cigarettes brands in india

8/2/2019 Cigarettes Brands in India .

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By:-

Merro Don Thomas.


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The cigarette industry is one of the oldest industries inIndia.

It is an important AGRO based Industry.

It is highly labor intensive & provides livelihood to about

5 million people directly and indirectly. Cigarette is an item falling under the First Schedule to

the Industries (Development & Regulation) Act, 1951and requires an industrial license.

India is the second largest producer of tobacco in theworld.

It exports a good amount of cigarette in variouscountries, which generates a handsome amount of

revenue for the company.


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Cigarette exports during 2010-11 increased by 15 % involume terms over the exports of previous year.

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


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cigarette growth potential

chew tobacco 21 %

bidis 43%

Mfg exports 2%

Un-Mfg exports 19%

Cigarettes 15%

15 %cigarettes


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ITC Limited

G.T.C. Industries Ltd.

Godfrey Phillips(India) Ltd.

V.S.T. Industries Ltd.


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INDIAN cigarette pie

ITC

Godfrey Phillips

VST

GTC

VST 8%

ITC 72 %

GPI 12%

GTC8%


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Market attractiveness & Competitive

strength is also important.

ITC - CIGARETTES GTCIVST

GPI ?


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One of Indias premier private limited groups withover 99 years.

Large & established Distribution Networks.

Annually turnover of the co. is RS 2888 Crore

It is one of the eight Indian companies to feature inForbes A-list in 2004.

It has more then 21,000 employees at more then 60location across India with 4,86,000 shareholders.

Ranks No. 4 among Indian listed Private SectorCompanies bymarket cap. (@ April 09)

Rated as- one of Indias Most Respected Companies(IMRB-Business world Survey 2006)


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On 24th Aug. 1910 the company was incorporated as aprivate company under the name, Imperial Tobacco

Co. of India ltd.

On 27th Oct. 1954 the company was converted into apublic limited company.

The name of the company was changed from the

ImperialTobacco co. of India ltd., to India Tobaccoco. 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 to make abeginning in Agriculture e-trade.

During the same year ITC has launched Wills sport, afull range of internationally styled premium wear for

Men & Women.


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Vision Sustain ITC's position

as one of India's most

valuable corporationsthrough world classperformance, creatinggrowing value for theIndian economy and theCompanys

stakeholders.

Mission To enhance the wealth

generating capability of

the enterprise in aglobalizing environment,delivering superior andsustainable stakeholdervalue.


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They have a DIFFERANTIAL MARKETINGSTRATEGY type.

o Cigarette companies manipulate menthol levels to lureyoung 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 makingtheir Followers .


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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 2 millionRetail 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.


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Super Premium Products Insignia ITC Insignia. 97 mm.

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

perfection

Advertised in Higher SES area

555 ITC 555 premium filter: regular 84 mm.

Cost: Rs 100 for 20 Advertised in Higher SES


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India King ITC India King. 84 mm. Cost: Rs 100 for 20 Rule your World


Wills Silk Cut(king size) ITC Wills Silk Cut Filter: 84 mm. Cost: Rs 88 for 20

A blend so right a filter so fine

Advertised in Higher SES


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Wills Classic/Mild/Regular/Menthol /Ultra Mild ITC Wills Classic/Mild Filter: King

84 mm. Cost: Rs 94 for 20

Discover a passion


Wills Navy Cut(Filter Tipped) ITC Wills Navy Cut Filter: ,74 mm. Cost: Rs 68 for 20

Made for each other



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Wills Navy Cut(Duotec) ITC Wills Navy Cut Filter: ,84 mm.

Cost Rs 80 for 20 Advertised in Higher SES

Navy Cut(Regular Size) ITC Wills Navy Cut Filter: ,69 mm.

Cost Rs 48 for 20

Advertised in Higher and Lower SES.


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Gold Flake(Premium) ITC Gold Flake Premium: Regular 69 mm.

Cost: Rs 58 for 20 Its Honeydew Smooth, Smooth, exquisite,

timeless. But then, all art is Advertised in Higher and lower SES

Gold Flake King/Lights/Ultra LightFilter ITC Gold Flake King/Light: Regular 84 mm.

Cost: Rs 88 for 20 Now in a Bevelled Edge pack Advertised in Higher and lower SES


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benson & hedges(light & hard)o B & H under ITC Regular Size 84mm.

o Cost : Rs 100 for 20o Advertised in Higher and Lower SES

Marlboro (light & hard)o Phillip Morris under ITC Regular Size 84 mm.

o

Cost : Rs 100 for 20o Advertised in Higher and Lower SES


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Wills Flakeo ITC Wills Flake Filter Regular Size 69mm.o Cost : Rs 58 for 20o Advertised in Higher and Lower SES

Bristolo

ITC Bristol Regular Size 69 mm.o Cost : Rs 32 for 20o Rise to the tasteo Advertised in Higher and Lower SES


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Strength Biggest and the largest

player in the Indiantobacco market with amarket share of 80%.

Its Gold Flake tobaccobrand is the largestFMCG brand in India -

and this single brandalone holds 70% of thetobacco market.

Weakness It still has to consolidate

its foot in the cigarmarket largelydominated by GodfreyPhilips.


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Opportunities ITC is moving into new

and emerging marketslike developingcountries of EasternEurope, Africa etc.

Threats The obvious threat is

from competition, bothdomestic andinternational.

Health hazard

Increasing tax inCigarettes


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Entry Barrier ANALYSIS Supplier Bargaining

Power Buyer's Bargaining Power Industry Rivalry Substitutes


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REVENUESGrowth-Share

Matrix

Y/E March (Rs cr) FY2008 FY2007

%

Growth

%

Contrib. % Market Share Growth Share

FMCG-Cigarettes 13,825.6 12,833.7 7.7 58.41 70% Low High


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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's

leading industrial houses - the K. K. ModiGroup and one of the world's largest tobaccocompanies, Philip Morris.


