions to leading globalcustomers. ITC Infotech has carved a niche for itself by addressingcustomer challenges through innovative IT solutions.ITC's production facilities and hotels have won numerous nationaland international awards for quality, productivity, safety andenvironment management systems. ITC was the first company inIndia to voluntarily seek a corporate governance rating.ITC employs over 26,000 people at more than 60 locations acrossIndia. The Company continuously endeavors to enhance its wealthgenerating capabilities in a globalising environment to consistently reward more than 3,53,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation.For the Shareholder.

HISTORY OF ITC

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974.In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education &Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001.The Company now stands rechristened 'ITC Limited'. BACKGROUND-The Company beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. Though the first six decades of the Company's existence wereprimarily devoted to the growth and consolidation of the Cigarettesand Leaf Tobacco businesses, the Seventies witnessed thebeginnings of a corporate transformation that would usher inmomentous changes in the life of the Company.ITC's Packaging & Printing Business was set up in 1925 as a strategicbackward integration for ITC's Cigarettes business. It is today India'smost sophisticated packaging house.In 1975 the Company launched its Hotels business with theacquisition o f a hotel in Chennai which was rechristened 'ITC-Welcome group Hotel Chola'. The objective of ITC's entry into the hotelsbusiness was rooted in the concept of creating value for the nation.ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate largescale direct and indirect employment. Since then ITC's Hotelsbusiness has grown to occupy a position of leadership, with over 100

owned and managed properties spread across India.In 1979, ITC entered the Paperboards business by promoting ITCBhadr achalam Paperboards Limited, which today has become themarket leader in India. Bhadrachalam Paperboards amalgamated withthe Company effective March 13, 2002 and became a Division of theCompany, Bhadrachalam Paperboards Division.In November 2002, this division merged with the Company's TribeniTissues Division to form the Paperboards & Specialty PapersDivision. ITC's paperboards' technology, productivity, quality andmanufacturing processes are comparable to the best in the world.It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of AndhraPradesh. It is directly involved in education, environmental protectionand community development. In 2004, ITC acquired the paperboardmanufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO),near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improvecustomer service with reduced lead time and a wider product range. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (SuryaNepal).In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD).To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards &Specialty Papers Division in November 2002.Also in 1990, leveraging its agri-sourcing competency, ITC set upthe Agri Business Division for export of agri-commodities. TheDivision is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'ChoupalSaagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'ChoupalSaagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand Paperkraft was launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under brand Classmatein 2003.

Classmate over the years has grown to become India largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the Classmate brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environmentfriendly premium business paper under the Paperkraft Brand. Paperkraft offers a diverse portfolio in the premium executivestationery and office consumables segment. Paperkraft entered new categories in the office consumable segmentwith the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009.ITC also entered the Lifestyle Retailing business with the WillsSport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expandedits range to include Wills Classic formal wear (2002) and Wills Club life evening wear (2003).ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became titlepartner of the country's most premier fashion event - Wills LifestyleIndia Fashion Week - that has gained recognition from buyers andretailers as the single largest B-2-B platform for the Fashion Designindustry.To mark the occasion, ITC launched a special 'Celebration Series',taking the event forward to consumers.In 2000, ITC spun off its information technology business into awholly owned subsidiary,ITC Infotech India Limited, to moreaggressively pursue emerging opportunities in this area.Today ITC Infotech is one of India fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions andservices to leading global customers across key focus verticals . Manufacturing, BFSI (Banking, Financial Services & Insurance),CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with thelaunch of the brands mintoand Candyman confectioneryand Aashirvaad atta (wheat flour). 2003 witnes sed the introductionofSunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007.

In eight years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing. In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro. ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brandsinclude Spriha and Mangaldeep across a range of fragrances likeRose, Jasmine, Bouquet, Sandalwood, Madhur, SambraniandNagchampa.ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July2005. Inizio, the signature range under Essenza Di Wills provides acompr ehensive grooming regimen with distinct lines for men (InizioHomme) and women (Inizio Femme).

