NATIONAL INSTITUTE OF FASHION TECHNOLOGY, MUMBAI (Ministry of Textiles, Govt. of India)

ASSIGNMENT

Consumer Behaviour Market Research

Submitted By: Submitted To:

Karan Kumar Arora Prof. Ms. Sonali Saldanha M/MFM/11/13 Professor, FMS 27/04/2012 NIFT, Mumbai.

Prologue

The following study has been undertaken as a part of academic curriculum of Fashion Management Studies, NIFT Mumbai under the esteemed guidance of Prof. Ms. Sonali Saldhana.

The study focuses on the consumer perception of Classic Cigarettes, as well as Brand Loyalty, expectations of the consumer in terms of quality, quantity, pricing and availability.

The study is done on the basis of primary data collection by distributing questionnaires to the residents of Navi Mumbai. No secondary or published data is taken into concern while the making of this project.

We undertake the responsibility for the accuracy and authenticity of the information included in the project report.

-Karan Kumar Arora

-Pulkit Raj Mittal

CIGARETTES

A cigarette (from the French for "small cigar"). Cigar comes, through the Spanish and Portuguese cigarro, from the Mayan siyar; "to smoke rolled tobacco leaves") a small roll of finely cut tobacco leaves wrapped in a cylinder of thin paper for smoking. The cigarette is ignited at one end and allowed to smoulder; its smoke is inhaled from the other end, which is held in or to the mouth and in some cases a cigarette holder may be used as well. Most modern manufactured cigarettes are filtered and include reconstituted tobacco and other additives.

The term cigarette, as commonly used, refers to a tobacco cigarette but can apply to similar devices containing other herbs, such as cloves or cannabis. A cigarette is distinguished from a cigar by its smaller size, use of processed leaf, and paper wrapping, which is normally white, though other colors are occasionally available. Cigars are typically composed entirely of whole-leaf tobacco.

Rates of cigarette smoking vary widely, and have changed considerably over the course of history — since cigarettes were first widely used in the mid-20th century. While rates of smoking have over time leveled off or declined in the developed world, they continue to rise in developing nations.

As of 2002, approximately 5.5 trillion cigarettes are produced globally each year and are smoked by over 1.1 billion people or greater than one-seventh of the world population. While smoking rates have leveled off or declined in developed nations, they continue to rise in developing parts of the world. Smoking rates in the United States have dropped by half from 1965 to 2006 falling from 42% to 20.8% of adults.In the developing world, tobacco consumption is rising by 3.4% per year.

CLASSIC CIGARETTES

Classic Filter Kings is a premium brand of cigarettes launched in India by ITC Limited in 1979. At the time the Indian cigarette market was mainly dominated by plains and Regular Size Filter Tipped, with king size contributing barely 5% of the total market.

The Classic cigarette was initially 83 mm in length and 24.55 mm in diameter with the pack. Later ITC increased the cigarette length from 83 mm to 84 mm, the diameter increased from 24.5 mm to 24.75 mm. Imported cigarette paper, better board and therefore better pack quality, embossed name and crest added to the value of the brand.

The years 1993-95 saw the growth of Classic from 1.5 mnc to 5.4 mnc. This was possibly a result of the brand’s enhanced international appearance. And Classic took further strides towards internationalism with the introduction of Classic Milds and Classic Menthol. In 1996, Classic Ultra Milds was added to the Classic family.

The trademark was promoted not only by launching new variants but also through designing new packaging.

List of Variants

Classic Full Flavour Classic Milds Classic Ultramilds Classic Menthol Classic Riviera Whiff Classic Taste Treasures Classic Kafeato

Launch and promotion

Classic advertising began fairly quietly through the name and the line ‘a contemporary classic. The brand was old world, Anglophile in its appeal and was marketed through the use of etchings from the Raj era, in keeping with the brand line. In the early years of its advertising this was fairly successful, since no one else owned that concept.

However as time moved on and tastes changed, it became necessary to encourage more direct interaction between the consumer and the brand, with an eye to perpetuating the brand story in a more contemporary mould.

The new Classic advertising was the answer. Started in 1992, this showed polo visuals with the headline, ‘Discover a passion.’

Sponsorships, carefully chosen, covered the premium sports of racing and golf. These were targeted at the Westernised affluent smoker of the SEC A category. Music was a later addition beginning from 1996/97.

Classic Today

The brand’s current positioning of Contemporary Style has been arrived at to make a statement about being in sync with modern trends. The horse imagery has been retained. The brand has also extended the music platform into modern forms of music like Lounge and Hip Hop.

The Study

The study is undertaken in order to understand the consumer perception of Classic Cigarettes in the market.

The collection of Data is Through Primary survey method of Data Collection in the region of Navi Mumbai.

Sample Questionnaire is attached overleaf followed by Data Analysis and Findings.

