218571848 50611339-tobacco-case-study

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PROJECT REPORT ON
Submitted in partial fulfillment for the award of Degree of
Bachelor of Master of Busines Administration(MBA).
IMPACT OF PICTORIAL CAUTION ON
TOBACCO PACKING UPON SMOKING
HABBITS
INTEGRAL UNIVERSITY , LUCKNOW
Faculty of Management & Research
www.integraluniversity.ac.in

DECLARATION
I, …………., hereby declare that the project titled “Impact of Pictorial caution on tobacco
packing upon smoking habbits . are original and bonafide.
I also declare that this project is a result of my effort and no part of this project has been
published earlier or been submitted as a project by me for any degree or diploma for any institute
or university.

ACKNOWLEDGEMENT
Words often fail to express inner feelings of gratitude and indebtedness to one’s
benefactors, but then it is the only readily available medium through which the
undersigned can express her sincere thanks to all those who are associated with her work
in one way of the other.
I feel it my profound privilege to express my most sincere gratitude and indebtedness to my
project guide ………….. who was instrumental in providing me direction, constant
encouragement and co-operation in my attempt to take this project to its logical conclusion.
I would like to thank all my teachers at One Up.
In brevity, it was pleasure working in the organization, which provided me the most congenial
environment.

CHAPTER 1
THE PROBLEM AND ITS BACKGROUND
Introduction
Tobacco is one of the main sources of living in the India. On the other hand,
tobacco also is the only legal consumer product that kills, when used as intended, and is
highly addictive with half of all long-term users are dying from their addictions. This is
the reason why its use is discouraged by putting retail tobacco products to high levels of
ation.
India is one of the countries who has increased, and has still increasing tobacco .
But this doesn't seem to be high enough to stop, or even just to minimize Filipinos from
using tobacco products, specifically cigarettes. Since they are known to be resourceful,
they've thought of different ways for the said product to be consumed easily, like selling
single-stick cigarettes instead of packs and/or cases. These single-sticks are sold not to
adults ONLY, but to young children too, exposing their early minds to curiosity for such
vices. And so, the government has come up with a proposal - the 400% increase in
tobacco - to minimize the Filipino, especially the young, smokers.
As to this, we are not sure if everyone will agree, we are not sure if everything
will turn to be good results, and we are not sure if every smoker would rather stop
smoking than think of other alternative, that's why surveys, interviews, and researches
were conducted to obtain different views and opinions from different individuals. A study
has been made to present what may be the economic effects of increase ation on tobacco,
both negative and positive.

Statement of the Problem
This study primarily aimed to determine the effects of increased of tobacco in the
economy of the India.
Specifically, this study sought to answer the following questions:
1. What is the profile of respondents in terms of
1.1 Age
1.2 Gender
1.3 Socio-Economic Status
2. What are the effects of increased of tobacco?
3. What are the benefits of increased of tobacco in the economy?
4. What are the problems met by the manufacturers of tobacco in the increase of ?
Statement of the Objectives
This study aims to attain the following objectives:
1. To know the effect of increased tobacco.
2. To know the benefits of increase of tobacco in the economy.
3. To know the problems met by the manufacturers of tobacco in the increase of .

Significance of the Study
This study shows the significance of the effects of increase of tobacco in the
Philippine economy.
The Administrator – for them to be more credible in raising and helping students
about the effect of tobacco increase in the Philippine economy, that may help them
enhance their self worth and become productive citizen someday. The study may also aid
them in being more vigilant on the increase of es, which help economy in the increase
of tobacco.
Students – for them to be more aware that cigarette smoking is dangerous to their
health. They must also know that increased es can lessen smoking of students.
Researchers – for them to have an overview of the study they are going to conduct
as it may be similar to what the present study encompasses. They might also be
enlightened that increase helps the Philippine economy.
Manufacturers - as the major producers they also serve as the suppliers of the
products, knowing that their products can benefit the Philippine economy, thus, resulting
to higher demand among consumers.
Scope and Limitation
This study is about the effects of the increase of tobacco in the economy of the
India. Data was taken from the nursing students of Manila Central University by
conducting a survey and interviewed one of the employees from the excise division of
the Bureau of Internal Revenue (BIR) of the India last March 7, 2011. We have also
collected information about the benefits and problems that will occur when the on the

