iTC Company complete product analysis-1.pptx

iTC Company complete product analysis-1.pptx

1. Fantastik Chocolate: A Product Analysis Team – 04 38- Babu Ravindra Nadig 37- Mohammad Sufiyan 42- Pooja Hiremath 39- Pramod Uppar

2. Product Categorization and Classification Product: Fantastik Chocolate Product Category: FMCG, Confectionery, Chocolate Product Classification: Consumer product (targeted at individual consumers) Tangible product Non-perishable product (with proper storage)

3. Product Differentiation Fantastik chocolate differentiates itself by offering a variety of flavors A lmond F ruit and nut, C reme n cookies At an affordable price point of Rs . 10. Ingredients ( Milk,sugar,Almond or crunchies or fruities ) This targets the budget-conscious consumer segment. Product design : Clear display of product name,price,ingredients , easy to open packaging(Blue packet), Eco friendly packaging material, storage facility box (can be stored at roomtemperature )

4. PRODUCT MIX and PRODUCT LINE FANTASTIK CHOCOLATES

5. Product Hierarchy Product Category: FMCG Product Class: Confectionery ( chocolate) Product Line: Fantastik Product Item: Rs . 10 chocolate (specific flavors) DIVERSIFICATION, COMPLEMENTARY BUSINESS, STRONG BRAND PORTFOLIO

6. Competitor Analysis: Cadbury, Nestle, Amul Cadbury Market Leader: Cadbury enjoys a dominant position in the Indian chocolate market with brands like Dairy Milk, Bournville , and 5 Star. Strategy: Strong brand building, extensive distribution network, focus on affordability and taste, and a wide range of products catering to different consumer segments. Competitive Advantage: Strong brand equity, wide product range, and extensive reach.

7. Nestle Strong Competitor: Nestle is a major player with brands like KitKat, Milkybar , and Nestle Classic. Strategy: Emphasis on product innovation, targeting specific consumer segments (e.g., kids with Milkybar ), and leveraging its global brand image. Competitive Advantage: Diverse product portfolio, strong distribution network, and focus on innovation.

8. Amul Niche Player: Amul primarily focuses on the dairy market but has a presence in the chocolate segment. Strategy: Leveraging its strong brand image in the dairy category to cross-sell chocolate products, focusing on regional tastes and preferences. Competitive Advantage: Strong brand recognition, focus on local flavors, and potential for leveraging its extensive distribution network. These three companies have established strong positions in the Indian chocolate market through distinct strategies. ITC's Fantastik brand will need to differentiate itself effectively to compete in this challenging landscape.

9. Product Strategy Target Market: Middle to upper-income consumers seeking premium chocolate experiences. Product Development: Focus on creating a superior product with distinct flavors and packaging. Pricing: Premium pricing to reflect the higher perceived value. Distribution: Leveraging ITC's existing distribution network while exploring selective distribution channels for premium positioning. Promotion: Emphasize product benefits, taste, and quality through advertising, public relations, and digital marketing.

10. Product Positioning for the Rs . 10 Chocolate Given the success of Fantastik , ITC could position the new Rs . 10 chocolate as a premium version offering: Superior taste and quality: Using higher-quality cocoa and ingredients. Unique and innovative flavors: Introducing exotic or limited-edition flavors. Enhanced packaging: Using premium packaging materials and designs. Line Extension The Rs . 40 chocolate would be a line extension of the Fantastik brand, leveraging the brand equity and consumer trust built by the existing product.

11. Product Theory in Practice The product life cycle for the Rs . 10 chocolate would be start at the I ntroduction stage. ITC would need to invest heavily in marketing and distribution to create awareness and build demand.(DECLINE, OUTDATED, INTRODUCED, TOTAL BRANDS, ALL PRODUCTS,CAS COWS,PRODUCT AND BRAND RELTION , PRODUCT MIX PRIN BSTRATR, INREDIENT BRANDIN,

12. Buyer Behavior Consumers in the target market are Children,students,Adults . I nfluenced by factors such as brand image, product quality, taste, and packaging. Also consider price, retailers margin is given at a higher rate (as they prefer to sell it to customers)

13. Marketing Strategies for Introduction Stage Heavy advertising and promotions: To create awareness and generate interest. Public relations: To build brand image and credibility. Free samples and tastings: To encourage trial and generate positive word-of-mouth. Distribution partnerships: To ensure wide availability of the product. Digital marketing: To reach the target audience effectively.

