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CIGARETTE Analysis IN INDIA Reviewed by:- LALIT SONI (A-73)
THE INDUSTRY IN SPECIFIC  ,[object Object]
It is an important AGRO based Industry.
It is highly labor intensive & provides livelihood to about 5 million people directly and indirectly.
Cigarette is an item falling under the First Schedule to the Industries (Development & Regulation) Act, 1951 and requires an industrial license.
India is the second largest producer of tobacco in the world.
It exports a good amount of cigarette in various countries, which generates a handsome amount of revenue for the company.,[object Object]
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
Cigarettes: Growth potential ,[object Object]
Cigarettes (15% of tobacco consumption) contribute nearly 85% of Revenue to the Exchequer from tobacco sector
Of the 58% of adult Indian males who consume tobacco, barely 15% can afford cigarettes
Biri : Cigarettes ratio = 10 : 1
Annual per capita adult cigarette consumption in India  is appx. one tenth world average : 85
Future growth depends on relative rates of growth of per capita income and moderation in taxes,[object Object]
Surveyed as per March-2009
LIST OF MAJOR PLAYERS IN INDIAN CIGRATTE INDUSTRY ,[object Object]
V.S.T. Industries Ltd.
ITC Limited
G.T.C. Industries Ltd.,[object Object]
BCG Matrix ? Market attractiveness & Competitive strength is also important.
ITCONE OF INDIA’S MOST VALUABLE CORPORATIONS ,[object Object]
Large & established Distribution Networks.
Annually turnover of the co. is RS 2888 Crore 
It is one of the eight Indian companies to feature in Forbes A-list in 2004.
It has more then 21,000 employees at more then 60 location across India with 4,86,000 shareholders.
Ranks No. 4 among Indian listed Private Sector Companies bymarket cap. (@ April 09)
Rated as- one of India’s Most Respected Companies(IMRB-Business world Survey 2006),[object Object]
On 27th Oct. 1954 the company was converted into a public limited company.
 The name of the company was changed from the ImperialTobacco co. of India ltd., to India Tobacco co. ltd. In May 1970.
On Oct. 1972 company entered into Hotel business.
On 2000 company has launched a project “ e- choupal” in Bhopal to Web-enable farmers to make a beginning in Agriculture e-trade.
During the same year ITC has launched Wills sport, a full range of internationally styled premium wear for Men & Women.,[object Object]
[object Object]
Cigarette companies manipulate menthol levels to lure young smokers
Major brands and their advertising campaigns
Always use their existing channels.
Utilizing nominal resources related with the brand
Brand Ambassador  are selected according to the brands and mostly are YOUTH ICONS
They emphasize on going with the FLOW and making their Followers . MARKETING STRATEGY
    FMCG- CIGARETTES
ITC’SCIGARETTE BUSINESS ,[object Object]
Powerful Brands across segments.
Leadership in all segments - geographic & price.
Extensive FMCG distribution network. Direct servicing of 1,00,000 markets & nearly 2 million Retail outlets. ,[object Object]
World-class state-of-the-art technology and products.Investment - Rs.10 billion in six years ,[object Object],[object Object]
InsigniaITC Insignia. 97 mm. Cost: Rs 130 for 20  ‘‘Where quality touches infinity’’, ‘‘redefine perfection’’  Advertised in Higher SES area ,[object Object],ITC 555 premium filter: regular 84 mm. Cost: Rs 100 for 20 Advertised in Higher SES
[object Object],ITC India King. 84 mm. Cost: Rs 100 for 20 “Rule your World” Advertised in Higher SES area ,[object Object], ITC Wills Silk Cut Filter: 84 mm.  Cost: Rs 88 for 20  ‘‘A blend so right a filter so fine’’  Advertised in Higher SES
[object Object]
Wills Classic/Mild/Regular/Menthol /    		Ultra MildITC Wills Classic/Mild Filter: King       84 mm. Cost: Rs 94 for 20  ‘‘Discover a passion’’  Advertised in Higher SES ,[object Object],ITC Wills Navy Cut Filter: ,74 mm.  Cost: Rs 68 for 20  ‘‘Made for each other’’  Advertised in Higher SES
[object Object],ITC Wills Navy Cut Filter: ,84 mm.  Cost Rs 80 for 20 Advertised in Higher SES ,[object Object],ITC Wills Navy Cut Filter: ,69 mm. Cost Rs 48 for 20  Advertised in Higher and Lower SES.
[object Object], ITC Gold Flake Premium: Regular 69 mm.        Cost: Rs 58 for 20  ‘‘It’s Honeydew Smooth’’, Smooth, exquisite,         timeless. But then, all art is’’  Advertised in Higher and lower SES ,[object Object], ITC Gold Flake King/Light: Regular 84 mm. Cost: Rs 88 for 20 “Now in a Bevelled Edge pack”  Advertised in Higher and lower SES
[object Object]

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