This website uses cookies to ensure you have the best experience. Learn more

Itc Why Small Cigarettes Have Been Launched

1475 words - 6 pages

1. ITC to counter illegal cigarette market with a pack of new brands: Kurush Grant, Executive Director
Writankar Mukherjee, ET Bureau Aug 28, 2012, 06.18AM IST

(ITC Executive Director…)
It is not common for an ITC top executive to talk about the FMCG-to-hospitality major's largest revenue generator, the cigarette business. However, ITC Executive Director Kurush Grant-who oversees its FMCG businesses including cigarettes and is one of the three directors who are considered frontrunners to succeed YC Deveshwar as ITC chairman-says that the company is determined to fight the illegal industry. ITC is test-marketing a portfolio of new cigarette brands such as Flake Deluxe, Scissors ...view middle of the document...

These illegal cigarettes are manufactured by local producers who do not pay tax, and the money goes into the hand of mafia who fund anti-social activities. It is here ITC is pitching the new cigarette brands, which are launched in the sub-65 mm segment after the government recently provided some tax differential in this segment. We hope to beat the illegal cigarette industry, which sells inferior products.
Do you expect new brands to boost ITC's cigarette business volumes, especially when states have raised taxes?
We are selling the sub-65 mm cigarettes at around Rs 2 per piece, which are competitively priced as compared to the illegal industry. These brands should help our business, since it is only the bottom and top-end of the market which are growing. However, the increase in taxation on cigarettes is a concern and it can indeed impact our volume growth. We are worried, but as of now we are doing well.
Cigarettes contribute over 74% of tax revenue, while accounting for less than 15% of tobacco consumption. In fact, non-filter cigarettes are cheaper than bidi without taxes. Unless government recognizes this anomaly, consumers will go for cheaper forms of tobacco. For instance, chewing tobacco has become the largest form of tobacco intake due to this taxation structure.
Can the non-cigarette FMCG business break even before the target of 2017?
ITC's non-cigarette FMCG business has been judged as the fastest growing FMCG business in India by Nielsen. We have recently revamped the entire product portfolio by launching a richer and premium variant at each level.
2. ITC aims to smoke out rivals with 64mm cigarettes
Aug 29, 2012, 08.27 AM IST
Cigarettes to FMCG to hotels major ITC has been very aggressive in the FMCG space in recent times, with a slew of personal care and food products launched, backed up by a strong advertising push. However, its mainstay still remains cigarettes and it is here that it aims to shake up the market with a new 64mm cigarette.
Moneycontrol Bureau

Cigarettes to FMCG to hotels major ITC  has been very aggressive in the FMCG space in recent times, with a slew of personal care and food products launched, backed up by a strong advertising push. However, its mainstay still remains cigarettes and its here that it aims to shake up the market with a new 64mm cigarette.
The company has test launched the 64mm cigarette, under the Capstan brand, priced at Rs 2 per stick and Gold Flake at Rs 2.5, in June, to take on the unorganised market, where cheap local brands as well as many illegal ones are sold at as low as Rs 1. The 40% tax differential between 64mm and the usual 69mm cigarettes was also another key reason for ITC's move.

After testing the 64mm cigarettes in Uttar Pradesh and Bihar, the company is now set to launch it nationally. Some analysts say the company is already testing the cigarette in several states apart from Bihar and UP.
Media reports quoting Hemant Malik, COO, Trade, Marketing & Distribution, said...

Other Papers Like Itc-Why Small Cigarettes Have Been Launched

Itc Limitee Essay

2739 words - 11 pages , safety matches and incense stick market as well as launched cosmetics brands like “Fiama di Wills”, “Vivel” etc. Analysis: SWOT Analysis of ITC Company: Strength of the ITC Company were: * Introduction of cigarettes initiated their venture in India. It gained them recognition. * The strategy of marketing which was new at that time, helped them to be where they are now. * ITC have diverse business. ITC has 105 subsidiaries connected with its

Strategic Management Essay

1947 words - 8 pages , was born in Samaland. This is a part of Southern Sweden where the soil is thin and poor. The people are famous for working hard, living on small means and using their heads to make the best possible use of the limited resources they have. This way of doing things is at the heart of the IKEA approach to keeping prices low. IKEA was founded when Sweden was fast becoming an example of the caring society, where rich and poor alike were well looked

Itc - Fast Moving Consumer Durables

718 words - 3 pages , visibility and category movement of ITC of Sunfeast cream biscuits and cookies and its competitor products in Retail Format. The Project Duration is of 60 days viz. from 9th April, 2012 to June 9, 2012. South Delhi markets have been visited for the study which consists of collecting and analyzing primary data from retail outlets at fourteen markets in South Delhi. ITC is one of India's foremost private sector companies with a market capitalization

