Itc Sunfeast1 (7)

7/28/2019 Itc Sunfeast1 (7)

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Project Report On Sunfeast

Presented To:- Presented By:-

Dr H. Gayathri Abhishek Agarwalla (12121)

Chirag Thakur (12133)

Kumar Piyush (12145)

Rohin Thomas (12157)

Sowmya K (12169)

Ashish Jain (12181)

................................................................................


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Table of Content

INTRODUCTION............Error! Bookmark not defined.

About ITC Sunfeast ..........Error! Bookmark not defined.

ITCs PROFILE ..............Error! Bookmark not defined.

COMPETITORS ANALYSIS ......................................... 10

4ps ............................Error! Bookmark not defined.

SALES AND DISTRIBUTION............Error! Bookmark not

defined.

SEGMENTATION, TARGET AND POSITIONING ...........Error!Bookmark not defined.

SWOT ANALYSIS ...........Error! Bookmark not defined.

ANSOFF MODEL....................................................... 35

SUGGESTIONS ......................................................... 36

CONCLUSION:- ........................................................ 36


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Introduction

Biscuit Industry in India

BISCUITS! A vital part of an average Indians snack time or tea break. Beyond a shadow of a doubtIndia has a huge market for biscuits and has been growing annually at a static level during the last

decade. About 90% of Indians buy and eat biscuits. The per capita consumption of biscuits in the

country is 1.8 kg. There has been an average growth rate of 13.5% between the years 2005 and 2011

in the biscuit industry. Indian Biscuit Manufacturers Association (IBMA) estimate biscuit industry

to grow in the range of 15% to 18% every five years. Biscuit industry contributes Rs. 8000 crores to

the FMCG industry today providing vast opportunity for growth.

Annual production of the biscuit industry (in lakh metric tonnes)

Main categories of biscuits in India:-

Glucose

Marie

Sweet

Salty

Cream

Milk

The biscuit industry in India has both organized and unorganized sectors which are 65% and 35%

respectively of the entire market. The biscuit industry happens to have a good penetration both in the

urban as well as the rural market.

14.2916.14

17.4416.57

18.25 19.1

0

5

10

15

20

25

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Annual Production (in lakh metric

tonnes)

Annual Production (in

lakh metric tonnes)


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Rural-Urban penetration growth of Biscuit:-

Urban Market: 75% to 85%

Rural Market: 50% to 65%

Marketing:-

Wholesale and Retail marketing in the Biscuit industry is carried out with a network of Carrying &

Forwarding Agencies (for States and specific Districts), Dealers / Wholesalers and Retail shops.

Biscuit Consumption in India:-

On behalf of the industry, IBMA has been pursuing the issue with the Chief Ministers/Finance

Ministers of all States and also with the Chairman of the Empowered Committee on VAT, seeking

reduction in the rate of VAT on biscuit to 4% from 12.5%. IBMA estimates annual growth in the

range of 15% to 20% during the next five years, in the event of reduction in the rate of VAT on

Biscuits to 4%.

The Indian market is flooding with various brands of biscuits which come in different types and

flavours. The leading companies of biscuits in the country are:-

Parle Britannia

Sunfeast

Priya Gold

Cremica

Dukes

Anmol

Horlicks

Biskfarm

Rose Sobisco

Nezone

26%

23%24%

27%

Northern Zone

Southern Zone

Westen Zone

Eastern Zone


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Parle is the market leader of the Indian biscuit industry.

Instant noodle industry in India

NOODLES! The first brand name which comes in the mind of an average Indian when he hears the

word noodles in Maggi. The instant noodles Maggi which was introduces in the year 1983 is a hotfavourite among all the kids of the country. Consumed in almost every Indian household Maggi

which was initially considered a snack is taking the place of a staple diet in most Indian homes. In

todays world, packaged and ready to eat foods are gaining quite a formidable share of the Indian

food market. The word noodles became synonymous with the name Maggi.

