GOLD FLAKE

A PROJECT REPORT ON
INDIAS TOP BRAND IN CIGARETTES
GOLD FLAKE
SUBMITTED BY
NIKHIL BANSAL
T.Y.B.M.S. SEMESTER V
2009 2010
ROLL NO. 9
UNDER THE GUIDANCE OF
PROF. PANKAJ NATU
DATE OF SUBMISSION
30
ST
OCTOBER 2009
NARSEE MONJEE COLLEGE OF
COMMERCE & ECONOMICS
VILE PARLE !". MUMBAI #00 0$%
1
GOLD FLAKE
DECLARATION
I& N'()'* B+,-+* ./ N+0-11 M.,211 C.**131 ./ C.441051 +,6
E5.,.4'5-& ./ T.Y.B.M.S. S141-710 V" 615*+01 7)+7 I )+81
5.49*1716 7)'- 90.2157 ., INDIAS TOP BRAND IN CIGARETTES GOLD
FLAKE ', 7)1 +5+614'5 :1+0 2009 10. T)1 ',/.04+7'., -;<4'7716
'- 70;1 +,6 .0'3',+* 7. 7)1 <1-7 ./ 4: (,.=*1631.

Signature of the Student
2
GOLD FLAKE
CERTIFICATE
I, Prof. Pankaj Natu hereby certify that Mr. N'()'* B+,-+* of Narsee
Monjee College of Commerce and Economics, of T..!.M.S. "Semester #$
has com%leted the %roject on INDIAS TOP BRAND IN CIGARETTES GOLD
FLAKE in the academic year &''( ) *'. The information submitted is true
and original to the best of my kno+ledge.
Signature of the Project Co,ordinator Signature of
the Princi%al of the College- Institution.
3
GOLD FLAKE
ACKNO!LEDGEMENT
It has al+ays been my sincere desire as a management student to get an
o%%ortunity to e.%ress my /ie+s, skills, attitude and talent in +hich I am
%roficient. 0 %roject is one such a/enue through +hich a student +ho
as%ires to be a future manager does something creati/e. This %roject has
gi/en me the chance to get in touch +ith the %ractical as%ects of
management.
I am e.tremely grateful to the 1ni/ersity of Mumbai for ha/ing %rescribed
this %roject +ork to me as a %art of the academic re2uirement in the
!achelor of Management "!MS$ course.
I +ish to a%%reciate the management and staff of N.M. College, !MS for
%ro/iding the entire state of the art infrastructure and resources to enable
the com%letion and enrichment of my %roject.
I +ish to e.tend a s%ecial thanks to my %roject 3uide Prof Pankaj Natu
+ithout +hose guidance, the %roject may not ha/e taken sha%e.
4inally, I thank all my friends and family members +ho ha/e directly or
indirectly hel%ed me to+ards the e.ecution of this %roject.
4
GOLD FLAKE
5
INDIA>S TOP BRAND IN
CIGARETTES
?GOLD FLAKE>
GOLD FLAKE
EXECUTIVE SUMMARY
Cigarette is a product !ic! is !ar"#u$ #or !ea$t!% i& spite o# t!is #ee'$e( its sa$es are i&creasi&g
g$o'a$$)* T!e product !as 'ee& 'a& #ro" ad+ertise"e&t a&d pro"otio&a$ acti+ities* It is a c!a$$e&ge #or
t!e co"pa&ies to sa$e t!is product a&d 'ui$d its 'ra&d i"age* T!e Cigarette I&dustr) is o&e o# t!e
o$dest i&dustries i& I&dia* I&dia is t!e seco&d $argest producer o# to'acco i& t!e or$d a#ter C!i&a* It
produced ,-. "i$$io& /i$ogra"s o# to'acco i& .00.1.002* Appro3i"ate$) ,*, tri$$io& cigarettes are
produced g$o'a$$) eac! )ear ') t!e to'acco i&dustr)% s"o/ed ') o+er 4*4 'i$$io& peop$e% !ic! is "ore
t!a& 456 o# t!e or$d7s tota$ popu$atio&*
ITC is t!e "ar/et $eader i& cigarettes i& I&dia* It7s !ig!$) popu$ar port#o$io o# 'ra&ds i&c$udes
I&sig&ia% I&dia Ki&gs% C$assic% Go$d F$a/e% Si$/ Cut% Na+) Cut% Scissor% etc* Go$d F$a/e is t!e top
'ra&d o# cigarettes i& I&dia* It as $au&c!ed ') ITC i& t!e se+e&ties* It is a e$$1positio&ed 'ra&d i&
I&dia a&d is t!e "ar/et $eader i& its seg"e&t* T!e 'ra&d Go$d F$a/e 'eca"e popu$ar 'ecause o# t!e
e3ceptio&a$ c!aracteristics o##ered ') t!e product a&d a$so t!e 'ra&di&g strategies app$ied ') t!e
co"pa&) to esta'$is! t!e 'ra&d &a"e* Go$d F$a/e as at No*4 positio& i& !ig!est sa$es i& .0021.008
i& F9CG products* A'out :,; o# t!e re+e&ues o# ITC are ear&ed t!roug! t!e sa$es o# cigarettes* T!e
co"pa&) toda) is #aci&g co"petitio& #ro" I&ter&atio&a$ p$a)ers*
Toda) t!e cigarette i&dustr) o# I&dia is 'oo"i&g i& t!e "ar/et* T!e sa$es o# cigarettes are
i&creasi&g da)1')1da)* I& #uture t!e co"pa&) "a) #ace "a&) c!a$$e&ges #ro" co"petitors a&d
go+er&"e&t% 'ut it is +er) di##icu$t to c!a&ge t!e aspiratio&s o# t!e co&su"ers* Due to t!is t!e
co"pa&) is 'e&e#ited* It !as 'ee& predicted ') t!e co"pa&) t!e sa$e o# Go$d F$a/e i$$ gro at t!e
rate o# :; a&&ua$$)*
6
GOLD FLAKE
INDEX
Sr.No TOPIC Page No.
1. Chapter I
I&troductio&*
A'out t!e Cigarette I&dustr) o#
I&dia*
A'out t!e Co"pa&) <ITC=*
4144
2. Chapter II
Go$d F$a/e*
>ierarc!) o# t!e co"pa&)*
9a&u#acturi&g process*
4.1.8
3 Chapter III
Attri'utes o# t!e product*
Be&e#its o# t!e product*
Pac/agi&g o# t!e product*
.,120
4 Chapter IV
9ar/eti&g 9i3*
24126
5 Chapter V
Bra&di&g o# Go$d F$a/e* 2-18,
6 Chapter VI
Data a&a$)sis* 8616,
Chapter VII
S?OT A&a$)sis* 661-4
! Chapter VIII
Co&c$usio&*

-.1-2
"#$%#ograph&
A''e()re

GOLD FLAKE
!
C50PTE6 I
GOLD FLAKE
I,70.6;57'.,
@I $i/e to t!i&/ o# #ire !e$d i& a "a&7s !a&d* Fire% a da&gerous #orce% ta"ed at !is
#i&gertips* I o#te& o&der a'out t!e !ours !e& a "a& sits a$o&e% atc!i&g t!e s"o/e o# a
cigarette% a&d t!i&/i&g* I o&der !at great t!i&gs !a+e co"e #ro" suc! !ours* ?!e& a "a&
t!i&/s% t!ere is a spot o# #ire a$i+e i& !is "i&d11a&d it is proper t!at !e s!ou$d !a+e t!e 'ur&i&g
poi&t o# a cigarette as !is o&e e3pressio&*@
A cigarette is a product co&su"ed +ia s"o/i&g a&d "a&u#actured out o# cured a&d #i&e$)
cut to'acco $ea+es% !ic! are co"'i&ed it! ot!er additi+es% t!e& ro$$ed or stu##ed i&to a
paper1rapped c)$i&der ge&era$$) $ess t!a& 4.0 "" i& $e&gt! a&d 40 "" i& dia"eter* T!e
cigarette is ig&ited at o&e e&d a&d a$$oed to s"o$der #or t!e purpose o# i&!a$atio& o# its
s"o/e #ro" t!e ot!er !ic! is usua$$) #i$tered at t!e e&d a&d is usua$$) i&serted i& t!e "out!*
T!e) are so"eti"es s"o/ed it! a cigarette !o$der* T!e ter" cigarette as co""o&$) used%
re#ers to a to'acco cigarette 'ut ca& app$) to si"i$ar de+ices co&tai&i&g ot!er !er's% suc! as
ca&&a'is* T!e) are co$$oAuia$$) /&o& as 7cigs7% 7s"o/es7% 7ciggies7% 7straig!ts7% 7ca&cer stic/s7%
7deat! stic/s7% 7co##i& &ai$s7 a&d 7#ags7* Cigarettes are pro+e& to 'e !ig!$) addicti+e% as e$$ as
a cause o# "u$tip$e t)pes o# ca&cer% !eart disease% respirator) disease% circu$ator) disease a&d
'irt! de#ects*

A cigarette is disti&guis!ed #ro" a cigar ') its s"a$$er siBe% use o# processed
$ea#% a&d !ite paper rappi&g* Cigars are t)pica$$) co"posed e&tire$) o# !o$e $ea# to'acco*
Co""ercia$$) "a&u#actured cigarettes are re$ati+e$) si"p$e o'Cects co&sisti&g "ai&$) o# a
to'acco '$e&d% paper% PDA g$ue to 'o&d t!e outer $a)er o# paper toget!er% a&d o#te& a$so a
ce$$u$ose acetate 'ased #i$ter*
I& t!e 'egi&&i&g o# t!e 46t! ce&tur)% 'eggars i& Se+i$$e% Spai& de+e$oped t!e #irst paper1
ro$$ed cigarettes !e& t!e) co$$ected discarded cigar 'utts% s!redded t!e"% a&d ro$$ed t!e" i&
scraps o# paper* A$t!oug! t!e Spa&is! e$ite #irst dis"issed t!e" as rec)c$ed gar'age% t!ese
cigarillos, or $itt$e cigars% e+e&tua$$) gai&ed popu$arit) duri&g t!e 4:t! ce&tur)* Cigarette
s"o/i&g spread to Ita$) a&d Portuga$% a&d e+e&tua$$) to t!e rest o# Europe a&d i&to Asia*
Cigarettes ere $arge$) u&/&o& i& t!e E&g$is!1spea/i&g or$d 'e#ore t!e Cri"ea& ?ar%
!e& Britis! so$diers 'ega& e"u$ati&g t!eir Otto"a& Tur/is! co"rades% !o resorted to
ro$$i&g t!eir to'acco it! &espri&t*

