Fortune Institute of International Business

Individual Assignment Branding Strategy

On ITC

POST GRADUATE DIPLOMA IN MANAGEMENT

SECOND YEAR MANAGEMENT STUDENT

Under the Guidance of:

Dr. Kokil Jain

Submitted by
Ankit Gupta
21PGDM056

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 Table of Content

Sr No. Topic Page No.

1 Brand Architecture 3

2 ITC BRAND EXPANSION JOURNEY 5

3 7
ITC CURRENT BRAND
ARCHITECTURE IN EXISTING
MARKETS DYNAMICS

4 BRAND EXPANSION FOR ITC 8

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Brand architecture is a framework for organising brands, goods, and services to make them
easier for consumers to find and connect with. Customers may more quickly identify which
brands are related and at what degree by using this method to organise a brand portfolio.

Brand extension is a technique used by companies to increase their market share by creating
additional customer contact points, both digitally online and in physical storefronts. Both
emerging and established markets see brand growth.

Brand Architecture
Since each of ITC's products begins with the words "ITC," followed by the name of the product,
it obeys the principle of endorsed brands. Many other businesses, like Nestle and Cadbury's,
follow this phenomena. Its main industry sectors are FMCG, Hotels, Agribusiness, and Specialty
Boards. While it does so for other things, it doesn't disclose its name ITC on any of these
specialty boards. By using the example of personal care goods, we may assess the applicability
of its numerous brands under various product categories. Superia, which is the brand with the
lowest popularity, is followed by Fiama Di Wills, which is more popular than Vivel. ITC engages
in significant advertising to sell its brands. Due to the fact that it consistently delivers products
with improved qualities, it consistently believes in innovation. If we use the BCG matrix as our
reference, we can see that the hotel brand ITC Sonar is in the star stage, the brands for
stationary products like Classmate and Paperkraft are in the question mark stage, the FMCG
brands are in the cash cow stage, and the apparel brands, particularly Miss Players, in addition
to John Players and Wills lifestyle, are in the dogs stage. Ranveer Kapoor (John Players),
Deepika Padukone (Fiama Di Wills), and Katrina Kaif (Vivel) are just a some of the superstars
ITC uses to promote its products ( John Players).

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 CIGARETTES FOOD CANDY SNACKS BISCUITS
Kings Aashirvaad Candyman Bingo Sunfeast
Scissors Mint-O

Gold Flake

Wills

STATIONERY PERSONAL CARE INCENSE STICKS SAFETY MATCHES

Classmate Vivel Mangaldeep Aim
Colour Crew Engage Homelites

Paperkraft Fiama Di Wills

Brand Portfolio
ITC is one of the top ten most valuable (business) brands in India. It sells a variety of goods,
including hotels, packaged food and confectionery, clothing, personal care items, safety
matches, and cigarette brands. Speaking in detail it has the following brands in different
product categories:-
1)Personal Care-Essenza Di Wills, Fiama Di Wills, Vivel, Superia.
2)Apparels- John Players, Wills Lifestyle, Miss Players.
3)Foods- Aashirvad, Bingo, Sunfeast,Mint-o, Candyman.
4)Education and Stationary products- Classmate, Paperkraft.
5)Agarbattis and Safety matches-AIM, Mangaldeep.
6)Agri Business- Chaupal Sagar
7)Cigarettes-Classic,Insignia,India Kings,Gold Flake, silk Cut,Navy Cut,Capstan,Scissors,Flake.
8)Hotels-ITC Sonar.

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 ITC BRAND EXPANSION JOURNEY –
From the origin to the current brand architecture level.

History and Evolution

Established in 1910, ITC is a diversified conglomerate with businesses spanning Fast Moving
Consumer Goods to Hotels, Paperboards and Packaging. The full stops in the Company's name
were removed effective September 18, 2001. 'ITC' is no longer an acronym or an initialised form.

A Modest Beginning

The Company's headquarter building, Virginia House, would go on to become one of Kolkata's
most venerated landmarks. It celebrated its 16th birthday on August 24, 1926, by purchasing land
for Rs 310,000.

1925: Packaging and Printing: Backward Integration

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business. It is today India's most sophisticated packaging house.

