[SMT. K. G. MITTAL INSTITUTE OF MANAGEMENT, IT & RESEARCH]

SUMMER PROJECTON Study of Marketing Research on Four Square Cigarette by IMRB InternationalCOMPLETED AT IMRB INTERNATIONAL

UNDER THE GUIDANCE OF

PROF: ANNIE JOSEPH (MMS FACULTY)

SUBMITTED BY

Ankush. B. Chougule.

MMS 2011-13 SEMESTER III

SPECIALIZATION: MARKETING Role No:-09

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE M.M.S. PROGRAMME FOR THE YEAR 2011-2013DECLARATION

I, Mr.Ankush.B.Chougule.hereby declare that this project report titled Study Of Marketing Research On Four Square Cigarette By IMRBis an original piece of work carried out by me during the summer internship period from May 2, 2012 to June 30, 2012.The information has been collected from genuine and authentic sources.

The work has been submitted in partial fulfillment of the requirement of the Master of Management Studies, University of Mumbai under the guidance of Prof.Annie Maam is my original my work and the conclusion drawn therein are based on the material collected by myself.

Due credit is extended on the work of literature by endorsing it in the bibliography as per the prescribed format.

.

Date:Place: Mumbai Ankush B.Chougule.

ACKNOWLEDGEMENT

My Summer Internship program at IMRB International (Dadar, Mumbai Branch) has been a quantum leap in terms of familiarization of management concepts, hands on experience, acclimatization ofcorporate culture, sincerity, diligence, responsibility and above all self-confidence.At the very onset, must express my profound gratitude to Bank of India for giving me an opportunity to be a part of their esteemed organization.My deep sense of gratitude to Field Manager, Mr.Dhananjay Maniwade for their colossal shore up throughout my training phase of summer internship.We express our sincere thanks to our respected director Ms. B. Dsilva, Maam, for availing us this great opportunity to learn vital element of this corporate world through summer internship

I would like to thank my mentors Prof.Annie Maam, for providing me valuable insights during the entire project work and for their indefatigable cooperation at every possible step of my endeavour.Very special thanks to Mr. Ramesh sir for his constant support and guidance throughout the training period. I would also thank the staff at IMRB International for their continuous support at every stage of my project.I would like to thank my college Smt.K.G.Mittal Institute of Management, I.T,& Research and its faculty members for giving me an exposure to the corporate world.Besides, I would also like to thank all my colleagues, friends and family for being the pillars of immense support and strength.

Ankush B Chougule.

TABLE OF CONTENTChapter no. Title Page no.

1Executive summery6

2Introduction 8

3Research objectives10

4Overview of marketing research12-13

4.1 Introduction 12

4.2 History 12

5Company profile (IMRB)

5.1 Introduction15

5.2 Company structure 16

5.3 IMRB in India and Abroad 18

5.4 IMRB Groups 18

5.6 IMRB Unites at International level20

5.7 Services offer by IMRB 23

5.8 Sectors where IMRB research 23

5.9 Syndicate offers 24

5.10 How IMRB different 25

5.11 Achievements and goals, Mission, vision 26

5.12 IMRB Clients and competitors 26

5.13 SWOT analysis 28

5.14 Organizational structure 29

6Brief profile of Tobacco Industry 31-40

6.1 History of Tobacco 31

6.2 Indian Tobacco History 32

6.3 The global tobacco market 32

6.4 Role of Tobacco Indian 34

6.5 Contribution of Major companies in India 36

Chapter no. Title Page no.

