One of India’s most popular private-sector companies, ITC has a total sales value of Rs 90,104 crores. Headquartered in Kolkata, ITC has a strong foundation as a conglomerate. Further, they have ensured their presence in all the major sectors of the Indian Economy. Moreover, it understands their customer desires and ensures quality products and services. However, how is the ITC marketing strategy unique? What are the different marketing strategies of ITC? We will learn in detail.
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Marketing strategies of ITC
One of the most important questions most people have is, how has ITC become the most popular multi-business enterprise in India? Further, how has the unique marketing strategy of ITC helped the company to progress in all sectors of the Indian Economy?
The answers to these questions are the unique marketing strategy of ITC company. Here is a brief description of the marketing strategies of ITC:
The marketing mix of ITC
The marketing mix of ITC follows the 4Ps of marketing, namely, price, product, place, and promotion. And the combination of business and marketing strategies and the marketing mix has made ITC the most successful brand in the market.
The marketing strategies of ITC
The marketing strategies of ITC have helped the company position itself competitively in the commercial market.
This has not only helped the company to become a successful brand but also helped it position itself competitively in the commercial market. Further, these strategies have helped the company to achieve its business goals.
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Different Marketing strategies of ITC company
As mentioned earlier, the marketing strategies of ITC company are based on the 4Ps of marketing. They are:
- Product strategy
- Pricing strategy
- Place and distribution strategy
- Promotion and advertising strategy
Now, let’s learn about each of the 4Ps in detail. By doing so, we can understand the different marketing techniques of the ITC.
Product Strategy or Product portfolio of ITC
Regarding the first P of the 4Ps, Product, ITC has a dynamic product portfolio by being the leading FMCG company in India. Further, its product portfolio is categorized into 5, namely FMCG, Agri-business, Hotels, IT, and paperboards & packaging. And the marketing strategies for the portfolio are prepared accordingly.
Since ITC is the leading FMCG marketer globally, its marketing techniques are first-class in promoting its products.
Some of the products that come under ITC’s FMCG are; Sunfeast, Aashirvaad, Kitchen of India, Yipee noodles, and more. Moreover, they have excellent product length and depth.
Another range of products that comes under ITC is personal care products. Moreover, they have a wide array of personal care products for consumers that meet their daily needs. Brands like Fiama, Vivel, Ezzensa Di Wills, Engage, Superia, Shower to Shower, and more have received a positive response regarding excellence in personal care across the globe. Further, have gained massive popularity among consumers.
Clothing and Stationary
The unique ITC marketing strategy has also helped the company progress in the field of clothing and stationery. Wills Lifestyle and John Players are popular clothing retailers that come under ITC.
And classmates and papercraft are the best-selling stationery brands of ITC. Further, Classmates benign is the number one brand in notebooks and other stationery items.
ITC is known for its luxurious and premium hospitality services. Moreover, it has luxury hotels spread across more than 70 destinations of the world. Further, they have the most sustainable and responsible green hotels globally.
Pricing is the second P in the 4Ps of marketing. Moreover, the diversified and dynamic product portfolio of ITC comes with different pricing strategies. Further, it is one of the most critical factors influencing the ITC marketing strategy. And the most significant positive of the ITC pricing strategy is that they follow economic Pricing by keeping its manufacturing and marketing cost at a minimum.
However, the hike in the excise duty forced the company to hike the price of its premium products. The 5% pricing of classmates over its competitors is one example.
Place & Distribution strategies
The following important factor influencing the ITC marketing strategy is its place & distribution strategies. The distribution and location network of ITC is something that stays unmatched by its competitors.
Moreover, the environment-friendly company believes in sustainable place & distribution strategies. Further, it consists of integrated manufacturing and logistic facilities with deep distribution networks. Also, all the manufacturing units of ITC are 100% hazard analysis and CCP certified. Lastly, it has links with agri-sourcing farms in 17 states and more. Furthermore, ITC also exports its products to countries like North America, the Middle East, Africa, and Australia.
Promotion and Advertising strategies
The Promotion and Advertising strategies are the last and most important marketing strategies and P in 4Ps. The ITC marketing strategy is heavily influenced by its promotion and advertising techniques because it designs the promotion strategies by keeping the brand proposition and target audience in mind. It promotes its products through print, television, radio, and social media.
Further, each product has unique brand ambassadors. For example, ITC’s Classmate stationery brand is endorsed by Yuvraj Singh and Soha Ali Khan. Further, its FMCG products, like Sunfeast, are endorsed by Shah Rukh Khan.
Thus, these are strategies that come under the ITC marketing strategy. Further, these 4Ps of marketing have helped the brand succeed globally.
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SWOT Analysis of ITC
The study of the ITC marketing strategy is incomplete without a SWOT analysis of the same. Moreover, knowing the strengths and weaknesses of ITC can help us know how it is a successful multi-business company in the world.
Strengths of ITC
The first part of the SWOT analysis of ITC is to know its strengths. And like every multi-business brand, ITC also has its strengths. They are:
Dynamic product portfolio
ITC consists of 6 diverse and robust businesses that boast its total revenue. Moreover, the dynamic product portfolio of ITC enables it to be innovative and helps explore different business opportunities.
Leading brands in various businesses
Another popular strength of ITC’s marketing strategies and overall brand is that they are the strongest and leading brands across the globe in various categories of businesses. For instance, its FMCG products like Sunfeast are among India’s top-selling brands. Apart from other market-leading products like Aashirvaad, Yipee, Engage, and more.
Thus, the multi-faceted positioning of its brands at the top makes ITC the most influential business in the world.
ITC has always believed in working toward developing social, economic, and environmental capital. Further, their initiatives, like E-choupal, Choupal pradashan khet, etc., are some of the strategies ITC has adopted to promote social, economic, and environmental capital. And further benefitted many people from the grassroots level, like farmers.
Excellent Inter and Intra divisional synergy
The most successful strength of ITC is its excellent Inter and Intra divisional alliances. Moreover, the company has leveraged its distribution system to create a separate channel for its FMCG products.
Further, it has also entered the packaged food category by leveraging its hotel business knowledge of food and bakery items.
Weaknesses of ITC
Similar to its strengths, ITC also has its weaknesses. They are:
The high proportion of revenues from Tobacco products
Even though ITC has been successfully diverting the FMCG business and reducing its over-dependence on its tobacco products revenue, tobacco products remain the 60% contributor to the total revenue ITC that it gains from its FMCG products.
Association with tobacco products has affected its image
The association of ITC with its tobacco products has affected the company’s image, even though they have become the leading FMCG manufacturer and producer around the globe.
Excess tax on Tobacco has influenced the revenue generation of ITC
The final and most significant weakness of ITC is the tax laid on its Tobacco products.
This has further affected the revenue generation of the company negatively.
Frequently Asked Questions
What is the marketing mix of ITC?
The diversified presence of ITC in its FMCG, Hotels, Paperboards & Packaging, Agri-business, and IT.
What are the 4Ps of the ITC marketing strategy?
Product, Price, Place, and Promotion are the 4Ps of the ITC marketing strategy.
What are the central values of ITC?
Sustainability, meeting the needs of the Target audience, and innovation and globalizing their product by keeping in mind environmental safety are the central values of ITC.
Overall, the ITC marketing strategy and marketing mix has made the brand a household name in India. Moreover, the SWOT analysis of ITC lets us know the strengths and weaknesses of the marketing strategies of ITC company and its multi-business companies.
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