Presented By :Aakash Banerjee

The cigarette industry is one of the oldest industries in India. It is an important AGRO based Industry. It is highly labor intensive & provides livelihood to about 25 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.

 ITC

Limited G.T.C. Industries Ltd.

Godfrey

Phillips (India) Ltd. V.S.T. Industries Ltd.

INDIAN cigarette pie

GTC 8% ITC

VST 8%

GPI 12%

ITC 72 %

Godfrey Phillips

VST
GTC

About ItC..
Formerly known as Imperial Tobacco Company of India Limited (ITC). ITC stands for Indian 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

ITC business portfolio

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 2 million Retail outlets. Exciting long term growth potential. World-class state-of-the-art technology and products. Investment - Rs.10 billion in six years About 71% of the Total Turnover depends upon this Business.

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

The second largest player in the Indian cigarette industry. Annual turnover exceeds INR 1800 crore (approx. US $369.6 million) 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.

LIST OF CIGARETTE PRODUCTS

Four Square Premium FSS FSK (Rich, Smooth) Stellar Red & White Marlboro Moments Cavender Gold CVGL

objeCtIve of study.

Research methodology....
Research Design
Descriptive

Tools and Techniques

Bar Graphs

Sampling Convenience Technique Research Survey Instrument Observation Data Source

Primary Secondary

Pie Charts

Percentages and Ratio

Sample size
Jaipur Dholpur Abu Road

1233 retail outlets

Pratapgarh

Area of sampling

Jalore

Naguar Barmer

Balotra

The respondents might have given some biased answers which would have affected the analysis. The result is true for the given time period but it may vary with time. The study is limited to ITC Jaipur and other several rural areas only. Reaching out to the remotest destinations ; the problem of physical distribution of channel management.

TOTAL OUTLETS
700 600

500
400 300 200 100 0 Series1

ABU ROAD 106

JALORE 74

BALOTRA 66

BARMER 75

NAGUAR 107

PRATAPGARH 60

DHOLPUR 145

JAIPUR 600

CLASSIC FAMILY
90% 80% 100% 70% AVAILBILITY PERCENTAGE 60% 50% 40% 30% 20% 10% 0% JAIPU R Series1 83% ABU ROA D 74% PRAT APG ARH 65% 0% DHO LPUR 62% Series1 AVAILIBILTY PERCENTAGE 80% 120%

GOLD FLAKE KINGS

60%

40%

20%

JALO BALO RE 65% TRA 67%

BAR MER 79%

NAG UAR 85%

JAIPU R 87%

ABU ROA D 76%

JALO BALO RE 93% TRA 97%

BAR MER 99%

NAG UAR 97%

PRAT APG ARH 83%

DHO LPUR 81%

WILLS NAVY CUT

120% 101%

GOLD FLAKE PREMIUM

100%

100% AVAILABILITY PERCENTAGE AVAILABILITY PERCENTAGE

99% 98% 97% 96% 95% 94% 93% 92% PRA BAR NAG TAP MER UAR GAR H

80%

60%

40%

20%

0% JAIPU R Series1 100%

ABU ROA D 98%

JALO BALO RE 85% TRA 94%

BAR MER

NAG UAR

PRAT APG ARH 75%

DHO LPUR 87%

JAIP UR

ABU ROA D

JAL ORE

BAL OTR A

DH OLP UR

100% 100%

Series1 100% 98%

95% 100% 100% 100% 100% 100%

FLAKE EXCEL
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% JAIPU R Series1 87% ABU ROA D 26% PRAT APG ARH 35% AVAILABILITY PERCENTAGE AVAILABILTY PERCENTAGE 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% DHO LPUR 86% Series1 JAIPU R 76% ABU ROA D 61%

GOLD FLAKE SUPER STAR

JALO BALO RE 27% TRA 26%

BAR MER 43%

NAG UAR 83%

JALO BALO RE 50% TRA 56%

BAR MER 65%

NAG UAR 94%

PRAT APG ARH 63%

DHO LPUR 82%

FLAKE LIBERTY
100%

90%
80% AVAILABILITY PERCENTAGE 70% 60% 50% 40% 30% 20% 10% 0% ABU ROAD Series1 36% PRATAPG ARH 28%

JALORE 27%

BALOTRA 38%

BARMER 48%

NAGUAR 92%

DHOLPUR 82%

JAIPUR 0%

FOUR SQUARE KINGS

35% 30% AVAILABILITY PERCENTAGE 25% 20% 15% 10% 5% 0% JAIPU R Series1 25% AVAILABILITY PERCENTAGE 102% 100% 98% 96% 94% 92% 90% 88% DHO LPUR 23% Series1

