Professional Documents
Culture Documents
Prepared For
2.0 Literature - Secondary Data Report....................................................5 3.0 Gauging the impacts & consumer behavior after the implementation of the Alcohol & Tobacco bill..................................................................8
3.1 The Management decision problem.......................................................................................9 3.2 Market Research problem......................................................................................................9 3.3 Research Objectives.............................................................................................................10
5.0 Time Frame.......................................................................................14 6.0 Limitations of the study ................................................................15 7.0 References.........................................................................................17 8.0 Appendix...........................................................................................18
8.1 Questionnaire ......................................................................................................................18 8.2 NATA Bill...........................................................................................................................26
1.0 Overview
1.1 History of Company
Ceylon Tobacco Company Limited (CTC) is popularly recognized, as one of the leading companies in Sri Lanka.The Company is a member of the British American Tobacco Group, UK. CTC is 80 years old this year. The company directly or indirectly employs 400,000 people. It is the countrys sole manufacturer of cigarettes and its dynamic approach to business has earned a prominent place amongst the nations highest performers. Apart from tobacco, it has interests in insurance and in the export of houseplants and foliage to Europe and Japan. Through many years of doing business in Sri Lanka, CTC has been successful in effectively fending off competition, resulting in a quasi monopoly situation. More than 90% of the countrys Fast Moving Consumer Goods (FMCG) trade is involved with the sale of cigarettes.
Currently JPGL shipment share is over 50% and is a mass brand within the CTC portfolio. Hence, the company believes that there is an opportunity to provide choice to consumers within this segment. This together with BATs emphasis on global drive brands indicated that Pall Mall was the ideal brand to perform the identified role. In order to strengthen its portfolio CTC has decided to launch Pall Mall in the mainstream segment, 2007.Role of Pall Mall would be to offer choice in the key value driving segment via a truly international alternative to JPGL.
Amidst all these changes to be taken place presently the issue of the NATA bill is also a burning question for CTC. Therefore a clear direction as to how consumer behaviour is changing is also a main topic discussion presently.
The Tobacco & Alcohol Bill came into effect from 1st of December 2006.We are carrying out a market research for the company to help them gauge consumer behavior following the NATA Bill. The research will focus on the impact caused by the National Tobacco and Alcohol Bill and its implications on the cigarette sales, buying and usage habits of smokers as well as consumer awareness regarding the bill. We hope to help the company make smarter business and marketing plans to tackle the effects of the NATA Bill through our research proposal.
After the enactment of the tobacco and alcohol act since the 1st of December 2006, there as been a drastic fall in liquor and cigarette sales in sri lanka. According to Nimal Siripala de silva minister of health and nutrition sales of spirits have fallen by 30% and cigarettes by 70%. A man who was accused of smoking in Colombo Hulftsdorp Courts premises was fined Rs 500 on each charge and ordered two weeks imprisonment in default for two charges, smoking in public place and committing contempt of court. The Minister of health stated that the tobacco and alcohol companies have been pressing the government to relax these tough laws against liquor and smoking, and also he says that the government is not afraid to carry on with the bill.
Analysis This article shows the effect the NATA bill has on the purchase patterns of the consumers of liquor and cigarettes. And the attitude of the public, government and organization.
Analysis: This article looks at the various view pints of the bill and implementation and carrying out the bill forward.
More support for Authority on tobacco, alcohol Sunday, 8 January 2006 http://www.sundayobserver.lk/2006/01/08/new26.html
Swarna Hansa Foundation, which has been playing a key role in transforming the conventional passive anti smoking campaign into an active and effective anti tobacco campaign says that divergent to the tobacco industry's argument that tobacco contributes largely to the National Income in this country, it actually squeezes out huge sum of money from the people of this country. The Ceylon Tobacco Company (CTC) is a subsidiary of British American Tobacco, and 93 percent of CTC earnings are sent to its Mother Company in U.K. As a brokerage fee tax is paid to the government for permitting the CTC to exploit this country its land and people. It is actually one of the main causes for the perpetuating poverty, in this country, says from the Foundation. Ten breweries and tobacco manufacturing Companies filed cases in the Supreme Court challenging the Bill on the grounds that it would violate their freedom of expression and free choice and right to engage in a fair trade of ones' own choice. The Swarna Hansa Foundation filed papers at the Supreme Court in support of the bill. Analysis; In this article they talk about the support the government is getting for the NATA bill from Swama Hansa in opposition to CTC.
