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 DHAVAL 3011 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 objective1.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 research3. Causal research We have used Exploratory and descriptive

research design. Data sources: -1. Primary data2. Secondary data We have used primary and secondary data.

Research Approach: -1. Observational research2. Survey approach3. Focused group approach4. Experimental approachWe have used survey approachContact Method1. Personal interview2. Telephonic interview3. Mail questionnaire4. Online interviewWe have used personal interview

Research Instruments: -1. Questionnaire2. Qualitative measures3. Mechanical devices We have used Questionnaire Types of Questionnaire: -1. Structured Questionnaire2. 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 unit2. Sample size3. Sample Procedure

Types of Sample Procedure1. Probability2. Non Probability We have used Non Probability sampling

procedure by convenience sampling

Analysis of research: -1. Screening 2. Coding3. Decoding 4. Tabulation

I. General TabulationII. Cross Tabulation

5. Pie chartLimitation: -1. Time 2. Cost3. Area4. Professional approach

Part-3Introduction Of Tobacco

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 cancer2. Lung cancer

Forms of tobacco;-1. flue-cured2. fire-cured3. Maryland air-cured 4. dark air-cured5. cigar types: filler, binder, and wrapper6. perique Cigarettes Gutkha Bidi Raw tobacco

Types of tobacco: -

1. Bidi tobacco2. FCV tobacco3. Burley tobacco4. Hookah tobacco5. Chewing tobacco6. Natu tobacco7. 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 fermentation4) De-ribbing and sorting5)The second fermentation6) Storage 7) The preparation of the tobacco8) The production of cigars9) The escaparate10) 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

SWOT

STRENGTH

WEAKNESES

OPPORTUNITY

THREATS

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)CultureSocio 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 entranceGovt. policyMonopolyCapital requirement Product differentiatione.o.s2).Bargaining power of supliersImportant of product to supplierSwitching cost to supplierPotential for forward integrationAbility for substituting product

3).Bargaining power of buyersVolume of purchaseImp. Of product to buyerSwitching cost to marketerExtent of buyer information4).Rivalry amongst existing

firmsNo. of firms Growth of industryCost structure Product standerdisationExit barries5).Threat of substitute

Chepter-5Analysis of marketing mix 

1). PRODUCT:-

LEVELS OF PRODUCT• CORE BENEFIT• BASIC PRODUCT • EXPECTED PRODUCT• AUGMENTED PRODUCT:-• POTENTIAL PRODUCT:-

Product line mix

1). Line stretchingDownward market stretchUp 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:-

Surrogate Advertising

Sales Promotion

Advertising

PLACE:-

CHAPTER:-6ANALYSIS 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