ITC Mint-O Marketing and Business development analysis

ITC Mint-O Marketing and Business development analysis

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  Mint-O Fresh CompanyITC, one of India’s biggest and most respected private corporations Diversified presence in varied businesses Rapidly gaining market share in fields like Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery Product ITC has two products in the confectionery segment, Mint-O and Candyman Mint-O was originally a Candico product, acquired by ITC in March 2002 Re-launched as Mint-O Fresh with a new packaging and product in October 2004 It is an active mint deposited candy available in two different flavors - Eucalyptus and Cool Green (milder and sweeter in taste).
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  Mint-O Fresh Marketspace: The 50 paisa cough lozenges category is one of the fastest growing sub-segments of the confectionery market This sub-segment poses several challenges, perhaps the biggest of which is the presence of well-established brands like Chlormint (Perfetti), Halls (Cadbury) etc. Adult hard boiled mint confectionery segment is dominated by impulse buying Target Market: The target market for the Mint-O Fresh is primarily the urban-young-single-male-smoker who wants to keep his breath fresh after a cigarette and also impress his colleagues
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  4Ps of Mint-OFresh Product Mint candy categorized as cough lozenge due to manufacturing process Flavors: Eucalyptus flavored: Mint-O Fresh Eucalyptus Clove flavored: Mint-O Cool Green Packaging: Individual mints are packaged in plastic packets Sold by the retailer in Pet Jars Mint-O Fresh Eucalyptus packaged in a blue packet Mint-O Fresh Green packaged in a green package
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  4Ps of Mint-OFresh Price Smallest unit of currency, 50 Paisa, drives the price Industry price is either Rs. 0.50 or Rs. 1.00 per unit Mint-O Fresh is priced at Rs. 0.50 Price not being a differentiating factor thus minimal marketing focus on this aspect A Pet-Jar with a maximum retail price of Rs. 425 contains 850 units with an additional 100 units free
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  4Ps of Mint-OFresh Place Retail Outlets Customers from these locations buy it as a general candy-mint Mint-O Fresh is not marketed towards this market Pharmacies Pharmacies sell mints flavored cough lozenges. Primary market for Mint-O Fresh is the smoking population, whose image is somewhat contrary to that of a pharmacy Paan / Cigarette kiosks Primary customers are cigarette smokers who use the mint to freshen the mount, to subdue cigarette odors. ITC has a strong presence with cigarette kiosk retailers as distributors of ITC’s tobacco products
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  4Ps of Mint-OFresh Promotion Advertising TV advertisements tag line “ Agar laila ko karna ho impress, to khao Mint-O Fresh ” clearly targets the male youth of the country Point-of-sale boards ITC has promoted Mint-O Fresh prominently at the cigarette kiosks Cigarette-kiosk retailer promotions Foreign trips/Free products offered to vendors based on sales numbers Free transportation for bulk delivery once a week Vendors with exclusive sales contracts with ITC sell only Mint-O Fresh
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  Positioning Member ofthe Mints category The brand “Mint-O” identifies the core product offering Provides fresher breath Communicates brand benefits Helps you impress Targeting male youth conscious about their breath, typically smokers
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  Environmental Analysis Presenceof various multinational players Perfetti, Cadbury, Nestle Innovative advertizing campaigns Chlormint – Dobara mat poochna Mint-O (Normal) – Dimaag ki batti jala de Mint is the fastest growing within confectionary Most mints follow a mass market strategy
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  SWOT Analysis StrengthExcellent distribution network High market share Clear segmentation Weakness Low industry pricing Low brand salience Relatively weak advertisement Opportunity Unmet needs of smokers Threat Competition from Perfetti – Also targeting smokers Increasing input costs
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  Recommendations Product ModificationEnable teeth tobacco-stain fighting properties Package mint in classy tin boxes Marketing Modification Promote Mint-O Fresh in Bars
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  Recommendation 1 Stain preventing mint Cigarette smokers known to be image conscious Tobacco stains on teeth a concern for smokers Marketing could emphasize that it’s easier to remove stains shortly after a smoke than later Need to ensure growth profit greater than costs of implementing desired property
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  Recommendation 1 Surveyresults 73% of mint users would like to use new mint 56% of users who prefer non - Mint-O Fresh willing to switch to new mint. 81% of those who want new mint willing to pay Rs . 1
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  Recommendation 2 Strong mints in tin boxes Cigarette purchasers of packets might need a mint after every cigarette Classy mint-boxes appeal to image conscious of cigarette smokers Upscale image of boxes something for other mint buyers to aspire to Potential to make boxes “collectable” items
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  Recommendation 3 Mints in Pubs & Bars ITC has significant distribution channels in Bars and Restaurants (HORECA channel) Use this strength in Bars to promote Mint-O Fresh into customers’ consideration set Bars are a natural place where smoking related products synergize with the ambiance Can be a venue to promote the boxed mint
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  Questions? Thank you.