3.0 Gauging the impacts & consumer behavior after the implementation of the Alcohol & Tobacco bill
With the NATA bill being in effect since 1st of December 2006 market dynamics have perceivably changed significantly.
Omalphe Sobitha, a Buddhist monk representing the pro-Sinhalese Buddhist National Heritage Party (JHU), tabled a bill in Sri Lankan parliament to control the sales of tobacco & alcohol The bill was immediately challenged in court by organizations representing the powerful tobacco & alcohol industries, which provide over 15% of government tax revenues, on the grounds that it violated freedom of expression & free choice & the right to engage in a fair trade. This legislation will provide for the setting up of the statutory body, which would regulate the sale of cigarettes & alcohol in the country. The main aim is to ban the sale of cigarettes & alcohol products in supermarkets. The Tobacco & Alcohol Act No 27 of 2006, was put into effect n December by Sri Lankas national authority on tobacco & alcohol. The new authority is set up under the ministry of Health Care & Nutrition with the objective of implementing the tobacco & alcohol act by advising the government on the implementation of a national policy on tobacco & alcohol products & encouraging & helping the public to achieve proper health through media & community based programmes
Implementation of the Tobacco & Alcohol Bill. (2006,December 06). Daily news
These changes need to be tracked down in order to help decision making in appropriate action to support consumers where needed for CTC. Also to see how it has affected the smoking behavior of people.
If yes, reasons to do so
Level of comprehension
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Questionnaire was then constructed using a logical flow and tested by mock interviews to gauge the length and practicality of the questionnaire. 4.1.2 Prerequisites For A Respondent To Be Eligible The respondent must be a male Age should be a minimum of 21 years to a maximum of 64 He must not work in journalism, market research, tobacco, advertising, and any type of media work. He must smoke at least one cigarette a day Must be residing in the Colombo district
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4.1.3 Time, Length, Administration, and Distribution of the Questionnaire Questionnaire is made up of 12 main questions and 5 demography related questions with a total of 17 questions. An interviewer either face-to-face or telephonic does questionnaire administration based on the respondents preference. Place and time of interview is again based on the respondents wish. Approximate time of completion varies among respondents; average time to successfully complete one questionnaire varies from 10 to 15 minutes. This is an approximation. Distribution of questionnaires is done through team members with a total of 100 questionnaires to be completed for analysis.
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Objectives
Age Screening Job Screening Daily Smoker Screening Daily Consumption Change In Consumption Due To Nata If Changed, New Consumption Quitting Perception Quitting Reasons NATA Awareness NATA Comprehension Smoking Occasions
Question
Q1 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12
Scale used
1-11 1-7 Y/N 1-8 & variable for exact amount Y/N 1-8 & variable for exact amount Y/N 1 or 2 Y/N Agree/Disagree 1-3
Mathematical properties
Single code Single code Single code Single code & variable Single code Single code & variable Single code Single code Single code Multi code Single code
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29th March
30th March 4th April 5th April 6th April 7th April
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100 questionnaires were printed and each group member was responsible for completing 17 questionnaires by the 21st of April. Group meeting called to discuss proposal. All information collected was analyzed and structure of proposal discussed. Each member took over different components of the proposal Rachael Joseph Tania Leanage Limitations of the study Research Design/Methodology Time Frame Chart Overview
Rishfa - Literature Search Hashika Hewawasam (report on secondary data) Ruwindi Jayawickrema Anajalie Perera Problem Definition Overview
18th March
Group meeting held to coordinate all components, prepare references and appendix. Final Proposal completed.
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surveys and research. Since this segment of the population is excluded , results would not be accurate. Even if the questionnaires and instructions are similar, there would be differences in the estimated from each sample. It is important to develop an efficient sampling plan where available information is used to choose a sample design and estimation procedure. The method of sampling, or sample design, can greatly affect the size of the sampling error. The greater the sample size , the smaller the sampling error A non-sampling error is an error that results solely from the manner in which the observations are made. Non-sampling errors can occur because of problems in coverage, response, nonresponse, data processing, estimation and analysis. In the case of interviews, no two interviewers are alike and the same person may provide different answers to different interviewers. The manner in which a question is formulated can also result in inaccurate responses. Individuals tend to provide false answers to particular questions. Respondents might also give incorrect answers to impress the interviewer. This type of error is the most difficult to prevent because it results from out right deceit on the part of the respondent. Some may be offended by personal questions. Sensitive questions may not be answered. Questionnaires should be structured carefully so as to reduce the respondent error. Lack of time may contribute to insufficient or incomplete data being collected.
