Keerthana Nair

Class = F Y BMS
Roll No = 50

SUNFEAST

History and Evolution

ITC was incorporated on August 24, 1910 under the name

Imperial Tobacco Company of India Limited. As the

Company's ownership progressively Indianised, the name of
the Company was changed from Imperial Tobacco Company
of India Limited to India Tobacco Company Limited in 1970
and then to I.T.C. Limited in 1974. In recognition of the
Company's multi-business portfolio encompassing a wide
range of businesses - Cigarettes & Tobacco, Hotels,
Information Technology, Packaging, Paperboards &
Specialty Papers, Agri-business, Foods, Lifestyle Retailing,
Education & Stationery and Personal Care - the full stops in
the Company's name were removed effective September 18,
2001. The Company now stands rechristened 'ITC Limited'.
The Companys 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. This decision of the Company
was historic in more ways than one. It was to mark the
beginning of a long and eventful journey into India's future.
The Company's headquarter building, 'Virginia House',
which came up on that plot of land two years later, would go
on to become one of Kolkata's most venerated landmarks.

In 1975 the Company launched its Hotels business with the acquisition of a hotel in

Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of

ITC's entry into the hotels business was rooted in the concept of creating value for
the nation. ITC chose the hotels business for its potential to earn high levels of
foreign exchange, create tourism infrastructure and generate large scale direct and
indirect employment. Since then ITC's Hotels business has grown to occupy a
position of leadership, with over 100 owned and managed properties spread across
India.
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam
Paperboards Limited, which today has become the market leader in India.
Bhadrachalam Paperboards amalgamated with the Company effective March 13,
2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In
November 2002, this division merged with the Company's Tribeni Tissues Division to
form the Paperboards & Specialty Papers Division. ITC's paperboards' technology,
productivity, quality and manufacturing processes are comparable to the best in the
world. It has also made an immense contribution to the development of Sarapaka, an
economically backward area in the state of Andhra Pradesh. It is directly involved in
education, environmental protection and community development. In 2004, ITC
acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd
(BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve
customer service with reduced lead time and a wider product range.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint
venture. Since inception, its shares have been held by ITC, British American Tobacco
and various independent shareholders in Nepal. In August 2002, Surya Tobacco
became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private
Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper

manufacturing company and a major supplier of tissue paper to the cigarette

industry. The merged entity was named the Tribeni Tissues Division (TTD). To
harness strategic and operational synergies, TTD was merged with the
Bhadrachalam Paperboards Division to form the Paperboards & Specialty
Papers Division in November 2002.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of
international quality relaxed wear for men and women in 2000. The Wills Lifestyle
chain of exclusive stores later expanded its range to include Wills Classic formal
wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into
the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills
Lifestyle became title partner of the country's most premier fashion event - Wills
Lifestyle India Fashion Week - that has gained recognition from buyers and
retailers as the single largest B-2-B platform for the Fashion Design industry. To mark
the occasion, ITC launched a special 'Celebration Series', taking the event forward to
consumers.
In 2000, ITC spun off its information technology business into a wholly owned
subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging
opportunities in this area. Today ITC Infotech is one of Indias fastest growing global IT
and IT-enabled services companies and has established itself as a key player in
offshore outsourcing, providing outsourced IT solutions and services to leading global
customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services
& Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality
and Transportation) and Media & Entertainment.

Board of
Directors

chairman
Y C Deveshwar

EXECUTIVE DIRECTORS
NakulAnand

P V Dhobale

K N Grant

NON-EXECUTIVE DIRECTORS
A Baijal

S Banerjee

AV Girija
Kumar

S H Khan

S B Mathur

D K Mehrotra

H G Powell

PB
Ramanujam

Anthony Ruys

BasudebSen

K Vaidyanath

B
Vijayaraghav
an

SUNFEAST
:: Snack foods
In July 2003, ITC forayed into the Biscuits market with
the Sunfeast range of Glucose, Marie and Cream Biscuits.
Sunfeasts brand essence, "Spread the Smile" connotes
happiness, contentment, satisfaction and pleasure. The
mascot Sunny reinforces the emotional aspects of the
brand. In a span of 6 years Sunfeast has launched many
new varieties and has its presence in almost all types of
biscuit categories.


Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri

Business Division for export of agri-commodities. The Division is today one of

India's largest exporters. ITC's unique and now widely acknowledged e-Choupal
initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to
10 states covering over 4 million farmers. ITC's first rural mall, christened
'ChoupalSaagar' was inaugurated in August 2004 at Sehore. On the rural retail
front, 24 'ChoupalSaagars' are now operational in the 3 states of Madhya Pradesh,
Maharashtra and Uttar Pradesh.

In 2000, ITC forayed into the Greeting, Gifting and Stationery products business
with the launch of Expressions range of greeting cards. A line of premium range of
notebooks under brand Paperkraft was launched in 2002. To augment its
offering and to reach a wider student population, the popular range of notebooks
was launched under brand Classmate in 2003. Classmate over the years
has grown to become Indias largest notebook brand and has also increased
its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the
launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under
the Classmate brand. In 2008, ITC repositioned the business as the Education
and Stationery Products Business and launched India's first environment
friendly premium business paper under the Paperkraft Brand.
Paperkraft offers a diverse portfolio in the premium executive stationery and
office consumables segment. Paperkraft entered new categories in the office
consumable segment with the launch of Textliners, Permanent Ink Markers and
White Board Markers in 2009.

Products of Sunfeast
1. Sunfeast Milky Magic
2. Sunfeast Marie Light
3. Sunfeast Golden Bakery
4. Sunfeast Dark Fantasy
5. Sunfeast Dark Fantasy Choco Fills
6. Sunfeast Glucose
7. Sunfeast Dream Cream
8. Sunfeast Snacky
9. Sunfeast sweet 'n salt
10.Sunfeast Nice
11.Sunfeast Benne Vita Flaxseed Biscuits
12.Sunfeast Special
13.Sunfeast Pasta
14.Sunfeast Yippee!

Sunfeast Milky Magic

Packed with goodness of milk

these deliciously nutritious
crisp and crunchy biscuits are
a favorite among mothers
and kids. Milky Magic has
the Magic of 2 - A perfect
balance of energy that aids
physical strength and mental
ability. These biscuits strike
the right balance of milk and
wheat which helps in an all
round development and
nurturing of the child.

Sunfeast Marie Light

Sunfeast Marie Light Original :

This ideal teatime biscuit is made

from the finest quality wheat high in
fibre and keeps one light and healthy
through the day .
Sunfeast Marie Light Orange :
It has the distinction of being one of
the most successful innovative Marie
biscuits and is liked by one and all.
Sunfeast Marie Light Oats:
The first of its kind in India, Sunfeast
Marie Light Oats is enriched with the
goodness of natural wheat fibre and
soluble oats fibre.

Sunfeast Golden Bakery is a premium

cookie on an innovative and
differentiated platform. Launched
nationally in March 2008, these cookies
are made from the recipes crafted by
the master bakers of ITC Hotels and are
slowly baked in the traditional way till
they are golden brown and develop the
crispy broken crust texture.
The Sunfeast Golden Bakery cookies are
available in three distinct flavours Butter-Nut, Butterscotch and Choco-Nut
cookies. These products are designed to
give consumers a rich & truly indulgent
experience.

Sunfeast
Golden
Bakery

Sunfeast Dark Fantasy

Inspired by the Master Chefs
of ITC hotels, it is the richest
of chocolate vanilla biscuits.
These biscuits are created
using carefully chosen
premium ingredients for a
sensory experience unlike
any other. Dark Fantasy is
more than a biscuit, its a
luxurious mix of aromatic
cocoa and vanilla.

Sunfeast Dark Fantasy Choco Fills

Sunfeast Dark Fantasy Choco

Fills is the latest and the

most premium offering from
the portfolio of Sunfeast.
An exquisite combination of
luscious chocolate filling
enrobed within a perfectly
baked rich cookie outer. An
offer that fully epitomizes
the brand promise of "Pure
Indulgence".