Nestle India Limited's Maggi has been dominating the Indian noodles industry since a period of

almost 29 years. But Maggi is facing tough completion in the market today. Its three decade long

domination over the noodles market is now under threat from various other companies like Hindustan

Unilever (Knorr Soupy noodles), GlaxoSmithKline (Horlicks Foodles), ITCs (Sunfeast Yippie),

Nissin (Top Ramen) and Big Bazaar (Tasty Treat). According to Mr Devendra Chawla, business

head for private brands at the Future Group, one of India largest retailers, puts it succinctly: "The

instant noodles market [in India] is set to grow from `1,300 crore (US$288 million) at present to

around at least `3,000-3,500 crore (US$666 million to US$776 million) by 2015 and therefore all the

big FMCG [fast moving consumer goods] players have their eyes set on it." Just like the Cola Wars

(Pepsi Vs. Coca Cola) which happened during the 80s and the 90s, a Noodle War is soon bound to

happen.

Noodle Industry and market share of various players

Year Maggi TopRamen

TastyTreat

Yippie Foodles Others

2005 92.3 6 0 0 0 1.7

2006 91.9 7.1 0 0 0 1

2007 91 6.9 0 0 0 2.1

2008 88.1 8.2 0 0 0 3.7

2009 89 5.3 0.6 0 0 5.1

2010 86.5 6.4 1 3 1 2.1

2011 85 3.1 1.8 4.3 3.2 2.6

According to industry analysts, the Indian consumer is a lot more open to the "instant food"

categories and is far more demanding of more choices now than he or she ever was before. With ITC

entering the market, Maggi is going to have a tough time as ITC is known for its in the eye kind of

advertising campaigns and extensive supply channel. ITC claims to grab 10% of the market by the

year 2012 for which they rely on their current network.


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Market share of the various brands in the year 2011:-

Instant Pasta Industry in India

PASTA!! Research conducted by ITC shows that mothers nowadays are looking for newer and

innovative evening snack options for their children. Pasta is gaining popularity in the Indian market.

Research also indicates that women are aware about Pasta but find the cooking process of Pasta

tedious and cumbersome. ITC's innovative instant Pasta offering - Sunfeast Pasta Treat thus offers a

unique solution for the Indian palates.

The instant pasta market is at the kind of stage that the instant noodles market was years ago. says

Chitaranjan Dar, Chief Executive Officer (CEO), Foods division at ITC. Estimated at Rs 40 crore, it

is growing at 25 per cent per annum, according to the same report. In the next five years, the pasta

market is expected to be at Rs 100 crores. ITCs Sunfeast Pasta Treat is the pioneer of this category

which comes in six flavours:-

1. Masala

2. Tomato cheese

3. Sour cream onion4. Cheese

5. Chicken

6. Pizza

Nestle launched its 'Pazzta' brand of instant pasta to complement its Maggi noodle line. Pazzta is

available in three flavours:-

1. Cheese Macaroni

2. Masala Penne

3. Tomato twist

85

3.11.8 4.3 3.2 2.6

Maggi

Top Ramen

Tasty Treat

Yippie

Foodles

Others


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Future Group's Tasty treat and Bambino's Passta are other brands in the running. With the market

still being in its nascent stage, there is lot of opportunity for differentiation.

Nestle holds 70 per cent of the market share of the instant pasta industry. Even though ITC had

an early run in the market, Nestle turned out to be the market leader.

ITC

ITC was founded on August 24, 1910 asImperial Tobacco Company of India Limitedand shares

ancestry withImperial Tobaccoof the United Kingdom, but later it became fully independent, and

was rechristened to India Tobacco Company in 1970 and then to I.T.C. Limited in 1974.The

Company got rechristened as 'ITC Limited' after the full stops got removed with effect from

September 18, 2001. ITC has a wide range of businesses.

The first six decades of the Company's existence were primarily devoted to the growth and

consolidation of the Cigarettes and Leaf Tobacco businesses. The company witnessed the beginnings

of a corporate transformation that would usher in momentous changes during the Seventies. Now

ITC is one of India's foremost private sector companies with a market capitalisation of over US $ 34

billion and a turnover of US $ 7 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. It is also ranked 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

ITC

FMCG

Hotels

Paperboards &

Specialty Papers

Packaging

Agri-Business

InformationTechnology
http://en.wikipedia.org/wiki/Imperial_Tobaccohttp://en.wikipedia.org/wiki/Imperial_Tobaccohttp://en.wikipedia.org/wiki/Imperial_Tobaccohttp://itcportal.com/about-itc/itc-profile/images/itc-profile-ad.jpghttp://itcportal.com/about-itc/itc-profile/images/itc-profile-ad.jpghttp://en.wikipedia.org/wiki/Imperial_Tobacco


