By: Group 6

One of the 8 companies that features in forbes A-list. Largest manufacturer of cigarette. Market leader of both filter and non-filter type of cigarette. filter-wills, gold flake, etc. Non filter-scissors, hero,etc. 40 different brand of different price category..

STAGES OF SCISSORS
Launch Growth Maturity

Decline
Revival Second decline Second revival
3

Year

Relationship between Market condition And Growth Strategy

Market Condition

Growth Strategy
Initially, commodity marketing approach. Brand Positioned as as New concept in Smoking Increased price in small doses. Lower Price market penetration Strategy. Revamped the advertising Campaign Implemented Sales promotion aimed at the trade Strategy of product Economy. Revive its image& provide super value for product. Innovative packaging. New AD Campaign For men of Action-Satisfaction. Market Share increased to 12.8%.

1912

(Introduction)

Traditional Smoking Habit i.e Hookah, Chillum, Beedi, Chewing Tobacco

Conventional non-cigarette Smokers shifting to Cigarettes Competitor-Panama High Volume Low unit pricing strategy

1920s & 30s (Growth)

1940s

(Maturity)

1948-49 to 1961-62 (Decline)

Share of Scissors went down from 16.6% (48-49) to 6.5% (61-62) Two Situation i.e Milk the Brand & exit or Revive the Brand

1971, 1973, & 1974 (Revival)

1975-76, 1977
(Second Decline)

Substantial Change in Cigarette Market. Dozens of New Brand in Various Categories. Variety of Choice for Consumer. Scissors market share nose-dived from 13%( 1970-71) to 3.9%(197576)

Scissors hiked its price beyond the price of 10p per stick.

1981( Second Revival)

Price was increased. Consumer perceivegood value for money.

Price reverted to the original level of 10p per stick. All time high of 17% market share. Scissor, fresh input in product, packaging, blend and quality. Action- Satisfaction theme changed to the man of action Recognised the need of further upgrading.

 No

sudden price increase. Price value preposition. Marketing management can alter the shape and duration of brands life cycle. Product require different management strategies in each life cycle stage. PLC can be used as description but not as predictor.

Idris Mootees Brand Life Cycle Model

Product Brand: ITC positioned Scissors as a new concept in smoking. Category Brand: Only Player in this segment. Personality Brand: For men of action - Satisfaction Experience Brand: Consumers perceived the improved version as good value for money. Ingredient Brand: Act as Co-brand for other products. Corporate Brand: Goodwill of Scissors brand was used to spawn an entire brand family. Global Brand: Globally dominant leader.