T!e cigarette as &a"ed so"eti"e i& t!e 4:t! ce&tur)*
*
GOLD FLAKE
Duri&g ?or$d ?ar I a&d ?or$d ?ar II% cigarettes ere ratio&ed to so$diers* Duri&g t!e
seco&d !a$# o# t!e .0t! ce&tur)% t!e ad+erse !ea$t! e##ects o# cigarettes started to 'eco"e
ide$) /&o& a&d te3t1o&$) !ea$t! ar&i&gs 'eca"e co""o&p$ace o& cigarette pac/ets* T!e
E&ited States !as &ot )et i"p$e"e&ted grap!ics1'ased cigarette ar&i&g $a'e$s% !ic! is
co&sidered a "ore e##ecti+e "et!od to co""u&icate to t!e pu'$ic t!e da&gers o# cigarette
s"o/i&g* Ca&ada a&d Austra$ia% !oe+er% !a+e 'ot! te3tua$ ar&i&gs a&d grap!ic +isua$
i"ages disp$a)i&g% a"o&g ot!er t!i&gs% t!e da"agi&g e##ects to'acco use !as o& t!e !u"a&
'od)* T!e cigarette !as e+o$+ed "uc! si&ce its co&ceptio&( #or e3a"p$e% t!e t!i& 'a&ds t!at
tra+e$ tra&s+erse to t!e @a3is o# s"o/i&g@ <t!us #or"i&g circ$es a$o&g t!e $e&gt! o# t!e
cigarette= are a$ter&ate sectio&s o# t!i& a&d t!ic/ paper to #aci$itate e##ecti+e 'ur&i&g !e&
'ei&g dra&% a&d retard 'ur&i&g !e& at rest* S)&t!etic particu$ate #i$ters re"o+e so"e o# t!e
tar 'e#ore it reac!es t!e s"o/er*
Co"pa&ies $i/e 9ar$'oro a 'ra&d o# Cigarette "ade ') A$tria !ic! started
"a&u#acturi&g cigarettes i& 4F.8 ga+e ad+ertise"e&ts t!at 9ar$'oro is a o"e&s cigarette
'ased o& t!e s$oga& G9i$d as 9a)H* It 'eca"e t!e "ost popu$ar 'ra&d o# E&ited States i&
.004* 9ar$'oro 'eca"e so popu$ar t!at its sa$es &e+er ca"e do& i& t!e States a&d ear&ed
!uge re+e&ues* It started gi+i&g spo&sors!ip to "otor sports a&d raci&g cars* It as t!e "ai&
spo&sor #or Ferrari For"u$a O&e car a&d Ia"a!a i& Super Bi/e Raci&g* It 'eca"e #a"ous
g$o'a$$) ti$$ .002 t!roug! Ferrari !e& it o& t!e or$d c!a"pio&s!ip o# For"u$a O&e
Raci&g* I& "id1.006% specia$ @raci&g editio&s@ o# 9ar$'oro Red ere so$d i& t!e EK% it! a
Ferrari1i&spired desig&% a$t!oug! t!e Ferrari &a"e a&d 'adge ere &ot used*
9ost$) peop$e s"o/e cigarettes #or p$easure or 'ecause o# #rustratio& or pro'$e"* O&ce
t!e) start t!e) get addicted to it* It is +er) di##icu$t to o+erco"e t!e !a'it o# s"o/i&g ti$$ o&e
'eco"es used to it* I& #oreig& cou&tries "ost o# t!e peop$e started s"o/i&g cigarettes 'ecause
o# ce$e'rities s"o/i&g i& #i$"s a&d seria$s* T!is ga+e a 'oost to t!e cigarette "a&u#acturi&g
co"pa&ies ') i&crease i& t!eir sa$es a&d a$so pro"otio& o# t!e product as t!e de"a&d
i&creased* 9ost cou&tries i& t!e or$d !a+e a $ega$ s"o/i&g age o# 4:* Se+e& e3ceptio&s are
Austria% Be$giu"% De&"ar/% Ger"a&)% Portuga$% t!e E&ited Ki&gdo"% a&d T!e Net!er$a&ds%
!ere t!e age is 46*
1+
GOLD FLAKE
Si&ce Ja&uar) 4% .00- a$$ cigarette "ac!i&es i& pu'$ic p$aces i& Ger"a&) "ust atte"pt to
+eri#) t!e custo"ers age ') reAuiri&g t!e i&sertio& o# a de'it card* Tur/e)% !ic! !as o&e o#
t!e !ig!est perce&tages o# s"o/ers i& its popu$atio&% !as a $ega$ age o# 4:* A&ot!er curiosit)
is Japa&% o&e o# t!e !ig!est to'acco co&su"i&g &atio&s% !ic! reAuires purc!asers to 'e .0
)ears o# age* >oe+er% due to t!e pre+a$e&ce o# cigarette +e&di&g "ac!i&es i& t!e "ost
pu'$ic o# p$aces t!e e##ecti+e&ess o# a& u&derage 'a& is i& dou't*
I& ot!er cou&tries% suc! as Eg)pt or I&dia <especia$$) Kera$a= it is $ega$ to use a&d
purc!ase to'acco products regard$ess o# age* Appro3i"ate$) ,*, tri$$io& cigarettes are
produced g$o'a$$) eac! )ear ') t!e to'acco i&dustr)% s"o/ed ') o+er 4*4 'i$$io& peop$e%
!ic! is "ore t!a& 456 o# t!e or$d7s tota$ popu$atio&*
9a&) go+er&"e&ts i"pose restrictio&s o& s"o/i&g to'acco% especia$$) i& pu'$ic areas*
T!e pri"ar) Custi#icatio& !as 'ee& t!e &egati+e !ea$t! e##ects o# seco&d!a&d s"o/e* Las
+ar) ') cou&tr) a&d $oca$it)* I& I&dia t!e 'a& o& to'acco a&d cigarettes !as 'ee& i"p$ied
si&ce .00.% 'ut sti$$ t!e co"pa&ies co&ti&ue to "a&u#acture cigarettes as t!e s"o/i&g !a'its
o# t!e co&su"ers do &ot c!a&ge* T!roug! spo&sors!ip t!ese co"pa&ies tr) to pu'$is! t!eir
'ra&d &a"e a&d pro"otio& o# t!eir product* Cigarette ad+ertise"e&t is a$so do&e t!roug!
"o+ies !ere t!e ce$e'rities s"o/e cigarettes i& t!e #i$"* T!is a$so !e$ps i& 'ra&d a&d sa$es
pro"otio&* T!e I&dia& go+er&"e&t is tr)i&g !ard to i"pose strict actio&s agai&st t!ese
ad+ertise"e&ts a&d pro"otio&* E+e& t!oug! ') i"posi&g strict ta3 rate t!ese co"pa&ies are
a'$e to co&ti&ue t!eir 'usi&ess as 4*4 'i$$io& peop$e o# t!e or$d co&su"e cigarettes* I& "a&)
parts o# t!e or$d to'acco ad+ertisi&g a&d e+e& spo&sors!ip o# sporti&g e+e&ts !as 'ee&
out$aed* T!e 'a& o& to'acco ad+ertisi&g a&d spo&sors!ip i& t!e EE i& .00, !as pro"pted
For"u$a O&e 9a&age"e&t to $oo/ #or races i& areas t!at a$$o t!e to'acco spo&sored tea"s
to disp$a) t!eir $i+er)* As o# .00-% o&$) Ferrari retai&s to'acco spo&sors!ip% co&ti&ui&g t!eir
re$atio&s!ip it! 9ar$'oro u&ti$ .044* I& spite o# t!e i$$ e##ects a&d !ea$t! !aBards peop$e
co&ti&ue to s"o/e cigarettes #or p$easure or 'ecause o# !a'it* T!is !a'itua$ o# t!e peop$e
!e$ps t!e co"pa&ies to o+erco"e t!e 'a& a&d ad+ertise"e&t o& cigarettes a&d to'acco*

11
GOLD FLAKE
A<.;7 7)1 5'3+01771- I,6;-70: ./ I,6'+
T!e Cigarette I&dustr) is o&e o# t!e o$dest i&dustries i& I&dia* It is a& i"porta&t agro1
'ased i&dustr)* It is !ig!$) $a'our i&te&si+e a&d pro+ides $i+e$i!ood to a'out #i+e "i$$io&
peop$e direct$) a&d i&direct$)* Cigarette is a& ite" #a$$i&g u&der t!e First Sc!edu$e to t!e
I&dustries <De+e$op"e&t K Regu$atio&= Act% 4F,4 a&d reAuires a& i&dustria$ $ice&se*
T!e cigarette i&dustr) !as a$a)s 'ee& o& t!e recei+i&g e&d !e& it co"es to i"positio&
o# ta3es a&d duties i& t!e #i&a&cia$ 'udget o# t!e cou&tr)* T!e i&dustr) !as 'ee& ree$i&g u&der
e+er1i&creasi&g e3cise duties a&d i&&o+ati+e #or" o# ta3es $i/e $u3ur) ta3* A$so% due to t!e
!ig! ta3es i& t!e cou&tr)% t!e co"petiti+e&ess o# t!e I&dia& cigarette "a&u#acture is ad+erse$)
a##ected i& t!e g$o'a$ "ar/et* Its grot! is 'ei&g #urt!er sti#$ed ') t!e i"positio& o# 'a& o&
s"o/i&g at pu'$ic p$aces a&d 'a& o& ad+ertise"e&ts* I& additio& to t!is% i&creasi&g aare&ess
a'out !ar"#u$ e##ect o# s"o/i&g a&d $asuits i& ester& cou&tries !as "ade t!e e&tire
sce&ario prett) g$oo") #or t!e i&dustr)* T!is $eads to i&creased go+er&"e&t regu$atio& a&d
pu'$ic $itigatio& a&d a reduced a'i$it) to pro"ote t!e product* I& suc! a sce&ario% cigarette
co"pa&ies i& I&dia are goi&g i& #or u&re$ated di+ersi#icatio&* A$so% it! t!e i&creasi&g t!reat
to t!e to'acco i&dustr) as a !o$e a&d decreased co&su"ptio& $e+e$s o# cigarettes% &eed gaps
i& t!e "ar/et are 'ei&g "et ') &e products $i/e &o&1to'acco beedi% paan1 <'ete$ $ea#=
#$a+ored to'acco1#ree gu" $ets % a&d su'stitutes a&d to'acco patc!es $i/e C$ic/ !ic! are
targeted at t!e traditio&a$ cigarette co&su"er 'ase*
At prese&t% t!ere are 4F u&its i& t!e orga&iBed sector e&gaged i& t!e "a&u#acture o#
cigarettes it! a tota$ i&sta$$ed capacit) o# a'out 48-*2-- 'i$$io& pieces per a&&u"* T!e
productio& o# cigarettes duri&g .00410. as 60,-- "i$$io& stic/s* Duri&g t!e curre&t )ear i*e*
.00.102 <Apri$ .00. to Dece"'er% .00.= t!e productio& !as 'ee& 824F:*.0 "i$$io& stic/s* I&
ter"s o# +o$u"e% 'ids do"i&ate t!e I&dia& "ar/et #or to'acco products*
I&dia is t!e seco&d $argest producer o# to'acco i& t!e or$d a#ter C!i&a* It produced ,-.
"i$$io& /i$ogra"s o# to'acco i& .00.1.002* I&dia o&$) !o$ds a "eager 0*-; s!are o# t!e
ESL20 'i$$io& g$o'a$ I"port1E3port trade i& To'acco% it! cigarettes5cigarette to'accos
accou&ti&g #or :,; o# t!e Cou&tr)7s tota$ to'acco e3ports*
12
GOLD FLAKE
T!e to'acco i&dustr) !o$ds tre"e&dous pote&tia$ #or I&dia* For t!e go+er&"e&t% it "ea&s
e3cise duties a&d e3port re+e&ues% a&d #or t!e Cou&tr) i& ge&era$% it tra&s$ates i&to !uge
e"p$o)"e&t opportu&ities* Despite 'ei&g t!e seco&d $argest producer% I&dia is o&$) t!e &i&t!
$argest e3porter o# to'acco a&d to'acco products i& t!e or$d* Out o# t!e tota$ to'acco
produced i& I&dia% o&$) o&e1t!ird is #$ue1cured to'acco suita'$e #or cigarette "a&u#acturi&g*
9ost o# t!e to'acco produce is suita'$e #or t!e "a&u#acture o# c!ei&g to'acco% 'idis a&d
ot!er c!eap to'acco products% !ic! !a+e &o de"a&d outside t!e cou&tr)* T!ere is o&$) a&
e3port de"a&d #or #$ue1cured to'acco% !ic! is used #or cigarette "a&u#acturi&g*
I# I&dia adopted a ratio&a$ ta3 po$ic) #or t!e to'acco i&dustr) t!at e&couraged t!e groi&g
o# e3port to'acco% to'acco #ar"er i&co"e ou$d i&crease a&d e3port re+e&ue ou$d gro* I#
I&dia adopted C!i&a7s ta3 po$ic) o& to'acco% ta3 re+e&ue cou$d rise #ro" t!e curre&t Rs 6%024
crores to Rs ,8%000 crores* C!i&a7s eco&o")1orie&ted ta3 po$icies !a+e gi+e& cigarettes 400;
s!are o# do"estic to'acco co&su"ptio&* T!is stro&g do"estic 'ase !as pro+ed to 'e
co&duci+e to e3ports as e$$ as re+e&ue ge&eratio&* T!e I&dia& to'acco i&dustr) "a/es a +er)
su'sta&tia$ co&tri'utio& to e"p$o)"e&t* 2, "i$$io& peop$e are direct$) or i&direct$) e&gaged
i& t!e productio& a&d se$$i&g o# to'acco K to'acco products as s!o& i& t!e ta'$e 'e$o*
I& ter"s o# +o$u"e% 'idis do"i&ate t!e I&dia& "ar/et #or to'acco products* T!is
traditio&a$ I&dia& s"o/e !as s!o& stead) grot! duri&g t!e re+ie period% a$t!oug!
"a&u#acturers report t!at sa$es are &ot as !ig! as i& t!e 4F:0s* Cigarettes do"i&ate t!e
"a&u#actured to'acco products "ar/et* T!is i&+a$ua'$e stud) a&a$)ses t!e "ar/et #or
cigarettes i& I&dia o+er t!e ti"e period 4FF:1.00. a&d pro+ides #orecasts to t!e )ear .00-*
T!is tit$e i&+estigates /e) tre&ds a&d de+e$op"e&ts a&d ca& 'e used to e+a$uate co"petiti+e
t!reats( ide&ti#) strategic part&ers a&d acAuisitio& targets( a&a$)se "ar/et a&d 'ra&d s!are
tre&ds a&d #orecast grot! opportu&ities*
A$o)t the Co,pa'&
13
GOLD FLAKE
ITC as i&corporated o& August .8% 4F40 u&der t!e &a"e o# 7I"peria$ To'acco Co"pa&)
o# I&dia Li"ited7* T!e Co"pa&)7s o&ers!ip progressi+e$) I&dia&ised a&d t!e &a"e o# t!e
Co"pa&) as c!a&ged to I*T*C* Li"ited i& 4F-8* I& recog&itio& o# t!e Co"pa&)7s "u$ti1
'usi&ess port#o$io e&co"passi&g a ide ra&ge o# 'usi&esses o# Cigarettes K To'acco% >ote$s%
I&#or"atio& Tec!&o$og)% Pac/agi&g% Paper'oards K Specia$t) Papers% Agri1E3ports% Foods%
Li#est)$e Retai$i&g a&d Greeti&g Gi#ti&g K Statio&er) 1 t!e #u$$ stops i& t!e Co"pa&)7s &a"e
ere re"o+ed e##ecti+e Septe"'er 4:% .004* T!e Co"pa&) &o sta&ds rec!riste&ed 7ITC
Li"ited7*
ITC is o&e o# I&dia7s #ore"ost pri+ate sector co"pa&ies it! a "ar/et capita$iBatio& o#
&ear$) ES L 4, 'i$$io& a&d a tur&o+er o# o+er ES L 8*-, 'i$$io&* ITC is rated a"o&g t!e
?or$d7s Best Big Co"pa&ies% Asia7s 7Fa' ,07 a&d t!e ?or$d7s 9ost Reputa'$e Co"pa&ies ')
For'es "agaBi&e% a"o&g I&dia7s 9ost Respected Co"pa&ies ') Busi&ess ?or$d a&d a"o&g
I&dia7s 9ost Da$ua'$e Co"pa&ies ') Busi&ess Toda)* ITC a$so ra&/s a"o&g I&dia7s top 40
M9ost Da$ua'$e Co"pa&) Bra&ds7% i& a stud) co&ducted ') Bra&d Fi&a&ce a&d as a$so
pu'$is!ed ') t!e Eco&o"ic Ti"es* ITC e"p$o)s o+er .4%000 peop$e at "ore t!a& 60
$ocatio&s across I&dia* T!e Co"pa&) co&ti&uous$) e&dea+ors to e&!a&ce its ea$t!
ge&erati&g capa'i$ities i& a g$o'a$isi&g e&+iro&"e&t to co&siste&t$) reard "ore t!a&
8%6,%000 s!are!o$ders% #u$#i$$ t!e aspiratio&s o# its sta/e!o$ders a&d "eet societa$
e3pectatio&s*
ITC pio&eered t!e cu$ti+atio& a&d de+e$op"e&t o# Lea# To'accos i& I&dia* ITC !as !e$ped
t!e I&dia& #ar"er gro Aua$it) $ea# to'accos a&d $i&/ed !i" to g$o'a$ "ar/ets* ITC is t!e
$argest 'u)er% processor a&d e3porter o# $ea# to'accos i& I&dia 1 creati&g a g$o'a$ 'e&c!"ar/
as t!e si&g$e $argest i&tegrated source o# Aua$it) to'accos* ITC ser+es i& 8: cou&tries across
"ore t!a& 6F desti&atio&s* ITC 'u)s &ear$) ,0 per ce&t o# a$$ to'acco t)pes gro& i& I&dia*
ITC7s Gree& Lea# Processi&g p$a&ts at C!ira$a a&d A&aparti i& A&d!ra Prades!% t!e to'acco
!u' o# I&dia% are 'e&c!"ar/ed it! t!e 'est i& t!e or$d* ITC process a&d de$i+er 4.0 "i$$io&
/i$o gra"s o# !ig! Aua$it) to'accos a&&ua$$)* ITC7s co$$a'oratio& it! re$ated Go+er&"e&t
age&cies !as !e$ped de+e$op &e +arieties o# to'accos a&d e3p$ore &e areas #or to'acco
cu$ti+atio&*
ITC is t!e "ar/et $eader i& cigarettes i& I&dia* It7s !ig!$) popu$ar port#o$io o# 'ra&ds
i&c$udes I&sig&ia% I&dia Ki&gs% C$assic% Go$d F$a/e% Si$/ Cut% Na+) Cut% Scissors% Capsta&%
Ber/e$e)% Bristo$ a&d F$a/e* T!e Co"pa&) !as 'ee& a'$e to 'ui$d o& its $eaders!ip positio&
14
GOLD FLAKE
'ecause o# its si&g$e "i&ded #ocus o& +a$ue creatio& #or t!e co&su"er t!roug! sig&i#ica&t
i&+est"e&ts i& product desig&% i&&o+atio&% "a&u#acturi&g tec!&o$og)% Aua$it)% "ar/eti&g a&d
distri'utio&* I& t!e e3tre"e$) co"petiti+e ES "ar/et% ITC o##ers !ig!1Aua$it)% +a$ue1priced
cigarettes* ITC7s cigarettes are produced i& its state1o#1t!e1art #actories at Ba&ga$ore% 9u&ger%
Sa!ara&pur a&d Ko$/ata* T!ese #actories are /&o& #or t!eir !ig! $e+e$s o# Aua$it)%
co&te"porar) tec!&o$og) a&d or/ e&+iro&"e&t*
ITC is t!e $eadi&g p$a)er i& do"estic cigarette "ar/et* T!e co"pa&) co""a&ds o+er
60; "ar/et s!are 'ot! i& +a$ue a&d +o$u"e ter"s* T!e co"pa&) !as so"e o# t!e $eadi&g
'ra&ds o# cigarettes $i/e ?i$$s% Go$d F$a/e etc i& its port#o$io* T!e cigarette 'usi&ess #or"s
t!e 'read K 'utter 'usi&ess o# t!e co"pa&)* It gets "ore t!a& :,; o# re+e&ues* T!e co"pa&)
!as s$o$) a&d steadi$) &urtured its 'ra&ds o+er t!e )ears to secure t!is positio&* ?it!
"argi&s as !ig! as 80; i& cigarette 'usi&ess t!e co"pa&) !as ge&erated !uge a"ou&t o# cas!
#ro" its operatio&s a&d is t!us #aci&g t!e pro'$e" o# p$e&t)* T!e pro'$e" is &ot Cust restricted
to ITC it is t!roug! #or ot!er to'acco co"pa&ies a$so* T!oug! ITC7s "a&age"e&t !as good
trac/ record i& "a&agi&g its cigarette 'usi&ess% its report card o& di+ersi#icatio& a&d success
o# t!ese u&re$ated 'usi&ess !as &ot 'ee& good*
A-h#e.e,e't/
15
GOLD FLAKE
Ac!ie+ed #i+e star >ea$t! a&d Sa#et) Rati&g #ro" t!e Britis! Sa#et) Cou&ci$ #or its
cigarette #actories at Ba&ga$ore% 9u&ger% Ko$/ata a&d Sa!ara&pur a&d t!e @Sord
o# >o&or@ #or Ba&ga$ore K Sa!ara&pur #or .00610-*
Ba&ga$ore% Ko$/ata a&d Sa!ara&pur cigarette #actories o& t!e prestigious
Gree&tec! Sa#et) Go$d Aard #or t!e )ear .00- i& t!e "a&u#acturi&g sector*
T!ese aards are i& recog&itio& o# t!e !ig! $e+e$ o# per#or"a&ce t!at t!e u&its
!a+e ac!ie+ed i& E&+iro&"e&t >ea$t! a&d Sa#et) <E>S=* Sa!ara&pur a$o&g it!
Ko$/ata a&d 9u&ger #actories ere !o&ored it! t!e sa"e aard i& .006*
Ba&ga$ore Factor) !as a$so recei+ed t!e P$ati&u" Aard #or outsta&di&g
ac!ie+e"e&t i& sa#et) "a&age"e&t i& .006*
Ba&ga$ore Factor) !as o& t!e @Sa#et) I&&o+atio& Aard .006@ #or I&&o+ati+e
Sa#et) 9a&age"e&t S)ste" #ro" t!e Sa#et) K Nua$it) Foru" <I&stitutio& o#
E&gi&eers= a&d a$so E&&at!a Sura/s!a Puras/ara Aard #ro" NSC Kar&ata/a
C!apter*
T!e cigarette #actor) at Ko$/ata as aarded t!e @4st Natio&a$ Securit) Toda)
Aard .00,@ i& t!e categor) o# Best 9ai&tai&ed Fire Sa#et) S)ste"*
Ba&ga$ore% 9u&ger K Ko$/ata !a+e o& t!e prestigious Gree&tec! E&+iro&"e&t
E3ce$$e&ce Go$d Aard #or t!e )ear .006*
9u&ger #actor) o& t!e E3ce$$e&ce i& ?ater 9a&age"e&t Aard #ro" CII1GBC
#or .006*
16
GOLD FLAKE
0O12 31A4E
1
CHAPTER II
GOLD FLAKE
Go$d F$a/e is a ide$)1so$d cigarette 'ra&d i& I&dia a&d Pa/ista&* It is so$d i& +arious
+arieties% i&c$udi&g Go$d F$a/e Ki&gs <:8""=% Go$d F$a/e Lig!ts% Go$d F$a/e Fi$ter <Fi$ter
tipped= a&d Go$d F$a/e <p$ai&=* It is a e$$1positio&ed 'ra&d i& I&dia a&d is t!e "ar/et $eader
i& its seg"e&t* T!is 'ra&d is o&ed% "a&u#actured a&d "ar/eted ') ITC !ic! is $eader i&
cigarette i&dustr) i& I&dia* Ot!er popu$ar cigarette 'ra&ds o&ed ') ITC are ?i$$s% Scissors*
It is so$d i& t!ree +arieties* Go$d F$a/e Ki&gs is t!e $argest se$$i&g 'ra&d o# cigarettes i& I&dia*
It !as a "i$d #$a+our* Go$d#$a/e Fi$ter Ki&g SiBe Lig!ts <:8""= Go$d#$a/e $ig!ts is "i$der
t!a& Go$d F$a/e a&d co&tai&s co"parati+e$) $ess &icoti&e* Go$d#$a/e Fi$ter <S"a$$= Go$d#$a/e
Fi$ter <s"a$$= !as t!e stro&gest #$a+our a"o&gst t!e t!ree 'ra&ds** A pac/ o# 40 costs a'out 28
I&dia& rupees* Go$d#$a/e P$ai& <Fi$ter $ess=* T!e +er) origi&a$ Go$d#$a/e is si"p$) /&o& as
Go$d P$ai& or P$ai& i& sout!er& "ar/ets* It is t!e stro&gest o# a$$*
T!e cigarette "ar/et i& I&dia !as 8 p$a)ers ITC% a Britis! A"erica& To'acco <BAT=
a##i$iate% is t!e $argest cigarette "a&u#acturer it! 66; o# t!e "ar/et s!are* God#re) P!i$$ips
I&dia <GPI=% a P!i$$ip 9orris a##i$iate% a&d DaBir Su$ta& To'acco <DST=% a BAT a##i$iate% eac!
!a+e 42; o# t!e tota$ "ar/et s!are* Go$de& To'acco Co"pa&) <GTC= !as :; o# t!e "ar/et
s!are* T!ere are $ots o# popu$ar 'ra&ds !ic! are prese&t i& t!e I&dia& "ar/et* T!e) are
di+ided i&to 2 seg"e&ts !ic! are super pre"iu"% pre"iu"% a&d 'i&go seg"e&ts* Fe o# t!e
'ra&ds i& t!ese categories areO 1 Super pre"iu" 1 ?i$$s I&sig&ia Pre"iu"1 ?i$$s
C$assic59i$ds ?i$$s Na+) Cut% ?i$$s Si$/ Cut% Go$d F$a/e5Lig!ts% #our sAuare Bi&goP Bristo$%
Red a&d ?!ite*

