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Itc bcg matrix
- 1. By: Neha Punjabi Ankit Agarwal
- 2. 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.
- 3. 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.
- 4. ITC Business Portfolio FMCG Paper & Packaging Hotels Agri Business Information Technology Cigarettes Personal Care Foods Lifestyle Retailing Education & Stationery Matches Incense Sticks ,
- 5. Cigarettes… W. D. & H. O. Wills Gold Flake Navy Cut Insignia India Kings Classic (Verve, Regular, Mild & Ultra Mild)
- 6. Contd… Silk Cut Scissors Capstan Berkeley Bristol Lucky Strike Flake .
- 7. Strategies Market leadership Powerful brands across segments Extensive FMCG distribution network Direct serving to 2 million retail outlets
- 8. Hotels… ITC Welcomgroup Hotels, Palaces and Resorts is India's second largest hotel chain with over 100 hotels.
- 9. They have 4 brands in hotels
- 10. competitors TAJ GROUP OF HOTELS OBEROI GROUP OF HOTELS
- 11. 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.
- 12. Contd… The physical architecture of their properties are unique and offer a local flavour to discerning guests.
- 13. In FMCG, ITC has a strong presence in: Foods business Kitchens of India Aashirvaad Minto Sunfeast Candyman
- 14. Contd… Bingo brands in ready to eat. Staples Confectionery Snack Foods
- 15. Personal Care Products business Fiama di Wills Vivel Essenza di Wills Superia brands of products in perfumes Haircare and skincare
- 16. Safety Matches and Agarbattis Ship (through ownership of WIMCO) IKno Mangaldeep Aim brands
- 17. Competitors HUL BRITANNIA PARLE NESTLE
- 18. Strategies Their strategy is to consolidate and offer a greater range in the existing categories and grow these markets.
- 19. 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.
- 20. 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.
- 21. ABHISHEK JAIN Soya Farmer & e-Choupal Sanchalak Dahod Village, Raisen District, Madhya Pradesh
- 22. 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.
- 23. Contd… E-Choupal Now States covered 10 Villages covered 40,000 No. of e-Choupals 6,500 Farmers e-empowered 4 million
- 24. Strategies
- 25. Paper boards & specialty papers Coated Virgin Boards Coated Recycled Boards Barrier Poly Coated Cast Coated Graphic Others
- 26. Contd… Cigarette Tissue and Components Fine Printing Packaging Decor Papers Niche Products
- 27. Business wise Sales data 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
- 28. CAGR during FY 2005-2008 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.
- 29. 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.
- 30. 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%
- 31. The BCG Matrix for ITC Ltd. Stars Hotels Paperboards/ Packaging. Agri business. ? FMCG- Others Cows FMCG-Cigarettes Dogs
- 32. 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)