To study about ITC in FMCG Sector -All domain

This is the study on ITC Ltd. limited an Indian multinational consumer goods company providing consumer products and services in the sector of health and, beauty wellness. The topic that I had been provided with is candy for my semester-1 final project report. I have in-depth study on the company to summarize its overall contribution in the industry.
This project report is divided into certain segments regarding the completion of the report. i.e.; introduction of the company and sector, finance and marketing and human resource. This involves the overall operations and details of the company assigned to me.
ITC Ltd. was established in 1910 and is headquartered in Kolkata, India. well-known Indian consumer products firm ITC Ltd. primarily serves in the FMCG sectors. Sanjiv Puri is the chairman and the managing director and CEO created, and it’s headquartered is situated in Kolkata (India) ITC Ltd. is renowned for its existence line of goods and healthcare products, personal care, foods and beverages such as, edible oils, skin care and hair care items.

1. Presented by: CHITRA SRIVASTAVA PGDM -3 UID No.: 2023-3005-0001-0011 TOPIC: The study of ITC with respect to “Candyman Tadka” PUNE INSTITUTE OF BUSINESS MANAGEMENT

2. Table of contents Executive Summary Business Model Canvas Sector Information Company Information Marketing Finance Human resource Conclusion

3. Executive Summary This is the study on ITC Ltd. limited an Indian multinational consumer goods company providing consumer products and services in the sector of health and, beauty wellness. The topic that I had been provided with is candy for my semester-1 final project report. I have in-depth study on the company to summarize its overall contribution in the industry. This project report is divided into certain segments regarding the completion of the report. i.e.; introduction of the company and sector, finance and marketing and human resource. This involves the overall operations and details of the company assigned to me. ITC Ltd. was established in 1910 and is headquartered in Kolkata, India. well-known Indian consumer products firm ITC Ltd. primarily serves in the FMCG sectors. Sanjiv Puri is the chairman and the managing director and CEO created, and it’s headquartered is situated in Kolkata (India) ITC Ltd. is renowned for its existence line of goods and healthcare products, personal care, foods and beverages such as, edible oils, skin care and hair care items. One of the most well-known brands of ITC Ltd. is Candyman Tadka, which is renowned for its confectionary products. A well-known brand for all the ages of person. It is a product with a wide variety of flavours and tastes.

4. BUSINESS MODEL CANVA – ITC

5. Sector Information The term industry and sector are often used interchangeably to describe a group of companies that operate in the same segment of the economy and share a similar business type. Sector – FMCG (Fast Moving Consumer Goods) Sector contribution to India’s GDP – 10% Sector CAGR and Forecasting – Industry Analysis and Forecast (2023-2029) Indian FMCG market size was valued at US $179.94 Bn. The total revenue is expected to grow at a CAGR of 27.9% by 2023-27(amounting US $1007.45 Bn.)

6. Sector categories wise CAGR – FMCG (Fast Moving Consumer Goods)

7. Consumer Buying Behaviour of the Sector The marketing of the FMCG products that heavily relies on consumer behaviour, which is influenced by several factors are as follows: Consumers’ tastes and preferences People’s likes and preferences for different products frequently vary, which affects the demand for those products. Due to change in taste, the demand for diverse commodities fluctuates. 2. Hybrid Experience Consumers now view digital tools as an essential component for purchasing the goods . They anticipate that brands which encourages hybrid shopping journeys, which combine physical and digital channels and the stores will be digitally equipped. 3. Prices for related goods Consumer demand is influenced by the costs of associated goods, especially those that are used as alternatives to or additions to the primary good. 4. Consumer behaviour Every single one of us has certain attitudes that either consciously or unintentionally affect how we purchase. How we behave toward a thing is greatly influenced by our attitudes and beliefs.

8. TOP 3 PLAYERS IN FMCG SECTOR

9. Threat of New Entrants - LOW Threats of substitution products - LOW Competitive Rivalry/ competition - HIGH Bargaining power of buyers - HIGH Bargaining power of Suppliers – MODERATE Porter’s 5 force Model – ITC Ltd.

