A Group report On Taste and preferences of

The tobacco industry

Submitted to:-
Submitted by:-

 1). CHOKSI HEMAL 3006

 2). DIYORA DIPAK S. 3007
 3). DOBARIYA TUSHAR A. 3008
 4). GAJJAR DHAVAL3011
 5). GAJJAR JAINISH 3012
 6). JANI TEJAS 3016
 7). JOSHI ARJUN U. 3017
 8). MANGUKIYA NIKUNJ M. 3022
 9). SHIYANI KAMLESH 3075
 10). SATASIYA DILIP A. 3187

 
Part -1 Research Methodology

 Research objective
1.primary objective:-
• Identify the consumer’s preferences and consumption
habit of tobacco.
2.secondary objective:-
• Analyze the situation of tobacco market
• Internal and external factors affecting
• Marketing mix strategy adopted by marketer
 Research design: -
1. Exploratory research
2. Descriptive research
3. Causal research
We have used Exploratory and descriptive research design.
 Data sources: -
1. Primary data
2. Secondary data
We have used primary and secondary data.
Research Approach: -
1. Observational research
2. Survey approach
3. Focused group approach
4. Experimental approach
We have used survey approach
 Contact Method
1. Personal interview
2. Telephonic interview
3. Mail questionnaire
4. Online interview
We have used personal interview
Research Instruments: -
1. Questionnaire
2. Qualitative measures
3. Mechanical devices
We have used Questionnaire
 Types of Questionnaire: -
1. Structured Questionnaire
2. Unstructured Questionnaire
We have used Structured Questionnaire
 Types of Question: -
1. Open ended
2. Close ended
We have used Dichotomous and multiple choice question
 Sampling Plan: -
1. Sample unit
2. Sample size
3. Sample Procedure

 Types of Sample Procedure

1. Probability
2. Non Probability

We have used Non Probability sampling procedure

by convenience sampling
Analysis of research: -
1. Screening
2. Coding
3. Decoding
4. Tabulation
I. General Tabulation
II. Cross Tabulation
5. Pie chart
Limitation: -
1. Time
2. Cost
3. Area
4. Professional approach
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 History of tobacco: -

 Prime place in Agriculture, industrial & export.

 India is second in the world.
 China & USA first & third respectively.
 Tobacco cultivation history of 8000 years.
 European introduce in 1492.
 Portuguese traders introduce tobacco in India in 1600.
 Harms of tobacco: -

1. oral cancer
2. Lung cancer

Forms of tobacco;-
1. flue-cured
2. fire-cured
3. Maryland air-cured
4. dark air-cured
5. cigar types: filler, binder, and wrapper
6. perique
Cigarettes
Gutkha
Bidi
Raw tobacco
 Types of tobacco: -

1. Bidi tobacco
2. FCV tobacco
3. Burley tobacco
4. Hookah tobacco
5. Chewing tobacco
6. Natu tobacco
7. Cigar tobacco
Tobacco farming in India: -
Tobacco farming in India: -

 
Andhra Pradesh, Gujarat, Karnataka, Maharashtra,
Bihar and Tamil Nadu are the major tobacco
producing states in India.

Around 65% of India’s production comes from

Andhra Pradesh (34%), Gujarat (22%) and
Karnataka (11%).

Tobacco is also grown in Orissa, Uttar Pradesh and

West Bengal, Andhra Pradesh, Gujarat, Karnataka
and Uttar Pradesh together account for over 90%
of the total tobacco production in the country.
Process of tobacco: -
1) The harvest:-
 The corojo harvest:-
 The criollo harvest:-

2) Air-drying:-
3) The first fermentation
4) De-ribbing and sorting
5)The second fermentation
6) Storage 
7) The preparation of the tobacco
8) The production of cigars
9) The escaparate
10) Color determination and attachment of cigar bands
Import And Export Scenario: -
India’s Tobacco exports Rs. 16,050 million towards the end of
current. As its growers are set to export more than 60% of their
produce in view of domestic tobacco’s rising demand in
countries like Russia, Vietnam, U.K., Germany and Belgium.

West Europe, by importing 30 % (43,213 tones) of Indian

tobacco, was the largest importer.

FCV tobacco is the major export variety, as it constitutes about

70% of the total unmanufactured tobacco exports. The FCV
tobacco is grown principally in Andhra Pradesh and Karnataka
are the two main FCV tobacco-growing regions.
Part - 4
Analysis of tobacco industry
INDIAN TOBACCO INDUSTRY
SWOT ANALISIS

STRENGTH

THREATS
SW WEAKNESES

OT
OPPORTUNITY
 STRENGTH:-
 Biggest and the largest player in the Indian
tobacco market with a market share of 80%.
 Its Gold Flake tobacco brand is the largest
FMCG brand in India - and this single brand
alone holds 70% of the tobacco market.