tobacco increases. The Republic Act No. 9334, which provides for automatic excise
increases every two years from 2005 to 2011, was also included.
Definition of Terms
The terms indicated below were defined lexically and operationally in order to
facilitate a clearer understanding of this research study. It included:
Accumulation of capital - refers simply to the gathering or amassment of objects
of value; the increase in wealth; or the creation of wealth.
Benefits- refers to something that promotes or enhances well being; an advantage
of es increase in tobacco.
Economy - consists of the economic system of a country or other area,
the labor, capital and land resources, and the economic agents that socially participate in
the production, exchange, distribution and consumption of goods, distribution
consumption of goods and services of that area.
Economic system - is the structure of production, allocation of economic
inputs, distribution of economic outputs, and consumption of goods and services in an
economy. It is a set of institutions and their social relations.
Consumers - refer to one that consumes, especially one that acquires or services
for direct used of tobacco.
Profile - refers to a set of characteristics developed for use in identifying persons
or things as being likely to develop certain group.
- is to impose a financial charge or other levy upon a payer by a state or the
functional equivalent of a state such that failure to pay is punishable by law.

Tobacco - is an agricultural product processed from the leaves of plants in the
genus Nicotiana. It can be consumed, used as an organic pesticide and, in the form of
nicotine tartrate, used in some medicines.

Chapter 2
Review of Related Literature
Tobacco smoking is the practice of burning tobacco and inhaling the smoke
(consisting of particle and gaseous phases). (A more broad definition may include simply
taking tobacco smoke into the mouth, and then releasing it, as is done by some with
tobacco pipes and cigars). The practice may have begun as early as 5000-3000 BC.
Tobacco was introduced to Eurasia in the late 17th century where it followed common
trade routes. The practice encountered criticism from its first import into the Western
world onwards, but embedded itself in certain strata of a number of societies before
becoming widespread upon the introduction of automated cigarette-rolling apparatus..
German scientists identified a link between smoking and lung cancer in the late
1920s, leading to the first anti-smoking campaign in modern history, albeit one truncated
by the collapse of the Third Reich at the end of the Second World War. In 1950, British
researchers demonstrated a clear relationship between smoking and cancer. Evidence
continued to mount in the 1980s, which prompted political action against the practice.
Rates of consumption since 1965 in the developed world have either peaked or declined.
However, they continue to climb in the developing world.
Smoking is the most common method of consuming tobacco, and tobacco is the most
common substance smoked. The agricultural product is often mixed with additives[8] and
then combusted. The resulting smoke is then inhaled and the active substances absorbed

through the alveoli in the lungs.[9] Combustion was traditionally enhanced by addition of
potassium or other nitrates .[citation needed] Many substances in cigarette smoke trigger
chemical reactions in nerve endings, which heighten heart rate, alertness, and reaction
time, among other things. Dopamine and endorphins are released, which are often
associated with pleasure. As of 2008 to 2010, tobacco is used by about 3 billion people
(about 49% of men and 11% of women) with about 80% of this usage in the form of
smoking. The gender gap tends to be less pronounced in lower age groups.
Many smokers begin during adolescence or early adulthood. During the early stages,
a combination of perceived pleasure acting as positive reinforcement and desire to
respond to social peer pressure may offset the unpleasant symptoms of initial use, which
typically include nausea and interrupted sleep patterns. After an individual has smoked
for some years, the avoidance of withdrawal symptoms and negative reinforcement
become the key motivations to continue.
In a study done by Jennifer O' Loughlin and her colleagues for seventh grade students
were studied, with their first smoking experience. They found out that the most common
factor leading students to smoke is cigarette advertisements. Smoking by parents, siblings
and friends also encourage students to smoke.

Use in ancient cultures
Aztec women are handed flowers and smoking tubes before eating at a banquet,
Florentine Codex, 16th century.
Smoking's history dates back to as early as 5000–3000 BC when the agricultural
product began to be cultivated in South America; consumption later evolved into burning
the plant substance either by accident or with intent of exploring other means of
consumption. The practice worked its way into shamanistic rituals. Many ancient
civilisations — such as the Babylonians, the Indians, and the Chinese — burnt incense
during religious rituals. The practice was later adopted by Christians. Smoking in the
Americas probably had its origins in the incense-burning ceremonies of shamans but was
later adopted for pleasure or as a social tool. The smoking of tobacco and various
hallucinogenic drugs was used to achieve trances and to come into contact with the spirit
world.
Eastern North American tribes would carry large amounts of tobacco in pouches as a
readily accepted trade item and would often smoke it in pipes, either in sacred
ceremonies or to seal bargains. Adults as well as children enjoyed the practice. It was
believed that tobacco was a gift from the Creator and that the exhaled tobacco smoke was
capable of carrying one's thoughts and prayers to heaven.
Apart from smoking, tobacco had a number of uses as medicine. As a pain killer it
was used for earache and toothache and occasionally as a poultice. Smoking was said by

