Presented BY:Priti Rathor

Sachin SonawaneRahul Pawar

Mrunaal InglesSantosh Sananse

INTRODUCTION (BCG matrix)

BCG (Boston Consulting Group Matrix)

Founded in 1960’s

He developed the Curve.

Concept BCG is Relative Market Share.

ITC PlanningWhich type strategy & portfolio run in business.

Involve line managers in the planning process.

Do not confuse making strategy planning.

The discipline involved in strategy planning with

satergy thinking.

Boston Consulting Group Portfolio

Time

Introductory Phase “?”

Growth Phase “Star”

Sales V

olume

Mature Phase “Cash Cow”

Decline Phase “Dog”

Source: Das Boston-Consulting-Group-Portfolio

ITC Different Segmentation Cigareattes

FMCG – Other

Hotels

Agri Business

Paper and Packaging

ITC Performance FY 2008-09SEGMENT-WISE PERFORMANCE (% YOY)

FY08 GROWTH (%)

FY07GROWTH (%)

GROWTH (%)

Sales (Rs m) 236696 211102 12

Cigarettes 138256 128337 8

FMCG – Others 25111 16895 49

Hotels 11002 9857 12

Agri Business 38684 35013 10

Paper and Packaging

23643 21001 13

Cigarettes ITC has undertake an average price increase

prices 3%.

Cigarettes 138256 128337 8%

FMCG - OthersBranded foods reported just 23% increase in

sale.

Sharp increase Commodity prices. New FMCG business to expand from Rs2.2b

in FY08 to Rs4b in FY09.

FMCG – Others 25111 16895 49%

HotelsHotels reported 12.5% increase in sales.

ITC Hotels acquire 5% share in market

They are increase room rental 10-15%.

Hotels 11002 9857 12

Agri BusinessITC Agri Business contributed 35% share.

ITC growth was supported by strong.

Agri Business reported 10% increase in sales.

Agri Business 38684 35013 10

Paper and PackagingPaper and Packaging increase sale 13%

ITC Paper and packaging sales increase

contributed 30% share.

Paper and Packaging

23643 21001 13

ConclusionAs long as management understands that the

BCG Growth/Share Matrix generates options which require further analysis and validation, this tool can greatly enhance strategic decision making