Surya Nepal Private Limited-CigarettePresented by:

Bhoj Raj Kafle (153)

Prawesh Baral (157)

Pushpa Poudyal (159)

Rajan Nhemaphuki (160)

Rojan Shrestha (163)

IntroductionBackground• Surya Nepal Private Limited (SNPL) is an Indo-Nepal-UK joint venture, which

started operations in Nepal in 1986.• Corporate vision “Enduring value for all stakeholders”• Maintain the environmental policy, EHS policy and Quality policy to be

leading industries in Nepal.

Logo• SNPL logo reflects the passion for quality and

excellence to create enduring value for all its stake holders.

• The mountain stands for its deep roots in Nepal and symbolic of our position as the nation’s foremost professionally managed company.

• The rising sun stands for leadership as well as our passion for excellence.

Surya Nepal Pvt. Ltd.

Tobacco Division

Garment Division Agarbatti Safety

Matches

Competitors• Janakpur Cigaratte Factory: - Yak, Deurali, Gaida, Kasturi and Lahure• Gorkha Lahari Pvt. Ltd. : - Nepal Gold Flake, Sahara filter, Bahar Special plain,

Bigul plain, Brown filter kings, Gorkha filter, Style filter, Winner filter and Action kings.

Consumer Segment

Geographical Demographic Psychographic Behavioral

Geographical Segmentation Urban Areas: - Surya Classic, Surya Luxury Kings, Surya Light and Shikhar Rural Areas: - Khukuri, Pilot, Bujili and Chautari

Demographic Segmentation Age: Teenage, mature adult and old age people. Gender: - All gender Generation: -

Bujili, Chautari and Pilot old generationShikhar youth above 20 and below 25.

Social Class: -Surya Classic and Surya Luxury Kings premium segmentKhukuri general segmentBujili, Chautari and Pilot price sensitive segment

Psychographic Segmentation Personality: -

Shikhar light smokers Khukuri legendary smokers.

Psychographics: - Usually preferred during frustration and anxiety

Behavioral Segmentation Usage Rate:

Light smokers Surya Lights, Surya LuxuryHeavy smokers Khukuri, Pilot, Gudang Garam

User Status: Khukuri for regular usersShikhar Menthol and Surya Polar ice for ex-users

Development of the Product• Surya Nepal Pvt. Ltd. is a joint venture between BAT (British American

Tobacco), ITC Limited and Nepalese entrepreneurs.• Established in 1987.• Initial Product Naulo and Bijuli• Later it is diversified into Surya, Shikhar, Khukuri and Chautari. • Premium segment 95% of the total market share

High segment 82% to 85% of the total market shareLower segment 60% of the total market share

• It has the largest and strongest distribution network coverage in amongst all the FMCG companies in Nepal

StarsSurya Luxury Kings

Surya LightsShikhar

Khukuri Filter

Question MarksShikhar MentholShikhar LightsSurya Classics

CowsPilot Filter

Bujili

DogsChautari

Relative Market ShareM

arke

t Gro

wth

Rat

e

High

High

Low

Low

Boston Consulting Group (BCG) Matrix of Surya Nepal Cigarette

PEST• Political Factor:

– Tax– Ban on Ad.– Warning/Graphic warning.– Ban on sales of cigarette to under 18 & to pregnant

woman.

Economic Factors• Existing market rate and pricing policy.• Propensities to spend on cigarettes.• High import duties.

Social Factor• Tradition of Hukka, Surpa and Chilimey.• Smoking cigarette is treated bad habit.• Smoking by woman is considered as untolerable.• Hesitance to talk about it and consume it.• Anti-smoking public awareness programme.

Technology• Customer’s needs and preferences.• Quality :Flavor, Filter, nicotin level.• Machining time.

SWOT Analysis

Brand LoyaltyPrice

Few competitorsInnovation

Distribution

Launch of new brandsNew filter brands

PremiumHuge capital

Weaknesses

Opportunities

Monetary and Fiscal PolicyCompetitors

WHOEmployee resistance

Threats

Strengths

External Factor

Internal Factor

Marketing Strategy

A. Customer Value Proposition

Variety in flavor and content of nicotine level of different SNPL cigarette product.

Targeted different category of people with different products. Constantly pursue newer and better processes, products, services and

management practices

“We are always customer-focused and will always strive to surpass customer expectations in terms of value, product quality and satisfaction.”

“We are always customer-focused and will always strive to surpass customer expectations in terms of value, product quality and satisfaction.”

B. Positioning: - • One of the pioneers in cigarette factory in Nepal.• It has over 70% to 75% of the total market share of the

cigarette industry in Nepal in terms of value.Surya Luxury Kings has been positioned on the platform of “inspirational leadership”. Surya Lights was launched in 2001 and is the largest lights brand in the country today.

Surya is premiumShikhar is positioned on “Safalta ko Life”. Khukuri is positioned as “Sahashi ko ek matra chahana”.

• Surya Nepal used its brand made from Cigarettes industry & made the company diversified into globalization.

COCO CHANEL

In order to be irresplacable,one must always be different .

Why to be different?

C. Differentiation: - • Determined to find out the customer taste and requirements• Since after lauching Surya luxury kings, Shikhar filter kings, Khukuri

and Chautari, it has adopted product development strategy and launched product like Surya light, Shikhar light, Shikhar Menthol and so on.

• The SNPL is still making an effort to launch new product for the market place to surprise the consumer of cigarettes with new taste of cigarette.

Marketing Mix• Product• Price• Promotion• Place

ProductA. Brand B. Sizes:

According to Size of Packet: - Small: - 10 cigarettes per packet Large: - 20 cigarettes per packet According to Size of Filter: - Regular Size: - Filter length = 69 mm King Size: - Filter length = 84 mm

Price

S.No. Product Category Price for Large Size (Rs.)

1 Surya 24 Carat Kings 160

2 Surya 24 Carat Lights 160

3 Surya Luxury Kings 150

4 Surya Lights 150

5 Surya Polar Ice 150

6 Shikhar Filter Kings 110

7 Shikhar Lights 110

8 Shikhar Menthol 110

9 Shikhar Special Filter 80

10 Khukhuri Filter 65

11 Bijuli Filter 35

12 Pilot Filter 50

13 Chautari Filter 35

14 Bujuli Plain 25

15 Chautari Plain 25

PromotionA. Public Relation

SNPL Asha: “Creating enduring value through community empowerment”

SNPL Khelparyatan: “Creating enduring value through sports and tourism”

SNPL Prakriti: “Creating enduring value through environment preservation”

SNPL Suswasthya: “Creating enduring value through community health”

PlaceA. Distribution Channel: • Comprises over 5,000 wholesalers, and over 85,000 retailers.• Competency to provide timely delivery of the product through the

presence of the depots which makes the company efficient and effective to deliver the product.

Thank You