Slide 1

Presented By:Group 2Maria Khatoon (PGFA1528)Monika Trivedi (PGFA1529)Rupali Singh (PGFA1543)Shilpee (PGFA1549

IntroductionITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal. Its diversified business includes five segments:

Fast-Moving Consumer Goods (FMCG)HotelsPaperboards & PackagingAgri BusinessInformation TechnologyTobacco

Product and BrandCigaretteITC Ltd sells 80 percent of the cigarettes in India

275 million people use tobacco products

The total cigarette market is worth close to $6 billion (around Rs.65,000 Crore)

Vision and MissionVISION 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 globalising environment,Delivering superior and sustainable stakeholder value.

ITC's Core ValuesITC's Core Values are aimed at developing a customer-focused, high-performance organisation which creates values for all its stakeholders.

TrusteeshipAs professional managers, we are conscious that ITC has been given to us in 'trust' by all our stakeholders.We will actualise stakeholder value and interest on a long term sustainable basis.Customer FocusWe are always customer focused and will deliver what the customer needs in terms of value, quality and satisfaction.Respect for PeopleWe are result oriented, setting high performance standards for ourselves as individuals and teams. We will simultaneously respect and value people and uphold humanness and human dignity.We acknowledge that every individual brings different perspectives and capabilities to the team and that a strong team is founded on a variety of perspectives.We want individuals to dream, value differences, create and experiment in pursuit of opportunities and achieve leadership through teamwork.ExcellenceWe do what is right, do it well and win. We will strive for excellence in whatever we do.InnovationWe will constantly pursue newer and better processes, products, services and management practices.Nation OrientationWe are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals, we will make no compromise in complying with applicable laws and regulations at all levels.

OBJECTIVESTo build relationship with customer based on trust and mutual benefitTo uphold highest ethical standard in conduct of our businessWe create the nurture a culture that supports flexibility, learning and its proactive to changeTo chart a challenging career for employees with opportunities for advancement and rewardsTo value the opportunity and responsibility to make a difference in peoples lives

Strategy Generation

Focus on the chosen business portfolio FMCG; Hotels; Paperboards, Paper & Packaging; Agri Business; Information Technology Blend diverse core competencies residing in various Businesses to enhance the competitive power of the portfolio Position each business to attain leadership on the strength of world-class standards in quality and costs Craft appropriate Strategy of Organisation and governance processes to: Enable focus on each business and Harness diversity of portfolio to create unique sources of competitive advantage

Strategy Selection3-Tiered Governance Structure

E- cigarettesThere are several vendors in the e-cigarette market in India, but they lack organized e-cigarette selling strategies.Few vendors use retail outlets to sell their products while many generate revenue through online sales. Tobacco companies promote their e-cigarette brands through celebrity endorsements. They also try to differentiate their brands from those of the Pharmaceuticals industry.In addition, the increased demand for e-cigarettes is increasing the market's lucrativeness and forcing retailers and cigarette sellers to stock e-cigarettes, cartridges, and e-liquids. Online sales constitute the majority of the market share. The entry of leading cigarette manufacturers into the market is expected to increase the number of distribution outlets around the country. This will help increase the revenue of the market during the forecast period.

Strategy ImplementationThe policy is communicated to all employees through induction programmes, policy manuals and intranet portals.The custodian of this policy is the head of each operational unit and divisional chief executives of the respective business.ITCs complaints resolution procedure is premised on the freedom of employees to approach higher officials beyond his/her immediate superior. For unionised employees compliance of the policy is ensured through a robust grievance handling procedure and the presence of a union that brings violation to the notice of the unit HR head.

A Push Strategy involves pushing the product through distribution channels to the final customers.ITC adopted this strategy to increase its sell and awareness & to gain favouritism from the kirana owners. In anticipation of the mystery shoppers, the kirana owners kept offering ITC cigarettes to all the customers first and only upon request & insistence they sold the requested brand. ITC did this by putting up posters in kiranas & used the concept of mystery shopping in case of tobacco industry. And hence they requested the shop owners to Offer ITC cigarettes first to every customer & if he sold a particular target he will be qualified to enter a lucky draw and hence bumber prize.

PUSH STRATEGY (PROMOTIONAL STRATEGY)

The pull strategy is where the producer directs its marketing activities (primarily advertising & consumer promotion) towards final consumer to induce them to buy the product Under this strategy the consumer demand pulls the product through channels Sun feast ready to eat pasta achieved 6% volume in branded noodles market. This was achieved by excessive advertising which pulls the product through distribution channels The strategy adopted is to spend more money on consumer advertising designed to build brand awareness so that shoppers will ask for the product.Pull Strategy

Competitive StrategyFIRST MOVERThe first company to manufacture and sell a new product or service is called First or Prime mover.ITC-Welcome group pioneered a holistic concept of branded accommodation in the hospitality industry it was the first to launch the powerful idea of a Hotel within a hotel by segmenting and branding the hotel services. It was first to brand its cuisine.LATE MOVERLate mover are those who are able to imitate the technological advance of others, keep risk down by waiting until the new market is established and take advantage f the first movers inclination to ignore market.ITC entered the biscuit business very late when to measure players like Britannia & Parle were busy biting of chunked of the national market among themselves,ITC dug into market research. Finding revealed that the category had gaps and hence ITC launched Sunfeast with 6 ranges.

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Growth StrategyMergers and AmalgamationITC has decided to consolidate its hotels business and has accordingly proposed to amalgamate its wholly owned ITC hotels ltd. And other hotels subsidiaries with the main company.ITC has merged Bhadrachalam Paperboard Ltd. With the main company to position itself as a leader in the paperboard market.Strategic AllianceITC has made a significant move in its greeting card business by entering into a strategic alliance with the Maple leaf. Hence Maple Leaf make exclusive cards for ITC and hence ITC re-launched under expression Brand name.Joint VentureIn 1985, ITC set up Supriya Tobacco Co. in Nepal as an Indo- Nepal and British Joint venture.AcquisitionIn 1990 ITC acquired Tribeni Tissue Ltd.