Marketing strategies of ITC

 

•Cigarettes: Eg., Gold Flake Kings, Gold Flake Premium.•Foods: eg., Kitchens of India, Ashirvaad,Minto,Sunfeast.•Apparel: eg.,(Wills Lifestyle and John Players brands);•Personal care: eg., (Fiama di Wills, Vivel; Essenza di Wills, •Stationery: (Classmate and Paperkraft brands)•Safety Matches and Agarbattis

ITC

Analyzing Segment Attractiveness(Porter’s 5 forces)

Bargaining power of consumers

There are a large number of buyers relative to the number of firms in this industry. Therefore, companies like Bingo must continuously market their product and differentiate their brands against competitors, in order to increase sales and market share.

Switching cost is low for the consumer, and may occur frequently depending on consumer preference and other factors affecting consumer buying decision.

Since it an impulse driven market customer loyalty is low.

Industry Attractiveness (Porter’s 5 forces)

Hence, bargaining power of consumers is high.

Bargaining power of suppliers

There are many suppliers in this industry. In essence, there is very little differentiation among the suppliers which makes suppliers\' bargaining power non-existent.

Conglomerates such as ITC have a definite advantage and power over their suppliers. These suppliers become dependent on these firms as their means to survival.

Industry Attractiveness (Porter’s 5 forces)

Hence, the bargaining power of suppliers is low.

Threat of substitutes.

With so many alternatives available in the market and the customer loyalty being low for an impulse driven market the buyers\' propensity to substitute is high.

Consumers are likely to substitute due to price, flavour fatigue and want to try something new.

Industry Attractiveness (Porter’s 5 forces)

Hence, the threat of substitutes is high.

Industry Attractiveness (Porter’s 5 forces)

Threat of new entry:  Entry and Exit barrier being low therefore a lot of players in the market, so players have wafer thin market shares

A vast unorganized market, therefore lots of small regional players

Abundance of raw material and no special technology required

Hence, the threat of new entrants is high.

Competitive Rivalry

The rivalry among existing competitors in the snack is very high. Large firms such as ITC and Pepsico are constantly looking at opportunities to expanded their reach and get a larger chunk of market share.

Competition is fierce in the snack industry and those who dominate or lead the market do so with high capital expenditures, aggressive sales and marketing strategies, and strong brand identity.

Industry Attractiveness (Porter’s 5 forces)

Hence, the threat of competitive rivalry is high.

Understanding The

Market Structure

Marketing Strategy adopted by Bingo

(The Market Challenger)

 Product strategy  Bingo positioned itself as chips with an Indian twist. The 16 flavors introduced at launch were carefully developed through R&D.

The initial offerings were a mix of potato chips and finger snacks.

The Potato chips segment includes variants like masala, salted, tomato inspired by the snacking habits of the Indian consumer

The offerings under Finger Snacks include the pakoda inspired ‘Live Wires’ and Khakra inspired ‘Mad Angles’

These offerings were further differentiated by providing SKU’s at Rs. 5, Rs.10 and Rs. 20

Marketing Strategy of Bingo

Pricing strategy

  The main objective for ITC was to compete effectively with players who were already there. Hence, it launched a direct frontal attack by introducing similar priced SKU’s.

ITC already enjoyed cost advantage over competitors through its e-choupal initiative. This also facilitated timely supply of raw materials.

ITC’s printing and packaging business also lead to high-quality, cost-effective and innovative packaging.

Marketing Strategy of Bingo

Promotional strategy

  Bingo was strategically launched at the time of world cup to cash in on the popularity of snacks among the cricket lovers of the country.

The advertising strategy revolved around slapstick humor and irrelevant themes to hold eyeballs, garner attention and interest, and stand out from the clutter.

ITC booked 10 to 15 spots per channel per day, 20 spots on radio stations supported by 1000’s of hoardings advertising the product. According to industry estimates, the total advertising spend in the initial 6 months were roughly 100 crores.

While its competitor Fritolay focuses on celebrity endorsements, Bingo chose a different route. It didn’t have an ambassador!

As the product is aimed at the youth, digital media was heavily used. For instance, the Bingo National Gaming Championship across 4 cities with more than 25,000 participants

Bingeonbingo.com and Mad Angles Twister Application (Facebook) were other initiatives in online media.

Marketing Strategy of Bingo

Distribution strategy

ITC already had a well-established distribution network through its cigarette and tobacco-related offerings which was leveraged in case of Bingo.

Further, the company distributed 4 lakh racks across all retailers to display the brand at all Points-of-sale.

Within 6 months, Bingo was available across 2,50,000 retailers across the country.

A crucial alliance with Future group which lead to all future group retail outlets like Big Bazaar, Food Bazaar stocking only ITC”s Bingo

HORECA (Hotels, Restaurants and Cafes), Local betel shops are all being used to distribute Bingo to a wide range of audiences

Marketing Strategy of Bingo

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