14. Co-branding ITC could explore co-branding opportunities with complementary products biscuits to create attractive offers and cross-sell opportunities. By carefully executing these strategies, ITC can successfully launch the Rs . 40 chocolate and expand its presence in the premium chocolate segment.

15. Product and Brand Relationships in ITC Food Products ITC has strategically built a strong portfolio of food products under various brands, leveraging synergies and creating distinct brand identities. Core Brand: Aashirvaad Umbrella brand : Aashirvaad is the flagship brand for ITC's food business. It is strongly associated with purity, quality, and Indian traditions. Product lines: Staples : Atta, rice, pulses, sugar Spices Ghee Ready-to-cook mixes Instant meals

16. Brand extensions : Aashirvaad Svasti (dairy products) Snacking and Confectionery: Sunfeast , Bingo, Candyman Distinct identities: These brands cater to different consumer segments and occasions. Sunfeast : Focuses on biscuits, cakes, and cookies, targeting a wide consumer base. Bingo : Primarily a snack brand, offering a range of chips and extruded snacks. Candyman : Targets children and youth with a variety of candies and chocolates.* Other Food Brands Yippee: A strong brand in the instant noodles category. Fabelle : A premium chocolate brand, positioned as a luxury offering. B Natural: A fruit juice brand, focusing on health and wellness. Kitchen of India: Ready-to-eat meals, capitalizing on ITC's culinary expertise

17. ITC Product PLC Stages Cigarettes: Given the mature nature of the cigarette market and ITC's dominant position, many of their cigarette brands are likely in the maturity stage. However, new variants or premium segments might be in the growth or introduction stage. FMCG Products: ITC has a diverse FMCG portfolio. Staples like Aashirvaad atta might be in maturity due to their essential nature and strong brand equity. New product categories or innovations under the Aashirvaad or Sunfeast brands might be in the growth or introduction stages. Products like Bingo! is in maturity or decline in certain regions, while new flavors or variants could be in growth or introduction . Hotels: The hotel industry is dynamic. ITC's luxury hotels might be in maturity or decline in some segments, while new property launches or repositioning efforts could place them in growth or introduction stages. Paperboards and Packaging: Given the cyclical nature of the industry, product lines might fluctuate between growth , maturity , and decline based on economic conditions and industry trends. Agri-Business: This segment is influenced by factors like agricultural cycles, government policies, and consumer preferences. Products could be in various stages of the PLC.

18. Product Mix Pricing at ITC . Key Pricing Strategies Employed by ITC: Market Penetration Pricing: Commonly used in the FMCG segment (especially for new product launches). Aim is to capture a large market share quickly by offering competitive prices. Examples: Bingo! chips, Yippee noodles Premium Pricing: Employed for luxury products and premium brands. Reflects high quality, exclusivity, and superior value. Examples: ITC Hotels, Fabelle chocolates Value-Based Pricing: Focuses on perceived value rather than cost or competition. Used for products where customers are willing to pay a premium for specific benefits. Examples: Aashirvaad Svasti ghee, Classmate notebooks

19. Competitive Pricing: Matches or slightly undercuts competitors' prices. Used in highly competitive markets. Examples: Cigarettes, paperboards Product Line Pricing: Creates price differentials within a product line based on features, quality, or size. Examples: Different variants of Aashirvaad atta , Sunfeast biscuits Price Bundling: Offers multiple products at a discounted price. Encourages customers to buy more.   Examples: Combo offers on ITC food products

20. Stars: Agri-business , hotels, paperboards and packaging: These are likely categorized as stars due to their potential for high growth and market share. The agri-business, for instance, has been a focus area for ITC, and the paperboard and packaging business is often a leader in its segment. Hotels, though cyclical, can be high-growth areas when the economy is booming . Question Mark: FMCG (food ): This categorization is reasonable as the FMCG food market is highly competitive, and ITC is still building its market share compared to established players. While there's growth potential, the company's position is uncertain .

