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ITC Marketing Strategy and Marketing Mix (4Ps)


ITC Marketing Strategy: India Tobacco Company (ITC) is a global leader in the tobacco industry, with a presence in more than 150 countries and a staff of over 35,000. Founded in 1895, it is one of the world’s largest and most respected companies. It has a wide range of products, including cigarettes, cigars, chewing tobacco, and snuff.

ITC Marketing Strategy

The company has faced numerous challenges in recent years, including increased regulations and social pressure to reduce the sale of cigarettes and tobacco products. Additionally, ITC faces challenges from alternative smoking products such as e-cigarettes, which have emerged as a popular choice for smokers in many countries.

This paper aims to provide a comprehensive overview of the history, challenges, and opportunities facing ITC. It will analyze ITC’s past successes and failures, as well as its current strategies for addressing the challenges of the global tobacco industry. Through this analysis, the paper will provide insight into the future of ITC and the global tobacco industry.


History of India Tobacco Company

ITC was founded in 1895 by several British business leaders, including Sir William Hickson. In its early years, the company focused on importing and distributing tobacco products to British colonies in India and around the world. In the 1920s, it began to manufacture its own cigarettes and cigars, and in the next decades, it expanded its operations to other countries.

In the 1940s, it was one of the first companies to produce cigarettes for the Indian market. With the advent of television advertising in the 1950s, ITC became a major brand in India. In the 1960s, ITC began to expand its operations to other countries, including China, and opened its first factory in Nigeria in the 1970s.

History of India Tobacco Company

In the 1980s, ITC underwent a major restructuring, with the aim of becoming a fully integrated consumer goods company. It launched several new brands and acquired stakes in a number of Indian companies. In the 1990s, it expanded its international presence by establishing distribution networks in many countries across the world.

In the 2000s, ITC faced increasing competition from global rivals, including Philip Morris and British American Tobacco. To maintain its competitive edge, ITC launched several new products, including its flagship brand, Classic. In recent years, the company has faced increased scrutiny from regulators and health campaigners, leading it to focus on alternative products such as e-cigarettes.


Overview of Indian Tobacco Market

The Indian tobacco market is one of the most lucrative consumer markets globally. It has a rapidly growing population and a large consumer base, which makes it a lucrative market for tobacco companies. The size of the market is estimated to be worth nearly 573 billion Indian rupees.

The popular products in the Indian tobacco market include cigarettes and bidis of various brands such as Gold Flake, Wills, and Gold Star. The market is highly competitive with various players vying for the attention and loyalty of the consumers.


India Tobacco Company’s Current Marketing Strategy

India Tobacco Company has developed an effective marketing strategy to cater to the Indian consumers. The company has identified its target market to be the urban and semi-urban population, particularly those in the middle-income bracket.

ITC company has employed a wide variety of promotional methods including traditional advertising through print and electronic media, promotional activities such as contests and giveaways, and event-based promotions.

The company has also adopted a pricing strategy that enables it to penetrate deeper into the market and to capture a larger market share. The prices are kept competitive and the products are available in various price ranges, from premium and mid-priced to budget options.


SWOT Analysis for India Tobacco Company



India Tobacco Company is one of the leading companies in the tobacco industry, with a wide range of products and a strong international presence. The company has strong brand loyalty, a strong customer base, and a reliable supply chain. The company has also established a strong research and development team, allowing it to respond quickly to market changes and new consumer trends.



India Tobacco Company has a high cost structure, making it difficult for the company to remain competitive in the face of increasing global competition. The company also lacks focus on consumer trends, resulting in a lack of innovative products and a declining market share. Furthermore, the company’s marketing efforts have been inadequate, resulting in a lack of brand awareness among consumers.



There is an opportunity for India Tobacco Company to increase its market share in emerging markets, where the demand for tobacco products is increasing. The company can also capitalize on its international presence to expand its presence in new markets. Additionally, the company can explore opportunities to expand its product portfolio by launching innovative products that meet the changing needs of consumers.



The most pressing threat facing India Tobacco Company is the increasing regulation of the tobacco industry. The company also faces competition from both traditional tobacco companies and new entrants. Furthermore, the company is vulnerable to price fluctuations in the commodity markets, which can affect the company’s profitability.


Recommendations for Improvement

India Tobacco Company should focus on increasing its presence among younger consumers. The company can do this by launching new products that appeal to younger consumers, as well as increasing its marketing efforts by utilizing digital media and influencers. The company should also consider adjusting its pricing structure to remain competitive in different markets.



India Tobacco Company has a strong presence in the tobacco industry, with a wide range of products, strong brand loyalty, and a reliable supply chain. However, the company is facing increasing competition, as well as increasing regulation of the industry. To remain competitive, the company should focus on increasing its presence among younger consumers, launching new products that appeal to them, and adjusting its pricing to remain competitive in different markets.


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