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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 FMCG (Fast Moving Consumer Goods), Hotels, Paperboards &

Specialty Papers, Packaging, Agri-Business and Information Technology. While ITC is an

outstanding market leader in its traditional businesses of Hotels, Paperboards, Packaging, Agri-

Exports and Cigarettes, it is rapidly gaining market share even in its nascent businesses of Packaged

Foods & Confectionery, Branded Apparel, Personal Care and Stationery. With its headquarters

located in Kolkata, the current chairman of ITC Limited is Mr Yogesh Chander Deveshwar.

ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of

growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-

building capabilities and effective supply chain management. Over time, the strategic forays into new

businesses are expected to garner a significant share of these emerging high-growth markets in India.

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".

The diversification timeline of ITC:-

In 1925, ITC's Packaging & Printing Business was set up as a backward integration for ITC's

Cigarettes business.

In 1975, the Company entered into Hotels business with the acquisition of a hotel in Chennai

which was renamed as 'ITC-Welcomgroup Hotel Chola' (now renamed My Fortune,

Chennai). ITC chose the Hotels business for its potential to earn high levels of foreignexchange, create tourism infrastructure and generate large scale direct and indirect

employment. Since then ITC's Hotels business has grown to occupy a position of leadership,

with over 100 owned and managed properties spread across India under four brands namely,

ITC Hotels - Luxury Collection, WelcomHotels, Fortune Hotels and WelcomHeritage.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards

Limited.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture.

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).

In 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for

export of agri-commodities.

In 2000, ITC's unique and now widely acknowledged e-Choupal initiative began with soya

farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers.

Also, through the 'Choupal Pradarshan Khet' initiative, the agri services vertical has been

focusing on improving productivity of crops while deepening relationship with the farming

community.

In 2000, ITC also entered the Lifestyle Retailing business with the Wills Sport range of

international quality relaxed wear for men and women.


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In 2000, ITC spun off its information technology business into a wholly owned subsidiary,

ITC Infotech India Limited. Today ITC Infotech is one of India's fastest growing global IT

and IT-enabled services companies and has established itself as a key player in offshore

outsourcing, providing outsourced IT solutions and services to leading global customers

across key focus verticals - Banking Financial Services & Insurance (BFSI), Consumer

Packaged Goods (CPG), Retail, Manufacturing, Engineering Services, Media &

Entertainment, Travel, Hospitality, Life Sciences and Transportation & Logistics. In 2001, 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

with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes.

In 2002, Bhadrachalam Paperboards amalgamated with the Company and became a Division

of the Company, Bhadrachalam Paperboards Division. Later that year, this division merged

with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers

Division.

In 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to

Surya Nepal Private Limited (Surya Nepal). In 2002, TTD was merged with the Bhadrachalam Paperboards Division to form the

Paperboards & Specialty Papers Division.

In 2002, ITC launched line of premium range of notebooks under brand Paperkraft.

In 2002, The Wills Lifestyle chain of exclusive stores later expanded its range to include

Wills Classic formal wear.

In 2002, ITC also initiated a foray into the popular segment with its men's wear brand, John

Players.

In 2002, ITC entered the confectionery and staples segments with the launch of the brands

mint-o and Candyman confectionery and Aashirvaad atta (wheat flour).

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 and Aim.

In 2003, the Classmate range of notebooks was launched.

In 2003, Sunfeast was introduced in the market as the Company entered the biscuits segment.

In 2003, ITC marked the manifestation of its partnership with the cottage sector as it forayed

into the marketing of Agarbattis (incense sticks) in 2003. Mangaldeep is a highly established

national brand and is available across a range of fragrances like Rose, Jasmine, Bouquet,

Sandalwood, Madhur, Sambrani and Nagchampa.

In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging

Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu.

In 2005, ITC entered the Personal Care Business. In seven years, the Personal Care portfolio

has grown under 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel' and 'Superia' brands which have

received encouraging consumer response and are also being progressively extended

nationally.

In 2006, Wills Lifestyle became title partner of the country's most premier fashion event -

Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as

the single largest B-2-B platform for the Fashion Design industry.

