INTRODUCTION TO ITC LTD. One of the worlds most reputable company Market capitalization of nearly US $ 18 billion Post tax profit of US $750 Million Diversified product portfolio Direct group employment of 29000

OVERVIEW OF THE INDUSTRYIn 2003, ITC foraying into the segment, a lot of that changed. Before entering the segment, ITC dug into market research. Research revealed that the category had gaps which ITC could settle into. Findings revealed that consumers wished to taste new and innovative products.

ALL PRODUCTS OF SUNFEAST

SUNFEAST BISCUITS

WATCH OUT

WHY SUNFEAST BUISCUIT RANGE WAS LAUNCHEDuu..The biscuits industry had witnessed little innovation; Glucose was Glucose and Marie was still Marie." Then ITC decided that this could be its biggest point of attack. In 2003, ITC launched Sunfeast with six ranges.Sunfeast glucose buiscuit Sunfeast orange marie Sunfeast marie light Sunfeast orange cream Sunfeast butterscotch cream Sunfeast bourbon cream

STP OF SUNFEASTBiscuit Sunfeast glucose biscuit Segmenting Targeting Pricing Children between 100gms - Rs. 4, Natural goodness of the age group 4- 75gms - Rs 3, wheat 14 yrs & mothers 19gms - Rs. 1 Housewives 200gms - Rs. 13 200gms - Rs. 13 , 400gms - Rs.24

Sunfeast orange A very differentiate marie offering Sunfeast marie light Tight and Crispy Sunfeast orange cream Smooth and yummy Cream Sunfeast Butterscoth Cream Smooth and yummy Cream Sunfeast bourbon cream

Housewives Children between the age group 414 yrs 100gms - Rs.11 Children between the age group 414 yrs 100gms - Rs. 11 Children between Smooth and yummy the age group 4Cream 100gms - Rs12 14 yrs

Some other range of sunfeast buiscuit

SUNFEAST GOLDEN BAKERYSunfeast Golden Bakery is a premium cookie on an innovative and differentiated platform Launched nationally in March 2008 , These cookies are made from the recipes crafted by the master bakers of ITC Hotels and are slowly baked in the traditional way till they are golden brown and develop the crispy broken crust texture.

SUNFEAST MILKY MAGICPacked with goodness of milk these deliciously nutritious crisp and crunchy biscuits are a favorite among mothers and kids.

Milky magic has the Magic of 2 - A perfect balance of energy that aids physical strength Packed and nurturing of the child and mental ability.

STRAWBEARRY &CHOCLATE

CREAM

The first of its kind cream A special delight for all biscuit with special strawberry those chocolate lovers flavor crystals that will keep the creamy flavor linger on

PROMOTION AT THE LAUNCHING TIMEThe brand is supported with Television campaigns across National and Vernacular media beginning August 2003 that is distinct, highlighting the product attributes, quality and the new first time in the market offerings from Sunfeast. During the launch phase, Consumer promotions will be conducted across retail outlets for every purchase of Sunfeast Marie & Sunfeast Cream Biscuits 75gms of Glucose Biscuits FREE.

PROMOTION BY ADVERTISEMENTThe company says the brand is now available in nearly 1.8 million outlets Well differentiated advertisements, some which showed a complete cream world with cream rivers, cream mountains and cream trees, were targeted at kids watching cartoon channels. In April 2005, Sunfeast launched its major campaign. It signed on Hindi film actor, Shah Rukh Khan as its brand ambassador.

"ALTHOUGH SUNFEAST'S SHAH RUKH KHAN ASSOCIATION IS INTERESTING, IT IS YET TO DO SOMETHING GROUNDBREAKINGuuuu

AD THRUST .In August 2003, a month after its launch, the company undertook a major sampling exercise to promote the product. For two years then, the brand did all the usual rounds -- riding behind buses, blocking television spots, booking that corner space in your favourite newspaper and so on.

DISTRIBUTION MAZEIn this regard, Sunfeast has been fortunate: thanks to its tobacco business, ITC already had a good understanding of distribution channels. The company says the brand is now available in nearly 1.8 million outlets

MAIN COMPETITORS

PRODUCTSGLUCOSE MARIE BUTTERBITE AND CREAM

COMPETITORSPARLE, BRITANNIA AND HORLICKS BRITANNIA AND BISK FARM PRIYA GOLD, ANMOL, BRITANNIA AND PARLE

PRICING MODELS AS COMPARE TO ITS COMPETITORSuuuu..Essentially, Parle plays a high volume, low margin game. But Sunfeast look at a two-pronged strategy, High margins in cream variants and volumes from the Marie and Glucose segments. For instance, cream biscuits from Sunfeast cost Rs 10 for 100 grams. Parle, however, only charges Rs 5 for its cream variants. Except for Hide & Seek, all of Parle's products lie in the price range between Rs 4 and Rs 6 for 100 gram packs.

MARKET SHARE OF SUNFEASTSays Mr Ravi Naware chief executive of itc foods , "Seven per cent in less than three years is something that we could have only dreamt about."According to the AC Nielsen retail sales audit in March 2006, both Britannia and Parle have lost volumes. Britannia's shares have dropped from 35.8 per cent in 2004-05 to 30.5 per cent in May 2006 (volumes). Parle's shares have also dropped from 42.2 to 38.4 per cent in the same period. Even Priya Gold has seen a minor dip from 6.4 per cent to 5 per cent. ITC's Sunfeast has been a big gainer with its share increasing from 2.7 to 6.7 per cent.

MASCOT

ABOUT SUNFEAST LOGO

SUN SHOWS REACHNESS, NECESSITY, ENERGY.

SMILE IS FOR CUSTOMER SATISFACTION, TARGET SEGMENT

STRATEGIESITC CAMPAIGN TO SCHOOLu..

IN a bid to reinforce its brand on kids, ITC Foods Ltd will soon cover more than 1000 schools across the country as part of its Sunfeast school programme. Sunfeast learnings corroborate the fact that brands register better among kids compared to adults. "The objective was to build salience for the brand and familiarise the kids with the Sunfeast brand world and the Sunfeast mascot. This mascot has been successful with kids since they all enjoy interaction with the mascot. The Sunfeast school programme focuses on building the children's creativity through an opportunity to paint and win prizes. The interest in such programmes are introduced by leveraging the Sunfeast mascot and by conducting magic shows. The Sunfeast mascot is an animated figure of the Sun suggesting contentment, satisfaction and pleasure one would derive from the biscuits.

IMPORTANT FACTORS

CREDIT SYSTEMS

MARGINS

PROMOTIONS

FOOD

STOCK OUTS

DISTRIBUTION CHANNELS

WASTAGES

DISTRIBUTION CHANNEL

CONCLUSIONFood products are normally a high volume ball game. Products have to essentially be available in the market at all given points of time and at all given points of purchase. The skeleton of distribution system is same for all the companies but it depends on efficient sales and distribution system of a firm how well they manages them ITC done very well in this case

PRIYANKA CHAUHAN SHRUTI GAUR ARTI GURU ARUN KUMAR YASHANK GOEL