Marketing Mix Of ITC and 7Ps (Updated 2025)

The Marketing mix of ITC Limited analyses the 7Ps of ITC Limited, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of ITC Limited. ITC Limited is popularly known as ITC and is a public company of Indian origins. It is a conglomerate associated with FMCG, hotel and services, information and technology, agribusiness, paperboard, and packaging. ITC was named Imperial Tobacco Company, founded in 1910 as Imperial Tobacco Company of India Limited, but was renamed ITC Limited in 1974. It faces competition from the following companies-

• Dabur
• Procter and Gamble
• Colgate-Palmolive
• HUL
• Nirma Ltd
• L’Oreal
• Marico

ITC Product Strategy

ITC Limited, a diversified conglomerate based in India, has a vast and varied product mix and a diverse range that spans major brands across different sectors.

The new Product Mix of ITC in 2024 is as follows (Source).

1. FMCG (Fast-Moving Consumer Goods): Cigarettes: ITC is a leading manufacturer of cigarettes in India with popular brands like Gold Flake, Classic, and Wills Navy Cut. Foods: Under the ‘Aashirvaad’ and ‘Sunfeast’ brands, ITC offers a range of food products, including wheat flour, biscuits, noodles, snacks, and ready-to-eat meals. Personal Care Products: This includes soaps, shampoos, and fragrances under brands like ‘Fiama Di Wills,’ ‘Vivel,’ and ‘Engage’; Stationery: ITC’s ‘Classmate’ and ‘Paperkraft’ offer a variety of stationery products such as notebooks, pens, and pencils.
2. Hotels: ITC operates a chain of luxury hotels under the ‘ITC Hotels’ brand, known for their high standards of hospitality and service.
3. Paperboards, Paper, and Packaging: ITC produces a range of paperboards, specialty papers, and packaging materials catering to various industrial requirements.
4. Agri-Business: The company’s agri-business division deals in procuring and exporting agricultural commodities like wheat, rice, soybeans, coffee, and leaf tobacco.
5. Information Technology: Through its subsidiary, ITC Infotech, the company provides IT services and solutions to enterprises in various sectors.
6. Lifestyle Retailing: Under brands like ‘Wills Lifestyle’ and ‘John Players, ITC offers a range of lifestyle apparel.
7. Education and Stationery Products: Besides its ‘Classmate’ and ‘Paperkraft’ brands, ITC also provides scholastic products and educational services in the education sector.
8. Safety Matches and Incense Sticks (Agarbattis): ITC manufactures a variety of safety matches and incense sticks under multiple brand names.
9. Dairy Products: The company has also ventured into dairy products, including milk, ghee, and curd, under the brand ‘Aashirvaad Svasti.’
10. Health and Hygiene Products: In response to evolving consumer needs, ITC has introduced various health and hygiene products, including hand sanitizers and disinfectant sprays.

ITC’s product and service industry mix is characterized by its diversity, from FMCG to hospitality and IT services. This broad range allows the company to have marketing, promotion, and advertising strategies that cater to a broad spectrum of consumer needs and target markets and segments.

ITC Pricing Strategy

ITC has an operating income of an estimated 15,037 crores at the end of the fiscal year 2015 and revenues worth 53,748 crores at the end of the financial year 2015-16. It has several business interests and faces lots of competition from rival companies. Moreover, it has decided to market its products in every nook and corner of India. It has maintained a competitive advantage through marketing, promotion, advertising techniques, penetration and pricing strategies, and policies to deal with competitors. It has successfully spread its product reach to the remotest parts of India.

Here’s an analysis of ITC’s pricing, manufacturing, marketing cost, and distribution strategy:

1. Market Penetration Pricing for FMCG Products: ITC employs a market penetration pricing strategy in the highly competitive FMCG sector. By setting prices lower or comparable to competitors, especially for new products, ITC aims to quickly attract a large customer base and establish a strong market presence.
2. Premium Pricing for Luxury Hotels: ITC’s luxury hotels are priced at a premium, reflecting high-quality service, luxury experience, and brand prestige. This pricing strategy targets the upper segment of the market, including business and luxury leisure travelers.
3. Value-Based Pricing in Personal Care and Foods: For personal care and packaged food products, ITC uses a value-based pricing strategy. Prices are set based on the product’s perceived value to the consumer, balancing quality and cost to cater to middle and upper-middle-class segments.
4. Competitive Pricing in Cigarettes and Agri-Business: In the cigarette and agri-business segments, ITC follows a competitive pricing strategy. This involves closely monitoring competitor prices and market trends to set competitive yet profitable prices, ensuring a solid position in these sectors.
5. Dynamic Pricing for Paperboards and Packaging: In the paperboard and packaging business, ITC likely employs dynamic pricing, adjusting prices based on raw material costs, demand fluctuations, and other market factors. This approach helps in managing the volatility in industrial markets.
6. Cost-Plus Pricing for B2B Services: The company might use a cost-plus pricing strategy for business-to-business services, such as those offered by ITC Infotech. This ensures covering the costs while adding a consistent profit margin appropriate for service-oriented B2B offerings.