ABOUT ITC
ITC is one of India's foremost private sectors companies with a market capitalization of nearly US $ 15 billion and a turnover of over US $ 4.75 billion. ITC is rated among theW o r l d ' s B e s t B i g C o m p a n i e s , A s i a ' s ' F a b 5 0 ' and the World'sM o s t R e p u t a b l e C o m p a n i e s b y F orbes magazine, among India'sM o s t R e s p e c t e d C o m p a n i e s b y Business World and among India'sM o s t V a l u a b l e C o m p a n i e s b y Business To day. ITC also ranksa m o n g I n d i a ' s t o p 1 0 ` M o s t Valuable (Company) Brands', in astudy conducted by Brand Financea n d p u b l i s h e d b y t h e E c o n o m i c Times.ITC has a diversified presence in Cigarettes, Hotels, Paperboards &Specialty Papers, Packaging, AgriB u s i n e s s , P a c k a g e d F o o d s & Confectionery, Inf ormation Technology, Branded Apparel, Greeting Car ds, SafetyMatches and other FMCG products. While ITC is an outstanding market leader in itstraditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, itis rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.As one of India's most valuable and respected corporations, ITC is widely perceived to bededicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "

Acommitment beyond the market ". In his own words: " ITC believes that its aspiration tocreate enduring value for the nation provides the motive force to sustain growing shareholder value. ITC p ractices this philosophy by not o nly driving each of itsbusinesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part ."ITC's diversified status originates from its corporate strategy aimed at creating multipledrivers of growth anchored on its time-tested core competencies: unmatched distributionreach, superior brandbuilding capabilities, effective supply chain manage ment andacknowledged service skills in hotelier. Ove r time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growthmarkets in India.ITC's AgriBusiness is one of India's largest exporters of agricultural products. ITC is oneof the country's biggest foreign exchange earners (US $ 2.8 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhanceits competitiveness by empowering Indian farmers through the power of the Internet. Thistransformational strategy, which has already become the subject matter of a case

study atHarvard Business School, is expected to progressive ly create for ITC a huge ruraldistribution infrastructu re, significantly enhancing the Company's marketing reach.ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, isaggressively pursuing emerging opportunities in providing end-toend IT solutions,i n c l u d i n g e enabled services and business pro c e s s o u t s o u r c i n g . ITC's production facilities and hotels have won numerous national and internationalawards for quality, productivity, safety and environment management systems. ITC wasthe first company in India to voluntarily seek a corporate governance rating.ITC employs over 21,000 people at more than 60 locations across India. The Companycontinuously endeavors to enhance its wealth generating capabilities in a globalizinge n v i r o n m e n t t o c o n s i s t e n t l y r e w a r d m o r e t h a n 3 , 9 5 , 0 0 0 s h a r e h o l d e r s , f u l f i l l t h e aspirations of its stakeholders and meet societal expectations. This overarching vision of the company is expressively captured in its corporate positioning statement:

PRODUCT LINE OF ITC

In FMCG, ITC has a strong presence in : A) Cigarettes: W.D. & H. O. Wills, Gold Flake Kings, Gold Flake Premium, Navy Cut, Insignia, India Kings, Classic Verve, Menthol, Menthol Rush, Regular, Citric twist, Mild & Ultra Mild, 555, Benson & Hedges, Silk Cut, Scissors, Capstan,

Berkeley, Bristol, Lucky Strike, Players and Flake. B) Foods : Kitchens of India, Aashirvaad, Minto, Sunfeast, Candyman, Bingo, Yippee, Sunfeast Pasta brands in ready to eat, Staples, Biscuits, Confectionary, Noodles and Snack Foods;

C) Apparel: Wills Lifestyle and John Players D) Personal Care : Fiama di Wills, Vivel, Essenza di Wills, Superia, Vivel di Wills brands of products in perfumes, haircare and skin care E) Stationary : Classmate and Paperkraft brands

F) Safety Matches and Agarbattis : Ship (through ownership of WIMCO), ikno, Mangaldeep, Aimed brand

AASHIRVAAD ATTA
MARKETING MIX: Product:
ITC had launched nearly all the products range off Non tobacco Products; they are very aggressive in their distribution of such products. Among them the Ashirvaad is the market leader in the branded atta category and at the second rung after Britannia. The existingnetwork of ITCs Cigarettes distribution is being used extensively for the sales all products of ITC Food division. They are trying to capitalized the market by associating the products with the ITC brand.

