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AN INTERIM REPORT
2023-2025

On
EXPLORING MARKET DYNAMICS AND ENHANCING
SALES STRATEGIES OF JUICES

By
MUSKAN JAIN
23BSPHH01C1016

AT

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EXPLORING MARKET DYNAMICS AND ENHANCING SALES
STRATEGIES OF JUICES

By
MUSKAN JAIN
23BSPHH01C1016

ITC LIMITED
Hyderabad

A report submitted in partial fulfilment of the requirements of MBA program of

IBS Hyderabad.

Company Guide Faculty Guide

Mr. Venkat Shri Ram Dr. Anita
Manager IBS Hyderabad
ITC Hyderabad

11th MAY,2023

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 AUTHORISATION

I, Muskan Jain, here by state that this project work entitled “Exploring Market
Dynamics and Enhancing Sales Strategies at ITC FMCG Juices ” is an original
piece of work done and submitted by me towards partial fulfilment of the
requirement of MBA program of IBS HYDERABAD. The findings and
conclusions expressed in this report are genuine and for academic purpose. It is our
own and it has neither been submitted nor published anywhere before any
resemblance to earlier project or research work and is purely coincidental. It is
totally based on our field work and creativity.

Muskan Jain
23BSPHH01C1016.
MBA (2023-2025).
IBS Hyderabad.

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 ACKNOWLEDGEMENT

Today I decide to live with appreciation for the love that makes me exuberantly pleased, the
harmony that rests inside my soul, and the voice of trust that expresses everything is
conceivable. The fulfilment, which goes with the fruitful finish of any undertaking, is
fragmented without the notice of names of those individuals who made it conceivable, on the
grounds that achievement is exemplification of difficult work, persistence, energy, assurance
and the most uplifting direction and exhortation which fills in as a guide of light and crowns
our endeavors with progress. Consequently, it becomes basic to express gratitude toward
them by recognizing their significant sources of info.

I wish to express my gratitude to ITC Limited, Hyderabad, for giving me an opportunity to

be a part of their esteemed organization and enhance my knowledge by granting permission
to do summer training project under their guidance.

I am extremely obliged to, Mr. for providing me a platform

where I have gathered sufficient knowledge which will be useful throughout my life.

A special thanks to my faculty guide Dr. Purna Prabhakar Sir who has been the chief
facilitator of this project and given suggestions & guidelines from time to time. He has
ensured an absolute convenience and support from the college’s end.

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 DECLARATION

I here declare that the project report entitled “Exploring

Market Dynamics and
Enhancing Sales Strategies at ITC FMCG Juices.” has been completed successfully
and this project report submitted towards the partial fulfilment of the requirement the award of the
degree of “MASTER OF
BUSINESS ADMINISTRATION” in specialization of Marketing. This report has not been submitted to
any other university or institution for the award of degree.

Station: Hyderabad Muskan Jain

Date: 11th April 2023 Enrolment No: 23BSPHH01C1016

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 S.NO TITLE PAGE NO
- Authorization 3
- Acknowledgment 4
Abstract 7
1 Introduction – ITC Limited 8
2 Description of the project 9
3 History 10

4 Vision and Mission 10

5 Industry Analysis 11

5.1 Market Overview 11

5.2 Market Driver 11
5.3 Market Trend 12
5.4 Market Challenge 12
6 Key Deliverables 13
7 SWOT ANALYSIS 14
8 Main Text 15
9 Data Analysis and Interpretation 29

10 Company Overview 31

11.1 ITC ORDER FULFILMENT PROCESS 32

11.2 ITC Operation model 32
12 33
13 Digital platform for Distribution – STACK BOX 34
14 Findings And Suggestions 35
15 Conclusion 36
16 Value Addition to the Company 37
17 Annexure 38
18 References 39

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 ABSTRACT
As a part of the MBA curriculum with an intent of making the students industry ready and
helping them to get an exposure of the corporate world. I am doing my internship at ITC
Limited. As being new to the practical and corporate world, every hour spent in the
internship was a new learning and experience. This internship report highlights the
accumulation of the work that I have done till now as a part of the Summer Internship
Program.

