Qasim Presentation on Leadind Ciggs Companies

8/2/2019 Qasim Presentation on Leadind Ciggs Companies

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4/17/12

Reviewed by:-Qasim

na ys sINDIA


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The cigarette industry is one of the oldestindustries in India.

It is an important AGRO based Industry.

It is highly labor intensive & provides livelihood toabout 5 million people directly and indirectly.

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

India is the second largest producer of tobacco inthe world.

It exports a good amount of cigarette in various

countries, which generates a handsome amount of revenue for the company.

THE INDUSTRY IN SPECIFIC


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Cigarette exports during 2007-08 increased by 11% in volume terms over the exports of previousyear.

Major markets for cigarettes are UAE and USA,Romania, Saudi Arabia and Iraq where the demandfor generic low cost cigarettes is growing.

THE INDUSTRY IN SPECIFIC


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Cigarettes account for only 15% of tobaccoconsumed in India unlike world pattern of 85%due to prolonged punitive taxation

Cigarettes (15% of tobacco consumption)contribute nearly 85% of Revenue to the

Exchequer from tobacco sector

Of the 58% of adult Indian males whoconsume 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

Cigarettes: Growth potential


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4/17/12Surveyed as per March-2009


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LIST OF MAJOR PLAYERS ININDIAN CIGRATTE

INDUSTRY ITC Limited

G.T.C. IndustriesLtd.

Godfrey Phillips(India) Ltd.

V.S.T. IndustriesLtd


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Market share

INDIAN cigarette pie

ITC 72%

GPI12%

GTC8%


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On 24th Aug. 1910 the company was incorporatedas a private company under the name, ImperialTobacco Co. of India ltd.

On 27th Oct. 1954 the company was convertedinto a public limited company.

The name of the company was changed from theImperial Tobacco co. of India ltd. , to IndiaTobacco 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 tomake a beginning in Agriculture e-trade.

During the same year ITC has launched Wills

ITC HISTORY OF THE COMPANY


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They have a DIFFERANTIAL MARKETING STRATEGYtype.

o Cigarette companies manipulate menthol levels tolure young smokers

o Major brands and their advertising campaigns

Always use their existing channels.

Utilizing nominal resources related with the brand

Brand Ambassador are selected according to thebrands and mostly are YOUTH ICONS

They emphasize on going with the FLOW and

making their Followers .

MARKETING STRATEGY


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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 this

ITC S CIGARETTE BUSINESS


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Super Premium Productsq Insignia

ITC Insignia. 97 mm.

Cost: Rs 130 for 20Where quality touches infinity, redefine

perfection

Advertised in Higher SES area

q 555

ITC 555 premium filter: regular 84 mm.

CIGARETTE PRODUCTS


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q Wills Classic/Mild/Regular/Menthol /

Ultra MildITC Wills Classic/Mild Filter: King

84 mm. Cost: Rs 94 for 20

Discover a passionAdvertised in Higher SES

q Wills Navy Cut(Filter Tipped)ITC Wills Navy Cut Filter: ,74 mm.

Cost: Rs 88 for 20

Made for each other

Premium Products


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Entry BarrierANALYSIS

Supplier BargainingPower Buyer's BargainingPower

Industry Rivalry Substitutes

Porters Five Forcesanalysis


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GPI- Cigarettes


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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.

Godfrey Phillips India ltd.


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Super premium products

FS 1

A newly launched cigarette in the market

It ha a finest brand in all leading cigarettes in themarket

It contains LUXURY LONG LEAVES(L3), which is

MAJOR Brands


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q Four Square Filter

GPI Four Square Filter: Regular.69 mm

Cost: Rs 48 for 20

Man with the smooth edge

Advertised in Higher and Lower SES

q StellarGPI Stellar Slims Cost: Rs76 for 20

Low nicotine, High Satisfaction

Advertised in Higher SES area

MAJOR Brands


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q GPI Red and Whiteo GPI Red & White flakeo Text in Hindi Hum red and white

peene walon ki baat hi kuch aur haio Cost: Rs 48 for 20

Advertised in Higher and Lower SES

q I-Geno GPI Red & White Regular .o Introduced Indias 1st King size 5s packo Advertised in Higher and Lower SES


