[pic] ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now 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. It was to mark the beginning of a long and eventful journey into India's future. 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. The Company's …show more content…
With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake. The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design, innovation, manufacturing technology, quality, marketing and distribution. All initiatives are therefore worked upon with the intent to fortify market standing in the long term. This in turns aids in designing products which are contemporary and relevant to the changing attitudes and evolving socio economic profile of the country. This strategic focus on the consumer has paid ITC handsome dividends. ITC's pursuit of international competitiveness is reflected in its initiatives in the overseas markets. In the extremely competitive US market, ITC offers high-quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a key player in the GCC markets through growing volumes of its brands ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger, Saharanpur and Kolkata. These factories are known for their high levels of quality, contemporary technology and work environment. FOOD PRODUCTS: ITC made its entry into the
| * Highest Market share among competitors * Only Firm with a delivery vehicle * Strong hold on B2B market * Highest stock price among competitors * Highest dealer rating among competitors * Very high and consistent return on marketing
• Continual improvement to the quality of its product by offering value-added initiatives such as:
Their extensive research in market trends enables them to keep a step ahead of its competitors by constantly expanding to meet consumer needs.
The business has been profitable and has been able to gain a large market share because of those strengths.
Tobacco companies should invest more in doing research to do a breakthrough invention so they could produce products that are healthier as the anti-cigarettes campaign is showing definite results. With e-cigarettes that states themselves as healthier products, maybe in the future the demand will shift again to e-cigarettes. Only by discovering new things that satisfy the customer’s want and need will the company be successful.
The company’s can be attributed to several reasons. Primary reason for their success would be their motto of simplicity. They have kept products simple and elegant apart from their marvelous functionalities. In order to simply a product, they have never compromised on the capabilities of the machine.
This gain value and addresses a key decisive achievement factor in the industry (Grant,2010). As position is important to offer convenience and a deep assortment, An extra unique intangible resource would be their brand representation and customer loyalty, this is vital since it can attract or attract consumers and it could be necessary to build the brand image .
Opportunities: RAI has had many opportunities to spin off other companies which have helped it to be a powerful force in the tobacco industry. They have capitalized on the use of being more social ably conscious by adding smokeless tobacco and nicotine replacement therapy products. RAI is working on transforming tobacco by focusing on these areas: commercial integrity, tobacco harm reduction and youth tobacco prevention. (Reynolds American, Inc, 2012)
Its ability to have created a global brand these products is a valuable asset and a sustained competitive advantage
As of November 23, 2007, the company has been notified that the following persons had interests in 3% or more of their issued share capital.
I have chosen cigarettes to be my market transaction as it is has a very large and wide market. A cigarette is a product consumed through smoking and manufactured out of cured and finely cut tobacco leaves and reconstituted tobacco, often combined with other additives1,
The company aims at ensuring that they are recognized as a leading company in its industry and rise above the noise in the market that is caused by competition.
At the beginning the company was considered leader of its industry due to its capacity to customize a store to its neighborhood,
Since its inception, the company has established itself as the premier purveyor of the world’s finest
This means the elimination of the sub-medium and medium cigarettes producers and the consolidation of the position of premium and prestige cigarettes producers. They will share the remaining market shares, favouring the creation of a symmetrical oligopoly. The computations demonstrate that the main producers on the market will remain BAT and PM, who’s portfolio mainly consists premium cigarettes and which will distribute the remaining 10% between themselves after the elimination of the small ones, as well as the 10% lost by their main competitor, JTI. Thus, the competition on the market will be significantly diminished through the eradication of the very condition of a competitive market – the existence of a sufficiently large enough number of producers so that the price is a result of the balance between offer and demand, as article 4 from the Competition Law stipulates.