Itc Ltd Bcg Matraix & Product Mix

ITC Limited One of India’s Most Valuable Corporations Enduring Value

Presented By Ardhendu Mishra

ABOUT THE COMPANY…  Diversified group of companies with operations in various industry segments from cigarettes to apparels.  Annual turnover is of the order US$2.4 billion  One of the largest retailing network in the country  Ranked 8th in the ET 500 survey.  Products –Cigarettes, hotels, apparels, paper, etc.

Corporate Strategies  Sustain multiple drivers of growth, matching internal capabilities with emerging market opportunities  Pursue World class competitiveness in all businesses and across the entire value chain  Best-in-class in terms of:  Internal Vitality  Market Standing  Profitability  Strategy of Organisation and Governance processes geared to manage multiple businesses  Blend core competencies and leverage ITC umbrella strengths to 4 create new avenues of growth

Vision:

Sustain ITC position as one of India most valuable corporation through world class performance creating growing value for the Indian economy & the company’s stakeholder

Mission: To enhance wealth generating capability of the enterprise in a globalizing environment, delivering spurious & sustainable stakeholder's value

Strength: ITC mirage it traditional business to develop new brands for new segment it Diversification

Awards • FICCI Outstanding Vision Corporate Triple Impact Award 2007 • Sustainability Leadership Award 2007 • Business Today Award for the Best Managed Company – Retail and Consumer Products • NDTV Profit Business Leadership Award for being the Best Food Company • S&P Environmental, Social and Corporate Governance • Asian CSR Award 2007 for Environmental Excellence • Corporate Social Responsibility Crown Award for Water Practices from UNESCO and Water Digest

Product Mix of ITC Ltd FMCG Cigarettes Foods Lifestyle Retailing Education & Stationary Safety Matches Agarbaties

Hotels

Paper boards & Packaging Paper Boards Packing

IT

AgriBusiness Leaf Tobacc o Agri Commo dities eChoupal

Prices of Different products of ITC Ltd

Cigarettes

• Wills Navy Cut-Rs 24 per pack • Flake-Rs 19 per pack

Foods • Dal Burkhara (285 gm)-Rs 68.00 • Aashirvaad Salt (1kg)-Rs 10.00 • Aashirvaad Atta(10 kg)-Rs210 .00 (5 kg)- Rs110.00 (1 kg)- Rs 23.50 • Sunfest Butter Butterscotch (180 gm) Rs10 • Sunfeast Marie Light (306 gm)Rs 21 • Sunfeast Golden Bakery (75 gm) Rs15

Lifestyle Retailing John Player T-Shirt’s Rs545-Rs1499 Blazer’s Rs1995-Rs4495 Jeans Rs899-Rs1999 Personal Care Vivel Ayurveda (92 gm)Rs14 Vivel Satin (92 gm)Rs17 Vivel Young Glow (75 gm)Rs14 Agarabaties Mangaldeep(20 pic) Rs 10 Bingo funky Masala(45 gm) Rs10 Mad Angles (50 gm)Rs 10

Promotional Programs

DISTRIBUTION NETWORK Bangalore

GODOWNS (19)

Calcutta

Saharanpur

Munger

BRANCHES (19)

Information Goods

WHOLESALE DISTRIBUTORS (60 PER BRANCH)

RETAILERS

Grocery Stores

SECONDARY WHOLESALERS

Hotels , Restaurants & Cafes

Super Markets

Role of Each Member  Factories – Supply to 18 godowns  Godowns & Branches  Manage by C&F agents getting monthly remuneration  No rent paid by ITC  one branch – 60 WDs , 5 AMs and 20 Area Executives

 Wholesale Distributors(WDs)  Margin – 2% of sales  Appoints secondary Wholesalers

TERMS & CONDITIONS

 WDs – Zero overnite credit basis  WD appointed supervisor monitor the performance of sales force  Primary expectation – no pilferage of cigarettes

PHYSICAL DISTRIBUTION  Demand Estimation – collaborative forecasting( Sales force with dealers)  Forecast based on last month sales  Production plan made according to forecast

PROBLEMS FACED by ITC CHAIN 1.

Shortages in supply system   

•

Hoarding due to anticipation of a rise in excise duties on cigarettes Creates artificial shortage Can be solved by stricter monitoring policy during the time close to the budget

Pilferage of stock during transportation  

Due to improper action of WDs Can be solved by timely reporting

The BCG Matrix for ITC Ltd. Stars Hotels Paperboards & Packaging. Agri business. Cows FMCG-Cigarettes

Question marks FMCG- Others

Dogs  ITC Infotech.

Dominance & Revenue Segment

Dominance

Contribution Revenue

PBIT

Cigarettes

70% share

77.0%

Paperboards & Packaging

No.1 in Asia

7.3%

10.7%

Agri business

1 largest exporter in Asia

7.0%

3.7%

Hotels

ITC group Rank No.2

4.3%

5.4%

FMCG(others)

20% Share of Greeting 4.4% Market , Aashirvad Atta is No.1 in it’s Segment

87.7%

-7.5%