TRIPLE BOTTOM LINE CONTRIBUTION

TRIPLE BOTTOM LINE CONTRIBUTIONLEVERAGING SECONDARY BRAND ASSOCIATIONS TO BUILD BRAND EQUITY

Established in 1910 as the Imperial Tobacco Company of India Limited, ITC Limited or ITC is an Indian conglomerate. Its diversified business includes five segments: Fast-Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri Business & Information Technology.2

SECONDARY BRAND ASSOCIATIONSWHATWHY

What Marketing strategy of using certain aspects or transferring entities of the brand to gain/build brand equityWhy to create strong, favourable and unique associations, if exisiting brand associations are deficient in some way. To reinforce existing assocations and responses in fresh and different way.3

HOW TOLEVERAGE SECONDARY BRAND ASSOCIATIONSCOMPANIESOTHER BRANDSCOUNTRIESCHANNELS OF DISTRIBUTIONSPOKESPERSONSCHARACTERSEVENTSOTHER THIRD PARTY SOURCES

FACTORS PREDICTING EXTENT OF LEVERAGEAWARNESS AND KNOWLEDGE OF THE ENTITIYMEANINGFULNESS OF THE KNOWLEDGE OF THE ENTITYTRANSFERABILITY OF THE KNOWLEDGE OF THE ENTITY

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GEOGRAPHY

CHANNELS OF DISTRIBUTION

So let us look, how ITC limited leverages secondary brand assocaitions. ITC uses purposeful brand names such as aashirvad Select in the northern market, Aashirvad MP chakki in the western market and Aashirvad in the east market. ITC E-choupal Saagar, an organised retail mall cater to rural and semi urban population.

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CO-BRANDING

LICENSING

Hospitality partner of IPL ITC hotels through co-obranding and by licensing its Fiama Di wills brand to Disney it creates secondary brand assocations.7

CELEBRITY ENDORSEMENTS

THIRD PARTY SOURCES

Through Celebrity Endorserments such as Sunfeast Sachinss Fit KIT and third party Sources Such as Awards And accolades from United Nation it leverages secondary brand associations.8

ITCs TRIPLE BOTTOM LINE CONTRIBUTION

BRAND TRUST

ITC contributes to a larger societal purpose by fashioning corporate strategies that simultaneously build economic, environmental and social capital for the nation and in return it develops brand trust.9

SUSTAINABILITY INITATIVESITC's Mission Sunehra Kal for Sustainable & Inclusive Growth

HORIZON 1Sustainable Livelihoods TodayITC E-COUPALSOCIAL FORESTRYSUSTAINABLE AGRICULTURESOIL & MOSITURE CONSERVATION TOWARDS WATER SECURITYANIMAL HUSBANDRY SERVICESWOMENS ECONOMIC EMPOWERMENT

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SUSTAINABILITY INITATIVESHORIZON 2CREATING CAPABILITIES FOR TOMORROWPRIMARY EDUCATIONVOCATIONAL TRAININGSANITATIONSOLID WASTE MANAGEMENTITC's Mission Sunehra Kal for Sustainable & Inclusive Growth

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ITC E-CHOUPAL SYSTEM

Farmers

SanchalakPC & Internet

Choupal SagaarSAMJOYAK

ITC

Before ITC E-CHOUPALITC E-CHOUPALITC increases trust and fairness

The e-Choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture, characterised by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others.

The Model in Action:

Appreciating the imperative of intermediaries in the Indian context, e-Choupal leverages Information Technology to virtually cluster all the value chain participants, delivering the same benefits as vertical integration does in mature agricultural economies like the USA.

e-Choupal makes use of the physical transmission capabilities of current intermediaries aggregation, logistics, counter-party risk and bridge financing while disintermediating them from the chain of information flow and market signals.

With a judicious blend of click & mortar capabilities, village internet kiosks managed by farmers called sanchalaks themselves, enable the agricultural community access ready information in their local language on the weather & market prices, disseminate knowledge on scientific farm practices & risk management, facilitate the sale of farm inputs (now with embedded knowledge) and purchase farm produce from the farmers doorsteps (decision making is now information-based).

Real-time information and customised knowledge provided by e-Choupal enhance the ability of farmers to take decisions and align their farm output with market demand and secure quality & productivity. The aggregation of the demand for farm inputs from individual farmers gives them access to high quality inputs from established and reputed manufacturers at fair prices.

As a direct marketing channel, virtually linked to the mandi system for price discovery, e-Choupal eliminates wasteful intermediation and multiple handling. Thereby it significantly reduces transaction costs.

e-Choupal ensures world-class quality in delivering all these goods & services through several product / service specific partnerships with the leaders in the respective fields, in addition to ITCs own expertise.