Sunfeast Glucose
For those light hunger

pangs, a wholesome &

nutritious choice as these
golden brown biscuits are
made from the best
quality wheat. Sunfeast
Glucose biscuits are ideal
not just for kids but for
adults too.

Sunfeast Dream Cream

A truly scrumptious range of
cream biscuits that have
become an instant hit with
children. ITCs chefs have put
their legendary skills into
these biscuits to deliver truly
tasty cream biscuits. Special
Flavor Crystals in the
Strawberry variant keeps the
creamy flavor linger on.

Sunfeast Snacky

Bigger than most others in

the salted biscuit

category, Snacky is light
and crispy like no other.
From kids to adults, its
the quintessential Family
Biscuit. Available in two
variants, Classic salted
and Chilli flakes - the
very first of its kind in
India.

Sunfeast sweet 'n salt

These thin and crisp

biscuits come with a

distinctive sundry taste,
that of salt and
sweetness. A bite into one
of these one keeps
wondering about its taste!

Sunfeast Nice

These are crisp coconut

biscuits showered with

sugar crystals. The crisp
sugary sweetness will just
go on to make all those
nice moments nicer.

Sunfeast Benne Vita Flaxseed Biscuits

If Benne Vita in Italian stands for

Good Life, then Benne Vita

Flaxseed biscuits just make the
good life better. The Flaxseed
content in these protein and
mineral enriched biscuits are rich
source of Omega III acids that
helps control cholesterol. Flaxseed
is the richest plant source of these
essential Omega-3 Fatty Acids. It is
also rich in dietary fibre, proteins,
calcium and other minerals to
maintain healthy heart and good
gut health.

ITC Sunfeast presents a range of

Special cookies and creams.
Special Cookies:
Made with best quality wheat, cashew
and butter, Sunfeast

Special cookies are baked with

real butter and the finest
ingredients to give a mouthwatering treat that makes every
moment special. Available in
Cashew & Butter.
Special Creams:
Delicious value for money cream
biscuits with a thick layer of
cream sandwiched between two
biscuits.
Available in Orange, Chocolate &
Elaichi variants.

Sunfeast Special

Sunfeast Pasta
The Sunfeast product portfolio was
expanded in early 2005 to include
healthy snacking options as well.

Sunfeast Pasta Treat, a

whole wheat based instant

pasta was introduced as a
healthy snacking option for
children and young adults.
After the tremendous success
of the 4 initial flavours,
(Masala, Tomato Cheese,
Cheese and Sour Cream),
the instant Pasta range has
been extended with three new
exciting flavours - Pizza style,
Chicken and Tangy Tomato.

Sunfeast Yippee!

The portfolio has been further expanded

with Sunfeast Yippee! instant noodles.

Three years of exhaustive developmental
work has gone into the creation of
Sunfeast Yippee! The product has two
intrinsic components - the noodle block and
the masala mix. Wheat is a key ingredient
of the noodle block. The sourcing and
blending expertise that has made
Aashirvaad India's No 1 branded Atta has
been leveraged to make a truly delightful
noodle block. Sunfeast Yippee noodles do
not lump even 30 minutes after cooking. At
present, Sunfeast Yippie is available in two
lip smacking variants - Classic Masala and
Magic Masala.

