Touching your life everyday !

Vision

Mission

Values

Values • ITC's Core Values are aimed at developing a customer-focused, high-performance

organisation • Customer Focus we are always

customer focused and will deliver what the customer needs in

terms of value, quality and satisfaction. ITC. WORKING FOR YOU. WORKING FOR

Society

Where company Stands?

ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 14 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,

ITC ranks among India's `10 Most Valuable (Company) Brands‘

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

ITC

FMCG

Personal care

Packaged Food products

HotelsAgri Business, Leaf

Tobacco, Agri commodities

Paper board, paper & Packaging

swot99 years tradition

Huge capital

Distribution

NetworkInterlinke

d Business

Image As Tobacco

Company

Apart from FMCG

other SBU are in loss

Rural Exposure

sCan

strengthen FMCG

Coordination in

Business Units

PESTLPolitical (incl. Legal) Economic Social Technological

Environmental regulations and protection

Economic growth Income distributionGovernment research spending

Tax policiesInterest rates & monetary policies

Demographics, Population growth rates, Age distribution

Industry focus on technological effort

International trade regulations and restrictions

Government spending Labor / social mobilityNew inventions and development

Contract enforcement lawConsumer protection

Unemployment policy Lifestyle changes Rate of technology transfer

Employment laws TaxationWork/career and leisure attitudesEntrepreneurial spirit

Life cycle and speed of technological obsolescence

Government organization / attitude

Exchange rates Education Energy use and costs

Competition regulation Inflation rates Fashion, hypes(Changes in) Information Technology

Political StabilityStage of the business cycle

Health consciousness & welfare, feelings on safety

(Changes in) Internet

Safety regulations Consumer confidence Living conditions(Changes in) Mobile Technology

0%10%20%30%40%50%60%70%80%90%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Series3Hotels

Series3paper boards

Series3FMCG OTHER

Series3Agri Bus.

Series3cigarettes

Hotelspaper boardsFMCG OTHERAgri Bus.cigarettes

5’Forces ModelThreat of

NewEntrants

Rivalry AmongExisting

Competitors

Bargaining Powerof Customers

Bargaining Powerof Suppliers

Threat ofSubstitutes

Purpose of 5 Force Analysis The five forces are environmental

forces that impact on a company’s ability to compete in a given market.

The purpose of five-forces analysis is to diagnose the principal competitive pressures in a market and assess how strong and important each one is.

Threat of New Entrants

Government Policy – Are More - positive

Economies of Scale - Not Easy to Achieve - positive

Product Differentiation – Requires huge R&D - positive

Capital Requirements - high - positive

Switching Costs - low - negative

Access to Distribution Channels - Not Easy - positive

Cost Disadvantages Independent of Scale - more - positive

Bargaining Power of Suppliers

Supplier industry is dominated by a few firms

Suppliers’ products have few substitutes

Buyer is not an important customer to supplier

Suppliers’ product is an important input to buyers’ product

Suppliers’ products are differentiated Suppliers’ products have high

switching costs Supplier poses credible threat of

forward integration

Bargaining Power of Buyers

Buyer groups are likely to be powerful if:Buyers are concentrated or purchases are large relative to seller’s salesPurchase accounts for a significant fraction of supplier’s sales

Products are undifferentiated

Buyers face few switching costs

Buyers’ industry earns low profits

Buyer presents a credible threat of backward integrationProduct unimportant to quality

Buyer has full information

Threat of Substitute Products

Threat of Substitute Products

Keys to evaluate substitute products:

Products with improving price/performance tradeoffs relative to present industry products

Rivalry Among Existing Competitors

Rivalry Among Existing Competitors

Intense rivalry often plays out in the following ways:

Using price competition

Staging advertising battles

Making new product introductions

Increasing consumer warranties or service

Cont’d

Occurs when a firm is pressured or sees an opportunity

Price competition often leaves the entire industry worse off

Advertising battles may increase total industry demand, but may be costly to smaller competitors

Cutthroat competition is more likely to occur when:

CNumerous or equally balanced competitorsSlow growth industry

High fixed costs

Lack of differentiation or switching costs

High storage costs

Capacity added in large increments

High strategic stakes

High exit barriers

Diverse competitors

Rivalry Among the competitors is very High

Threat of substitutes is Moderate or

High

Bargaining Power

supplier is high

Bargaining Power of

Buyer is Very High

Threat of New

Entrants is Low

5’Force Model

for ITC -Fmcg

Competitor Analysis

The cigarette market in India has 3 players • Godfrey Phillips India (GPI), a Philip Morris affiliate,13% of market share • Vazir Sultan Tobacco (VST), a BAT affiliate, 13% of the total market share • Golden Tobacco Company (GTC) with 8% of the market share. qDomestic competitors • Kanhayya tobacco • MR tobacco • Sapna enterprises • Sudarshan tobacco qITC still attains a gigantic market share of 66

Competitor Analysis

HUL:Net sales of the company grew by 19.7% y-o-y to Rs 4027.9crore driven by 22.5% growth in FMCG–HPC business ,

17.5% growth in FMCG – Foods business and underlying volume growth of 7%.

P&G

Parle

Britannia

Marketing Conglomerate Diversification

ITC

FMCG

Personal care

Packaged Food products

HotelsAgri Business, Leaf

Tobacco, Agri commodities

Paper board, paper & Packaging

FMCG

Apparels Food Person

al Care

Stationary &

Sticks

Will

s Cla

ssic

Will

s Spor

t W

ills

Clublif

e

Will

s Sig

nature

John P

laye

rsM

iss

Playe

rs

Sty

ling li

fe fo

r upper

mid

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s

ITC's Packaging & Printing Business is the country's largest convertor of paperboard into packaging. It converts over 35,000 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.

The Division, which was set up in 1925 as a strategic backward integration for ITC's Cigarettes business, is today India's most sophisticated packaging house. State-of-the-art technology, world-class quality and a highly skilled and dedicated team have combined to position ITC as the first-choice supplier of high value added packaging.

OPERATIONS

Ansoff’s Market Matrix

Market Penetration Product

Development

Market Development

Diversification

Exis

ting

Mark

et

Existing Prod. New Product

New

M

ark

et

New Product Launchings

Product portfolio

Affluent

Aspiring

Starving

Target Market

Urban(High Income )

Urban & Semi-urban (Upper & middle class)

Rural

'Essenza Di Wills'

'Fiama Di Wills'

'Vivel Di Wills'

‘Superia'

POSITIONING

In 70’s they have positioned themselves by saying:- • “For the gracious people” • “A touch of Gold” • "A tribute to the gracious people” It is still differentiating itself on the purity and quality of its experience. • The brand stands for a celebratory

attitude. “Celebrate the feeling” is the new message

7’S FOR ITC

Backward Integration

ITC PRINTING & PACKAGING IN 1925

&NOW

ITC INFOTECH

FORWARD INTEGRATION

Classmates

E-choupal

Sunfeast

Competitive Tactics

FIRST MOVER: Cigarettes, HOTELS, E-choupal

EARLY IMMITATERS: PAPER PACKAGING ITC INFOTECH.

LATE MOVERS: FMCG, FOODS

Promotion Strategy

Push Strategy: In Popular category with innovative incentive schemes to distributors.

Pull strategy: 1) Luxury products Ex. Wills Signature, Essensa

2) Strong Brands Ex. Pasta, MTR, BINGO

Pricing Strategy

Competitive reference pricing in mass products or popular category

Value pricing for luxury products.

Growth strategies

Synergy of all SBU.

Intra SBU Communication.

Emerge as clean in practices in CSR, Corporate Governance & Sustainability.

Outsourcing

R &D

• ITC research and developed facilities Rajahmundry in AP cover

all aspects of tobacco crop cultivation. its collaboration with the

central tobacco board research institute and tobacco board ITC

pioneered FCV tobacco cultivation in India and introduced the

burley and HDBRG varieties.

FINANCIAL OBJECTIVES

FY-09FY-10

FY-11

0

50000

100000

150000

200000

250000

300000

231435260557

296862

total

total

Cigarettes other total fmcg hotels agri business paper &paper boards

total 0

50000

100000

150000

200000

250000

300000

350000

189010

42718

231728

12047

4840638400

330581

FY-09FY-10FY-11

THANK YOU