While the farmers benefit through enhanced farm productivity and higher farm gate prices, ITC benefits from the lower net cost of procurement (despite offering better prices to the farmer) having eliminated costs in the supply chain that do not add value.

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ITCS E-CHOUPAL INITATIVECHOUPAL PRADARSHAN KHETCHOUPAL SAAGARS

Started in 2005-2006 Crop portfolio of 10 Covered 64000 hectaresReaches out to more than 60000 farmersMulti purpose hubsAvailabilty, accessibility and affordability of quality products23 Choupal Saagars across 3 states200000 sq ft. of dedicated retail space"Zaroratein anek jagah ek"

Choupal pradarshan khet - In line with its mission of improving the quality of life in rural India, ITC's Agri Business has launched a flagship extension programme called 'Choupal Pradarshan Khet' (CPK) or demonstration plots to help farmers enhance farm productivity by adopting agricultural best practices. Started in 2005-06, the crop portfolio includes soya, paddy, cotton, maize, bajra, wheat, gram, mustard, sunflower and potato. This initiative, has covered over 64,000 hectares and has a multiplier impact and reaches out to more than 60,000 farmers.Choupal Saagars are multi-purpose hubs that handle procurement of agricultural commodities and sale through rural hypermarkets across the states of Uttar Pradesh, Madhya Pradesh and Maharashtra. Located in Tier III and Tier IV cities, these facilities address the issues of availability, accessibility and affordability of quality products and services to rural and semi urban population. ITC's Agri Business has set up 23 Choupal Saagars across the three states with over 200,000 square feet of dedicated retail space.

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ITCS E-CHOUPAL INITATIVE

CHOUPAL MAHOTSAVCHOUPAL HAAT1500 villages, over 150000 rural households across 4 statesPull based environmentOpportunity to interact with target audienceMahila Choupal Haat, School Choupal, Swasthya ChoupalGrahak Diwas for specific targer segment based on demographics3 day biannual eventMulti-brand consumer engagement10000 consumers200 catchement vllages in each location

Choupal Mahotsav, a three-day biannual event, is a multi-brand consumer engagement platform that builds on the framework of entertainment, information and shopping at ITC Choupal Saagars. The key attractions include consumer engagement platforms and information sessions, health camps, dedicated brand and product zones, kid zones, sporting and entertainment events, games and schemes. ensure attendance of over 10,000 consumers from 200 catchment villages in each location for over three days.

The Choupal Haat is a unique platform developed through e-Choupal for active engagement with the rural audience in an exciting, accessible and pull-based environment. The Haat provides an opportunity to closely interact with and understand the needs of the target audience and offer solutions through an eco-system of ITC and its multiple partners. Choupal Haats have further added to the reach of ITC e-Choupal by increasing multi-fold its direct touch with villagers. For different customer groups, ITC has developed customised Choupal Haats like Mahila Choupal Haat for women, School Choupal for children, Swasthya Choupal for people with multiple illnesses and Grahak Diwas for specific target segments based on demographics. 1500 villages, over 150,000 rural households across 4 states every monthOver 125,000 enquiries for automobilesOver 10,000 villagers inducted in financial inclusion drive across 900 villagesDedicated network of over 70,000 rural retailers beyond feeder marketsReaches over 50,000 school children annually for brand sensitisation & awareness

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ITCS E-CHOUPAL INITATIVE

SWASTHYA CHOUPALConducted over 5000 villageNetwork of 300 women micro entreprenuersOver 100000 door-to-door visits Participation in 3000+ special village events

Launched in June 2000Reached out to over 4 million farmersIn over 35000 villages6100 e-ChoupalsAcross 10 statesE-CHOUPAL EXECUTION

Swasthya Choupal : ITC e-choupal rural health inititiatve:

The Swasthya Choupal comprises partnerships between ITC's Agri Business, which reaches deep into rural communities, with several large and medium pharmaceutical, personal care and consumer product manufacturers and social marketing organisations. The initiative is designed to address the lack of access to credible and trustworthy health information, products and services in rural India.

Network of over 300 women micro entrepreneurs across 10 districtsConducted over 5,000 village level women-centric group meetings on health issuesOver 100,000 door-to-door visits to induce behaviour change and improve health seeking behaviour in the communityParticipation in 3,000 + special village events (Village Health Day, Village Haats, School Awareness Sessions, Immunization Days)Over 30,000 diarrhoeal episodes prevented through provision of ORS and Zinc in the community

The Status of Execution:

Launched in June 2000, 'e-Choupal', has already become the largest initiative among all Internet-based interventions in rural India. 'e-Choupal' services today reach out to over 4 million farmers growing a range of crops - soyabean, coffee, wheat, rice, pulses, shrimp - in over 35,000 villages linked through 6,100 e-Choupals across ten states (Madhya Pradesh, Haryana, Uttarakhand, Karnataka, Andhra Pradesh, Uttar Pradesh, Rajasthan, Maharashtra, Tamil Nadu and Telengana).

