Sunfeast
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ITC was incorporated in 1910 as Imperial Tobacco Company of India and has since diversified into multiple businesses including hotels, packaging, agriculture, food, lifestyle retailing, education, and personal care. It launched its popular Sunfeast biscuit brand in 1975 and has expanded the brand to include various biscuit types targeting different segments, such as children, health-conscious consumers, and those seeking an indulgent treat. Some popular Sunfeast biscuit varieties include Milky Magic, Marie Light, Golden Bakery, Dark Fantasy, and Glucose.
Sunfeast
- 2. SUNFEAST
- 3. 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 encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and 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 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.
- 4. 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).
- 5. 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. 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.
- 6. chairman Board of Y C Deveshwar Directors EXECUTIVE DIRECTORS NakulAnand P V Dhobale K N Grant NON-EXECUTIVE DIRECTORS A Baijal S Banerjee AV Girija Kumar S H Khan S B Mathur D K Mehrotra PB H G Powell Anthony Ruys Ramanujam B BasudebSen K Vaidyanath Vijayaraghavan
- 8. 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 'ChoupalSaagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'ChoupalSaagars' 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 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.
- 9. Products of Sunfeast 1. Sunfeast Milky Magic 2. Sunfeast Marie Light 3. Sunfeast Golden Bakery 4. Sunfeast Dark Fantasy 5. Sunfeast Dark Fantasy Choco Fills 6. Sunfeast Glucose 7. Sunfeast Dream Cream 8. Sunfeast Snacky 9. Sunfeast sweet 'n salt 10. Sunfeast Nice 11. Sunfeast Benne Vita Flaxseed Biscuits 12. Sunfeast Special 13. Sunfeast Pasta 14. Sunfeast Yippee!
- 10. Sunfeast Milky Magic Packed with goodness of milk these deliciously nutritious crisp and crunchy biscuits are a favorite among mothers and kids. Milky Magic has the ‘Magic of 2’ - A perfect balance of energy that aids physical strength and mental ability. These biscuits strike the right balance of milk and wheat which helps in an all round development and nurturing of the child.
- 11. Sunfeast Marie Light Sunfeast Marie Light Original : This ideal teatime biscuit is made from the finest quality wheat high in fibre and keeps one light and healthy through the day . Sunfeast Marie Light Orange : It has the distinction of being one of the most successful innovative Marie biscuits and is liked by one and all. Sunfeast Marie Light Oats: The first of its kind in India, Sunfeast Marie Light Oats is enriched with the goodness of natural wheat fibre and soluble oats fibre.
- 12. Sunfeast Golden Bakery is a premium cookie on an innovative and differentiated platform. Launched nationally in March 2008, these cookies are made from the recipes crafted by the master bakers of ITC Hotels and are slowly baked in the traditional way till they are golden brown and develop the crispy broken crust texture. The Sunfeast Golden Bakery cookies are available in three distinct flavours - Sunfeast Butter-Nut, Butterscotch and Choco- Nut cookies. These products are designed to give consumers a rich & Golden truly indulgent experience. Bakery
- 13. Sunfeast Dark Fantasy Inspired by the Master Chefs of ITC hotels, it is the richest of chocolate vanilla biscuits. These biscuits are created using carefully chosen premium ingredients for a sensory experience unlike any other. Dark Fantasy is more than a biscuit, it‟s a luxurious mix of aromatic cocoa and vanilla.
- 14. Sunfeast Dark Fantasy Choco Fills Sunfeast Dark Fantasy Choco Fills is the latest and the most premium offering from the portfolio of Sunfeast. An exquisite combination of luscious chocolate filling enrobed within a perfectly baked rich cookie outer. An offer that fully epitomizes the brand promise of "Pure Indulgence".
- 15. Sunfeast Glucose For those light hunger pangs, a wholesome & nutritious choice as these golden brown biscuits are made from the best quality wheat. Sunfeast Glucose biscuits are ideal not just for kids but for adults too.
- 16. Sunfeast Dream Cream A truly scrumptious range of cream biscuits that have become an instant hit with children. ITC‟s chefs have put their legendary skills into these biscuits to deliver truly tasty cream biscuits. Special Flavor Crystals in the Strawberry variant keeps the creamy flavor linger on.
- 17. Sunfeast Snacky Bigger than most others in the salted biscuit category, Snacky is light and crispy like no other. From kids to adults, it’s the quintessential ‘Family Biscuit’. Available in two variants, Classic salted and Chilli flakes - the very first of its kind in India.
- 18. Sunfeast sweet 'n salt These thin and crisp biscuits come with a distinctive sundry taste, that of salt and sweetness. A bite into one of these one keeps wondering about its taste!
- 19. Sunfeast Nice These are crisp coconut biscuits showered with sugar crystals. The crisp sugary sweetness will just go on to make all those nice moments nicer.
- 20. Sunfeast Benne Vita Flaxseed Biscuits If Benne Vita in Italian stands for ‘Good Life’, then Benne Vita Flaxseed biscuits just make the good life better. The Flaxseed content in these protein and mineral enriched biscuits are rich source of Omega III acids that helps control cholesterol. Flaxseed is the richest plant source of these essential Omega-3 Fatty Acids. It is also rich in dietary fibre, proteins, calcium and other minerals to maintain healthy heart and good gut health.