ITC Ltd is one of India's foremost private sector companies. ITC has a diversified presence
in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agribusiness, Packaged
Foods & Confectionery, Information Technology, Branded Apparel, Personal Care,
Stationery, Safety Matches and other FMCG products

I joined ITC Limited on 27 rd February 2022. On my orientation day, I got acquainted with
my company guide Mr.Praveen Kumar & other superiors. At first, I was allocated the
project of going through the Distribution system of the company. Our guide explained the
workings of the department.
The project allotted to us “Exploring Market Dynamics and Enhancing Sales Strategies at
ITC FMCG Juices” is mainly talking about the important segment of the project Cross Dock
retail Distribution operations Maintained By Third party Hyundai Glovis Co., Ltd. is a logistics
company with technical support given by StackBox. We understood the activities done at Cross
Dock and D+1 Deliver model and associated with Delivery Boys, DLO. The project required
engaging with customers (Retailers) along with delivery boy and observe activities like how he
behaves with customers and what are the tactics and skills he employs while dealing with
distribution and monitoring his activities. Then we were asked to prepare a Deliver Boy Training
Module and explainer video which demonstrates the delivery process and App (StackBox) used
by Delivery boys.

The next stage of the project MFC Operations. We had an opportunity to visit Micro
fulfilment Center during night time where actual operations take place and observe all the
activities, we understood MFC inbound operations, warehouse operations, planning
palletizing and internal management activities.

Till now, I learned a lot about the workplace culture I not only received a great deal of
knowledge, but I also had the opportunity to practise my abilities in a professional
setting I've gained is the communication skills I've been taught through presentations,
discussions with supervisors, field experts, and other team members.

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 1. INTRODUCTION
ITC Limited is an Indian conglomerate company. ITC Limited diversified with businesses
spanning Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and
Cigars, Education & Stationery Products, Incense Sticks and Safety Matches; Hotels,
Paperboards and Packaging, Agri Business and Information Technology. The company has
13 businesses in 5 segments. It exports its products in 90 countries. Its products are available
in 7 million retail outlets its Products reaching over 200 million households in India. ITC
Has over 200+ Manufacturing Units, 113 Hotel Properties, 25+ World-class Indian Brands,
over 900 Patents Filed

The Company was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited. In 1925 Packaging & Printing Business was set up as a
strategic backward integration in recognition of the ITC's multi-business portfolio
encompassing a wide range of businesses, the full stops in the Company's name were
removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited,'
where 'ITC' is today no longer an acronym or an initialised form.

ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels,

Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its
businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and
Stationery. ITC’s wholly owned information technology subsidiary ITC Infotech India Ltd,
provides IT services and solutions to leading global customers.

ITC ranks among India’s 10 Most Valuable Brands published by economic times. ITC also
ranks among Asia’s 50 best performing companies compiled by Business Week. ITC
included in the Dow Jones Sustainability Emerging Markets Index. Sustained ‘AA’ rating by
MSCI for the 4th consecutive year. As one of India's most valuable and respected
corporations, ITC is widely perceived to be dedicatedly nation-oriented. "A Commitment
Beyond the Market” is source of inspiration. ITC believes that its aspiration to create
enduring value for the nation provides the motive force to sustain growing shareholder value.
ITC practices this philosophy by not only driving each of its businesses towards international
competitiveness but by also consciously contributing to enhancing the competitiveness of the
larger value chain.

ITC's diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched distribution
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 reach, superior brand-building capabilities, effective supply chain management and
acknowledged service skills..

SCOPE :

A substantial portion of ITC Limited's operations is in the FMCG (fast-moving consumer goods)
industry. An outline of the FMCG segment's scope at ITC is provided below:

Cigarettes: In the past, ITC has received a significant portion of its revenue from cigarettes. The
business is well-known in the tobacco sector and offers a large selection of cigarette brands that
appeal to various market niches.

Packaged Foods: ITC has advanced significantly in the market for packaged foods. It sells a wide
variety of food items under several names like Aashirvaad, Sunfeast, Bingo, Yippee!, and B
Natural. These include staples, snacks, biscuits, noodles, candy, and ready-to-eat meals.

Personal Care Products: Fiama Di Wills, Vivel, and Engage are just a few of the brands that ITC
has introduced into the personal care market.

Stationery: ITC targets the office and school markets with a broad selection of stationery products
sold under the "Classmate" brand. This include geometry boxes, notebooks, pens, and pencils,
among other relevant supplies.

