Itc bcg matrix

Itc bcg matrix

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  By: Neha PunjabiAnkit Agarwal
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  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.
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  CONTD… It employsover 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.
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  ITC Business Portfolio FMCG Paper & Packaging Hotels Agri Business Information Technology Cigarettes Personal Care Foods Lifestyle Retailing Education & Stationery Matches Incense Sticks ,
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  Cigarettes… W. D.& H. O. Wills Gold Flake Navy Cut Insignia India Kings Classic (Verve, Regular, Mild & Ultra Mild)
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  Contd… Silk Cut Scissors Capstan Berkeley Bristol Lucky Strike Flake .
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  Strategies Market leadershipPowerful brands across segments Extensive FMCG distribution network Direct serving to 2 million retail outlets
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  Hotels… ITC WelcomgroupHotels, Palaces and Resorts is India's second largest hotel chain with over 100 hotels.
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  They have 4brands in hotels
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  competitors TAJ GROUPOF HOTELS OBEROI GROUP OF HOTELS
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  Strategies Their strategyhas 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.
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  Contd… The physicalarchitecture of their properties are unique and offer a local flavour to discerning guests.
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  In FMCG, ITChas a strong presence in: Foods business Kitchens of India Aashirvaad   Minto   Sunfeast   Candyman 
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  Contd… Bingo  brandsin ready to eat. Staples Confectionery Snack Foods
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  Personal Care Productsbusiness Fiama di Wills   Vivel   Essenza di Wills   Superia  brands of products in perfumes Haircare and skincare
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  Safety Matches andAgarbattis Ship  (through ownership of WIMCO) IKno   Mangaldeep   Aim  brands
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  Competitors HUL BRITANNIAPARLE NESTLE
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  Strategies Their strategyis to consolidate and offer a greater range in the existing categories and grow these markets.
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  Agri-business… ITC's Agri-Businessis 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.
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  Contd… The companyplaces 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.
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  ABHISHEK JAIN SoyaFarmer & e-Choupal Sanchalak Dahod Village, Raisen District, Madhya Pradesh
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    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.
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  Contd… E-Choupal Now States covered 10 Villages covered 40,000 No. of e-Choupals 6,500 Farmers e-empowered 4 million
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  Strategies
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  Paper boards &specialty papers Coated Virgin Boards Coated Recycled Boards   Barrier Poly Coated Cast Coated Graphic Others    
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  Contd… Cigarette Tissueand Components Fine Printing Packaging Decor Papers Niche Products
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  Business wise Salesdata Business/ Year Growth % Value (Rs in Crore) 2005 2004 FMCG-Cigarettes 8.4 10002.54 9230.27 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 13349.58 11815.04
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  CAGR during FY2005-2008 Category CAGR Growth parameters Cigarettes 10.9 % Pricing power Hotels 22.7% Inward traffic, occupancy Paper 17.2 % Capacity utilization, value added products Agri business 34.3 % E-choupal, choupal sagar, FMCG-Others 60.2 % Fast track, decent share.
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  Market share ofITC 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.
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  Segment Dominance Contribution% Revenue PBIT Cigarettes 70% share 77.0% 87.7% Paper & Packg. Packaging board – No. 1 in Asia 7.3% 10.7% Agri business 1of the largest xporters from India 7.0% 3.7% Hotels ITC Group ranks No.2 4.3% 5.4% FMCG (Others) 20% share of greeting cards market, 'Aashirvaad' atta is No.1 in branded segment 4.4% -7.5%
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  The BCG Matrixfor ITC Ltd. Stars Hotels Paperboards/ Packaging. Agri business. ? FMCG- Others Cows FMCG-Cigarettes Dogs
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  Major strategies followedby 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)
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