Or#g#' o5 the Na,e
Go$d#$a/e as &eit!er a 'ra&d &or a process o# "a&u#acturi&g cigarettes* T!e ord @Go$d
F$a/e@ re#ers to cigarettes "ade usi&g 7'rig!t ric! go$de& to'acco7* Bra&ds ot!er t!a& i$$s
go$d #$a/e are Baco&s7 Go$d F$a/e% >ig&ett7s Go$de& F$a/ed >o&e) De% Sa$"o& a&d
Gu$c/stei&7s Go$d F$a/e*
1a)'-h a'6 Pro,ot#o'
1!
GOLD FLAKE
ITC $au&c!ed t!e 'ra&d Go$d #$a/e i& I&dia i& t!e se+e&ties* T!e source o# t!e positio&i&g
o# Go$d F$a/e ca& 'e traced 'ac/ to its ear$) da)s* I& t!e Se+e&ties% I&dia as a cou&tr) o# t!e
ge&tee$ ric!* Peop$e aspired to 'e !o&ora'$e a&d ge&tee$* T!e $i#est)$e o# t!e upper c$ass as
!at t!e custo"ers aspired #or* T!e i&itia$ ads said% G?!ere+er )ou go t!e) are goodH%H
>a+i&g #u& is! )ou ere t!ereH G?ort! its $e&gt! i& go$dH% t!e& ca"e t!e Gracious Peop$e
Ca"paig&s GFor t!e Gracious Peop$eH as t!e !ead$i&e #o$$oed ')% GA touc! o# Go$dH% it!
t!e !ead$i&e @A tri'ute to t!e Gracious Peop$e@*
Go$d F$a/e !ad 'ee& traditio&a$$) positio&ed as a pre"iu" cigarette* It targeted adu$t%
"a$e SEC A categor) s"o/ers* It as "ea&t to 'e a cigarette #or t!e 'est a&d t!e ric! P t!e
gracious peop$e o# I&dia* It did &ot di##ere&tiate itse$# speci#ica$$) #ro" ot!er 'ra&ds* T!e
'ra&d as co"pared it! Go$d #or t!e Aua$it) a&d purit) o# e3perie&ce* Ad+ertisi&g
e"p!asised t!is co"pariso& to go$d* T!e state"e&t P GFor t!e gracious peop$eH su""ed t!e
core o# t!e 'ra&d* T!e gracious peop$e as de#i&ed ') t!e 'ra&d ere t!e pre"iu" c$ass t!e)
ere success#u$% e$ega&t% a&d respo&si'$e% a&d !ad a se&se o# purpose*
T!e co&su"er as 'ou&ded i& t!e I&dia& et!os a&d roots* >e as percei+ed to 'e
u&approac!a'$e a&d socia'$e o&$) i& !is !ig! c$ass* ITC7s s!are o# #i$ter cigarettes i& t!e
cou&tr) is "ore t!a& -0;* I& pursuit o# i&ter&atio&a$ co"petiti+e&ess% ITC !as $au&c!ed #our
'ra&ds 1 C!ec/ers% >i1Da$% Ro)a$e C$assic a&d Go$d Crest 1 i& t!e e3tre"e$) co"petiti+e ES
"ar/et* Rece&t$) ITC !as $au&c!ed Ro)a$e C$assic% Go$d Cut a&d Scissors Fi$ter Ki&gs
cigarettes i& t!e 9idd$e East* T!e respo&se to t!ese 'ra&ds !as 'ee& e&couragi&g*
7#erar-h& o5 the Co,pa'&
1*
GOLD FLAKE
Ma')5a-t)r#'g Pro-e//
2+
C7AIRMAN
Y.C 2e.e/h8ar
I'6#a To$a--o a'6 C#garette 2#.#/#o'
Ch#e5 E(e-)t#.e
4)r)/h N 0ra't
I'6#a' 1ea5 To$a--o 2e.e%op,e't 2#.#/#o'
2#.#/#o'a% Ch#e5 E(e-)t#.e
S 9a'ar6ha' Re66&
7ea6: 7R
A 2)tt
VP: Mar;et#'g <
R<2
4 C "#66appa
7ea6: Pro-e//#'g < Te-h
S Ra,a;r#/h'a
E(=VP: Mar;et#'g
S M Ah,a6
E(=VP: Te-h'#-a% < 7R
T V Ra,a/8a,&
E(=VP: 3#'a'-e < MIS
R Ta'6o'
GOLD FLAKE
Co""ercia$$) "a&u#actured cigarettes are re$ati+e$) si"p$e o'Cects co&sisti&g "ai&$) o# a
to'acco '$e&d% paper% po$)+i&)$ acetate g$ue <PDA= to 'o&d t!e outer $a)er o# paper toget!er%
a&d o#te& a$so a ce$$u$ose acetate 'ased #i$ter* ?!i$e t!e asse"'$) o# cigarettes is
straig!t#orard% "uc! #ocus is gi+e& to t!e creatio& o# eac! o# t!e co"po&e&ts% i& particu$ar%
t!e to'acco '$e&d% !ic! o#te& co&tai&s o+er o&e !u&dred i&gredie&ts*
Cigarette rods are "a&u#actured at !ig! rates o# speed usi&g a cigarette "a/i&g "ac!i&e
!a+i&g a to&gue !ic! is eAuipped suc! t!at ater is co&ti&uous$) #ed t!ere t!roug! i& order
to e3it t!e sur#ace o# t!e to&gue !ic! co&tacts a to'acco #i$$er strea" passi&g t!roug! t!e
gar&iture regio& o# t!e cigarette "a/i&g "ac!i&e* T!e process o# i&troduci&g ater t!roug!
t!e to&gue duri&g a cigarette "a/i&g operatio& a$$os t!e "a&u#acture to produce a
co&ti&uous cigarette rod o# co&tro$$ed i&tegrit)* For e3a"p$e% cigarettes o# co&tro$$ed de&sit)
a&d #ir"&ess% a&d !a+i&g +er) $o a"ou&ts o# !ard spots% so#t spots a&d $oose e&ds% ca& 'e
"a&u#actured* T!e process pro+ides #or t!e "a&u#acture o# cigarettes at !ig! speeds% a&d #or
t!e "a&u#acture o# cigarettes !a+i&g !ig! #i$$i&g capacit) to'acco '$e&ds* For e3a"p$e%
cigarettes !a+i&g '$e&ds co"prisi&g re$ati+e$) !ig! $e+e$s o# +o$u"e e3pa&ded to'acco ca& 'e
"a&u#actured e##icie&t$) a&d e##ecti+e$)*
For "a&u#acturi&g process o# cigarettes i&c$udes si3 steps* It is a +er) $o&g process* As
t!e de"a&d #or cigarettes is i&creasi&g t!e de"a&d #or to'acco !as a$so 'ei&g i&creased*
Cigarettes are 'ei&g di##ere&tiated accordi&g to t!eir s"oot!&ess% !ard&ess% Aua$it)% siBe%
to'acco co&te&t% etc* 'ut t!e 'asic process #or "a&u#acturi&g is t!e sa"e* T!e si3 steps #or
"a&u#acturi&g cigarettes areO
4* To'acco >ar+est*
.* To'acco Curi&g*
2* To'acco gradi&g a&d 'u)i&g*
8* Pri"ar) processi&g*
,* Cigarette "a&u#acturi&g*
6* Pac/agi&g*
4= To$a--o 7ar.e/t >
21
GOLD FLAKE
ITC pio&eered t!e cu$ti+atio& a&d de+e$op"e&t o# Lea# To'accos i& I&dia* ITC is t!e
$argest 'u)er% processor a&d e3porter o# $ea# to'accos i& I&dia 1 creati&g a g$o'a$ 'e&c!"ar/
as t!e si&g$e $argest i&tegrated source o# Aua$it) to'accos* Ser+i&g custo"ers i& 8: cou&tries
across "ore t!a& 6F desti&atio&s% ITC co1creates a&d de$i+ers +a$ue at e+er) stage o# t!e $ea#
to'acco +a$ue c!ai& a&d a$so process a&d de$i+er 4.0 "i$$io& Kgs o# !ig! Aua$it) to'accos
a&&ua$$)* To'acco is produced i& A&da"a& a&d Nico'ar Is$a&ds% Dadra a&d Nagar >a+e$i%
De$!i% Po&dic!err) etc*
To'acco is !ar+ested i& t!e #o$$oi&g stepsO1
To'acco is a crop t!at ca& 'e gro& i& a ide ra&ge o# soi$s a&d c$i"atic co&ditio&s*
To'acco is a$so t!e o&$) crop t!at t!ri+es o& $o #erti$it) $a&d a&d is usua$$) gro& i&
rotatio& it! ot!er #ood crops a&d it &eeds co$d c$i"ate*
To'acco seeds are "i&iscu$e a&d ca&&ot 'e so& direct$) i& t!e #ie$d* Seed$i&gs are
#irst produced i& p$a&t 'eds or gree& !ouses a&d t!e& tra&sported a#ter se+e& ee/s ')
!a&d or p$a&ti&g "ac!i&es i&to t!e #ie$ds*
T!ese p$a&ts are t!e& #erti$iBed accordi&g to t!e t)pe a&d soi$ co&ditio&s* T!e to'acco
p$a&t is suscepti'$e to "a&) diseases a&d t!ere#ore% great care is ta/e& to protect t!ese
p$a&ts*
T!e to'acco p$a&t ge&era$$) ta/es arou&d , "o&t!s #ro" t!e ger"i&atio& stage to
!ar+est* I& so"e cou&tries suc! as 9a$a)sia #or e3a"p$e% t!ere are 2 crop !ar+ests i& a
)ear*
T!e t!ree t)pes o# to'acco t)pica$$) gro&% Dirgi&ia% Orie&ta$ a&d Bur$e) !a+e
+ar)i&g stages o# ripe&ess* So"e o# t!e to'acco $ea+es are !ar+ested ') !a&d !i$e
ot!er p$a&ts are cut o## at t!e sta$/% ta/i&g t!e e&tire p$a&t*
.= To$a--o C)r#'g >
22
GOLD FLAKE
I""ediate$) a#ter !ar+esti&g% to'acco is cured to re"o+e a$$ o# t!e &atura$ sap #ro"
t!e $ea+es so t!at it ca& 'e #urt!er processed a&d "a&u#actured* T!ere are t!ree
pri"ar) "et!ods o# curi&g cigarette to'accos% air curi&g% #$ue curi&g a&d su& curi&g%
'ut a$$ curi&g #ocuses o& regu$ati&g t!e rate at !ic! "oisture is re"o+ed #ro" t!e
to'acco*
T!e t!ree stages o# curi&gO Co$ori&gO T!e co&ti&uatio& o# &atura$ ripe&i&g process*
La"i&a dr)i&gO T!e $ea# tissue is dried to a particu$ar "oisture $e+e$* Ste" dr)i&gO
9oisture is re"o+ed #ro" t!e ste"*
F$ue curi&g ta/es p$ace i& c$osed structures it! +e&ti$atio& a&d arti#icia$ !eati&g* >eat
a&d !u"idit) are co&tro$$ed to re"o+e "oisture #ro" t!e $ea# a&d t!is dr)i&g process
#i3es t!e c!aracteristic ora&ge1)e$$o co$or* F$ue curi&g reAuires #our to se+e& da)s*
Air curi&g reAuires a& ope& #ra"eor/ !ere stic/s o# $ea+es or !o$e to'acco p$a&ts
are !u&g* Lea# co$or c!a&ges #ro" gree& to )e$$o to its #i&a$ 'ro& co$or as $ea+es
a&d ste"s dr) s$o$)* T!is process ta/es a'out o&e to to "o&t!s*
Su& cured to'acco is a$so ca$$ed orie&ta$ to'acco* T!ese $ea+es are usua$$) dried ')
stri&gi&g t!e to'acco $ea+es a&d $ea+i&g t!e" to dr) i& t!e su&* Su&1cured to'accos
!a+e c!aracteristic aro"as* T!is ta/es up to t!ree to #our ee/s*
2= To$a--o gra6#'g a'6 $)&#'g >
23
GOLD FLAKE
T!e Aua$it) o# to'acco is depe&de&t o& t!e curi&g a&d #er"e&tatio& processes* As a
resu$t% e+e& it!i& t!e sa"e t)pes o# to'acco% to di##ere&t 'atc!es o# to'acco are &ot
&ecessari$) t!e sa"e*
Depe&di&g o& t!e area% to'acco groers use to "ai& "et!ods o# se$$i&g to'acco 1 ')
auctio& or ') a co&tract s)ste"* T!e #or"er is !e& "erc!a&ts 'u) to'acco
se$ecti+e$) a&d t!e $atter is !e& t!e) 'u) t!e groers7 !o$e crop* ITC "ai&$)
purc!ases to'acco i& !o$e sa$e as it is $arge sca$e "a&u#acturer o# cigarettes*
T!e co"pa&) !as a$so !ired Just i& Ti"e <JIT= 'u)ers #or 'u)i&g Aua$itati+e to'acco
#or "a&u#acturi&g% so t!at t!e "a&u#acturi&g Aua$it) is a$so "ai&tai&ed* T!e JTI
'u)ers /&o e3act$) !at t!e) are $oo/i&g #or !e& it co"es to to'acco* T!e) see%
s"e$$ a&d #ee$ t!e di##ere&ce 'etee& t!e di##ere&t to'acco Aua$ities% !e& t!e) 'u) it
#ro" t!e "erc!a&ts*
Be#ore e3porti&g% Dirgi&ia a&d Bur$e) to'accos are t!res!ed* T!is i&+o$+es separati&g
t!e "idri' o# t!e $ea#% resu$ti&g i& #air$) s"a$$ pieces o# to'acco $a"i&a suita'$e #or
cigarette productio&* T!res!ed to'accos are t!e& pac/ed to speci#ic co&tro$$ed
"oisture $e+e$s* For JTI% gradi&g para"eters are sta$/ positio&% co$or% te3ture% aro"a%
a&d $ea# siBe*
ITC a$so purc!ases to'acco #ro" outside I&dia especia$$) Bur$e) to'acco !ic! is
used #or "a/i&g stro&ger cigarettes*
8= Pr#,ar& Pro-e//#'g >
24
GOLD FLAKE
A#ter t!e to'acco is stored a&d aged% it goes t!roug! a #i&a$ processi&g p!ase
accordi&g to '$e&d #or"u$as used #or "a/i&g +arious t)pes o# cigarettes* T!is process
i&c$udes '$e&di&g% co&ditio&i&g% casi&g% cutti&g% dr)i&g a&d top #$a+ori&g* O&ce t!is is
do&e% t!e ra "ateria$ is #i&a$$) read) to 'e "ade i&to cigarettes*
I& order to produce a c!aracteristic% !o"oge&eous '$e&d o# to'acco% di##ere&t t)pes o#
to'acco are "i3ed accordi&g to precise recipes* 9oisture is t!e& added to re&der it
supp$e e&oug! to 'e !a&d$ed% processed or "a&u#actured*
Casi&g re#ers to t!e sauce co"posed o# a +ariet) o# i&gredie&ts suc! as sugars%
!u"ecta&ts a&d aro"atic su'sta&ces app$ied to to'acco 'e#ore 'ei&g cut i&to t!i&
stra&ds ca$$ed cut rag*
?!e& t!e to'acco !as 'ee& cut it is dried a&d coo$ed to t!e #i&a$ "oisture reAuired
'e#ore cigarette "a&u#acture* T!e to'acco is t!e& read) #or t!e additio& o#
co&ce&trated sce&ts a&d aro"atic esse&ces ca$$ed top #$a+ors*
T!e top #$a+ors are spra)ed o&to t!e to'acco or app$ied i& dru"s* I& t!e
"a&u#acturi&g o# "e&t!o$ cigarettes% "e&t!o$ is spra)ed o&to t!e to'acco i&stead o#
top #$a+ors* A#ter t!is% t!e cut to'acco is p$aced i& si$os*
,= C#garette Ma')5a-t)r#'g >
25
GOLD FLAKE
ITC uses i&dustria$ "ac!i&es !ic! are capa'$e o# "ass1productio& up to 46%000
cigarettes per "i&ute* A#ter t!e to'acco !as 'ee& treated a&d processed% t!e to'acco is
"ade i&to cigarettes i& a "ac!i&e t)pica$$) ca$$ed t!e @9a/er@* T!e) t!e& are put
t!roug! Aua$it) co&tro$ c!ec/s to e&sure t!e) "eet predeter"i&ed sta&dards 'e#ore
'ei&g se&t to t!e pac/i&g "ac!i&e*
To'acco is tra&s#erred #ro" t!e si$os +ia a p&eu"atic tu'e s)ste" i&to t!e @9a/er@
"ac!i&e a&d t!e to'acco is s!aped i&to a circu$ar #or"* ?!ite cigarette paper is t!e&
#ed i&to a "ac!i&e #ro" a ro$$er*
T!e trade"ar/ $ogo is pri&ted a&d t!e paper is rapped arou&d t!e 'are to'acco* T!e
paper is t!e& sea$ed it! g$ue% creati&g a co&ti&uous cigarette stic/* A cutti&g too$
s$ices t!is i&to dou'$e1$e&gt! stic/s to !ic! a #i$ter is added*
T!e dou'$e1$e&gt! stic/s are cut i& !a$# a&d a dou'$e $e&gt! #i$ter is p$aced 'etee&
t!e to stic/s* Bro& cor/ paper is rapped arou&d t!e #i$ter to reCoi& t!e to !a$+es
a&d sea$ed it! g$ue creati&g to cigarettes Coi&ed 'ac/1to1'ac/*
Fi&a$$)% a& i&ge&ious "ec!a&is" di+ides t!e dou'$e cigarette a&d tur&s o&e !a$# t!e
ot!er a)s arou&d* T!is process e&sures t!at t!e cigarettes created are #aci&g t!e rig!t
directio& a&d read) #or t!e pac/i&g "ac!i&e*
6= Pa-;ag#'g >
26
GOLD FLAKE
Cigarettes t!at are read) #or pac/agi&g are tra&sported ') co&+e)er 'e$t to t!e
@pac/er@ "ac!i&e !ere t!e) are separated i&to #eeder c!a&&e$s to 'e i&serted i&to
pac/s* 9ea&!i$e% a$u"i&u" #ro" a ro$$er as e$$ as card'oard is #ed i&to a&ot!er
"ac!i&e a&d te"p$ate patter&s o# t!e pac/s are sta"ped out* Groups o# 40% .0 or 20
cigarettes are i&serted i&to t!e #i&is!ed i&&er $i&i&g a&d t!e& t!e #i&a$ e3ter&a$ pac/i&g
is added*
Ne3t co"es t!e rappi&g o# eac! pac/ it! a po$)prop)$e&e #i$" it! pu$$ stri&gs a&d
e$d* T!is is do&e to preser+e t!e !u"idit) o# t!e #res!$) "ade cigarettes 1 a +ita$
#actor i& preser+i&g t!eir o+era$$ Aua$it)*
T!e pac/i&g process% !oe+er% does &ot e&d t!ere* T!e #i&a$ part is to co$$ect t!e
i&di+idua$ pac/s o# cigarettes i&to carto&s o# te&% !ic! are agai& rapped ')
po$)prop)$e&e*
For custo"er s!ippi&g% #i#t) carto&s are auto"atica$$) pac/ed i& card'oard 'o3es* T!e
pa$$et "ac!i&e $i#ts t!e 4,g card'oard 'o3es eac! co&tai&i&g 40%000 cigarettes%
direct$) o& tra&sport pa$$ets*
Duri&g t!e cigarette "a&u#acturi&g process% e&gi&eers a&d tec!&icia&s co&duct
&u"erous Aua$it) co&tro$ c!ec/s aided ') a& arra) o# "o&itori&g de+ices as e$$ as
testi&g a&d "easure"e&t s)ste"s*
2
GOLD FLAKE
ATTRI"UTES O3 T7E PRO2UCT
2!
C50PTE6 III
GOLD FLAKE
Go$d F$a/e is a categor) 'ra&d &a"e #or t!e product c$ass o# cigarettes* T!e Go$d F$a/e
cigarettes are co"posed pri"ari$) o# go$de& to'acco% !ic! is disti&cti+e #eature #ro" ot!er
cigarettes* Go$d F$a/e cigarette is co"posed pri"ari$) o# go$de& to'acco <'rig!t$) co$ored
to'acco=% !ic! $i/e a&) ot!er to'acco is co&sidered i&Curious to !ea$t!* So"e ot!er cigarettes
!ic! are ge&era$$) &ot +er) pre+a$e&t a$so co&sist o# &icoti&e as opposed to to'acco*
>oe+er% suc! cigarettes are &ot "a&u#actured u&der Go$d F$a/e 'ra&d &a"e or ') ITC or ')
a&) 'ra&ded co"pa&)*
T!e s"o/e o# t!e cigarettes is co&sidered so !ar"#u$ t!at it causes diseases e+e& to t!e
passi+e s"o/ers% t!e diseases pri"ari$) o# respirator) disorder &ature* Paper is used to ro$$ t!e
to'acco i&side* Go$d F$a/e co"es i& +arious $e&gt!s a&d t)pes* T!e $e&gt! o# a cigarette
+aries #ro" 60"" to 400 ""* T!e +arious t)pes are #i$ter% p$ai& a&d "icros*
A cigarette !as "a) attri'utes a&d co"po&e&ts $i/e #i$ter% s!ape% eig!t% co$or% #or"
"ateria$% !ard% so#t% i&ter&a$ a&d e3ter&a$ parts% st)$e% etc*
T!e +arious co"po&e&ts a&d attri'utes o# GOLD FLAKE areO1
2*
3I1TE
7o%6er or A--e//or&
Paper ?5or,@
To$a--o I'/#6e
GOLD FLAKE
ShapeO T!e s!ape o# t!e Go$d F$a/e cigarette is c)$i&drica$ a&d is ca$$ed a stic/* It
!as go$de& to'acco ro$$ed i& paper it! #i$ter o& o&e side i& case o# #i$tered cigarettes*
1e'gth> T!e $e&gt! o# a cigarette +aries #or di##ere&t 'ra&ds* T!ere is di##ere&t ta3
rate c!arged ') t!e go+er&"e&t o& 'asis o# cigarette $e&gt!* >ig! $e&gt! o# cigarette
attract !ig! ta3 rate* T!e Go$d F$a/e cigarette <Large= !as t!e sta&dardiBed $e&gt! o#
:8"" a&d S"a$$ Go$d F$a/e is !a+i&g $e&gt! o# 6F""*
3or,> T!oug! t!e to'acco is a$so co&su"ed i& poder #or"% !oe+er i& case o#
cigarettes it is usua$$) s"o/ed* T!e s"o/e carries t!e 'ur&t to'acco partic$es it! it
!ic! act as a sti"u$a&t% satis#)i&g t!e "oti+e o# co&su"ptio& #or t!e co&su"er or
s"o/er*
C#garette Paper> T!e cigarette paper #or Go$d #$a/e co"es to t!e i&dustr)
rapped o& Bo''i&sO
a= ?idt!O .6 1 .-""
'= Le&gt!O ,%000 1 6%000"
Ae#ght> T!e to'acco is t!e "ai& co"po&e&t o# eig!t i& t!e cigarette*
GOLD FLAKE is o# di##ere&t siBes :8"" a&d 6F"" !ere t!e to'acco co&te&t is
di##ere&t !ic! "atters t!e eig!t o# t!e cigarette as e$$ as t!e siBe a&d price*
Co%or> T!e paper used is ge&era$$) !ite i& co$or* >oe+er% t!e !ite&ess o# t!e
paper +aries* T!e #i$ter co"es i& to co$ors t!at is go$de& a&d !ite*
Pr#-e> T!e price o# $arge pac/et o# Go$d F$a/e is Rs 2851 co&tai&i&g 40 cigarettes%
s"a$$ pac/et is Rs .:51 a&d $oose cigarette is Rs2*,051
3#%ter> It is a t)pe o# "ateria$ !ic! is used i& e+er) cigarette to reduced
irritatio&% coug!% 'ad 'reat!% e3cessi+e p!$eg"% a&d s"o/e ')1product o& teet!% #eer
s)"pto"s o# s!ort&ess o# 'reat!% tig!te&ed c!est% a&d !eart disco"#ort* Fi$ter is sa#e%
3+
GOLD FLAKE
!)gie&ic% a&d eas) to carr)* T!e speci#icatio&s o# t!e #i$ter used i& GOLD FLAKE
cigarettes areO
B Dia"eterO ,1- ""*
B Le&gt!O 42146""*
B ?eig!tO 4g*
B Fi$ter "ateria$O !ig!1Aua$it) &o&to3ic p$astic a&d i&&er core ood #i'er
B Pac/age "ateria$O !ig!1Aua$it) &o&to3ic p$astic s!eets a&d a$u"i&u" #oi$*
B ED steri$iBed*
E(ter'a% part/> As suc! t!ere is &o e3ter&a$ part% !oe+er% #e peop$e $i/e to
s"o/e it! a& additio&a$ pipe attac!ed to it !ic! a$so acts as a #i$ter*
St&%e> T!e i&!ere&t ord cigarette itse$# re#$ects st)$e i& so"e o# t!e co&su"er
"i&ds* Go$d #$a/e is pri"ari$) associated it! a state o# ric!&ess* 9ost cigarettes gi+e
a perceptio& o# co&#ide&ce to t!e user*
"e'e5#t/ o5 the Pro6)-t
31
GOLD FLAKE
Peop$e s"o/e cigarettes #or "a&) reaso&s as it !e$ps i& $osi&g eig!t% re$ease #ro" stress%
i# a&)o&e !as a stu##) &ose% a&d s"o/i&g i$$ !e$p t!e respirator) tract u&o'structed* It a$so
aids i& re$a3atio& a&d reduci&g 'oredo"* S"o/i&g a #i$ter cigarette causes $esser !ar" to
!ea$t! t!a& &o& #i$ter cigarettes*
T!e 'e&e#its o# t!e product !a+e 'ee& di+ided i&to to categories*
Pr#,ar& "e'e5#t/. Se-o'6ar& "e'e5#t/.
Superior Aua$it)*
Co&siste&t Aua$it)*
S"oot!&ess*
9i$d&ess*
Re#res!i&g*
Less Tar $e+e$*
I"pro+es co&ce&tratio&*
Reduces stress*
>e$ps $ose eig!t*
>e$ps to re$a3 a&d reduce 'oredo"*
>e$ps to socia$iBe*
Acts as appetite suppressa&t*
A co"pa&io& !e& $o&e$)*
Pri+ate i&du$ge&ce #or o"e&*
Pa-;ag#'g o5 the Pro6)-t
32
GOLD FLAKE
Go$d F$a/e cigarettes co"e i& pac/s co&tai&i&g 40 to .0 cigarettes* T!e pac/ets are
co&structed #ro" !ard paper% it! a ater resista&t g$oss) #i&is! o& t!e outside* T!e s!ape is
po$)go&a$ <si"i$ar to pac/s o# "a&) ot!er cigarette 'ra&ds= it! recta&gu$ar #aces* T!e pac/
ca& 'e ope&ed #ro" t!e top +ia a paper $id* T!e $id is $i&/ed a&d Coi&ed #or proper rotatio&*
T!e 'od) o# t!e pac/et is c!ro"e )e$$o it! a go$d 'a&d separati&g t!e red co$ored $id*
T!e $ogo is 'ordered it! go$d a&d disp$a)ed o& 'ot! t!e #ro&t a&d 'ac/ #aces o# t!e 'od) as
e$$ as o& t!e upper portio& o# t!e $id* T!e #ro&t #ace is depicted i& t!e i"age a'o+e* T!e
#ro&t a&d 'ac/ #aces !a+e a s$ig!t$) ri''ed te3ture arou&d t!e $ogo* GFILTER TIPPEDH a$o&g
it! a& : poi&ted star is ritte& i& go$d o& 'ot! sides o# t!e $id* O& o&e side o# t!e $id% t!e &o*
o# cigarettes i&side is ritte& i& go$d* O& t!e ot!er side o# t!e $id GNOT FOR SALE TO
9INORSH is ritte&* T!e statutor) ar&i&g is gi+e& at t!e 'ase o# t!e #ro&t #ace* T!e &o* o#
cigarettes% price a&d pac/agi&g is disp$a)ed at t!e 'otto" o# t!e pac/et* A$$ t!e ritte&
i&#or"atio& is i& a Sa&s Seri# st)$e #o&t*
Eac! si&g$e cigarette is !ite i& co$or it! a& oc!re co$ored 'otto" portio& <it! )e$$o
#$a/es=* ?*D* K >*O* ?i$$s is i&scri'ed 'ot! o& t!e pac/et a&d o& eac! cigarette i& a st)$iBed
#o&t* T!e $e&gt! o# t!e cigarette i& is arou&d 6F"" #or a pac/ siBe o# 40*
33
GOLD FLAKE
Mar;et#'g M#( o5 0o%6 3%a;e
34
C50PTE6 I#
GOLD FLAKE
T!e "ar/eti&g "i3 o# Go$d F$a/e co&sists o# #our Ps t!at is Pro6)-t: Pr#-e: P%a-e a&d
Pro,ot#o'. T!e e+a$uatio& o# t!e 8 Ps is do&e o& t!e 'asis o# t!e attri'utes o# t!e product%
co&su"ers taste a&d pre#ere&ce% researc! a&d de+e$op"e&t carried ') t!e co"pa&) regardi&g
t!e product% its retai$ out$ets etc*

