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Under
Marketing Management
Submitted to: Prof.Bhavesh Vanparia Tolani Institute of Management Studies
Group No.1 Ruchita Mehta (09063) Mayur Patadia (09065) Mudra Patel (09077) Hardik Paun (09081) Krupa Shah (09095) Unnati Sharma (09099)
PRODUCT
Our Main product is cigarette. Under that we have chosen GOLD FLAKE BRAND. Gold Flake is a widely-sold cigarette brand in India and Pakistan. It is sold in various varieties, including Gold Flake Kings (84 mm), Gold Flake Lights, Gold Flake Filter (filter tipped) and Gold Flake (plain). It is a wellpositioned brand in India. This brand is owned, manufactured and marketed by ITC limited the leading cigarette maker in India. Gold Flake is ITC's middle level brand in terms of price. The single largest brand in the country in value terms.
Gold flake is widely sold brand in India and is marketed in three varieties. Gold flake Filter King Size (84 mm) Gold flake kings is the largest selling brand of cigarettes in India in above 80 mm category, but lags behind wills navy cut across categories. It has a mild flavor. A pack of 10 costs about Rs. 48. Gold flake Filter King Size Lights (84 mm) Gold flake lights are milder than Gold flake and contains comparatively less nicotine. Gold flake Filter (small) Gold flake Filter (small) has the strongest flavor amongst the three brands. It also contains considerably larger amounts of tar and nicotine. A pack of 10 costs 45 Rs. Gold flake Plain (filter less) the very original Gold flake is simply known as Gold Plain or Plain in southern markets. It is the strongest of all. Gold Flake Cool Mist was a brand launched by the ITC Co. Which was encouraged much in the market and has later gone out of production? It was a milder cigarette with a mild mint flavor
Here are some details about the product and cigarette industry.
CIGARETTE INDUSTRY
The cigarette industry is one of the oldest industries in India we can say almost 100 years old. It is an important agro-based industry. It is highly labor intensive and provides livelihood to about thirty million people directly and indirectly. India's tobacco industry is one of the largest in the world, with India having the second largest area planted to tobacco leaf after China. Furthermore, India's production of leaf is only exceeded only by China and the USA. The tobacco industry in India is quite complex when compared to the nature of the industry in many other countries. The particular features that distinguish the Indian industry are Consumer market in organized sector, Consumer market in unorganized sector and other users of tobacco in organized as well as unorganized sectors.
4) New Port.
5) Parliament.
6) Pall Mall
7) Winston
8) Prime Time
9) Kool
10) West
ITC is the market leader in cigarettes in India. ITC has a leadership position
in every segment of the market. It's highly popular portfolio of brands includes Insignia. India Kings. Classic. Gold Flake. Silk Cut. Navy Cut. Scissors. Capstan. Berkeley. Bristol and Flake.
The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design, innovation, manufacturing technology, quality, marketing and distribution. All initiatives are therefore worked upon with the intent to fortify market standing in the long term. This in turns aids in designing products which are contemporary and relevant to the changing attitudes and evolving socio economic profile of the country. This strategic focus on the consumer has paid ITC handsome dividends. ITC's pursuit of international competitiveness is reflected in its initiatives in the overseas markets. In the extremely competitive US market, ITC offers highquality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a key player in the GCC markets through growing volumes of its brands. ITC's cigarettes are produced in its state-of-the-art factories at Bangalore, Munger, Saharanpur and Kolkata. These factories are known for their high levels of quality, contemporary technology and work environment.
DEVELOPING MARKETING STRATEGIES & PLAN AND CREATING CUSTOMER VALUE, SATISFATCTION & LOYALTY.
