11277209-bcg-asignment-on-itc-100413222646-phpapp02 (1)
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Rural Initiatives :
ITC's Agri-Business is India's second largest exporter of agricultural products. ITCis one of the India's biggest foreign exchange earners (US $ 2 billion in the lastdecade). The Company's 'e-Choupal' initiative is enabling Indian agriculture
significantly enhance its competitiveness by empowering Indian farmers throughthe power of the Internet. This transformational strategy, which has alreadybecome the subject matter of a case study at Harvard Business School, is expectedto progressively create for ITC a huge rural distribution infrastructure,significantly enhancing the Company's marketing reach.
Corporate philanthropy:
ITC Echoupal creatively leverages information technology to set up a meta-market
in favor of India's small and poor farmers, who would otherwise continue tooperate and transact in 'un-evolved' markets.
As of July 2007, ITC Echoupal services, through 6400 Echoupal across 8 states,reach more than 4 million farmers in about 40,000 villages. ITC intends scaling upthe initiative with 20,000 choupals and 700 saagars to reach 10 million farmers in100,000 villages by 2010.
Free access to Internet is also opening windows of rural India to the world at large.ITC eChoupal is now being regarded as a reliable delivery mechanism for resource
development initiatives. Its potential is being tested through pilot projects inhealthcare, educational services, water management and cattle health managementwith the help of several service providers including non-governmentalorganizations.
ANALYSIS:
Stars
Hotels Paperboards/
Packaging. Agri-business.
?
FMCG- Others ITC Infotech
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Cows
FMCG-CigarettesDogs
ITC`s cigarette business:
Market leadership
Powerful brands across segments
Leadership in all segments - geographic & price
Extensive FMCG distribution network
Direct servicing of 1,00,000 markets & 2 million retail outlets
World-class state-of-the-art technology and products
Investment - Rs.10 billion in six years
Exciting long term growth potential
Growth Potential:
Cigarettes account for only 15% of tobacco consumed in India unlike worldpattern of 85% due to prolonged punitive taxation
Cigarettes (15% of tobacco consumption) contribute nearly 85% ofRevenue to the Exchequer from tobacco sector
Of the 58% of adult Indian males who consume tobacco, barely 15% canafford cigarettes
Biri : Cigarettes ratio = 10 : 1
Annual per capita adult cigarette consumption in India is appx. one tenthworld average : 141
Future growth depends on relative rates of growth of per capita income andmoderation in taxes
ITC`s Agri commodity Business:
Farm linkages in 14 states covering Soya, Wheat, Rice, Marine products,Coffee etc.
Unique CRM programme in commodity exports
Leveraging IT for the transformational e-Choupal initiative
Rural Indias largest Internet-based intervention
Over 38000 villages linked through around 6400 e-Choupalsservicing over 3.5 million farmers
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Distinctive sourcing capability for ITCs Foods business
ITC`s Hotel Business:
ITC-Welcomegroup : a leading hotel chain in India Strategy to establish presence in key business locations to complete
the chain achieved in end 2004 Over 5200 rooms under 4 distinct brands
Capacity expansion underway at Bangalore and Chennai; plans for otherlocations also being progressed
Fastest growing hotel chain with highest operating efficiency (PBDIT/NetIncome @ 45%) amongst the 3 leading chains
Leverages unique service proposition and international alliance withStarwood Hotels & Resorts
Luxury Collection / Sheraton
CATEGORY BRAND POSITIONING
Luxury ITC Hotel: Luxury
Collection
Mansions of Luxury
Upper Scale Welcome Hotel:
Sheraton
Passion for Quality
Upper- mid- scale Fortune Hotels Promise of TrueValue
Heritage Welcome Heritage Unique Experiences