1@ Pro6)-t >
35
GOLD FLAKE
"ra'6 'a,eO T!e 'ra&d &a"e o# Go$d #$a/e !as a +er) good positio& i& t!e
"ar/et* T!e 'ra&d &a"e o# Go$d F$a/e is popu$ar si&ce $ast ., )ears*
C)a%#t&O Go$d F$a/e o##ers superior Aua$it) o# cigarettes it! a di##ere&t t)pe o#
to'acco i*e* go$de& to'acco i& it% !ic! is 'ei&g '$eac!ed 'e#ore "a&u#acturi&g o# t!e
cigarette* T!is gi+es a di##ere&t t)pe o# Aua$it) to t!e product*
Sa5et&O It is $ess !ar"#u$ as t!e to'acco co&te&t is $ess* T!ere is a$so a #i$ter
co&&ected to t!e e&d o# t!e product% t!roug! !ic! t!e to'acco co&te&t is i&!a$ed i&
$ess proportio& !i$e s"o/i&g*
Pa-;ag#'gO T!e pac/agi&g o# Go$d F$a/e is do&e i& !ard card'oard paper* A pac/et
co&tai&s 40 cigarettes a&d s"a$$ pac/et co&tai&s , cigarettes* T!e pac/agi&g a$so
i&c$udes t!e ra "ateria$s used #or t!e product% t!e !ar"#u$ c!aracter o# t!e product
a&d t!e price o# t!e product*
A--e//or#e/O T!e accessories o##ered ') t!e product are a cigarette #i$ter a&d a$so a
cigarette !o$der #or s"o/i&g*
36
GOLD FLAKE
2@ Pr#-e>
Pr#-#'g /trateg&> T!e prici&g strateg) o# t!e co"pa&) depe&ds upo& t!e de"a&d
o# Go$d F$a/e a&d a$so t!e prices o# ot!er products* I# t!e price o# ot!er 'ra&d is !ig!
t!e prices o# Go$d F$a/e are $oered do&* I# t!e de"a&d #or t!e product is !ig! t!e
prices are rise& up*
Reta#% pr#-e> Go$d F$a/e !as di##ere&t categories* T!e price o# $arge pac/et o# Go$d
F$a/e is Rs 2851( s"a$$ pac/et is Rs .:51 a&d $oose cigarettes cost arou&d Rs 2*,051*
Vo%o),e pr#-#'g> T!e $arge pac/et o# Go$d F$a/e co&tai&s 40 cigarettes !ic! is
Rs 2851% s"a$$ pac/et Rs .:51 co&tai&s , cigarettes* T!ese prices are o##ered to t!e
co&su"ers* To retai$ers t!e price o##er is co"parati+e$) $ess t!a& t!at o# co&su"ers as
t!e 'u) i& 'u$/* T!e price depe&ds upo& t!e Aua&tit) o# t!e !o$esa$e purc!ase ') t!e
retai$ers*
Pr#-e 5%e(#$#%#t&> Price #$e3i'i$it) is +er) $ess i& t!is product* T!e prices c!a&ge
depe&di&g upo& t!e "ar/et a&d co&su"ers de"a&d a&d supp$)* T!e prices a$so
c!a&ges as per t!e ta3 rate a&d go+er&"e&t ru$es a&d regu$atio&s*
3
GOLD FLAKE
3@ P%a-e>
2#/tr#$)t#o' -ha''e%/> T!e distri'utio& c!a&&e$ starts #ro" t!e !o$e se$$er t!e&
t!e distri'uters* T!e t!ird part) is t!e retai$ers a&d t!e& #i&a$$) t!e retai$ers to t!e
co&su"ers*
Mar;et -o.erage> ITC co+ers a ide ra&ge o# t!e retai$ spectru"% #ro" pre"iu"
out$ets i& t!e "etros to s"a$$ s!ops i& t!e i&teriors o# rura$ I&dia*
Or6er pro-e//#'g> t!e order processi&g is do&e as per t!e de"a&d a&d supp$) o#
t!e product i& t!e "ar/et* I& t!is categor) o# product t!e de"a&d is i&creasi&g da)1')
Pda)% t!ere#ore eac! )ear t!e co"pa&) !as to i&crease its productio& as per t!e
i&creasi&g de"a&d* Especia$$) as t!e sta&dard o# rura$ co&su"er is i&creasi&g% t!e
de"a&d #or 'ra&ded cigarettes is a$so i&creasi&g* T!ere#ore order processi&g !as to 'e
do&e e$$ i& ad+a&ce*
Tra'/portat#o'> Lo&g dista&ce tra&sportatio& is do&e t!roug! truc/s a&d
co&tai&ers depe&di&g upo& t!e Aua&tit) o# t!e product to 'e tra&sported* S"a$$
dista&ce tra&sportatio& $i/e distri'uti&g to t!e $oca$ retai$ers is do&e t!roug! s"a$$
te"pos*
3!
GOLD FLAKE
4@ Pro,ot#o'>
Pro,ot#o'a% /trateg&O T!e product as pro"oted t!roug! ad+ertise"e&ts
si&ce it as $au&c!ed* T!e 'ra&di&g o# t!e product as do&e ') t!e ITC ')
app$)i&g to 'ra&di&g strategiesO <i= G>o&e)de s"oot!H ca"paig& <ii= Price
!i/es*
A6.ert#/#'g> Be#ore t!e 'a& ad+ertise"e&ts ere do&e t!roug! c!a&&e$s o#
"edia $i/e te$e+isio&% radio% posters etc* a#ter t!e 'a& o& ad+ertise"e&t% it is
ad+ertised i& "agaBi&es a&d t!roug! spo&sors!ip o# di##ere&t e+e&ts* A#ter t!e 'a&
Go$d F$a/e as a$so pro"oted t!roug! ?ord o# 9out!*
Mar;et#'g -o,,)'#-at#o'/ $)6get> Be#ore t!e 'a& ad+ertise"e&t ITC
i&+ested ,0 crores o& ad+ertise"e&t o# Go$d F$a/e* A#ter t!e 'a& o& ad+ertise"e&t
#eer a"ou&ts is spe&t o& "ar/eti&g co""u&icatio&*
3*
GOLD FLAKE
4+
C50PTE6 #
GOLD FLAKE
"ra'6#'g o5 0o%6 3%a;e
1@ ")#%6#'g the $ra'6 #,age>
To create a 'ra&d i"age o# Go$d F$a/e t!e co"pa&) started 'ra&di&g o# t!e product si&ce
it as $au&c!ed i& 4F-0* I& t!ose da)s I&dia as a cou&tr) o# t!e ge&tee$ ric!* T!e product
o##ered t!e user t!e se&se o# 'e$o&gi&g to t!e upper c$ass*
For creati&g a 'ra&d i"age( t!e ad+ertise"e&ts o# Go$d F$a/e $au&c!ed ') t!e co"pa&) i&
t!e se+e&ties as as per t!e co&su"ers taste a&d pre#ere&ce* T!e #irst ad+ertise"e&t as t!e
'a$co&) ad GFor t!e Gracious peop$eH% GA touc! o# Go$dH a&d GA tri'ute to t!e gracious
peop$eH*
But a#ter #e )ears t!is ad+ertise"e&t 'eca"e sta$e as a+erage age o# t!e co&su"er o#
Go$d F$a/e !ad #a$$e& a&d it a$so a##ected t!e sa$es o# t!e co"pa&) 'ecause t!e )ou&g
s"o/ers did &ot e"p!asis it! t!e 'ra&d* T!e 'ra&d did &ot sta&d #or success a&d
respecta'i$it) 'ecause t!e $i'era$iBatio& a&d g$o'a$iBatio& !ad c!a&ged t!e co&su"er &eeds
a&d "i&dset*
To o+erco"e t!is pro'$e" t!e co"pa&) #o$$oed a 'ra&d repositio&i&g strateg)* T!e
'ra&d as sti$$ positio&ed as a pre"iu" cigarette 'ut t!e target co&su"er !ad c!a&ged* Go$d
F$a/e t!e& targeted adu$t as e$$ as )ou&g s"o/ers* It e3te&ded 'e)o&d SEC A a&d i&c$uded
SEC B as e$$* T!e product sti$$ di##ere&tiated itse$# o& purit) a&d Aua$it) o# its e3perie&ce*
T!e ad+ertise"e&t G#or t!e Gracious Peop$eH as co&ti&ued it! a&ot!er s$oga& added to it
GCe$e'rate t!e Fee$i&gH to e&courage t!e )ou&g s"o/ers*