Time Cost
Personnel Benefit
Energy cost
Image Benefit
Psychological Cost
Image benefit:
Gold Flake is ITCs brand and ITC is Indias biggest and best known private sector company.ITC is incorporated on 1910 under the name of Imperial Tobacco Company of India Ltd so it is a more than 100 year old company which is producing this gold flake cigar so they have created a well known image toward customer and can get trust of customer for this brand. They have also achieved so many awards like Occupational Health and Safety Gold Award from the ROSPA, UK.etc
Product Benefit:
Gold flake is designed differently with a great filter without a compromise in taste and flavor. They are also providing the cigarette in a stylish pack so youngsters are attracted by it. Businessman, politicians are smoking this cigar for style.
Personal Benefit:
According to customer interest they are giving different type of flavor. Ex. if customer want mild and smooth flavor they will prefer Gold Flake without worry about price
Time Cost
Time cost means how much time customer is spending in choice, use & disposal of product of that product if we took the case of GOLD FLAKE person do smoke so its time consuming though person is doing it just for sake of entertain or time pass but it costs.
Energy Cost:
When person do smoke its wastage of energy when person took out fog. So its also one type of energy cost.
Psychological Cost:
Smoking is not good for health so directly or indirectly it costs to persons health.
2) Economic Environment:
As the per-capita income of citizen increase their living standard will go up and relatively their lifestyle changes. The stressful working hour will increase and it will directly lead people to search for stress-relief thing which will increase the purchase of cigarette. So, as the country get its growth the demand of cigarette will increase as the stress level will increase.
3) Social-cultural Environment:
The social-cultural environment largely includes people will different religion and of different culture. As we all are aware about western culture, the people living over there smoke as a status symbol. People in India now a day blindly follows culture of western nation and try to be like them. So, they also smoke like them. In many movies also filmstars influences people at large to smoke like them.
4) Natural Environment:
As cigarette is made of tobacco leaves, which have nicotine in it, when a person smokes he will indirectly leaves that smoke in environment and so environment get polluted. Many other people and animals get affected by indirect smoke, which harm their lungs badly.
5) Political-Legal environment:
As we all know smoking in public area in Gujarat is not legally allowed. So, governments can take such steps to stop smoker smoking in public. In many places cigarette is totally banned as it is injuries to health.
MEASUREMENT OF MARKET DEMAND POTENTIAL MARKET:The potential market is the set of consumers who profess a sufficient level of interest market offer. However, consumer interest is not enough to define a market unless they also have sufficient income and access to the product. For instance, if a marketer introduce new cigarette brand with chocolate flavor considering that chocolate is the favorite flavor of girls, chocolate but sometimes it may happen that some of them may not like the chocolate flavor because the marketer is not going to make survey of all girls in the world. So, all time it may not happen that only identification of interest is enough to introduce new product in the market a marketer have to consider all other aspects also.
AVAILABLE MARKET:The available market is the set of consumer who have interest, income, and access to a particular offer. For some market offers, the company or government may restrict sales to certain groups, as smoking cigarette in certain public in India is not allowed. So, the customers who have interest, enough income and access to purchase of cigarette also cannot have it because government has ban it to smoke it in public.
TARGET MARKET:The target market is the part of the qualified available market the company decides to pursue. As our product is cigarette, so generally all people are smoking and there is no specific target market. One can purchase it from small pan-shops and from the big casinos also.
PANETRATED MARKET:The penetrated market is the set of consumers who are buying the companys product. Here, the product is Gold-flake cigarette so our penetrated market is not local villagers because they prefer bidis rather than cigarette for satisfying their smoking need. Our penetrated market is people of urban and semi-urban area who like to smoke cigarette not bidis because they dont have filter in it.
DEMAND MEASUREMENT
Companies can prepare as many as 6*5*3 = 90 types of demand estimates. Demand can be measured using different criteria. 1) SPACE LEVEL:
Space level demand of product decides where to set up the product. It means whether product needs to be set up world wide, United States, region wise, territory wise, or customer wise. GOLDFLAKES will be world wide because in consumer market in each and every territory in any region people do smoking. So we can estimate demand of GOLD FLAKES world wide.
2) PRODUCT LEVEL:
It includes following category All sales: Industry sales: Company sales: Product line: Product form: Product item: Each and every aspect of sales. For industry of particular product. Only companies of particular products includes here. Only that product. Category of product. Particular item from product category.