In 2007, ITC entered the fast growing branded snacks category with Bingo.


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In 2008, ITC positioned the business as the Education and Stationery Products Business and

launched India's first environment friendly premium business paper under the 'Paperkraft'

Brand.

In 2010, ITC launched Sunfeast Yippee! to enter the Indian instant noodles market.

In 2010, ITC launched its handrolled cigar, Armenteros, in the Indian market. Armenteros

cigars are available exclusively at tobacco selling outlets in select hotels, fine dining

restaurants and exclusive clubs.

COMPETITORS ANALYSIS

The Rs. 150 billion Indian biscuits market has grown at the rate of 12-14 percent year on year. It isthe third largest market for biscuits in the world. Britannia is highest selling in terms of value,

followed by Parle and ITC. Britannia and Parle together command a 75-78 percent market share,which three years ago was 82 percent before the entry of ITC. It is classified under two sectors:

1. Organized, 70% market share

2. Unorganized, 30%market share

The biscuit market in India is extremely price sensitive. With Parle providing most of its biscuits inthe range of Rs. 4.00-6.00, other players in the market can't think of increasing the prices. The onusnow lies in the hands of brand managers to project their brands to capture a bigger market share. Onefactor on which smaller players like Bisk Farm, Priya Gold, etc., are leveraging is the "quality". Since

most of the bigger players like Britannia and ITC outsource their manufacturing, there is differencein the quality of biscuits contrary to these firms who do the production in-house.


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Annual growth of Indian biscuit industry

14

13

15

10

14

15

9

10

11

12

13

14

15

16

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Annual Growth(%)

Annual Growth(%)


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Per capita consumption

There is a threat from the competitors and the aggressive strategies adopted by them.The major players are:-

BRITANNIA:

Britannia Industries Limited is an Indian food-products corporation based in Kolkata. It is famousfor its Britannia and Tiger brands of biscuit, which are popular throughout India. Britannia has anestimated 32% market share. The Company's principal activity is the manufacture and sale of

biscuits, bread, rusk, cakes and dairy products . The company's factories have an annual capacity of433,000 tonnes. The brand names of biscuits include VitaMarieGold, Tiger, NutrichoiceJunior,Good day, 50 50, Treat, Pure Magic, Milk Bikis, Good Morning, Bourbon, Thin Arrowroot,

Nice, Little Hearts and many more. Britannia specialise in providing the challenging fatformulations demanded by the chocolate, ice cream, bakery, snack food and other industries. Theyare a relatively young company having a fresh approach, constantly striving to achieve higherstandards of excellence particularly in customer service. Operated by a small close-knit team of

people: scientists, technicians, marketing and production, all experts in their own fields, and all like-minded individuals whether it be setting successful strategies or conducting day-to-day operations.

Strengths:

Well defined and appealing advertisements highlighting the core value of energy andhealth.

They have 6 power brands which contribute towards 80% of their sales.

Well diversified portfolio of biscuits and innovative concepts of smaller size packets.

Only biscuit company to have removed trans-fat from all its recipes, catering to a marketwith sensitive needs.

1.8

2.5

7.5

5.5

0

1

2

3

4

5

6

7

8

India South-East Asia USA European

Countries

Per Capita Consumption(Kg)

Consumption(kG)
http://en.wikipedia.org/wiki/Ruskhttp://en.wikipedia.org/wiki/Dairy_productshttp://en.wikipedia.org/wiki/Dairy_productshttp://en.wikipedia.org/wiki/Rusk


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Weaknesses:

Increase in input costs in putting pressure on the prices.

Stiffer competition from other players in the segment.

PARLE:

Parle-G or Parle Glucose is a brand of biscuits manufactured by Parle Products in India. As of 2011,it is the largest selling brand of biscuits in the world according to Nilsen. Primarily eaten as a tea-time snack, Parle-G is one of the oldest brand names in India. For decades, the product wasinstantly recognised by its iconic white and yellow wax paper wrapper with the depiction of ayoung girl on the front. Counterfeit companies have attempted to recreate and sell lower quality

products of similar names with virtually identical package design

The company's slogan is G means Genius. The name, "Parle-G", is derived from the name of the

suburban rail station, Vile Parle which in turn is based on village Parle in olden days (there is also

area called Irle nearby where the Parle Agroproduction factory is based).