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q jaisalmero GPI Jaisalmer Premium king size .o It is a luxurious blend of finest sun dried

Virginia tobaccos which deliver a smooth

mellow flavor.o Advertised in Higher and Lower SES

q north poleo GPI North Pole mentholo largest selling menthol cigarette in Indiao Advertised in Higher and Lower SES


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q cavanderso GPIs Oldest & most trusted brand.o providing superb value and satisfactiono Cost:Rs 68 for 20o Advertised in Higher and Lower SES

q tippero Phillip Morris Tippero The fastest growing micro segment brando Advertised in Higher and Lower SES


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New Entries:Buyers bargainingpowers:Oligopoly market

situation. Suppliers bargainingpower:Fragmentation,consolidation &

integration.Low switching costs

Threat of substitutes:Depends on buyer tobuyer. Some are BrandLoyalists.

Porters Five Forcesanalysis


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Golden tobacco ltd.


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o GPC is a professionally managed organizationin the field of tobacco and tobacco relatedproducts.

o

Established in the year 1930 by the late ShriNarsee Monjee.o GTC is the first wholly owned company

specializes in manufacturing & exporting an

exclusive range of Cigarettes, Flavor Cigar &Non Tobacco smoking product.o GTC has manpower strength of 2000

employees spread across manufacturing.o The Com an has two ma or roduction

GOLDEN TOBACCO LIMITEDProfile


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Vision and Mission

Visiono To be a largest, Human sensitive , Global Tobacco

Company.


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MARKETING STRATEGY

We work with commitment , dedication & Integritytowards a common goal.

We are an equal opportunity Employer.

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

We are a balance of the boldness, energy andcourage of youth, sharpened by the experience,foresightedness and wisdom of veterans.


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Major brands

q PANAMA A Legendry brand of GTC.

The company has launched several variants in

the Panama portfolio. Some of these are:o Panama Virginia Regularo Panama Filtero Panama Goldo Panama Premium Filtero Panama Delight


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q chancelloro The Chancellor name is given to Golden Tobaccos

Finest Blends.o Chancellor as a symbol of quality cigarettes.

Chancellor Browns:o A unique Premium blend in the king size segmento It is a sophisticated & stylish product.

Chancellor Royale:o Which appeals to the modern age consumers who

have royal tastes & hearts of Gold. Chancellor Exclusive:o Unique Brown Cigarettes in Regular size with

Distinctive Flavor.


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q Goldeno Carving a niche for itself in the crowded

marketplace is the Goldens Brand.o An assurance of quality, for the value conscious

smoker.

Goldens Gold Flakeo A strong blend.o Which allows the smoker to derive

immense pleasure.

Goldens Majoro A tribute to the Macho, Courageous and Bold

personalities.


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q taj chapo A heritage brand of Golden Tobaccoo Market for more than 35 years.o The only Premium brown cigarette in the

non filter segment.

q style mini kingso Launch more than 25 years agoo To cater to the changing youth of the country,

The name STYLE says it all.


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Vazir sultan Tobacco

Industries ltd.


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The company was incorporated in 1930 atHyderabad .

The third largest player of Cigarette industry inIndia.

In 1984 the name of the Company was changedfrom The Vazir Sultan Tobacco Co. Ltd. to VSTIndustries Ltd.

The Company embarked upon a major

modernization program designed to improve itscompetitive ability in domestic and internationalmarkets.

The company recorded revenues of INR3,401.7

million (approximately $84.5 million) in the fiscal

Vst ltd.Profile


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q chArms A Legendry brand of VST.

The taste that sets you free

Advertised in Lower SES Rs 40 for 10 cigarettes

Major brands


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q Charminar A Legendry brand of VST.

The company has launched several variantsin the Charminar portfolio.

Some of these are:o Charminar Special Filtero Charminar Plaino Charminar Standard.

Advertised in Lower & High SES

Area

Rs 35 for 10 Charminar cigarettes


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Qasim Presentation on Leadind Ciggs Companies

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