6.6 Benefits of Tobacco Industry to Government 35

6.7 About Godfrey Phillips India 37

7Theoretical background of marketing research 42-

7.2 Introduction 42

7.3 Types of research 42

7.4 Types of methods/Techniques 44

7.5 Process of Marketing research 45

7.6 Sampling 47

8Research Methodology 54-58

Introduction 55

Problem of statement 55

Scope of study 55

Limitation of study 56

Problems regarding to the four square cigarette 56

Research design 57-58

9Analysis of information 59-74

10Annexure 75-85

11Conclusion

11.1Findings 87

12Recommendations 89

13Assessment of the Internship 90

14Bibliography 91

CHAPTER-1EXECUTIVE SUMMARY

EXECUTIVE SUMMARYMarketing research is "the function that links the consumers, customers, and public to the marketer through information, information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyses the results, and communicates the findings and their implications.It is the systematic gathering, recording, and analysis of qualitative and quantitative data about issues relating to marketing products and services. The goal of marketing research is to identify and assess how changing elements of the marketing mix impacts customer behaviour. The term is commonly interchanged with market research; however, expert practitioners may wish to draw a distinction, in that market research is concerned specifically with markets, while marketing research is concerned specifically about marketing processesThe task of marketing research (MR) is to provide management with relevant, accurate, reliable, valid, and current information. Competitive marketing environment and the ever-increasing costs attributed to poor decision making require that marketing research provide sound information. Sound decisions are not based on gut feeling, intuition, or even pure judgment.Marketing managers make numerous strategic and tactical decisions in the process of identifying and satisfying customer needs. They make decisions about potential opportunities, target market selection, market segmentation, planning and implementing marketing programs, marketing performance, and control. These decisions are complicated by interactions between the controllable marketing variables of product, pricing, promotion, and distribution. Further complications are added by uncontrollable environmental factors such as general economic conditions, technology, public policies and laws, political environment, competition, and social and cultural changes. Another factor in this mix is the complexity of consumers.

CHAPTER-2INTRODUCTION

INTRODUCTIONMarket research is any organized effort to gather information about markets or customers. It is a very important component of business strategy. The term is commonly interchanged with marketing research; however, expert practitioners may wish to draw a distinction, in that marketing research is concerned specifically about marketing processes, while marketresearch is concerned specifically with markets.Traditionally, marketing researchers were responsible for providing the relevant information and marketing decisions were made by the managers. However, the roles are changing and marketing researchers are becoming more involved in decision making, whereas marketing managers are becoming more involved with research. The role of marketing research in managerial decision making is explained further using the framework of the "DECIDE" model:The DECIDE model conceptualizes managerial decision making as a series of six steps. The decision process begins by precisely defining the problem or opportunity, along with the objectives and constraints. Next, the possible decision factors that make up the alternative courses of action (controllable factors) and uncertainties (uncontrollable factors) are enumerated. Then, relevant information on the alternatives and possible outcomes is collected. The next step is to identify and select the best alternative based on chosen criteria or measures of success. Then a detailed plan to develop and implement the alternative selected is developed and put into effect. Last, the outcome of the decision and the decision process itself are evaluated. Market research is a key factor to get advantage over competitors. Market research provides important information to identify and analyze the market need, market size and competition.Market research, includes social and opinion research is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or Marketing research does not only occur in huge corporations with many employees and a large budget. Marketing information can be derived by observing the environment of their location and the competitions location. Small scale surveys and focus groups are low cost ways to gather information from potential and existing customers.

CHAPTER-3RESEARCHOBJECTIVES

RESEARCH OBJECTIVES

1) To study of marketing research process by IMRB2) To study the brand image, brand awareness of Four Square macro polo cigarette.3) To study of current market situation of tobacco (cigarette) industry.4) To study of consumer buying behavior of the Cigarette users.

CHAPTER-4OVERVIEW OF MARKETINGRESEARCH

Introduction:-Market research includes social and opinion research is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight.For successful implementation of marketing process, marketing research is of upmost necessity. Consumer oriented and competitive markets have further increased the importance of marketing research. Marketing research provides valuable information which provides basis for sound and accurate decisions. In other words, top management is greatly facilated in the process of decision making with the help of marketing research. Marketing research has brought the producer and the ultimate consumer very close to each other by crossing the walls raised by marketing intermediaries in between. It studies in detail the buying habits of consumers, their taste and preferences, needs, opinions and reaction etc.Marketing research provides valuable information with regard to new developments and innovations brought about by rapid growth of science and technology. On account of these developments, prompt adjustments and changes in various policies viz, advertising, sales pricing and distribution etc., have got to be made so that a business concern can keep itself up-to-date in the dynamic market place.History of marketing research:-The idea of marketing research was developed in the late 1920s by a man named Daniel Starch. This is about the same time that advertising was introduced in the United States. At that time, copywriters would write what they thought an ad should be, publish the ad, and then hope that readers would act upon the information provided.

During the early 1930s Daniel Starch developed the theory that effective advertising must be seen, read, believed, remembered, and then acted upon. Soon after, he developed a research company that would interview people in the streets, asking them if they read certain publications. If they did, his researchers would show them the magazines and ask if they recognized or remembered any of the ads found in them. After collecting the data, he then compared the number of people he interviewed with the circulation of the magazine to figure out how effective those ads were in reaching their readers. Thus surveying or marketing research was born.As time went on, many marketing research companies began to emerge and began following Starchs example and worked to improve his techniques. A man by the name of George Gallup developed a rival system that was known as the aided recall which prompted people interviewed to recall the ads seen in a publication, without actually showing them the ads. This rival system was later used to measure the effectiveness of radio and television advertising.

