ITC Manuals Approach to Developing FMCG, Marketing & Advertising News, AND BrandEquity

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By Namrata Singh

Late entry into FMCG and packaged foods, ITC has challenged national and multinational companies, following a clear vision from its legendary former chairman Yogi C Deveshwar, to rapidly expand the non-cigarette business of the business.

How does a business create impact in an industry dominated by multinationals? ITC has stuck with the classic textbook approach to grow the FMCG business, which today boasts a brand portfolio of over Rs 1,000 crore, with Aashirvaad being the largest with a figure business over 4,000 crore rupees.

“ITC has done in food, what HUL (Hindustan Unilever) has done in personal care,” said an FMCG industry expert. Because food is largely a local topic, ITC has managed to create a larger disruption in foods where consumption trials are high, something HUL hasn’t been able to do for decades. ITC tapped into categories where the unorganized market share was high, such as attack, where there was a need for branding for consumers. “ITC mastered this art in food. In personal care, however, there is less unorganized play and brand loyalty is a big factor. It has been a challenge for ITC, ”said the expert.

Devendra Chawla, another FMCG expert who runs Spencer’s Retail, said: “It can take years to build a distribution network in towns and villages. Learning to source properly from food takes time, and not everyone gets the right information about consumers. On all these points, ITC has excelled. In food, a local business has a better understanding of consumer behavior. A true farm-to-fork strategy with recent acquisitions has helped ITC develop emerging categories by leveraging these strengths. When ITC entered the food industry in 2002 with the launch of the Kitchens of India ready-to-eat product line, followed by Aashirvaad Atta, the industry was deprived of major technological disruption. .

Marico CEO and Managing Director Saugata Gupta said, “ITC has done everything right because they believe in doing everything the classic notebook way. They have invested in backrooms, supply chain and innovation. They managed to create a breakthrough with quality products created in India, which were then quickly developed. “

Each year was marked by a major brand / category launch, leading to a non-cigarette FMCG business of Rs 11,000 crore today. ITC has not hesitated to leverage the capacities of its existing activities. It has also surpassed other FMCG companies in advertising, according to Abneesh Roy, senior vice president, Edelweiss Financial Services.


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