21. Cash Cow: FMCG (cigarettes):This is a classic example of a cash cow. The cigarette market, while facing regulatory challenges, is mature and generates substantial profits for ITC. These profits can be reinvested in other business units. Dog: ITC Infotech: Categorizing IT services as a dog might be too simplistic. The IT services industry is dynamic, and while margins might be lower compared to some other ITC businesses, it could still be a significant contributor and have growth potential.

22. Co-branding Indirect Co-branding: ITC often partners with suppliers and farmers through initiatives like e- Choupal to ensure quality raw materials . Ingredient Branding Aashirvaad Atta: This is a prime example of ingredient branding. By focusing on the quality and purity of wheat, ITC has positioned Aashirvaad as a trusted brand for atta .

23. PLC IN BOTH RURAL and URBAN Aashirvaad Atta Urban: Aashirvaad Atta is likely in the maturity stage in urban areas. It has established a strong brand presence and enjoys a loyal customer base. Focus is on maintaining market share and introducing product variants (like whole wheat, multigrain atta ) to cater to evolving consumer preferences. Rural: Aashirvaad Atta is in maturity stage in rural areas. With increasing awareness of health and nutrition, demand for branded atta is growing. ITC's focus would be on expanding distribution and building brand trust.

24. Sunfeast Biscuits Urban: Sunfeast is likely in the maturity stage in urban areas. With a wide range of products, Sunfeast has a strong foothold. However, to maintain growth, the focus might be on premiumization and introducing innovative flavors. Rural: Sunfeast might be in the early maturity stage in rural areas. Increasing disposable incomes and changing lifestyles are driving demand for packaged snacks. Focus would be on expanding distribution, offering affordable products, and creating brand awareness.

25. Bingo! Chips Urban: Bingo! is likely in the maturity stage in urban areas. While it enjoys a strong market share, maintaining growth would require continuous innovation in terms of flavors and packaging. Rural: Bingo! might be in the growth stage in rural areas. As the snacking culture grows, there is an opportunity to tap into the increasing demand for packaged snacks. Focus would be on affordability and distribution.

26. ITC Hotels Urban: ITC Hotels are predominantly in the maturity stage in urban areas. Focus would be on maintaining luxury positioning, service excellence, and attracting repeat customers. Rural: The hotel segment might be in the introduction in rural areas. With increasing affluence and tourism, there's potential for growth.

27. CHAPTER 2 The importance, nature, and management of new product development at ITC limited Explain how stages of NPD in ITC limited Routes for NPD in ITC limited Factors contributing to the success of new products at ITC limited Challenges contributing to the success of new products at ITC limited

28. The Importance, Nature, and Management of New Product Development at ITC Limited ITC Limited, a diversified conglomerate, has consistently demonstrated its prowess in new product development (NPD). This presentation will delve into the significance of NPD for ITC, its inherent characteristics, and the strategic approaches employed for successful product launches. The Nature of New Product Development at ITC Complex and Iterative Process: NPD at ITC involves multiple stages, from idea generation to market launch. Cross-Functional Collaboration: Successful product development requires seamless integration of various departments. Customer-Centric Approach: A deep understanding of consumer needs and preferences is paramount. Risk and Uncertainty: NPD is inherently risky, as market acceptance of new products is unpredictable. Continuous Innovation: ITC fosters a culture of innovation to stay ahead of competition.

29. The Importance of New Product Development at ITC Driving Revenue Growth: Introduction of innovative products contributes substantially to ITC's topline. Market Leadership: NPD enables ITC to maintain its market leadership position across various segments. Consumer Satisfaction: Understanding and addressing evolving consumer needs through new offerings. Risk Mitigation: Diversification of product portfolio reduces reliance on existing products. Brand Building: Successful NPD enhances brand image and equity.