Price:
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 Brisk farm. 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.

Place:
Distribution channel is one of the fortes of the ITC food division, where the infrastructure and distribution channel of Cigarettes is used. The forty strong

salesman team for ITC food division is the backbone of the distribution channel. The distributors can contact the Branch Manager and the Area Executive for any suggestion or complain they act as interface between the company and the distributors.

Promotion:
In past the company has done its promotional activity mainly through the local mode of transport like Auto and rickshaw and giving ads in local newspaper. No specific ads have been made . Free Packets of Biscuit and Aashirvaadatta sample were distributed freely to the people. At present there is no promotional scheme in Aashirvaadatta category but in case of sunfeast biscuit, a promotional scheme to attract the children the company is giving free things that are used by children like Ruler, Eraser, and Sharpener etc. inside the Biscuit packets.

ADVERTISEMENT:
An effective advertisement will attract more and more customer to buy, helps in the brand and image formation, and informative in telling the USP of the product. In survey only 16 or 23% of the sample agrees that the advertisement of Aashirvaadatta is effective enough to make them buy, and 41% feels that the advertisement was good enough to make them aware of the product but not capable enough to make them buy and 36% of the consumer surveyed found the advertisement of the Aashirvaadatta to be not effective at all. And None of the consumer in the surveyed found that advertisement for Aashirvaad are Highly Effective.

CUSTOMER SATISFACTION:
The higher the satisfactionlevel higher will be the chances that the customer will buy the same brand again andagain that leads to the building of the Brand loyalty.

Also it also determines whethersome attribution change or any other modification is required in promoting the brand.71% of the people surveyed were satisfied with the product and 23.5% were extremelysatisfied with the product and will buy the product again and again and 6% of thepeople surveyed where not satisfied with the product.

BRAND POSITIONING:
Ashirvaad though being a clear market leader does notlead in the brand recall. It is its closest competitor Annapurna that leads in the brand recall.This shows that Ashirvaad has not been able to connect with the consumers. It needs to investin aggressive marketing and advertising to connect with the emotions of the consumer to havea sustainable market share and growth.

BINGO CHIPS
MARKETING MIX: Product:
Bing o is cu rrently av ailable in eigh t v arian ts, in add ition to th e rice -meal snack s. B a s e d o n t h e m a r k e t r e s e a r c h , t h e c o m p a n y c a n i n c o r p o r a t e t h e f o l l o w i n g improvements in its product portfolio.

Price:
Bingo currently is among the lowest priced packaged snacks brands having a national presence. Bingo was the first brand to introduce, its snacks in Rs 5, Rs 10 and Rs 20 packets. Right now Bingo and its prime competitors, Frito-Lay, Kurkure and Cheetosare currently priced at the same levels.

Place:
Both the consumer and the retail surveys have affirmed that Bingos greatest strengthlies in its strong distribution network. The brand, through its appeal to the youth withthe help of its snazzy advertisements, has been able to secure a strong youthcustomer base in the cities. High visibility and availability with t he help of ITCs strongdistribution n etwo rk h as help ed it p en etrate into th e smaller to wn s. Th e co mp any must continue to leverage its distribution network. Bingo must go local, within Indiaa n d d e v i s e v a r i a n t s ( f l a v o u r s ) s p e c i f i c t o e a c h r e gion.

Promotion:

With the growing awareness about healthc o n s c i o u s p r o d u c t s a n d F r i t o - L a y s launching of Aliva and Kurkure (cornmeal and rice snacks, perceived to be healthier than potato chips), Bingo needs to get into these segments. It needs to promote theMad Angles sub-brand as a healthsensitive product.While the whacky advertisements of the company still find a lot of takers, there is noneed to follow Frito-Lays footsteps and acquire celebrity endorsements as consumer surveys reveal their relative insignificance.

