FMCG - Strategic Study on ITC Ltd

Description
BCG Matrix, GE Model and SWOT Analysis

FMCG ( Strategic Study on ITC Ltd )
Presented by: Rohan Anish Shweta Shubhpreet Siddhartha

FMCG…
? ? Products which have a quick turnover, and relatively low cost are known as

Fast Moving Consumer Goods (FMCG)
?
?

? Toiletries, soap, cosmetics, tooth cleaning products, shaving products and

detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars.
?

Indian FMCG Market…
? ?India’s FMCG sector is the fourth largest sector in the economy ?Employment for 3 million people. ?The Indian FMCG sector has total market size of around US$ 13.1

billion. ?The total number of rural households is expected to rise from 135 million in 2002 to 153 million in 2010, which represents the largest potential market in the world. ?So the focus has shifted from the urban to the rural areas.

India - A large consumer goods spender

Indian FMCG Players…

•HUL-------------36.40% •ITC--------------30.30% •NESTLE---------8.20% •BRITANNIA-----6.00% •DABUR----------4.30%

STP…
?Demographic Segmentation:
?

Ø Youth & Child Segment->John Players ? Miss Players ? Bingo ? Sun feast
?

Ø Income Segment-----------> Cigarettes

STP…
? Psychographic Segmentation:
?

Ø Premium Segments-----> Wills Classic ? Wills Sport ? Wills Clublife
?

Ø Staples--------------------->Aashirvaad Select ? Aashirvaad MP Chakki ? Aashirvaad spices

STP…
?Behavior Segmentation:
?

Ø Personal Care Segment----->Vivel di Wills ? Fiama di Wills ? Superia Shampoo
? ?

Ø Expressions------------------->Classmate ? Greeting Cards

STP…
?Geographical Segmentation:
?

Ø Packaged Foods----->Kitchens Of India

STP…Positional Strategies
?Wills Insignia, Classic mild is targeted towards urban and

high income groups, while gold flake small caters to lower class. ?Mint-O fresh is made available at small pan shops, so that smokers can freshen up their breath. ?Witty lines were written on the back side of the match boxes (Aim)creating an interest in them. ?Wills Lifestyle is mainly for the upper segment of the society.
?

BCG Matrix…
S r . N o .

S B U

BCG Matrix…

100%

?
Stationery
60%

Ashirwad Atta

30% 20%

Bingo Aggarbatti Cigarette s 6
3 1.8

Sunfeast
0.34

Personal care
.29 .16

Why has ITC entered into FMCG?...
? ?Higher Disposable Incomes ?Fast Growing Rural market ?ITC’ strong existing cigarette distribution network. ?Changing Consumer Habits ?Evolving Modern Retail Structure
?

(http://www.moneycontrol.com/india/news/advertisingmarketing/will-ensure-nosuccession-issues-hit-itc-yc-deveshwar/408245/2)

GE Matrix…
? ?SBU’s Selected:
?
?

Cigarettes Ashirwaad Atta

Cigarettes
?

Market Attractiveness
Weight 0.3 Rating 4 Size 1.2 Factor

?

Business Strength
Weight 0.25 0.2 0.2 Rating 4 4 4 Size 1.0 0.8 0.8

Factor Overall Market Size

Current Market share Brand Image Product/ Distribution Capacity Promotional Effectiveness

Historical Profit 0.2 Margin Market Rivalry 0.25

4

0.8

3

0.75

0.2 0.15

2 3

0.4 0.45

Demand Variability

0.25

3

0.75

Profit Margins Relative to Competitions

Total

3.5

Total

3.45

Ashirwaad Atta
?

Market Attractiveness
Weight Rating Size Factor

?

Business Strength
Weight Rating Size

Factor

Annual Market Growth Market Rivalry

0.25

4

1

Current Market Size Brand Image

0.3

4

1.2

0.25

3

0.75

0.25

4

1.0

Market Structure

0.3

2

0.6

Production/ Distribution Capacity Promotional Effectiveness Total

0.2

4

0.8

Demand Variability 0.2

3

0.6

0.25

3

0.75

Total

2.95

3.75

Cigarettes & Ashirwaad Atta
Business Strength
Strong Medium Weak
5 . 00

Market Attractiveness

High

3 . 67

Medium

2 . 33

Low
5 . 00

3 . 67

2 . 33

1 . 00

Ansoff Matrix
Products

Present
Markets MARKET PENETRATION Cigarettes, Agarbatti, Aashirvaad Atta, Fiama Di Wills Bingo

New
PRODUCT DEVELOPMENT Ball Point Paperkraft Premium Paper Sunfeast Dark Fantasy Bingo Achari Masti

Present

New

MARKET DEVELOPMENT Classmate & Paperkraft (Overseas) Mangaldeep Agarbatti (Export to Bangladesh) Sunfeast (Rural)

DIVERSIFICATION Sunfeast Pasta

SWOT Analysis…
?

?STRENGTHS ?WEAKNESSES ?OPPORTUNITIES ?THREATS



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