MARKETING MANAGEMENT – FUNDAMENTALS

ASSIGNMENT

VIT BUSINESS SCHOOL CHENNAI

PROF SAJU B S

SUBMITTED BY
KRISHNAVENI.K
19MBA1004
 SUN FEAST-ITC

Introduction:

ITC is one of India’s foremost private sector company which came in existence in 1970
headquartered in Kolkata. In July 2003, the famous ITC group ventured into biscuits markets with the
introduction of Sun feast range of biscuits. Sun feast was launched nationally in phases in over one
million retail outlets across the country. Sun feast range of biscuits is priced competitively and new
product innovations are made.

Industry analysis:

The industry consists of:

1. Major Players: - Parle, Britannia, ITC

2. Minor Players: - Surya Biscuits Pvt Ltd, Priya gold, Anmol

3. Emerging Players: - Cadbury, Oreo, PepsiCo” protein rich” Aliva launched in 2009

4. Foreign Niche Players: - United Biscuits (Britain), danone (French food giant), Unibic (tied up with
food bazaar launched tasty treat).

Target Segments:

 Sun feast glucose biscuit, orange cream, butterscotch cream, bourbon cream are targeted
with children between the age group 4-14 years.
 Sun feast marie light, orange marie are targeted between house wives and old age groups.

Value Proposition:

 Sun Feast glucose- Natural goodness of wheat

  Sun feast orange marie- Avery differentiate offering.
 Sun feast marie light- Tight and crispy.
 Sun feast orange cream- Smooth and yummy cream.

Positioning:

 “Sun feast” – the umbrella brand name introduced in the Glucose, Marie and Cream
segments.
 “Sun” mascot- the brand ambassador reinforcing the positioning of the brand “Spread the
Smile”.
 “Sun feast” with the Brand Essence “Spread the Smile” connotes happiness, contentment,
satisfaction and pleasure one would derive from great tasting and high-quality biscuits. The
brand positioning and imaginery is reinforced by the Sun mascot conveying the emotional
and gratifying aspects of the product.

Consumer Behavior Analysis:

 The analyses showed about 63% of people prefer having Sun Feast Marie and Sun Feast
Dream Cream is being preferred only by 25% of the consumers.
 The products like Sun Feast Special, Sweet n Salt, and Golden Bakery are not that much
appreciated as only 13% of people prefer them.
 In dream cream Butterscotch, Orange and Bourbon are equally appreciated.
 90% people prefer having Marie lite over Orange Marie and the product is not consumed by
old but almost people of all age groups.
 63% prefer Sun Feast because of its Taste and Flavor while 25% likes them because of
packaging, price and quality.
 People also appreciated it about because of availability of large variety.
 It was also observed from the survey, that the products were regularly by the customers,
most of them going for weekly and fortnightly purchase of the product.
 The major competitors for the product are Parle and Britannia which were even a threat
when the product was launched.
 The brand loyalty seems to very weak as when consumers were asked that they would
continue to consume Sun Feast even if other products were at a discount, the answer came
as No. The people were specific in the categories but not with brand Sun Feast.
 The television seems to be most effective form of advertisement as it spread awareness in
almost all age group and was the major promotional tool.

Market share, Sales and Profit:

 ITC is the largest player in creams with an estimated market share of around 26%.
 Net sales of the company rose by 5.31% to Rs.11,871.47 crore in Q2FY20 as against
Rs,11,272.51 crore in Q2FY20.
 Fast Moving Consumer Goods (FMCG) major ITC reports that 36.16% year-on-year growth in
its standalone net profit at Rs.4,023.10 crore for the second quarter ended September
30,2019.
Product strategy:

 Attracts the all kind of consumer.

 Targets the consumer right from the upper level to lower income group.
 Provides high quality product with a nominal price.
 Packaging: Flashy colors on packet – combination of orange, yellow, red and brown.

Pricing strategy:

There is two method of Pricing:

 Low Margin
 Two-Pronged Strategy
 Essentially, Parle plays a high volume, low margin game.
 But Sun feast 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
sun feast cost Rs.10 for 100gms.

Promotional Strategy:

 Sun Feast school program covers 1000 schools across country to familiarize children with sun
Feast brand name and Sun Feast mascot.
 Official sponsor of WTA Tennis Championship –Sun feast open.
 Launch of Sachin’s fit kit. The first product co-created with brand ambassador Sharukh Khan.
Distribution:

 Sun feast has been able to penetrate deeply in the rural as well as urban Indian market
because of the well-established distribution channel provided by its parent company ITC.
 The penetrative delivery and supply network has been established with extreme efficiency
and care.
 Sun feast has been expanding its distribution channel to small villages and towns besides the
cities.

Competitors:

Products Competitors

1. Sun feast Glucose - Parle, Britannia and Horlicks

2. Sun feast Marie – Britannia and Brisk Farm
3. Sun feast Butterscotch and Cream – Priya Gold, Anmol, Britannia and Anmol.

Challenges:

 Brand is only pushed by advertising and packaging.

 The company has not created a momentum due to which the brand will expire if advertising
is not done continuously.

Marketing Insights:

 Premium
 Sensuous
 Aspiring Product
 Versatile

Recommendation for Growth:

 Sun feast has to give attention towards advertisement.

 Sun feast has to maintain its status by providing more and more facilities.
 Sun feast has to develop more variety of biscuit so that the customer could not return in
case of lack of choice.
 The company should also give emphasis on another gift scheme.