TARGET MARKET:
Bingos current focus would be on increasing its penetration in the metros and cities,its strongholds. The brand should bank on its strong distribution network to ensurethat it has high visibility in the smaller towns. Taking heed from its advertisementsduring the launch face that focused on the cultural diversity in the country Bingoshould look to target each of the geographical regions separately. The companyshould continue with its current focus on <35 year olds segment of the middle-incomegroup.

MARKET SEGMENT:
Potato chips generate 9.3% of revenues in the Indian savoury snacks market. Nuts and seedsaccount for a further 3.3%, processed foods 0.80% and pop corn 0.60%, of the market valueand the rest 85.90% is accounted for by the other savoury snacks

category. Japan dominatesthe Asia-Pacific snack market, holding a 59.5% share overall while India controls over 12.40% of the total Asia Pacific snack market share.

POSITIONING:
Bingo should not dilute its current market image of youthful trendy brand and shouldlook to increase penetration in the metros and cities, through its advertisements.The trickledown effect, high visibility and availability could also see its market sharein the smaller towns rise. Meanwhile, Bingo should also introduce different variantsthat suit the local tastes to target the regional markets.

CANDYMAN
FINDINGS: Retailer Research:
Retailer research deals with retailer and their problems and solution to the problems. In this I came to know about the retailersneed and expectation levels regarding products and ascertainable levels of satisfaction.

Product Research:
Under product research I came to know about themodification which retailers wants as to the qualit y, packing, shape, color, andquantity etc of their favorite candy.

Pricing Research:
This includes ability to consume, to pay for the product,how much a person can spend on his/her favorite candy. In this I have tried to find outretailers price expectations and reactions.

Advertising Research:
Under this I have concluded that whether theadvertisement appeals the retailers or not.This also

includes evaluating andselecting the proper media-mix and measuring advertising effectiveness.

SUPERIA SOAP
ADVERTISING:
a) Selection of Media There are number of Sources available for passing the product message. These are asfollows;TelevisionOutdoor (Billboards)MagazinesNewspapersBrochures. b)Electronic Media As we know Superia soap is targeted towards lower middle class and middle class consumers. So thisinfluence is clearly depicting on their TV commercial. The first advertisement named Yeh to meraHai is directed by RensilDsilva who is also the director of the movie Kurban portrays that incrowded vegetable market a clash occurred between a girl carrying a bag and a young boy driving abike due to which the girl bag fell in the ground the boy come helps the girl in picking up the goodswhich were fallen then they saw that Superia soap was also there after that they both startedclaiming for the soap this is mine there were lot of crowd seeing this incident all stared claimingthe soap is mine , the member who were there in the crowd were from different religion one wasPunjabi, one was Marathi another was Bengali and all of them was claiming on their own languageaccent. So this TV commercial shows it is catering to mass market and the actors used in thiscommercials was trying portray a middle class image for instance boy using a bike, the girl wearing asalwarkameez and carrying a vegetable bag. All the

brand imagery carried in this commercialportrayed the affection with the brand and catering mass market. After that what so evercommercial came for Superia all were carrying the same brand imagery. b)Regional Influence What so ever commercial of Superia came all were more telecasted on regional television channel,this was because as this soap was targeting lower middle class and middle class and these viewerwatch more regional television channel.

d)Print Media
Again on print media advertisement regional influence can be visible. Most of the superia ads arepublished regional language newspaper, through this influence they are trying to create a personaltouch with the target customer. Another important fact which is taken care is the local newspaperreadership ratings.

e)No BrandAmbassador
As this brand is carrying a image of common people soap so their is no brand ambassador for thebrand. There is no celebrity association in the TV commercial and newspaper ads as well.

SALES PROMOTION:
Sales promotion, a key ingredient in marketing campaigns, consists of a collection of incentivetools, mostly short term, designed to stimulate quicker or greater purchase of particularproducts or services by consumers or the trade. Whereas advertising offers a reason to buy,sales promotion offers an incentive to buy.

a)Consumers
Various sales promotion schemes for consumer are as follows 1)3+1 Superia soaps are being available in a combo pack in which of 3 soaps in which 1soap is free 2)Offer packs- Superia soaps are available in a pack of 3 who s MRP 30 but in offer pricethe consumers are getting RS 24. 3)Consumers are also getting Superia shampoo sachet free with Superia soap. 4)Consumers are getting 10% extra in weight in combo pack of 3. 5)Consumers can get the chance of winning silver coin inside the soap.