Incense Sticks, also known as Agarbattis: ITC is a player in the agarbatti market with its
"Mangaldeep" brand. It provides a range of incense sticks for both domestic and religious use.

Education and Stationery Products: ITC offers educational products such as textbooks,
notebooks, and other stationery items under the "Classmate" brand.

Dairy and Frozen Foods: With goods like dairy whitener and frozen snacks, ITC has been
progressively growing its market share in the dairy and frozen foods sector .

LIMITATIONS :

1. Dependence on the accuracy and reliability of the collected data: The accuracy and reliability
of the collected data can impact the analysis and results. Therefore, it is necessary to ensure that
the data collected is accurate and reliable for a more comprehensive analysis.

2. Time constraints may limit the depth of analysis and scope of the project: Time constraints can
limit the depth of analysis and scope of the project. Therefore, it is necessary to analyze the data

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carefully within the time frame available.

3. The findings and analysis are restricted to the designated area in Hyderabad due to geographic
proximity: The findings and analysis are limited to the designated area in Hyderabad due to
geographic proximity. Therefore, any conclusions should be based on the data collected from this
area only.

4. Few of the outlets that were existing ITC customers were not able to align themselves with the
distributor: Some of the outlets that were existing ITC customers were not able to align
themselves with the distributor. Therefore, the data collected may not be representative of the
entire market.

5. Biasedness of the retailer also plays a role in wrong interpretation: Biased retailers may play a
role in the wrong interpretation of data. Therefore, it is essential to consider the retailer's bias
while analyzing the data.

6. Language barrier was an issue in some areas: In some areas, the language barrier was an issue.
Therefore, it is necessary to communicate effectively with the people to collect accurate data.

7. Advanced Technology was not being used: The use of advanced technology was not
implemented. Therefore, it is necessary to use advanced technology to collect and analyze data
for a more comprehensive analysis.

METHODOLOGY :

 Primary data is collected by doing market research, visiting outlets, and interacting with
retailers and delivery executives.
 To learn about the retailer's satisfaction levels, their feedback on the current
products, requirements, level of consumption, overall sales, usage of
competitors' products, if any, and suggestions for the brand and its products,
surveys have been conducted.
 The data gathered from journals, research papers, and other sources would be
considered secondary data. The obtained data will then be analysed, and the
conclusions will be interpreted.
 Based on the findings, formulate strategies to enhance sales performance, improve
product positioning, and refine marketing approaches
 Spend time shadowing the Direct Sales Executive (DS) during their visits to retail outlets.
Observe their interactions with customers, how orders are taken using the Vajra App, and
how pending bills are collected. This hands-on approach allows us to understand the
process thoroughly before actively participating.

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 2. INDUSTRY PROFILE

Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are products that
we use on a daily basis and need to replenish frequently. These goods have a short shelf life and
are sold in large quantities at a relatively low cost per unit. FMCG encompasses a wide range of
products across various categories, including household and personal care, food and beverages,
healthcare, and stationery and school supplies.

The FMCG industry focuses on selling a large volume of products at low prices per unit. Their
success relies on efficient production, distribution, and marketing strategies. Strong brands are
crucial for differentiation and customer loyalty in a competitive market. Companies invest
heavily in marketing and brand building to stay ahead of the curve. The FMCG industry is
constantly evolving, and companies need to innovate with new products, flavors, and packaging
to cater to changing consumer preferences.

The FMCG sector plays a vital role in economic growth by contributing significantly to a
country's GDP through production, employment, and tax revenue. Additionally, FMCG products
provide convenience, hygiene, and access to basic necessities, contributing to consumer welfare.
The industry also drives innovation in packaging, manufacturing, and marketing.

Rising disposable incomes, rapid urbanization, and changing lifestyles, coupled with government
initiatives focusing on agriculture, infrastructure development, and rural development, are
expected to positively impact FMCG consumption in both urban and rural areas.

The Indian FMCG market is expected to grow significantly, estimated to be worth approximately
₹18,891.48 billion as of 2024. The market is projected to reach a value of ₹106,344.64 billion by
2030, indicating significant growth potential. The total revenue of the FMCG market is expected
to grow at a CAGR of 27.9% from 2021 to 2027, reaching neaFast-Moving Consumer Goods
(FMCG), also known as Consumer Packaged Goods (CPG), are products that are consumed on a
daily basis and require frequent replenishment. These products usually have a short shelf life and
are sold in large quantities at a relatively low cost per unit. FMCG includes a wide range of items
that fall under various categories, such as household and personal care, food and beverages,
healthcare, and stationery and school supplies.

