Itc Cigarettes Case

Topics: Cigarette, Tobacco, Tobacco advertising Pages: 2 (344 words) Published: August 25, 2011
ITC Cigarettes

1Ans: Advertising and marketing tobacco products will attract new customers.By this ban on advertising of cigarettes in Indian market ITC is going to face a tough challenge of marketing their cigarettes.Few reasons why ban acts in negative way for ITC are Advertising contributes to the concepts of independence, fashion, glamour and machismo to be associated with smoking.

Tobacco advertising in any form has a powerful effect on vulnerable groups like children, young people and women. Children and the youth use tobacco due to peer pressure, to look cool, older and mature. Children and youth are also highly influenced by celebrities and film stars smoking or endorsing tobacco brands. Due to the ban they need to devise new ways to attract customers which is the biggest challenge for ITC.

2Ans: Even though the law strictly prohibits direct advertising,lack of proper implementation resulted in companies flouting the rules.No,ITC should not lobby to lift the ban on cigarette advertising as it will damage the public image of the brand,more importantly because it has wide range of products. ITC should promote their brand by the following means:

Surrogate advertising.
Industry tactics to flout the rules by taking advantages in improper implementation of the act. Launching mobile smoking lounges.
Innovative collaborations. Ex:ITC and LIC
Hookah cafes for attracting youth,especially women.
Involiving in CSR activities.
Point-of-sale advertising.

3Ans: The factors that affect the marketing mix of ITC cigarettes other than political and legal factors are

Economic factors
It is expected that cigarette use will increase overtime as disposable incomes increase in India. The tax increase has also led to many unfiltered brands being removed from the market. The smokers who currently smoke bidis switched to factory made cigarettes, then India’s cigarette consumption would increase to around 640 billion...
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