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The "Foods Division" is the most recent diversification of ITC Group. ITC's decision to enter the foods business is part of a strategic decision to develop new product lines by synergising its core competencies in building brands-- understanding the Indian consumer and strong distribution network as well as its established culinary expertise. ITC Foods markets the ready-to-eat category with its flagship brand "Kitchens of India" and "Aashirvaad ReadyMeals". Apart from this-- ITC Foods also markets "Minto" - targeting the adult confectionery market & "Candyman" - targeting the children's sweets segment. Under the Aashirvaad brand-- ITC has already established Atta and salt. All these products have been received very well by the consumers. 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.
ITCs Sunfeast
The late entrant is already on the podium in the third place with as much as 7 per cent of the market in terms of value by 2006. "ITC made hay when the sun wasn't shining," says a consultant who's been tracking the industry for a long time. But first, why did ITC train its eye on biscuits? Ravi Naware, chief executive, ITC Foods, makes it sound simple. "We decided to enter the foods segment because it's a Rs 550,000 crore (Rs billion) market in India. But only 6 per cent of this is branded and packaged. In developed markets, nearly 95 per cent of the food market is branded and packaged. So there was lot of scope for a branded player." In foods, biscuit was tempting. The Rs 4,000-crore (Rs billion) Indian biscuits market has grown at 12-14 per cent year-on-year. Then, there was a business synergy. ITC was already value-adding to wheat with its branded atta presence. By entering the biscuits segment, it could also improve its bottomline further. But despite the fast growth rates, the biscuits industry was not all rosy. Over the years, even giants like Hindustan Lever had failed. For instance, HLL which had flirted with biscuits under the Max brand exited in 2005. But ITC's Sunfeast has a different story to tell so far. The strategist looks at the game plan of a late entrant and how the biscuits industry has responded. The latest statistics of 2010 point out that the total production of biscuits in India is estimated to b earound 30 lakh MT, the organized sector accounts for 65% and the unorganized sector accounts for 35%of the total industry volume. The organized sector is valued at above Rs 8000 crores. The biscuit industry is estimated to grow over 15-17% in the next few years and the per capita consumption of biscuits in India is 2.0 kg. India is ranked 3rd after US and China amongst the global biscuits producers. The export of biscuits is approximately 17% of the annual production and the imports are not significant amount as compared to the total consumption. The penetration of biscuits in urban and rural market is85% and 55% respectively. The Biscuit industry employs almost 3.5 lakh people directly and 30 lakh people indirectly.
When marketing their products firms need to create a successful mix of: The right product Sold at the right price In the right place Using the most suitable promotion.
ITCs Sunfeast
Sunfeasts Products
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
ITCs Sunfeast
natural wheat fibre and soluble oats fibre.
Sunfeast Dark Fantacy 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 Fantacy 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.
ITCs Sunfeast
Strawberry Cream The first of its kind cream biscuit with special strawberry flavor crystals that will keep the creamy flavor linger on. Bourbon A special delight for all those chocolate lovers.
Orange Cream Experience a tangy twist in biscuits with every Orange Cream. Butterscotch Cream Another first, the taste of butterscotch ice-cream in cream biscuits.
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.
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!
ITCs Sunfeast
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 Special 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 mouth-watering 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.
ITCs Sunfeast
Sunfeast Pasta
The Sunfeast product portfolio has been further expanded to include healthy snacking options as well. 'Sunfeast Pasta Treat', a whole wheat based instant pasta, was introduced in 2005 as a healthy snacking option for children. Sunfeast Pasta Treat is made from 100% Durum Wheat - high in protein and fibre content and it is a non-fried snack. After the tremendous success of four initial flavors Cheese, Tomato Cheese, Masala, Sour Cream & Onion, the instant Pasta range has been extended with two new exciting flavors Pizza and Chicken. Pasta was traditionally a hitherto unknown/ alien product confined to a niche segment of consumers. The biggest challenge for Pasta Treat was to create a category in 'Instant Pasta' and make it accessible to the masses, and Sunfeast was able to overcome this challenge by introducing a range of innovative flavors packaged in a familiar cooking format. The concept was very well received by consumers who were looking for alternate healthy snack options. The pasta segment was further expanded with the launch of 'Sunfeast Benne Vita' in 4 innovative variants in 2006. The range has been enhanced recently with the launch of Sunfeast Benne Vita Flax Seed biscuits that reflect the brand essence of Benne Vita, which in Italian stands for Good Life. The flax seed content in these protein and mineral enriched biscuits is a rich source of Omega III acids for vegetarians. Sunfeast Pasta contributes to the Hara Banao social forestry campaign by contributing 25p from every pack of Pasta Treat & Re 1 from each pack of Benne Vita.