The FMCG industry aims to sell a high volume of products at a low cost per unit. Their success
relies on their ability to implement efficient production, distribution, and marketing strategies.
Building strong brands is essential for differentiation and customer loyalty in a fiercely
competitive market. Companies invest heavily in marketing and brand building to stay ahead in
the race. The FMCG industry is constantly evolving, and businesses need to innovate with new
products, flavors, and packaging to cater to the changing preferences of consumers.

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The FMCG sector plays a crucial role in the economic growth of a country by contributing
significantly to its GDP through production, employment, and tax revenue. Additionally, FMCG
products provide convenience, hygiene, and access to basic necessities, thereby contributing to
consumer welfare. The industry also drives innovation in packaging, manufacturing, and
marketing.

Rising disposable incomes, rapid urbanization, and changing lifestyles, coupled with government
initiatives focusing on agriculture, infrastructure development, and rural development, are
expected to have a positive impact on FMCG consumption in both urban and rural areas.

The Indian FMCG market is expected to witness significant growth and is estimated to be worth
approximately ₹18,891.48 billion as of 2024. The market is projected to reach a value of
₹106,344.64 billion by 2030, indicating significant growth potential. The total revenue of the
FMCG market is expected to grow at a CAGR of 27.9% from 2021 to 2027, reaching nearly US$
615.87 billion.rly US$ 615.87.

MARKET DRIVER

Rising Use of Advanced Technology in logistics To Drive Market Growth, Changing

Consumer Habits and Lifestyles Coupled with Rising Disposable Income to
Boost Market Growth, Emergence of Logistics Automation Coupled with Last-Mile
Deliveries. The growing preference for e-commerce and D+1 distribution is one of the key
drivers supporting the fast-moving consumer goods (FMCG) market growth. Fundamentally,
e-commerce platforms allow consumers to collect information and compare various food and
beverages, personal care, skincare, cosmetics, and hair care products available on the website.
Similarly, FMCG vendors also provide reviews of prior consumers on their products on their
official websites. This trend of sharing reviews and feedback on products through e-
commerce platforms influences the purchasing behavior of new consumers. Therefore, with
the growing trend of online retailing, the sales of FMCG products through online channels
are expected to increase globally during the period.

MARKET TREND
 New innovations and technology driven market. The rising consumption of ready-to-
eat food products is one of the key fast-moving consumer goods market trends fueling
the market growth.

 For instance, according to research issued in 2020 by Standard Process Inc., a US-
based food supplements firm, processed foods accounted for nearly 70% of the
American diet.

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SWOT ANALYSIS FOR FMCG INDUSTRY

STRENGTHS:
1. It has diversified product and service portfolio
2. Strong ties to the community and comprehension of customer demands
3. Existence of dependable distribution systems in both urban and rural locations
4. Maintaining operations with low cost

WEAKNESSES:

1. Less opportunity for technological investment and scalability, particularly in small

sectors.
2. Because of the intense rivalry in the FMCG business, ITC's market share growth is
sluggish.

OPPORTUNITIES:
1. Increase the presence in metropolitan locations while tapping rural markets.
2. Raising consumer demand by increasing purchasing power
3. More advertising for hotel chains will grow their market share.
THREATS:
1. Cigarette laws and regulations that are quite strict
2. intense and escalating competition between hotel chains and other FMCG enterprises
3. Fdi in retail thereby allowing international brands

POPULAR PLAYERS

1. Hindustan Unilever Limited (HUL):

HUL is a subsidiary of Unilever, one of the largest multinational consumer goods companies. It
offers a vast range of products such as personal care, home care, food, and beverages. Some of its
popular brands include Lux, Lifebuoy, Dove, Surf Excel, Rin, Knorr, and Lipton.

2. Nestlé India:
Nestlé is a Swiss multinational FMCG company with a significant presence in India. It

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manufactures and markets a diverse range of products including milk and nutrition products,
beverages, chocolates, and confectionery. Popular brands under Nestlé India include Maggi,
Nescafé, KitKat, Munch, and Cerelac.

