Bcg matrix of ITC

BY,
POORNIMADEVI.P
SREEDHAR.C
SYAM KUMAR.I
JIBU MATHEW
ROJITH ABRAHAM
 INTRODUCTION
ITC Limited, is an Indian
conglomerate with a turnover of US
$ 6 billion and a market capitalization
of over US $ 22 Billion.

The company is currently headed by

YOGESH CHANDER DEVESHWAR.
CONTD

It employs over 26,000 people at

more than 60 locations across India
and is listed on FORBES 2000.

ITC Limited completes 100 years on

24th August, 2010.
 ITC Business Portfolio
FMCG
Cigarettes Foods Personal Care Lifestyle Retailing

Education & Stationery Matches Incense Sticks

Paper & Agri Information

Hotels Packaging Technology
Business
 Cigarettes

W. D. & H. O. Wills
Gold Flake
Navy Cut
Insignia
India Kings
Classic (Verve, Regular, Mild & Ultra
Mild)
Contd

Silk Cut
Scissors
Capstan
Berkeley
Bristol
Lucky Strike
Flake.
 Strategies

Market leadership

Powerful brands across segments

Extensive FMCG distribution network

Direct serving to 2 million retail outlets
 Hotels

ITC Welcomgroup Hotels, Palaces

and Resorts is India's second largest
hotel chain with over 100 hotels.
They have 4 brands in
hotels
competitors

TAJ GROUP OF HOTELS

OBEROI GROUP OF HOTELS

 Strategies
Their strategy has been clearly to focus on a
few niche areas and provide unique and
differentiated value propositions to their guests.

Their brands ITC Hotel, Welcome Hotel, Fortune

and Welcome Heritage, which spans luxury to
mid-market segments, have been on a growth
trajectory in recent months. They have
leveraged the unique advantages that India
offers in terms of diversity and heritage.
 Contd

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UHpersictaaglee-mid-scale FWoerltcuonmeHHoerteitlasge ""PUrnoimquiseeEoxfpTerruieenVceasl"ue"
The physical architecture of their
properties are unique and offer a
local flavour to discerning guests.
 In FMCG, ITC has a strong
presence in:

Foods business
Kitchens of India

Aashirvaad

Minto

Sunfeast

Candyman
Contd
Bingo brands in ready to eat.

Staples

Confectionery

Snack Foods
Personal Care Products
business

Fiama di Wills
Vivel
Essenza di Wills
Superiabrands of products in
perfumes
Haircare and skincare
Safety Matches and
Agarbattis

Ship(through ownership of WIMCO)

IKno
Mangaldeep
Aimbrands
 Competitors

HUL

BRITANNIA

PARLE

NESTLE
 Strategies
Their strategy is to consolidate and
offer a greater range in the existing
categories and grow these markets.
Agri-business

ITC's Agri-Business is India's second largest

exporter of agricultural products. ITC is one
of the India's biggest foreign exchange
earners (US $ 2 billion in the last decade).
The Company's 'e-Choupal' initiative is
enabling Indian agriculture significantly
enhance its competitiveness by
empowering Indian farmers through the
power of the Internet.
Contd

The company places computers with

Internet access in rural farming
villages; the e-Choupals serve as
both a social gathering place for
exchange of information (choupal
means gathering place in Hindi) and
an e-commerce hub.
 ABHISHEK JAIN
Soya Farmer
& e-Choupal Sanchalak
Dahod Village,
Raisen District,
Madhya Pradesh

ABHISHEK JAIN

Before ITC introduced us to e-Choupal, we were restricted to

selling our produce in the local mandi. We had to go through
middlemen and prices were low. ITC trained me to manage
the Internet kiosk and I became the e-Choupal Sanchalak in
my village. Today we are a community of e-farmers with
access to daily prices of a variety of crops in India and
abroad this helps us to get the best price. We can also find
out about many other important things weather forecasts,
the latest farming techniques, crop insurance, etc. e-Choupal
has not only changed the quality of our lives, but our entire
outlook.
Contd

E-Choupal Now
States covered 10
Villages covered 40,000
No. of e-Choupals 6,500
Farmers e-empowered 4 million
Strategies
Paper boards & specialty
papers
Coated Virgin Boards
Coated Recycled Boards

Barrier Poly Coated

Cast Coated
Graphic
Others

Contd

Cigarette Tissue and Componen

Fine Printing
Packaging
Decor Papers
Niche Products
 Business wise Sales data
Business/ Year Growt Value (Rs in Crore)
h 2005 2004
%

FMCG- 8.4 10002.5 9230.27

Cigarettes 4
FMCG-Others 85.2 563.39 304.16
Hotels 124.1 577.25 257.53
Agribusiness 4.2 1780.07 1708.77
Paper & pkg. 24.9 1565.31 1253.29
Net revenue 12.99 13349.5 11815.04
CAGR during FY 2005-
2008
Category CAGR Growth parameters
Cigarette 10.9 % Pricing power
s
Hotels 22.7% Inward traffic,
occupancy
Paper 17.2 % Capacity utilization,
value added products
Agri 34.3 % E-choupal, choupal
business sagar,
FMCG- 60.2 % Fast track, decent
Others share.
 Market share of ITC Ltd.
Outstanding market leader
Cigarettes, Hotels, Paperboards,
Packaging and Agri-Exports.
Gaining market share
Nascent businesses of Packaged
Foods & Confectionery, Branded
Apparel and Greeting Cards.
Segment Dominance Contribution %
Revenue PBIT
Cigarettes 70% share 77.0% 87.7%

Paper & Packaging board No. 1 7.3% 10.7%

Packg. in Asia
Agri 1of the largest xporters 7.0% 3.7%
business from India
Hotels ITC Group ranks No.2 4.3% 5.4%

FMCG 20% share of greeting 4.4% -7.5%

(Others) cards market,
'Aashirvaad' atta is
No.1 in branded
segment
 The BCG Matrix for ITC Ltd.
Stars ?
Hotels FMCG- Others
Paperboards/
Packaging.
Agri business.
Cows Dogs
FMCG-Cigarettes
Major strategies followed by
ITC:
Entering into less competitive or unexplored
markets (ready to eat, staples, wafers)
Distribution network
Market differentiation ( Ready to eat, biscuits)
Cost control strategy (all products)
Extensive advertising (biscuits,
confectionary, wafers)
Regular introduction of new products (all
products)