STATUTORY WARNING

SMOKING IS INJURIOUS TO HEALTH.

This presentation is in no way intended to promote smoking or use of tobacco in any form . This is the outcome of an attempt made by our group to analyse various marketing concepts as part of the curriculum.
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unmatched excellence

ITC WILLS

Click to edit Master subtitle style

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By Group no. 6M Dhananjay (C021) Shweta Dhotar (C022)

INDIAN TOBACCO INDUSTRY

Cigarettes contribute 85% percent of

revenue to the exchequer from the tobacco sector

Male 1/20/13

Dominated Market

MARKET SHARE

Cavanders, etc. VST Charms, Charminar, Gold 1/20/13

ITC WILLS range, 555, India Kings GPI Four Square, Red & White,

ITC
Imperial Tobacco Company 24th

August 1910
ITC WILLS W.D. & H.O. WILLS Diverse Product Portfolio
Cigarettes Hotels Paperboards & Specialty Papers
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Agricultural Industry

SEGMENTATION
Geographic
Rural Urban

Demographic
Age Gender Occupation

Psychographic
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BRAND AND TARGET SEGMENTS

Super Premium Products
Insignia

ITC Insignia. Cost: Rs100 for 20 Where quality touches infinity, redefine perfection Advertised in Higher SES area

Stellar

ITC Stellar Slims Cost: Rs38 for 10

1/20/13Low nicotine, High Satisfaction

Premium Products

BRAND AND TARGET SEGMENTS

ITC Wills Classic/Mild Filter: King 7074 mm. Cost: Rs60 for 20 Discover a passion Advertised in Higher SES

Wills Classic/Mild/Regular

Wills Navy Cut

ITC Wills Navy Cut Filter: ,70 mm

1/20/13Cost: Rs46 for 20

Premium Products Contd.

Wills Silk Cut

BRAND AND TARGET SEGMENTS

ITC Wills Silk Cut Filter Cost: Rs46 for 20 A blend so right a filter so fine Advertised in Higher SES

Gold Flake/Lights Filter

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ITC Gold Flake/Lights Filter: Regular 68 mm. Cost:Rs24 for 20

POSITIONING
In 70s they have positioned themselves by

saying:-

For the gracious people A touch of Gold "A tribute to the gracious people

It is still differentiating itself on the purity and

quality of its experience.

The brand stands for a celebratory attitude.

Celebrate the feeling is the new message
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MARKETING MIX
P PRODUCT

Wills Cigarettes - characterized with high

brand loyalty and consumer preference Limited

Belongs to the rich cigarette family of ITC Additions to tobacco to make a cigarette

are filter rod, filter paper, cigarette paper to distinguish between them.

Each product is colored in a different way Henkel adhesives used in bulk, which

lowers 1/20/13

the cost of production due to price

P PRICE

Focus on various segments of people,

based on their purchasing power and psychology.

Main objective is to be a market leader

across all segments of people

Prices for 10 cigarettes range anywhere

from 1/20/13

Rs. 40 (premium segment) to Rs. 70

P PLACE

Signifies the place and the ease of

availability of cigarettes to the customer.

Excellent distribution system, coupled with

an unparalleled reach, makes it a potent opposition in the market.

Excellent study of the demand pattern

carried 1/20/13

out, and the right product is put at

P PROMOTION
Point of sale Material (POSM) used vastly,

since direct cigarette advertisement on TV, banned since 2003

Use of cigarette brands as the brand name of

lifestyle retail stores (eg: Wills and John Players)

Indirect advertising, such as sponsorship of

sports and concerts

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MARKETING STRATEGIES Click to AND ADVERTISING edit Master subtitle style CAMPAIGN

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CHALLENGES
Ban on advertising tobacco products in India Disassociation from the WILLS brand name

Foreign players have advantage as they are free to sponsor

highly televised sports events like Formula One Eg. Marlboro sponsors Ferrari
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Had to withdraw sponsorship from Indian Cricket Team in

SURROGATE ADVERTISING METHODS

Direct advertising of display-boards at point-

of-sale advertising.
Launching Mobile Smoking Lounge(MSL)- the

introduction of this air-conditioned smoking lounge which has a long queue of young smokers waiting to get inside to smoke

Innovative Collaboration- ITC and Vyakti vikas

Kendra, a NPO by Shri Ravishankar of Art of Living

Releasing misleading new letters
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SLIM CIGARETTES TARGETING WOMEN Click icon to add p Small female smoking icture
population of 3% is potential growth market (Again, the potential cigarette market is 10% of the total population)

The brand is marketed as

having lower levels of nicotine with the satisfaction of a regular cigarette.