In the late 1980s a man named Ronald Lindorf founded what would be the largest marketing research companies in the United States, Western Wats. The focus of Western Wats was to leverage the current technology of W.A.T.S. telephone lines to conduct survey research. There was no longer a need to interview people on the streets or to organize and conduct focus groups. A representative in a call canter could collect all of the data desired. This greatly increased the number of surveys collected each year and again, improved the marketing research model tenfold.Over the last 5 to 10 years marketing research has taken another great leap in terms of how it is collected. Yes, it is still collected via survey research; however, it is mostly collected via surveys over an internet connection.

CHAPTER-5COMPANY PROFILE

COMPANY PROFILE (IMRB INTERNATIONAL)

TypeSubsidiary

Founded1970

Founder(s)Hindustan Thompson Associates

HeadquartersMumbai, Maharashtra, India

ServicesResearch, Business Consulting and Survey

Employees1200

ParentKantar Group

WebsiteOfficial Website

www.imrbinternational.comIntroduction:-IMRB was set up in 1970, a full 37 years after BMRB was set up in UK by JWT.Established withover three decades of marketresearch experience, IMRB International isa pioneer in Indiain various research areas. Associated with a group of international marketcompanies such as the British MarketResearch Bureau (BMRB) and Millward Brown International, IMRB International operates out of thirteen cities in India andhas associate offices in Sri Lanka,Bangladesh and Nepal. The 500member strong IMRB International promiseshigh quality conceptualization, strategic thinking, execution and interpretation skills on all its clients' research needs. In 1996, IMRB International managed 2,500 projects and 4,000,000interviews.They are a part of WPP which is formed by Sir Martin Sorrell in 1985. WPP is a 8.68 billion; revenue company with 138,000 employees in 2400 offices across 107 countries. Kantar is WPPs research, insight & consultancy network. Kantar was founded in 1993, isnow the worlds fourth largest research conglomerate. It boasts of $1.7 billion worth of revenue with offices in 160 offices across95 countries.IMRB International is the only research company in India today that offers the entire range of research based services to its clients. IMRB International's specialized areas are consumer markets, industrial marketing, business to business marketing, social marketing and rural marketing. IMRB International is the market research wing of JWalter Thompson (JWT) - the leading advertising agency in India. JWT in turn belongs to the Kantar Group, which in turn is a part of the WPP Group - the largest advertising group in the world.Company Structure:-IMRB is headquartered in Mumbai, India. Its parent company is Hindustan Thompson association, which in turn is owned by Martin Sorrells WPP Group plc. Within WPP, IMRB is aligned with the Kantar Group, an umbrella network of global market research companies that together account for over $2 billion in revenues and form the worlds second biggest market research conglomerate. December 2011 a leading market research firm IMRB declared Ahmadabad as the best mega-city to live in (compared to India's other mega-cities)

In India, IMRB International operates out of its five full service offices in Ahmadabad, Mumbai, Delhi, Kolkata, Chennai and Bangalore and is supported by 15 other regional centers for collection of survey information. Overseas, IMRB functions through its associates -AMRB-MENA in the Middle East and North Africa, with offices in Algiers, Dubai, Jeddah, Casablanca and Cairo; LMRB, with offices in Colombo and Sirius, headquartered in Dhaka. IMRB is currently headed by Thomas Puliyel, a market researcher with over thirty years of experience. As the oldest market research company in India, it has served as the training ground of many industry leaders including Dorab Sopariwala, Ranjit Chib and Meena Kaushik, who went on to found their own companies.

Kantar Group:-The Kantar group was established in 1993, a London based holding company responsible for WPP's worldwide information and consultancy interests. Kantar is the world's largest survey organization and is ranked 3rd overall. It comprises three global research businesses - Research International, Millward Brown and Kantar Media

Millward Brown International (MBI):

IMRB International is the licensee for all Millward Brown products in South Asia (India, Pakistan, Sri Lanka, Nepal, and Bangladesh).Walker Information Global Network (WIGN) Customer Satisfaction Management & Measurement (CSMM), one of the specialist units of IMRB International, is an exclusive-member of Walker Information Global Network (WIGN) in the Indian subcontinent. Walker Information Global Network is the only international partnership dedicated exclusively to stakeholder measurement and management. CSMM uses proprietary tools developed by Walker Information, the recognized pioneer in customer satisfaction.

Research and four regional ones - BMRB International, IMRB International, Goldfarb and Winona, Each is a leader in its own area of expertise orspecialization. There search studies in over 130 countries.

