A Research Report On

Gold flake Cigarettes


Marketing Management
Submitted to: Prof.Bhavesh Vanparia Tolani Institute of Management Studies

Submitted by: Group Members:

Group No.1 Ruchita Mehta (09063) Mayur Patadia (09065) Mudra Patel (09077) Hardik Paun (09081) Krupa Shah (09095) Unnati Sharma (09099)

Our Main product is cigarette. Under that we have chosen GOLD FLAKE BRAND. Gold Flake is a widely-sold cigarette brand in India and Pakistan. It is sold in various varieties, including Gold Flake Kings (84 mm), Gold Flake Lights, Gold Flake Filter (filter tipped) and Gold Flake (plain). It is a wellpositioned brand in India. This brand is owned, manufactured and marketed by ITC limited the leading cigarette maker in India. Gold Flake is ITC's middle level brand in terms of price. The single largest brand in the country in value terms.

Gold flake is widely sold brand in India and is marketed in three varieties. Gold flake Filter King Size (84 mm) Gold flake kings is the largest selling brand of cigarettes in India in above 80 mm category, but lags behind wills navy cut across categories. It has a mild flavor. A pack of 10 costs about Rs. 48. Gold flake Filter King Size Lights (84 mm) Gold flake lights are milder than Gold flake and contains comparatively less nicotine. Gold flake Filter (small) Gold flake Filter (small) has the strongest flavor amongst the three brands. It also contains considerably larger amounts of tar and nicotine. A pack of 10 costs 45 Rs. Gold flake Plain (filter less) the very original Gold flake is simply known as Gold Plain or Plain in southern markets. It is the strongest of all. Gold Flake Cool Mist was a brand launched by the ITC Co. Which was encouraged much in the market and has later gone out of production? It was a milder cigarette with a mild mint flavor

Gold Flake Kings. Hignett's Golden Flaked Honey Dew. CIGARETTE INDUSTRY  The cigarette industry is one of the oldest industries in India we can say almost 100 years old.  India's tobacco industry is one of the largest in the world. The tobacco industry in India is quite complex when compared to the nature of the industry in many other countries. Brands other than wills gold flake are Bacons' Gold Flake. It is an important agro-based industry.  The particular features that distinguish the Indian industry are Consumer market in organized sector. India's production of leaf is only exceeded only by China and the USA. with India having the second largest area planted to tobacco leaf after China. regular size) Rs.  It is highly labor intensive and provides livelihood to about thirty million people directly and indirectly.25.  Here are some details about the product and cigarette industry.  Furthermore. Salmon and Gulckstein's Gold Flake.44. The word "gold flake" refers to cigarettes made using 'bright rich golden tobacco'. Consumer market in unorganized sector and other users of tobacco in organized as well as unorganized sectors. filter. Packs of 20 can cost up to Rs.88.Origin of the GOLD FLAKE Gold flake was neither a brand nor a process of manufacturing cigarettes. One pack of 10 cigarettes cost accordingly: Gold Flake (plain. . Lights MRP is Rs.

SOME DETAIL ABOUT CIGARETTE Top ten cigarette brands 1) Marlboro 2) Camel 3) Lucky Strike 4) New Port. 5) Parliament. 6) Pall Mall 7) Winston 8) Prime Time 9) Kool 10) West .

Scissors. These factories are known for their high levels of quality.CIGARETTE INDUSTRY IN INDIA ITC is the market leader in cigarettes in India. ITC has a leadership position in every segment of the market. Navy Cut. ITC has become a key player in the GCC markets through growing volumes of its brands. ITC offers highquality. marketing and distribution. Gold Flake. Munger. This strategic focus on the consumer has paid ITC handsome dividends. Saharanpur and Kolkata. Silk Cut. . value-priced cigarettes and Roll-your-own solutions. All initiatives are therefore worked upon with the intent to fortify market standing in the long term. In the extremely competitive US market. Capstan. Classic. ITC's cigarettes are produced in its state-of-the-art factories at Bangalore. manufacturing technology. It's highly popular portfolio of brands includes           Insignia. innovation. contemporary technology and work environment. India Kings. In West Asia. Berkeley. ITC's pursuit of international competitiveness is reflected in its initiatives in the overseas markets. This in turns aids in designing products which are contemporary and relevant to the changing attitudes and evolving socio economic profile of the country. The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design. quality. Bristol and Flake.

