Leadership analysis of the tobacco sector of ITC limited in Rajasthan through rural penetration

7/27/2019 Leadership analysis of the tobacco sector of ITC limited in Rajasthan through rural penetration

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Presented By :-Aakash Banerjee


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INDIAN cigarette pie

ITC

Godfrey Phillips

VST

GTC

VST 8%

ITC 72 %GPI 12%

GTC8%


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About ItC.. Formerly known asImperial Tobacco Company of India Limited (ITC).

ITC stands forIndian Tobacco Company of India Limited.

The company is currently headed by Yogesh Chander Deveshwar It

employs over 26,000 people at more than 60 locations across India.

ITC Limited completed 100 years on 24 August 2010

One of the 8 Indian Companies to feature in Forbes A-list for 2004

Only Indian FMCG Company to feature in Forbes 2000 List

To fund its cash guzzling FMCG start-up, the company is still

dependent upon its tobacco revenues. Cigarettes account for 47 % of

the company's turnover, and that in itself is responsible for 80% of its

profits


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ITC business portfolio


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Market leader in India.

Powerful Brands across segments.

Leadership in all segments - geographic & price.

Extensive FMCG distribution network.

Direct servicing of 1,00,000 markets & nearly 2million Retail outlets.

Exciting long term growth potential.

World-class state-of-the-art technology andproducts.

Investment - Rs.10 billion in six years

About 71% of the Total Turnover depends upon thisBusiness.


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List of Cigarette CENTINIAL SERIES

INSIGNIA

B&H(Regular blue)

Benson Blue

IndiaKings (Rich Taste)

IndiaKings (Celestial Blue)

Classic Regular (Rich Taste)

Classic Mild

(BalancedTaste)

Classic Ultra Refine

Classic Menthol Refreshing

Classic Menthol Rush

Classic Verve

Gold Flake Kings (Red) Gold Flake Kings (Blue)

Wills Navy Cut

Gold Flake Premium (Red)

Gold Flake Premium (Blue) Flake Excel

SuperStar

555


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The second largest player in the Indiancigarette industry.

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

Has two major stakeholders, one of India'sleading industrial houses - the K. K. ModiGroup and one of the world's largest tobacco

companies, Philip Morris.


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LIST OF CIGARETTE PRODUCTS Four Square Premium

FSS

FSK (Rich, Smooth)

Stellar

Red & White

Marlboro

Moments

Cavender Gold

CVGL


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objeCtIve of study.


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Researchmethodology....Tools and

Techniques

Bar Graphs

Pie Charts

Percentages

and Ratio

DescriptiveResearch

Design

ConvenienceSampling

Technique

Survey

Observation

Research

Instrument

Primary

Secondary

Data

Source


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Area of

sampling

JaipurAbu Road

Jalore

BalotraBarmer

Naguar

Pratapgarh

Dholpur

Sample size

1233 retail

outlets


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The respondents might have given some biasedanswers which would have affected the analysis.

The result is true for the given time period but itmay vary with time.

The study is limited to ITC Jaipur and other severalrural areas only.

Reaching out to the remotest destinations ; theproblem of physical distribution of channelmanagement.


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JAIPUR

ABUROA

DJALORE

BALOTRA

BARMER

NAGUAR

PRATAPGARH

DHOLPUR

Series1 83% 74% 65% 67% 79% 85% 65% 62%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

ALLTPRN

CLASSIC FAMILY

JAIPUR

ABUROA

DJALORE

BALOTRA

BARMER

NAGUAR

PRATAPGARH

DHOLPUR

Series1 87% 76% 93% 97% 99% 97% 83% 81%

0%

20%

40%

60%

80%

100%

120%

ALBLTPRN

GOLD FLAKE KINGS


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JAIPUR

ABUROA

DJALORE

BALOTRA

BARMER

NAGUAR

PRATAPGARH

DHOLPUR

Series1 87% 26% 27% 26% 43% 83% 35% 86%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ALALTPRN

FLAKE EXCEL

JAIPUR

ABUROA

DJALORE

BALOTRA

BARMER

NAGUAR

PRATAPGARH

DHOLPUR

Series1 76% 61% 50% 56% 65% 94% 63% 82%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ALALTPRN

