February 6, 2019 | Author: Joydeep Das | Category: Customer Relationship Management, Brand, Airlines, Tobacco, Strategic Management
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Management Education & Research Institute, New Delhi

History and Evolution

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encom encompa pass ssing ing a wide wide range range of busin busines esse sess - Ciga Cigare rett ttes es & Tobac Tobacco, co, Hote Hotels ls,, Infor Informa mati tion on Technol Technology ogy,, Packagi Packaging, ng, Paperb Paperboard oardss & Special Specialty ty Papers Papers,, Agri-bu Agri-busine siness, ss, Foods, Foods, Lifest Lifestyle yle Retailing, Retailing, Education & Stationery Stationery and Personal Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. The Company’s beginnings were humble. A leased office on Radha Bazaar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926,  by purchasing purchasing the plot of land situated situated at 37, Chowringhee, Chowringhee, (now renamed renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. one. It was was to mark mark the beginni beginning ng of a long long and eventfu eventfull jour journey ney into into Indi India's a's future future.. The The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. Though the first six decades of the Company's existence were primarily devoted to the growth and consol consolida idati tion on of the the Ciga Cigare rett ttes es and and Leaf Leaf Toba Tobacco cco busine business sses es,, the the Seven Seventi ties es witn witnes essed sed the  beginnings  beginnings of a corporate transformat transformation ion that would usher in momentous momentous changes changes in the life of the Company. ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for  ITC's Cigarettes business. It is today India's most sophisticated packaging house. Management Education & Research Institute, New Delhi

In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels  business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically  backward area in the state of Andhra Pradesh. It is directly involved in education, environmental  protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in  November 2002. Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for  export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar  Pradesh.

In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand “Paperkraft” was launched in 2002. To augment its offering and to reach a wider student  population, the popular range of notebooks was launched under brand “Classmate” in 2003. “Classmate” over the years has grown to become India’s largest notebook brand and has also Management Education & Research Institute, New Delhi

increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the “Classmate”  brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the premium executive stationery and office consumables segment. Paperkraft entered new categories in the office consumable segment with the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009. ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later  expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear  (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC Infotech is one of India’s fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In eight years, the Foods business has grown to a significant size with over  200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing. In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular  safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro. ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of  its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

Management Education & Research Institute, New Delhi

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care  products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills  provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of  shampoos in June 2008.

ITC vision Sustain ITC's position as one of  India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Company’s stakeholders

ITC Mission To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value


Management Education & Research Institute, New Delhi

Armenteros Handrolled Cigars

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, ITC has a leadership position in every segment of the market. ITC’s highly popular portfolio of brands includes Insignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol, Flake, Silk Cut, Duke & Royal. The Company has been able to consolidate its leadership position with single minded focus on continuous value creation for consumers through significant investments in creating & bringing to market innovative product designs, maintaining consistent & superior quality, state-of-the-art manufacturing technology, & superior marketing and distribution. With consumers & consumer  insights driving strategy, ITC has been able to fortify market standing in the long-term, by developing & delivering contemporary offers relevant to the changing attitudes & aspirations of  the constantly evolving consumer. ITC's pursuit of international competitiveness is reflected in its initiatives in overseas markets. In the extremely competitive US market, ITC offers high-quality, value-priced cigarettes and Rollyour-own solutions. In West Asia, ITC has become a key player in the GCC markets through its export operations. ITC's cigarettes are manufactured in state-of-the-art factories at Bengaluru, Munger, Saharanpur, Kolkata and Pune, with cutting-edge technology & excellent work practices benchmarked to the  best globally. An efficient supply-chain & distribution network reaches India's popular brands across the length & breadth of the country. Awards Management Education & Research Institute, New Delhi

