How the brand extension strategy helped Indian Tobacco Company (ITC) to eventually climb the ladder of success

Brand extension strategy is followed by Indian Tobacco Company (ITC). Line extension strategy in which both the Horizontal and vertical line extensions are involved is also followed by the company. ITC due to its strong research and development has from time to time ventured into different categories with newer products.

In 1975 ITC due to the external political, regulatory and social factors launched its Hotels Business to save itself financially and to protect the company’s image. This diversification proved helpful since today, ITC Hotels is brand name altogether as far as the premium luxury hotels of India are concerned. Wills lifestyle was started in the year 2000. Company moved onto the FMCG sector in 2001 which was named as ITC Foods which now consists of a variety of products which again have been extended into different flavours and price ranges. Ashirvaad Atta (flour Segment), Sunfeast (Biscuits segment) and Bingo (Snacks Segment) and they are further extended.

Stationary products quickly gained prominence in the market due to strong positioning approaches adopted early on. Paperkraft which was started in 2002 as a premium range of notebooks was further extended into office consumable segment, text liners, ink markers, and white board markers. Classmate under the stationary brands category was launched in 2003 and was further extended into school bags, children’s books, slam books, geometry boxes, etc.

In 2005, ITC launched its range of personal care products and in that too they further extended to reach different segments of the market. Their effort was to focus on brand extension strategies of the major brands rather than confusing customers with many sub brands with different names. Fiama for the upper class and Superia were again extended with their variants to cater different target markets.

So yes, ITC since a long time is following a brand extension strategy which has helped them grow as a strong brand by catering to a wide range of target segments. Their success lies in their calculated brand extension strategies as they have adopted those from time to time.

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