ITC’s digital marketing and game pricing strategy is a well-calculated blend of various approaches tailored to each market segment’s unique demands and competitive dynamics. This flexibility in its promotion strategies, advertising strategies, and pricing helps ITC penetrate and capture market share and maintain profitability and brand equity across its diverse portfolio.

ITC Place Strategy

ITC has been ranked as one of the best companies in the world, with an experienced and robust management and distribution network in global and domestic markets.

Here’s the place strategy of ITC.

1. Vast Distribution Network: ITC employs an extensive distribution network that reaches even the most remote areas of India. This network, comprising a mix of traditional and modern retail channels, ensures their diverse range of products is easily accessible to a vast consumer base.
2. Strategic Location of Manufacturing Units: ITC’s manufacturing units are strategically located across various regions in India. This helps reduce transportation costs, facilitates quicker response to market demands, and ensures a fresh supply of products, especially in their FMCG and agri-business segments.
3. Use of Digital and E-Commerce Platforms: Recognizing the growing importance of digital sales channels, ITC has been actively increasing its presence on e-commerce platforms. This complements their physical distribution and is particularly significant for their FMCG and lifestyle products.
4. Luxury Hotels in Prime Locations: ITC’s hotels are in prime urban locations and key tourist destinations across India. These locations are chosen for their accessibility and appeal to business and leisure travelers, enhancing the brand’s visibility and prestige.
5. Global Reach for Select Products: While ITC primarily focuses on the Indian market, it has also established a global footprint, particularly for its agri-business products. This includes exporting to several countries, which helps diversify its market presence and reduce dependency on domestic markets.

ITC Promotion Strategy

ITC has a well-built brand presence because of its marketing strategy, diversified portfolio, and extended product portfolio. ITC’s marketing strategy has taken the help of several promotional activities to market its products and create positive brand awareness.

ITC has adopted an aggressive marketing strategy and has taken the help of every promotional tool, like electronic, print, and social media, at its disposal to market its products. It has launched several ad campaigns, which are shown via popular television channels, aired on radio, and displayed via hoardings. The ITC marketing and advertising strategy has also roped in famous personalities like Kareena Kapoor and Shahrukh Khan for better visibility of food brands.

Some Recent Video ads and Print ads for ITC are:

ITC People Strategy

When discussing the “People” aspect of the Service Marketing Mix for ITC (Indian Tobacco Company), you’re looking at how the company manages and utilizes its human resources to deliver and promote its services effectively. This component of digital marketing is crucial for service-based offerings, as its products and employees directly interact with customers and can significantly impact the customer experience and perception of the hotel and service industry and brand. Here are some key points regarding the “People” aspect of ITC’s Service Marketing Mix:

1. Diverse Workforce: ITC employs a diverse workforce, with employees coming from various backgrounds, cultures, and regions. This diversity enables ITC to cater to a wide range of customer preferences and enhances creativity and innovation within the company.
2. Training and Development: ITC invests significantly in employee training and development programs. These programs equip staff with the skills and knowledge to excel, ensuring high-quality service delivery and customer satisfaction.
3. Employee Empowerment: ITC believes in empowering its employees by giving them autonomy and responsibility. This empowerment encourages employees to take initiative, make decisions that benefit the customer, and contribute to the company’s success.
4. Customer-Centric Approach: The staff at ITC is trained to adopt a customer-centric approach, focusing on understanding and meeting the needs of their customers. This approach helps build strong relationships with customers and enhances customer loyalty.
5. Service Excellence: Employees across various levels are encouraged to maintain high standards of service excellence. ITC’s commitment to service quality is reflected in its staff’s professionalism, responsiveness, and courtesy.
6. Reward and Recognition Programs: ITC has reward and recognition programs in place that acknowledge and celebrate the achievements of its employees. These programs motivate employees to maintain high-performance levels and contribute to a positive work culture.
7. Leadership and Management: ITC’s leadership plays a crucial role in shaping the company’s culture and guiding employees toward achieving the company’s service goals. The management team ensures that the company’s values are communicated and upheld across all levels of the organization.
8. Customer Service Teams: ITC has dedicated teams trained to handle inquiries, complaints, and feedback. These teams play a pivotal role in ensuring customer satisfaction and continuous improvement in service delivery.
9. Innovation and Continuous Improvement: Employees are encouraged to innovate and seek continuous improvement in processes and service delivery. ITC’s culture fosters innovation, allowing the company to stay ahead in the competitive market.
10. Community and Stakeholder Engagement: ITC’s people strategy extends to community engagement and building stakeholder relationships. Employees are involved in CSR activities and initiatives contributing to societal welfare, enhancing the company’s reputation and stakeholder trust.