30. Management of New Product Development at ITC Idea Generation: Internal brainstorming sessions Consumer research and feedback Market analysis and trend identification Concept Development: Feasibility analysis Market potential assessment Product prototyping Product Development: Product design and formulation Packaging development Supply chain optimization Test Marketing: Limited product launch to gather consumer feedback Market response analysis Commercialization: Production scale-up Distribution network establishment Marketing and promotion Sales force training

31. Idea Generation: Market Research Market Research: ITC conducts extensive market research to identify gaps, trends, and consumer preferences. This involves analyzing consumer behavior, competitor activities, and industry dynamics. Example of Success: The launch of Sunfeast biscuits was driven by market research indicating a growing demand for convenient and tasty snack options. Example of Failure : While ITC ventured into the dairy segment with ITC MasterChef, it faced stiff competition from established players and failed to gain significant market share. ITC MasterChef struggled to compete with established dairy brands, lacking a strong brand identity and distribution network in a highly competitive market.

32. Idea Generation: Consumer Insights Consumer Insights: ITC places a strong emphasis on understanding consumer needs and desires. This involves gathering feedback through surveys, focus groups, and social media listening. Example of Success: The development of Aashirvaad atta was based on deep consumer insights into the preferences of Indian households for high-quality wheat flour. Aashirvaad atta capitalized on the growing preference for branded, high-quality flour, leading to strong market penetration and brand loyalty. Example of Failure: One of the primary challenges was the underdeveloped cold chain infrastructure in India. Frozen food products require stringent temperature control throughout the supply chain, from production to the consumer's table. ITC's inability to establish a robust cold chain network resulted in:   Product Spoilage: Fluctuations in temperature affected the quality and taste of the frozen meals, leading to customer dissatisfaction.Limited Distribution: The absence of a reliable cold chain restricted the product's reach, preventing it from reaching a wider consumer base.Increased Costs: Maintaining a cold chain is expensive, impacting the product's profitability.

33. Idea Generation: Employee Suggestions Employee Suggestions: ITC encourages its employees to share their ideas and insights. This bottom-up approach fosters innovation and taps into the collective knowledge of the workforce. Success: ITC's Sunfeast Mom's Magic cake mix, a direct result of an employee suggestion, capitalized on the growing trend of working women seeking convenient baking solutions. Failure: An employee suggested a ready-to-eat Indian meal range, but challenges in replicating authentic tastes, maintaining food safety, and overcoming consumer preference for home-cooked meals hindered its success.

34. Idea Generation: Brainstorming Sessions ITC conducts brainstorming sessions to generate a wide range of ideas for new products. These sessions involve cross-functional teams, including marketing, R&D, and sales, to foster creativity and collaboration . Brainstorming Success and Failure Success: ITC's shift to paper-based packaging for products like Sunfeast biscuits was a direct result of brainstorming, aligning with growing eco-consciousness and reducing plastic waste. Failure: While brainstorming generated ideas for ready-to-eat Indian meals, challenges in preserving taste, complex supply chains, and overcoming consumer preference for home-cooked food hindered product launch.

35. Specific Tools and Initiatives LSTC (Life Sciences and Technology Centre): This is ITC's innovation hub, focusing on research and development across various domains. e- Choupal : A rural IT network that provides valuable insights into rural markets and consumer behavior. Market Research: Extensive market research is conducted to understand consumer needs and preferences. Consumer Testing: ITC employs various methods to test product concepts, including consumer surveys, focus groups, and test marketing.

36. LSTC It focuses on creating value through science and technology, by developing new products, processes, and technologies. Paper-based Packaging: LSTC's research led to the development of paper-based packaging solutions for various ITC products, reducing plastic dependency and contributing to sustainability goals.   Innovative Food Products: LSTC has contributed to the development of new food products like Sunfeast Mom's Magic cake mix and Aashirvaad atta variants, addressing consumer needs and preferences . Sustainable Agri -inputs: LSTC has developed bio-fertilizers and bio-pesticides that enhance crop yields while minimizing environmental impact