Branches in India:-IMRB International has been offering specialized research services for around 4 decades to clients in India and overseas. IMRB International operates out of its five full service offices in Mumbai, Delhi, Kolkata, Chennai and Bangalore and is supported by 15 other regional centers for collection of survey information.1. Kolkata1. Mumbai1. Ahmadabad 1. Chennai1. Bangalore1. Delhi Branches at Abroad:-1) Singapore 10) Algeria2) Malaysia 11) Pakistan3) Korea 4) Bangladesh 5) Shri-lanka 6) Nepal.7) Dubai.8) Saudi-Arabia9) LondonIMRBS GROUPS

IMRB Lineage:-IMRB International is a division of Hindustan Thompson Associates (HTA) in India. IMRB is a member of the Kantar Group, one of the world largest researches, information.WPPis one of the world's largest communications services groups, employing 141,000 people in own and associate companies, working in over 2,400+ offices in 107 countries. WPP comprises leading companies in:

Advertising Media Investment Management Information, Insight & Consultancy Public Relations and Public Affairs Branding & Identity Healthcare Communications Direct, Promotion & Relationship Marketing Specialist Communication.KantarGroup:-Kantar is one of the world largest research, information insight and consulting networks and part of the WPP Group. Kantar helps clients make better business decisions through a deeper understanding of their markets, their brands and their customers. Kantar brings together a diverse group of outstanding information, insight and consulting companies about 20 business operating in 70 countries worldwide. Each of these business is an expert in its field and can work either individually or together to help clients address business issues in a holistic and strategic way.Walker Information Global Network (WIGN):-Walker is a consulting firm specializing in customer strategy. Helping business for more than 65 years, Walker's diverse team of consultants provides tailored, comprehensive solutions to help companies achieve their business objectives and grow shareholder value. Walker specializes in customer loyalty and related customer strategies, including innovation approaches to segmenting, valuing, obtaining serving, and retaining customers, Walker works with some of the world's most influential businesses as well as emerging organizations of all sizes. The walker global network, work with CSMM, a specialist unit of IMRB International, to provide a unique combination of local knowledge and global reach - all aimed at managing stake holding relationship and improving business performance.Associates and Affiliate companies:-IMRB International has acted as a catalyst in the development of market research infrastructure in neighbouring countries. We work with associate companies in (Sri-Lanka Market Research Bureau) and in the Middle East (Arab Market Research Bureau), and through affiliates in Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Egypt, Tunisia, Nepal, Pakistan, Bangladesh and Myanmar.Yankee GroupYankee Group is the expert in navigating the global connectivity revolution. For more than 35 years, Yankee Group's strategic vision, research and analysis, quantified market intelligence and credible advice have been guiding innovation and empowering our clients to make critical business decisions. Headquartered in Boston, Yankee Group has a presence throughout North America, Europe, the Middle East, Africa, Latin America and Asia-Pacific. Yankee Group has partnered with IMRB to be their exclusive representative for India. This strategic partnership between IMRB International and Yankee Group will bring in an international perspective in the fields of telecommunications & wireless/mobile, consumer, media and entertainment and IT hardware, software and services.

IMRB UNITS AT INTERNATIONAL LEVELAbacus business unit ABS:-Abacus Business Operations: ABO is an ISO 9001:2008 certified specialist unit of IMRB International. It has the largest Custom research fieldwork and data collection capabilities in the country. With over 200 full time employees managing and supervising the work of over 4000 interviewers on any given day, we conduct over

AB Abacus market analytical:-Abacus market analytical unit offers a wide range of services to all the research units in IMRB. These include data processing, charting, statistical analysis, database management and updation, software development and testingAbacus ResearchAbacus Research looks after the domestic and International Field and tab business. They service Clients and Research Agencies which have their own Research set up and only want the data collected and clean data sent to them. Abacus Research has a team of expert Project Management Executives led by a seasoned and highly experienced Operations Director. This team also has the experience of managing the largest number of automotive clinics and have a protocol set up for the same. Abacus Research also runsFlexiBus a study which gives Clients the advantage and of quick turnaround on a few critical questions and the flexibility to study the Target Group in market.

BIRDBIRD the Business & Industrial Research Division of IMRB International, is the market research and consultancy division servicing B2B and industrial markets. For catering to technology markets including IT hardware, software & services and telecommunication.BSG:-The Brand Science Group (BSG) is a new unit at IMRB International that primarily focuses on Brand and Communication Research. Over the last few years IMRB Brand Science has been working towards the development of various tools that would help us get a better understanding of the Brand and its communication in an Indian Context.