CIGARETTES: NAVY CUT

TARGET SEGMENTS:
The target consumers for Flake excel and NCRsft is the people lying in the lowerincome group roughly around 1 to 3 lc per annum. Saharanpur city has got a goodnumber of smokers and majority of population comes under lower income level. 1.The city is surrounded by a large number of villages and rural areas. 2. There is an ample number of workers engaged in the small scale business. 3. The city enjoys a large crowd coming from villages( be it, for shopping for theirsmall business at their homes or be it selling their crops) and getting back by night. 4.Even the small shopkeepers and businessmen likes to stick to the price range of 1-3 Rs. Per stick. 5. Majority of students in degree colleges are from the rural areas in and around thecity. They prefer to stick to the low cost cigarette segment. 6.People are less heath conscious and hence dont prefer the cigarettes having largefilters and more refined tobacco cigarettes i.e. cigarettes from KSFT segment.

TARGET CUSTOMERS:
1)Adultsmokers 2)The youth smokers. 3)It extended beyond the SEC A category to the SEC B as well.

POSITIONING:
1) Combines smooth flavor with cool. 2) Unique packaging. 3) Affordable price in todays life.

Promotional Pricing:
Promotional Pricing Promotional pricing are divided in the following major type: Loss leader pricing : Under this category the company reduced the price of the maximum selling product. Special event pricing: Under this category the company reduced the price in special festivalas. Cash rebates: Under this category the company reduced the price in bundle of purchasing. Low interest financing: Under this category the company

sellthe product in instalments and not taking the interest on the due amount. Longer payment term: Under this category the company selling the product and taking the payment in very long term means more than two or three years. Warranties & service contracts : Under this category the company selling the product and giving more Warranties.

GOLD FLAKE PREMIUM

BRANDING:
1) Building the brand image: To create a brand image of Gold Flake the company started branding of the product since it was launched in 1970. In those days India was a country of the genteel rich. The product offered the user the sense of belonging to the upper class. For creating a brand image; the advertisements of Gold Flake launched by the company in the seventies was as per the consumers taste and preference. The first advertisement was the balcony ad For the Gracious people, A touch of Gold and A tribute to the gracious people. But after few years this advertisement became stale as average age of the consumer of Gold Flake had fallen and it also affected the sales of the companybecause the young smokers did not emphasis with the brand. The brand did not stand for success and respectability because the liberalization and globalization had changed the consumer needs and mindset. To overcome this problem the company followed a brand repositioning strateg y. The b rand was still position ed as a p remiu m cigarette but the targ et consumer had changed. Gold Flake then targeted adult as well as young smokers. Ite x t e n d e d b e y o n d S E C A a n d i n c l u d e d S E C B a s w e l l . T h e p r o d u c t s t i l l differentiated itself on purity and quality of its experience. The advertisement for the Gracious People was continued with another slogan added to it Celebrate the Feeling to encourage the young smokers. 2) Branding Strategies: Two brand strategies were applied by the company. The first brand strategy is more qualitative in nature and is concentrated on increasing market share and loyalty wh ile th e second strateg y

ref ers to th e mo re quantitative aspects of increasing bottom line profits. The brand extension strategy has also been mentioned. A)Honeydew smooth campaign At a time when sales were stagnating, the tangible and identifiable USP of b eing hon eyd ew smo o th was asso ciated with Gold Flak e b y revo lvin g all adcamp aign s around it. It was mean t to be un iqu e and du rable. It atte mp ted to reignite loyalty among its consumers. The honey drop icon in everything connected with the brand which signified the identifiable characteristic of the brand. Unlike the previous campaigns, the USP was not derivedit was a tangible offering to theconsu mer. Th e hon ey d rop icon was designed to b e reco gn izab le, si mp le an d powerful. With this, the campaigns also focused on sl o g a n T h e w o r l d o f Goldflake. Always mellow, Always smooth.With this, the brand was positioned as a premium cigarette targeting youngand adul t male s mo k ers fro m th e SEC A & B cat ego rie s in th e twen ties. Th econsumers were projected to be young, upwardly mobile and contemporary andhad achieved a smooth balance between the various facets of their lives. The results were visible within a single quarter. Sales had increased. The Indianmale identified with the brand and Gold Flake was on the path to success. In 2002,the No. 1 spot in Brand Equitys first listing of Indias 100 biggest FMCG brandswent to Gold Flake. Gold Flake remains Indias biggest FMCG brand for the year 2003. It continues to be twice as big as its nearest competitor (in terms of sales)and has even grown by almost 8% in the year 2002-03.

