ITC Classmate_submitted by PGP30102

BRAND MANAGEMENT Overview of brand extension – ITC Classmate

-submitted to Prof. Sameer Mathur

Submitted by:Shamael AnsariPGP 30102Section B

FMCG industry in India

Source: GMID Euro monitor report, annual report 2014

Overview

Fast moving consumer goods (FMCG) is the fourth largest sector in the Indian economy

The FMCG sector has grown at an annual average of about 11 per cent over the last decade

Food products is the leading segment, accounting for 43 per cent of the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market share

Education & Stationery Market in India

Consumer expenditure in India (INR million)2009 2010 2011 2012 2013 201490,201.7 111,528.4 120,699.8 128,444.5 144,504.4 163,861.3

Source: GMID Euro monitor report, annual report 2014

Organized notebook market in India is 4000 Cr

ITC’s Classmate is market leader with 20% share

Navneet follows with 7% share

Remaining market is controlled by regional shares

ITC Group

Country’s leading marketer in FMCG

Second largest hotel chain in India

Market leader in Indian paperboard & packaging industry

Pioneer is farmer empowerment with its Agri Business

In the 1970s, it diversified into non-tobacco businesses

ITC Group – key financials

Source: GMID Euro monitor report, annual report 2014

ITC’s extension into ‘Classmate’ stationery

ITC made its foray into stationery with ‘Paperkraft’ in 2002

Expanded into the popular segment with ‘Classmate’ in 2003

Classmate became largest notebook brand in the country

Classmate & Paperkraft have become a natural extension of the consumer

Source: GMID Euro monitor report, annual report 2014

Target Group

General Market for Classmate: Students,

Educational Institutes, Corporate Employees

Stands for identifying & celebrating the

uniqueness in every child

Encourages the user to nurture his talents, skills and interests that make

him special.

Classmate's simple message to every child: "You are born unique so

succeed to your own strengths. Because you

are one of a kind."

Marketing Mix (4P’s)

• Pencils (mechanical and wood-cased)• Pens (ball, gel, roller and fountain)• Mathematical Instruments (wax crayons, colour pencils, sketch pens and oil pastels)• Erasers• Sharpeners• Art Stationery• Notebooks

Product

Marketing Mix (4P’s)

• Selecting Pricing objective : Classmate objective is to maximize market share• Pencils – INR 3- 40 per unit• Pens – INR 5- 20 per unit• Mathematical Instruments (wax crayons, colour pencils, sketch pens and oil pastels)• Erasers• Sharpeners – INR 4- 20 per unit• Art Stationery• Notebooks

Pricing

Marketing Mix (4P’s)

• Classmate’s products are targeted across rural & urban areas across India• Classmate's main manufacturing unit is at Bhadrachalam , Andhra Pradesh.• Out of 5 levels of distribution of ITC, Classmate uses two type of levels• LEVEL 3 : Producer Agent Wholesaler Retailer Consumer• This level is used majorly for reaching consumers in rural areas • LEVEL 3 L : Producer Wholesaler Retailer Consumer• This is used in all other areas of distribution

Place

Marketing Mix (4P’s)

• Promotions is a major player for Classmate• Promotions are undertaken with the tag line ”You are one of a kind”• TV Advertisements, hoardings, posters and banners are used to promote the

products across all areas• Classmate uses 3 type of advertising strategies

• Television advertising• Newspaper advertising• Magazine advertising

Promotion

Competitive Frame of Reference

NavNeet and Bilt are the main competitors of Classmate.

POP’s & POD’s

Points of Difference

• Product Differentiation: Durability, conformance quality, reliability, repair ability, style, performance quality differentiate a product

• Design Differentiation: Classmate has very good cover design that differentiates it from its competitors. The customers register the design at the first look and hence prefer classmate over others.

• Services Differentiation: Ordering ease, delivery, installation, customer training, customer consulting, maintenance repair and returns differentiate services

Points of similarity

• Regular range of stationery like competitors• Similar reach & target group• Similar price range