CSMM:-Customer Satisfaction Management & Measurement (CSMM) is an independent, specialist unit of IMRB International. CSMM is an exclusive member of the Walker Information Global Network (WIGN) in the Indian subcontinent.MEDIA AND PANEL GROUP:-Media and Panel is an independent, specialist unit of IMRB International, incorporated in 1992. MPG handles different kinds of research both syndicated and customized. MPG has 4 different verticals: Consumer Panel (MarketPulse), Retail Unit, Media Unit, MindtechSoftwareand Systems.PQR:-Probe Qualitative Research is one of India's leading qualitative research groups and has executives specially trained in India and overseas in qualitative research methods. Drawing on learning from, ethnography, psychology and anthropology. It has created an array of validated tool-kits.QUANTITIVE RESEARCH IMRBInternational's Customised Quantitative Research Division offers custom research solutionsusing quantitative methods to clients in India and abroad through its five offices in Mumbai, Delhi, Kolkata, Bangalore and Chennai.

SERVICES OFFERS BY IMRB:-Advertising and Promotion researchCorporate and Employee researchProduct and Packaging research

B2B and Industrial researchCustomer satisfaction researchStrategic market research

Brand researchMystery Shopper Insights (MSI)

Channel and retail researchPricing research

SECTORS WHERE IMRB RESEARCH:-Agriculture/Agro-productsDistribution/Retail TradeFinance /Banking /InsuranceIT Hardware andSoftware practiceSocial and Rural

AlcoholE-governanceFMCGLogistics andTransportationSteel and Metals

AutomotiveEducation and Training

Health CareMedia andEntertainmentTelecom

Chemicals andPetroleumEnergy andEnvironmentIndustry andBusinessProcessed FoodTobacco

Construction and Building EngineeringSectorInternetReal EstateTravel and toris

SYNDICATED OFFERS:-sHomemaker Bioscope: - A decision support system for a comprehensive understanding of Homemakers:-The women of today are more educated, confident, determined, demanding and having high aspirations. About 30-35 per cent of the estimated 480 million jobs are performed by women and 54% of television advertising is targeted towards housewives making them the most targeted and sought after Target Group. Presenting our new syndicated offering: HomeMaker Bioscope:a decision support system for a comprehensive understanding of HomeMakers.TGI INDIA - A single source marketing, communication and planning tool.IMRB International is launching Target Group Index (TGI) in India, an international product from Kantar Media Research (KMR) - WPP's specialist global research agency offering media research services.

National Food Survey:-The National Food Survey is a comprehensive study on food habits and consumption across urban India. Over the past two decades NFS has completed 6 rounds with the last one, NFS VI: The Convenience Foods Handbook - 2 conducted in December 2010.

IMRB KidScan:-KidScan is a syndicated study launched by IMRB International as an attempt to understand the Indian kids world and their interaction with their environment.

STAR - Small Town and Rural:-Rural India contributes 70% of Indias population, 56% of income, 64% of expenditure and 33% of savings. With money being no longer a differentiator, a host of other factors.

3G Mobile Services in India:-The long awaited 3G spectrum auctions have finally happened and the telecom industry is in the cusp of an exciting change.

Telecom Report:-This report would give a detailed analysis of the emerging telecom market in India and would cover the trends in Basic Telephony (including WiLL), Cellular (with a focus on the fourth operator) and Long Distance.Internet in India:-Originally released in 1998, this series of syndicated studies on the Internet market is one of the most exhaustive reports available on the Indian Internet Market.ITOPS:-A Half yearly track of the Indian PC, Networking and Software market. This report gives details on the PC / LAN / Printers / UPS / Networking Products / Soft wares / Internet Penetration in terms of their Installed Bases, Market Sizes, etc.HOW IMRB ARE DIFFERENT?They add value to clients - real value. They develop a learning culture that fosters innovation and IMRB also contribute to academia and policy makers.IMRB have developed a sustainable working environment that is good and fair to us and our clients. They have the largest team of researchers and analysts with around 4 decadesof leadership in the region, 26 offices in 12 countries each of them equipped with specialized units by research methods and industry sector and 4.4 million customer interactions every year.

IMRB ACHIVEMENTS AND GOALS:-IMRB has demonstrated its vision and leadership in the Indian market by establishing several industry wide measurements and rating systems. Notable amongst these is our pioneering role in establishing Indias first TV rating system (TAM) and the creation of social economic classification (SEC) system in India.We have won several prestigious awards. Amongst them the most noteworthy being the MR Agency of the year from 2005-2009. We have presented cutting edge research for several years at international forums including ESOMAR and won awards for our efforts. We have also been awarded the WPPs Atticus award jointly with JWT

Mission:-1. Client service1. Empowered employee1. Innovative research1. Strategy and cost effective Vision:-1. To sustain in Rank 1IMRB CLIENTS IN INDIA:- Bharti Group Cadbury, Ford Group, Frito Lay, GlaxoSmithkline, Heinz, Godfrey Phillips, Indian Airlines, ITC Group, Millward Brown, Nestle, Pepsi Group, Reckitt Benckiser, Research International, Unilever Group, VST TVS Motors,

COMPETITORS:- 1. Market pulse1. Delphi research services1. Protect India.1. Diskha research.1. Sampling research1. TNS India

SWOT ANALYSIS OF IMRB INTERNATIONALStrengths:-

Weakness:-1. Sometimes not providing proper data of the clients.1. Delay in payment of freelancer.1. Companies dont have any canteen facilities or employees.Opportunities:-1. New companies1. More demand1. More experience1. Overseas branchesWeakness:-1. Market research system getting online.

