Tobacco Consumption in Rural India

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Tobacco Consumption in Rural India - Study

Nishant Jindal (33158
Mukesh Gudge(33153)
Aditya Khanzode(33161)
Sahil Rohmetra(33174)

Rural Marketing
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FMCG Industry Category Breakup

* FMCG Industry is $25 billion. Out of which 15% is contributed by Tobacco industry. * Recent shifts in global tobacco consumption indicate that an estimated 930 million of the world's 1.1 billion smokers live in developing countries,2 with 182 million in India alone * Statistics by the ministry reveal that about 15 per cent of tobacco consumption in India is in the form of cigarettes while 53 per cent is smoked as bidis. *  32 per cent of tobacco consumption is in the form of traditional tobacco products like chewing "khaini", gutka etc. * More than 800 billion bidis are sold in India each year compared with 100 billion cigarettes sold annually. We knew there is a huge difference between tobacco consumption pattern in tobacco consumption pattern in Rural and Urban India. While Urban market is dominated by Cigarettes and Guthka. The rural market is primarily dominated by Khaini(raw tobacco which is consumed by keeping it between buccal Cavity) and biddi ( which is largely small scale and unorganized industry) We tried to understand the rural dynamics of Tobacco consumption. Our Test villages are NUSRAPUR, Khed Shivapur, Sarola which is near Pune (around 50 Kms on Pune Banglore Highway)

1) Selling pattern of various forms of Tobacco
2) Reach of Various companies in Rural Regions
3) Consumption pattern of Various forms of Tobacco
4) Factors affecting selling of various brands
5) Financial effects of tobacco consumption
6) Awareness of adverse effects of Tobacco

Working Procedure
We did exploratory research in rural markets of the villages named above. We talked to various Shopkeepers (Paan Beedi Shop) and rural consumers. We did Multilevel cross sectional analysis of consumption pattern of tobacco in India

Outcome measures
Our analysis used two dichotomous outcomes, based on the responses to the questions: “Does `household member' chew paan masala or tobacco?” and “Does `household member' smoke?” In addition, a combined measure of participants who smoke and chew tobacco was constructed in order to assess the distribution of consuming any tobacco. In our sample the overall prevalence for smoking was 18.4% and for chewing 21.0%; the combined prevalence was 32.9%. 

Various Cigarette Brand Available in Rural Market (ITC)
* Navy Cut
* Classic
* Classic Mild
* Classic Ultra Mild (Not found in Rural Market)
* Classic Menthol
* Small Gold Flake (Second Highest Selling brand)
* Gold Flake Classic
* Insignia (Not found in Rural market)
* India Kings (Not found in Rural Market)
* Silk Cut (Not found in Rural Market)
* Scissors (Not found in Rural Market)
* Capstan (Not found in Rural Market though it’s a cheaper brand) * Berkeley
* Bristol (Highest Selling brand in our test subject)
* Flake
Other Non ITC Brands Available in India
* Charminar
* Red and White
* Marlboro (Hardly available in Rural market)
* MORE (Surprising selling 2-3 packets a day in one store) * Gudang Garam ( Though one of the most expensive one but still selling in Rural market) * Four Square
Points about Cigaratte Consuption
1) Cheaper brands are sold more than expensive brands for obvious reasons 2) Bristol is the highest selling brand with sales of 15-20 packs daily per retail shop. (one rupee margin on pack of 10) 3) Second most selling is Gold Flake with retail price of 38 MRP and margin of 2 rupees. 4) Non ITC brand available is Charminar(filtered/non...
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