A talk on Cigarette with special reference to

Wills Cigarette in Indian Context

 THE INDUSTRY IN
SPECIFIC
 The cigarette industry is one of the oldest industries in India.
 It is highly labor intensive & provides livelihood to about 5
million people directly and indirectly.
 Cigarette is an item falling under the First Schedule to the
Industries (Development & Regulation) Act, 1951 and requires
an industrial license.
 India is the second largest producer of tobacco in the world.
 It exports a good amount of cigarette in various countries,
which generates a handsome amount of revenue for the
company.
 Major markets for cigarettes are UAE and USA, Romania,
Saudi Arabia and Iraq where the demand for generic low
cost cigarettes is growing.
 Cigarettes: Growth potential
 Cigarettes account for only 15% of tobacco consumed in India
unlike world pattern of 85% due to prolonged punitive taxation
 Cigarettes (15% of tobacco consumption) contribute nearly
85% of Revenue to the Exchequer from tobacco sector
 Of the 58% of adult Indian males who consume tobacco, barely
15% can afford cigarettes
 Biri : Cigarettes ratio = 10 : 1
 Annual per capita adult cigarette consumption in India is appx.
one tenth world average : 85
 Future growth depends on relative rates of growth of per capita
income and moderation in taxes
15 %
cigarettes
LIST OF MAJOR PLAYERS IN
INDIAN CIGRATTE
INDUSTRY
 ITC Limited  Godfrey Phillips (India)
 G.T.C. Industries Ltd. Ltd.
 V.S.T. Industries Ltd.
 GTC
8%

GPI 12%

ITC 72 %
History of W.D. & H.O. Wills
 1786- Founded as Wills, Watkins & Co. by Henry
Overton Wills and Watkins. Open first shop in Bristol.
 1789- Named Wills & Co. after Watkins pulled out.
 1826- Son of Mr. Wills took over the company .
 1830- Name of the Company Changed to W.D. & H.O.
Co.
 BRISTOL- First Brand(From 1871-1974)
 Castles/ Gold Flake: 1778
 Woodbine: 1788
 Embassy: 1914 again relaunched in 1962
 History of W.D. & H.O. Wills Continues….

 1901- Imperial Tobacco Company was formed by merging

W.D & H.O. Co. with 7 other British Tobacco Companies.
 1910-Impeial Tobacco Co. of India Formed.
 1970- India Tobacco Company Limited is formed ( To give
the company an Indian flavor )
 1974- The name Changed to I.T.C Limited
 2001- On 18th Sep, the name was changed to ITC Limited.
(As the company started diversifying its business and was
trying to come out of the shell as of a Tobacco Company
only…..
 ITC
ONE OF INDIA’S MOST VALUABLE CORPORATIONS
 One of India’s premier private limited groups with over 99 years.
 Large & established Distribution Networks.
 Annually turnover of the co. is RS 2888 Crore 
 It is one of the eight Indian companies to feature in Forbes A-list in 2004.
 It has more then 21,000 employees at more then 60 location across India with 4,86,000
shareholders.
 Ranks No. 4 among Indian listed Private Sector Companies by market cap. (@ April 09)
 Rated as- one of India’s Most Respected Companies (IMRB-Business world Survey 2006)
 ITC HISTORY OF THE COMPANY
 On 24th Aug. 1910 the company was incorporated as a private
company under the name, Imperial Tobacco Co. of India ltd.
 On 27th Oct. 1954 the company was converted into a public
limited company.
 The name of the company was changed from the Imperial
Tobacco co. of India ltd., to India Tobacco co. ltd. In May
1970.
 On Oct. 1972 company entered into Hotel business.
 On 2000 company has launched a project “ e- choupal” in
Bhopal to Web-enable farmers to make a beginning in
Agriculture e-trade.
 During the same year ITC has launched Wills sport, a full range
of internationally styled premium wear for Men & Women.
 MARKETING STRATEGY
 They have a DIFFERANTIAL MARKETING STRATEGY
type.
o Cigarette companies manipulate menthol levels to lure
young smokers
o Major brands and their advertising campaigns
 Always use their existing channels.
 Utilizing nominal resources related with the brand
 Brand Ambassador are selected according to the brands
and mostly are YOUTH ICONS
 They emphasize on going with the FLOW and making
their Followers .
FMCG- CIGARETTES
 CIGARETTE PRODUCTS
 Super Premium Products
 Insignia
 ITC Insignia. 97 mm.
Cost: Rs 130 for 20
 ‘‘Where quality touches infinity’’, ‘‘redefine perfection’’
 Advertised in Higher SES area