10. PESTLE ANALYSIS

11. Strengths Strong brand presence, excellence products advertising Excellence research and development facilities ITC limited has over 25000 employees Weaknesses ITC is still dependent on its tobacco revenues and people have cheaper substitutes and other brand. Hotel industry has not been able to create huge market share Opportunities Tap rural market and increase penetration in urban areas Mergers and acquisitions to strengthen the brand Increasing purchasing power of people thereby increasing brand. More publicity of hotel chains to increase market share Threats Strict government regulations and policies regarding cigarettes Intense and increasing competition amongst other FMCG companies and hotel chains. FDI in retail thereby allowing international brands

12. Company’s Name: ITC Ltd . (Indian Tobacco Company) Founded in: 24 August, 1910 Founded by: Imperial Brands and W.D. & H.O. Wills CEO & M.D .: Sanjiv Puri Headquarter: Kolkata, West Bengal COMPANY INFORMATION

13. History ITC was founded on August 24, 1910, as the Imperial Tobacco Company of India Limited. It was a British – owned company registered in Kolkata. The company was founded by Imperial Brands and W.D. & H.O. Wills. ITC is one of India’s foremost private sector companies with a Gross Revenue of Rs. 69,481 Crores and Net Profit of Rs. 18,753.31 Crores. ITC was initially focused on the tobacco business, but it has since diversified into a number of other areas, including food processing, hotels, paperboards and packaging, Agri – business and information technology. In 1970, the company’s name was changed to India Tobacco Company Limited. In 1974, the name was further abbreviated to I.T.C Limited. In 1996, the company’s name was changed to ITC Limited, with “ITC” no longer being an acronym.

14. Strategic Framework of a Company – ITC Focus on a chosen portfolio of FMCG, hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology Benchmark the health of each business comprehensively across the criteria of market standing, Profitability and Internal vitality. Ensure that each of its businesses is world class and internationally competitive Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC’s various businesses Here are some specific examples of how ITC implements its strategic framework: In the FMCG sector - ITC has a strong focus on innovation and branding. The company has launched a number of successful new products in recent years, such as Aashirvaad atta, Bingo Snacks and Engage deodorants. In the hotels sector – ITC has a focus on developing world-class hotels and resorts. The company owns and operates a number of luxury hotels under the ITC Hotels brands .

15. In the Agri Business sector - ITC works with farmers to source high – quality agricultural products. The company also provides farmers with training and support services . In the information technology sector – ITC provides IT services to its own businesses as well as to external clients. The company is also developing new IT products and solutions. In the paper, paperboards and packaging sector – The company has a focus on sustainable manufacturing and product development.

16. Shareholding Pattern of ITC Limited

17. Organization Structure

18. SWOT ANALYSIS OF ITC COMPANY Strengths Established Market Reputation Expanding Market Share Increased financial performance Focus on new product Development Diversified business portfolio         Weaknesses Limited liquidity position Lack of geographical reach Over dependence on Cigarettes division           Opportunities Indian Cigarette Market Indian hospitality sector Favorable trends in market             Threats Highly competitive market Shortage of skilled labor Rising counterfeit goods market          

19. SEGMENTATION, TARGETING & POSITIONING (STP) – Candyman tadka

20. Reachability Candyman Tadka’s target market is children and adolescents in India who enjoy sweet and spicy flavours and are looking for a quick and easy snack. Market Size Estimated $ 12.5 Billion (Rs.100 Cr.) as of 2023 Based on the growing popularity among consumers of all ages Profitability The profitability of Candyman Tadka has not been disclosed yet but it is one of the ITC’s leading brands in confectionary products TARGETING

21. Positioning Symbolic Positioning Traditional Indian Candyman with a modern twist Spices and sweetness Celebration & joy Functional Positioning Positioned as a fun and exciting way to enjoy the classic Indian spice mix of tadka Experimental Positioning Unique flavour and texture

22. SWOT ANALYSIS – CANDYMAN TADKA

23. MARKET MIX Product – A product is anything that can be offered to a market to satisfy a customer’s desire or need. Price – The amount of money charged for a product or service. Promotion – The process of informing and persuading a target audience about a product, service, brand or issue. Place – The entire process of taking a product from the manufacturer and making it accessible to the consumer, which can include all intermediaries and distributors

24. Product - Candyman Tadka Candyman Tadka is a hard candy with a tangy and spicy flavour. It is made with blend of spices, including tamarind, chilli powder, and cumin. The candy is available in a variety of shapes and sizes, including individual pieces, rolls, and jars. Price – ₹5 - ₹35 (depends on the quantity) Candyman Tadka is a relatively affordable candy. The price of a Candyman tadka may vary depending on the retailer and the quantity purchased. Promotion – Variety of channels Candyman Tadka is promoted through a variety of channels, including advertising, social media and public relations. The candy is also promoted through in – store displays and promotions. Place – Various stores Candyman Tadka is available in a variety of retail locations, including grocery stores, convenience stores, and online retailers

25. PRODUCT LIFE CYCLE (PLC) – CANDYMAN TADKA Introduction – This is the initial stage where a new product is launched. In this case, Candyman Tadka, is introduced to the market. During this phase, the product is launched, and awareness is built among customers. Growth – In the growth stage, the product gains popularity , and sales start to increase rapidly. Maturity - During the maturity stage, the product reaches its peak in terms of sales and market penetration. Decline - In the decline stage, sales of the product start to decline as consumer preference change, or new products with better features are introduced .