3. Procter & Gamble (P&G):

P&G is a global FMCG giant with a strong presence in India. The company offers a wide array of
products across categories such as personal care, grooming, health care, and household care.
Some of its well-known brands in India include Ariel, Tide, Gillette, Head & Shoulders, Pantene,
and Pampers.

4. Patanjali Ayurved:
Patanjali is a rapidly growing FMCG company in India, known for its focus on Ayurvedic and
natural products. Founded by Baba Ramdev, the company offers a diverse range of products
including personal care, healthcare, food, and beverages. Some of its popular brands include
Patanjali Dant Kanti, Patanjali Kesh Kanti, and Patanjali Aloe Vera Gel.

5. Britannia Industries Limited:

Britannia is one of India's oldest and most trusted FMCG companies, primarily known for its
bakery and dairy products. The company offers a variety of biscuits, bread, cakes, and dairy
products under brands like Good Day, Tiger, Marie Gold, and NutriChoice.

6. Dabur India Limited:

Dabur is a leading FMCG company in India, specializing in natural healthcare and personal care
products. It offers a wide range of products including ayurvedic medicines, personal care, and
food products. Some of its popular brands include Dabur Chyawanprash, Dabur Honey, Vatika,
and Real Juices.

7. Marico Limited:
Marico is another prominent FMCG company in India, known for its focus on beauty and
wellness products. The company offers a range of products including hair care, skincare, edible
oils, and healthy foods. Popular brands under Marico include Parachute, Saffola, Livon, and Set
Wet.

8. ITC Limited: A diversified conglomerate with a strong FMCG presence in India, with popular
brands like Aashirvaad, Sunfeast, Bingo!, Yippee!, and Classmate.

PRICING STRATEGIES :

1.Cost-based pricing :
FMCG companies typically begin with cost-based pricing, in which the selling price is
determined by adding a markup to the production, distribution, and marketing costs. Although
this method offers a starting point, FMCG companies must make sure that the prices they set are
competitive in the market.
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2.Competitive Rates:
Because the FMCG industry is so fiercely competitive, businesses often track their rivals' pricing
tactics and modify their own rates accordingly. It is possible for them to establish prices that are
marginally higher, lower, or equal to those of their competitors depending on elements including
market positioning, brand perception, and product distinction.

3.Value-Based Pricing:
FMCG firms frequently use a market-oriented pricing approach, analyzing consumer demand,
preferences, and purchase patterns to establish the best possible price.

4. Promotional Startegy :
FMCG companies frequently employ promotional pricing strategies, such as discounts, coupons,
BOGO deals, and seasonal promotions, to increase sales and draw in customers. Holidays,
festivals, and other noteworthy occasions are frequently the carefully planned times for these
promotions in order to take advantage of higher customer spending and create talk about the
company.

5.Value-Added Pricing:
Value-based pricing is a strategy that FMCG companies may use to determine prices for their
products depending on how much customers think they are worth. This strategy considers
elements including the benefits to the customer, brand reputation, features, and product quality.
Products that are considered premium or specialty may fetch a higher price because of their
perceived worth.

2.2 INDUSTRY TREND:

The fast-moving consumer goods (FMCG) sector is the fourth-largest sector in India, and it has
been growing at a steady rate due to factors such as rising disposable income, an increasing youth
population, and growing brand awareness among consumers. The household and personal care
sectors account for 50% of FMCG sales in India, making it a crucial contributor to the country's
GDP. The Indian FMCG market is still on the rise because more people are climbing the
economic ladder and benefiting from economic progress. Moreover, with a median age of just 27,
India's population is becoming more consumerist due to rising ambitions. The government's
initiatives to increase financial inclusion and establish social safety nets have also played a crucial
role in this growth. The sector's growth has been driven by growing awareness, easier access, and
changing lifestyles. The urban segment accounts for around 65% of the revenue generated by the
FMCG sector in India. However, in recent years, the FMCG market has grown at a faster pace in
rural India compared to urban India. Semi-urban and rural segments are growing at a rapid pace,
with FMCG products accounting for 50% of the total rural spending. The FMCG market reached
US$ 167 billion as of 2023 and is expected to grow at a CAGR of 27.9% through 2021-27,
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reaching nearly US$ 615.87 billion. In 2022, the urban segment contributed 65%, whereas rural
India contributed more than 35% to the overall annual FMCG sales. Good harvest and
government spending are expected to aid rural demand recovery in FY24. The sector had grown
8.5% in revenues and 2.5% in volumes last fiscal year. In the January-June period of 2022, the
sector witnessed value growth of about 8.4% on account of price hikes due to inflationary
pressures. In Q2 2022, the FMCG sector clocked a value growth of 10.9% YoY, higher than the
6% YoY value growth seen in Q1. The Indian food processing market's size reached US$ 307.2
billion in 2022 and is expected to reach US$ 547.3 billion by 2028, exhibiting a growth rate
(CAGR) of 9.5% during 2023-2028. The market has grown exponentially over the past five years
due to an increase in internet and smartphone users, improved policy reforms, and a rise in
disposable income. Mobile wallets, internet banking, and debit/credit cards have become popular
among customers for making transactions on e-commerce platforms. As of 2021, there were 1.2
million daily e-commerce transactions. The total value of digital transactions stood at US$ 300
billion in 2021 and is projected to reach US$ 1 trillion by 2026.

