Description
ITC as a company,its product lines and strategy.It also has BCG matrix.
ITC Limited
One Of IndIa’s MOst valuable cOrpOratIOns
Enduring Value
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 Tobacco
Agri Commo dities
eChoupal
Cigarettes
Prices of Different products of ITC Ltd
• 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 Calcutta Saharanpur Munger
GODOWNS (19)???
BRANCHES (19)???
WHOLESALE DISTRIBUTORS (60 PER BRANCH)???
Information Goods
RETAILERS
SECONDARY WHOLESALERS
Grocery Stores
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 Cigarettes 70% share 77.0% PBIT 87.7%
Paperboards & Packaging
No.1 in Asia
7.3%
10.7%
Agri business
1 largest exporter in Asia
ITC group Rank No.2
7.0%
3.7%
Hotels FMCG(others)
4.3%
5.4% -7.5%
20% Share of Greeting 4.4% Market , Aashirvad Atta is No.1 in it’s Segment
doc_351832154.ppt
ITC as a company,its product lines and strategy.It also has BCG matrix.
ITC Limited
One Of IndIa’s MOst valuable cOrpOratIOns
Enduring Value
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 Tobacco
Agri Commo dities
eChoupal
Cigarettes
Prices of Different products of ITC Ltd
• 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 Calcutta Saharanpur Munger
GODOWNS (19)???
BRANCHES (19)???
WHOLESALE DISTRIBUTORS (60 PER BRANCH)???
Information Goods
RETAILERS
SECONDARY WHOLESALERS
Grocery Stores
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 Cigarettes 70% share 77.0% PBIT 87.7%
Paperboards & Packaging
No.1 in Asia
7.3%
10.7%
Agri business
1 largest exporter in Asia
ITC group Rank No.2
7.0%
3.7%
Hotels FMCG(others)
4.3%
5.4% -7.5%
20% Share of Greeting 4.4% Market , Aashirvad Atta is No.1 in it’s Segment
doc_351832154.ppt