41
GOLD FLAKE
2@ "ra'6#'g Strateg#e/>
To 'ra&d strategies ere app$ied ') t!e co"pa&)* T!e #irst 'ra&d strateg) is "ore
Aua$itati+e i& &ature a&d is co&ce&trated o& i&creasi&g "ar/et s!are a&d $o)a$t) !i$e t!e
seco&d strateg) re#ers to t!e "ore Aua&titati+e aspects o# i&creasi&g 'otto" $i&e pro#its* T!e
'ra&d e3te&sio& strateg) !as a$so 'ee& "e&tio&ed*
A= D7o'e&6e8 /,oothE -a,pa#g'
At a ti"e !e& sa$es ere stag&ati&g% t!e ta&gi'$e a&d ide&ti#ia'$e ESP o# 'ei&g
!o&e)de s"oot! as associated it! Go$d F$a/e ') re+o$+i&g a$$ ad ca"paig&s arou&d it* It
as "ea&t to 'e u&iAue a&d dura'$e* It atte"pted to reig&ite $o)a$t) a"o&g its co&su"ers*
T!e !o&e) drop ico& i& e+er)t!i&g co&&ected it! t!e 'ra&d !ic! sig&i#ied t!e ide&ti#ia'$e
c!aracteristic o# t!e 'ra&d* E&$i/e t!e pre+ious ca"paig&s% t!e ESP as &ot deri+edQit as
a ta&gi'$e o##eri&g to t!e co&su"er* T!e !o&e) drop ico& as desig&ed to 'e recog&iBa'$e%
si"p$e a&d poer#u$* ?it! t!is% t!e ca"paig&s a$so #ocused o& s$oga& GT!e or$d o#
Go$d#$a/e* A$a)s "e$$o% A$a)s s"oot!*H
?it! t!is% t!e 'ra&d as positio&ed as a pre"iu" cigarette targeti&g )ou&g a&d adu$t
"a$e s"o/ers #ro" t!e SEC A K B categories i& t!e te&ties* T!e co&su"ers ere proCected
to 'e )ou&g% upard$) "o'i$e a&d co&te"porar) a&d !ad ac!ie+ed a s"oot! 'a$a&ce 'etee&
t!e +arious #acets o# t!eir $i+es*
T!e resu$ts ere +isi'$e it!i& a si&g$e Auarter* Sa$es !ad i&creased* T!e I&dia& "a$e
ide&ti#ied it! t!e 'ra&d a&d Go$d F$a/e as o& t!e pat! to success* I& .00.% t!e No* 4 spot
i& Bra&d EAuit)s #irst $isti&g o# I&dias 400 'iggest F9CG 'ra&ds e&t to Go$d F$a/e* Go$d
F$a/e re"ai&s I&dias 'iggest F9CG 'ra&d #or t!e )ear .002* It co&ti&ues to 'e tice as 'ig
as its &earest co"petitor <i& ter"s o# sa$es= a&d !as e+e& gro& ') a$"ost :; i& t!e )ear
.00.102*
42
GOLD FLAKE
"@ DPr#-e h#;e/E
I& t!e "o&t! o# Octo'er .004% t!e co"pa&) <ITC= i&creased prices o# its cigarettes ') 401
4:;* T!e "o+e as e$co"ed i& t!e "ar/et a&d t!ere as a 48; Cu"p i& t!e stoc/ price
<#ro" Rs*-4: o& Oct 40
t!
to Rs* :4F o& No+ .=* T!e Cu"p as so$e$) o& t!e reaso& t!at ITC is
so stro&g i& t!e "ar/et t!at suc! a !i/e i$$ &ot a##ect its +o$u"es or "ar/et s!are*
Go$d F$a/e <.0 stic/ #i$ter= price as i&creased #ro" Rs* 86 to Rs* 8: <8*2; i&crease=* I&
additio& to t!is% t!e go+er&"e&t i"posed a 4,; &atura$ ca$a"it) o& a$$ cigarettes* T!e e&tire
do"estic cigarette i&dustr) as a$so su##eri&g #ro" a ro'ust gre) "ar/et o# s"ugg$ed
cigarettes <grot! rate .0; p*a* 'ased o& price di##ere&tia$s=* T!ere as a$so a re"o+a$ o#
Aua&tit) restrictio&s o& i"porti&g cigarettes !ic! ou$d "a/e a$$ i&ter&atio&a$ 'ra&ds "ore
easi$) a+ai$a'$e i& t!e "ar/et*
I& suc! a sce&ario% t!e co"pa&) too/ a&ot!er 'o$d step ') i&creasi&g t!e price o# a$$ its
#i$ter 'ra&ds agai& <t!is ti"e i& t!e ra&ge o# 40120;=* Price o# Go$d F$a/e <.0 stic/ #i$ter=
&o i&creased #ro" Rs* 8: to Rs* ,2 <40*8; i&crease=
T!us t!e tota$ i&crease is #ro" Rs* 86 to Rs*,2 !ic! is 4,*.;* T!e 'ra&d co""a&ds a
pre"iu" i& t!e "ar/et a&d !e&ce t!e co"pa&) !as 'ee& a'$e to pass o& t!e e3cise !i/es o&to
t!e co&su"ers* T!is is 'ecause a !ig! degree o# 'ra&d $o)a$t) e3ists*
T!e &o* o# stic/s so$d ') t!e co"pa&) !as 'ee& decreasi&g co&ti&uous$) #or t!e past 218
)ears 'ut% a& i&creasi&g #ocus o& t!e pre"iu" seg"e&t a&d passi&g o& a&) !i/e i& e3cise o&
to t!e custo"ers !as !e$ped i& i&creasi&g t!e sa$es i& +a$ue ter"s*
ITC is a$so #o$$oi&g a 'ra&d e3te&sio& strateg)* It is e3te&di&g t!e &a"e o# GGo$d
F$a/eH to greeti&g cards* Duri&g Fi&a&cia$ Iear .000% t!e co"pa&) e3te&ded its Go$d F$a/e
'ra&d to ot!er tastes a&d #$a+ors* T!e 'ra&d eAuit) !as a$so 'ee& stretc!ed i&to products $i/e
$eat!er a&d #as!io& accessories* <Bra&d Stretc!i&g=
I& .00. a&d .002% Go$d F$a/e !as retai&ed t!e No* 4 spot i& Bra&d EAuit)s #irst $isti&g o#
I&dias 400 Biggest F9CG Bra&ds i& ter"s o# sa$es* It !as sa$es ort! Rs* 2F00 crores% !i$e
?i$$s Na+) Cut !as sa$es ort! Rs* 4,00 crores. Toda) t!e prices o##ered are Rs 28 a&d Rs
.:* T!us t!e prices are 'ei&g $oered ') t!e co"pa&)*
43
GOLD FLAKE
3@ 3a%% o5 the "ra'6 I,age>
Go$d #$a/e positio&s itse$# as a 'ra&d !ic! i&spires t!e custo"er to aspire #or #i&e $i+i&g*
T!is 'ra&d i"age !as 'ee& de+e$oped o+er t!e )ears% a&d t!e co&su"ers are accusto"ed to
t!e particu$ar '$e&d o# to'acco a&d t!e particu$ar $e+e$ o# #i$ter* T!e resu$ti&g s"oot!&ess is
!at disti&guis!es Go$d F$a/e #ro" t!e ITC 'ra&ds% suc! as I&dia Ki&gs% Go$d F$a/e% ?i$$s%
Scissors% Capsta&% Ber/e$e) a&d Bristo$*
But due to t!e 'a& o& ad+ertise"e&ts ') t!e go+er&"e&t i& .00. it a##ected t!e 'ra&d
i"age o# t!e product* Go$d #$a/e as &ot a##ected up to t!e core 'ecause t!e co"pa&) !ad
a$read) stretc!ed to ot!er product categories $i/e $eisureear a&d accessories% categories* ITC
su##ered a $oss o# 80 crores !ic! as i&+ested i& ad+ertise"e&t o# Go$d F$a/e* T!e
ad+ertisi&g a"ou&t co&stitutes +er) s"a$$ proportio& o# t!e tota$ sa$es +a$ue o# t!e 'ra&d i*e* .
P 2 ; o# t!e tota$ sa$es* It as &ot a 'ig dea$ #or t!e co"pa&) as #ar as i&+est"e&t as
co&cer&ed*
A#ter t!e 'a& t!e 'ra&d as &ot i& t!e e)es o# t!e co&su"er% so t!e pro"otio& o# t!e
product as do&e ') ?ord o# 9out!* T!e ot!er "ea&s #or t!e pro"otio& o# Go$d F$a/e as
t!roug! ad+ertise"e&ts i& "agaBi&es a&d spo&sors!ip #or di##ere&t e+e&ts a&d sports* T!e
'ra&d as a$so pro"oted t!roug! ce$e'rities $i/e Jo!& A'ra!a" s"o/e Go$d F$a/e cigarette
i& D>OO9 a&d a$so "a&) ot!er stars #or its pro"otio&*
T!e positi+e poi&t o# Go$d F$a/e as t!at it as !ar"$ess% a##orda'$e% Aua$it)% s"oot!
a&d it a$so !ad di##ere&t categories $i/e Go$d F$a/e >ard% Go$d F$a/e Fi$ter% s"a$$ siBe go$d
F$a/e a&d $arge siBe Go$d F$a/e* Because o# t!e e3ceptio&a$ attri'utes o# t!e 'ra&d t!e sa$es
o# Go$d F$a/e ere &ot a##ected* As i& .008 it as at &u"'er o&e positio& i& F9GC%
products peop$e co&ti&ued s"o/i&g t!e sa"e 'ra&d as t!e) &eeded t!e sa"e t)pe o# Aua$it)%
stress 'uster% s"oot!&ess a&d a##orda'$e price*
44
GOLD FLAKE
4@ Ma'age,e't a'6 Mar;et#'g o$Fe-t#.e 5or ,a#'ta#'#'g $ra'6 #,age>
T!e "a&age"e&t o'Cecti+e o# t!e co"pa&) i& #isca$ )ear .008 as to e"p!asiBe o&
"ai&tai&i&g a&d rei&#orci&g t!e 'ra&d i"age o# Go$d F$a/e* T!is ser+es t!e purpose o#
retai&i&g t!e !uge custo"er 'ase% a&d a+oids ca&&i'a$iBatio& o# t!e ot!er products #ro" t!e
sa"e co"pa&)*
I& spite o# t!e 'a& o& cigarette ad+ertise"e&t i& .00. a&d .002% Go$d F$a/e !as retai&ed
t!e No* 4 spot i& Bra&d EAuit)s #irst $isti&g o# I&dias 400 Biggest F9CG Bra&ds i& ter"s
o# sa$es* It !as sa$es ort! Rs* 2F00 crores% !i$e ?i$$s Na+) Cut !as sa$es ort! Rs* 4,00
crores.
I& Fi&a&cia$ Iear .008% Go$d F$a/e !ad a target grot! rate o# :; a&d proCected ear&i&g
e3ceedi&g Rs* 8.00 crores o# sa$es* ?!i$e t!e cigarette i&dustr) is e3pected to gro at 2;%
Go$d F$a/e is proCected to gro at :;* Go$d F$a/e e&Co)s t!e status o# a start product i& t!e
BCG "atri3* Last )ear% it ear&ed Rs* 2%F00 crores o# sa$es( dou'$e t!at o# its &earest ri+a$*
Si&ce t!e co"pa&) is dea$i&g i& t!e !a'itua$ 'u)i&g categor)% ITC <I&dia& To'acco
Co"pa&)= is co&#ide&t o# groi&g "ar/et s!are o# :; i& spite o# a price !i/e* T!e !i/e i$$
a$so co+er t!e cost o# DAT* For t!e "ai&tai&i&g t!e 'ra&d i"age t!e co"pa&) a$so !ad to
co&ce&trate o& t!e prices as per t!e #$uctuati&g de"a&d o# Go$d F$a/e* T!e de"a&d #$uctuates
'ecause o# t!e prices o# ot!er 'ra&ds a&d c!a&gi&g !a'its o# t!e co&su"er*
45
GOLD FLAKE
46
CHAPTER VI
GOLD FLAKE
ANA1YSIS O3 T7E SURVEY
Go$d F$a/e as $au&c!ed ') ITC i& t!e se+e&ties* T!is 'ra&d o# cigarette !as 'ee& i& t!e
I&dia& "ar/et si&ce t!e $ast 2, )ears* Its 'ra&di&g as do&e !e& it as $au&c!ed* T!e
product a$so !as "a&) attri'utes !ic! !as attracted t!e co&su"er* I& 4FF0 its ad+ertise"e&ts
started !ic! ga+e a 'oost to its sa$es* Ti$$ .000 t!e product !ad a good co"petiti+e positio&
i& t!e "ar/et* A#ter t!e 'a& o& ad+ertise"e&t o# cigarettes i& .00. ') t!e go+er&"e&t it !ad
+er) "odest a##ect o& its 'ra&d i"age* But i& .002 a&d .008 Go$d F$a/e ra&/ed No*4 i&
positio& i& t!e sa$es o# F9CG products Rs 2%F00 crores o# sa$es #o$$oed ') Pepsi Rs 4%--4
crores% T!u"ps up 4%6:: crores a&d t!e& ?i$$s Na+) Cut a&d Scissors it! sa$es o# Rs 4,00
a&d Rs 4800 crores* It as 'ei&g predicted t!at t!e sa$e o# t!e Go$d F$a/e ou$d rise i& .0061
.00-*
A sur+e) !as 'ee& carried out o& Go$d F$a/e it! co"pariso& o# ot!er 'ra&d o# t!e sa"e
co"pa&) <ITC= regardi&g t!e 'ra&d% price a&d sa$es o# t!e products* T!e sa"p$e siBe o# t!e
sur+e) is 5+ co&su"ers*
T!e Auestio&&aire co"pro"ises o# Aua$it)% attri'utes a&d sa$es +o$ou"e o# Go$d F$a/e as
e$$ as t!e 'ra&d &a"e% t!e price o# t!e product% ad+ertise"e&t o# t!e product a&d e##ect o#
ta3 rate o& t!e product*
4
GOLD FLAKE
N4= ?!ic! 'ra&d o# cigarettes do )ou 'u)R
Na"e o# t!e
'ra&d
GOLD FLAKE ?ILLS NADI
CET
SCISSORS NONE OF
T>ESE
Co&su"ers 4: 4- , 40