MAIN TEXT

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 3.COMPANY OVERVIEW
ITC Limited is a renowned Indian conglomerate that has been in operation since 1910, initially as
the Imperial Tobacco Company of India Limited. With a market capitalization of over $40 billion
(as of my last update), the company has diversified its business portfolio over the years and now
operates in various sectors.

One of ITC's most significant business segments is FMCG, which is one of the largest in India. It
offers a wide range of products, including cigarettes, packaged foods, personal care products, and
lifestyle retailing. This segment's success can be attributed to the company's continuous
innovation, product quality, and effective marketing strategies, which have allowed ITC to
maintain a strong presence in the FMCG sector despite intense competition.

ITC is also a leader in the luxury hospitality sector, with its chain of hotels under the brand name
"ITC Hotels." These hotels are renowned for their luxury, grandeur, and impeccable service and
cater to both business and leisure travelers. With properties in key Indian cities and strategic
locations abroad, the hotel segment contributes substantially to ITC's revenue and brand image.
The company's paper and packaging segment is one of the leading producers of packaging and
printing paperboards in India, providing innovative packaging solutions to various industries,
including FMCG, pharmaceuticals, and consumer durables. The segment's focus on sustainability
and eco-friendly practices has seen steady growth and garnered praise for its quality and
reliability.

ITC's agri-business division focuses on agricultural commodities trading, sourcing, and exports.
The company works closely with farmers to improve agricultural practices, enhance productivity,
and ensure a sustainable supply chain. ITC's e-Choupal initiative, which leverages technology to
connect with rural farmers, has been instrumental in transforming India's agricultural landscape.

ITC's Information Technology segment provides IT solutions and services to businesses

worldwide, with a focus on digital transformation, cloud computing, and cybersecurity. The
company's expertise in technology coupled with its strong R&D capabilities positions it as a
trusted IT partner for businesses globally.

Despite facing challenges, such as regulatory changes, taxation policies, and economic
fluctuations, ITC Limited has consistently delivered strong financial results. The company's
revenue has shown steady growth over the years driven by robust performance across its
diversified business segments. Additionally, ITC's prudent financial management practices, cost
optimization efforts, and strategic investments have contributed to its profitability and
shareholder value.

ITC is committed to reducing its carbon footprint, conserving natural resources, and promoting
social welfare. Initiatives such as water stewardship, renewable energy adoption, and community

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development programs underscore ITC's dedication to environmental and social responsibility.
Furthermore, ITC has significant growth opportunities, particularly in the FMCG and hospitality
sectors, due to rising disposable incomes, urbanization, and a growing middle class in India.
Additionally, digital transformation and technological advancements present opportunities for
ITC to enhance operational efficiency, innovate product offerings, and tap into new markets.

Nonetheless, ITC faces challenges, including regulatory changes, evolving consumer preferences,
and intensifying competition, particularly in its FMCG and hospitality segments. Geopolitical
factors, currency fluctuations, and global economic uncertainties could also impact its export-
oriented businesses.

3.2 Vision and Mission

To sustain ITC's position as one of India's most valuable corporations
through world class performance, creating growing value for the Indian
economy and the Company's stakeholders.