ITC's Cigarettes business has been winning numerous awards for its quality, environmental management systems and product excellence: 'Best Manufacturer of Cigarettes' for the year 2008 & 2007 and Best Exporter of Cigarettes for  2008 by the Tobacco Board based on previous three years' performance. Occupational Health and Safety Award 2007 for Excellence in Safety Management to the Bengaluru, Saharanpur and Kolkata factories from the Royal Society for Prevention of Accidents (ROSPA), U.K. 5 Star Health and Safety Rating in 2007 from the British Safety Council to the Bengaluru, Munger, Kolkata and Saharanpur factories and the "Sword of Honour" for Bengaluru & Saharanpur  factories in 2006. Greentech Gold Award for excellence in Safety Management for the year 2007 to the Bengaluru, Kolkata and Saharanpur cigarette factories for the high level of performance that the units have achieved in Environment Health and Safety (EHS). Saharanpur along with Kolkata and Munger  factories were honoured with the Gold award and the Bengaluru Factory with the Platinum Award in 2006. Greentech Gold Award for Excellence in Environment Management 2007 to the Bengaluru, Kolkata and Munger factories. Safety Innovation Award for 2007 and 2006 for Innovative Safety Management System to the Bengaluru Factory from the Institution of Engineers and also the Unnatha Suraksha Puraskara Award 2006 from NSC Karnataka Chapter. Golden Peacock Award for Occupational Health and Safety from the Institute of Directors, New Delhi; Award for Outstanding Performance in Environment Health and Safety from the CII and the Suraksha Puraskar Award from the National Safety Council, Mumbai to the Kolkata factory in 2007 and the "1st National Security Today Award" in the category of Best Maintained Fire Safety System in 2005. Occupational Health and Safety Gold Award from the ROSPA, UK; the Winners Trophy - Safety Health and Environment Award from the CII Eastern region; National Award for Excellence in Water Management and Innovative Project Award Initiatives for Energy Conservation from the CII to the Munger factory in 2007 and also the Excellence in Water Management Award from CIIGBC for 2006. All the four factories are certified by Det Norske Veritas (DNV) for ISO 14001, for their  Environment Management Systems, OHSAS 18001 for their Occupational Health and Safety Management Systems (OHSMS) and the ISO 9000-2000 for Quality Management Systems. The Kolkata factory is the first cigarette factory in India to be awarded the SA 8000 Certificate for  Social Accountability by Det Norske Veritas (DNV) in June 2004.

Management Education & Research Institute, New Delhi

ITC's R&D Centre at Peenya, Bengaluru has the distinction of being the first independent R&D centre in India to get ISO 9001 accreditation and certified with ISO 14001 for Environment Management Systems by DNV. The R&D Centre is also certified for the standard ISO/IEC17025:2005, by National Accreditation Board for Testing and Calibration Laboratories (NABL). This certification is awarded for "General requirement for the competence of Testing & Calibration Laboratories"


ITC to launch Lucky Strike as competition fires up

Rattled by competition in the foreign premium cigarettes segment, market leader ITC Ltd is launching its major shareholder British American Tobacco’s (BAT) popular cigarette brand Lucky Strike in India. BAT owned nearly 33% in ITC as of March-end. Sources close to the development said ITC will roll out Lucky Strike in New Delhi, Mumbai and Pune by the end of this month. Its major stockiest in these cities have been apprised of the launch, but will receive dispatches only a few days prior to actual launch. The cigarette will be priced at Rs110 for a pack of 20 sticks, thereby positioning it at a premium to Philips Morris’ premium cigarette Marlboro—now being sold under licence by Godfrey Phillips—but at a discount to US-based Imperial Tobacco Group’s super-premium cigarette Davidoff. Imperial Tobacco has priced Davidoff  cigarettes in India at around Rs 120-125 per pack of 20 sticks, according to retailers. Although Davidoff was already being sold through the grey market in India, Imperial Tobacco in May tied up with Barakat Food & Tobacco to “officially” import and distribute the cigarettes in India. Barakat earlier distributed Marlboro in India on behalf of Philip Morris, before the latter signed a licensing agreement with Godfrey Phillips. Last month, Godfrey Phillips launched an upgraded variant — Marlboro Gold Advanced—but retained the price at Rs 98 for 20 sticks, in a bid to improve its market share. Godfrey Phillips has a market share of 8% in the branded cigarettes segment, and Marlboro cigarette has made significant inroads, said retailers. ITC is the leader with 80% share of the segment. But a bulk of this is driven by its mid-market and upper-market Management Education & Research Institute, New Delhi