4!
34G
GOLD FLAKE
I'terpretat#o'/>
Fro" t!e a'o+e ta'$e it !as 'ee& see& t!at Go$d F$a/e a&d ?i$$s Na+) Cut !as a
stro&g co"petitio& as #ar as 'ra&d is co&cer&ed* Bot! t!e 'ra&ds are $au&c!ed ') ITC*
B) t!is it ca& 'e predicted t!at i& #uture eit!er Go$d F$a/e or ?i$$s Na+) Cut "a) 'e
t!e 'est 'ra&d o# cigarettes "a&u#acture ') ITC*
I& t!e diagra" Go$d F$a/e is pre#erred ') 26; o# t!e sa"p$e a&d ?i$$s Na+) Cut is
pre#erred ') 28;* ?!ereas Scissors is o&$) 40; a&d ot!er 'ra&ds .0;* T!e o&$)
co"petitor o# go$d #$a/e is ?i$$s Na+) Cut 'ut i& #uture it "a) a$so #ace !ard
co"petitio& #ro" i&ter&atio&a$ 'ra&ds* Rece&t$) 9ar$'oro% 9ar$'oro $ig!ts% ,,,% Four
SAuare etc are approac!i&g positi+e$) i& t!e upco"i&g "ar/et*
>e&ce as #ar as Go$d F$a/e a&d ?i$$s Na+) Cut are co&cer&ed ITC o&t 'e #aci&g
a&) pro'$e" as 'ot! t!e 'ra&ds are "a&u#actured ') ITC* T!e o&$) pro'$e" t!e
co"pa&) i$$ #ace is co"petitio& #ro" i&ter&atio&a$ 'ra&ds* It a$so depe&ds upo& t!e
co&su"er tastes a&d pre#ere&ces !ic! 'ra&d t!e) 'u)% eit!er t!e) "a) co&ti&ue it!
t!e sa"e 'ra&d or t!e) "a) c!a&ge t!eir 'ra&d* T!e co&su"ers taste a&d pre#ere&ces
is +er) di##icu$t #or t!e co"pa&) to predict a&d #orecast t!e de"a&d*
4*
GOLD FLAKE
N.= I# Go$d F$a/e% t!e& !) do )ou $i/e t!e Bra&dR
Factors o# t!e
'ra&d
Nua$it) A+ai$a'i$it) Da$ue #or
"o&e)
>ar"$ess
Co&su"ers .4 6 : 4,
5+
42G
GOLD FLAKE
I'terpretat#o'/>
I& t!e a'o+e diagra" it ca& 'e see& t!at 8.; o# t!e co&su"ers c!oose t!e 'ra&d
'ecause o# its good Aua$it)% 20; 'ecause it is !ar"$ess% 4.; o# t!e co&su"ers pre#er
it 'ecause it is a+ai$a'$e i& t!e "ar/et a&d 46; o# t!e co&su"ers c!oose it 'ecause it
is +a$ua'$e*
Go$d F$a/e is good i& Aua$it) 'ecause o# t!e di##ere&t t)pe o# to'acco used i& it !ic!
disti&guis!es it #ro" ot!er 'ra&ds* T!ere are a$so di##ere&t t)pes i& Go$d F$a/e
cigarettes $i/e !ard% s"a$$ i& siBe% #i$ter cigarettes etc* T!is gi+es t!e co&su"er a
c!oice i& Go$d F$a/e rat!er t!a& se$ecti&g a&ot!er 'ra&d* T!ere#ore "ost o# t!e
co&su"ers pre#er Go$d F$a/e #or its good Aua$it)*
A'out 20; o# t!e co&su"ers pre#er t!e 'ra&d 'ecause it is !ar"$ess* As s"o/i&g is
'ad #or !ea$t! t!e i$$ e##ects a&d !aBards o# cigarettes is a$a)s t!ere i& t!e "i&ds o#
t!e co&su"ers* T!ere#ore t!ese co&su"ers do &ot s"o/e !ard Go$d F$a/e( t!e) eit!er
pre#er Fi$ter Go$d F$a/e or S"a$$ Go$d F$a/e 6F""*
A'out 4.; o# t!e peop$e pre#er t!e 'ra&d 'ecause it is a+ai$a'$e i& t!e "ar/et a&d
si3tee& perce&t o# t!e co&su"ers pre#er it 'ecause it +a$ua'$e*

