Shrey Gohil

AU 1713066

The BCG matrix for ITC ltd:

The Growth-Share Matrix, also known as the Boston Box, Boston Matrix, and Boston
Consulting Group analysis, was designed in 1970 by Bruce Henderson for the Boston
Consulting Group to help firms assess their business divisions or product lines. This is an
analytical technique for assisting an organisation in resource allocation in brand marketing,
product management, strategic management, and portfolio analysis.

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  STAR Products

The Paperboards and Specialty Paper business is India's largest in terms of sales among the
paper and paperboards industries. The sector is predicted to develop at a 7.8% compound
annual growth rate by 2024. (CAGR). ITC Hotels is one of India's fastest-growing hotel
groups. The rate of growth in the hospitality business qualifies it as a Star industry. ITC Agri
is the country's top exporter and one of the country's largest agribusiness conglomerates. The
agricultural sector is expected to develop at a rate of 10.70 percent by 2040. Each of the three
businesses has a strong pace of growth and a significant market share. This elevates them to
the level of a superstar. They are the fastest-growing company on the market. They make the
most money, but they demand a large sum of money to finance quickly.

 CASH COW- Products with a high profit margin

ITC Cigarette and Cigar Business is India's industry leader, offering a wide range of brands.
In every segment of the Indian cigarette and cigar market, it is the market leader. By 2021,
India's growth in this sector is expected to be only 3%. In the FMCG industry, cigarettes and
cigars have a substantial market share. Despite this, the industry is growing at a slow pace,
showing that the product is in a low-growth market with a big market share. Marketers will
have to fight to keep their share of the pie. The surplus funds might be used to fund other
products in the portfolio that require significant investment. The extra funds are typically

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invested in brands that have the potential to become stars and fall into the "question mark"
category.

 Products with a Question Mark

By 2021, the FMCG food market is expected to grow at a CAGR of 23.15 percent, putting
ITC foods in the question mark category. ITC FMCG products, especially meals, are
increasing, albeit at a slow rate of 7.3 percent each year. Despite being in a rapidly
developing market, the product has a limited market share. As a result, it's a question mark,
implying rapid growth but lower profit margins. It will take a big sum of money to obtain
market share. Marketers can either spend a lot of money to gain market share, buy
competitors, or drop the SBU entirely. They'll have to put in a lot of effort to turn the
question mark into a star.

 Products for Dogs

Under the brand name ITC Infotech, competitors such as Infosys, TCS, Accenture, and HCL
put a lot of pressure on ITC Information Technology. Due to the emergence of international
corporations, market share is dwindling. ITC Infotech has a limited market share in a low-
growth business. The future of ITC Infotech is uncertain, as most dogs eventually leave the
market. Marketers have the option of selling the firm or harvesting it. The process of closing
down the SBU is referred to as divesting. Harvesting, on the other hand, is the practise of
minimising all investment in order to maximise profits, even if this means losing all market
share.

Breadth of product mix:

 Market factor as a whole

 Factors that fall into different categories
 Aspect of the environment

Product mix depth:

 Examining the contribution of each item in the product line to sales and earnings.
 Increasing the length of a product line by adding new values or items usually
broadens market coverage and thus market share, but it also raises expenses.

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