brands Classic and Gold Flake. In the premium segment, its current offerings are Benson & Hedges and 555 State Express, which are also BAT brands sold under licence by ITC.

ITC Current Profile : ITC is one of India's foremost private sector companies with a market capitalisation of over US $ 33 billion and a turnover of US $ 7 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by BusinessWorld and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, AgriBusiness, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of  growth anchored on its time-tested core competencies: unmatched distribution reach, superior brandbuilding capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach.

Management Education & Research Institute, New Delhi

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT services and solutions to leading global customers. ITC Infotech has carved a niche for itself by addressing customer challenges through innovative IT solutions. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 26,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 4,11,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the Nation. For the Shareholder."

TC Current Status and Trend :Management Education & Research Institute, New Delhi

Management Education & Research Institute, New Delhi

Management Education & Research Institute, New Delhi

Management Education & Research Institute, New Delhi

Management Education & Research Institute, New Delhi

Management Education & Research Institute, New Delhi

SWOT Analysis ITC ITC is one of India's biggest and best-known private sector companies. In fact it is one of the World's most high profile consumer operations. This SWOT analysis is about ITC. Its businesses and brands are focused almost entirely on the Indian markets, and despite being most well-known for its tobacco brands such as Gold Flake, the business is now diversifying into new FMCG (Fast Moving Consumer Goods) brands in a number of market sectors - including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery. Examples of its successful new FMCG products include: •

Aashirvaad - India's most popular atta brand with over 50% market share. It is also present in spices and instant mixes.

Mint-o - Mint-0 Fresh is the largest cough lozenge brand in India.

Bingo! - a new introduction of finger snacks.

Kitchens of India - pre-prepared foods designed by ITC's master chefs.

Sunfeast - is ITC's biscuit brand (and the sub-brand is also used on some pasta products).

Strengths ITC leveraged it traditional businesses to develop new brands for new segments. For example,  ITC  used its experience of transporting and distributing tobacco products to remote and distant  parts of India to the advantage of its FMCG products. ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business.

ITC is a diversified company trading in a number of business sectors including cigarettes, hotels,  paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery.

Weaknesses The company's original business was traded in tobacco. ITC stands for Imperial Tobacco Company of India Limited. It is interesting that a business that is now so involved in branding continues to use its original name, despite the negative connection of tobacco with poor health and premature death. To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being subsidised by its tobacco operations. Its Gold Flake tobacco  brand is the largest FMCG brand in India - and this single brand alone hold 70% of the tobacco market. Management Education & Research Institute, New Delhi

Business Update ITC Infotech

The company has been a long-term leading Oracle partner for Siebel Loyalty & Marketing. This relationship with Oracle has been further strengthened with the signing of a partnership to deliver Oracle’s Loyalty & Marketing based BPO services. ITC Infotech achieved the distinction of being the first company globally to offer Loyalty as a Service - CRM/ Loyalty as a Service (CLaaS). The company achieved many more significant milestones during the year, beginning with its very first IT Outsourcing (ITO) deal for a packaging giant. ITC Infotech’s Hospitality practice significantly heightened operations for one of the world’s largest hospitality companies which owns, operates, franchises and manages hotels, resorts, spas, residences, and vacation ownership properties. The company continues to deliver differentiated services from the dedicated offshore development centre in India.

