Bcg matrix-of-itc-ltd-v02-1222197387335911-8(2)

8,092 views

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
8,092
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
366
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Bcg matrix-of-itc-ltd-v02-1222197387335911-8(2)

  1. 1. ITM Executive MBA, Batch 13B, Term 1, Subject: Concepts of Marketing BCG Matrix of ITC Ltd. V0.2Main Sources: ITC Portal (www.itcportal.com) , Angel Broking & NSE.
  2. 2. ITC Ltd. Formerly Known as Indian Tobacco CompanyFormerly Known as Imperial Tobacco Company
  3. 3. ITC Timeline 1925 1975 1979 1990 2000 1910 2008 1910 Incorporation of Imperial Tobacco Company of India Limited. 1925 Setup of Packaging & Printing Business 1975 Launched its Hotels business. 1979 Entered the Paperboards business 1990 Set up the Agri Business Division 2000 Launched a line of high quality greeting cards under the brand name Expressions 2000 Entered the Lifestyle Retailing business with the Wills Sport. 2000 Spun off ITC Infotech India Limited.
  4. 4. ITC Timeline 2001 2005 1910 2008
  5. 5. FMCG-Cigarettes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake Best Manufacturer of Cigarettes for the year 2007
  6. 6. FMCG-Cigarettes  Started in 1910 As Company’s Core Business  Market leadership in all segments - geographic & price (70% Market Share)  Extensive FMCG distribution network (Direct servicing of 1,00,000 markets & 2 million retail outlet)  Cigarettes account for only 15% of tobacco consumed in India unlike world pattern of 85% due to prolonged punitive taxation.  Of the 58% of adult Indian males who consume tobacco, barely 15% can afford cigarettes. (Biri : Cigarettes ratio = 10 : 1) Annual per capita adult cigarette consumption in India is appx. one tenth world average which is 141  In 2001 - Lost 15% of Its Business Because of Rise in Excise Duty  In 2007 - VAT Was charged at 12.5% which increased the price of cigarettes by 84ps per cigarette. Hence ITC had to shut down their business of Plains (i.e. Non Filter Cigarettes) which was 20% of total FMCG Cigarette Business.
  7. 7. FMCG-Others Ashirvad Atta, Kitchens Of India, Mint-o, Sunfeast, Candyman, Bingo, Superia, Wills LifeStyle, Fiama Di Wills, Expressions, Classmate ‘Superbrand 2006‘ - Superbrand Council.
  8. 8. FMCG-Others  Ashirvad Atta is now #1 selling.  Sunfeast Biscuits is ranked #3.  Bingo, launched in August 2007, now enjoys 16% market share.  November 2007 Mint-o overtakes its competitor Chlormint  ‘Classmate’ brand already the most widely distributed stationary brand in India  Kitchens of India has about 48% market share in India and a huge export potential. Ready to Eat food Market is estimated to be Rs.700m.  Safety Matches market at Rs. 1250 crores p.a. for 24 billion match boxes which is targeted by ITC’s iKno, Aim, Aim Mega, Aim Metro.  Successful acquisition of 94% of WIMCO Ltd. i.e. Homelites, Ship.  ‘Mangaldeep’ the only National brand in the country serves the nation’s 900cr incense sticks market.
  9. 9. Hotels ITC Maurya (Delhi), ITC Maratha (Mumbai), ITC Grand Central (Mumbai), ITC Sonar (Kolkatta), ITC Windsor (Bengaluru), ITC Kakatiya (Hyderabad), ITC Mughal (Agra). ‘Bukhara’ Restaurant named as Best Indian Restaurant in the World.
  10. 10. Hotels  Hotel Brands: ITC-WelcomGroup, WelcomHeritage & Fortune.  Totally 90 Hotels, 77 Destinations and 5500 Rooms under management.  Destinations include most of India as well as Singapore and Dubai.  Hosted a galaxy of world dignitaries like Bill Gates to Bill Clinton, Condoleezza Rice to Benazir Bhutto.  Restaurant Brands: Bukhara, Dum Pukht and Dakshin.