Description of Sunfeast
Brand :Sunfeast

Company : ITC Ltd

Agency " FCB Ulka
Can a cigarette manufacturer succeed in marketing Biscuits? What do management thinkers
say about unrelated diversification? Unrelated diversification will succeed if it is based on
the core competency of the firm. So What is the core competency of ITC that is being
leveraged when it decided to enter the Foods market. ITC relies on three core competencies
1. The depth of distribution
2. Its brand building capabilities.
3. The ability of Quality outsourcing.
Sunfeast has been a success because of these three competencies of ITC. Sunfeast was
launched in 2003 was one of the diversification forays of ITC which wanted to establish itself
as a serious FMCG player from its position of Tobacco products leader. ITC had the
advantage of the well entrenched distribution setup which is matched only by HLL.
Indian biscuit market is estimated to be around 4500 - 5000 crore. The market is dominated
by Parle and Britannia. Parle is the volume leader with brands like parle- G, Krackjack and
Monaco while Britannia is the value leader with brands like 50: 50, milk bikis, Tiger, Goodday
etc. The biscuit market has now moved from the core Glucose base to more value added
categories. The key markets are UP, Maharashtra, and Tamilnadu. The percapita
consumption of biscuits in India is only 1.2 kg per annum while the percapita consumption is
15 kg p.a in developed nations. While the glucose biscuits are popular in Rural India , Urban
market prefer Cream biscuits.

To establish a brand in this tough market was never easy. Sunfeast using heavy promotion and

careful brand building have already garnered 10% market share in this market. Sunfeast is
positioned as an exciting brand. This platform is supported by a series product launches. Since
Biscuits are convenience goods , new tastes and new products are essential to built
excitement in the market. Sunfeast have maintained continous series of new launches like
Milky Magic, Coconut, strawberry, pineapple cream etc. Recently Sunfeast launched a product
for the premium segment named " Dark Fantasy" with chocolate flavour and cool
advertisements.
Sunfeast have used the baseline " spread the smile" as the brand essence and the brand is
endorsed by Shah Rukh Khan. The use of SRK makes sense since the TG is mainly kids . SRK
have the energetic persona that goes well with the brand. The mascot of Sunfeast is the
Animated Sun which is the symbol of contentment, satisfaction and Pleasure. This mascot has
been well received by the TG. The ad campaigns are catchy and full of colors and excitement.
The product is also of very high quality. Thus Sunfeast has managed to get all the winning
combinations in the right mix.
Sunfeast is also trying to garner more share in the Marie category which is estimated to be
around 600 crore. It launched the Marie with different flavours that has enabled it to gain a
strong foothold in that category. To expand the brand in to the snack category Sunfeast has
launched Pasta Treat which talks of a healthy snacking option for kids.
Sunfeast also uses lot of Below the line promotions for brand building. It sponsors Sunfeast
Open, a recent initiative aiming at the school kids by providing them an opportunity to
enhance creativity through painting competitions, " HaraBano " campaign which set a world
record in planting maximum number of saplings etc.
The constant product launches and careful promotions have enabled Sunfeast to move to the
top league in the biscuit market with in a span of 3 years. We may see this brand expanding to
many categories .Hope they don't mess the brand by extending it to underwears.

Reason for Entry into Biscuits

Innovation:

Research revealed that the category had gaps which ITC

could settle into. Findings revealed that consumers wished to taste new and
innovative products. That was precisely what the competition had not done
in a big way. Glucose was Glucose and same is the case with Marie. The
company decided that this could be its biggest point of attack. In 2003, ITC
launched Sunfeast with six ranges. But it was a calculated risk. ITC stuck to
category favourites like Glucose, Marie and Bourbon cream. Along with that,
it also launched innovations such as orange-flavoured Marie, Marie light and
butterscotch-flavoured cream biscuits. In 2004, Sunfeast followed this up
with the launch of Sunfeast Milky Magic. More recently, it also has launched
the Sunfeast Snacky and Sunfeast Golden Bakes. The biscuits industry had
not witnessed any major product innovation in years. Consumers were just
waiting for something new, something fresh, when Sunfeast happened

Distribution: Distribution is the key for FMCG products. In biscuit

category, distribution and visibility is extremely important as it's partly an
impulse purchase product. Priya Gold, which entered the western region in
2000, is struggling to find its feet even five years later. However, in this
regard, Sunfeast did not stumble. The main credit goes tobacco business
its understanding and deep grasp in distribution. But it was not limited to
just panwaris, but looked at the grocery stores and other retail formats. The
company says the brand is now available in nearly 1.8 million outlets.
Britannia claims it has a superior distribution clout with its presence in

