LIST of products

Star Category- high market growth rate and high market share
Hotels Cash cow- low market growth rate and high market share
FMCG- Cigarette Question category- high market growth rate and low market
FMCG- Others share
Agriculture business Dog Category- low market growth rate and low market share
Info tech
Paperboard/
Packaging
 REVENUE GROWTH SHARE MATRIX

Year ending Financial year Financial year % Growth % Market Growth Share
on March (in 2006 2007 Share
crores)

FMCG- 11329.74 12,833.70 13.27 77% Low High

CIGARETTE
FMCG- OTHER 1013.47 1704.39 68.17 16% High Low

HOTELS 783.35 985.7 26 90 Hotels High High

AGRI- 2678.44 3691.36 35.57 2nd largest High High

BUSINESS exporter
(52%)

PAPERBOARD 1895.73 2100.1 10.78 1st in Asia Low High

AND
PACKAGING

ITC INFOTECH - - - - Low Low

 MARKET SHARE
HIGH LOW

H Hotels
I Agri- Business
FMCG (Others)
MARKET GROWTH RATE

G B
H C
G
HOLD BUILD
M
HARVEST DIVEST A
T
L R
FMCG Cigarettes
O I
Paperboard and Packaging ITC Info Tech
W X
 Explanation of the BCG Matrix according to ITC

• Star category- According to the list of diverse product segment which ITC craters Hotel and Agri-Business lies in the
star category as these segments have a good percentage of market growth rate and market share respectively. In this
category the market share of the product is growing very fast. It is a win-win situation for ITC because its high market
rate generates a lot of cash. But at the same time there is a huge competition for ITC as the company as to spend a lot
in maintaining the position of the product and fulfilling the needs and demand of the customers. A product is a Star
performer in terms of revenue, volume and facilities.

• Cash Cow category- According to the case study, ITC- FMCG (Cigarette), Paperboard and packaging lies in this category
as both these segments have low market growth rate and high market share. This shows that the market is already
saturated the growth rate is lower, no new competition is expected as it has a leading market share since the market
is matured and the brand is already established. Cash cow is helpful to sustain the star product.

• Question mark category- FMCG (Others) such as biscuit, bingo, Mint-O lies in the question mark category as there is
high market growth rate but low market share as these products does not generate adequate profits for ITC.

• Dog category- ITC InfoTech lies under this category as it has low market growth rate and market share in the industry.
ITC Infotech does not provide anything to the business. Since, there is a high investment and very low cash inflow it is
difficult to maintain such enterprise. So, in order to prevent idle investment such a venture should be disposed unless
there is a scope of increase in market share of the product.