Parle-G has 70% market share in India in the glucose biscuit category followed by Britannia, Tiger(17-18%) and ITC's Sunfeast glucose (8-9%). The brand is estimated to be worth over Rs 2,000crore (Rs 20 billion), and contributes more than 50 per cent of the company's. It also is popular

across the world and is starting to sell in Western Europe and USA.

Strengths:

Brand image, one of the oldest in the country

Well diversified product range.

Extensive distribution system.

Low and mid range prices catering to all segments of consumers.

Weaknesses:

Overdependence on Parle G brand.

They have to rely more on retailers ad grocery stores to showcase their diversified

product range rather than on individual advertisement of individual products.

Declining market share

Stiff competition by other players.
http://en.wikipedia.org/wiki/Sloganhttp://en.wikipedia.org/wiki/Vile_Parlehttp://en.wikipedia.org/wiki/Parle_Agrohttp://en.wikipedia.org/wiki/Parle_Agrohttp://en.wikipedia.org/wiki/Vile_Parlehttp://en.wikipedia.org/wiki/Slogan


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Priya Gold:

Surya Food & Agro Ltd. was incorporated in November 1992 and commenced its commercial

operations of manufacturing & selling of biscuits under brand Priyagold in October 1993. Over a

period, it has established strong manufacturing capabilities and has invested substantially indeveloping consumer preference for its products. The company has capacity of producing upto

1,50,000 MT p.a., with strong brand building and distribution capabilities.

Strengths:

Glamorous and effective advertising.

Extensive and varied portfolio of premium biscuits.

Quality assurance.

Big budget and willingness to invest in long term phases.

Weaknesses:

Lacking to cater to the low-income segment.

Inability to retain target consumers.

Expensive product range.

Competition from other biscuit players in the market.

OREO:Oreo is a popular sandwich cookie made by the Nabisco division of Kraft Foods. Since its 1912

introduction, Oreo has become the best selling cookie in the United States, through the 20th century

and into the 21st.

It was first introduced in India in March 2011 under Cadbury, a major chocolate brand recently

acquired by Kraft, with the tag line, it is the world's No. 1 biscuit. It is also available in local

McDonald's restaurants as an addition to McFlurry ice cream. Before the launch of the brand in

India, Britannia Industries launched a similar brand named Treat-o.

Strength:

Oreo has collaborated with McDonalds, Dominos and Baskin Robbins to promote its

product

Worlds No. 1 biscuit

Very well-known brand name(Cadbury)

Well established customer base

Weakness:

Nutritional problems, high fat content and calories Limited flavors and varieties


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Market Share

40

32

15

4.41.6

7

Sales

Parle

Britania

Sunfeast

Priyagold

Kraft Foods

Others


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4Ps Marketing Mix

Product :The snack foods offered by Sunfeast are:-

Sunfeast milky magicMilky magic packed with goodness of milk is delicious, nutritious, crispy and crunchy.it is a

perfect balance of energy that aids physical strength and mental ability. These biscuits strike

the right balance of milk and wheat which helps in an all round development and nurturing of

the child.

Sunfeast Marie Light

o Sunfeast Marie Original

This ideal teatime biscuit is made from the finest quality wheat high in fibre and keeps

one light and healthy through the day.o Sunfeast Marie Orange

It has the distinction of being one of the most successful innovative Marie biscuits and is

liked by one and all.

o Sunfeast Marie OatsThe first of its kind in India, Sunfeast Marie Light Oats is enriched with the goodness of

natural wheat fibre and soluble oats fibre.

o Sunfeast dark fantasyIt is the richest of chocolate vanilla biscuits. These biscuits are created using carefully chosen

premium ingredients for a sensory experience unlike any other. Its a luxurious mix of

aromatic cocoa and vanilla. Sunfeast dark fantasy choco fills

It is the latest and the most premium offering from the portfolio of Sunfeast. It is an exquisitecombination of luscious chocolate filling enrobed within a perfectly baked rich cookie outer and it

fully epitomizes the brand promise of "Pure Indulgence".

Sunfeast glucoseIt is a wholesome & nutritious choice as these golden brown biscuits are made from the bestquality wheat and are ideal not just for kids but also adults.