Product Lifecycle Management (PLM) remains a key differentiator and a growth driver. The company recently strengthened its relationship with PTC with a strategic services partnership for PTC’s enterprise Management Education & Research Institute, New Delhi

business in India. With this collaboration, ITC Infotech will now also support PTC in delivering their cutting edge solutions and services to Aerospace, Retail, Footwear & Apparel, Government and Defence customers in India. The company’s recently formed Life-Sciences practice launched industry specific solutions: Personalized Content Delivery (PCD) & Sales on the Go (SonGo). In a short span of time, the practice successfully concluded a pilot of its solutions for a global pharmaceutical giant. These solutions are expected to further propel ITC Infotech’s growth in the Life Sciences sector. Towards the end of the year, the company’s Engineering Services enhanced its achievements, with the addition of a leader in power and automation technologies to its roster of clients. Despite stiff competition from bigger IT players, ITC Infotech won contracts with one of the world’s largest technology companies and a leading provider of educational services.

ITC Infotech continued its growth trajectory driven by robust client acquisition, which was fuelled by customised solutions & services and strategic partnerships. Addressing growing market needs, the company made deeper inroads across sectors, despite stiff competition from larger established players. ITC Infotech’s strategy of delighting customers by providing value added and innovative solutions continued to yield significant traction. Long standing clients scaled up their engagements by entrusting the company with additional mission-critical projects. To support the growth in client base and demand, ITC Infotech expanded its human resource base to over 4000 employees. The company also strengthened its presence across geographies by expanding its global footprint with new offices in Australia and Singapore, allowing easy accessibility and improved service levels to clients. This year, ITC Infotech renewed its focus on India, with specifically targeted services addressing the burgeoning $16 bn domestic market. The company witnessed increased traction for services such as egovernance and enterprise solutions.

Management Education & Research Institute, New Delhi

Trusted by the World’s Largest Companies ITC Infotech, along with SAP Consulting, implemented SAP® BusinessObjects™ Supply Chain Performance Management application in North America for one of the world’s largest beverage manufacturers. The implementation has been rolled out to multiple users across the North American region. This project is a key milestone which enables the beverage manufacturer to effectively align supply chain goals with business objectives, thereby providing visibility for end-to-end supply chain processes and driving process consistencies. ITC Infotech continued to further cement its niche in the airlines sector, with additions of more One World airline customers, including marquee large-scale global implementations. ITC Infotech implements first ever CRM based loyalty solution for Finnair

ITC Infotech, a global IT services company, has successfully implemented a new-generation CRM based loyalty solution for Finnair, Finland's largest airline. Finnair is the first airline in the world to move away from a legacy based frequent flyer program to an analytical CRM solution. This is the first of it’s kind CRM based loyalty solution in the world for airlines and Finnair launched this solution recently. The new loyalty system for automating Finnair Plus, the loyalty program for Finnair customers, is expected to improve the effectiveness and usage of Finnair’s loyalty program. This implementation will also improve reporting, analysis and decision support for operations and management. Mr. Tom Källström, Vice President, eBusiness Development, Commercial Division, Finnair said “We congratulate ITC Infotech on the successful deployment of the new Finnair loyalty application. The loyalty program has gone live and now we can be more innovative in offering new services to our most valued customers.” He further added, “ITC Infotech’s excellent CRM capabilities, exemplary customer focus and flexibility makes them an ideal partner for us.”

Management Education & Research Institute, New Delhi

Commenting on the implementation, Mr. Sanjiv Puri, Managing Director, ITC Infotech said, “The successful delivery of the loyalty solution to Finnair demonstrates our capability to bring domain knowledge and technology expertise together to create a business friendly solution.” ITC Infotech had signed a five-year multi-million dollar contract with Finnair in 2006. ITC Infotech is involved in implementing Finnair’s frequent flyer loyalty program, e-ticketing and other operational application systems. About Finnair Finnair, one of the world's oldest operating airlines, was established on 1st November, 1923. The airline sends passengers and cargo to nearly 50 international and 16 domestic destinations. In addition, the carrier provides travel agency services, catering, package tours, a nd aircraft maintenance. The Finnish government is the airline's largest shareholder, with 58 per cent. Finnair is part of the oneWorld Alliance led by British Airways and American Airlines. Finnair Group operations cover scheduled passenger  traffic & leisure traffic, technical & ground handling operations, catering, travel agencies as well as travel information and reservation services. Its subsidiaries provide air traffic support services or operate in closely related areas.