the desert Indians to be a cure for colds, especially if the tobacco was mixed with the
leaves of the small Desert Sage, Salvia Dorrii, or the root of Indian Balsam or Cough
Root, Leptotaenia multifida, the addition of which was thought to be particularly good for
asthma and tuberculosis.
Popularization
In 1612, six years after the settlement of Jamestown, John Rolfe was credited as the
first settler to successfully raise tobacco as a cash crop. The demand quickly grew as
tobacco, referred to as "brown gold", revived the Virginia joint stock company from its
failed gold expeditions.] In order to meet demands from the Old World, tobacco was
grown in succession, quickly depleting the soil. This became a motivator to settle west
into the unknown continent, and likewise an expansion of tobacco production. Indentured
servitude became the primary labor force up until Bacon's Rebellion, from which the
focus turned to slavery. This trend abated following the American revolution as slavery
became regarded as unprofitable. However, the practice was revived in 1794 with the
invention of the cotton gin.
Frenchman Jean Nicot (from whose name the word nicotine is derived) introduced
tobacco to France in 1560, and tobacco then spread to England. The first report of a
smoking Englishman is of a sailor in Bristol in 1556, seen "emitting smoke from his
nostrils". Like tea, coffee and opium, tobacco was just one of many intoxicants that was
originally used as a form of medicine. Tobacco was introduced around 1600 by French
merchants in what today is modern-day Gambia and Senegal. At the same time caravans
from Morocco brought tobacco to the areas around Timbuktu and the Portuguese brought

the commodity (and the plant) to southern Africa, establishing the popularity of tobacco
throughout all of Africa by the 1650s.
Soon after its introduction to the Old World, tobacco came under frequent criticism
from state and religious leaders. James VI and I, King of Scotland and England, produced
the treatise A Counterblaste to Tobacco in 1604, and also introduced excise duty on the
product. Murad IV, sultan of the Ottoman Empire 1623-40 was among the first to attempt
a smoking ban by claiming it was a threat to public morals and health. The Chinese
emperor Chongzhen issued an edict banning smoking two years before his death and the
overthrow of the Ming dynasty. Later, the Manchu of the Qing dynasty, who were
originally a tribe of nomadic horse warriors, would proclaim smoking "a more heinous
crime than that even of neglecting archery". In Edo period Japan, some of the earliest
tobacco plantations were scorned by the shogunate as being a threat to the military
economy by letting valuable farmland go to waste for the use of a recreational drug
instead of being used to plant food crops.
Bonsack's cigarette rolling machine, as shown on U.S. patent 238,640.
Religious leaders have often been prominent among those who considered smoking
immoral or outright blasphemous. In 1634 the Patriarch of Moscow forbade the sale of
tobacco, and sentenced men and women who flouted the ban to have their nostrils slit and
their backs flayed. The Western church leader Urban VII likewise condemned smoking
on holy places in a papal bull of 1624. Despite some concerted efforts, restrictions and
bans were largely ignored. When James I of England, a staunch anti-smoker and the
author of A Counterblaste to Tobacco, tried to curb the new trend by enforcing a 4000%

tax increase on tobacco in 1604 it was unsuccessful, as suggested by the presence of
around 7,000 tobacco outlets in London by the early 17th century. From this point on for
some centuries, several administrations withdrew from efforts at discouragement and
instead turned tobacco trade and cultivation into sometimes lucrative government
monopolies.[
By the mid-17th century most major civilisations had been introduced to tobacco
smoking and in many cases had already assimilated it into the native culture, despite
some continued attempts upon the parts of rulers to eliminate the practice with penalties
or fines. Tobacco, both product and plant, followed the major trade routes to major ports
and markets, and then on into the hinterlands. The English language term smoking
appears to have entered currency in the late 18th century, before which less abbreviated
descriptions of the practice such as drinking smoke were also in use.
Growth in the US remained stable until the American Civil War in 1860s, when the
primary agricultural workforce shifted from slavery to share cropping. This, along with a
change in demand, accompanied the industrialisation of cigarette production as craftsman
James Bonsack created a machine in 1881 to partially automate their manufacture.