 WEAKNESS:-
 It still has to consolidate its foot in the cigar
market largely dominated by Godfrey Philips.
Opportunities
 ITC is moving into new and emerging
markets like developing countries of
Eastern Europe, Africa etc.
Threats
 The obvious threat is from competition,
both domestic and international.
 Health hazard
 Increasing tax in Cigarettes
PEST ANALYSIS
 POLITICAL FACTORS:-
 Govt. Policy affects the business in very deep.
 The low cost local brand can affect the leader
of tobacco industries.
 Government focus on no promotion of the
tobacco product directly on t.v or other media.
 There is a rule in india that a person is less than
18 can’t be buy a tobacco product from the
anywhere.
 The govt of India have restrict the
consumption of tobacco on the roads and
public place.
Economical factors:-
 In economical effect industry has to check out that there is a huge
part of tobacco industries in Indian economy in increment of GDP. 
 The tobacco industry’s can also help to give a chance to get a more
valued country in all over the world by exporting tobacco
products. 
 Now slowdown fear is now hovering on the sector because of the
government restriction on tobacco industries. 
 In India form medium to long term the fundamental are very
perishing. The continued economic or with increased in test in the
India market and improved international access. 
 By the rules and regulation of Indian government the consumption
is decreasing in India so, it’s not helpful term for industrial
overview.
Socio-cultural factor:-

 Socio cultural factor includes two parts-

 (a) Socio
 (b)Culture
Socio factor: -
 Population:-
 Male-female ratio: -
 Literacy level: -
 Income level: -
Technological factor: -

 Status of technology: -
 Advance technology
 Moderated technology
 Suitable infrastructure for technology
 For example: -
 In india the itc useing the duel refind tobacco techniques
that will help the person for reduce the chance of the
cancer or many others.
 Or the mant tobacco company tells that “accha khaiye
nischint rahiye “
 But the tobacco is always harmful to any one.
VALUE CHAIN OF TOBACCO
INDUSTRY:-
Primary activity :-

1. In bound logistic;
2. Operation;-
3. Out bound logistic:-
4. Marketing &sales;-
5. Services;-
Secondary activities:-

1. Firm’s infrastructure;-
2. Human resource
3.  Technology development;-
4. Procurement:-
FIVE FORCE ANALYSIS:-
1) Threat of new entrance
Govt. policy
Monopoly
Capital requirement
Product differentiation
e.o.s
2).Bargaining power of supliers
Important of product to supplier
Switching cost to supplier
Potential for forward integration
Ability for substituting product
3).Bargaining power of buyers
Volume of purchase
Imp. Of product to buyer
Switching cost to marketer
Extent of buyer information
4).Rivalry amongst existing firms
No. of firms
Growth of industry
Cost structure
Product standerdisation
Exit barries
5).Threat of substitute
Chepter-5
Analysis of marketing mix
 
1). PRODUCT:-

 LEVELS OF PRODUCT
• CORE BENEFIT
• BASIC PRODUCT
• EXPECTED PRODUCT
• AUGMENTED PRODUCT:-
• POTENTIAL PRODUCT:-
Product line mix

 1). Line stretching

Downward market stretch
Up market
Two way
PRICE:-
 List price:-
 discounts:-
 Credit term:-
 METHODS OF PRICING
 MARKUP PRICING
 TARGET RETURN PRICING:-
 PERCEIVED VALUE PRICING:-
 VALUE PRICING:-
 GOING RATE PRICING:-
 AUCTION PRICING:-
PROMOTION:- Sales
Promotion

Advertising

Surrogate
Advertising
PLACE:-
CHAPTER:-6
ANALYSIS OF STP OF TOBACCO
MARKETING SEGMENTATION
 1).GEOGRAPHICAL SEGMENTATION

 2) PSYCHOGRAPHIC SEGMENTATION

 3). DEMOGRAPHIC SEGMENTATION

 GENDER 
 INCOME
 4). BEHAVIOURAL SEGMENTATION
 Targeting

(1) Single Segment Concentration

2) Selective Specialization
 3) Product Specialization:-
 4) Market Specialization
 Positioning

 product differentiation

 image differentiation

 channel differentiation

 People differentiation
MONTHLY EXPENCES ON TOBACCO
WHERE PEOPLE CONSUME TOBACCO
REASON BEHIND TOBACCO
CONSUMPTION
WHICH FORM OF TOBACCO PERSON
CONSUMES
HOW FREQUNTLY CONSUMPTION OF CIGARETTE:-
OCCUPATION OF THE PEOPLE WHO
CONSUME TOBACCO
INCOME OF THE PEOPLE WHO
CONSUME THE TOBACCO
MONTHLY EXPENCES ON TOBACCO
HOW FREQUNTLY CONSUMPTION OF
CIGARETTE
HOW FREQUNTLY CONSUMPTION OF
GUTKHA
HOW FREQUNTLY CONSUMPTION OF
BIDI
HOW FREQUNTLY CONSUMPTION OF
CIGAR
HOW FREQUNTLY CONSUMPTION OF
RAW TOBACC0
HOW FREQUNTLY CONSUMPTION OF
TOBACCO
WHAT THE PEOPLE CONSIDER
WHEN BUY THE TOBACCO
People aware about tobacco
are injurious and reason for
cancer
What’s the reason behind the
people who consume the
tobacco
AGE GROUP OF THE PEOPLE WHO
CONSUME
CROSS TABULATION

Income and forms of tobacco

OCCUPATION AND FORMS OF
TOBACCO
FORMS OF TOBACCO AND AGE
AGE GROUP AND SPENDING
BEHIND TOBACCO CONSUMPTION
 AGE GROUP AND FREQUENTLY
CONSUMPTION OF CIGARETTE
AGE GROUP AND FREQUENTLY
CONSUMPTION OF GUTKHA
AGE GROUP AND FREQUENTLY
CONSUMPTION OF BIDI
AGE GROUP AND FREQUENTLY
CONSUMPTION OF CIGAR
AGE GROUP AND FREQUENTLY
CONSUMPTION OF RAW TOBACCO
OCCUPATION AND REASON FOR
TOBACCO