ITC SUNFEAST

COMPETITIVE MARKETING STRATEGIES

CUSTOMER ACQUISITION & RETENTION

ITC

Founded in 1910 under the name Imperial Tobacco

Company of India Limited

Diversified businesses like FMCG, Hotels, Agri-products,

Paperboards, Packaging, Tobacco products and IT

Appreciated globally for undertaking several CSR initiatives

Corporate mission of becoming the No. 1 player in the

Indian FMCG market

One of the most influential stocks in the Indian stock

exchanges with market cap of around 2,90,000 crore

BISCUIT INDUSTRY

Market Size INR 10,000 Crore

Per Capita Consumption 2.1 Kgs in India, 10 Kgs in USA &

Europe

2 Sectors Organized 70%, Un-organized 30%

Consumed across all ages

10-11% growth (in what- sales? market size? revenues?)

over the last 2 years.

Production has increased 10 fold in the last 30 years

SUNFEAST BRAND

Launched in July 2003 with the objectives of business

diversification & product innovation

Initially forayed into the market with three products.

11 varieties of biscuits offered today by Sunfeast, along

with Pasta and Yippee

Leveraged the already-in-place distribution network of its

cigarette and tobacco business

Policies of FIFO inventory and destroying expired goods

has enabled them to maintain quality standards

BISCUIT INDUSTRY MARKET SHARE

PARLE
PARLE 38
38 %
%

BRITANNIA
BRITANNIA 26
26 %
%
ITC
ITC 10
10 %
%
OTHERS
OTHERS 26%
26%

MARKET FOLLOWER

Cloner
Emulates
the
leaders
products, name and packaging with
slight variations

Examples

Sunfeast Marie light v/s Britannias Marie Gold

Sunfeast Nice v/s Britannias Nice Time
Sunfeast Dark Fantasy v/s Britannia Pure Magic

MARKET FOLLOWER - CLONER

MARKET FOLLOWER

Imitator- Copies from Market leader but

differentiates
on
packaging,
advertising, pricing or location

Examples

Sunfeast Sweet n Salt

Sunfeast Milky Magic
Sunfeast Glucose

MARKET FOLLOWER

Adapter - Takes leaders products and

adapts or improves them

Examples

Sunfeast Dream Cream

Sunfeast Yippee

MARKET CHALLENGER

Frontal attack

Competitive price and advertising

Products are equal in quality and better value

Examples

Sunfeast
Sunfeast
Sunfeast
Sunfeast
Sunfeast

Marie light v/s Britannia Marie gold

Snacky v/s Parle Monaco
Sweet n Salt v/s Britannia 50-50
Special Cookies v/s Britannia Good Day
Glucose v/s Parle g

MARKET CHALLENGER

Flank attack

Attacked the weaker segment of the leader

Targeted rural India
Using existing distribution network

Product differentiation:

Butterscotch cream with actual granules in the

cream
Strawberry cream with flavour-enhancers and
orange-flavoured Marie and double cream biscuits
Nascent instant pasta market

MARKET CHALLENGER

Encirclement attack - Capture a wide

slice of market

Entered the market with 6 different

biscuits.

At present- 11 types of biscuits, Sunfeast

Yippee and pasta treat

MARKET LEADER

Position Defense

Occupying the most desirable market

space in the minds of the consumers
Positioning of Dark Fantasy as a premium
biscuit brand
The proposition of 'Indulgence'
Packaging as its USP bold colours,
superior calligraphy and twin packaging

MARKET LEADER

Flank Defense

Erection of outposts to protect a weak front

or serve as an invasion base for
counterattack
Sunfeast Dark Fantasy - Choco fills
Forcing competitors like Parle to launch
new brands in this category.
Extended this strategy to its cookie
category - Delishus brand of cookies

MARKET LEADER

Pre-emptive Defense

More aggressive manoeuvre - leader

attacks before rival starts its offense
Sunfeast
Pasta:
continuous
product
innovation based on consumer insights
Success of the 4 initial flavours followed by
the launch of 3 more flavours
Further expansion in 2007 with the launch
of 'Sunfeast Benne Vita Fusilli Pasta' in 4
variants

MARKET LEADER

Mobile Defense

Leader stretches its domain over new

territories that can serve as future centres
for defence and offense
Dark Fantasy at the premium end to
Sunfeast Glucose at the low cost end
Product portfolio expanded in 2005 Sunfeast Pasta Treat
Further expansion in 2010 Sunfeast
Yippee Noodles

MARKET LEADER

Contraction Defense

Giving up weaker territories in the wake of

intense competition and reassigning resources
to stronger territories
Sunfeast launched Sachin Fit Kit in 2007 with
huge expectations
Market size was too smallfor such a huge
investment
The target consumers - kids, preferred taste
and variety over health benefits
Taken off the market within a couple of months.

FUTURE OF ITC - SUNFEAST

Nearing breakeven by 2015, aiming to become top

market leader

Growth rate expected to slow down

Raw material cost rising

Standard packaging sizes to be introduced by govt.

Introduction of wheat biscuits, either under Sunfeast or

the Aashirvaad brand

Focus to shift mainly on premium like cream & cookies

International markets - UAE