Presentation on Newly

Launch CigaretteHERO

BY: Abhishek Bansal

MBA Gen.

ABOUT THE COMPANYITC Limited public conglomerate company headquartered in Kolkata, India.

Its turnover is $7 billion and a market capitalization of over $33 Billion.

It started off as the Imperial Tobacco Company, and shares ancestry with Imperial Tobacco  of the United Kingdom, but it is now fully independent, and was rechristened to Indian Tobacco Company in 1970 and then to I.T.C. Limited in 1974

The company is currently headed by Yogesh Chander Deveshwar. It employs over 26,000 people at more than 60 locations across India and is listed on Forbes 2000.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

ITC's aspiration to be an exemplar in sustainability practices is manifest in its status as the only company in the world of its size and diversity to be 'carbon positive', 'water positive' and 'solid waste recycling positive.

ITC's businesses have created sustainable livelihoods for more than 5 million people, a majority of whom represent the poorest in rural India.

ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade).

As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. 

The vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the Nation. For the Shareholder."

The company was founded as Wills, Watkins & Co. by Henry Overton Wills and his partner Watkins, who opened a shop in Castle Street, Bristol in 1786. After the retirement of his partner in 1789, it became Wills & Co.

In 1826 his two sons, William Day Wills and Henry Overton Wills took over the company now W.D. & H.O. Wills.

In 1901 Sir William Henry Wills formed the Imperial Tobacco Company from a merger of W.D. & H.O. Wills with seven other British tobacco companies

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974.

HISTORY OF THE COMPANY

ITC VISION

• Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Company’sstakeholders

ITC MISSIO

N

• To enhance the wealth generating  capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value

,

Paper & PackagingHotels Agri

Business

Information Technology

Cigarettes Personal CareFoods Lifestyle Retailing

Education & Stationery Matches Incense Sticks

FMCG

ITC Distribution

MANUFACTURING UNIT

HUBDISTRIBUTORS

WHOLESALER

RETAILERS

MALLSSMALL RETAILRS

Buoyed by a strong distribution network ITC is likely to retain its market share in the cigarettes business; the ban on advertisements is likely to work in favor of ITC thanks to the recall factor.

Introduction About CigaretteCigarette is a product which is harmful for

health, in spite of this feeble; its sales are increasing globally.

India is the second largest producer of tobacco in the world after China.

Today the cigarette industry of India is booming in the market.

Need For The Study ITC Ltd recently launched the new brand Hero in the

market. After this launched there is a sudden need to study the response from customer, retailer, and vendor. Also the response of the cigarette in the market.

To check whether the product is selling in the competition market by its own name or by the pressure of other competitors.

Is the new product launch gives any competition to competitors with this price segment.

Is this cigarette is fulfilling the expectation of the customers or not.

Primary Objective•To study the test market regarding the launch of HERO Pack in Ambala.•To suggest to expand customer base.

Secondary objective•To study the review of the customer regarding the launch of HERO•To study the impact of sales of HERO in retail.•To know about the performance of HERO.•To study the feedback of different Customer.•To know about different schemes.

OBJECTIVE OF THE STUDY

Research MethodologyPrimary data - Sample size-80 No of questions- 9Secondary data- Visited different

websites.

Classification of cigarettes

Various brands Size, Sticks & Price

Competitors

Findings of the studyMajority of respondents are aware about the ITC- HERO but

they haven’t taste it.People don’t want to taste this cigarette as they are

already loyal towards their previous brand. ITC is fallowing good promotional scheme for retailers to

sell the product but consumer is not purchase this cigarette.

People are rigid towards their previous brands.People who are using upper segment of the cigarette don’t

want to switch to lower segment.Customer is not demanding this cigarette; it sells just

because of the pressure of vendor.People are not eager to try new brands.

SuggestionsITC must use wait and watch technique

such that preferred customer may switch to it.

They must issue cigarette with low MRP such as GPI has done to carter lower segment.

ITC need to provide some benefits to customer also such that they switch to use this cigarette.

ConclusionITC Ltd Hero doesn’t put any great impact on the sales

of the retailer and it doesn’t attract new customers from the market.

As in the market there is already cigarettes of ITC Limited of this price Segment as Flake excel is already selling in the market at the price tag of Rs. 28 for 10 sticks. Also there is Capstun which is also there for the same price segment and they target the same categories.

This brand was launched to target the customer of lower segment who are consuming GPI brand. As GPI recently launch Crown which is priced at Rs. 24 for 10 sticks.

Usually less health conscious people stick to low price sticks. People are not ready to experiment until and unless pushed by the retailers or tempted with a scheme.

Taste and price are the two topmost criterions.