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    $35 Billion. It Employs Over 36,500 People at More Than 60 Locations Across India

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    Pongu Raoh
    ITC is an Indian conglomerate established in 1910 with a diverse presence across industries such as cigarettes, FMCG, hotels, packaging, and agribusiness. To attract rural consumers, ITC uses market segmentation, extensive distribution networks, and initiatives like e-Choupal. In urban areas, ITC uses product differentiation, cost control strategies, extensive advertising, and regular new product introductions. Across both markets, ITC tailors its 4Ps of marketing - product, price, place, and promotion.

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    $35 Billion. It Employs Over 36,500 People at More Than 60 Locations Across India

    Uploaded by

    Pongu Raoh
    35 views4 pages
    ITC is an Indian conglomerate established in 1910 with a diverse presence across industries such as cigarettes, FMCG, hotels, packaging, and agribusiness. To attract rural consumers, ITC uses market segmentation, extensive distribution networks, and initiatives like e-Choupal. In urban areas, ITC uses product differentiation, cost control strategies, extensive advertising, and regular new product introductions. Across both markets, ITC tailors its 4Ps of marketing - product, price, place, and promotion.

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    ITC

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    ITC is an Indian conglomerate established in 1910 with a diverse presence across industries such as cigarettes, FMCG, hotels, packaging, and agribusiness. To attract rural consumers, ITC uses market segmentation, extensive distribution networks, and initiatives like e-Choupal. In urban areas, ITC uses product differentiation, cost control strategies, extensive advertising, and regular new product introductions. Across both markets, ITC tailors its 4Ps of marketing - product, price, place, and promotion.

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    35 views4 pages

    $35 Billion. It Employs Over 36,500 People at More Than 60 Locations Across India

    Uploaded by

    Pongu Raoh
    ITC is an Indian conglomerate established in 1910 with a diverse presence across industries such as cigarettes, FMCG, hotels, packaging, and agribusiness. To attract rural consumers, ITC uses market segmentation, extensive distribution networks, and initiatives like e-Choupal. In urban areas, ITC uses product differentiation, cost control strategies, extensive advertising, and regular new product introductions. Across both markets, ITC tailors its 4Ps of marketing - product, price, place, and promotion.

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    ITC

    Introduction

     Indian company headquartered in Kolkata, West Bengal established in 1910


     Diverse presence across industries such as cigarettes, FMCG, hotels, packaging,
    paperboards and specialty papers and agribusiness.
     The company has a total of 13 businesses in 5 segments and exporting its products to 90
    countries.
     The original name of ITC was Imperial Tobacco Company was renamed to Indian
    Tobacco Company due to Indianisation and business diversification
     As of 2019-2020, ITC had an annual turnover of US$10.74 billion and a market
    capitalization of US$35 billion. It employs over 36,500 people at more than 60 locations
    across India.