26. Competitors Analysis Direct Competitors: They are those companies that offer the same or very similar products and services to the same target market. Indirect Competitors: They are those companies that offer similar products and services to the same target market, but with a different value proposition. Direct Competitors: ITC’s Aashirvaad Atta Vs. Godrej Nature’s Basket Atta ITC’s Fiama Di Wills Soap Vs. Dove Soap ITC’s Sunfeast biscuits vs. Britannia biscuits

27. Indirect Competitors: ITC’s Vivel soap vs. local and regional soap brands. ITC’s Bingo snacks vs. unorganized sector snacks ITC’s Classmate notebooks vs. imported notebooks Replacement Competitors: ITC’s Aashirvaad Atta vs. Rice ITC’s Fiama Di Wills soap vs. Body lotion ITC’s Sunfeast biscuits vs. fruit

28. ITC Limited -Balance Sheet

29. CASH FLOW STATEMENT PARTICULARS AMOUNT(₹) Cash Flow From Operating Activities ₹17,911 Cash Flow From Investing Activities (₹5159.37) Cash Flow From Financing Activities (₹12,730.43) As on 31 st March, 2023

30. Calculate the P/E ratio of the company and compare with it its Industry P/E

31. Analyze the Financial Statement of the Company by using Horizontal and Vertical (B/S, P&L, Cash Flow) Horizontal Analysis

32. Vertical Analysis

33. Horizontal Analysis Vertical Analysis

34. Horizontal Analysis

35. What are the macroeconomic factors that affect the stock price of your company? The following macroeconomic factors can affect the stock price of ITC: GDP growth: A growing economy leads to higher consume demand for ITC’s products, which can boost the company’s revenue and profits. Inflation: It can erode the purchasing power of consumers and reduce their demand for ITC’s products. Interest rates: Higher interest rates can make it more expensive for ITC to borrow money, which can impact its profitability. Exchange rates: ITC exports a portion of its product, so a weaker rupee can boost its export earnings. However, a weaker rupee can also make it more expensive for ITC to import raw materials. Government Policies: Such as excise duty on cigarettes and GST rates on FMCG products, can also impact ITC’s profitability.

36. Competitor analysis of the company ITC's main competitors in the FMCG segment include: Hindustan Unilever Procter & Gamble Nestle Dabur Godrej Consumer Products Britannia Industries Amul Marico Colgate-Palmolive PepsiCo Coca-Cola

37. Here is a brief comparison of ITC's performance with that of its key competitors in the FMCG segment:

38. Organizational Structure of ITC Limited

39. Recruitment & Selection Process of ITC Ltd.

40. Background Verification Process - ITC Limited Back ground verification check content significant step which are as follows: Educational Documents, Company Documents (if any experience certificate) Medical Documents Personal Documents

41. Onboarding Formalities and Documents required for joining

42. Candidate Engagement Process – ITC Ltd.

43. Method of TNA in the Organization – ITC Ltd.

44. TRAINING PROCESS AND METHODS USED IN ITC Ltd.

45. Process of Training

46. Why is it essential to create staff training programs that are appropriate for their skills and JDs? For a number of reasons, it is critical to provide staff training programs that are appropriate for their JDs and competencies: Enhanced output from staff members – Employee performance increases when they receive the training necessary to equip them with the abilities and information needed to conduct their jobs well. A rise in worker involvement - When workers believe they are expanding their knowledge and skills set, they are more likely to be actively involved in their work. A safer working environment – Accident and injury risk is decreased when workers receive adequate training on safety procedures and protocols.

47. EMPLOYEE TRAINING CALENDAR

48. Performance Management System (PMS) – ITC

49. Employee benefits in the organization - ITC Ltd.

50. HRIS Software tool used in the ITC Ltd. ITC Limited uses SAP SuccessFactors as its HRIS software tool. SAP Success factors is a cloud-based HR suite that offers a comprehensive range of HR modules, including: CORE HR Talent Management Payroll Time and attendance Learning and development Performance management Compensation and benefits Reporting and analytics

51. CONCLUSION ITC promoting their brands through advertisement campaign as well as door to door promotion ITC is also focusing retailers and wholesalers to promote their brand. The demand for their product is very low, because people are aware of the products. ITC know the strength and weakness in the personal care market , so they are applying new concept to overcome their weakness.