BCG Matrix

of ITC Ltd.

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

Main Sources: TC Portal (www.itcportal.com) , Angel Broking & NSE.
%9/
Formerly Known as Indian Tobacco Company
Formerly Known as Imperial Tobacco Company

lncorporaLlon of lmperlal 1obacco Company of lndla LlmlLed
SeLup of ackaglng rlnLlng 8uslness
Launched lLs PoLels buslness
LnLered Lhe aperboards buslness
SeL up Lhe Agrl 8uslness ulvlslon
Launched a llne of hlgh quallLy greeLlng cards under Lhe brand name Lxpresslons
LnLered Lhe LlfesLyle 8eLalllng buslness wlLh Lhe Wllls SporL
Spun off l1C lnfoLech lndla LlmlLed
1925
1975 1979 1990 2000
!TC Timeline
lnLroducLlon of klLchens of lndla readyLoeaL lndlan gourmeL dlshes
Launch of Lhe brands mlnLo and Candyman confecLlonery and Aashlrvaad aLLa
SLarLed markeLlng popular safeLy maLches brands llke lkno Alm
loray lnLo Lhe markeLlng of AgarbaLLls (Mangaldeep)
lnLroduced Lssenza ul Wllls an excluslve range of flne fragrances
LnLered Lhe fasL growlng branded snacks caLegory wlLh 8lngo!
Launched Lhe Superla range of Soaps and Shampoos ln Lhe massmarkeL segmenL