1/20/13 ITC describes the brand

SWOT ANALYSIS
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STRENGTHS
Largest player in Indian tobacco market with

market share of 80% low (0.4 to 0.6)

Smoking is addictive hence demand elasticity is Existence for more than a hundred years Brand patented as Wills Targeting various consumers at different price

points having varying needs and preferences

Marketed by Indias biggest tobacco company and
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one of Indias leading FMCG companies, ITC Limited

WEAKNESSES
Inability to hold large advertisement campaign

after Ban on cigarette advertisement in INDIA.

Not able create further brand Image of the

product
Many products of same price segment in the

same market.
Difficult to maintain focus on promotion and 1/20/13

OPPORTUNITIES
Manufacture of low cost cigarette to Entry into cigar market largely

capture the market of bidi consumers dominated by Godfrey Philips

By 2020, 70% of population expected

to be in the range of 15 59 which is potential target consumer

Introduction of smoking by tobacco

industry among Indian women by associating it with increasing social 1/20/13

THREATS
Cigarettes - highly susceptible to the regulations

of the Governments (logo smoking kills to cover 80% of pack area)

Increasing taxation causes prices to go up Domestic and international competition. Internal

competition

from

products

of

own

company
Common substitutes to cigarettes like gutka, pan

masala etc. hazards

Changing habits of consumer due to health

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COMPETITOR ANALYSIS
q The cigarette market in India has 3 major

competitors

q Godfrey Phillips India (GPI), a Philip Morris

affiliate,13%of market share

q Vazir Sultan Tobacco (VST), a BAT affiliate, 13%

of the total market share market share.

q Golden Tobacco Company (GTC) with 8% of the

q Domestic competitors
q Kanhayya tobacco
1/20/13 q MR

tobacco

PORTERS MODEL
Threat of new entrants : Low because of the

entry barriers

Intensity of competitive rivalry : High Buyers bargaining power : Oligopoly market

situation

Suppliers bargaining power : Large number of

suppliers for basic materials(Tobacco,paper etc.)

Threat of substitutes : High
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ENTRY BARRIERS
Requirement of industrial license Very restricted advertising Many well established major players with a

range of products rate

Heavy taxation on products reduce growth

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SUBSTITUTES
Wills has threat of substitutes within ITC as

well as outside ITC within ITC itself

ITC Goldflake and Scissors are close subtitutes GPIs Cavanders, GTCs Golden brand and

VSTs Charminar are some substitutes outside ITC

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VERTICAL INTEGRATION AND DEGREE OF GLOBALIZATION: Most of the Forward vertical integration
companies have their own distribution networks globally established
Degree of globalization : ITC,GPI and GTC are V.S.T. Industries Ltd also has partnered with

global firms British American Tobacco group of UK

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MARLBORO
Largest selling brand of cigarettes in the

world

Made by Philip Morris US within USA Made by Philip Morris International outside

USA
Marlboro came into Indian market in 2003 It is presently manufactured and marketed by

GPI(Philip Morris : Largest Shareholder) in India

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MARLBORO
Marlboro came into US market having only

males as Target market target market

It used a cowboy as visual to indicate its Though it is launched since 2003,it has still

not been able to take on ITC in market share dominated by ITC can be a big reason for this

Very late entry into the market which is well

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FUTURE OF CIGARETTES
An average of 2,800 people die every day in

India with tobacco-related diseases.

Cancer of lungs, lips, tongue, oral cavity,

throat and larynx, uterus and urinary bladder are some of the common tobacco-related diseases.
Adding some 184 million people consume

cigarettes, beedis and gutka every day.

ITC researchers are continuously doing

research on ayurvedic cigarette which would 1/20/13 be harmless.

THANK YOU

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COMPETITIVE RIVALRY
GPI launched first slim cigarette targeting

women in the Indian market Stellar Slims in 2007 cigarette targeting women targeting women

In 2008,ITC launched Wills Classic Verve slim Golden Tobacco launched June slim cigarette

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