ITM Executive MBA, Batch 13B, Term 1, Subject: Concepts of Marketing

BCG Matrix of ITC Ltd.
V0.2
Main Sources: ITC Portal (www.itcportal.com) , Angel Broking & NSE.

ITC Ltd.
Formerly Known as Indian Tobacco Company Formerly Known as Imperial Tobacco Company

. Spun off ITC Infotech India Limited.ITC Timeline 1925 1975 1979 1990 2000 1910 2008 1910 1925 1975 1979 1990 2000 2000 2000 Incorporation of 'Imperial Tobacco Company of India Limited'. Setup of Packaging & Printing Business Launched its Hotels business. Entered the Paperboards business Set up the Agri Business Division Launched a line of high quality greeting cards under the brand name 'Expressions' Entered the Lifestyle Retailing business with the Wills Sport.

ITC Timeline 2001 2005 1910 2008 2001 2002 2002 2003 2005 2007 Introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes Launch of the brands mint-o and Candyman confectionery and Aashirvaad atta Started marketing popular safety matches brands like iKno. . 2007 Launched the 'Superia' range of Soaps and Shampoos in the mass-market segment. Aim Foray into the marketing of Agarbattis (Mangaldeep) Introduced Essenza Di Wills. an exclusive range of fine fragrances Entered the fast growing branded snacks category with Bingo!.

Agri Business Paperboards & Packaging Infotech FMCG-Cigarettes FMCG-Others Hotels .Corporate Governance Structure ITC Ltd.

Gold Flake. Silk Cut. India Kings.FMCG-Cigarettes Insignia. Scissors. Berkeley. Bristol and Flake 'Best Manufacturer of Cigarettes for the year 2007' . Classic. Capstan. Navy Cut.

 Of the 58% of adult Indian males who consume tobacco.FMCG-Cigarettes  Started in 1910 As Company’s Core Business  Market leadership in all segments . Non Filter Cigarettes) which was 20% of total FMCG Cigarette Business. Hence ITC had to shut down their business of Plains (i.Lost 15% of Its Business Because of Rise in Excise Duty  In 2007 .e. .geographic & price (70% Market Share)  Extensive FMCG distribution network (Direct servicing of 1.VAT Was charged at 12. barely 15% can afford cigarettes.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.00. (Biri : Cigarettes ratio = 10 : 1) Annual per capita adult cigarette consumption in India world average which is 141 is appx.5% which increased the price of cigarettes by 84ps per cigarette. one tenth  In 2001 .

Bingo. Classmate ‘Superbrand 2006‘ .FMCG-Others Ashirvad Atta. Candyman. Fiama Di Wills. . Expressions. Sunfeast.Superbrand Council. Superia. Mint-o. Kitchens Of India. Wills LifeStyle.

 Sunfeast Biscuits is ranked #3. Aim Metro. Aim. Ready to Eat food Market is estimated to be Rs. 1250 crores p. launched in August 2007.700m.a.  Safety Matches market at Rs. .  ‘Mangaldeep’ the only National brand in the country serves the nation’s 900cr incense sticks market. i.FMCG-Others  Ashirvad Atta is now #1 selling. for 24 billion match boxes which is targeted by ITC’s iKno. Aim Mega.  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. Homelites. now enjoys 16% market share. Ship.  Successful acquisition of 94% of WIMCO Ltd.e.  Bingo.

ITC Mughal (Agra).Hotels ITC Maurya (Delhi). ITC Grand Central (Mumbai). ITC Maratha (Mumbai). ITC Kakatiya (Hyderabad). ITC Windsor (Bengaluru). . ITC Sonar (Kolkatta). ‘Bukhara’ Restaurant named as Best Indian Restaurant in the World.

 Hosted a galaxy of world dignitaries like Bill Gates to Bill Clinton. 77 Destinations and 5500 Rooms under management. WelcomHeritage & Fortune.  Totally 90 Hotels.Hotels  Hotel Brands: ITC-WelcomGroup.  Restaurant Brands: Bukhara. .  Destinations include most of India as well as Singapore and Dubai. Dum Pukht and Dakshin. Condoleezza Rice to Benazir Bhutto.