Organization structure of IMRB International:-

CHAPTER-6BRIEF PROFILE OF TOBACCO INDUSTRY

BRIEF PROFILE OF TOBACCO INDUSTRY

History of Tobacco industry:-Tobacco has a long history in the Americas. The Mayan Indians of Mexico carved drawings in stone showing tobacco use. These drawings date back to somewhere between 600 to 900 A.D. Tobacco was grown by American Indians before the Europeans came from England, Spain, France, and Italy to North America. Native Americans smoked tobacco through a pipe for special religious and medical purposes. They did not smoke every day.Tobacco was the first crop grown for money in North America. In 1612 the settlers of the first American colony in Jamestown, Virginia grew tobacco as a cash crop. It was their main source of money. Other cash crops were corn, cotton, wheat, sugar, and soya beans. Tobacco helped pay for the American Revolution against England. Also, the first President of the U.S. grew tobacco.By the 1800's, many people had begun using small amounts of tobacco. Some chewed it. Others smoked it occasionally in a pipe, or they hand-rolled a cigarette or cigar. On the average, people smoked about 40 cigarettes a year. The first commercial cigarettes were made in 1865 by Washington Duke on his 300-acre farm in Raleigh, North Carolina. His hand-rolled cigarettes were sold to soldiers at the end of the Civil War.It was not until James Bonsack invented the cigarette-making machine in 1881 that cigarette smoking became widespread. Bonsack's cigarette machine could make 120,000 cigarettes a day. He went into business with Washington Duke's son, James "Buck" Duke. They built a factory and made 10 million cigarettes their first year and about one billion cigarettes five years later. The first brand of cigarettes were packaged in a box with baseball cards and were called Duke of Durham. Buck Duke and his father started the first tobacco company in the U.S. They named it the American Tobacco Company.

Indian History:-In India the tradition of chewing tobacco has been from age old centuries. Around 48% is in the form of chewing tobacco out of the total tobacco produced in the country, were 38% as bides, and only 14% as cigarettes. These bidis snuff and chewing tobacco (such as gutka, khaini and zarda) form the bulk (86%) of India's total tobacco production. Production of cigarettes is 90% of total production of tobacco related products in the rest of the world. In India Tobacco is an important commercial crop grown. Tobacco production occupies the third position in the world with an annual production of about 725 Million Kgs. The production has different types grown like , flue-cured tobacco, country tobacco, burley, bidi and rustic. As an exporter of tobacco, India ranks sixth in the world next to Brazil, China, USA, Malawi and Italy.Indian tobacco and tobacco product earn a whopping annual sum of about Rs.10271 crores to national exchequer by the way excise revenue, and Rs.2022 crores by way of foreign exchange. In India the per capita consumption pattern of cigarette is merely a tenth of the world average. The unique tobacco consumption of tradition and more essentially the tax imposed on cigarettes. Cigarette smoke pay almost 85% of the tax revenue generalised from tobacco.THE GLOBLE TOBACCO MARKET:-There is a widely held perception that globally tobacco is a declining industry. This is not so. There has been a steady increase in production and consumption over the last decade and this trend is expected to continue. The Food and Agricultural Organisation has forecast an annual growth rate in global tobacco production and consumption at around 1.9%. The world market for tobacco products grew by 32% over the last five years - the latest period for which authentic data is available - and was valued at approximately US$ 235 billion in 1994. The developed world dominates the tobacco market, with North America and Western Europe accounting for 63% by value of all tobacco products sold globally. Six countries, China, the United States, Japan, Russia, Germany and Brazil, account for half the world cigarette market by volume. China is the single largest market, accounting for over 30% of global consumption.Global cigarette consumption has grown by 22% since 1980 and was estimated at 5,422 billion sticks in 1995. Cigarettes constitute the principal form of tobacco usage in virtually every market of the world and account for 85% of global tobacco consumption by volume and 93% by value. Tobacco is a major source of revenue to Governments in both the developed and emerging markets and cigarettes contribute the lion's share of such revenues. Tobacco taxes in Japan for instance, exceeded US$ 19 billion in 1994, accounting for 1.6% of Japanese Government revenue.