FOUR SQUARE PREMIUM

ABU ROA D 30%

JALO BALO RE 20% TRA 15%

BAR MER 23%

NAG UAR 8%

PRAT APGA RH 22%

JAIPU R 99%

ABU ROA D 96%

JALO RE 92%

BALO TRA

BAR MER

NAG UAR 99%

PRAT APGA RH

DHO LPUR

100% 100%

100% 100%

FOUR SQUARE PRIME BLEND

90% 80% AVAILABILITY PERCENTAGE AVAILABILITY PERCENTAGE 70% 60% 50% 40% 30% 20% 10% 0% JAIPU R Series1 45% ABU ROA D 32% PRAT APGA RH 48% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% DHO LPUR 78% Series1 JAIPU R 0%

FOUR SQUARE TIME

JALO BALO RE 24% TRA 30%

BAR MER 73%

NAG UAR 22%

ABU ROAD 8%

JALOR BALO BARM NAGU E 0% TRA 0% ER 0% AR 0%

PRAT APGA RH 0%

DHOL PUR 0%

CAVENDER GOLD
45% 40% AVAILABILITY PERCENTAGE AVAILABILITY PERCENTAGE 35% 30% 25% 20% 15% 10% 5% 0% JAIPU R Series1 40% ABU ROA D 22% PRAT APGA RH 0% 35% 30% 25% 20% 15% 10% 5% 0% DHO LPUR 28% Series1 JAIPU R 30%

MOMENTS

JALO BALO RE 7% TRA 23%

BAR MER 20%

NAG UAR 11%

ABU ROA D 0

JALO BALO RE 0 TRA 0

BAR MER 0

NAG UAR 0

PRAT APGA RH 0

DHO LPUR 0

ABU ROAD

JALORE

37% ITC GPI 63%

32%

ITC GPI 68%

ITC GPI

63% 37%

ITC GPI

68% 32%

BALOTRA

BARMER

33%

37% ITC GPI ITC GPI 63%

67%

ITC GPI

67% 33%

ITC GPI

63% 37%

NAGUAR

PRATAPGARH

23%
35% ITC GPI 65% 77% ITC GPI

ITC GPI

77% 23%

ITC GPI

65% 35%

DHOLPUR

JAIPUR

35% ITC GPI 65%

37% ITC GPI 63%

ITC GPI

65% 35%

ITC GPI

63% 37%

34%

ITC GPI

66%

ITC GPI

66% 34%

180 160 140 120 100 80 60 40 20 0

180

160
140 120 100 80 60

40
20

ITC

GPI

GLOW SIGN BOARD

PSU(PERMANENT STRUCTURE )

ITC

GPI

GPI

ITC

50

100

150

200

250

300

ITC Series1 298

GPI 159

RELATIVE MARKET SHARE HIGH MARKET GROWTH RATE

LOW

LOW

HIGH

Market attractiveness & Competitive strength is also important.

According to the study the market share of ITC limited is more than GPI. Availability and visibility of ITCs products are comparatively more than GPI. Confusion between the GF & GFSSDuring the survey it was found that GF is preexisting brand with the high market share and GFSS is a new brand whose name is similar to the GF due to which customers are getting confused between the two brands.

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.

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 and sometimes the absence. Company should give some relaxation while billing of newly launched cigarette brands to the salesman because salesman will get motivated to sell new cigarette. A huge opportunity to earn profit by providing Classic family to every outlet with a constant supply. The distribution channel of cigarettes in rural areas should be strengthened and proper merchandising should be done to capture the untapped markets. Proper feedback systems should be taken from the retailers, consumers by regular visits and necessary steps should be taken accordingly. Tapping the Bidi market. The grievances and complaints of the retailers, if any, should be attended as soon as possible