1975: Entry into the Hospitality Sector - A 'Welcom' Move

In 1975, ITC launched its Hotels business with the acquisition of a hotel in Chennai. The objective
of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. It
recently took its first step toward international expansion with an upcoming super premium luxury
hotel in Colombo, Sri Lanka.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited. In 2002, this division merged with the Company's Tribeni Tissues Division to form
the Paperboards & Specialty Papers Division. The division has made an immense contribution to
the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. ITC
acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO),
near Coimbatore, Tamil Nadu.

In 1990, ITC set up the Agri Business Division for export of agri-commodities. In 2002, the
Bhadrachalam Paperboards Division was merged to form the Paperboards & Specialty Papers

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Division. The e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh and now
covers over 4 million farmers. The merged entity was named the Tribeni Tissues Division (TTD).

ITC's foray into the Foods business is an outstanding example of successfully blending multiple
internal competencies to create a new driver of business growth. In 2000, ITC spun off its
information technology business into a wholly owned subsidiary - ITC Infotech India Limited. The
Company entered the Fruit-based juices and beverages market with the launch of B Natural Fruit
beverages in January 2015. ITC entered the fast growing branded snacks category with Bingo! in
2007.

Fabelle chocolates are ITC's premier offering in the luxury chocolate space. In 2002, ITC's
philosophy of contributing to enhancing the competitiveness of the entire value chain found yet
another expression in the Safety Matches initiative. In just over a decade and a half, the Foods
business has grown to a significant size under numerous distinctive brands, with an enviable
distribution reach, a rapidly growing market share and a solid market standing.
In 2010, ITC launched its handrolled cigar, Armenteros, in the Indian market.

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 ITC CURRENT BRAND ARCHITECTURE IN EXISTING MARKETS DYNAMICS

Cigarettes was the larger category in the Indian tobacco sector, in 2021. ITC Limited was the
leading company in cigarette sector. Sales volumes are forecast to register decline over the coming
decade as the impact of rising prices and increased restrictions will take its toll. Consumer sector
reports cover the following eight distribution channels: cash & carries and warehouse clubs,
convenience stores, department stores, e-retailers, hypermarkets & supermarkets, tobacco
specialists, vending machines, and other general retailers. Provides analysis on per capita
expenditure of tobacco in India, by category, compared to the regional and global markets. The
report covers the impact of policies and regulation on tobacco sector in India.

Macroeconomic analysis provides an outlook on macroeconomic indicators in India, with a detailed

summary of the economy, labor market, and demographics.
Exchange rates used to convert local currency to US dollars are annual average floating exchange
rates.

Cigarettes-to-hotels conglomerate ITC Ltd has undertaken an "extensive strategy reset" that will
power the company's next phase of growth. The strategy reset covers multiple sectors in which the
company operates including—agriculture, consumer goods, paper and packaging as well as
hospitality.
ITC will pull back from businesses not in sync with ITC's future growth ambition. Business
segments that were incongruent to our growth aspirations, such as the Lifestyle Retailing Business,
have shrunk. ITC set ambitious targets to turn its FMCG brands into Rs1 lakh crore business over
the span of this decade. It has a portfolio of 25 consumer-centric brands in India. ITC India's
Savlon and Nimyle brands have grown 13x and 4x, respectively, since their acquisition. Aashirvaad
offers a larger play in staples and also addresses value-added adjacencies such as organic atta and
pulses. ITC's biscuit brand Sunfeast recorded consumer spends of over ₹4,000 crore last fiscal.

Scope
 The top distribution route for cigarettes was tobacco experts.

 ITC Limited was the industry leader for cigarettes.

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  In comparison to regional and worldwide levels, India's per capita tobacco spending was
lower in 2021.

 Men were more likely than women in India to smoke.

Reasons to Buy
 Get a detailed understanding of consumption to align your sales and marketing efforts with
the latest trends in the market.
 Identify the areas of growth and opportunities, which will aid effective marketing planning.
 Understand the market dynamics and essential data to benchmark your position and to
identify where to compete in the future.

BRAND EXPANSION FOR ITC

They can expand in :

• Classmate Inks and Water Colours.
• Sunfeast Sugar free biscuits
• Chewing Gum
• Sunfeast Breads
• Diary Products
• Health items like Oats