- 21. Sunfeast ITC Sunfeast presents a range of Special cookies and creams. Special Cookies: Special Made with best quality wheat, cashew and butter, Sunfeast Special cookies are baked with real butter and the finest ingredients to give a mouth- watering treat that makes every moment special. Available in Cashew & Butter. Special Creams: Delicious value for money cream biscuits with a thick layer of cream sandwiched between two biscuits. Available in Orange, Chocolate & Elaichi variants.
- 22. Sunfeast Pasta The Sunfeast product portfolio was expanded in early 2005 to include healthy snacking options as well. Sunfeast Pasta Treat, a whole wheat based instant pasta was introduced as a healthy snacking option for children and young adults. After the tremendous success of the 4 initial flavours, (Masala, Tomato Cheese, Cheese and Sour Cream), the instant Pasta range has been extended with three new exciting flavours - Pizza style, Chicken and Tangy Tomato.
- 23. Sunfeast Yippee! The portfolio has been further expanded with Sunfeast Yippee! instant noodles. Three years of exhaustive developmental work has gone into the creation of Sunfeast Yippee! The product has two intrinsic components - the noodle block and the masala mix. Wheat is a key ingredient of the noodle block. The sourcing and blending expertise that has made Aashirvaad India's No 1 branded Atta has been leveraged to make a truly delightful noodle block. Sunfeast Yippee noodles do not lump even 30 minutes after cooking. At present, Sunfeast Yippie is available in two lip smacking variants - Classic Masala and Magic Masala.
- 24. Description of Sunfeast Brand :Sunfeast Company : ITC Ltd Agency " FCB Ulka Can a cigarette manufacturer succeed in marketing Biscuits? What do management thinkers say about unrelated diversification? Unrelated diversification will succeed if it is based on the core competency of the firm. So What is the core competency of ITC that is being leveraged when it decided to enter the Foods market. ITC relies on three core competencies 1. The depth of distribution 2. Its brand building capabilities. 3. The ability of Quality outsourcing. Sunfeast has been a success because of these three competencies of ITC. Sunfeast was launched in 2003 was one of the diversification forays of ITC which wanted to establish itself as a serious FMCG player from its position of Tobacco products leader. ITC had the advantage of the well entrenched distribution setup which is matched only by HLL. Indian biscuit market is estimated to be around 4500 - 5000 crore. The market is dominated by Parle and Britannia. Parle is the volume leader with brands like parle- G, Krackjack and Monaco while Britannia is the value leader with brands like 50: 50, milk bikis, Tiger, Goodday etc. The biscuit market has now moved from the core Glucose base to more value added categories. The key markets are UP, Maharashtra, and Tamilnadu. The percapita consumption of biscuits in India is only 1.2 kg per annum while the percapita consumption is 15 kg p.a in developed nations. While the glucose biscuits are popular in Rural India , Urban market prefer Cream biscuits.
- 25. To establish a brand in this tough market was never easy. Sunfeast using heavy promotion and careful brand building have already garnered 10% market share in this market. Sunfeast is positioned as an exciting brand. This platform is supported by a series product launches. Since Biscuits are convenience goods , new tastes and new products are essential to built excitement in the market. Sunfeast have maintained continous series of new launches like Milky Magic, Coconut, strawberry, pineapple cream etc. Recently Sunfeast launched a product for the premium segment named " Dark Fantasy" with chocolate flavour and cool advertisements. Sunfeast have used the baseline " spread the smile" as the brand essence and the brand is endorsed by Shah Rukh Khan. The use of SRK makes sense since the TG is mainly kids . SRK have the energetic persona that goes well with the brand. The mascot of Sunfeast is the Animated Sun which is the symbol of contentment, satisfaction and Pleasure. This mascot has been well received by the TG. The ad campaigns are catchy and full of colors and excitement. The product is also of very high quality. Thus Sunfeast has managed to get all the winning combinations in the right mix. Sunfeast is also trying to garner more share in the Marie category which is estimated to be around 600 crore. It launched the Marie with different flavours that has enabled it to gain a strong foothold in that category. To expand the brand in to the snack category Sunfeast has launched Pasta Treat which talks of a healthy snacking option for kids. Sunfeast also uses lot of Below the line promotions for brand building. It sponsors Sunfeast Open, a recent initiative aiming at the school kids by providing them an opportunity to enhance creativity through painting competitions, " HaraBano " campaign which set a world record in planting maximum number of saplings etc. The constant product launches and careful promotions have enabled Sunfeast to move to the top league in the biscuit market with in a span of 3 years. We may see this brand expanding to many categories .Hope they don't mess the brand by extending it to underwears.