CHAPTER 3
METHODOLOGY
This chapter presents the research design and procedures used in this study. This
covers the research method used, research locale, description of the subjects, population
and sampling scheme, instrumentation, data gathering procedures, and the statistical
treatment of data.
Research Design
This studies on the effects of increase in the economy on tobacco. The researcher
made use of the descriptive method, which involves gathering of data, interviews and
information derived primarily from survey and with the use of questionnaires. According
to Good and Scates (2002) put in descriptive research purpose to presents facts
concerning nature and status of anything. (Good Carter & Scates B.E.)
The objective of descriptive research is to describe the market characteristics or
functions. It is characterized by a structured, preplanned approach. Surveys and consumer
panels are examples of descriptive research. The most common type of descriptive
marketing research is the cross sectional survey or longitudinal survey.

Research Locale
The researchers conducted at the Lucknow about the effects of increase of
tobacco in the economy. Basically, the researchers chose this topic to know the effect of
the increase in the economy.
Data Gathering Procedure
The researchers personally gathered data needed for this study by means of
reproducing 50 copies of questionnaires. The data gathered used the instrument
developed for the purpose. The researchers asked permission from the school premises to
conduct study.
The Population and Sample Size
Fifty respondents (50) were requested to answer the questionnaires floated. The
data gathered were then analyzed and interpreted to come up with the conclusion. Since
the number of respondents did not exceed one hundred, the determination of sample size
of the population is not necessary so all of them were taken as our respondents in the
study.

Instrumentation
The researchers used questionnaire as their instrument in collecting data. It was
on a checklist form, where the respondents check the most applicable answer for the
given questions.
Statistical Treatment of Data
The data gathered from the research instruments were grouped, statistically
treated and presented in table. Responses for every variable in the questionnaire were
tallied to give reliable and sound analysis and interpretation of the data. The researchers
used the frequency distribution having the formula:
F
P = _____ x 100
N
Where: P = percentage of respondents/response
F = frequency
N = total number of respondents/response

Chapter 4
Presentation, Analysis, and Interpretation of Data
This chapter presents, analyzes and interprets the data gathered in order to know
the effect of increase in tobacco in the economy. Sets of questionnaires were distributed
to 50 respondents to gather necessary information and data needed in the research study.
Respondents’ Personal Data
Table 1: Gender
Respondents Frequency Percentage
Female 25 50%
Male 25 50%
TOTAL 50 100%

From the 50 respondents, 50% were females and 50% were males(as shown on the table
above). The researchers purposely chose the gender of the respondents to compare the
different point of views as they may have various lifestyles.

Table 2: Socio-Economic Status
Low Class 3 6%
Middle Class 41 82%
High Class 6 12%
TOTAL 50 100%
It shows in this table that 6% of the respondents are from low class, 82 % from middle
class and 12% are from high class group. The data above helped the researchers analyze
that the majority of the respondents are of middle class.

Table 3: Age
15-18 23 46%
19-21 27 54%
TOTAL 50 100%
It shows in this table that 46% of the total respondents are at the age 15-18, while
54% are at the age of 19-21. It is shown that the majority of the respondents are 19-21
years old.

Respondents’ Personal Views
Table 4: Respondents Who Smoke
Response Frequency Percentage
Yes 16 32%
No 34 68%
TOTAL 50 100%
Out of the 50 respondents, 32% are smokers and 68% are not. Most surveyed
were not using tobacco products, particularly cigarettes, but they still have an opinion
about the increase of on tobacco.

Table 5: Frequency of Smoking
Everyday 13 26%
Once or Twice (weekly) 1 2%
Occasionally 2 4%
None at all 34 68%
TOTAL 50 100%
From the 50 respondents, 26% smokes everyday, 2% smokes once or twice in a
week, 4% smokes occasionally and 68% doesn’t smoke at all. Most of the smokers are
smoking everyday.
Table 6: Stick(s) Consumed Per Day
Stick(s) Frequency Percentage
1-2 4 8%
3-4 2 4%

