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ITC's Foray into Dairy and Beverages

CASE FLYER, MARKETING MANAGEMENT
ET Cases, 5 pages

Case Preview

ITC's Foray into Dairy and Beverages

 

Expected Learning Outcomes

• Overview of ITC’s business landscape and understand its business segments, the brands and their contributions to the Indian conglomerate
• Competitive landscape of the Indian food and beverage business segment and analysis of ITC’s relative strengths and weaknesses
• Using the Ansoff ’s Product-Market matrix to critically examine ITC’s foray into dairy and beverages segments of the food business

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I. ITC’s Business Landscape

1) What according to you are the three major segments of FMCG industry in India?
2) Match the following (Exhibit I): ...........................

Teaching Note Preview

ITC's Foray into Dairy and Beverages

 

Synopsis

The India Tobacco Company or ITC Limited (ITC) was established in 1910. For a very long time it had been associated with tobacco business. However, in January 1964, a committee of selected doctors in US released a report Smoking and Health: Report of the Advisory Committee to the Surgeon General that highlighted the ill-effects of tobacco usage. Since then there was a sharp decline in the official support to the tobacco industry in India despite its enormous contribution to the agricultural, fiscal, manufacturing and exporting sectors of the economy. Therefore, from 1970s, the company began foraying into the non-tobacco industries like hotel industry/hospitality business (1975), paperboard industry (1979), International Business division for export of agri-commodities (1992) by leveraging on its agri-sourcing competencies, FMCG (2000), ITC Infotech (2000) and lifestyle apparels (2001). The company had established its mark in all the industries that it forayed into and during the last decade, ITC has also been making strides in the Indian FMCG sector as well. The company had built popular brands across all the segments within the FMCG industry. In 2014, ITC intends to foray into non-carbonated beverages and dairy categories. The case flyer tries to critically analyze ITC’s foray in these categories and would it be able to carve a niche for itself.

Before the Classroom Discussion/Prerequisite Conceptual Understanding (PCUs)

This case flyer presupposes a conceptual understanding of the following. A working knowledge along with the business implications of the following concepts/information would enable an effective discussion leading to more practical solutions than a mere intellectual exercise. The participants were asked to come prepared about the following concepts/information:

  • a) Igor Ansoff ’s Product-Market matrix
  • b) ITC’s business portfolio and its competitor analysis especially in food and beverages segment

 

Expected Learning Outcomes

  • • Overview of ITC’s business landscape and understand its business segments, the brands and their contributions to the Indian conglomerate
  • • Competitive landscape of the Indian food and beverage business segment and analysis of ITC’s relative strengths and weaknesses
  • • Using the Ansoff’s Product-Market matrix to critically examine ITC’s foray into dairy and beverages segments of the food business

 

Suggested Orchestration

During the Case Flyer Discussion in the Classroom

The classroom discussion and analysis for this case flyer was facilitated under three broad sections as explained below..........

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Abstract

This case flyer, prepared based on an article1 from The Economic Times, can be used for understanding the application of Ansoff's Product-Market matrix in the light of ITC's decision to foray into beverages and dairy segments. The Indian business conglomerate, the 100-year old ITC Limited (ITC) has been stamping its authority in the Indian FMCG sector, firstly and largely with cigarettes and over the last decade with other segments of the FMCG sector - personal care, food and beverages, lifestyle apparels and hospitality. Having built 50 energetic and popular brands across these categories over the last few years, ITC intends to foray into non-carbonated beverages and dairy businesses. Would it be able to carve a niche for itself? Would its existing business architecture support the proposed business line extensions?



Pedagogical Objectives

  • To have an overview of ITC's business landscape and understand its business segments, the brands and their contributions to the Indian conglomerate
  • To understand the competitive landscape of the Indian food and beverage business segment and analyze ITC's relative strengths and weaknesses
  • To critically examine ITC's foray into dairy and beverages segments of the food business with the help of Ansoff's Product-Market matrix


1 Writankar Mukherjee, 'ITC May Juice Up Foods Biz with Dairy, Beverages Foray', The Economic Times, February 20th 2014



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- Case Flyer
- Teaching Note (**ONLY for Academicians)
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