  11. 11. Agri Business eChoupal, Agri Exports, Leaf Tobacco Innovation for India Award 2006 for ITC e-Choupal in the Social Innovations category for business organizations
  12. 12. Agri Business  ITC Agri Business is one of India’s largest exporter of agricultural commodities.  June 2000, eChoupal – strategic and cost effective sourcing support to the Foods business (support creation of verticals in wheat, soya, corn, potato etc.)  eChoupal - Services reaches to 4 million Farmers who are growing Wheat, Rice, Pulses, Soyabean, Coffee in over 40,000 villages thru nearly 6,500 kiosks across nine states.  Diverse range of goods/services : FMCG, consumer durables, agri-inputs.  Farmer Financial Services - insurance (focus: weather), credit (focus: Kisan credit card scheme)  Rural Retail – 18 Choupal Sagars  Agenda 2012 is to cover 15 states with 1,00,000 Villages with about 20,000 eChoupal Kiosks servicing about 10 million farmers.
  13. 13. Agri Business – Leaf Tobacco (ILTD)  Largest Buyer, Processor and Exporter of leaf tobacco in India.  Exports to about 48 countries.  ITC processes about 120 million kgs of high quality tobacco yearly. Overall 550m Kg of tobacco is produced in India.  Factories have integrated warehousing complexes.  Enabled successful venture into spices business.  Golden Leaf Awards 2007 in the categories ‘Most Committed to Quality’  The International Quality Rating System – IQRS Level 7, awarded by Det Norske Veritas in March 2006.
  14. 14. Packaging & Paperboards Packaging & Paperboards and Specialty Paper Indian Manufacturing Excellence Gold Award 2007 and 2006 to Unit Bollaram by Frost & Sullivan
  15. 15. Packaging & Paperboards  Annual paperboard demand – appx. 1.1 million tonnes  Indian paperboard market growing at 7% p.a.  Significant export opportunities for high quality Indian manufacturers  ITC paperboards exports - Rs. 2 billion appx.  ITC’s packaging unit - India’s largest converter of paperboard into high quality printed packaging  Provides superior packaging solutions to the cigarettes and new FMCG businesses  India has low per capita usage at around 6 kgs p.a. (World average – over 50 kgs p.a.)  ITC Bought 0.5% in Ballarpur Industries in July 2008.
  16. 16. Infotech ITC Infotech Ltd. Featured amongst Top 100 Global Outsourcing Companies in the Leaders category - International Association of Outsourcing Professionals
  17. 17. Infotech  ITC Infotech Ltd. Is a wholly owned subsidiary of ITC Ltd.  ITC Infotech is responsible for developing & maintaining the entire ITC eChoupal infrastructure.  Although a separate entity and brand, ITC Infotech’s primary job is to keep ITC as a group upto date with latest technology.
  18. 18. BCG Matrix  BCG Matrix a.k.a. Growth-Share Matrix, Boston Box, Boston Matrix, Boston Consulting Group analysis.  Created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines.  This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.
  19. 19. BCG Matrix
  20. 20. BCG Matrix
  21. 21. ITC Ltd on BCG Matrix Star Question mark G R O W T Cash Cow Dog H MARKET SHARE
  22. 22. Summary on ITC’s SBUs Growth-Share REVENUES Matrix % %Y/E March (Rs cr) FY2008 FY2007 Growth Contrib. % Market Share Growth ShareFMCG-Cigarettes 13,825.6 12,833.7 7.7 58.41 70% Low HighFMCG-Others 2,511.1 1,689.5 48.6 10.61 16% High LowHotels 1,100.2 985.7 11.6 4.65 90 Hotels High High 2nd LargestAgri Business 3,868.4 3,501.3 10.5 16.34 Exporter High HighPaperboards &Packaging 2,364.3 2,100.1 12.6 9.99 1st in Asia High HighITC Infotech - - - - - Low Low
  23. 23. ITC Ltd on BCG Matrix (Conclusion) Star Question mark •Agri Business •FMCG-Foods •Hotels G •Paperboards & Packaging R O W T Cash Cow Dog H •FMCG-Cigarettes •ITC Infotech MARKET SHARE
  24. 24. THANK YOU

×