Imperial Tobacco Company of India Limited (ITC).
Presented to :united world school of business First year student
Presented by Kumar shivender
INTRODUCTION
ITC Limited
which previously stood for µ Imperial Tobacco Company one of India's foremost private sector companies.
Transform Transform itself itself from a leadi leading ng Cigaret Cigarette te manufact manufacturer urer to an an umbrel umbrella la group which offers diversifie diversified d products.
Succes Successfu sfull in Hotel Hotel Busi Busines ness(I s(ITC TC welcom welcomee group) group) and coll collabo aborat rated ed with Sheraton Corporation.
Contd.. ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services and business process outsourcing. ITC's Agri-Business is one of India's largest exporters of agricultural products.
VISION & MISSION
Sustain ITC¶s position as one of India¶s most valuable corporations through world class performance, creating growing value for the Indian economy and the Company¶s stakeholders. Vision:
Mission: To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.
NEED FOR DIVERSIFICATION Core business of ITC is in the manufacture of cigarettes and tobacco. On domestic front, it realized that there was huge revenue potential for a launch of wider product range to the Indian consumer base. ITC¶s FMCG business has one of largest retail networks in the country(2 million retailers) Government ban on advertisements of cigarettes, high tax rates, decline for the demand of cigarettes. The company felt the to diversify from the early 1970 and started entering those business that provides good ROI and a potential for future expansion. Leads to concentrate to the other business opportunities.
DIVERSIFICATION OF ITC Branded Apparel
Hotel
Stationery
Cigaretes
Packaged Foods
Incense
Sticks
Paper boards
Personal Care
Information Technology
Agricultu -ral Industry
Safety Matches
Diversification Cigarettes
Strategy
:
Focus to deliver highest product quality and value to consumers helps them to lead in cigarettes industry. To boost sales growth introduce festivals packs of brands like: flake filter, bristol filter, berkeley filter and Scissor filter. Branded food business(2001):
Launch kitchen of India(Canned foods from ITC Bukhara restaurants). Brand offers ready to serve products. Introduced Aashirwad brand of wheat(atta) in 2002. Entered into biscuit market by launching Sunfeast brand in 2003.
Stationery products: Launch greeting cards under the brand name Expressions. Gain popularity due to introduction of cards in different languages.
Safety matches Increase market share and its sales by offering unique designs and value added features such as AIM. Hotels(1975)
Four brands- ITC Welcome group, Welcome hotels, Fortune hotels, Welcome heritage
SWOT Analysis Strength
Weakness
Cigarette market is 22,000 cr and ITC has Dependence on tobacco revenues lion¶s share in it Negative Connection of Tobacco Strong brand recognition and product portfolio Distribution network Management Opportunity
Threat
Low per capita consumption Of personal care products
Competition both Domestic & International Increasing Tax on cigarettes
Rural Market Regulatory restrictions on cigarettes E-Choupal Ban on smoking Terror attacks
PEST
analysis
Political
Ban on communication Luxury tax
Economical
Bidee : cigarette ratio-10:1 Profit margin is high. Other forms of cheap tobacco intake.
Socio cultural
Becoming status symbol. Changing attitudes towards tobacco. May 31 is no tobacco day. Change in life style.
Technological
Cheap labour supply. Adapting other concepts like QC,TQM etc.
The BCG Matrix for ITC Ltd. Stars
?
Hotels
FMCG-
Paperboards/
ITC
Others
Infotech
Packaging. Agri business. Cows
Dogs
FMCG-Cigarettes
Branded
apparel
In
case of tobacco industry
Low bargaining power of customer
Low substitutes due to strict laws
Porters
High rivalry
High bargainng power of supplier
5 forces
High threats of new entrants
Market share of ITC Ltd.
Outstanding market leader
Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports.
Gaining market share
Nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.
Critical Success Factor SITE AND LOCATION FINANCIAL STRENGTH BRAND RECOGNITION
Corporate Social Responsibility
ITC's businesses generate livelihoods for over 5 million people.
ITC's globally recognised e-Choupal initiative is the world's largest rural digital infrastructure benefiting over 4 million farming families.
ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating an estimated 35 million person days of employment among the disadvantaged.
ITC's Watershed Development Initiative brings precious water to nearly 35,000 hectares of dry lands and moisture-stressed areas.
ITC's Sustainable Community Development initiatives include women empowerment, primary education.
HONOURS & AWARDS Ranked 4th in net profit amidst India¶s private sector corporation, Forbes magazine under the section of world¶s leading companies(2004). Received the world business award in 2004 initiated as a part of United Nations µMillennium Development objectives due to leading role in reducing poverty and creating work opportunities at a national level. Received µEnterprise Business Transformation Award 2004¶ for Asia pacific region by Wharton Infosys.
Issues with ITC
Advertisement ban 2003 Analyst view Decrease in sales of Cigarettes Health awareness
ITC. Touching your life. Everyday
ITC
COMPETOTERS
Cigarettes
ITC Hotels
Hotel oberoi
ITC FMCG goods
Hul, p&G
Stationery
Navneet
Archies
Ex pressions E-
choupal
GPI (godfrey phillips india ltd)
IFFCO and others
ITC. Touching your life. Everyday
Products
of ITC
ITC. Touching your life. Everyday
Stationary, paper & cards
ITC. Touching your life. Everyday
Cigarettes
ITC. Touching your life. Everyday
ITC Hotels
ITC. Touching your life. Everyday