51
GOLD FLAKE
N2= >o "a&) pac/s do )ou 'u) eac! ti"eR
52
No* o# pac/ets 4 . 2 8 9ore t!a& 8
Co&su"ers 4: 48 : 6 8
GOLD FLAKE
I'terpretat#o'/>
A'out 26; perce&t o# t!e co&su"ers i*e* out o# ,0( 4: co&su"ers 'u) 4 pac/et o#
Go$d F$a/e eac! ti"e* Te&t) eig!t perce&t o# co&su"ers i*e* out o# ,0( 48 pre#er
'u)i&g . pac/ets* Si3tee& perce&t pre#er 2 pac/ets #or 'u)i&g t!e cigarettes* Te$+e
a&d eig!t perce&t o# t!e co&su"ers pre#er 'u)i&g 8 pac/ets or "ore t!a& #our*
Bu)i&g o# t!e pac/et depe&ds upo& t!e addictio& o# t!e co&su"ers to t!e cigarette
'ra&d* O& o&e !a&d it is 'ad #or t!e co&su"ers !ea$t! 'ut o& t!e ot!er !a&d it is good
#or t!e co"pa&)s sa$e*
53
GOLD FLAKE
N8= >o "uc! do )ou spe&d o& 'u)i&g Cigarettes eac! "o&t!R
A"ou&t
spe&t
Rs4001Rs,00 Rs,001
Rs4000
Rs40001
Rs4,00
Rs4,001
Rs.000
9ore t!a& Rs .000
Co&su"ers .0 40 6 : 6
54
GOLD FLAKE
I'terpretat#o'/>
A'out .0 co&su"ers out o# ,0 spe&d Rs 4001,00 o& 'u)i&g cigarettes eac! "o&t! t!at
is a'out 80; o# t!e tota$ sa"p$e siBe*
40 co&su"ers spe&d Rs ,0014000 !ic! co"pro"ises o# a'out .0;*
A'out Rs400014,00 is 'ei&g spe&t ') 6 co&su"ers !ic! are 4.; o# t!e sa"p$e siBe*
A'out 46; o# t!e sa"p$e siBe i*e* : out o# ,0 co&su"ers spe&t Rs 4,001.000 o&
cigarette eac! "o&t! a&d 6 co&su"ers i*e* 4.; o# t!e sa"p$e siBe spe&t "ore t!a&
Rs.000 o& purc!asi&g cigarettes*
B) ta/i&g t!is i&to accou&t it ca& 'e a&a$)sed t!at o# a'out Rs 400014,00 o& a&
a+erage% !as 'ee& spe&d ') t!e co&su"ers o& 'u)i&g t!e 'ra&d*
N,= Do )ou t!i&/ t!at Go$d F$a/e is t!e 'est 'ra&d #or cigarettes i& I&diaR
55
GOLD FLAKE
Ies 5NO Ies No
Co&su"ers .F .4
ES
N7
5!G 42G
I'terpretat#o'/>
A'out .F o# t!e co&su"ers out ,0 "e&tio&ed t!at Go$d F$a/e is t!e 'est 'ra&d o# cigarettes
a&d .4 o# t!e co&su"ers "e&tio&ed t!at it is &ot t!e 'est 'ra&d*
56
GOLD FLAKE
N6= I# IES t!e& "e&tio& )our reaso&s( I# NO t!e& "e&tio& )our reaso&*
A'out ,:; o# t!e co&su"ers o# t!e tota$ sa"p$e siBe "e&tio&ed t!at Go$d F$a/e is t!e 'est
'ra&d #or cigarettes 'ecauseO
It !as good Aua$it) a&d !ar"$ess* It is a+ai$a'$e i& t!e "ar/et* It is a##orda'$e a&d a$so
as its 'ra&d i"age is popu$ar si&ce $ast ., )ears% it is recog&iBed as t!e 'est 'ra&d o#
cigarettes i& I&dia*
It is a$so 'est 'ecause it pro+ides di##ere&t t)pes o# cigarettes as per t!e co&su"er
pre#ere&ce*
A'out 8.; o# t!e co&su"ers t!e tota$ sa"p$e siBe "e&tio&ed t!at Go$d F$a/e is &ot t!e 'est
'ra&d #or cigarettes 'ecauseO
It is "ore cost$) t!a& ot!er cigarettes% t!ere#ore t!e co&su"er pre#er ot!er 'ra&ds or
'idis !ic! are $ess i& price t!a& t!at o# Go$d F$a/e*
It is &ot co&sidered as t!e 'est 'ra&d 'ecause its 'ra&d i"age is &ot popu$ar as t!at o#
t!e ot!er cigarette 'ra&ds $i/e 9ar$'oro% Ca"e$ etc* 'ei&g at t!e i&ter&atio&a$ $e+e$s
t!ese 'ra&ds !as t!e sa"e Aua$it) a&d price as t!at o# Go$d F$a/e*
It is a$so &ot t!e 'est 'ra&d 'ecause ?i$$ Na+) Cut a$so !as a god Aua$it) #actor a&d is
$ess !ar"#u$ t!a& Go$d #$a/e*
5
GOLD FLAKE
N-= ?!at is )our opi&io& a'out t!e price o# Go$d F$a/eR
Price o# Go$d F$a/e A##orda'$e Cost$) C!eap
Co&su"ers .: : 48
5!
GOLD FLAKE
I'terpretat#o'/>
T!e price o# Large Go$d F$a/e is Rs 2851 S"a$$ Go$d F$a/e is Rs .:51 a&d $oose
cigarette is Rs 2*,051
I& t!e a'o+e diagra" .: co&su"ers out o# ,0 i*e* a'out ,6; o# t!e tota$ sa"p$e siBe
#i&d t!at t!e price o# t!e cigarette a##orda'$e* It a$so depe&ds upo& t!e co&su"er
!et!er !e is 'u)i&g a pac/et or $oose cigarettes*