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Incorporated in India in 1936, theCompany established its ownmanufacturing facilities in 1944

On 1946 GODFREY PHILLIPS became aPublic Ltd. Co. with its manufacturingoperations in Mumbai

Its products are distributed through an

extensive India wide network comprising484 exclusive distributors and over800,000 retail outlets


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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

Stellar GPI Stellar Slims Cost: Rs76 for 20 Low nicotine, High Satisfaction



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GPI Red and Whiteo GPI Red & White flake

o Text in Hindi Hum red and white

peene walon ki baat hi kuch aur hai

o Cost: Rs 48 for 20

Advertised in Higher and Lower SES

I-Geno GPI Red & White Regular .

o Introduced Indias 1st King size 5s pack

o

Indias 1st Euro Norm 10-1-10 cigarette holds thepromise

of an advanced cigarette quality and immense style.

o Advertised in Higher and Lower SES


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jaisalmero GPI Jaisalmer Premium king size .

o

It is a luxurious blend of finest sun driedVirginia tobaccos which deliver a smooth

mellow flavor.


north poleo

GPI North Pole mentholo largest selling menthol cigarette in India



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cavanderso GPIs Oldest & most trusted brand.

o

providing superb value and satisfactiono Cost:Rs 68 for 20


tippero Phillip Morris Tipper

o The fastest growing micro segment brand



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Strength The second biggest

tobacco company in India The first and only tobacco

company to organize thefragmented cigar marketin India and secure itsposition as the marketleader in the cigardistribution.

Partnering with some ofthe top most players in theinternational tobaccoindustry.

Weakness low popularity of most of

its products No sole authority


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Opportunities Already present in the

Middle East, WestAfrica, South East

Africa and South EastAsia, GPI canstrengthen its positionas an internationalplayer by entering newmarkets.

Even expanding marketshare in the Indiantobacco market is anopportunity

Threats ITC getting into the

cigar market It has a mere 12% in

market share


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New Entries:Buyers bargaining powers:Oligopoly market situation.Suppliers bargaining

power:Fragmentation, consolidation& integration.Low switching costsThreat of substitutes:

Depends on buyer to buyer.Some are Brand Loyalists.Competitive rivalry:New innovative products by

rivals.


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o GPC is a professionally managed organization inthe field of tobacco and tobacco related products.

o Established in the year 1930 by the late Shri NarseeMonjee.

o GTC is the first wholly owned companyspecializes in manufacturing & exporting anexclusive range of Cigarettes, Flavor Cigar & NonTobacco smoking product.

o GTC has manpower strength of 2000 employeesspread across manufacturing.

o The Company has two major production facilitiesin Mumbai as well as Baroda.


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Visiono To be a largest, Human

sensitive , Global TobaccoCompany.

Missiono Constant R & D to

develop the finest blendsguided by relentless focusto deliver world class

packaging, with the aim toexceed expectations ofour consumers both inIndia and around theglobe . All of our long-termstrategies & short-term will

be bound by the fineststandards ofprofessionalism anddedication.


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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 and courageof youth, sharpened by the experience, foresightednessand wisdom of veterans.


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chancellor


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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 segment

o It is a sophisticated & stylish product.

Chancellor Royale:

o Which appeals to the modern age consumers who have royaltastes & hearts of Gold.

Chancellor Exclusive:

o Unique Brown Cigarettes in Regular size with DistinctiveFlavor.

Chancellor Harvard Luxury:

o A Consumers Favorite since ages.

Chancellor Lights:

o A mind blend of finest tobacco, in a style White pack.


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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 Major

o A tribute to the Macho, Courageous and Boldpersonalities.

o The packaging of Golden major has been inspired fromthe Defense fraternity.


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taj chapo A heritage brand of Golden Tobacco

o Market for more than 35 years.

o The only Premium brown cigarette in the

non filter segment.

style mini kingso Launch more than 25 years ago

o

To cater to the changing youth of the country,The name STYLE says it all.

o A distinctive blend , which was very well accepted bythe Indian Youth.


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steel(Regular & kingsize)o Steel- It Separates Men From Boys.

o Targeted at the youthful Rich & smooth smoker,

With new look packaging & style.o Regular size of Steel has been a huge success.

June(Light & menthol Flavors)o Premium quality Virginia blend producing

rich & pleasant characteristics.o June Slim has been designed meticulously to

suit the life styles of those who like to carry themselves.


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just blacko A Flavored Filter Cigar

o

Flavors: Full flavor, mild, menthol, cherry,Chocolate vanilla, peach, rum, raspberry,

Sour apple, strawberry & grapes.

lipso Lips flavored cigars(in tube pack)have a sweet

filtered tip and are loaded with flavor.

o Each cigar is packed in its own individual plastic tube.

o An ideal product to carry around in your pocket.


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The company was incorporated in 1930 at Hyderabad .

The third largest player of Cigarette industry in India.

In 1984 the name of the Company was changed fromThe Vazir Sultan Tobacco Co. Ltd. to VST IndustriesLtd.

The Company embarked upon a major modernizationprogram designed to improve its competitive ability indomestic and international markets.

The company recorded revenues of INR3,401.7 million(approximately $84.5 million) in the fiscal year endedMarch 2008.

The Company manufactures and distributes CigarettesThe products are sold under the trade names

`Charminar Specials', `Shah-I-Deccan', `Qila', `High


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chArms A Legendry brand of VST.

The taste that sets you free

Advertised in Lower SES


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cigarettes brands in india

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