 555
ITC 555 premium filter: regular 84 mm.
Cost: Rs 100 for 20
Advertised in Higher SES
 India King
ITC India King. 84 mm.
Cost: Rs 100 for 20
“Rule your World”
Advertised in Higher SES area

 Wills Silk Cut(king size)

 ITC Wills Silk Cut Filter: 84 mm.
 Cost: Rs 88 for 20
 ‘‘A blend so right a filter so fine’’
 Advertised in Higher SES
 Premium Products
 Wills Classic/Mild/Regular/Menthol /
Ultra Mild
 ITC Wills Classic/Mild Filter: King
84 mm. Cost: Rs 94 for 20
 ‘‘Discover a passion’’
 Advertised in Higher SES

 Wills Navy Cut(Filter Tipped)

 ITC Wills Navy Cut Filter: ,74 mm.
 Cost: Rs 68 for 20
 ‘‘Made for each other’’
 Advertised in Higher SES
 Wills Navy Cut(Duotec)
ITC Wills Navy Cut Filter: ,84 mm.
Cost Rs 80 for 20
Advertised in Higher SES

 Navy Cut(Regular Size)

ITC Wills Navy Cut Filter: ,69 mm.
Cost Rs 48 for 20
Advertised in Higher and Lower SES.
 Gold Flake(Premium)
 ITC Gold Flake Premium: Regular 69 mm.
Cost: Rs 58 for 20
 ‘‘It’s Honeydew Smooth’’, Smooth, exquisite,
timeless. But then, all art is’’
 Advertised in Higher and lower SES

 Gold Flake King/Lights/Ultra Light Filter

 ITC Gold Flake King/Light: Regular 84 mm.
Cost: Rs 88 for 20
“Now in a Bevelled Edge pack”
 Advertised in Higher and lower SES
 benson & hedges(light & hard)
o B & H under ITC Regular Size 84mm.
o Cost : Rs 100 for 20
o Advertised in Higher and Lower SES

 Marlboro (light & hard)

o Phillip Morris under ITC Regular Size 84 mm.
o Cost : Rs 100 for 20
o Advertised in Higher and Lower SES
Bingo Products
Wills Flake
o ITC Wills Flake Filter Regular Size 69mm.
o Cost : Rs 58 for 20
o Advertised in Higher and Lower SES

 Bristol
o ITC Bristol Regular Size 69 mm.
o Cost : Rs 32 for 20
o ‘‘Rise to the taste’’
o Advertised in Higher and Lower SES
Cigarette Brands available in India:
 ITC Limited:

 ITC Insignia/555/India King/Wills Silk Cut/Wills

Classic/Wills Navy Cut/ITC Gold Flake/Benson &
Hedges/Malboro/Will Flake/Bristol

 Godfrey Philips India Ltd.

Four Square/Steller/Red & White/I-Gen/Jaisalmer

/North Pole/Cavanders/Tipper
Cigarette Brands available in India:

 Golden Tobacco Ltd.

Panama/Chancellor/Golden/Golden’s Gold Flake/Taj

Chap/Style mini Kings/Steel/June/Just Black/Lips

 Vazir Sultan Tobacco Industries Ltd.

Charms/Charminar
 SWOT Analysis
 Strength  Weakness
Biggest and the largest It still has to consolidate
player in the Indian its foot in the cigar
tobacco market with a market largely
market share of 80%. dominated by Godfrey
Its Gold Flake tobacco Philips.
brand is the largest
FMCG brand in India -
and this single brand
alone holds 70% of the
tobacco market.
 SWOT Analysis
 Opportunities  Threats
ITC is moving into new The obvious threat is from
and emerging markets like competition, both
developing countries of domestic and
Eastern Europe, Africa etc. international.
Health hazard
Increasing tax in
Cigarettes
Govt. Litigations
Smoking kills you………….