MARKETING PLAN FOR STELLAR
THE ONLY INDIAN LOW NICOTINE CIGARETTE
SUBMITTED TO PROF. RAHUL GUPTA
SHIV CHARAN SASTRY(08BS0002843)
SAURABH MURGAI (08BS0003012)
SAMEER SRIVASTAVA (08BS0002908)
SHANTANU SHEKHAR (08BS0003078)
The Indian Cigarettes & Tobacco Products market is a huge opportunity for any company that wishes to gain a foothold in this industry. The industry is dominated by a few major players, namely ITC Ltd., Godfrey Phillips India Ltd., Vazir Sultan Tobacco Ltd., and Golden Tobacco Company Ltd. Together these companies hold almost 97% of the whole Cigarettes market in India. Godfrey Phillips India Ltd came up with a new innovative product – Stellar, a Slim Low Nicotine Cigarette to ensure it survives in the stiff competition and harsh changing marketing environment. These Cigarettes targeted the young, health conscious consumers who wanted to be more responsible in their habits and lifestyle. With no other product to compete in this category, GPI Ltd is the sole player in the Indian Low Nicotine Cigarettes market. The marketing of this new product proved to be even more of a herculean task for the company as it noticed that it is very hard to influence Brand Loyal consumers. So the company, which initially thought that the product will sell on its own, decided to come up with a comprehensive marketing plan to improve sales of Stellar and gain more market share and penetration. The plan includes the industry and category analysis, product profile, strategy for market penetration, with details and rationale. This objective of this document is to develop a comprehensive marketing plan, taking into consideration the overall picture of the industry and the company. The strategy suggested is of Market Penetration, wherein supporting marketing tools will be used to achieve the objectives. The marketing tools used mainly were Sales Promotion, Advertising, Promotion Campaigns, Competitive Pricing, and Tweaking the Distribution Network. The analyses include illustrations to help understand the rationale behind the outcomes better. Finally, the marketing plan includes the Budget of the whole plan, with complete breakup of the costs per activity and marketing tool used. This is followed by the Monitoring and Control Metrics that will be used to monitor the overall performance of the marketing plan. The performance metrics are also broken down into the sub-level activities and show the data sources that can be used, along with the time frame or frequency of the audit that needs to be done to monitor the whole plan with as much efficiency and ease as it is possible. The timeline that will be followed for the whole gamete of activities is also depicted.
TABLE OF CONTENTS
SL. NO.CONTENTPAGE NO.
2SITUATION ANALYSIS – CATEGORY DEFINITION4
3SITUATION ANALYSIS – CATEGORY ANALYSIS5
4SITUATION ANALYSIS – SWOT ANALYSIS6
10SUPPORTING MARKETING PROGRAMS12
12MONITORS & CONTROLS15
13TIMELINE OF THE WHOLE PLAN16
The category we are concerned with in this document is primarily the Premium Segment of Cigarettes and Tobacco Products. It includes products like Cigarettes, Cigars, and Chewing Tobacco etc. The Market is huge, holds a lot of opportunities as the population is huge, and on the rise. The major players in this category are: •ITC: The market leader in the category, with around 72% of the total market share. The company is headquartered in Kolkata, India. •GODFREY PHILIPS INDIA LTD (GPI): Godfrey Phillips India Ltd is the 2nd biggest player, with a total market share of 12%. One of Godfrey Phillips...