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ITC CigarettesBy:

Aditi RamdassAkanksha Bhansal

Ravi TejaSiddharthSujoy Debnath

TusharSharan

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History of the company ITC was incorporated on August 24, 1910 under the name of 'Im

Tobacco Company of India Limited

A leased office on Radha Bazar Lane, Kolkata, was the centre oCompany's existence

The Company was changed to I.T.C. Limited in 1974.

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Company profile

ITC is one of India's foremost private sector companies Its businesses are spread over a wide spectrum, ranging from ciga

and tobacco to hotels, packaging, paper and paperboards and intecommodities trading corporation.

It employs over 29,000 people at more than 60 locations and has adiversified presence

Has a market capitalisation of over US $ 33 billion and a turnover obillion.

ITC is rated among the World's Best Big Companies, Asia's 'Fab 50the World's Most Reputable Companies by Forbes magazine and aIndia's Most Valuable Companies by Business Today

(http://www.itcportal.com/about-itc/itc-profile/itc-profile.aspx)

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Product Portfolio

ITC Cigarettes - A case Study

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Product Portfolio

ITC Cigarettes - A case Study

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Ban on Tobacco advertisemen

REASON :- Tobacco kills an estimated 5 million people around the world every year

Radioactive particles in cigarette smoke cause lung cancer

Teens may lose IQ points later in life if they smoke before age 18

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Product

Cautionary note and image.

Manufacturing (Quality) in accordancewith government.

Price

Increasing price rates dugovernment budget p

Promotion

No direct marketing options available.

No specific or trained sales force.

Place

Restriction on selling of

Licensing of dealers (dchannels) is diffic

Marketing Mix

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Q1. What problems do you think ITC is going to face in the future due to ban in

advertising?

Cigarette advertisement is not influential to smokers as smokersare driven to retail shops due to addiction.

More people smoke because of habit than advertising

Studies indicate that advertising does not increase tobaccoand alcohol consumption.

ITC have never relied much on advertising and so, such a law can never impact the

With 80% market share and well composed mobile market strategy to drive its sharealready in a well established state in the market.

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The bulk of these studies indicate that advertising does not

increase tobacco and alcohol consumption

Unlike ITC , smaller tobacco companies and new entrants wouldfind it extremely difficult to establish themselves in this changed scenario.

However vociferous anti-smoking ads may affect its saledue to reduction in numbers of smokers due fear of smoking linked to cancer.

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Q3.What other environmental factors other than legal envirlikely to influence the marketing mix of ITC cigarette

Increasing threat from cheaper illegal imports

Increasing awareness of health issues also influencing low

tar sector growth

Uncertainty over date and nature of ban has made forward plan

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