About the Cigarettes industries & Cigarettes brands in India, pricing & target market strategies.

1. CIGARETTE Analysis IN INDIA Reviewed by:- LALIT SONI (A-73)

3. It is an important AGRO based Industry.

4. It is highly labor intensive & provides livelihood to about 5 million people directly and indirectly.

5. Cigarette is an item falling under the First Schedule to the Industries (Development & Regulation) Act, 1951 and requires an industrial license.

6. India is the second largest producer of tobacco in the world.

8. Major markets for cigarettes are UAE and USA, Romania, Saudi Arabia and Iraq where the demand for generic low cost cigarettes is growing.THE INDUSTRY IN SPECIFIC

10. Cigarettes (15% of tobacco consumption) contribute nearly 85% of Revenue to the Exchequer from tobacco sector

11. Of the 58% of adult Indian males who consume tobacco, barely 15% can afford cigarettes

12. Biri : Cigarettes ratio = 10 : 1

13. Annual per capita adult cigarette consumption in India is appx. one tenth world average : 85

15. Surveyed as per March-2009

17. V.S.T. Industries Ltd.

18. ITC Limited

20. BCG Matrix ? Market attractiveness & Competitive strength is also important.

22. Large & established Distribution Networks.

23. Annually turnover of the co. is RS 2888 Crore

24. It is one of the eight Indian companies to feature in Forbes A-list in 2004.

25. It has more then 21,000 employees at more then 60 location across India with 4,86,000 shareholders.

26. Ranks No. 4 among Indian listed Private Sector Companies bymarket cap. (@ April 09)

28. On 27th Oct. 1954 the company was converted into a public limited company.

29. The name of the company was changed from the ImperialTobacco co. of India ltd., to India Tobacco co. ltd. In May 1970.

30. On Oct. 1972 company entered into Hotel business.

31. On 2000 company has launched a project “ e- choupal” in Bhopal to Web-enable farmers to make a beginning in Agriculture e-trade.

34. Cigarette companies manipulate menthol levels to lure young smokers

35. Major brands and their advertising campaigns

36. Always use their existing channels.

37. Utilizing nominal resources related with the brand

38. Brand Ambassador are selected according to the brands and mostly are YOUTH ICONS

39. They emphasize on going with the FLOW and making their Followers . MARKETING STRATEGY

41. FMCG- CIGARETTES

43. Powerful Brands across segments.

44. Leadership in all segments - geographic & price.

54. B & H under ITC Regular Size 84mm.

55. Cost : Rs 100 for 20

56. Advertised in Higher and Lower SES

57. Marlboro (light & hard)

58. Phillip Morris under ITC Regular Size 84 mm.

59. Cost : Rs 100 for 20

61. Wills Flake

62. ITC Wills Flake Filter Regular Size 69mm.

63. Cost : Rs 58 for 20

64. Advertised in Higher and Lower SES

65. Bristol

66. ITC Bristol Regular Size 69 mm.

67. Cost : Rs 32 for 20

68. ‘‘Rise to the taste’’

72. Supplier Bargaining Power

73. Buyer's Bargaining Power

74. Industry Rivalry

75. SubstitutesPorter’s Five Forces analysis

76. Summary on ITC’s SBUs

77. GPI- Cigarettes

79. Annual turnover exceeds INR 1800 crore (approx. US $369.6 million)

80. Has two major stakeholders, one of India's leading industrial houses - the K. K. Modi Group and one of the world's largest tobacco companies, Philip Morris.Godfrey Phillips India ltd.

81. GPIHISTORY OF THE COMPANY Incorporated in India in 1936, the Company established its own manufacturing facilities in 1944 On 1946 GODFREY PHILLIPS became a Public Ltd. Co. with its manufacturing operations in Mumbai Its products are distributed through an extensive India wide network comprising 484 exclusive distributors and over 800,000 retail outlets

85. GPI Red & White flake

87. GPI Red & White Regular .

88. Introduced India’s 1st King size 5’s pack

90. GPI Jaisalmer Premium king size .

92. north pole

93. GPI North Pole menthol

94. largest selling menthol cigarette in India

96. GPI’s Oldest & most trusted brand.

97. providing superb value and satisfaction

98. Cost:Rs 68 for 20

99. Advertised in Higher and Lower SES

100. tipper

101. Phillip Morris Tipper

102. The fastest growing micro segment brand

106. Buyers bargaining powers:Oligopoly market situation. ➢ Suppliers bargaining power: Fragmentation, consolidation & integration. Low switching costs ➢ Threat of substitutes: Depends on buyer to buyer. Some are Brand Loyalists. ➢ Competitive rivalry: New innovative products by rivals. Porter’s Five Forces analysis

107. Golden tobacco ltd.

109. Established in the year 1930 by the late ShriNarseeMonjee.

110. GTC is the first wholly owned company specializes in manufacturing & exporting an exclusive range of Cigarettes, Flavor Cigar & Non Tobacco smoking product.

111. GTC has manpower strength of 2000 employees spread across manufacturing.

113. To be a largest, Human sensitive , Global Tobacco Company.

114. Mission

116. We are an equal opportunity Employer.

117. We believe that learning is a life long process & provide an environment attuned to growth.

119. A Legendry brand of GTC.

120. The company has launched several variants in the Panama portfolio.

121. Some of these are:

122. Panama Virginia Regular

123. Panama Filter

124. Panama Gold

125. Panama Premium Filter

126. Panama Delight

127. Panama Menthol

129. The Chancellor name is given to Golden Tobacco’s Finest Blends.

130. Chancellor as a symbol of quality cigarettes.

131. Chancellor Browns:

132. A unique Premium blend in the king size segment

133. It is a sophisticated & stylish product.

134. Chancellor Royale:

135. Which appeals to the modern age consumers who have royal tastes & hearts of Gold.

136. Chancellor Exclusive:

137. Unique Brown Cigarettes in Regular size with Distinctive Flavor.

138. Chancellor Harvard Luxury:

139. A Consumer’s Favorite since ages.

140. Chancellor Lights:

142. Carving a niche for itself in the crowded marketplace is the Golden’s Brand.

143. An assurance of quality, for the value conscious smoker.

144. Golden’s Gold Flake

145. A strong blend.

147. A tribute to the Macho, Courageous and Bold personalities.

149. A heritage brand of Golden Tobacco

150. Market for more than 35 years.

152. Launch more than 25 years ago

154. Steel-” It Separates Men From Boys”.

156. June(Light & menthol Flavors)

159. A Flavored Filter Cigar

164. The third largest player of Cigarette industry in India.

165. In 1984 the name of the Company was changed from The Vazir Sultan Tobacco Co. Ltd. to VST Industries Ltd.

166. The Company embarked upon a major modernization program designed to improve its competitive ability in domestic and international markets.

167. The company recorded revenues of INR3,401.7 million (approximately $84.5 million) in the fiscal year ended March 2008.

169. A Legendry brand of VST.

170. ‘‘The taste that sets you free’’

171. Advertised in Lower SESMajor brands

173. A Legendry brand of VST.

174. The company has launched several variants in the Charminar portfolio.

175. Some of these are:

176. Charminar Special Filter

177. Charminar Plain

178. Charminar Standard.

179. Advertised in Lower & High SES Area.

180. Thank you