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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