5-6 2 4%
7-8 1 2%
9 or more 7 14%
None 34 68%
TOTAL 50 100%
Out of the 50 respondents, 8% consumes 1-2 stick(s) per day, 4% consumes 3-4, 4%
consumes 5-6, 2% consumes 7-8, 14% consumes 9 or more and 68% are non-smokers.
Most of the surveyed smokers, uses/consumes 9 sticks or more in just a day.
Table 7: Expenses for Cigarettes
Value Frequency Percentage
1-5 PHP 4 8%
6-10 PHP 2 4%
11-15 PHP 2 4%
16-20 PHP 1 2%
21 PHP or more 7 14%
None 34 68%
TOTAL 50 100%

As shown on the table above, 68% of the respondents spend nothing for
cigarettes, 14% spends 21 PHP or more, 2% spends 16-20 PHP, 4% spends 6-10 PHP
and 11-15 PHP, and 8% spends 1-5 PHP.
Table 8: Reaction on the Increase Proposal
It’s okay with me. 8 16%
I’ll stop because it is
way too expensive.
3 6%
I’ll just lessen my
consumption.
5 10%
I don’t smoke, so I
don’t really care.
34 68%
TOTAL 50 100%

Out of the total respondents, 16% reacted on the Increase Proposal that “it’s
okay with me”, 6% reacted “I’ll stop smoking because it’s way too expensive.”, 10% said
that “I’ll just lessen my consumption”, and 68% said that “I don’t smoke, so I don’t really
care”.

Table 9: Proposal for increase of Tobacco
Yes 26 52%
No 24 48%
Total 50 100%
Out of 50 respondents, 52% agreed for the increase on tobacco products and 48% are
not agreed for this proposal of the government.

Table 10: Effects to Economy
Lessen pollution and
smokers.
32 64%
Decrease in number of
people developing
smoking-related
diseases.
33 66%
Decrease in mortality. 27 54%
Increase government
revenue.
19 38%
Smokers will just
switch to lower price
brands.
15 30%
Smokers have to budget
their consumption.
9 18%
Government will
probably just corrupt
the money.
19 38%
Increase cigarette theft
and smuggling.
11 22%
Counterfeiting
cigarettes ( FAKE ).
9 18%
Unemployment
increase.
30 60%

Out of total respondents, 64% answered “ Lessen pollution and smokers “, 66% answered
“Decrease in number of people developing smoking-related diseases”, 54% answered
“Decrease in mortality”, 38% answered “Increase government revenue.”, 30% answered
“Smokers will just switch to lower price brands.”, 18% answered “Smokers have to
budget their consumption.”, 38% answered “Government will probably just corrupt the
money.”, 22% answered “Increase cigarette theft and smuggling.”, 18% answered
“Counterfeiting cigarettes ( FAKE ).”, and 60% answered “Unemployment increase.”.
Majority believed that the increase of tobacco has an effect of Lessen pollution, smokers
and Decrease in number of people developing smoking-related diseases but
unemployment will continue to increase.

Conclusion
Based from the survey we’ve gathered, most of the respondents who smoke don’t
mind the increase of in tobacco products such as cigarette, as long as they still get to
smoke. The majority of the respondents think that the government will pursue the
proposal of 400% increase on tobacco products as soon as it is legalized. Most of them
think that the continuous increase will lessen the pollution, and the number of people
developing smoke-related diseases will decrease.

BIBLIOGRAPHY
Guindon G, Tobin S, Yach D. Trends and affordability of cigarette prices: ample
room for increases and related health gains. 2002 Mar;11(1):35–43.
Lal A, Scollo M. Big Mac index of cigarette affordability. Tob Control. 2002
Sep;11(3):280–282.
Levy David T, Chaloupka Frank, Gitchell Joseph, Mendez David, Warner
Kenneth E. The use of simulation models for the surveillance, justification and
understanding of tobacco control policies. Health Care Manag Sci. 2002
Levy DT, Cummings KM, Hyland A. A simulation of the effects of youth
initiation policies on overall cigarette use. Am J Public Health. 2000 Aug;90(8):
Wen C, Levy D, Cheng T, Hsu C, Tsai S. Smoking behaviour in Taiwan, 2001.
Mallari DT. Philip Morris’ new plant a smoking showcase. Philippine Daily
Inquirer 13 Oct 2002:10.
Mackay J , Eriksen M. The tobacco atlas. Geneva: World Health Organization,
2002.
World Bank. HNPStats. 2001. http://devdata.worldbank.org/hnpstats [Accessed
11 May 2004].
Miguel-Baquilod M . Report on the results of the National Youth Tobacco
Survey in the India GYTS 2000. Manila, India: National Epidemiology Center, 2001.

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