Sunfeast dream cream

o Choco-vanilla and strawberry-vanilla flavours

o Bourbon

It is a special delight for all chocolate lovers.

o Orange cream

A tangy twist in biscuits can be experienced by every orange cream.

o Butterscotch cream

It provides the taste of butterscotch ice-cream in cream biscuit.

Sunfeast snackyIt is light and crispy. It is available in two variants classic salted and chilli flakes

Sunfeast sweet n saltThese thin and crisp biscuits come with a distinctive sundry taste that of salt and sweetness.

Sunfeast nice


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These are crisp coconut biscuits showered with sugar crystals.

Sunfeast specialo Special cookies

o Special creams

Sunfeast pasta

o Sunfeast pasta treat

It is a whole wheat based instant pasta introduced as a healthy snacking option for

children and young adults. Initially Masala, Tomato Cheese, Cheese, Sour Cream

flavours are introduced and later Pizza style, Chicken, Tangy Tomato are introduced.

Sunfeast Yippee!Wheat is a key ingredient of the Yippee! Noodles. These noodles do not lump even 30

minutes after cooking. The two varieties of Yippee are Classic Masala and Magic Masala.

Price:

Sunfeast looked at a two-pronged strategy in pricing with their strategy being high margins in cream

variants and volumes from the Marie and Glucose segments. In Glucose and Marie varieties, the

companies have little choice in terms of pricing. As there is little differentiation in these varieties,

consumers are extremely price sensitive. A former CEO of one of the major companies reportedly

commented the biscuit consumer is willing to pay more only when he sees a clearly differentiated

product. Hence companies have little choice in terms of pricing.

Place:

Distribution

FMCG products have to essentially be available in the market at all given points of time and at all

given points of purchase ,so the distribution channels are very important.ITC has a very strong

distribution network for their cigarette brands and they are using this network for Sunfeast biscuits

also.IITTCC uusseess FFIIFFOO mmeetthhoodd ttoo rreedduuccee wwaassttaaggee ooffggooooddss dduuee eexxppiirryy..They keep their goods onconstant move from low sales area to high sales area.TThheeyycollect the expired goods four times ayear and destroy them.The benefits received by the retailers depend upon their sales volume and also

the location of theirshops. The company says the brand is now available in nearly 1.8 million outlets.


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FMCG companies maintain intense distribution network. Companies spend a large

portion of their budget on maintaining distribution networks


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Promotion:

ITC has strong brand building capacity. ITCspromotion activities were :

The brand was promoted by Television campaigns across National and Vernacular media thatwere distinct, highlighted the product attributes, quality and the newness.

Well differentiated advertisements, some of which showed a complete cream world with

cream rivers, cream mountains and cream trees, were targeted at kids watching cartoon

channels. At the same time, on general entertainment channels, mothers received information

on the importance of glucose, the wholeness of wheat.

The company tied up with Bey Blades, the popular television series that was a rage among

children.

In August 2003, a month after its launch, the company undertook a major sampling exercise

to promote the product. For two years from then , the brand did all the usual rounds- blockingtelevision spots, booking that corner space in your favourite newspaper and so on.

In a bid to reinforce its brand on kids, they covered more than 1000 schools across the

country as part of its Sunfeast school programme. The objective was to build salience for the

brand and familiarise the kids with the Sunfeast brand world and the Sunfeast mascot.

In April 2005, Sunfeast launched its major campaign. shah rukh khan was its brand

ambassador and the official sponsor of the WTA tennis championship titled the Sunfeast

Open. They had teenage sensations Sania Mirza and Mahesh Bhupathi campaigning for it.

For promotions in southern states, Sunfeast has signed Tamil super star Surya as a brand

ambassador.

Launch of Sachins Fit Kit,the first product co-created with bran ambassador. Sachin has

shared his dietary regimen which has helped him to stay in top fitness for more than 17 years

,with the company and the product was developed taking inputs from the dietary regime.


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SALES &

DISTRIBUTION

Successful value creation needs successful value delivery.


