3. Godfrey Philips India
• Godfrey Philips India Limited, a flagship company of the Modi
Enterprises is one of India’s largest cigarette manufacturers.
• Some of the most popular cigarettes brands like Four Square, Red &
White, Cavanders are produced by GPI.
• GPI has also spread its footprint in the international markets. Many
countries from the Middle East, Africa, Asia, Europe, Australia and Latin
America have been added to its portfolio.
• Company Gross Revenue has been growing by 3% to Rs.4397 crores in
2016 - 17.
• GPI is one of the few companies that have recommended a dividend of
400% for the year ended 31st March 2017.
• GPI’s total turnover in 2016-17 was Rs.4,39,658 Lakhs
11. Premium Pricing
• Marlboro
• Full Flavor
• Clove
• Advances
• Fuse
Market Penetration
• Four Square Special
Market Skimming
• Marlboro
• Advance (Blue)
Economy Pricing
• Cavander Smooth Gold
Price
Godfrey Philips India – Pricing Strategy
High
Low
Quality
High
Low
12. Godfrey Philips India – Pricing Approach
Cost Based Approach
Strategy = Cost + Mark Up
Company (CNF)
Dealer
Retailer
End Consumer
Cost of Working = Rs.65 + 22% (Markup)
+ 64% Taxes
135
+ 1% Margin
136
150
14. Godfrey Philips India – Distribution Network
Product Selected : Four Square Famous
Maharashtra
81 Distributors
Mumbai
36 Distributors
Chembur
1 Distributor
Chembur’s Population : 10 Lakhs
Retailers : 972
Dealers : 72
15. Godfrey Philips India – Distribution Network
Reach
Depth
Width
Coverage
80 K
64
8
1044
GPI reaches 80,000 customers by covering 1044 retailers.
Each retailer stocks 64 units deep & 5 brands wide.