Promotion: In August 2003, a month after its launch, the company undertook a
major sampling exercise to promote the product. For two years then, the brand did all the
usual rounds - riding behind buses, blocking television spots, corner space in newspapers P
Pricing: The biscuits industry now has two clear models. Parle products plays the low price
game at all varieties of biscuits from glucose to cream. Parle plays a high volume, low margin
game. But Britannia and Sunfeast 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 Britannia and Sunfeast cost Rs 10 for 100 grams. Parle, however, only charges Rs 5 for
its cream variants. Except for Hide & Seek, all of Parle's products lie in the price range
between Rs 4 and Rs 6 for 100 gram packs. Biscuit consumer is willing to pay more only when
he sees a clearly differentiated product. Hence companies have little choice in terms of
pricing. No wonder all the Glucose and Marie variants straddle price points of Rs 4-6 (for 100
grams)
Results
1. Volumes: In March 2006
Britannia's shares have dropped from 35.8 per cent in 2004-05 to 30.5 per cent in May 2006
Parle's shares have also dropped from 42.2 to 38.4 per cent in the same period
Priya Gold has seen a minor dip from 6.4 per cent to 5 per cent
ITC's Sunfeast has been a big gainer with its share increasing from 2.7 to 6.7 per cent
2. Value
Britannia leads the market with 37 per cent market share
Parle's 31.3 per cent
ITC's 6.3 per cent

Sunfeast foray into Biscuits

Major players in biscuits who dominated the industry long back were Parle and Britannia.

With that there were smaller brands in various regions. Instead of all this ITC took a bold
step to hit on these biscuit mammoths making 82% of industry (in 2004)
Now the important question at hand is the reason why ITC entered into this product
category. Let me enumerate some reason:
Food segment is Rs. 550,000 crores (112 b$)
6% is FMCG (Branded and packaged) Rs. 33000 crores
In developing markets, the above percentage is as high as 95%. So looking into future,
Indias will have more organized and branded food product categories. It will lead to dual
effect: Increase in base of biscuit segment and Increase in % of branded food categories
ITC has a great scope to be a branded player
Branded Biscuits industry come out to be around Rs. 4000 crores
Increasing at the rate of 12 to 14% yoy
Synergies with ITC core competencies (value addition to wheat with Aashirwad Atta brand)
Biscuits as a segment positively effects the bottom line
Threats for ITC: Behemoths like HLL tried their hand in this segment but unsuccessful
(Max brand exit in 2005)

 SUN SHOWS REACHNESS,

NECESSITY, ENERGY.
SMILEIS FOR CUSTOMER

SATISFACTION, TARGET
SEGMENT
Milky Magic, made with cow's milk, gives

them high energy, stamina and health; while the

Jagmag'flavour bursts' of the Strawberry and
Launched in July,
Pineapple Cream biscuits melt in their mouths.
2003
Growth rate of 53% ITC's Sunfeast is a brand driven by innovative
product development at ITC's state-of-the-art
Turnover of over
food technology centre in Bengaluru. Every
1000 Cr.
Sunfeast product is made with utmost care,
Wide
ensuring world class standards of hygiene.
categorization.Entry
Sunfeastsymbolises ITC's commitment to
level
create brands that enrich the quality of life
for every Indian. Because our people and
our country deserve the best.

Brand Ambassador
Sunfeast signs Shah Rukh as its

Brand Ambassador
ITC Limited - Foods Business has
appointed Shah Rukh Khan as the
brand ambassador for its flagship
brand Sunfeast.
The super-star will be endorsing
the entire range of snacks under
the umbrella brand Sunfeast.
As brand ambassador, the
celebrated actor will play a key role
in brand and product
communication on television, in
print and outdoor media and
various promotions and
merchandise that have been
planned for the brand.

Conclusion
Although Sunfeast is a new brand the
conversion rate is considerably high in all the
price-quality points. This signifies that the
brand is doing fairly well growing considerably