The problems encountered while setting up and managing these e-Choupals are primarily of infrastructural inadequacies, including power supply, telecom connectivity and bandwidth, apart from the challenge of imparting skills to the first time internet users in remote and inaccessible areas of rural India.15

COMPANY

GEOGRAPHY

Corporate or family brand can be a source of much brand equity. For example, corporate brand may evoke associations of common products attributes, benefits, or attitudes, people and relationship, programs and values and corporate credibility. Here notice how e-choupal logo capitalizes on brand ITC. The ITC logo comes above the E-choupal Logo and occupies a larger part of the space.ITC uses purposeful brand names such as aashirvad Select in the northern market, Aashirvad MP chakki in the western market and Aashirvad in the east market.16

CO-BRANDING

Over the years, Choupal Mahotsav has facilitated quality customer interactions and engagement across the Automobiles, FMCG, Financial Services, Agricultural Inputs/Implements, Telecom, Healthcare and Construction sectors. Some of the eminent participants in the previous editions are ITC Sunfeast and Superia, Maruti Suzuki, Mahindra Bolero Pik-up, Tata Motors, Eicher Tractors, TVS Motors, Sundaram Finance, ICICI Prudential, Usha International, Singer, Intex, ACC Cements, Texmo Pumps, and Emami.

Our partners in the different haat formats include ITC's Personal Care & Foods Business, USHA International, Abbott Limited, Tata Steel, Tata Motors, Pidilite, Airtel, Nokia, State Bank of India, Maruti Suzuki and FDC Limited.

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Innovation for India Award 2006 for ITC e-ChoupalThe Corporate Social Responsibility Award 2004 from The Energy and Resources Institute (TERI)Ashoka - Changemakers 'Health For All' Award 2006Stockholm Challenge 2006 awardDevelopment Gateway Award 2005United Nations Industrial Development Organisation (UNIDO) Award Golden Peacock Innovation Award 2004World Business Award By ICC, IBLF & UNDPTHIRD PARTY SOURCES

United Nations Industrial Development Organisation (UNIDO) Award at the international conference on Sharing Innovative Agribusiness Solutions 2008 at Cairo for ITC's exemplary initiatives in agri business through the e-Choupal.The Ashoka - Changemakers 'Health For All' Award 2006 for the Rural Health Services model for delivery of health services through the e-Choupals.The Stockholm Challenge 2006 award for leveraging information technology for the economic development of rural communities.Innovation for India Award 2006 for ITC e-Choupal in the Social Innovations category for business organisations. The first-of-its-kind in India that was based on parameters like the number of lives impacted, degree of impact on organisation and environment, uniqueness, leverage of resources and level of scalability and sustainability. ITC e-Choupal was declared as one of 'India's Best Innovations'.The Development Gateway Award 2005 (previously known as the Petersberg Prize) for the trailblazing e-Choupal initiative. ITC is the first Indian company and the second in the world to win this prestigious award.The 'Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging Economies for 2005'. The Company received this award for its ITC e-Choupal and social and farm forestry initiatives that have transformed lives and landscapes in rural India.The Corporate Social Responsibility Award 2004 from The Energy and Resources Institute (TERI) for the e-Choupal initiative. The Award provides impetus to sustainable development and encourages ongoing social responsibility processes within the corporate sector.The inaugural 'World Business Award', instituted jointly by the International Chamber of Commerce (ICC), the HRH Prince of Wales International Business Leaders Forum (IBLF) and the United Nations Development Programme (UNDP). This award recognises companies that have made significant efforts to create sustainable livelihood opportunities and enduring wealth in developing countries.The 'Enterprise Business Transformation Award' for Asia Pacific (Apac), instituted by Infosys Technologies and Wharton School of the University of Pennsylvania. PC Quest's IT Implementation Award in the 'Best Project' category.The Golden Peacock Innovation Award 2004.The NASSCOM award for 'Best IT User in FMCG' in 2003. The Award is a recognition of ITC's successful integration of its IT usage with its business processes.The Seagate Intelligent Enterprise of the Year 2003 Award, for the most innovative usage of Information Technology.

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YOUTUBE

IN THE NEWS

WEBSITE

MEDIA PRESENCES

https://www.youtube.com/user/itccorpcomm

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RECAP

6Overview of media presences

How ITCs E-choupal leverages secondary brand association5

ITCs e-Choupal initiative An overview4

How ITC leverages secondary brand associations3

2How secondary brand associations can be leveraged

1ITC and its portfolio of Brands

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DISCLAIMER

PGP01016IIM SIRMAURCreated by Roziwala Suraj during the PGP Brand Management Course taught by Prof. Sameer Mathur at IIM Sirmaur

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