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Swot and STP

ITC has strengths in leveraging its existing businesses and expertise to develop new brands. However, it still relies heavily on tobacco revenues which accounts for 47% of its turnover. ITC operates in many sectors including FMCG, IT, agriculture, and has opportunities to expand existing brands and move into new sectors. However, it faces threats from growing domestic and international competition in a dynamic market.

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Ashish Nimodia
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406 views3 pages

Swot and STP

ITC has strengths in leveraging its existing businesses and expertise to develop new brands. However, it still relies heavily on tobacco revenues which accounts for 47% of its turnover. ITC operates in many sectors including FMCG, IT, agriculture, and has opportunities to expand existing brands and move into new sectors. However, it faces threats from growing domestic and international competition in a dynamic market.

Uploaded by

Ashish Nimodia
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Itc swot

Strengths
ITC leveraged it traditional businesses to develop new brands for new segments. For
example, ITC used its experience of transporting and distributing tobacco products to remote and
distant parts of India to the advantage of its FMCG products. ITC master chefs from its hotel chain are
often asked to develop new food concepts for its FMCG business.
ITC is a diversified company trading in a number of business sectors including cigarettes, hotels,
paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings
cards, Information Technology, safety matches, incense sticks and stationery.

Weaknesses
The company's original business was traded in tobacco. ITC stands for Imperial Tobacco Company of
India Limited. It is interesting that a business that is now so involved in branding continues to use its
original name, despite the negative connection of tobacco with poor health and premature death.

To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco revenues.
Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80%
of its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is
being subsidised by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand
in India - and this single brand alone hold 70% of the tobacco market.

Opportunities
Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be developed using
strategies of market development, product development and marketing penetration.

ITC is moving into new and emerging sectors including Information Technology, supporting business
solutions.

e-Choupal is a community of practice that links rural Indian farmers using the Internet. This is an
original and well thought of initiative that could be used in other sectors in many other parts of the
world. It is also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages.
Take a look at eChoupal here http://www.itcportal.com/agri_exports/e-choupal_new.htm

ITC leverages e-Choupal in a novel way. The company researched the tastes of consumers in the
North, West and East of India of atta (a popular type of wheat flour), then used the network to source
and create the raw materials from farmers and then blend them for consumers under purposeful
brand names such as Aashirvaad Select in the Northern market, Aashirvaad MP Chakki in the
Western market and Aashirvaad in the Eastern market. This concept is tremendously difficult for
competitors to emulate.

Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate into the country's
premier FMCG business.
Per capita consumption of personal care products in India is the lowest in the world offering an
opportunity for ITC's soaps, shampoos and fragrances under their Wills brand.

Threats
The obvious threat is from competition, both domestic and international. The laws of economics
dictate that if competitors see that there is a solid profit to be made in an emerging consumer society
that ultimately new products and services will be made available. Western companies will see India as
an exciting opportunity for themselves to find new market segments for their own offerings.

ITC's opportunities are likely to be opportunities for other companies as well. Therefore the dynamic
of competition will alter in the medium-term. Then ITC will need to decide whether being a diversified
conglomerate is the most competitive strategic formation for a secure future.

TC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India
Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre
of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by
purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for
the sum of Rs 310,000. Read more...

KEY TO SUCCESS: A RIGHT STP

SEGMENTING: ITC was already there in the

food industry with Atta and Salt under the banner of

Aashirvaad. Thus to increase its pie in the food

industry it went to fill the gap in the branded biscuit

segment when it find that there is still a need for

varied taste biscuits and innovation , this all after

doing an extensive research on the industry trends.

Since, the food industry is a large volume business;

Sunfeast was categorized for the mass market and

the middle class. But now they are also looking at

niche market with high quality products

like

Sunfeast Dark Fantasy


 Positioning:- connotes happiness,

contentment, satisfaction and pleasure one would

derive from great tasting and high quality biscuits ,endorsed by srk and it makes coz target
customers were mainly kids

target:- housewives and families

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