Marketing Strategy of ITC – ITC Marketing Strategy: Established in 1910 as Imperial Tobacco Company of India the company initially focused on tobacco products for a long time until it began to expand into non-tobacco goods in the 1970s.
ITC has since emerged in the form of a conglomerate with multiple businesses that has diverse businesses including Hotels, Lifestyle Retail stores food and drink sector and confectionary industry, paperboards segment, and body care products, among others. Read Article: What Is Marketing Strategy? Definition
Did You Know About ITC?
Company : ITC ( Imperial Tobacco Company of India)
CEO: Sanjiv Puri
Founder: Ajit Narain Haksar in 1969
Year founded: August 24, 1910
Headquarters: Kolkata, India
Annual Revenue : US$10 billion
Profit | Net income : US$1.7 billion
Products & Services: Atta, Vermicelli, Ghee, Salt, Spices, Ready To Eat Meals & Instant Mixes · Biscuits, Cookies
ITC Fun Fact : As the company’s ownership was progressively Indianised, under Haskar’s leadership, the name of the company was changed from “Imperial Tobacco Company of India Limited” to “India Tobacco Company Limited” in 1970. ITC also became the first company in India to start from the 1971 Scissor’s Cup.
STP in the ITC Marketing Strategy
ITC is a name that responds to the requirements of a wide range of segments of the population. This is accomplished by dividing the market based on similar traits.
ITC utilizes a combination of psychographic and geographical segmentation variables like occupation, income class gender, age, region, and behavior.
ITC utilizes differentiated and selective targeting strategies used by the company to promote its offerings from different groups of companies.
“To enhance the wealth-generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value”
“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”
Competitive advantage in the ITC Marketing Strategy
Through the years, ITC has evolved into a massive company that offers a wide range of services and products that range from Agri-Products to food items in the FMCG Segment to IT Solutions.
The experience gained from such a wide range of services and products has allowed the company to become a major company in the market, especially in the FMCGcigarettes, Hotels, and Paperboards & Packaging industries.
With 108 years of knowledge of the market in India, Market ITC has created a solid distribution system that is in line with none of its competitors currently. It has enabled Market ITC to comprehend the requirements and needs of its customers, making it financially stable and more competitive than its competitors.
ITC’s E-Chaupal initiative that aims to make internet access available for Indian farmers has changed the lives of millions of family members of the farmers living in the rural parts of India, thus increasing the brand’s visibility through this initiative social and by using certain Brand fundamentals to the company.
BCG Matrix in the ITC Marketing Strategy
The business segments of ITC include FMCG cigarettes, FMCG- Foods, ITC Infotech, Agri-Business, Hotels, Paperboards & Packaging, Branded Apparels, and Packaged Foods.
From that FMCG- Cigarettes is the main cash-flow source as Agri-Business, Hotels, Paperboards & Packaging is the most coveted segment of ITC.
FMCGFoods is still considered to be a concern for the company, and packaged foods and brand-named clothing are classified as dogs of the firm.
Distribution strategy in the ITC Marketing Strategy
The company has its channel for sales. the products are available to wholesale dealers through Carried & Forward Agents (CFA’s) and then distributed to the retailers in towns either directly or through Small Wholesale Dealers to reach customers in the most remote of places in the nation.
Brand equity in the ITC Marketing Strategy
ITC is placed 772 on the Forbes magazine list of top 2000 companies worldwide. ITC is estimated at $51.5 billion in June 2018.
ITC is also listed at 239ranksk on the world’s top employers list by Forbes Magazine and Asia’s 50 top-performing companies list, which was made by Business Week.
Market analysis in the ITC Marketing Strategy
In the GST regime, with an additional cess to be charged over what is the GST which is 28% for cigarettes and tobacco-related products ITC has calculated an increase in the tax burden of more than 20% on the business. Analysts have predicted that the company’s consumption of cigarettes has been hit and decreased by over five percent over the last quarter.
The bigger perspective on the economic front over the last 10 years, the worth value created by this business is $55 billion.
Foreign exchange earnings during the past 10 years were at $7.1 Billion, of which agricultural exports comprised 56% of the total.
In the social sector, there is direct employment for more than 32,000 people, and its programs like e-chappal and social farm forestry initiatives and ‘Mission sunehraKal’ have transformed many families and farmers in rural India.
In terms of the environment, ITC has been Water Positive Enterprise (16 years in a row), Carbon Positive Enterprise (13 years in a row), and Solid waste recycling Positive (11 years in a row). It is the only company that has similar dimensions that have been able to maintain and achieve the three important global indicators of sustainability in the environment.
Customer analysis in the ITC Marketing Strategy
With its diverse variety of products and services, ITC caters customers to every type of customer between 5-60 years, and more with its offerings ranging from Candyman, and Mint-o to Aashirvaad and many more.
In the B2B sector, ITC provides for the requirements of various businesses as well by providing ITC Infotech in the IT industry as well as ITC Hotels for the Hospitality industry.
Promotional Strategy in the ITC Marketing Strategy
In the past, ITC has done Surrogate Advertising for its Wills brand of cigarettes.
For different segments such as Ashirvaad, Bingo, Sunfeast, Bingo in Food products Fiama, Di will Engage in Education and personal care stationery section Classmate ITC has been using both Above the Line (ATL) as well as Below the Line (BTL) advertising strategies, with a frequent advertisement that is seen on Televisions as well as Newspapers respectively.
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