Consumer spending on tobacco products varies considerably among countries and regions. Annual per capita spend exceeds US$ 200 in North America and Western Europe, whereas in the developing South Asia, including India, it is less than US$ 5. The key trends impacting the tobacco market are a move towards low delivery products incorporating light tobaccos and a continued shift from traditional forms of consumption to cigarettes.

Annual world tobacco production in 1994 was estimated at 7 billion kgs, of which 1.7 billion kgs valued at approximately US$ 5 billion were traded internationally. International trade in tobacco products is growing rapidly. Over 900 billion cigarettes (16.5% of global production), valued at US$ 25 billion were traded internationally in 1994. The USA accounted for almost 22% of global cigarette exports, that contributed in excess of $ 5 billion to the country's balance of payments.

ROLE OF TOBACCO IN INDIA:-India is the second largest producer of tobacco in the world after China. It produced 572 m kgs of tobacco in FY03. However, India holds a merger 0.7% share of the US$ 30 bn global trade in tobacco, with cigarettes accounting for 85% of the country's total tobacco exports. Despite being the second largest producer, India is only the ninth largest exporter of tobacco and tobacco products in the world. Out of the total tobacco produced in India, only one-third is flue-cured tobacco suitable for cigarette manufacturing. Most of the tobacco produce is suitable for the manufacture of chewing tobacco, bidis and other cheap tobacco products, which have no demand outside the country. In India, three major cigarette players dominate the market, primarily ITC with 72% market share, Godfrey Phillips, with 12% and VST with 8% share of the market.'Extremely high' excise duty on cigarettes in India has increased the incentives for contraband trade in the country, estimated at Rs 1,700 crore, according to a Euromonitor International study. The illicit cigarette market in terms of volumes has grown by 57.7 per cent during 2004 to 2009 in India, as per the study commissioned by industry body Assocham.Commenting on the findings, Tobacco Institute of India Director Udayan Lal said, "The extremely high excise duty rates on cigarettes provide a very lucrative opportunity for evasion. According to him, the clandestine activity has gained momentum, after the central government cumulatively increased the excise duty on cigarettes by 42 per cent."The cost of contraband in India is estimated at USD 425 million (Rs 1,700 crore) per annum and is threatening the livelihoods of 5 million tobacco farmers," according to the report."The Institute seeks tax stability on cigarettes, coupled with a widening of the tax base through reduction in the large tax differential between cigarettes and other tobacco products," Lal said.In the list of top 15 countries with high consumption of illicit cigarettes, India is at the fifth position in terms of growth rate volumes, followed by Malasiya, Romania, Pakistan and France, respectively."In 2008, the per pack price gap between tax paid and contraband widened across all price segments. For example, a premium brand pack of 20 sticks of India Kings retailed at Rs 100, while its smuggled competitors such as Marlboro and Rothmans were available at a steep discount, selling for Rs 80-85," according to the report.

CONTRIBUTION OF MAJOR CIGARETTE COMPANIES IN INDIA:-

BENEFITS OF TOBACCO INDUSTRY TO GOVT.OF INDIA:-Adding Value to the Rural Economy:-Tobacco is grown in India by small and marginal farmers, mainly in non-irrigated soils, on land holdings of less than 2.5 hectares. About 400,000 small and marginal farmers grow cigarette tobaccos and over 600, 000 grow non-cigarette tobaccos. No crop other than cigarette tobacco gives the farmer as attractive a return consistently in similar agro-climatic conditions. Cigarette tobaccos offer returns more than two times those of non-cigarette tobaccos and comprise mostly the flue cured variety, which are sold through government-conducted auction platforms with a minimum guaranteed price (MGP) to the farmers. As a result, the better the quality of tobacco the farmer produces, the higher his return, with a minimum return guaranteed by the MGP system. Farmers aim to produce tobaccos of such quality and in such quantities so as to ensure timely sale of the entire production at the highest possible margin. Fluctuations in supply due to unforeseeable factors can cause intense volatility in international tobacco prices. Our tobacco farmers produce larger quantities of non-cigarette tobaccos (which are not exportable), and cigarette tobaccos of low grades, since the bulk of Indian cigarette consumption is not in the upper and premium segments. Measures therefore need to be adapted to: 1) facilitate transition from non-cigarette forms of consumption to cigarettes in line with consumer aspirations and international trends, so that farmers increase their incomes by producing more cigarette tobaccos.2) Upgrade consumption to the higher end, to enable farmers to produce premium quality tobaccos, which can also be exported.