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ITCs Sunfeast
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. Foods Division launched Sunfeast YiPPee! Noodles on September 14, 2010. Initially, the launch was rolled out in selected markets in South and Jaipur and then spread to all India from November 2010 through January 2011. Over 4000 consumers were spoken to about the product post which the product was developed and launched.
Product Benefits
Round block: Being round in shape, you dont need to break the block. No breaking means longer noodles and fun to eat Non-lumpy noodles: Unlike other noodles in the market, this noodle doesnt lump up after a while. You can enjoy your noodles now or later. They remain as slurpy as ever. Choice of Masalas: YiPPee! gives you two masalas - Classic Masala and Magic masala
These benefits came through from the research and have been widely identified as defining reasons for purchase. Classic Masala
Is the perfect blend of spices and gives you the perfect Indian Masala taste
Magic Masala
Is a special Masala formulated by ITC. Is a red coloured Masala unlike other yellow coloured Masalas. Has five kinds of dehydrated Masalas in it.
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ITCs Sunfeast
Place
The key markets of biscuit industry are UP, Maharashtra, and Tamil Nadu. The per capita consumption of biscuits in India is only 1.2 kg per annum while the per capita consumption is 15 kg p.a in developed nations. While the glucose biscuits are popular in Rural India, Urban markets prefer Cream biscuits.
Distribution maze It's common knowledge, that for FMCG products, distribution channels are very important. For biscuits, distribution and visibility are extremely important as it's partly a impulse purchase product. And in biscuits, setting up a distribution channel is anything but easy. However, in this regard, Sunfeast has been fortunate: thanks to its tobacco business, ITC already had a good understanding of distribution channels. The company says the brand is now available in nearly 1.8 million outlets.
The company used its existing network of convenience stores The companys name for the hole-in-the-wall pan-beedi shops for sunfeast. The company also looked at grocery stores and other retail formats.
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ITCs Sunfeast
The main key factors kept in mind while designing the distribution process of sunfeast are 1. Strict compliance standards 2. Low profit margins 3. Intense competition 4. High customer- service expectations. Distribution Channel of Sunfeast
Key factors kept in mind while distribution ITC uses FIFO method to reduce the wastage of goods due to expiry. They also keep the good on constant move from low sales area to high sales area. The company collects all the expired goods four times a year, and destroys them. Retailers must return expired or damaged products within six months after the date of expire. Adjustment for them is done in three months time. ITC provides their retailers with racks, hangers, etc to display the products. The benefits received by the retailers depend upon their sales volume and also the location of their shops.
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The Marketing Communications Mix is the specific mix of advertising, personal selling, sales promotion, public relations, and direct marketing a company uses to pursue its advertising and marketing objectives.
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ITCs Sunfeast
Definitions: Advertising - Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Personal selling - Personal presentation by the firms sales force for the purpose of making sales and building customer relationships. Sales promotion - Short-term incentives to encourage the purchase or sale of a product or service. Public relations - Building good relationships with the companys various publics by obtaining favorable publicity, building up a good "corporate image", and handling or heading off unfavorable rumors, stories, and events. Direct marketing - Direct communications with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships. Communication Mix at Sunfeast Advertising: 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 target 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 target group (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. Well differentiated advertisements, some which showed a complete cream world with cream rivers, cream mountains and cream trees, were targeted at kids watching cartoon channels. At the same time, on general entertainment channels, mothers received information on the importance of glucose, the wholeness of wheat and so on. Also, the company tied up with Bey Blades, the popular television series that was a rage among children, to promote itself.
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ITCs Sunfeast
Advertisement Targeting Awareness Ads
Cartoon Channels
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, booking that corner space in your favourite newspaper and so on. In the same year, as the official sponsor of WTA tennis championship -- titled the Sunfeast Open -- the company had teenage sensations Sania Mirza and Mahesh Bhupathi campaigning for it. But that's not all. For promotions in southern states, Sunfeast has signed Tamil super star Surya as a brand ambassador. Below the line promotion and Direct Marketing: 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, "Hara Bano" campaign which set a world record in planting maximum number of saplings etc. Sunfeast register better among kids compared to adults. Learnings from biscuits track revealed that spontaneous recall of Sunfeast among kids is about three times more than their mothers. The constant product launches and careful promotions have enabled Sunfeast to move to the top league in the biscuit market within a span of 3 years. We may see this brand expanding to many categories.
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