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7.0 References
1.CTC Company Portfolio 2.ADIC, Tobacco Profile 2003, 2005 http://www.adicsrilanka.org/article_files/tobacco_profile.pdf 3.Chamikara Weerasinghe, Daily News, Wide support for Tobacco and Alcohol Authority proposal http://www.dailynews.lk/2006/01/04/news02.htm 4.Colombo Page, Liquor and tobacco sales drop after the new Act in Sri Lanka http://www.colombopage.com/archive/December21133951SL.html 5.Lakmini Rodrigo, Daily News, Tobacco and Alcohol bill implementation soon http://www.dailynews.lk/2006/06/12/news25.asp 6.Kalinga Seneviratne, HEALTH: Tobacco Bill, a Pipe of Peace in Sri Lanka http://www.ipsnews.net/news.asp?idnews=32074 7.Sunday Observer, More support for Authority on tobacco, alcohol, Sunday, 8 January 2006 http://www.sundayobserver.lk/2006/01/08/new26.html 8.Webster, M. (1985). Webster`s ninth new collegiate dictionary. Meriam - Webster Inc. 9.Patton, M.Q. (1990). Qualitative evaluation and research methods. SAGE Publications. Newbury Park London New Delhi 10.Seneviratne, K.(2006,February 8).HEALTH: Tobacco Bill, a pipe of peace in Sri Lanka. Inter Press Service
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8.0 Appendix
8.1 Questionnaire
Q1.
To start with, can you tell me how old are you? In which of these age categories do you fall?
READ OUT LIST. AGE Under 18 18 - 20 21 - 24 25 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 + WRITE IN EXACT AGE CODE 1 2 3 4 5 6 7 8 9 10 11 __________ GO TO CLOSE
Q2
CLOSE
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Q2. Can you please show me your National Identity Card ? Or birth year?
WRITE IN NO:
GO TO Q3
Q3.
Do you or any of your close relatives work in any of the following trades or professions?
READ OUT LIST TRADES/PROFESSIONS Banking Journalism/TV/Radio Reporting Market Research Advertising Sale/Manufacture of beer or spirits Sale/Manufacture of Tobacco products Any Other CODE 1 4 5 6 2 7 3 GO TO Q4 TERMINATE INTERVIEW Q4 Q4
Q4. Do you normally smoke/ use, at least one Manufactured Cigarette a day? DAILY SMOKER YES NO MANUFACTURED CIGARETTES Q5 TERMINATE INTERVIEW
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Q5.
AVERAGE DAILY CONSUMPTION Less than 5 cigarettes a day 6 - 10 cigarettes a day 11 - 15 cigarettes a day 16 - 20 cigarettes a day 21 - 30 cigarettes a day 31 - 40 cigarettes a day 41 - 50 cigarettes a day More than 50 cigarettes a day WRITE IN EXACT NUMBER Q6.
MANUFACTURED CIGARETTES
GO TO
1 2 3 4 5 6 7 8 __________
Q6
After the recently passed alcohol and tobacco bill has your daily consumption of cigarettes changed in anyway?
GO TO Q7 Q8
AVERAGE DAILY CONSUMPTION Less than 5 cigarettes a day 6 - 10 cigarettes a day 11 - 15 cigarettes a day 16 - 20 cigarettes a day 21 - 30 cigarettes a day 31 - 40 cigarettes a day 41 - 50 cigarettes a day More than 50 cigarettes a day WRITE IN EXACT NUMBER
1 2 3 4 5 6 7 8 __________
Q8
20
Q8.
Recently have you thought about quitting smoking? QUITTING YES NO GO TO Q9 Q10
Q9.
What is the main reason for thinking about quitting? (Let the respondent mention the main reason do not prompt him, after his mention code appropriately) QUITTING Because of NATA Bill Other CODE 1 2 GO TO Q10
Q10.