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Sales & Distribution System of ITC


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DISTRIBUTION NETWORK

Bangalore Calcutta Saharanpur Munger

GODOWNS

BRANCHES

WHOLESALE DISTRIBUTORS PER RANC

RETAILERS SECONDARYWHOLESALERS

Information

Goods

Grocery Stores Super Markets


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DISTRIBUTION:

In this regard, sunfeast has been fortunate: Thanks to its tobacco business, ITC already has a

good understanding of distribution channels.

The company says that the brand is available in nearly 1.8 million outlets.

ITC uses FIFO method to reduce the wastage of goods due to expiry.

They also keep the good on constant move from low sales area to high sales area.

The company collects all the expired goods four times a year and destroys them.

ITC provides their retailers with racks, hangers to display the products.

The benefits received by the retailers depend upon their sales volume and also the location of

their sales.

ITC has hired IMRB to do the market research.

In a nutshell, the distribution of ITC food products gives the following things:

1. Fast and effective

2. Flexibility

3. Quick reaction to the competitors

4. Strict compliance methods, low profit margins, intense competition and high customer

service expectations.


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Segmentation Targeting & Positioning


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1. Sunfeast Bourbon

Category: - Biscuits

Tagline/Slogan: - Spreadthe smile

USP:- Thick, rich and delicious chocolate packed between two crunchy chocolate biscuits

Segment:- Quality conscious children and adults

Target:- All age groups middle and upper class people

Positioning:- A special delight for all those chocolate lovers

Strength:-

1. Low cost

2. Good advertising and visibility

3. Good product quality and packaging

Weakness:-

1. Limited target audience i.e. people who prefer chocolate

Opportunities:-

1. Tie-up with corporates/hotel chains

Threats:-

1. Severe threat from wafer and salted snacks segment

2. Similar biscuit categories3. Chocolates

Competitors:-

1. Parle Hide n Seek

2. Cadbury

3. Britannia Bourbon


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2. Sunfeast Dark Fantasy

Category:- Biscuits

Tagline/Slogan:- Escape into one dark fantasy; Spread the smile

USP:-Thick, rich and delicious chocolate packed between two crunchy chocolate biscuits

Segment:- Quality conscious children and adults

Target:-Youth from middle and upper class people

Positioning:- Its a luxurious mix of aromatic cocoa and vanilla.

Strength:-

1. Low cost

2.Good advertising and visibility

3.Good product quality and packaging

Weakness:-


Opportunities:-


Threats:-


2.Similar biscuit categories

3.Chocolates

Competitors:-


2. Cadbury



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3. Sunfeast Marie Light

Category:- Biscuits

Tagline/Slogan:- Light Khaao Light Raho; Spread the smile

USP:- Ideal teatime biscuit is made from the finest quality wheat high in fiber and keeps one light

and healthy through the day

Segment:-Taste and Quality conscious children and adults

Target:- All age groups middle and upper class people

Positioning:-Ideal tea time biscuit

Strength:-

1. Low cost


3.Good product quality and packaging 4.Celebrity brand ambassador

Weakness:-

1. Many competitors in this segment 2.Nothing unique

Opportunities:-


Threats:-



Competitors:-

1. Parle G

2.Priya Gold


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4. Sunfeast Milky Magic

Category:- Biscuits

Tagline/Slogan:-Spread the smile

USP:-These biscuits strike the right balance of milk and wheat which helps in an all round

development and nurturing of the child.

Segment:-Children segment

Target:- Young growing children

Positioning:-It has perfect balance of energy that aids physical strength and mental ability

Strength:-

1. Low cost



4.Celebrity brand ambassador

Weakness:-

1. Many competitors in this segment

2.Nothing unique

Opportunities:-

1. Tie-up with schools as a part of meals

2. Untapped rural market

Threats:-

1. Similar biscuit categories

Competitors:-

1. Parle G

2. Britannia Tiger


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5. Sunfeast Dark Fantasy Choco Fills

Category:- Biscuits

Tagline/Slogan:-Escape into one dark fantasy; Spread the smile

USP:-An exquisite combination of luscious chocolate filling enrobed within a perfectly baked rich

cookie outer. An offer that fully epitomizes the brand promise of "Pure Indulgence".

Segment: -Quality conscious children and adults

Target: -Youth from middle and upper class people

Positioning:-Its a luxurious mix of aromatic cocoa and vanilla.