GOLD FLAKE SUPER STAR


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ABUROAD JALORE BALOTRA BARMER NAGUAR

PRATAPGARH DHOLPUR JAIPUR

Series1 36% 27% 38% 48% 92% 28% 82% 0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ALALTPRN

FLAKE LIBERTY


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JAIPUR

ABUROA

DJALORE

BALOTRA

BARMER

NAGUAR

PRATAPGA

RHDHOLPUR

Series1 25% 30% 20% 15% 23% 8% 22% 23%

0%

5%

10%

15%

20%

25%

30%

35%

ALALTPRN

FOUR SQUARE KINGS

JAIPUR

ABUROA

DJALORE

BALOTRA

BARMER

NAGUAR

PRATAPGA

RHDHOLPUR

Series1 99% 96% 92% 100% 100% 99% 100% 100%

88%

90%

92%

94%

96%

98%

100%

102%

ALALTPRN

FOUR SQUARE PREMIUM


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JAIPUR

ABUROA

DJALORE

BALOTRA

BARMER

NAGUAR

PRATAPGA

RHDHOLPUR

Series1 45% 32% 24% 30% 73% 22% 48% 78%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

ALALTPRN

FOUR SQUARE PRIME BLEND

JAIPUR

ABUROAD

JALORE

BALOTRA

BARMER

NAGUAR

PRATAPGA

RHDHOLPUR

Series1 0% 8% 0% 0% 0% 0% 0% 0%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

ALALTPRN

FOUR SQUARE TIME


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JAIPUR

ABUROA

DJALORE

BALOTRA

BARMER

NAGUAR

PRATAPGA

RHDHOLPUR

Series1 40% 22% 7% 23% 20% 11% 0% 28%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

ALALTPRN

CAVENDER GOLD

JAIPUR

ABUROA

DJALORE

BALOTRA

BARMER

NAGUAR

PRATAPGA

RHDHOLPUR

Series1 30% 0 0 0 0 0 0 0

0%

5%

10%

15%

20%

25%

30%

35%

ALALTPRN

MOMENTS


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63%

37%

ABU ROAD

ITC

GPI

68%

32%

JALORE

ITC

GPI

ITC 63%GPI 37%

ITC 68%GPI 32%


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65%

35%

DHOLPUR

ITC

GPI

63%

37%

JAIPUR

ITC

GPI

ITC 65%GPI 35%

ITC 63%GPI 37%


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66%

34%

ITC

GPI

ITC 66%GPI 34%


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GLOW SIGN BOARDPSU(PERMANENTSTRUCTURE )

0

20

40

60

80

100

120

140

160

180

ITC GPI 020

40

60

80

100

120

140

160

180

ITC GPI


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0 50 100 150 200 250 300

ITC

GPI

ITC GPISeries1 298 159


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Brand Cannibalization

Super Premium products were scarce in the rural market.

The entity market of ITC Ltd is indirectly been promoted through sale of

cigarettes to the retailers.

Due to fluctuation in supply of stock in Rajasthan because of taxation

problem, many WD points started purchasing tobacco from adjacent

states to keep regularity of supply in the market.

Gold Flake Premium and Four Square Premium are the star products of ITC

and GPI respectively which gain the maximum share in the rural tobacco

market.

Retailers had many grievances due to irregularity in supply of stock.


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The company should provide extra stock to retailers and vendor because many

a time the market goes without stock due to high rate of consumption andsometimes the absence.

Company should give some relaxation while billing of newly launched cigarettebrands to the salesman because salesman will get motivated to sell newcigarette.

A huge opportunity to earn profit by providing Classic family to every outletwith a constant supply.

The distribution channel of cigarettes in rural areas should be strengthenedand proper merchandising should be done to capture the untapped markets.

Proper feedback systems should be taken from the retailers, consumers byregular visits and necessary steps should be taken accordingly.

Tapping the Bidi market.

The grievances and complaints of the retailers, if any, should be attended assoon as possible


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Leadership analysis of the tobacco sector of ITC limited in Rajasthan through rural penetration

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