Bingo Research

3400 words - 14 pages and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. STRATEGIES ITC HAS BEEN FOLLOWING FOR BINGO Research After making the decision to launch Bingo it started by sending a cross-functional team of eight individuals were sent across the country to research the snacking habits


2572 words - 11 pages have been put into practice along with high quality fertilisers and seeds, and comparisons made with yields from control plots to encourage farmers to switch to improved farming inputs and methods. This programme is one aspect of ITC’s commitment to improved agricultural yield, and is supplemented by the provision of high quality seeds and fertilisers, both at the e-Choupal and at the ITC rural retail centre, the Choupal Sagar (CS). CS provides the


3537 words - 15 pages advertisements of promoting cigarettes have been banned by the GOI. Also, statutory warnings, disclaimers have been made mandatory to educate people about the harmful effects of tobacco. 3.2 MICRO ENVIROMENT: We use Porter’s five forces to analyze the micro environment: Market Competitors: High ITC: ITC's major cigarette brands popular in Anand include W.D. & H.O. Wills, Gold Flake Kings, Gold Flake Premium, Gold Flake Super Star, Navy


433 words - 2 pages 1500 rooms will have been added to the ITC Welcomgroup chain over the next few years. These investments, apart from providing an attractive growth opportunity for your Company, would stimulate large direct and indirect employment besides supporting substantial foreign exchange earnings. Given the high economic multiplier impact of investments in hotels, it is estimated that your Company’s investment programme will create upwards of 20,000 additional direct and indirect jobs.

Cigarettes: What's Killing Our Country

1475 words - 6 pages financial status. Although many people continue to remain convinced that absolving our country of cigarettes does not merit some economical loss, this remains as a necessary step in eradicating our country of these virulent stiflers of life.For years cigarettes have been known to cause cancer, emphysema, and other horrible illnesses. The deaths of over 420,000 of Americans this year will be attributable to cigarettes. With all the other causes

Retail in Rural India

5084 words - 21 pages , shampoos, washing powder, toothpaste, cigarettes, etc. Not only ITC brands, but other manufacturers’ brands are also available. It is reported that more than 55 consumer product companies have tied up with ITC for distributing their products through Choupal Sagar. In the consumer-durable segment, one finds mostly black-&-white television - as well as color television, refrigerator, washing machine, motorbike, bicycle, room-heater from

Electronic Cigarette Legalization Analysis

1596 words - 7 pages necessity in life, A good scare is worth more to a man than good advice.(Edgar Watson Howe) Fear is what holds a person back and despite the studies and facts on electronic cigarettes Americans still firmly believe that they are harmful. For many years the Tobacco industry has been one of the top industries of America although the rich get richer and the poor only sicker. For those who have addictions it is a great hardship to quit as large companies

Case Study of Applied Research Technologies Incorporation

3903 words - 16 pages has been acquired in 1996 from oil and gas Service Company. Its core products are relating to the Government requirement of recycling of water at drilling sites and well heads. A change comes into this business when a 32 years old manager is hired for this unit called Vyas. Having an enthusiastic personality, he immediately starts hiring innovative and creative mind people into his team. Janice Wagner is one of those hired people who have

Related Essays

Why Has The Work Done By Women Often Been Assumed To Be Of Less Important Than The Work Done By Men? Is It Due To The Prevalence Of Men’s Ideas About The Value Of Individual Occupations, Or Have Other...

2668 words - 11 pages exploitation will continue in a male dominated society who assume which job is to be assigned to a male or female. In the Caribbean women have always been part of the work force as agricultural or domestic workers. As Caribbean women prefer to go out and work as opposed to staying at home as many of the region females are head of households and have a duty to provide for their families. However exploitation is very evident here as majority of the jobs

What Three Pieces Of Legislation Have Been Most Important In Defining The Rights Of Management And Unions? Why And What Role Did They Play?

1134 words - 5 pages direct result the work environment that we are accustomed to is indebted as is society as a whole. Labor Laws Throughout history laws have been created to guide us in the never-ending quest to know right from wrong. From Biblical text to the Middle Ages until the present time, laws have shaped society for the better and for the worse. It is my opinion that in no other realm has law enactment created such vast amounts of change than when we

Jet Airways Essay

1975 words - 8 pages Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes

Itc Stretagic Managment Essay

1706 words - 7 pages as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels