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 industry

. In 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 biscuit RANGE WAS LAUNCHED……..

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 biscuit

Sunfeast orange marie

Sunfeast marie light

Sunfeast orange cream

Sunfeast butterscotch cream

Sunfeast bourbon cream

STP of SunfeastBiscuit Segmenting Targeting Pricing

Sunfeast glucose biscuit

Natural goodness of wheat

Children between the age group 4-14 yrs

100gms - Rs. 4, 75gms - Rs 3, 19gms - Rs. 1

Sunfeast orange marie

A very differentiate offering Housewives 200gms - Rs. 13

Sunfeast marie lightTight and Crispy

Children between the age group 4-14 yrs

200gms - Rs. 13, 400gms - Rs.24

Sunfeast orange cream Smooth and yummy

Cream

Children between the age group 4-14 yrs 100gms - Rs.11

Sunfeast Butterscoth Cream Smooth and yummy

Cream

Children between the age group 4-14 yrs 100gms - Rs. 11

Sunfeast bourbon cream

Smooth and yummy Cream

Children between the age group 4-14 yrs 100gms - Rs12

Some other range of sunfeast

biscuit

Sunfeast Golden Bakery

Sunfeast 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 Dark Fantasy

Inspired by the Master Chefs of ITC hotels, it is the richest of chocolate vanilla biscuits. These biscuits are created using carefully chosen premium ingredients for a sensory experience unlike any other. Dark Fantasy is more than a biscuit, it’s a luxurious mix of aromatic cocoa and vanilla

Sunfeast Milky Magic

• Packed and nurturing of the child

Packed 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 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

Strawberry Cream

The first of its kind cream biscuit with special strawberry flavor crystals that will keep the creamy flavor linger on

A special delight for all those chocolate lovers

•The 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 at the launching time

The 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 [ Images ] as its

brand ambassador.

Promotion by advertisement

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 maze

In 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

PRODUCTS COMPETITORS

GLUCOSE PARLE, BRITANNIA AND HORLICKS

MARIE BRITANNIA AND BISK FARM

BUTTERBITE AND CREAM

PRIYA GOLD, ANMOL, BRITANNIA AND PARLE

Pricing models as compare to its competitors…………..

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 both 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.

Says 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.

Market Share of sunfeast

ABOUT SUNFEAST LOGO

SUN SHOWS REACHNESS, NECESSITY, ENERGY.

SMILE IS FOR CUSTOMER SATISFACTION, TARGET SEGMENT

LIGHT KHAO, LIGHT RAHO

IN a bid to reinforce its brand on kids, ITC Foods Ltd will soon cover more than 1,000 schools across the country as part of its Sunfeast school programme.

“Our learnings corroborate the fact that brands register better among kids compared to adults. Learnings from our biscuits track revealed that spontaneous recall of

Sunfeast among kids is about three times more than their mothers” says Mr. ravi naware chief executive of ITC food ltd.

"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," Mr Naware said. 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. ITC Foods has also introduced a similar below-the-line programme for its Candyman confectionary. The brand has used cartoon character Scooby Doo as a freebie with

every candy.

STRATEGIES

IMPORTANT FACTORS

FOOD

MARGINSCREDIT SYSTEMS

STOCK OUTS

WASTAGES

PROMOTIONS

DISTRIBUTION CHANNELS

Distribution Channel

Flow Diagram

FACTORY

C&F

WHOLESALE DISTRIBUTO

R

WHOLESALE DEALER

BASE

RETAILER

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…

Any questions pls..

SHRUTI GAUR

ARTI GURU

ARUN KUMAR

YASHANK GOEL

THANKING YOU & REGARDS