37. Stage Product Example Explanation Idea Generation Sunfeast Mom's Magic Cake Mix, ITC MasterChef Dairy Products, Paper-based Packaging This is the initial phase where ideas for new products are conceived. The examples include Sunfeast Mom's Magic Cake Mix, ITC MasterChef dairy products, and paper-based packaging. These ideas could have originated from various sources such as market research, consumer feedback, or internal brainstorming. Idea Screening ITC MasterChef Dairy Products (focus group testing), Paper-based Packaging (feasibility study), Sunfeast Mom's Magic Cake Mix (market potential analysis) Once ideas are generated, they are evaluated for their potential. In the case of ITC MasterChef, focus group testing might have been conducted to assess consumer interest. For paper-based packaging, a feasibility study would determine if it's technically and economically viable. For Sunfeast Mom's Magic Cake Mix, market potential analysis would assess the size of the potential market. Concept Development and Testing Sunfeast Mom's Magic Cake Mix (prototype development), Paper-based Packaging (packaging design and testing), ITC MasterChef Dairy Products (product formulation and taste testing) Promising ideas are developed into more concrete concepts. This involves creating prototypes, conducting taste tests (for food products), and testing packaging designs. Business Analysis Paper-based Packaging (cost-benefit analysis), Sunfeast Mom's Magic Cake Mix (market size estimation), ITC MasterChef Dairy Products (profitability projections) This stage involves a detailed financial evaluation of the product. For paper-based packaging, a cost-benefit analysis would be crucial. For Sunfeast Mom's Magic Cake Mix, estimating market size would help in determining potential revenue. For ITC MasterChef, profitability projections would be essential. Product Design and Development Sunfeast Mom's Magic Cake Mix (final product formulation), Paper-based Packaging (industrial design), ITC MasterChef Dairy Products (packaging design) The product is designed and developed in detail. This includes finalizing the product formulation, creating packaging designs, and determining the manufacturing process. Test Marketing Sunfeast Mom's Magic Cake Mix (limited launch in specific regions), Paper-based Packaging (pilot launch in selected cities) The product is launched on a limited scale to gather feedback. For Sunfeast Mom's Magic Cake Mix, this might involve launching it in specific regions. For paper-based packaging, a pilot launch in selected cities can be conducted. Commercialization Sunfeast Mom's Magic Cake Mix (national launch), Paper-based Packaging (full-scale production and distribution), ITC MasterChef Dairy Products (wide-scale distribution) If the test marketing is successful, the product is launched on a wider scale. This involves full-scale production, distribution, and marketing efforts.

38. ROUTES FOR NPD IN ITC LIMITED Line Extension: ITC often extends existing product lines by introducing new variants, flavors, or pack sizes. This strategy helps to capture a larger market share and compete directly with other brands. For example, Sunfeast Dark Fantasy competes with premium biscuit brands, while Aashirvaad Organic Atta targets the growing organic food segment . Brand Extension: Leveraging the strong brand equity of existing products, ITC ventures into new product categories. This strategy helps to expand the brand's reach and introduce new products to consumers. Aashirvaad Ready-to-Cook Meals and Wills Lifestyle are examples of successful brand extensions.

39. New Product Development: ITC also focuses on developing entirely new products to create new market segments or compete with existing players. Fabelle luxury chocolates and Bingo! Mad Angles are examples of innovative products that have disrupted their respective markets.

40. Route Segment Competitive Strategy Example Line Extension Biscuits (Sunfeast) Competition Sunfeast Dark Fantasy (competing with premium biscuits) Line Extension Atta (Aashirvaad) Competition Aashirvaad Organic Atta (competing in the organic segment) Brand Extension Aashirvaad New Segment Aashirvaad Ready-to-Cook Meals (entering the ready-to-eat segment) Brand Extension Wills New Segment Wills Lifestyle (entering the apparel segment) New Product Development Chocolates (Fabelle) Innovation Fabelle Luxury Chocolates (creating a premium chocolate brand) New Product Development Food (Bingo Competition Bingo! Mad Angles (competing in the quirky snack segment)

41. Factors Contributing to the Success of New Products at ITC Limited ITC Limited, a diversified conglomerate, has a history of successful new product launches. Several factors have contributed to their success, including: 1. Strong Brand Equity: Leveraging existing brand recognition to introduce new products under well-established brands. Example: ITC successfully launched Sunfeast Dark Fantasy biscuits under the Sunfeast brand, benefiting from the brand's reputation for quality and taste. 2. Consumer-Centric Approach: Conducting thorough market research to understand consumer needs and preferences. Example: ITC's foray into the ready-to-eat meals market with Aashirvaad was driven by a deep understanding of consumers' desire for convenient and authentic home-cooked food.