2001 2005
!TC Timeline
Corporate Covernance Structure
TC Ltd.
FMCG-Cigarettes
FMCG-Others
Hotels
Agri Business
Paperboards &
Packaging
nfotech
FMCG-Cigarettes
Insignia, India Kings, CIassic, GoId FIake, SiIk Cut, Navy Cut, Scissors,
Capstan, BerkeIey, BristoI and FIake
'Best Manufacturer of Cigarettes for the year 2007'
FMCG-Cigarettes
$9ar9ed in 1910 As Companys Core Business
Marke9 leadership in all segmen9s - geographic & price (70% Marke9 $hare)
Ex9ensive FMCG dis9ribu9ion ne9work (Direc9 servicing of 1,00,000 marke9s &
2 million re9ail ou9le9)
Cigare99es accoun9 for only 15% of 9obacco consumed in India unlike world
pa99ern of 85% due 9o prolonged puni9ive 9axa9ion.
Of 9he 58% of adul9 Indian males who consume 9obacco, barely 15% can
afford cigare99es. (Biri : Cigare99es ra9io = 10 : 1)
Annual per capi9a adul9 cigare99e consump9ion in India is appx. one 9en9h
world average which is 141
In 2001 - Los9 15% of I9s Business Because of Rise in Excise Du9y
In 2007 - VAT Was charged a9 12.5% which increased 9he price of cigare99es
by 84ps per cigare99e. Hence ITC had 9o shu9 down 9heir business of Plains
(i.e. Non Fil9er Cigare99es) which was 20% of 9o9al FMCG Cigare99e Business.
FMCG-Others
shirvad tta, Kitchens Of India, Mint-o, Sunfeast, Candyman, Bingo,
Superia, WiIIs LifeStyIe, Fiama Di WiIIs, Expressions, CIassmate
$uperbrand 2006 - $uperbrand Council.
FMCG-Others
Ashirvad A99a is now #1 selling.
$unfeas9 Biscui9s is ranked #3.
Bingo, launched in Augus9 2007, now enjoys 16% marke9 share.
November 2007 Min9-o over9akes i9s compe9i9or Chlormin9
Classmate' brand already the most widely distributed stationary brand in India
Ki9chens of India has abou9 48% marke9 share in India and a huge expor9
po9en9ial. Ready 9o Ea9 food Marke9 is es9ima9ed 9o be Rs.700m.
$afe9y Ma9ches marke9 a9 Rs. 1250 crores p.a. for 24 billion ma9ch boxes
which is 9arge9ed by ITCs iKno, Aim, Aim Mega, Aim Me9ro.
$uccessful acquisi9ion of 94% of WIMCO L9d. i.e. Homeli9es, $hip.
`Mangaldeep 9he only Na9ional brand in 9he coun9ry serves 9he na9ions
900cr incense s9icks marke9.
Hotels
ITC Maurya (DeIhi), ITC Maratha (Mumbai), ITC Grand CentraI (Mumbai),
ITC Sonar (KoIkatta), ITC Windsor (BengaIuru),
ITC Kakatiya (Hyderabad), ITC MughaI (gra).
Bukhara' Restaurant named as Best Indian Restaurant in the World.
Hotels
Ho9el Brands: ITC-WelcomGroup, WelcomHeri9age & For9une.
To9ally 90 Ho9els, 77 Des9ina9ions and 5500 Rooms under managemen9.
Des9ina9ions include mos9 of India as well as $ingapore and Dubai.
Hos9ed a galaxy of world digni9aries like Bill Ga9es 9o Bill Clin9on,
Condoleezza Rice 9o Benazir Bhu99o.
Res9auran9 Brands: Bukhara, Dum Pukh9 and Dakshin.
Agri Business
Innovation for India Award 2006 for ITC e-Choupal in the
$ocial Innovations category for business organizations
eChoupaI, gri Exports, Leaf Tobacco
Agri Business
ITC Agri Business is one of Indias larges9 expor9er of agricul9ural
commodi9ies.
June 2000, eChoupal - s9ra9egic and cos9 effec9ive sourcing suppor9 9o 9he
Foods business (suppor9 crea9ion of ver9icals in whea9, soya, corn, po9a9o e9c.)
eChoupal - $ervices reaches 9o 4 million Farmers who are growing Whea9,
Rice, Pulses, $oyabean, Coffee in over 40,000 villages 9hru nearly 6,500 kiosks
across nine s9a9es.
Diverse range of goods/services : FMCG, consumer durables, agri-inpu9s.
Farmer Financial $ervices - insurance (focus: wea9her), credi9 (focus: Kisan
credi9 card scheme)
Rural Re9ail - 18 Choupal $agars
Agenda 2012 is 9o cover 15 s9a9es wi9h 1,00,000 Villages wi9h abou9 20,000
eChoupal Kiosks servicing abou9 10 million farmers.
Agri Business Leaf Tobacco (LTD)
Larges9 Buyer, Processor and Expor9er of leaf 9obacco in India.
Expor9s 9o abou9 48 coun9ries.
ITC processes abou9 120 million kgs of high quali9y 9obacco yearly. Overall
550m Kg of 9obacco is produced in India.
Fac9ories have in9egra9ed warehousing complexes.
Enabled successful ven9ure in9o spices business.
Golden Leaf Awards 2007 in 9he ca9egories `Mos9 Commi99ed 9o Quali9y
The In9erna9ional Quali9y Ra9ing $ys9em - IQR$ Level 7, awarded by De9
Norske Veri9as in March 2006.
Packaging & Paperboards
!ackaging & !aperboards and SpeciaIty !aper
Indian Manufacturing Excellence Gold Award 2007 and 2006 to
Unit Bollaram by Frost & $ullivan
Annual paperboard demand - appx. 1.1 million 9onnes
Indian paperboard marke9 growing a9 7% p.a.
$ignifican9 expor9 oppor9uni9ies for high quali9y Indian manufac9urers
ITC paperboards expor9s - Rs. 2 billion appx.
ITCs packaging uni9 - Indias larges9 conver9er of paperboard in9o high
quali9y prin9ed packaging
Provides superior packaging solu9ions 9o 9he cigare99es and new FMCG
businesses
India has low per capi9a usage a9 around 6 kgs p.a.
(World average - over 50 kgs p.a.)
ITC Bough9 0.5% in Ballarpur Indus9ries in July 2008.
Packaging & Paperboards
nfotech
ITC Infotech Ltd.
Featured amongst Top 100 Global Outsourcing Companies in
the Leaders category - International Association of
Outsourcing Professionals
ITC Info9ech L9d. Is a wholly owned subsidiary of ITC L9d.
ITC Info9ech is responsible for developing & main9aining 9he en9ire ITC
eChoupal infras9ruc9ure.
Al9hough a separa9e en9i9y and brand, ITC Info9echs primary job is 9o keep
ITC as a group up9o da9e wi9h la9es9 9echnology.
nfotech
BCG Matrix
BCG Ma9rix a.k.a. Grow9h-$hare Ma9rix, Bos9on Box, Bos9on Ma9rix, Bos9on
Consul9ing Group analysis.
Crea9ed by Bruce Henderson for 9he Bos9on Consul9ing Group in 1970 9o help
corpora9ions wi9h analyzing 9heir business uni9s or produc9 lines.
This helps 9he company alloca9e resources and is used as an analy9ical 9ool in
brand marke9ing, produc9 managemen9, s9ra9egic managemen9, and por9folio
analysis.
BCG Matrix
BCG Matrix
TC Ltd on BCG Matrix
MARKET SHARE
G
R
O
W
T
H
Star Question mark
Dog Cash Cow
8LvLnuLS
CrowLhShare
MaLrlx
?/L March (8s cr) l?2008 l?2007

CrowLh

ConLrlb MarkeL Share CrowLh Share
lMCCClgareLLes 138236 128337 77 3841 70 Low Plgh
lMCCCLhers 23111 16893 486 1061 16 Plgh Low
PoLels 11002 9837 116 463 90 PoLels Plgh Plgh
Agrl 8uslness 38684 33013 103 1634
2nd LargesL
LxporLer Plgh Plgh
aperboards
ackaglng 23643 21001 126 999 1sL ln Asla Plgh Plgh
l1C lnfoLech Low Low
Summary on TC's SBUs
TC Ltd on BCG Matrix (Conclusion)
MARKET SHARE
G
R
O
W
T
H
Star Question mark
Dog Cash Cow
FMCG-Cigarettes ITC Infotech
FMCG-Foods
gri Business
HoteIs
!aperboards & !ackaging
THANK YOU