Agri Exports. Leaf Tobacco Innovation for India Award 2006 for ITC e-Choupal in the Social Innovations category for business organizations .Agri Business eChoupal.

insurance (focus: weather). Soyabean.500 kiosks across nine states. . Rice.00. eChoupal – strategic and cost effective sourcing support to the Foods business (support creation of verticals in wheat.  June 2000.Agri Business  ITC Agri Business is one of India’s largest exporter of agricultural commodities. Coffee in over 40. soya. potato etc.  Diverse range of goods/services : FMCG.  Farmer Financial Services .)  eChoupal .000 Villages with about 20. Pulses. agri-inputs.Services reaches to 4 million Farmers who are growing Wheat. consumer durables. credit (focus: Kisan credit card scheme)  Rural Retail – 18 Choupal Sagars  Agenda 2012 is to cover 15 states with 1.000 eChoupal Kiosks servicing about 10 million farmers. corn.000 villages thru nearly 6.

 Golden Leaf Awards 2007 in the categories ‘Most Committed to Quality’  The International Quality Rating System – IQRS Level 7.  Enabled successful venture into spices business.Agri Business – Leaf Tobacco (ILTD)  Largest Buyer.  Factories have integrated warehousing complexes.  ITC processes about 120 million kgs of high quality tobacco yearly. awarded by Det Norske Veritas in March 2006. Overall 550m Kg of tobacco is produced in India.  Exports to about 48 countries. . Processor and Exporter of leaf tobacco in India.

Packaging & Paperboards Packaging & Paperboards and Specialty Paper Indian Manufacturing Excellence Gold Award 2007 and 2006 to Unit Bollaram by Frost & Sullivan .

2 billion appx. 1. . (World average – over 50 kgs p.  ITC’s packaging unit .5% in Ballarpur Industries in July 2008.a.  Significant export opportunities for high quality Indian manufacturers  ITC paperboards exports .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.Packaging & Paperboards  Annual paperboard demand – appx.1 million tonnes  Indian paperboard market growing at 7% p.)  ITC Bought 0.Rs.a.a.

International Association of Outsourcing Professionals . Featured amongst Top 100 Global Outsourcing Companies in the Leaders category .Infotech ITC Infotech Ltd.

Is a wholly owned subsidiary of ITC Ltd.  ITC Infotech is responsible for developing & maintaining the entire ITC eChoupal infrastructure. ITC Infotech’s primary job is to keep ITC as a group upto date with latest technology.Infotech  ITC Infotech Ltd.  Although a separate entity and brand. .

a. . strategic management.  Created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines. Boston Box. Boston Matrix.  This helps the company allocate resources and is used as an analytical tool in brand marketing. Boston Consulting Group analysis. product management.k.BCG Matrix  BCG Matrix a. Growth-Share Matrix. and portfolio analysis.

BCG Matrix .

BCG Matrix .

ITC Ltd on BCG Matrix Star Question mark G R O W T H Cash Cow Dog MARKET SHARE .

1 12.501.7 7.5 16.100.99 1st in Asia - Growth-Share Matrix Growth Share Low High High Low High High High High Low High High Low .4 3.100.364.5 48.511.Summary on ITC’s SBUs REVENUES Y/E March (Rs cr) FMCG-Cigarettes FMCG-Others Hotels Agri Business Paperboards & Packaging ITC Infotech % % FY2008 FY2007 Growth Contrib.3 2.34 Exporter 2.689.3 10.868.833.41 70% 2.6 9.7 11.6 10.6 4.6 12.2 985. % Market Share 13.65 90 Hotels 2nd Largest 3.61 16% 1.7 58.1 1.825.

ITC Ltd on BCG Matrix (Conclusion) Star •Agri Business •Hotels •Paperboards & Packaging Question mark •FMCG-Foods G R O W T H Cash Cow •FMCG-Cigarettes Dog •ITC Infotech MARKET SHARE .

THANK YOU .

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