- 26. Reason for Entry into Biscuits Innovation: Research revealed that the category had gaps which ITC could settle into. Findings revealed that consumers wished to taste new and innovative products. That was precisely what the competition had not done in a big way. Glucose was Glucose and same is the case with Marie. The company decided that this could be its biggest point of attack. In 2003, ITC launched Sunfeast with six ranges. But it was a calculated risk. ITC stuck to category favourites like Glucose, Marie and Bourbon cream. Along with that, it also launched innovations such as orange-flavoured Marie, Marie light and butterscotch- flavoured cream biscuits. In 2004, Sunfeast followed this up with the launch of Sunfeast Milky Magic. More recently, it also has launched the Sunfeast Snacky and Sunfeast Golden Bakes. The biscuits industry had not witnessed any major product innovation in years. Consumers were just waiting for something new, something fresh, when Sunfeast happened Distribution: Distribution is the key for FMCG products. In biscuit category, distribution and visibility is extremely important as it's partly an impulse purchase product. Priya Gold, which entered the western region in 2000, is struggling to find its feet even five years later. However, in this regard, Sunfeast did not stumble. The main credit goes tobacco business – its understanding and deep grasp in distribution. But it was not limited to just panwaris, but looked at the grocery stores and other retail formats. The company says the brand is now available in nearly 1.8 million outlets. Britannia claims it has a superior distribution clout with its presence in nearly 3.3 million outlets. Parle, the seasoned player itself, says it is available in 1.5 million outlets. Sunfeast's next step was to step up its branding and promotion
- 27. Promotion: In August 2003, a month after its launch, the company undertook a major sampling exercise to promote the product. For two years then, the brand did all the usual rounds - riding behind buses, blocking television spots, corner space in newspapers P Pricing: The biscuits industry now has two clear models. Parle products plays the low price game at all varieties of biscuits from glucose to cream. Parle plays a high volume, low margin game. But Britannia and Sunfeast look at a two-pronged strategy. High margins in cream variants and volumes from the Marie and Glucose segments. For instance, cream biscuits from both Britannia and Sunfeast cost Rs 10 for 100 grams. Parle, however, only charges Rs 5 for its cream variants. Except for Hide & Seek, all of Parle's products lie in the price range between Rs 4 and Rs 6 for 100 gram packs. Biscuit consumer is willing to pay more only when he sees a clearly differentiated product. Hence companies have little choice in terms of pricing. No wonder all the Glucose and Marie variants straddle price points of Rs 4-6 (for 100 grams) Results 1. Volumes: In March 2006 Britannia's shares have dropped from 35.8 per cent in 2004-05 to 30.5 per cent in May 2006 Parle's shares have also dropped from 42.2 to 38.4 per cent in the same period Priya Gold has seen a minor dip from 6.4 per cent to 5 per cent ITC's Sunfeast has been a big gainer with its share increasing from 2.7 to 6.7 per cent 2. Value Britannia leads the market with 37 per cent market share Parle's 31.3 per cent ITC's 6.3 per cent
- 28. Sunfeast foray into Biscuits Major players in biscuits who dominated the industry long back were Parle and Britannia. With that there were smaller brands in various regions. Instead of all this ITC took a bold step to hit on these biscuit mammoths making 82% of industry (in 2004) Now the important question at hand is the reason why ITC entered into this product category. Let me enumerate some reason: Food segment is Rs. 550,000 crores (112 b$) 6% is FMCG (Branded and packaged) – Rs. 33000 crores In developing markets, the above percentage is as high as 95%. So looking into future, India’s will have more organized and branded food product categories. It will lead to dual effect: Increase in base of biscuit segment and Increase in % of branded food categories ITC has a great scope to be a branded player Branded Biscuits industry come out to be around Rs. 4000 crores Increasing at the rate of 12 to 14% yoy Synergies with ITC core competencies (value addition to wheat with Aashirwad Atta brand) Biscuits as a segment positively effects the bottom line Threats for ITC: Behemoths like HLL tried their hand in this segment but unsuccessful (Max brand exit in 2005)
- 29. SUN SHOWS REACHNESS, NECESSITY, ENERGY. SMILEIS FOR CUSTOMER SATISFACTION, TARGET SEGMENT…… Milky Magic, made with cow's milk, gives them high energy, stamina and health; while the Jagmag'flavour bursts' of the Strawberry Launched in July, 2003 and Pineapple Cream biscuits melt in their •Growth rate of 53% mouths. •Turnover of over 1000 ITC's Sunfeast is a brand driven by innovative Cr. product development at ITC's state-of-the-art •Wide food technology centre in Bengaluru. Every categorization.Entry Sunfeast product is made with utmost care, level ensuring world class standards of hygiene. Sunfeastsymbolises ITC's commitment to create brands that enrich the quality of life for every Indian. Because our people and our country deserve the best.
- 30. Brand Ambassador Sunfeast signs Shah Rukh as its Brand Ambassador ITC Limited - Foods Business has appointed Shah Rukh Khan as the brand ambassador for its flagship brand „Sunfeast‟. The super-star will be endorsing the entire range of snacks under the umbrella brand „Sunfeast‟. As brand ambassador, the celebrated actor will play a key role in brand and product communication on television, in print and outdoor media and various promotions and merchandise that have been planned for the brand.
- 31. Although Sunfeast is a new brand the conversion rate is considerably high in all the price-quality points. This signifies that the brand is doing fairly well growing considerably