analysis of cigarette industry in india
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ANALYSIS OF CIGARETTE INDUSTRY
IN INDIA Presented by Ajeet Singh
Class-MBA(marketing)
Evolution
• The oldest cigarette manufacturing firm was established around 1887
• by 1930 the industry had spread across the country
• Initially under British East India Company and there after British Raj
• First private company to set up was Imperial Tobacco now ITC ltd.
•India is the third largest producer of tobacco in the world.•Tobacco occupies a prime place in the Indian economy on account of its considerable contribution to the agricultural, industrial and export sectors.•India is one of the leading Tobacco exporting countries in the world
INDIAN CIGARETTE INDUSTRY
Market share
INDUSTRY ATTRACTIVENESS
Per capita income is increasing
High education level
After lot of taxes growing rate of 6.6%
Potential rural market
EXTERNAL ENVIRONMENT
Political-Legal environment
Social-Cultural environment
Demographic environment
Income
Region
Education
FIVE FORCES ANALYSIS
Entry Barriers
Supplier Bargaining Power
Buyer's Bargaining Power
Industry Rivalry
Substitutes
SWOT on the INDUSTRY
Strength1. one the largest manufacturers of tobacco in terms of production
2. traditional item of India's foreign trade
3. leading Tobacco exporting countries in the world
Weakness4. burden of Tobacco tax
5. Prohibition of Direct advertising
SWOT (CONTD…)
Opportunities1. significant opportunity for cigarette industry to extent and
consolidate its position in intentional market due to some recent trend like withdrawal/reduction of agricultural subsidy and escalating cost in the traditional cigarette exporting countries.
Threats2. Various N.G.O’s and Forums against the use and
consumption of tobacco
3. Smuggled foreign cigarettes
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