GOLD FLAKE includes product form because CIGARETTE is one particular category of product. This particular product will not followed and used by each and every one so we can estimate product level demand of GOLD FLAKE by product form.
3) TIME LEVEL:
This includes time period for which marketer need to measure the demand like SHORT RUN, MEDIUM RUN, LONG RUN. If we take example of GOLD FLAKES then it need long run measurement of demand because of raw material and labor intensive work. Main objective of measurement of market demand is that if company is not satisfied with its current sales then it can take a number of actions.
In case of GOLD FLAKES all 3 factors influence buyer to purchase the product. As in western culture its trend to smoke means children even at the age of 13 or 14 they will smoke. Social factors also influence in our product as in Reference group there is membership group where by its directly influence on behavior of customer suppose friend of mine is smoking then it will also influence me to just try that how is the taste of cigarette. Primary group also influence, suppose any worker observe his/her boss smoking while they are tensed so it will influence that individual to repeat that same step. Dissociative factors also plays an important part such as if some group of people are chain smoker so no body will like to join that group means every body will keep distance from that group. Roles and status: Many a times it happen that people take help of CIGARETTES to show their status so it affects behavior of customer. In case of Personal factors many a times person do smoking just because he thinks that it suits his personality. Occupation also influence very much because there are many occupation where by life becomes useful and person start smoking to remove that stress.
1) Problem recognition:
Following are reasons that why individual do smoke? To reduce stress To show status To follow trend Because of hobby For entertainment
2) Information search:
It includes from where individual gets information about cigarettes and smoking. Personal: Family (Heredity) Friends Neighbor Commercial: Advertising Display Public: Media (Referring books, newspapers) Experience: From the experience of some friends, like some friends, try smoking once or told by someone who is already smoking.
3) Evaluation of Alternatives:
Total Set Navy cut Gold Flake Bristol More Cool Marlboro Four square
Awareness Set
Filter Brand 9 8 8 8 7 6
Price 6 7 8
Flavor 10 8 6
Total 33 30 28 91
According to our survey we have given weight to each brand according to criteria its 40% to filter, 30% to Brand, 10% Price and 20% to flavor. Gold Flake = 9*(.40) +8*(.30) + 6*(.10) + 10 *(.20) = 33/91 = 8.3 Highest Marks Navy Cut = 8*(.40) + 7*(.30) + 7*(.10) + 8* (.20) = 30/91 = 7.7 Four Square = 8*(.40) + 6*(.30) + 8*(.10) + 6*(.20) = 28/91 = 7
4) Purchase decision
According to evaluation we will choose GOLD FLAKE as it contains 8.3 marks. In evaluation of alternative also decision its GOLD FLAKE. So decision is GOLD FLAKE. 5) Post Purchase Behavior
if person is using GOLD FLAKE to reduce the stress and after using the product person will give result that is his stress reduced or not? If person is not satisfied then marketer need to take post purchase action.
also give result according to problem.
For ex:
MENTAL ACCOUNTING
While handling the money or finance customers use concept to MENTAL ACCOUNTING. Mental accounting is nothing but the way consumer code, categorize and evaluate financial outcomes of choices. Formal definition of MENTAL ACCOUNTING is the tendency to categorize FUNDS or items of value even though there is no logical basis for the categorization In laymens language it means that calculation of investment of funds. Person will do as follows:Whether to invest or not? If yes Where to invest? Which product should give priority first? Is that product worth to invest in? To get the answer of above questions person do MENTAL ACCOUNTING. Let us understand the concept with the use of example of GOLD FLAKE. EX: Person who is addicted to CIGARETTE will need to calculate budget for CIGARETTE every month. Person compulsorily needs to put aside some part of finance for CIGARETTE. If we think from opposite side then person for whom CIGARETTE is not important then person can easily allocates that cost into other products which are very necessary for that time. Consumer may save that amount or may invest in BANK or in other securities.
THE END