Presentation on NewlyLaunch Cigarette HERO BY: Abhishek Bansal MBA Gen.
ITC Limited public conglomerate company headquarteredin 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 ancestrywith Imperial Tobacco of the United Kingdom, but it is now fullyindependent, and was rechristened to Indian Tobacco Company in 1970 andthen to I.T.C. Limited in 1974The company is currently headed by Yogesh Chander Deveshwar. Itemploys over 26,000 people at more than 60 locations across India and islisted 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, SafetyMatches and other FMCG products.
ITCs aspiration to be an exemplar in sustainability practices is manifest in its status as the only company in the world of its size anddiversity to be carbon positive, water positive and solid waste recyclingpositive.ITCs businesses have created sustainable livelihoods for more than 5million people, a majority of whom represent the poorest in rural India.ITC is one of the countrys biggest foreign exchange earners (US $ 3.2billion in the last decade).As one of Indias most valuable and respected corporations, ITC is widelyperceived to be dedicatedly nation-oriented. The vision of the company is expressively captured in its corporatepositioning statement: "Enduring Value. For the Nation. For theShareholder."
The company was founded as Wills, Watkins & Co. by Henry Overton Willsand his partner Watkins, who opened a shop in Castle Street, Bristol in1786. After the retirement of his partner in 1789, it became Wills & Co.In 1826 his two sons, William Day Wills and Henry Overton Wills tookover the company now W.D. & H.O. Wills.In 1901 Sir William Henry Wills formed the Imperial TobaccoCompany from a merger of W.D. & H.O. Wills with seven other Britishtobacco companiesITC was incorporated on August 24, 1910 under the name ImperialTobacco Company of India Limited. As the Companys ownershipprogressively Indianised, the name of the Company was changed fromImperial Tobacco Company of India Limited to India TobaccoCompany Limited in 1970 and then to I.T.C. Limited in 1974.
• Sustain ITCs position as one of Indias most valuable corporations ITC through world class performance, creating growingVISION value for the Indian economy and the Company’s stakeholders • To enhance the wealth generating capability of the ITC enterprise in a globalizing environment, delivering superiorMISSION and sustainable stakeholder value
Cigarettes Foods Personal Care Lifestyle Retailing, Education & Stationery Matches Incense Sticks Paper & Agri Information Hotels Packaging Technology Business
Buoyed by a strong distribution network ITC is likely to retain itsmarket share in the cigarettes business; the ban on advertisements islikely to work in favor of ITC thanks to the recall factor.MANUFACTURING HUB UNIT DISTRIBUTORS WHOLESALER RETAILERS SMALL RETAILRS MALLS
Introduction About Cigarette Cigarette 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 inAmbala.•To suggest to expand customer base.Secondary objective•To study the review of the customer regarding the launch ofHERO•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.
Research Methodology Primary data - Sample size-80 No of questions- 9 Secondary data- Visited different websites.
Findings of the study Majority 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.
Suggestions ITC 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.
Conclusion ITC 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.