MARKETING MIX: Product:

Brand name : The brand name of Gold flake has a very good position in themarket. The brand name of Gold Flake is popular since last 25 years. Quality : Gold Flake offers superior quality of cigarettes with a differenttype of tobacco i.e. golden tobacco in it, which is being bleached before manufacturing of the cigarette. This gives a different type of quality to the product. Safety : It is less harmful as the tobacco content is less. There is also a filter connected to the end of the product, through which the tobacco content isinhaled in less proportion while smoking. Packaging : The packaging of Gold Flake is done in hard cardboard paper. A packet contains 10 cigarettes and small packet contains 5 cigarettes. The packaging also includes the raw materials used for the product, the harmfulcharacter of the product and the price of the product. Accessories : The accessories offered by the product are a cigarette filter andalso a cigarette holder for smoking.

Price:
Pricing strategy: The pricing strategy of the company depends upon thedemand of Gold Flake and also the prices of other products. If the price of o t h e r b r a n d i s h i g h t h e prices of Gold Flake are lowered down. If t h e demand for the product is high the prices are risen up. Retail price: Gold Flake has different categories. The price of large packetof Gold Flake is Rs 34/-; small packet is Rs 28/- and loose cigarettes costaround Rs 3.50/-. Volume pricing: The large packet of Gold Flake contains 10 cigaretteswhich is Rs 34/-, small packet Rs 28/- contains 5 cigarettes. These prices areoffered to the consumers. To retailers the price offer is comparatively lessthan that of consumers as the buy in bulk. The price depends upon thequantity of the wholesale purchase by the retailers. Price flexibility: Price flexibility is very less in this product. Thepriceschange depending upon the market and consumers demand and supply. The prices also changes as per the tax rate and government rules and regulations

Place:
Distribution channels: The distribution channel starts from the whole seller then the distributers. T he third party is the retailers and then finally theretailers to the consumers. Market coverage: ITC covers a wide range of the retail spectrum, from premium outlets in the metros to small shops in the interiors of rural India. Order processing: the order processing is done as per the demand andsupply of the product in the market. In this category of product the demand is increasing day-by day, therefore each year the company has to increaseits production as per the increasing demand. Especially as the standard of rural consumer is increasing, the demand for brand ed cigarettes is alsoincreasing. Therefore order processing has to be done well in advance. Transportation: Long distance transportation is done through trucks andcontainers depending upon the quantity of the product to be transported.Small distance transportation like distributing to the local retailers is donethrough small tempos.

Promotion:
Brand name : The brand name of Gold flake has a very good position in themarket. The brand name of Gold Flake is popular since last 25 years. Quality : Gold Flake offers superior quality of cigarettes with a differenttype of tobacco i.e. golden tobacco in it, which is being bleached before manufacturing of the cigarette. This gives a different type of quality to the product. Safety : It is less harmful as the tobacco content is less. There is also a filter connected to the end of the product, through which the tobacco content isinhaled in less proportion while smoking. Packaging : The packaging of Gold Flake is done in hard cardboard paper. A packet contains 10 cigarettes and small packet contains 5 cigarettes. The packaging also includes the raw materials used for the product, the harmfulcharacter of the product and the price of the product. Accessories : The accessories offered by the product are a cigarette filter andalso a cigarette holder for smoking.

BIBLIOGRAPHY
1)www.itcportal.com

2)wikipedia.org/wiki/ITC Limited 3)Moneycontrol.com

4)www.economy watch.com 5)www.google.com 6)www.indiaretailing.com