Then came Gracious People Campaigns – “for the gracious people” as the headline followed by. India was a country of the genteel rich. marketing and distribution. A category smoker. “A touch of Gold”. elegant.” Having fun wish you were there” “Worth its length in gold”. innovation. manufacturing technology. Advertising emphasized this comparison to gold. In the seventies. He was perceived to be unapproachable and sociable only in his high class. In the seventies. quality. and responsible. The consumer was bounded in the Indian ethos and roots. It targeted adult. The initial ads said. with the headline "A tribute to the gracious people". .Company Orientation towards Market Place Product Concept ITC launched the brand Gold Flake in India in the seventies. Gold Flake had been traditionally positioned as a premium cigarette. ITC launched the brand Gold Flake in India in the seventies. The statement – “For the gracious people” – summed the core of the brand. The source of the positioning of Gold Flake can be traced back to its early days. The lifestyle of the upper class was what the customers aspired for. The lifestyle of the upper class was what the customers aspired for. The brand was compared with Gold for the quality and purity of experience. and had a sense of purpose. India was a country of the genteel rich. It was meant to be a cigarette for the elite and the rich – the gracious people of India. “Wherever you go they are peanut butter”. People aspired to be honorable and genteel. male. People aspired to be honorable and genteel. The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design. The source of the positioning of Gold Flake can be traced back to its early days. It did not differentiate itself specifically from other brands. The gracious people as defined by the brand were the premium class they were successful.

personnel and image involved. time. functional and psychological benefits customers expect from given market offering because of the products. customer’s expect to incur evaluating. SATISFATCTION & LOYALTY. If further clarify then TOTAL CUSTOMER BENEFIT is perceived monetary value of the bundle of economic. TOTAL CUSTOMER COST is the perceived bundle of cost. . services. obtaining.DEVELOPING MARKETING STRATEGIES & PLAN AND CREATING CUSTOMER VALUE.  CUSTOMER PERCIEVED VALUE: (CPV) CPV is the difference between the customer’s evaluation of all the benefits and all the cost of an offering and the perceived alternatives. energy and psychological costs. using and disposing of the given market offering. including monetary.

CUSTOMER PERCEIVED VALUE Total Customer Benefit Product Benefit Services Benefit Total Customer Cost Monetary Cost Time Cost Personnel Benefit Energy cost Image Benefit Psychological Cost .

UK.ITC is incorporated on 1910 under the name of „Imperial Tobacco Company of India Ltd‟ so it is a more than 100 year old company which is producing this gold flake cigar so they have created a well known image toward customer and can get trust of customer for this brand. They are also providing the cigarette in a stylish pack so youngsters are attracted by it. Image benefit: Gold Flake is ITC’s brand and ITC is India’s biggest and best known private sector company. Businessman. . Here gold Flake Company has also created a different value chain to fulfill customer satisfaction and more marketing of their product.etc Product Benefit: Gold flake is designed differently with a great filter without a compromise in taste and flavor. They have also achieved so many awards like Occupational Health and Safety Gold Award from the ROSPA. Ex. Personal Benefit: According to customer interest they are giving different type of flavor. So the smart competitor must design and offer for well design target markets. use & disposal of product of that product if we took the case of GOLD FLAKE person do smoke so its time consuming though person is doing it just for sake of entertain or time pass but it costs. politicians are smoking this cigar for style.Value delivery process: We all know that now a day traditional view of business process will not work in economies where people face abundant choices. if customer want mild and smooth flavor they will prefer Gold Flake without worry about price Time Cost Time cost means how much time customer is spending in choice.

So its also one type of energy cost. Psychological Cost: Smoking is not good for health so directly or indirectly it costs to person’s health.Energy Cost: When person do smoke its wastage of energy when person took out fog. .

prices of competitors. So for that he must have1) The order-to-payment cycle: Many seller of cigarette like small pan-shops normally purchases cigarette packets on wholesale basis. key-chains etc. Generally as per the order to pay concept if the payment cycle is not properly maintained then a seller or a marketer need to take care of it and make it on time so that the order to payment cycle and move smoothly. . Here. Also purchasers of such wholesale products get some benefit on bulk purchase. So. sales. competitor’s strategies and need extensive information about how consumption pattern of customers changing across.GATHERING INFORMATION AND SCANNING THE ENVIRONMENT Marketers always have to observe external environmental changes. our product is GOLD FLAKE CIGARETTE and from the cigarette marketer point of view he must have to keep himself up to date with all below information: 1) 2) 3) 4) Which are the decisions he has to make regular basis? Which information does he need on regular basis? Which kind of special studies he has to do regularly or periodically? What are the magazines and newspapers he has to see on daily/weekly/monthly basis? 5) What data analysis program he want? If one wants answer of all above questions then one must have rich source of internal records and marketing intelligence. Internal Records and Marketing Intelligence For taking any kind of information about internal things then a marketer must require data regarding orders. wall-clock. like jar. receivables and payables and so on. inventory levels. Sometimes they get some quantity free of cost and sometimes the get other things free. the payment is on credit basis and the payment will be made after decided time by both parties which may be of 15 days and may be of 1 month also.