Sample Size: 50

Smokers: 35

QUESTIONNAIRE

A STUDY ON BRAND PREFERENCE OF CLASSIC CIGARETTES

* Required

Q.1 Do you smoke ? *

Yes

No

Q.2 How many you Cigarette do you consume in a day ? *

1-3

3-5

5-7

More then 7

Q.3 Which Brand(s) do you smoke ? * (if you do not smoke classic cigarette, please skip to Q.12)

Classic

Malboro

Gold flake

Benson & Hedges

India Kings

Navycuts

Others

Q.4 Which variant of Classic do you Smoke ? *

Regular

Mild

Ultra Mild

Menthol

Q.5 Are you brand loyal ? *

Yes

No

Q.6 What factors influence your decision of buying Classic Cigarette ? *

Price

Quality

Availability

Style Quotient

Influence of Peer Group

Q.7 Classic is easily available wherever you go. *

1 2 3 4 5

Strongly Disagree Strongly Agree

Q.8 Classic is easily affordable across your Peer Group ? *

1 2 3 4 5

Strongly Disagree Strongly Agree

Q.9 How do you find the Signature taste of Classic Cigarette ? *

Exclusive

Distinct

Indifferent

Ambigous

Q.10 What do you think about the Quality of Classic Cigarette ? *

1 2 3 4 5

Worst Best

Q.11 What changes will you like to see in Classic ? *

Change in Packaging

Stronger Nicotin Content

Better tatse

Refined Filter

Increase in Size

Less NIcotin Content

12 Name 13. Age as on 2012

Q.14 Gender ? *

Male

Female

Q.15 Occupation ? *

Student

Professional

Service

Business

Others

Q.16 Monthly Income ? *

less then 10,000

10,000-20,000

20,000-30,000

More then 30,000

Q.17 Your average Monthly Spend on Cigarettes ? *

Less then Rs 500

Rs 500- Rs 1000

Rs 1000- Rs1500

Rs 1500- Rs 2000

More then 2000

DATA ANALYSIS & FINDINGS

The data gathered by 40 respondents out of whom 25 consumes Classic Cigarettes.The following is the analysis of the data gathered through the survey.

Do you smoke ?

35

15

Do You Smoke?

YesNo

Sales

1st Qtr2nd Qtr3rd Qtr4th Qtr

Do You Smoke

YesNo

How many Cigarettes do you consume in a day?

1 - 3 3 - 5 5 - 7 More Than 702468

10121416 15

57

8

Frequency

Frequency

Which Brand(s) do you smoke ? * (if you do not smoke classic cigarette, please skip to Q.12?

Classic

Marlboro

Benson & Hedges

Gold Flake

India Kings

0 5 10 15 20 25 30

Brand

Brand

Which variant of Classic do you Smoke?

8

3

12

2

Classic Variant

RegularUltra MildMildMenthol

Are you brand loyal?

YesNo

0

5

10

15

20

25

30

30

5

Brand Loyalty

What factors influence your decision of buying Classic Cigarette?

2

8

5

6

4

Influencers

PriceQualityAvailabilityStyleQuotientInfluence of Peer Group

Classic is easily available wherever you go.

Strongly Agree Agree Neutral Disagree Strongly Disagree

02468

1012141618

18

53

0 0

Availability

Classic is easily affordable across your Peer Group?

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

2

4

6

8

10

12

12

43

5

1

Affordability

How do you find the Signature taste of Classic Cigarette?

12

8

31.2

Signature Taste of Classic

ExclusiveDistinctIndifferentAmbiguous

What do you think about the Quality of Classic Cigarette?

12

814

Quality

WorstBadNeutralGoodBest

What changes will you like to see in Classic?

Change In Packaging

Strong Nicotine Content

Better Taste

Refined Filter

Increase In Size

Less Nicotine Content

0 1 2 3 4 5 6 7 8

2

4

5

7

2

5

Expected Changes

Age Group Of Demographics

18

2

4

1

Age Group

18-2424-3232-5050 & Above

The Findings

The Major findings that came across while analysing and interpreting the data gathered are as follows:

Out of the Sample Size of 50 people, 35 are smokers amongst which 25 consume Classic by ITC Ltd.

Most of the Classic consumers are Heavy Smokers.

Classic is easily available to its target market group readily across all locations.

Quality & Influence of peer group attract them towards buying Classic.

Classic is easily affordable by the masses it is meant for.

Consumers find the signature taste of Classic Exclusive & Distinct.

The quality of Classic is one of the most essential attributes for its consumers and they are a highly satisfied lot.

There are certain improvements that the consumers of Classic would like to see in their favourite brand such as:

Change in Packaging Better Taste Refined Filter ( cotton bud ) Less Nicotine Content

The Consumers of Classic are Highly Brand Loyal and unwilling to shift to any other brand.

The company understands that not much promotion can be done in order to increase the customer base, so they focus on customer retention by providing them the best quality at the most suitable price range.