In June Finnair started direct flights from Mumbai to Helsinki. Finnair started flying to New Delhi — its 10th Asian destination — in October 2006, which is said to be the quickest route between India and the European Union.

Management Education & Research Institute, New Delhi

Customer Satisfaction Chart ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, ITC has a leadership position in every segment of the market. ITC’s highly popular portfolio of brands includes

Insignia, India Kings, Classic, Gold Flake King Size, Navy Cut, Flake, Silk Cut.

KANO MODEL REPRESENTATION OF CUSTOMER SATISFACTION OF Cigarettes Sub Brands of ITC:As par the survey the below 3 ITC cigarettes Sub Brands are consumed the most. 1) Gold Flake King Size :-

Taste & Preferences:-

a)  b) c) d)

Purchased in regular basis. Targets the college going students and officials, business men. Main Competition with Marlboro lights. Brand Loyalty is based of smoking habits, loyal customer are in play as regular smokers do smoke cigarettes of their favorable brand only.

Management Education & Research Institute, New Delhi


Navy Cut :-

Taste & Preferences:-

a)  b) c) d) e) f)

Purchased in regular basis. Popularly know as “Filter”. Targets the old age people, business men and Govt. official. Main Competition with Marlboro Gold and Four Square. Brand Loyalty is based of smoking habits, loyal customer are in play as regular smokers do smoke cigarettes of their favorable brand only. Major drawback is that, Navy Cut cancer patients are not curable.

Management Education & Research Institute, New Delhi


Insignia :-

Taste & Preferences:-

a)  b) c) d)

Not Purchased in regular basis. Targets the college going students and high officials, business men and high class people. Main Competition with Davidoff. Brand Loyalty is based of smoking habits, loyal customer are in play as regular smokers do smoke cigarettes of their favorable brand only.

Management Education & Research Institute, New Delhi

KANO MODEL on Customer requirement basis:-

30 respondents are taken into account to complete the survey


A E O R Q I Total Grade


19 3 0 3 8 6

Flake India Kings Classic Gold Flake King Size Navy Cut Silk Cut

5 2 6 1 15 1

1 1 0

0 30 19 30 0 30


5 18 5 0 10 5 15 0

1 0

1 0

30 30


12 2








16 0

17 5


Management Education & Research Institute, New Delhi

Management Education & Research Institute, New Delhi

Questionnaire 1. 2. 3. 4. 5. 6.

NAME:GENDER:OCCUPATION:PHONE NO.:AGE:Are you aware about ITC company? Yes ……. Or No…….. 7. Which Brand of ITC Cigarettes from the following category, you consume the most? (Select 3 on consumption priority basis) ………………………………………………………………………………. (Gold Flake King Size, Insignia, Navy Cut, Classic, Wills Flake, Indian Kings) 8. What other brands of cigarette other than ITC, you consume? …………………………………………………………………………......... 9. How often do you smoke? (Tick One) Social Smoker……….; Chain Smoker ……… or Casual Smoker…....... 10. Please give your review about our ITC’s newly launched cigarette named “Lucky Strike” ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… Note:- a) Questionnaire is prepared on the smokers only. b) Questionnaire is conducted on above 18 years old People c) After completion of the questionnaire each and every respondents is given a packet of newly launched ITC Cigarette “Lucky Strike” d) 30 respondents are given to fill up the questionnaire.

Management Education & Research Institute, New Delhi

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