Like for an example of available stock. The stressful working hour will increase and it will directly lead people to search for stress-relief thing which will increase the purchase of cigarette. Data mining: the data which is collected and stored in sales information system is here utilized and implemented. . We can also say that the population age mix also affecting the demand of cigarette because children below age of 14 generally are not smokers.if he had 240 cartoons of Gold Flake cigarette then he has to categories that data accordingly like he had 140 cartoons of Gold Flake and 100 of Bristol. they also smoke like them. the more the number of people the more the smokers and thus the demand of the cigarette will increase. As we all are aware about western culture.2) Sales Information System: Whenever any retailer purchases and cigarette cartoons/packets from any retail pan-shop then the marketer will be able to have information regarding how much total number of sales is happened and according to this information he get idea about how much to produce and how much inventory should be maintained. So. The age group between 15 and above we can say our target customer. 3) Data base. 3) Social-cultural Environment: The social-cultural environment largely includes people will different religion and of different culture. Analyzing the Micro-environment 1) The Demographic Environment: The demographic environment includes worldwide population and population age mix. as the country get its growth the demand of cigarette will increase as the stress level will increase. Population is directly affecting factor on the demand of cigarette. the people living over there smoke as a status symbol. Data warehousing. So. In many movies also filmstars influences people at large to smoke like them. 2) Economic Environment: As the per-capita income of citizen increase their living standard will go up and relatively their lifestyle changes. People in India now a day blindly follows culture of western nation and try to be like them.

So. which harm their lungs badly. 5) Political-Legal environment: As we all know smoking in public area in Gujarat is not legally allowed. which have nicotine in it. In many places cigarette is totally banned as it is injuries to health. .4) Natural Environment: As cigarette is made of tobacco leaves. governments can take such steps to stop smoker smoking in public. Many other people and animals get affected by indirect smoke. when a person smokes he will indirectly leaves that smoke in environment and so environment get polluted.

enough income and access to purchase of cigarette also cannot have it because government has ban it to smoke it in public. So. However. It can be said that for different department there is different purpose of forecasting. income. purchasing department use it to know the right amount of supplies. consumer interest is not enough to define a market unless they also have sufficient income and access to the product. as smoking cigarette in certain public in India is not allowed. AVAILABLE MARKET:The available market is the set of consumer who have interest. all time it may not happen that only identification of interest is enough to introduce new product in the market a marketer have to consider all other aspects also. So. As our product is cigarette. One can purchase it from small pan-shops and from the big casinos also. Finance department use sales forecast to raise the funds. manufacturing department use it to know the capacity and output level. TARGET MARKET:The target market is the part of the qualified available market the company decides to pursue. the company or government may restrict sales to certain groups. so generally all people are smoking and there is no specific target market. MEASUREMENT OF MARKET DEMAND POTENTIAL MARKET:The potential market is the set of consumers who profess a sufficient level of interest market offer. if a marketer introduce new cigarette brand with chocolate flavor considering that chocolate is the favorite flavor of girls. For instance. . the customers who have interest. chocolate but sometimes it may happen that some of them may not like the chocolate flavor because the marketer is not going to make survey of all girls in the world.FORECASTING AND DEMAND MEASUREMENT Main reason for undertaking research is to identify market opportunities. For some market offers. and access to a particular offer.

the product is Gold-flake cigarette so our penetrated market is not local villagers because they prefer bidis rather than cigarette for satisfying their smoking need. Here.PANETRATED MARKET:The penetrated market is the set of consumers who are buying the company’s product. 1) SPACE LEVEL: Space level demand of product decides where to set up the product. Demand can be measured using different criteria. Our penetrated market is people of urban and semi-urban area who like to smoke cigarette not bidis because they don’t have filter in it. . United States. So we can estimate demand of GOLD FLAKES world wide. or customer wise. GOLDFLAKES will be world wide because in consumer market in each and every territory in any region people do smoking. It means whether product needs to be set up world wide. DEMAND MEASUREMENT Companies can prepare as many as 6*5*3 = 90 types of demand estimates. region wise. territory wise.

Only companies of particular products includes here. If we take example of GOLD FLAKES then it need long run measurement of demand because of raw material and labor intensive work. 3) TIME LEVEL: This includes time period for which marketer need to measure the demand like SHORT RUN. Particular item from product category. Only that product. . LONG RUN.2) PRODUCT LEVEL: It includes following category All sales: Industry sales: Company sales: Product line: Product form: Product item: Each and every aspect of sales. GOLD FLAKE includes product form because CIGARETTE is one particular category of product. MEDIUM RUN. This particular product will not followed and used by each and every one so we can estimate product level demand of GOLD FLAKE by product form. Category of product. Main objective of measurement of market demand is that if company is not satisfied with its current sales then it can take a number of actions. For industry of particular product.