A'out 46; o# t!e tota$ sa"p$e siBe o# t!e co&su"ers i*e* 48 co&su"ers out o# ,0
stated t!at t!e price o# Go$d F$a/e is cost$)*
48 co&su"ers "e&tio&ed t!at price o# Go$d F$a/e is c!eap i*e* a'out .:; o# t!e tota$
sa"p$e siBe o# t!e co&su"ers*
5*
ES N7
3+G
GOLD FLAKE
N:= Do )ou t!i&/ t!at t!e co"pa&) s!ou$d acco"pa&) t!e 'ra&d Go$d F$a/e it! a&)
ce$e'rit) #or its pro"otio& a&d ad+ertise"e&tR Gi+e )our reaso&s*
IES5NO IES NO
Co&su"ers 4, 2,
6+
+G
Co'/),erH/ op#'#o' 8hether the -o,pa'& /ho)%6 a--o,pa'& the $ra'6
0o%6 3%a;e 8#th a'& -e%e$r#t& 5or #t/ pro,ot#o' a'6 a6.ert#/e,e't
GOLD FLAKE
I'terpretat#o'/>
T!e ad+ertise"e&t o# Go$d F$a/e is do&e t!roug! spo&sors!ip a&d p!otos i& "agaBi&es*
Reaso&s gi+e& ') t!e co&su"ersO
Fro" t!e a'o+e ta'$e 4, co&su"ers out o# ,0( i*e* a'out 20; o# t!e tota$ sa"p$e siBe
"e&tio&ed IES 'ecauseO
I& "o+ies "a&) ce$e'rities s"o/e cigarettes( t!roug! t!e" t!e co"pa&) ca& ad+ertise
its 'ra&d% t!is i$$ o&$) !e$p t!e co"pa&)*
T!roug! ce$e'rit) e&dorse"e&t t!e 'ra&d &a"e i$$ popu$ar* It ca& o&$) 'e do&e
t!roug! "agaBi&es*
A'out -0; o# t!e tota$ sa"p$e siBe "e&tio&ed NO 'ecauseO
T!roug! ce$e'rit) e&dorse"e&t it i$$ a##ect t!e cu$ture o# t!e peop$e*
It i$$ a$so a##ect t!e age $i"it #or s"o/i&g o# cigarettes*
As a$read) t!ere is 'a& o& s"o/i&g ad+ertise"e&t% a&d i# a&) ce$e'rit) is supporti&g
t!e 'ra&d% !e "ig!t get i& to trou'$e* As i& t!e "o+ie DON !ere S!a!ru/! K!a&
s"o/es cigarette% t!e ce&sor 'oard pu'$is!ed t!e "o+ie as a& adu$t "o+ie*
61
GOLD FLAKE
NF= Do )ou t!i&/ t!e 'a& o& ad+ertise"e&t o# Cigarettes !as a##ected t!e 'ra&d &a"e o#
Go$d F$a/eR Gi+e )our reaso&s*
IES5NO IES NO
Co&su"ers 48 26
I'terpretat#o'/>
62
2G
Co'/),erH/ op#'#o' a$o)t the $a' o' a6.ert#/e,e't o5
C#garette/ ha/ a55e-te6 the $ra'6 'a,e o5 0o%6 3%a;e.
GOLD FLAKE
Reaso&s gi+e& ') t!e co&su"ersO
A'out .:; o# t!e tota$ sa"p$e siBe said IES% t!at t!e 'a& o& ad+ertise"e&t !as a##ected t!e
'ra&d &a"e o# Go$d F$a/e 'ecauseO
It is &ot i& t!e e)es o# t!e co&su"er*
Because o# t!e 'a& #e co&su"ers dou'ted t!e Aua$it) o# t!e product*
A#ter t!e 'a&% t!e 'ra&d Go$d F$a/e does &ot sta&d as a& e3ceptio&a$ 'ra&d #ro" t!e
ot!er 'ra&ds o# cigarettes*
A'out -.; o# t!e co&su"ers "e&tio&ed NO% t!at t!e 'ra&d &a"e !as &ot 'ee& a##ected
'ecauseO
T!e 'ra&d &a"e o# Go$d F$a/e as &ot a##ected 'ecause o# its Aua$it)*
ITC pro"oted t!e 'ra&d t!roug! "agaBi&es a&d spo&sors!ip% so Go$d F$a/e as i&
t!e e)es o# t!e co&su"er*
E+e& a#ter t!e 'a& o& ad+ertise"e&t i& .00.% t!e sa$es o# Go$d F$a/e as 2F00 crores
i& t!e #i&a&cia$ )ear.0021.008 a&d t!e 'ra&d ra&/ed i& No*4 positio& as t!e !ig!est
sa$es i& F9CG products*

63
GOLD FLAKE
40= S!ou$d go+er&"e&t i"pose !ig! ta3 rate o& 9a&u#acturi&g a&d Pro"otio& o# Go$d
F$a/eR Gi+e )our reaso&s*
IES5NO IES NO
Co&su"ers 4: 2.
64
64G
GOLD FLAKE
I'terpretat#o'/>
Reaso&s speci#ied ') t!e co&su"ersO
A'out 4: co&su"ers out o# ,0 i*e* 26; o# t!e tota$ sa"p$e siBe "e&tio&ed IES 'ecauseO
T!e sa$es o# Go$d F$a/e are +er) !ig! eac! )ear( t!ere#ore ') i"posi&g !ig! ta3 rate
t!e go+er&"e&t ca& i&crease its re+e&ues*
A'out 2. co&su"ers i*e* 68; o# t!e tota$ sa"p$e siBe "e&tio&ed NO 'ecauseO
Due to !ig! ta3 rate t!e prices o# t!e product i$$ i&crease% !ic! i$$ 'eco"e cost$ier
#or t!e co&su"ers*
A$so due to !ig! ta3 rate t!ere i$$ 'e +ast c!a&ge i& t!e de"a&d as e$$ as supp$) o#
t!e product*
65
GOLD FLAKE
66
C50PTE6 #II
GOLD FLAKE
SAOT ANA1YSIS
6
GOLD FLAKE
STREN0T7S
4= T!e "ai& stre&gt! o# t!e co"pa&) is t!e 'ra&d I"age o# Go$d F$a/e* I& spite o# 'a& o& t!e
ad+ertise"e&t t!e product as at No*4 positio& i& F9CG products i& .0021.008 a&d its
sa$es ere up to Rs 2F00 crores*

.= T!e attri'utes o# t!e product is as per t!e co&su"er aspiratio&s% speci#icatio&s a&d taste* It
!as !ig! percei+ed Aua$it)( it is a##orda'$e ') t!e co&su"ers* T!is #actor !as !e$ped t!e
co"pa&) to /eep stead) "argi& o# its sa$es +o$u"e*
2= T!e co"pa&) !as a& e3ce$$e&t distri'utio& c!a&&e$ o# &etor/ !ic! !as e&a'$ed t!e
a+ai$a'i$it) o# products i& di##ere&t regio&s as per t!e co&su"er de"a&d a&d supp$) #or
t!e product*
8= T!e Go$d F$a/e 'ra&d &a"e !as 'ee& pro"oted t!roug! +acatio& tours GGo$d F$a/e
Go$de& Getaa)sH* ITC !as a$so paid I&dia& te&&is stars to e&dorse Go$d F$a/e cigarettes*
,= I& 9u"'ai% Go$d#$a/e #ro" ITC !o$ds t!e $io&7s s!are o# t!e "ar/et se$$i&g 60 "i$$io&
stic/s* Four SAuare specia$ co"es seco&d it! ,, "i$$io& stic/s a&d ?i$$s is t!ird
6!
GOLD FLAKE
AEA4NESS
4= T!e "ai& ea/&ess o# t!e co"pa&) is t!at a#ter t!e 'a& o& ad+ertise"e&t it is &ot a'$e to
pro"ote t!e product o& !ig!er 'asis as it as pro"oted 'e#ore t!e 'a&*
.= T!e ot!er ea/&ess is t!e "a&u#acturi&g process !ic! is +er) ti"e co&su"i&g*
So"eti"es it is +er) di##icu$t #or t!e co"pa&) to supp$) t!e cigarettes as per t!e de"a&d(
it is 'ecause t!e de"a&d o# Go$d F$a/e is i&creasi&g rapid$)*
2= 9ost t!e ti"es t!e co&su"er pre#ers t!e price o# t!e product #irst a&d t!e& t!e Aua$it) a&d
ot!er #actors* T!e price o# Go$d F$a/e is Rs 2851 t!ere#ore as a !ig! price product t!e
Aua$it) is ig&ored ') t!e co&su"er a&d t!e& t!e) pre#er to 'u) 'idis or pa&*
8= T!e &e3t ea/&ess is t!at t!e co"pa&) is &ot a'$e to 'ui$d a #urt!er 'ra&d i"age due to
t!e 'a& o& ad+ertise"e&t* T!e 'ra&di&g o# t!e co"pa&) is do&e o& s"a$$ 'asis !ic! is
!ard$) e+er see&*
,= ITC &ot o&$) "a&u#acturers Go$d F$a/e 'ut a$so ?i$$s Na+) Cut% Bristo$% Four SAuare
etc* It 'eco"es di##icu$t #or t!e co"pa&) to di##ere&tiate a&d decide t!e Aua$it)% price a&d
ot!er #actors o# t!e cigarettes !i$e "a&u#acturi&g a&d distri'uti&g*
6*
GOLD FLAKE
OPPORTUNITIES
4= T!e opportu&it) o# t!e co"pa&) <ITC= is to reduce t!e price o# t!e product a&d o##er t!e
sa"e Aua$it)* T!is i$$ i&crease t!e sa$es +o$u"e o# t!e co"pa&)*
.= T!e pac/agi&g o# t!e product s!ou$d 'e c!a&ged a&d eac! a&d e+er) attri'ute s!ou$d 'e
"e&tio&ed o& t!e pac/et a&d a$so t!e $e+e$ o# !ar"$ess s!ou$d 'e "e&tio&ed* T!is i$$
!e$p i& ?ord o# 9out! "ar/eti&g*
2= As ITC is 'ei&g recog&iBed as ?or$d7s Best Big Co"pa&ies a&d t!e ?or$d7s 9ost
Reputa'$e Co"pa&ies ') For'es "agaBi&e% t!e co"pa&) ca& $au&c! Go$d F$a/e at
i&ter&atio&a$ $e+e$ t!roug! co$$a'oratio& it! sports e+e&ts !e$d at i&ter&atio&a$ $e+e$ a&d
a$so it! ot!er 'ra&ds*
8= I& I&dia t!e co"pa&) ca& $au&c! t!e product Go$d F$a/e as "i$d cigarette a&d $ess
!ar"#u$ #or co&su"er attractio&*
+
GOLD FLAKE
T7REATS
4= T!e t!reats o# t!e co"pa&) are co"petitio& #ro" i&ter&atio&a$ co"pa&ies* T!e "ai&
co"petitors are 9ar$'oro% 9ar$'oro Lig!ts% a&d ,,, cigarettes* T!ese co"pa&ies are
#a"ous at i&ter&atio&a$ $e+e$ a&d a$so as a& i"ported cigarette 'ra&d it! a##orda'$e
price( t!e co&su"ers pre#er to 'u) t!e"*
.= T!e pro"otio& do&e ') t!e co"pa&) o# Go$d F$a/e is t!roug! ad+ertise"e&ts i&
"agaBi&es a&d spo&sors!ip% !ere as t!e ad+ertise"e&t o# t!e i&ter&atio&a$ co"pa&ies
$i/e 9ar$'oro a&d Ca"e$ is do&e o& i&ter&atio&a$ $e+e$% $i/e spo&sors!ip to Ferrari tea" i&
For"u$a O&e a&d a$so to Super Bi/e raci&g* Ca"e$ cigarettes gi+e spo&sors!ip to Ra$$)
Races i& A#rica a&d EK* T!is is t!e 'iggest t!reat to t!e 'ra&d i"age o# t!e co"pa&) at
&atio&a$ as e$$ as i&ter&atio&a$ $e+e$*
2= T!e &e3t t!reat "a) a$so 'e t!e c!a&gi&g !a'its o# t!e co&su"er( t!e) "a) Auit s"o/i&g
due to its i$$ e##ects a&d !aBards* T!is "a) a##ect t!e sa$es as e$$ as t!e 'ra&d i"age o#
t!e product
8= I& #uture t!e go+er&"e&t "a) co"p$ete$) put 'a& o& ad+ertise"e&t o# cigarettes or a$so
put a 'a& o& spo&sors!ip u&der t!e co&sideratio& t!at cigarette is !ar"#u$ #or !ea$t!* T!is
i$$ 'e t!e 'iggest t!reat #or t!e product as e$$ as t!e co"pa&)*
1
GOLD FLAKE
2
CHAPTER VIII
GOLD FLAKE
Co'-%)/#o'
ITC is t!e $eadi&g p$a)er i& do"estic cigarette "ar/et* T!e co"pa&) co""a&ds o+er
60; "ar/et s!are 'ot! i& +a$ue a&d +o$u"e ter"s* T!e co"pa&) !as so"e o# t!e $eadi&g
'ra&ds o# cigarettes $i/e ?i$$s% Go$d F$a/e etc i& its port#o$io* T!e cigarette 'usi&ess #or"s
t!e 'read K 'utter 'usi&ess o# t!e co"pa&)* It gets "ore t!a& :,; o# re+e&ues* T!e co"pa&)
!as s$o$) a&d steadi$) &urtured its 'ra&ds o+er t!e )ears to secure t!is positio&* ?it!
"argi&s as !ig! as 80; i& cigarette 'usi&ess t!e co"pa&) !as ge&erated !uge a"ou&t o# cas!
#ro" its operatio&s a&d is t!us #aci&g t!e pro'$e" o# p$e&t)* T!e pro'$e" is &ot Cust restricted
to ITC it is t!roug! #or ot!er to'acco co"pa&ies a$so* T!oug! ITC7s orga&iBatio& !as good
trac/ record i& "a&agi&g its cigarette 'usi&ess% its report card o& di+ersi#icatio& a&d success
o# t!ese u&re$ated 'usi&ess !as &ot 'ee& good*
Toda) Go$d F$a/e is #aci&g co"petitio& #ro" I&ter&atio&a$ 'ra&ds* As a& I&dia& 'ra&d
ITC is #orecasti&g t!e c!a&gi&g !a'its o# t!e co&su"er% so t!at t!e "a&u#acturi&g o# t!e
cigarettes cou$d 'e do&e as per t!e co&su"ers taste a&d speci#icatio&s* I& .00,1.006 Go$d
F$a/e !as &ot retai&ed t!e No*4 spot i& t!e sa$es o# F9CG products* But its sa$e "argi& !as
i&creased +er) "i&iature co"pare to .0021.008* As per .0061.00- Go$d F$a/e !as &ot $ost its
'ra&d i"age( t!e 'ra&d is sti$$ recog&iBed as popu$ar 'ra&d o# cigarettes* It !as 'ee& see& t!at
t!e sta&dard o# $i+i&g o# t!e peop$e is i&creasi&g da)1')1da)* T!e sta&dard o# rura$ co&su"er
is i&creasi&g* T!e rura$ areas peop$e pre#er to s"o/e 'idis% 'ut as per t!eir i&creasi&g
sta&dard t!e) pre#er s"o/i&g cigarettes* Due to t!is t!e sa$es grot! o# cigarettes i& I&dia is
'oosti&g up rapid$)*
3
GOLD FLAKE
"#$%#ograph&
888.goog%e.-o,
888.e'.8#;#pe6#a.org
888.#t-porta%.-o,

4
GOLD FLAKE
5