ITC SUNFEAST Abhishek pal (11061) Arun thomas (11066) Bhupendra Yadav (11071) Divya Mendiratta (11076) Harsh Vikram Singh (11081)

Salient Facts India is the third largest biscuit manufacturing country Estimated annual turnover is around INR 65.0 billion The organized sector 65% unorganized sector 35% Urban market penetration– % Urban market penetration– % Rural market penetration – % Rural market penetration – %

ITC PRODUCTS

Reason for Entry into Biscuits  Food segment is Rs.50,000 cr  Increasing at the rate of %  6% is FMCG (Branded and packaged)  India will have more organized and branded food product categories. It will cause a dual effect: Increase of in base of biscuit segment and Increase in % of branded food categories

 Innovation Research revealed that this category had gaps which could be ITC’s biggest point of attack. ITC launched Sunfeast with 6 ranges in Consumers were waiting for something new and fresh.  Good Distribution network  A Biscuit consumer is willing to pay more only when he sees a clearly differentiated product. So,sunfeast follwed different pricing strategies for its innovative products.

Competitor’s Analysis The major Competitors are  Britannia 90% of annual revenue comes from the biscuits Wide range of biscuits Good distribution network of around 3 million stores  Parle Oldest and largest selling brand in glucose segment (70% share in glucose segment) Low price range of biscuits Plays with high volume and low profit margin

 Other competitors Priya gold Pepsi Co’s Aliva Cadbury’s Oreo

BiscuitsParleBritanniaSunfeastRange CreamCream Gold Cream Treat Sunfeast Special, Dream Cream Rs. 10, Rs MilkMilk ShaktiMilk BikisMilky MagicRs. 10 Butter Cookies20-20GoodDayButter CookiesRs. 10 – 11 Dry Fruits & Nuts Cashew, Badam, Pista Golden BakeryRs SnacksKrackjack, Monaco TimepassSweet ‘n’ Salt, Snacky Rs GlucoseParle-GTigerSunfeast GlucoseRs. 4-5 Marie Marie GoldMarie Light, Marie Light Oats Rs PremiumHide & Seek Milano Pure MagicDark FantasyRs

Sales & Distribution  Leveraging its Tobacco Distribution network As much as half the tobacco retailers carry confectionery and about 300,000 stocks biscuits.  Uses FIFO method to reduce the wastage of goods  Company collects all the expired goods four times a year and destroys them.  Availability of brand in nearly 1.8 million stores

4P’s OF SUNFEAST Products:- Sunfeast glucose Sunfeast marie light Sunfeast dream cream Sunfeast dark fantasy Sunfeast snacky Sunfeast sweet n salt, nice Sunfeast special Sunfeast benne vita flaxseed biscuits

4p’s of sunfeast Place:- Distribution network:- The company used its existing network of convenience stores: the company’s name for the hole-in-the-wall pan-beedi shops for Sunfeast. The company also looked at grocery stores and other retail formats. The company says the brand is now available in nearly 1.8 million outlets.

4p’s of sunfeast Manufacturing units:- 14 manufacturing units The company has extended its manufacturing capacity by setting up three new biscuit plants in UP and West Bengal to focus on supply chain management strategy to enhance product freshness, market servicing and margins

4p’s of sunfeast Promotions:- Advertisements & promotions: 35-40% of turnover Sunfeast school programme: cover 1000 schools across country, to familiarize children with sunfeast brand name and sunfeast mascot. Brand ambassador: shahrukh khan & surya (south actor) Official sponsor of WTA tennis championship-sunfeast open. Launch of Sachin’s Fit Kit, the first product co-created with brand ambassador. Other activities: On buses, print media, hoardings, TV and radio advertisements

4p’s of sunfeast Price:- Sunfeast look at a two prolonged strategy:- High margin & High volume (High margins in cream variants and volumes from the Marie and Glucose segments) examples- sunfeast glucose (200 gm): 20/- sunfeast marie light (130gm : 10/- Sunfeast dream cream (82): 10/-

STP SEGMENTATON Demographic segmentation: Age and Life cycle stage: Sunfeast Glucose Biscuits : children between the age group 4 – 14 years and their mothers Sunfeast Orange Cream, Sunfeast Butterscotch Cream & Sunfeast Bourbon Cream : Children Income: Economy: Glucose, Milky, Special, Special Cream Medium : Golden Bakery, Treat Premium : Dark Fantasy

Psychographic Segmentation: Life Style: Sunfeast Marie & Orange marie Light is directed as Light & Crispy biscuit targeting housewives. Sunfeast Snacky is directed as light and crispy biscuit targeted for family members especially for having snacks. Behavioural Segment: Benefit: Sunfeast Benne Vita Flaxseed Biscuits: People who are very health conscious.

TARGETING Glucose biscuitsChildren between the age group 4-14 years &mothers Cream biscuitsChildren and youngsters Dark fantasyTeen and youth Marie lightHousewives and adults POSITIONING Marie Light:Tea-time biscuit Sunfeast Milky Magic: Nutritious biscuit for children Sunfeast Benne Vita Flaxseed: Healthy biscuit Dark Fantasy: Premium biscuit Sunfeast Snacky: Family biscuit Golden Bakery: Rich biscuit

SWOT ANALYSIS STRENGTHS WEAKNESS  Brand name.  Distribution network.  Wide range of innovative products.  Active involvement of master chefs’ in. innovating new verities of biscuits.  ITC’s competitive advantage procurement of commodities.  Less penetration in some cities and town.  Still dependent on tobacco business for revenues.

OPPORTUNITIES THREATS  Scope of Increasing market share as:-  Total production of biscuits in India is estimated to be around 30 lakh MT.  The biscuit industry is estimated to grow over 15-17% in the next few years.  In the mid to premium category, there are several taste buckets and categories available on the health & nutrition, indulgence and convenience platforms. “In these three platforms there is still a lot to be exploited. It is possible to innovate around that.  Competition from other organized sector.  Entry of global players like kraft food ltd and Mc Vitte.

ANSOFF MODEL CURRENT PRODUCTNEW PRODUCT 1.MARKET PENETRATION (Intensive Growth) 3. MARKET DEVELOPMENT (Intensive Growth) Attract users of competitor’s products. By offers like 28% extra or 10 off. Increase Product Usage. Increase the frequency of purchase. Making small packages available of glucose biscuits starting from 1. Product line Extension. Sunfeast Snacky. Sunfeast Marie Oats. New product development Golden bakery range of Cookies Wafers for economy segment(suggestion) CURRENT MARKET

ANSOFF MODEL CURRENT PRODUCTNEW PRODUCT 1.MARKET DEVELOPMENT (Intensive Growth) 3. DIVERSIFICATION Expand geographically Going global (long run suggestion) Target new segments. Providing Marie Lite at tea lounge. Related Sunfeast Dietary supplement in neutraceutical segment Unrelated Sunfeast Yippie (Horizontal diversification) NEW MARKET INTEGRATED GROWTH Backward Integration Procurement of raw material (Like Wheat) from E-CHOUPAL.

SUGGESTIONS  For targeting to the new segment, Sunfeast can have collaboration with certain tea companies which are venturing into tea lounge (wagh bakri) or existing companies like Barney’s coffee and tea lounges.  Extend their cookies segment by introducing new & different flavours and making them available in Gift packs for occasions and festivals.  Sunfeast can enter into neutraceutical market by launching a different line of biscuits for medical patients who are mainly dependent on dietary products like threptin (tasteless) or glucose biscuits. Moreover, India’s nutritional supplement market is expected to more than double in the next four years at over Rs9,500 cr where Sunfeast can become the market leader and enjoy high margins.