As in western culture its trend to smoke means children even at the age of 13 or 14 they will smoke.  Roles & status. Social factors also influence in our product as in Reference group there is membership group where by its directly influence on behavior of customer suppose friend of mine is smoking then it will also influence me to just try that how is the taste of cigarette.   In case of GOLD FLAKES all 3 factors influence buyer to purchase the product. . suppose any worker observe his/her boss smoking while they are tensed so it will influence that individual to repeat that same step.  Occupation.  Social classes. To further clarify it can be said that before launching any product marketer need to know behavior of consumer. Primary group also influence. How consumer buy. Occupation also influence very much because there are many occupation where by life becomes useful and person start smoking to remove that stress. Roles and status: Many a times it happen that people take help of CIGARETTES to show their status so it affects behavior of customer.FACTORS AFFECTING BUYING BEHAVIOUR OF PRODUCT Buying behavior means to analyze the behavior of consumer towards particular product. Personal Factors  Age and stage in life cycle. In case of Personal factors many a times person do smoking just because he thinks that it suits his personality. use and dispose the product. Dissociative factors also plays an important part such as if some group of people are chain smoker so no body will like to join that group means every body will keep distance from that group. Social Factors  Reference groups. Buying behavior influenced by 3 ways:  Cultural Factors  Sub – cultures.  Personality and self concept.

try smoking once or told by someone who is already smoking.BUYING BEHAVIOUR PROCESS The buying behavior process: The five-stage model 1) Problem recognition: Following are reasons that why individual do smoke?      To reduce stress To show status To follow trend Because of hobby For entertainment 2) Information search: It includes from where individual gets information about cigarettes and smoking. . like some friends. Personal:  Family (Heredity)  Friends  Neighbor Commercial:  Advertising  Display Public:  Media (Referring books. newspapers) Experience:  From the experience of some friends.

3) Evaluation of Alternatives: Total Set Navy cut Gold Flake Bristol More Cool Marlboro Four square Awareness Set Consideration Set Gold Flake Four square Navy cut Choice Set Gold Flake Four square Decision Gold Flake Gold Flake Classic Marlboro Four square Navy cut Brand/Criteria Gold Flake Navy Cut Four Square Filter Brand 9 8 8 8 7 6 Price 6 7 8 Flavor 10 8 6 Total 33 30 28 91 According to our survey we have given weight to each brand according to criteria its 40% to filter.20) = 28/91 = 7 .40) + 7*(.10) + 6*(.30) + 8*(. 10% Price and 20% to flavor. Gold Flake = 9*(.20) = 30/91 = 7.30) + 7*(.20) = 33/91 = 8.7 Four Square = 8*(.10) + 10 *(.30) + 6*(.3 Highest Marks Navy Cut = 8*(.40) + 6*(.40) +8*(. 30% to Brand.10) + 8* (.

For ex: POST PURCHASE ACTION: If consumer is not satisfied then they may return the product. also give result according to problem. So decision is GOLD FLAKE. POST PURCHASE USE AND DISPOSAL: How buyer use and dispose that product.3 marks. If disposal is not appropriate and affecting the environment then marketer needs to work upon that. 5) Post Purchase Behavior POST PURCHASE SATISFACTION Post purchase behavior is behavior of person after use of the product. Person may if person is using GOLD FLAKE to reduce the stress and after using the product person will give result that is his stress reduced or not? If person is not satisfied then marketer need to take post purchase action. In case of GOLD FLAKE person may get addicted toward that product. Consumer is using GOLD FLAKE and packing of product is in such a way that consumer is not able to dispose it off easily so marketer needs to come out with different packaging. . For Ex: Consumer is using GOLD FLAKE and suddenly consumer realize that quality is different then regularity then first he will complain to that shop from where he used to buy and if he still not satisfied then he may wrote letter to COMPANY. In evaluation of alternative also decision its GOLD FLAKE. EX. Consumer may also take legal action and can also complain other groups.4) Purchase decision According to evaluation we will choose GOLD FLAKE as it contains 8.

If we think from opposite side then person for whom CIGARETTE is not important then person can easily allocates that cost into other products which are very necessary for that time. Mental accounting is nothing but the way consumer code. Person compulsorily needs to put aside some part of finance for CIGARETTE. EX: Person who is addicted to CIGARETTE will need to calculate budget for CIGARETTE every month.MENTAL ACCOUNTING While handling the money or finance customers use concept to MENTAL ACCOUNTING. Let us understand the concept with the use of example of GOLD FLAKE. THE END . categorize and evaluate financial outcomes of choices. Person will do as follows:Whether to invest or not? If yes Where to invest? Which product should give priority first? Is that product worth to invest in? To get the answer of above questions person do MENTAL ACCOUNTING. Formal definition of MENTAL ACCOUNTING is “the tendency to categorize FUNDS or items of value even though there is no logical basis for the categorization” In laymen’s language it means that calculation of investment of funds. Consumer may save that amount or may invest in BANK or in other securities.