Product Line

A
Presentation
on
Product Line
of
(Food Division in FMCG)
PRESENTED BY :
JAYKISHAN AMBASANA (04)

BAROT AAYUSHI (08)
MITAL KANDIYA (36)
INTRODUCTION TO CONCEPT
> Product-Line Length
> Product-Line :
Product-Line is total number of products in one segment.

e.g. ITC provides different product lines in food sector such as
Snack Foods in which they provide sunfeast biscuits, Pasta
Treat, and Bingo.
> Product-Length :
Product-Length is total number of segments in one sector.

e.g. ITC has four different segments such as Ready to Eat
Foods, Snack Foods, Staples, and Confectionary.
> Objectives of Product-Line Length
• One objective is to create a product line to induce
upselling.
• Another objective is to create a Product-Line that facilitates

cross-selling.
• Still another objective is to create a Product-Line that

protects against economic ups and downs.
• Companies stretch Product-Length as to cover maximum

market share .
>Two Ways of Lengthening Product-Line
• A company lengthen its Product-Line in two ways :
> By Line Stretching
> By Line Filling
Besides this, Company also exercises one more

activity :
> Line Modernization, Featuring, and Pruning

> Line Stretching
• Line Stretching occurs when company lengthen its
Product-line beyond its current range.
• Line Stretching can be done in three ways :
> Down-Market Stretch
> Up-Market Stretch
> Two-Way Stretch

> Line Filling
• A product line can also be lengthened by adding more
items within the present range.
• There are several motives for Line Filling :

 Reaching for incremental profits
 Trying to satisfy dealers who complain about lost sales because of missing
items in the line
 Trying to utilize excess capacity
 Trying to be the leading full-line company
 And trying to plug holes to keep out competitors

> Line Modernization, Featuring, & Pruning
• Line Modernization :
Line modernization is to introduce more advanced versions of the products.
• Line Featuring :
Line featuring is to select one or few items in the line by the product line
manager.
• Line Pruning :
In line pruning the product line manager must periodically review the line for
deadwood that is depressing profits. The weak items can be identified through
sales and cost analysis.
> Product Assortment of ITC
> Actual Analysis
 Here our actual analysis is about ITC in business line of FMCG in
product line length of food sector.
 FOOD SECTOR:
• ITC made its entry into the branded & packaged Foods business in August
2001 with the launch of the Kitchens of India brand.
• The Foods business is today represented in 4 categories in the market.

These are as follows:
• Ready To Eat Foods

• Staples
• Confectionery
• Snack Foods
>Product Line Length of ITC in Food
> Strategies Adopted By ITC in Food
 LINE STRETCHING:

• ITC has been a leader in the tobacco business, but it realize from the
upcoming trends that remaining with a single business is not a noble
thought, moreover the company was threatened of the anti-tobacco
campaign.
• Therefore the company decided to venture into:
• InfoTech with ITC InfoTech

• Foods via Kitchens of India
• greeting cards through Expressions
• Lifestyle retailing through Wills Sport.
• ITC has adopted this concept of line stretching strategy because of a
competition from many competitors like, Parle, Britannia, Pepsico etc.
1. DOWN –MARKET STRETCH:
• The pricing of the ITC food division depends upon the Customers’ demand
schedule, the cost function and the competitors’ price.
• The pricing of the company is such that it caters to the need of all income groups
of people but special provision has been kept for Low and middle income group,
and their pricing are competitive with respect to other players like Britannia, Parle
and Brisk farm.

• Here ITC has been attacked by a low-end competitor, like Parle who has launched
biscuits of Rs. 5/-. ITC also launched sunfeast biscuits worth Rs. 5/- which was
Rs.10 earlier.
2. UP-MARKET STRETCH:
• ITC has adopted this up-marketing stretch in such a way that it has launched a
product range of Sunfeast Dark Fantasy, Sunfeast Dark Fantasy Choco Fills,
Sunfeast Golden Bakery in three distinct flavours - Butter-Nut,
Butterscotch and Choco-Nut cookies and Cream Biscuits.
• So the company’s strategy over here is to provide a qualitative product though it

is comparatively costlier than the other products.
 LINE FILLING:

• Here, In July 2003, ITC has launched a product range of sunfeast biscuits like,
sunfeast Glucose, Sunfeast Milky Magic, Sunfeast Marie Light, Sunfeast Dream
Cream, Sunfeast Special etc. with the concept of line feeling.
• If we talk about other segment i.e, confectionery segment, we can say that ITC
has mainly two brands in this segment – ‘mint-o’ and ‘candyman’.
• Here, ITC introduced ‘mint-o’ with new and improved product and packaging,
‘mint-o cool blue’, ‘mint-o gol’ and ‘mint-o fresh’. So this is called line feeling by
ITC.
> Bibliography

 INTRODUCTION TO THE CONCEPT :

Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha, “Marketing Management- A south
Asian Perspective” edition 13th. Pg No. 323 to 327

 OTHER REFERANCES :

<http://www.itcportal.com/itc-business/fmcg/foods.aspx>
<http://en.wikipedia.org/wiki/ITC_Limited#List_of_products_.26_brands>
<http://www.itcportal.com>

Thank You…

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A

(Food Division in FMCG)

JAYKISHAN AMBASANA (04)

Product-Line is total number of products in one segment.

Product-Length is total number of segments in one sector.

• Another objective is to create a Product-Line that facilitates

• Still another objective is to create a Product-Line that

• Companies stretch Product-Length as to cover maximum

> By Line Stretching

> By Line Filling

Besides this, Company also exercises one more

> Line Modernization, Featuring, and Pruning

• Line Stretching can be done in three ways :

> Down-Market Stretch

> Up-Market Stretch

> Two-Way Stretch

• There are several motives for Line Filling :

 Trying to utilize excess capacity

 Trying to be the leading full-line company

 And trying to plug holes to keep out competitors

• The Foods business is today represented in 4 categories in the market.

• Ready To Eat Foods

• Therefore the company decided to venture into:

• InfoTech with ITC InfoTech

• So the company’s strategy over here is to provide a qualitative product though it

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