To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering
superior and sustainable stakeholder value

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3.3 ITC JUICES

BE NATURAL

Whether it is a fizzy drink, fruit concoction or a powdered juice, summer brings with it a barrage
of advertising from the cold beverages stable, and this year is no different. What stands out,
however, is the yin-yang phenomenon that is presently noticeable in the Rs 1,000-1,200 crore
branded juice segment, thanks to one brand that is swimming against the category.
ITC entered the branded juice market with B Natural, the fruit juice brand it acquired a year back
from south-based Balan Natural Food, and recently broke its first ever advertising campaign post
acquisition. While the two dominant players in the category - Dabur's Real and Real Activ (55 per
cent market share) and PepsiCo's Tropicana (30 per cent market share) - have captured the
healthy/fresh fruit positioning, ITC has explicitly focused on a disparate plank for B Natural's
launch: taste.
The reason? "Every fruit drink has the inherent goodness of fruit, which is a base level
expectation of every consumer. Great taste, however, is a differentiator," explains Sandeep
Shivaram Upadhyaya, marketing manager, new categories, foods division, ITC. B Natural,
therefore, has seven flavours to bolster its taste premise. While the new packaging and product
was rolled out in the South in January, 2015, it has now been taken to other regions.
A TV commercial crafted by Grey Group shows a central character, Sangram Singh, as a stern
palace guard who has never displayed emotion, but on consumption of B Natural, he
spontaneously and unabashedly displays expressions to demonstrate that he is enamoured by its
taste. 'Can't hide the taste' is the rather self-explanatory baseline that the brand has stuck to. The
commercial, which has been dubbed in regional languages and is supported by press, radio and
digital advertising, targets the SEC AB segment. The brand wants to rope in the everyday
consumer who is concerned about his health, but is not fanatical about it.
B Natural's launch communication has three primary deliverables: a simple brand story, conveyed
with a singularity of messaging (taste) and be noticed. An initial marketing budget of Rs 5-10
crore has been allocated for B Natural, according to sources. Fruit juice consumption in India is
still driven largely by in-home consumption at unbranded fruit juice stalls. The packaged,
branded juice market is nascent unlike the West, and category penetration is a low 5 per cent,
growing at a CAGR of 8-9 per cent. The lack of awareness has been a key issue, but increasing
health and hygiene awareness is playing a role in propelling the category. "There is literally a
fruit iceberg under us, as the category is poised to explode," says Ram Jayaraman, executive
creative director, Grey Bengaluru.
The brand has taken quite a risk though, in a low-awareness category, by ignoring the health
parameter for an otherwise generic quality as taste. But ITC is of the opinion that while quality
needs to be communicated, the plank of health is a given when one talks of fruits. And a typical
Indian will anyway never give up taste for what he perceives to be healthy - an example being
how most international health food chains have had to 'Indianise' their menus to suit the nation's
inherent need to satisfy the palate first.
ITC's plan, therefore, is not to veer away from health, but to focus more on taste which is key to
the Indian palate. "Unbranded juices are popular despite hygiene concerns of the glasses they are
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served in, etc, simply because of how delectable they are," says Jayaraman. "No one in this
category has spoken of the visceral reasons to have juice, which is where B Natural steps in."
Grey has chosen a fundamental truth as its communication insight: that when you have something
delicious, it shows on your face. The agency then wanted to show expressionless archetypes -
people with deadpan faces - responding naturally to this juice.
A smart strategy to blaze its own trail away from category leaders? "ITC's usual tactic, when it
enters a new category, is to take on a basic category benefit to begin with," says Anustup Datta,
director, brand and business strategy, Vertebrand Management Consulting. It doesn't look for
layered benefits. Experts do, however, suggest that another key area which the brand could target
in its next communication could be specifically wooing the youth. Branded fruit juices are seen to
be serious, only for those who are health conscious, implying those who are 30-plus, perhaps. The
youth, typically, have taken to colas, fruit drinks, etc. The branded juice category needs to be,
therefore, repositioned, if it is to appeal to youth, advises Datta.
The juices market as a whole is growing at about 15-20 per annum, led by a growing population
of health conscious consumers. As the market isn't cluttered with too much competition - given
the fact that it is dominated by only two players - ITC has gone the whole hog with 'desi' flavours
to do the trick of expanding the market. These flavours are called Mixed Fruit Merry, Guava
Gush, Litchi Luscious, Orange Oomph, Mango Magic, Pineapple Poise and Jamun Joy - clearly
an appeal to suit the local Indian palate.

BE NATURAL PORTFOLIO:

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10 RUPEES :

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