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ITC Limited Is A Public Conglomerate Company Headquartered in Kolkata, India

Build Share Product: Hotels (Services) Position: Question Mark Reasons for present positioning: - ITC has a presence across major cities in India but market share is still low compared to major hotel chains - Hotels industry is growing rapidly in India with rising incomes and tourism Future Positioning: Invest aggressively to gain market share and brand recognition. Expand portfolio across more locations and segments to turn this into a Star.

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104 views

ITC Limited Is A Public Conglomerate Company Headquartered in Kolkata, India

Build Share Product: Hotels (Services) Position: Question Mark Reasons for present positioning: - ITC has a presence across major cities in India but market share is still low compared to major hotel chains - Hotels industry is growing rapidly in India with rising incomes and tourism Future Positioning: Invest aggressively to gain market share and brand recognition. Expand portfolio across more locations and segments to turn this into a Star.

Uploaded by

shahvezakhtar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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ITC Limited 

is a public conglomerate company headquartered in Kolkata, India.


Its turnover is $6 billion and a market capitalization of over $30 Billion. The company has
its registered office in Kolkata. It started off as the Imperial Tobacco Company, and
shares ancestry with Imperial Tobacco of the United Kingdom, but it is now fully
independent, and was rechristened to Indian Tobacco Company in 1970 and then to
I.T.C. Limited in 1974.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.
While ITC is an outstanding market leader in its traditional businesses of Cigarettes,
Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even
in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel,
Personal Care and Stationery.

ITC Limited is involved in the following sectors:

Cigarettes: ITC is the market leader in cigarettes in India and has a wide range of
popular brands such as Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut,
Scissors, Capstan, Berkeley, Bristol and Flake in its portfolio. 

Packaging: ITC's Packaging & Printing Business is the country's largest convertor of


paperboard into packaging. It was set up in 1925 as a strategic backward integration
for ITC's Cigarettes business. It offers a variety of value-added packaging solutions
for the food & beverage, personal products, cigarette, liquor, cellular phone and IT
packaging industries. 

Hotels: ITC entered the hotels business in 1975 with the acquisition of a hotel in
Chennai which was rechristened Hotel Chola. Today ITC-Welcomgroup with over 70
hotels is one of the foremost hotel chains in India. 

Paperboards: In 1979, ITC entered the Paperboards business by promoting ITC


Bhadrachalam Paperboards. ITC's Paperboards business has a manufacturing
capacity of over 360,000 tonnes per year and is a market leader in India across all
carton-consuming segments. 

Greeting, Gifting & Stationery: ITC's stationery brands "Paper Kraft" & "Classmate"
are widely distributed brands across India. The Paperkraft designer stationery range
consists of notepads & multi subject notebooks in hard, soft covers & multiple binding
formats including spirals, wiros etc. ITC's Greeting & Gifting products include
Expressions range of greeting cards and gifting products. 

Safety Matches: ITC's brands of safety matches include iKno, Mangaldeep, VaxLit,


Delite and Aim. The Aim is the largest selling brand of Safety Matches in India. ITC
also exports premium brands to markets such as Europe, Africa and the USA.

Aggarbattis: ITC has launched Mangaldeep brand of Aggarbattis with a wide range


of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini,
Anushri, Ananth and Mogra. Mangaldeep is also being exported to USA, UAE,
Bahrain, Nepal, Singapore, Malaysia, Oman and South Africa. 

Lifestyle Retailing: ITC entered the Lifestyle Retailing business with the Wills Sport
range of international quality relaxed wear for men and women in 2000. The Wills
Lifestyle chain of exclusive stores later expanded its range to include Wills Classic
formal wear (2002) and Wills Clublife evening wear (2003). In 2002, ITC entered into
the popular segment with its men's wear brand, John Players. In 2005, ITC
introduced Essenza Di Wills, an exclusive line of prestige fragrance products. 

Food: ITC made its entry into the branded & packaged Foods business in August
2001 with the launch of the "Kitchens of India" brand. In 2002 it expanded into
Confectionery, Staples and Snack Foods segments. ITC's brand in Food category
include: Kitchens of India, Aashirvaad, Sunfeast, Mint-O, Candyman, and Bingo!. 

Agri Exports: ITC's International Business Division (IBD) is the country's second


largest exporter of agri-products. ITC exports Feed Ingredients (Soyameal),
Foodgrains (Rice, Wheat, Pulses), Coffee & Spices, Edible Nuts, Marine Products,
and Processed Fruits. 

e-choupal: The e-Choupal model of ITC has been very effective in tackling the
challenges posed by the unique features of Indian agriculture, characterised by
fragmented farms, weak infrastructure and the involvement of numerous
intermediaries, among others. ITC's e-Choupal won the Stockholm Challenge 2006
award is for using information technology for the economic development of rural
communities.
Boston Consultancy Group Matrix (BCG Matrix)

STARS (high growth, high market share)


 Stars are defined by having high market share in a growing market.
 Stars are the leaders in the business but still need a lot of support for promotion
a placement.
 If market share is kept, Stars are likely to grow into cash cows.

 QUESTION MARKS (high growth, low market share)


 These products are in growing markets but have low market share.
 Question marks are essentially new products where buyers have yet to discover
them.
 The marketing strategy is to get markets to adopt these products.
 Question marks have high demands and low returns due to low market share.
 These products need to increase their market share quickly or they become
dogs.
 The best way to handle Question marks is to either invest heavily in them to gain
market share or to sell them.

CASH COWS (low growth, high market share)


 Cash cows are in a position of high market share in a mature market.
 If competitive advantage has been achieved, cash cows have high profit margins
and generate a lot of cash flow.
 Because of the low growth, promotion and placement investments are low.
 Investments into supporting infrastructure can improve efficiency and increase
cash flow more.
 Cash cows are the products that businesses strive for.

DOGS (low growth, low market share)


 Dogs are in low growth markets and have low market share.
 Dogs should be avoided and minimized.
 Expensive turn-around plans usually do not help.

Conventional strategic thinking suggests there are four possible


strategies for each SBU:

Build Share: here the company can invest to increase market share (for
example turning a "question mark" into a star)
Hold: here the company invests just enough to keep the SBU in its present
position
Harvest: here the company reduces the amount of investment in order to
maximize the short-term cash flows and profits from the SBU. This may have
the effect of turning Stars into Cash Cows.
Divest: the company can divest the SBU by phasing it out or selling it - in
order to use the resources elsewhere (e.g. investing in the more promising
"question marks").
BCG Matrix For ITC Limited

Product: Cigarettes (FMCG)


Position: Star
Reasons for present positioning:
 ITC has been a market leader in all the segments (Geographic and Price) and
has a market share of over 70%
 It has an extensive FMCG distribution network of
 Not only does it have a high market share but it growth rate is also
significantly high.
 The name Nescafe has become generic with coffee.

Future Positioning:
HUL’s Bru is also gaining share so continuous investment is required to hold
position and there is continuous pressure from coffee chains like Café Coffee
Day introducing their own brands.

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