42. 3. Innovation and Differentiation: Developing products that are unique and offer a distinct value proposition. Example: ITC's Fabelle Chocolates, a premium luxury chocolate brand, stood out in the competitive market with its innovative flavors and packaging. 4. Effective Marketing and Promotion: Implementing targeted marketing campaigns to reach the right audience. Example: ITC's marketing campaigns for Bingo! Mad Angles leveraged social media and influencer marketing to reach a younger audience.

43. 5. Supply Chain Efficiency: Ensuring a robust and efficient supply chain to meet demand and minimize costs. Example: ITC's strong distribution network has played a crucial role in the success of its new products, ensuring timely availability in retail outlets. 6. Continuous Improvement: Learning from both successes and failures to refine product offerings and marketing strategies. Example: ITC has continuously improved its Sunfeast brand, introducing new variants and flavors based on consumer feedback and market trends.

44. Examples of Successful and Failed Products Successful Products: Fabelle Chocolates: A premium luxury chocolate brand known for its innovative flavors and packaging. Sunfeast Dark Fantasy: A popular biscuit brand that has captured a significant market share. Aashirvaad Ready-to-Eat Meals: A convenient and authentic range of ready-to-eat meals . Failed Products: ITC's foray into the personal care market with brands like Vivel and Essenza : These brands faced challenges in competing with established players and failed to gain significant traction. ITC's attempt to enter the soft drinks market with Thums Up: While initially successful, Thums Up eventually lost market share to Coca-Cola and Pepsi. The success of new products at ITC Limited is a result of a combination of factors, including strong brand equity, consumer-centricity, innovation, effective marketing, supply chain efficiency, and a commitment to continuous improvement. By carefully considering these factors, ITC has been able to successfully launch and market new products.

45. Challenges Contributing to the Success of New Products at ITC Limited 1. Competitive Pressure: Intense Competition: ITC operates in highly competitive markets, requiring constant innovation to stay ahead. Example: Sunfeast Dark Fantasy successfully competed with established premium biscuit brands by offering unique flavors and textures. 2. Consumer Evolving Preferences: Changing Tastes: Catering to evolving consumer preferences is essential for product success. Example: ITC's foray into the health and wellness segment with Sunfeast FitUp addressed the growing demand for healthier snack options. 3. Regulatory Hurdles: Compliance Challenges: Adhering to complex regulations can be a significant obstacle. Example: ITC's entry into the dairy segment required compliance with stringent food safety and quality standards.

46. 4. Supply Chain Disruptions: Global Challenges: Disruptions in the global supply chain can impact product availability and costs. Example: The COVID-19 pandemic affected ITC's supply of raw materials for certain products, leading to temporary shortages . 5. Resource Constraints: Limited Resources: Allocating resources to NPD can be challenging for a diversified conglomerate. Prioritization: Deciding which NPD projects to prioritize is crucial for maximizing returns .

47. Success Examples : Fabelle Chocolates: The premium chocolate brand successfully entered a competitive market with its unique flavors and high-quality ingredients. Aashirvaad Ready-to-Eat Meals: This product line tapped into the growing demand for convenient and authentic Indian food . Failure Examples: ITC's foray into the personal care segment: While ITC had a strong brand presence, it struggled to compete with established players in this market. Certain food products that failed to gain traction: Factors such as consumer preferences, pricing, and distribution challenges may have contributed to these failures. By effectively addressing these challenges, ITC has been able to successfully launch new products and maintain its position as a market leader.

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