    Strategies used by ITC for attracting Rural and Urban consumers

    Rural

     Market segmentation: ITC as a brand, it serves the needs of a divers range of market
    groups by segmenting the population based on common types of features. A mix of
    regional demographic and psychographic segmentation factors such as occupation,
    income level, gender, age, area, behavior etc. are used by Itc
     Distribution strategy: The company operates with its own distribution channel, goods are
    made vailable to wholesale distributors through carried & forward agents which are than
    transmitted directly or through small, wholesale, dealers to retailers in to meet the
    customers in the most remote areas of the nation.
     In view of the slowdown which is impacting demand in rural India, ITC doubled its rural
    stockiest network in current financial year, with significant increase in coverage across
    low population group markets.
     It added 25 percent more to the existing large serviced base.
     FMCG are scaling up their direct reach in rural areas to combat subdued consumer
    sentiment in these pockets with a hope to push sales
     Launching E-Choupal
    o It is an initiative to conglomerate in India, to link directly with rural farmers via
    the internet for procurement of agricultural and aquaculture.
    o The program installs computer with internet access in rural areas to farmers up-to-
    date marketing and agricultural information.
    o This initiative has empowered the lives of people living in 10 states where 40,000
    villages have 65000 E-choupals and around 4 million farmers have been
    empowered.
     ITC also employs 4As in E-Choupal
    o Availability: emphasize on the availability of the goods and services to the end
    consumers. Sanchalaks maintain the availability of continuous inventory and
    aggregate demand.
    o Affordability: focusing on product pricing. ITC buys from farmers directly in the
    last day’s closing price and even pays them for transportation. So it is a win-win
    situation both for farmers and company
    o Acceptability: it focuses on convincing the customer to buy the product. ITC’s e-
    choupal is proving farmers with real time updated information on weather,
    customized knowledge on management and risk and lower transaction cost.
    Providing financial services in the form of life, general, health and crop insurance.
    o Awareness: it focuses on making people aware of the product. It is providing
    active servicing up to rural outlets. It has made entrepreneurs out of farmers as
    they are managing most of the work, it instills in them the sense of ownership.

    4Ps of ITC in Rural marketing strategies

     Product
    o highly diversified product range
    o Products quality are relatively high
     Price
    o Agricultural inputs were aggressively priced lower than competitors
    o Comparable products at lower price under different brand name
     Place
    o Availability of all products under one roof
    o Selling, purchasing and storage at the same place
     Promotion
    o Selling of products through samyojaks, sanchalaks who were among the villagers.
    o Awareness among farmers.

    Urban

    Here are some of the marketing strategies used by ITC


     Market differentiation: ITC launched differentiated products in each and every segment.
    For e.g. it introduced an Orange Maria, a butterscotch cream biscuit, chilli flakes in a
    biscuit and even honey flavor under the Sunfeast brand.
     Cost control strategy: offering products at a price which is either equal or less than what
    the competitors are offering. It also provides a high-quality, cost-effective, and innovative
    packaging and printing.
     Extensive advertising: They hired the best professionals and the best ambassadors in the
    country to make their products famous. Top-30 cities, over 1000 outdoor hoardings
    advertised the product and they spent close to Rs 100 crore on marketing.
     Regular introduction of new products: expanding its distribution network aggressively
    and also their product range. It launched a new products or flavors week after week in
    biscuits.

    4Ps of ITC in Urban marketing strategies

     Products: ITC has a diverse portfolio of businesses. Here are some of the ITC products
    that contribute the most to its business
    o It sells varieties of cigarettes, which includes gold flake kings, wills navy cut,
    gold flake superstar, and India kings are some of its major brands
    o In terms of packaged foods, it has ranked in the first place and some of its food
    brands are Bingo, Sunfeast, Aashirvaad, and Yippee.
    o It also involved in the stationary industry which includes classmates and color
    crew
    o It is involved in paperboards and produces high-quality paper.

     Price: With the involvement in several business interests, ITC faces a lot more
    competition in the market. To boost its market segments, the company has adopted
    premium pricing policies for luxurious products and reasonable pricing for the middle-
    class segment which will eventually help in generating sales and better revenue. They
    follow different pricing strategies for different products.
     Place: The wide distribution channel of ITCs product delivers the product quickly as
    possible. The company has four manufacturing units and more than 60 dealer in India.
     Promotion: The promotional strategy of the company has something unique keeping in
    mind its brand proposition and its target audience. It promotes its product on various
    social media platforms also through print, television, and radio. They also have different
    brand ambassadors for different brands which has taken advantage of any promotional
    medium available to sell its products.
    Conclusion

    ITC Ltd has been up scaling its digital marketing game and establishing its presence in the
    digital market the company has a strong base and thus its evolving over years. It is also one of
    the leading producers in various sectors of business. Though it is difficult for the company as
    they’ve got multiple competitors across various businesses they need to maintain their
    reputation and be consistent with their great work and initiative took by them. 

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