Strength:-

1. Low cost


3. Good product quality and packaging

Weakness:-


Opportunities:-


Threats:-1. Severe threat from wafer and salted snacks segment


3. Chocolates

Competitors:-


2. Cadbury



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6. Sunfeast Glucose

Category:- Biscuits

Tagline/Slogan:-Jab choti si bhookh kare pareshan, main wo hun jo laye muskan.

Har bite mein muskan.

USP:-Wholesome & nutritious choices as these golden brown biscuits are made from the best quality

wheat. Ideal not just for kids but for adults too.


Target:-All age groups middle and upper class people


Strength:-

1. Low cost




Weakness:-

1. Many competitors in this segment

2.Nothing unique

Opportunities:-


Threats:-



Competitors:-

1. Parle G


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2.Priya Gold

7. Sunfeast Snacky

Category:- Biscuits

Tagline/Slogan:-Thodi Sharafat, Thodi Shararat

USP:-Bigger than most others in the salted biscuit category, Snacky is light and crispy like no other.

From kids to adults, its the quintessential Family Biscuit. Available in two variants, Classic

salted and Chilli flakes - the very first of its kind in India.

Segment: - Taste and Quality conscious children and adults



Strength:-

1. Low cost




Weakness:-1. Many competitors in this segment

2.Nothing unique

Opportunities:-


Threats:-




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Competitors:-

1. Parle G

2.Priya Gold

8. Sunfeast Sweet & Salt

Category:- Biscuits

Tagline/Slogan:-Kuchh Meethe Meethe Sapne, Kuch Namkeen Sach

USP: -These thin and crisp biscuits come with a distinctive sundry taste, that of salt and sweetness.A bite into one of these one keeps wondering about its taste!




Strength:-

1. Low cost




Weakness:-1. Many competitors in this segment

2.Nothing unique

Opportunities:-


Threats:-




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Competitors:-

1. Parle G

2.Priya Gold

9. Sunfeast Yippee Noodles

Category:- Food Products

Tagline/Slogan:-The better noodles; Spread the smile

USP:-Instant noodles with different tastes

Segment:-People looking for a healthy snack when hungry

Target:-Young people and children from upper and middle class

Positioning:-Sunfeast Yippee noodles do not lump even 30 minutes after cooking

Strength:-


2. Good product distribution and availability

3. Lots of flavours and varieties available

Weakness:-

1. Media generated news about health issues

2. Brand loyalty of Maggi is tremendous

Opportunities:-

1. Untapped rural markets

2. DINKS, single professionals

3. Newer tastes

Threats:-1. Price wars with other noodle brands


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Competitors:-

1. Maggi

2. Top Ramen

3. Foodles

4. Tasty Treat


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ANSOFF MODEL

Current Products New Products

1.Market Penetration

(Intensive Growth)

3. Product Development

(Intensive Growth)

CurrentMarket

Attract Users of CompetitorsProduct.

Introduction of combo packs atdiscounted price

Increase Product Usage.

New usage like using SunfeastSnacky Classic salted and Chilliflakes biscuit with differenttoppings.

Increase the frequency ofpurchase.

Making small packages availablelike sunfeast special at Rs.5 andGlucose biscuits at Rs.1

Product Reformulation

Sunfeast Marie Light Oats

Product line Extension

Relaunch of Sunfeast Dark FantasyCream Delight with new flavour

New product development

Sunfeast Marie Light Orange

Dream cream with Butter scotch flavour

Dark Fantasy Choco fills targetingpremium segment

2. Market Development(Intensive Growth)

4. Diversification

NewMarket

Expand geographically

Launched in the Middle East andAfrica.

Related

Sunfeast Yippie

Sunfeast Pasta

Integrative Growth

Backward Integration ------ Procurement of agricultural raw material fromE-CHOUPAL.


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RECOMMENDATIONS

Quality improvement and image advertising as compared to market leader

The company can look at diversifying into the chocolates and candies segment as the name

sunfeast resonates well with the kids.

The premium and super premium segments according to industry experts are believed to be

growing at around 30% annually. So sunfeast can come up with new varieties in premium

segment.

Sunfeast should provide better benefits to wholesalers and retailers as Nestle is providing

higher margin to retailers to compete with.

Itc Sunfeast1 (7)

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