Presented by: Tanushree Driwedi

Neeraj Mahapatra
Saurabh Kumar
Anurag Aman

Current Scenario
Indian rural and agri. market is 70% to other resources in
India ,but only 30 % of GDP is from agriculture sector .
ITC realized it that their cigarette business has a limit
further which they wont be able to tap profit and their
expansion plans. So diversification was needed in any
case to build a foothold in Indian market.
FMCG bieng the fourth largest sector in the field which is
expanding at a very fast pace and it has huge potential ,
along with the benefit that it can be accrued by
organizing the existing fragmented market leading to
concept of one stop shop.
Further India being one of the largest economies with the
benefit of its vast market ,it attracted ITC to expand its
operation in various areas of hospitality, FMCG ,Greeting
cards Branded Apparels etc.

Research Area
Their initiative in chaupal sagar was an innovative concept
which was originally drawn with the help of C.K.Prahlad
(Fortune at the bottom of pyramid) ,world re-known
management guru.
Use of information technology for the economic
development of rural communities.
Fields with advantage of resources that are easy to tap.
How can they achieve the position of market leader.
To provide cheaper and more economic ways to attract
customers for their product.
How can they exploit Indian FMCG sector as a whole due to
mounting income levels and changing lifestyles and
aspirations of people.

SWOT ANALYSIS

STRENGTHS

Brand Image
Distribution Network
Management

OPPORTUNITIES

WEAKNESSES

Dependence on Tobacco
Revenues
Negative association of
tobacco

THREATS

Rural Market
Competition, domestic
and International
e-Choupal
Increased spending power Increasing tax rates
of rural sector
charged on cigarettes

ITC LTD BCG

Hotel
s

Agri
Business
High

FMCG:
Foods and
Healthcare

Cigarettes
Paper
and
Packagin
g

Market
Growth Rate

Infotech

Low

High

Relative Market Share

Low

FUTURE STRATEGIES
No new investments in cigarettes
New ventures in agri business
High degree of promotion
Use their distribution network to reach rural
areas
Bypass attack through economy and budget
hotels
Distribution and pricing of food products
Tie ups and acquisitions to boost IT business

Future strategy for Cigarette

Strategic targeting of women and children
Flavored cigarettes
Increasing exports
Use other businesses to provide high visibility
Naming other brands like Wills Lifestyle

Future strategy for FMCG

Cut down prices in the biscuit domain
Penetrate the rural market
Low fat chips
Promote
Conduct public events

Future strategy for Hotels

Invest more to grow more
Economy and budget hotels
Political contacts
Go global target east
Explore real estate
Tie ups with airlines
Extensive use of internet

Future strategy for ITC Infotech

Business in European countries
Reduce dependence on USA
Strategic acquisitions
Get government contracts through controlled
pricing
Use of already established ITC brand