ITC Process Strategy

The “Process” element of the Service Marketing Mix refers to the procedures, mechanisms, and flow of activities by which services are consumed. This is crucial in determining the efficiency and quality of service delivery. For ITC, a conglomerate with a presence in various sectors such as FMCG, hotels, paperboards, packaging, agri-business, and information technology, the “Process” aspect is vital in ensuring customer satisfaction and operational excellence. Here’s how the “Process” element can be articulated in the marketing mix strategy of ITC and the place strategy context of ITC:

1. Streamlined Operations: ITC has developed and implemented streamlined operations across its various business divisions to ensure efficient service delivery. This involves optimizing workflows, reducing redundancies, and leveraging technology for smoother operations.
2. Quality Assurance Processes: ITC adheres to strict quality assurance processes to maintain high standards in its service offerings. This includes regular quality checks, compliance with industry standards, and continuous monitoring and evaluation of service delivery mechanisms.
3. Customer Feedback and Resolution Mechanism: ITC has established a systematic process for collecting customer feedback and addressing complaints or issues. This feedback loop helps in continuous improvement and in making customer-centric decisions.
4. Use of Technology: ITC leverages technology to enhance its service processes. This includes using digital platforms for customer engagement, data analytics for understanding customer preferences, and automation tools to improve operational efficiency.
5. Supply Chain Management: Efficient supply chain management is critical for ITC, especially in its FMCG and agri-business sectors. The company employs sophisticated supply chain processes to ensure timely delivery of products and services, minimizing delays and enhancing customer satisfaction.
6. Training and Development: ITC invests in regular training and development programs for its employees to keep them abreast of the latest trends, technologies, and methodologies in service management. This ensures that the staff is well-equipped to deliver superior service to customers.
7. Standard Operating Procedures (SOPs): ITC has developed SOPs for various service processes. These SOPs ensure consistency in service delivery, irrespective of the location or business division. They cover everything from customer interaction to the handling of grievances.
8. Safety and Hygiene Protocols: ITC strongly emphasizes safety and hygiene protocols in the hospitality and food services sectors. This is especially critical in ensuring customers’ and employees’ health and safety.
9. Innovation in Service Delivery: ITC continuously explores innovative ways to enhance its service delivery processes. This includes experimenting with new service models, delivery mechanisms, and customer engagement strategies.
10. Sustainability Practices: ITC incorporates sustainability practices into its service processes. This includes reducing environmental impact, promoting sustainable sourcing, and incorporating eco-friendly practices in its operations.
11. Integration Across Services: ITC ensures seamless integration across different services, providing a holistic and satisfying customer experience. This is particularly important in businesses like hotels where various services (accommodation, food and beverage, spa, etc.) need to be coordinated effectively.

ITC Physical Evidence Strategy

“Physical Evidence” in the Service Marketing Mix refers to the environment in which the service is delivered, along with any tangible elements that facilitate the performance or communication of the service. For a diversified conglomerate like ITC, which operates across various sectors, including FMCG, hospitality, paperboards, packaging, agri-business, and IT, physical evidence plays a crucial role in essential marketing strategies and shaping customer perceptions and experiences. Here are key points related to the Physical Evidence of ITC’s service marketing strategy and the marketing mix of ITC:

1. Branding and Packaging: ITC’s FMCG products are known for their distinctive packaging and branding, which not only ensures product safety and integrity but also aids in brand recall and customer attraction. The design and aesthetics of the packaging serve as key physical evidence of the brand’s promise and quality.
2. Retail Environment: ITC’s presence in retail, through its wide range of consumer goods, is marked by appealing and well-organized retail spaces. These spaces, whether ITC’s exclusive outlets or its products in multi-brand stores, are designed to enhance customer experience and reflect the brand’s values.
3. Hotel Properties: ITC’s luxury hotel chain, under brands like ITC Hotels and WelcomHotel, is significant physical evidence of its service quality. Its hotels’ opulent architecture, interior design, and landscaping convey a sense of luxury and comfort, directly impacting guests’ perceptions and experiences.
4. Corporate Offices: The design and layout of ITC’s corporate offices reflect the company’s ethos of sustainability and innovation. Often equipped with state-of-the-art facilities and eco-friendly designs, these offices reinforce ITC’s image as a forward-thinking and responsible organization.
5. Online Presence: In today’s digital age, a company’s online presence is also part of physical evidence. ITC’s websites, mobile apps, and social media platforms are designed to be user-friendly, informative, and reflective of the brand’s identity, thus enhancing customer engagement and service delivery.
6. Customer Service Centers: For services that require direct interaction, such as consumer feedback or after-sales support, ITC’s customer service centers and helplines are critical. The professionalism, accessibility, and efficiency of these services strengthen customer trust and satisfaction.
7. Point of Sale Displays: In retail environments, ITC utilizes point-of-sale displays and promotional materials effectively to attract and inform customers. These materials are designed to be eye-catching and informative, providing tangible evidence of the product’s value.
8. Sustainability Reports and Certifications: ITC’s commitment to sustainable practices is often showcased through its sustainability reports, environmental certifications, and awards. These documents and accolades prove the company’s dedication to environmental stewardship and social responsibility.
9. Product Quality and Safety Standards: The tangible quality of ITC’s products, adhering to high safety and quality standards, serves as physical evidence of the brand’s commitment to excellence. This is especially relevant in its food and personal care products.
10. Ambience and Sensory Elements: In the hospitality and retail sectors, ITC pays close attention to the ambience and sensory elements like lighting, music, and scent. These elements are meticulously curated to enhance the customer experience, serving as subtle yet powerful physical evidence of the brand’s quality and ambiance.

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