[attachment=15506]
ITC SUNFEAST
Salient Facts
India is the third largest biscuit manufacturing country
Estimated annual turnover is around INR 65.0 billion
The organized sector 65%
unorganized sector 35%
Urban market penetration– 75 - 85 %
Rural market penetration – 55- 65 %
ITC PRODUCTS
Reason for Entry into Biscuits
Food segment is Rs.50,000 cr
Increasing at the rate of 17-19 %
6% is FMCG (Branded and packaged)
India will have more organized and branded food product categories. It will cause a dual effect: Increase of in base of biscuit segment and Increase in % of branded food categories
Innovation
Research revealed that this category had gaps which could be ITC’s biggest point of attack.
ITC launched Sunfeast with 6 ranges in 2003.
Consumers were waiting for something new and fresh.
Good Distribution network
A Biscuit consumer is willing to pay more only when he sees a clearly differentiated product. So,sunfeast follwed different pricing strategies for its innovative products.
Competitor’s Analysis
4P’s OF SUNFEAST
Products:-
Sunfeast glucose
Sunfeast marie light
Sunfeast dream cream
Sunfeast dark fantasy
Sunfeast snacky
Sunfeast sweet n salt, nice
Sunfeast special
Sunfeast benne vita flaxseed biscuits
4p’s of sunfeast
Place:-
Distribution network:-
The company used its existing network of convenience stores: the company’s name for the hole-in-the-wall pan-beedi shops for Sunfeast.
The company also looked at grocery stores and other retail formats.
The company says the brand is now available in nearly 1.8 million outlets.
4p’s of sunfeast
Manufacturing units:-
14 manufacturing units
The company has extended its manufacturing capacity by setting up three new biscuit plants in UP and West Bengal to focus on supply chain management strategy to enhance product freshness, market servicing and margins
4p’s of sunfeast
Promotions:-
Advertisements & promotions: 35-40% of turnover
Sunfeast school programme: cover 1000 schools across country, to familiarize children with sunfeast brand name and sunfeast mascot.
Brand ambassador: shahrukh khan & surya (south actor)
Official sponsor of WTA tennis championship-sunfeast open.
Launch of Sachin’s Fit Kit, the first product co-created with brand ambassador.
Other activities:
On buses, print media , hoardings, TV and radio advertisements
4p’s of sunfeast
Price:-
Sunfeast look at a two prolonged strategy:-
High margin & High volume
(High margins in cream variants and volumes from the
Marie and Glucose segments)
examples-
sunfeast glucose (200 gm): 20/-
sunfeast marie light (130gm : 10/-
Sunfeast dream cream (82): 10/-