Are you aware of the rules and regulations of the recently passed alcohol & tobacco bill? AWARENESS YES NO GO TO Q11 GO TO DEMOGRAPHICS
Q11.
I am now going to ask you a few statements, as I read out each one could you please tell me if you agree or disagree with the statement? AGREE 1 1 1 1 1 1 DISAGREE 2 2 2 2 2 2 GO TO
STATEMENTS You can smoke on the roads You can smoke inside restaurants/hotels/clubs The minimum age requirement to smoke is 18 You can smoke in bus halts/Train stations/airports The minimum age requirement to smoke is 21 You can smoke in public gatherings
Q12
21
Q12.
Because of the NATA bill has you occasions of smoking changed in anyway, this means if you used to smoke two to three times a day, how is it now, has it gone up or gone down or remained the same? SMOKING OCCASIONS Gone up Gone down Its the same CODE 1 2 3 GO TO DEMOGRAPHICS
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Unskilled Worker Skilled Worker (Blue) Skilled Worker (White) Small Trader/ Shop Owner/ Self Employed Clerk/ Salesman Supervisor Junior Executive Professional/Senior Executive Businessman/Industrialist 1- 4 Employees 5 10 Employees 10+ Employees Agricultural Worker Farmer / squatter Farmer / Land Owner <1/2 acre - 2 acres 2 5 acres 5+ acres Retired Unemployed Student Other EDUCATION Education Illiterate Up to Grade 5 Grade 6 9 Up to Grade O/L GCE O/L Passed GCE A/L GCE A/L Passed Graduate/Post Graduate Professional Qualification
RESPONDEN T 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Respondent 1 2 3 4 5 6 7 8 9
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OCCUPATION OF RESPONDENT
ILLITERATE 1
RESPONDENTS LEVEL OF EDUCATION GRADE 5 GRADE GCE O/L GRADUATE/ 6-9 GCE A/L PROFESSIONAL 2 3 4/ 5/ 6/ 7 8/ 9
1 2 3 4 5 6 7 8 9 10 11 12 13
14 15 16 17 18
Unskilled worker Skilled worker 1 (Blue) Skilled worker 2 (White) Small Trader/ Small Businessman/ SE Clerk/ Salesman Supervisor Junior Executive Professional/ Senior Executive Businessman/ Industrialist Number of Emp. 1-4 Number of Emp. 5-10 Number of Emp. 10+ Agricultural Worker Tenant Cultivator Farmer/ Owning land / Land Owner < 1/2 acre < 1/2 2 2-5 5+ acre Student
(E2) 8 (E1) 7 (D) 6 (E1) 7 (D) 6 (C) 5 (C) 5 (B1) 3 (D) 6 (B2) 4 (B1) 3 (E2) 8 (E2) 8
(E1) 7 (D) 6 (C) 5 (D) 6 (C) 5 (B2) 4 (B2) 4 (B1) 3 (C) 5 (B1) 3 (A2) 2 (E1) 7 (E1) 7
(D) 6 (C) 5 (B2) 4 (C) 5 (B2) 4 (B1) 3 (B1) 3 (A2) 2 (B2) 4 (A2) 2 (A1) 1 (D) 6 (D) 6
(B2) 4 (B1) 3 (B2) 4 (B1) 3 (A2) 2 (A2) 2 (A1) 1 (B1) 3 (A1) 1 (A1) 1 (C) 5
SOCIO ECONOMIC CLASS (SEC WRITE FROM GRID ABOVE): RELIGION Code 1 2 3 4
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Can you please tell me what is your monthly personal income? MPI 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Rs. 301 Rs. 501 Rs. 751 Rs. 1,001 Rs. 1,501 Rs. 2,001 Rs. 2,501 Rs. 3,001 Rs .4,001 Rs. 6,001 Rs. 8,001 Rs. 10,001 Rs. 12,001 Rs. 15,001 Rs. 17,001 Rs. 19,001 Rs. 21,001 Rs. 23,001 Rs. 25000 + EXACT AMOUNT
500 750 1,000 1,500 2,000 2,500 3,000 4,000 6,000 8,000 10,000 12,000 15,000 17,000 19,000 21,000 23,000 25,000
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27
28
29
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