Enhancing Foreign Exchange Earnings:-Global demand is restricted to cigarette type tobaccos of specified quality. India's tobacco exports at Rs. 421 crores are miniscule, given the size of our tobacco market. Less than 20% of India's entire tobacco production is exported. In comparison, Brazil, with a tobacco market smaller than ours, exports 60% of its production, and is the world's No.1 tobacco exporter with annual exports averaging more than 3 times that of India's.Enhancing Government Revenuei) Excise:-Revenue collection from the tobacco industry, by global standards, is modest. The reason lies in the small taxable base of cigarettes. Almost 90% of Government revenues accrue from cigarettes, leaving 88% of tobacco consumers effectively outside the tax net. Any proposal to increase revenues from the tobacco industry must facilitate growth of the revenue-contributing sector. The non-cigarette segment of the tobacco industry, which accounts for over 80% of consumption, is unorganised and fragmented, thereby makes revenue collection from this segment impractical to administer. An increase in the share of cigarettes within the tobacco basket must, therefore, be the key objective of any effort to raise revenue.ii) Local Taxes:-Excise revenue collected from cigarettes is divided between the Centre and the States in a ratio determined by the Central Government. This is in accordance with an agreement reached between the Centre and the States in 1956; whereby excise duty on cigarettes replaced local taxes. Over the years, this ratio has progressively increased in favour of the States. As a result, the States' share has grown considerably faster than overall excise collections.iii) Government Regulation;-In the West, tobacco and cigarettes have become synonymous, unlike in India, where nearly 88% of consumers do no smoke cigarettes. Any effort to regulate the tobacco industry therefore must take into account the industry's ability to comply. To regulate just the 12% cigarette segment would defeat the very purpose of such regulation. Statutory health warnings have been mandated by law on cigarette packets and all cigarette advertising material since 1975. The law was extended to chewing tobacco in 1986 and gutka in 1990. Other tobacco products are still not required to carry any statutory warning. Obviously, the statutory health warning requirements on tobacco consumption need to be uniformly applicable to all tobacco products.

CHALLENGES FACED BY TOBACCO INDUSTRYGovt. may filter out FDI in tobacco marketing:-Import of cigarettes could also be shifted out of OGL.Foreign cigarette companies could soon find it harder to sell their products in India. The government is looking into a proposal to ban foreign direct investment (FDI) in the wholesale marketing arms of these companies. It is also exploring the possibility of shifting the import of tobacco products from the open general licence (OGL) to the restricted list.Both moves will impact companies like Japan Tobacco International, Philip Morris and others that have set up fully-owned marketing subsidiaries through which they not only sell their global brands in the domestic market, but also bring in funds to support local operations.After more than two years of deliberations, the government banned FDI in the manufacture of cigarettes last year. Despite this, however, the health ministry and NGOs have complained that foreign cigarette companies use the marketing services route as a back door for investment and to support sales in India.Government Intervention:-In our view, going forward, tobacco companies are likely to face tougher times with the government's intervention on the rise. However, considering that as per capita income increases and there is a change in the demographic profile of the populace, there is still some scope for growth for the Indian tobacco industry.

Government rules and Regulation:-Government of India enacted the Anti Tobacco law titled Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, (COTPA) 2003 in order to protect the youth and masses from the adverse harm effects of tobacco usage, second hand smoke (SHS) and discourage the consumption of tobacco product including Gutkha and Pan Masala. The specific provisions of the Anti Tobacco Law include: 1. Prohibition of smoking in a public place (section 4)1. Prohibition of direct and indirect advertisement of cigarette and other tobacco products (section 5)1. Prohibition of sale of cigarette and other tobacco products to a person below the age of eighteen years [section 6(a)].1. Prohibition of sale of tobacco products near the educational institutions.[Section 6(b)].1. Mandatory depiction of statutory warnings (including pictorial warnings) on tobacco packs (Section 7)

About Godfrey Phillips India (Four square cigarette)

Godfrey Phillips India, with decades of active industry experience, take pride in our ability to create profit and value for the society without compromising on our core ethical systems and following adopted best practices at all times. They are a people centric, market-driven, socially responsible company, constantly evolving to find better and newer ways to provide customer satisfaction and empowering our stakeholders. With their proven ability to understand emerging trends and issues effecting peoples lives, they have been able to direct our efforts in realizing their core philosophy of Making a better world for a better tomorrow."Their Cigarette Brands:-FS1:-FS1 is the premium line of cigarettes launched by Four Square. Each Turkish Blend cigarette in the FS1 pack attributes its distinct taste and aroma to Luxury Long Leaf blended with the finest Indian handpicked tobaccos. It is designed to give the Ultimate Taste Experience. FS1 comes in 3 variants Full Flavour, Extra Smooth and Regular.Four Square:-Four Square is a well established and leading cigarette brand in India. Launched way back in 1964, the brand commands trust and reputation amongst its consumers and is known for its innovative ways to meet the changing consumer preferences.Today, the Four Square franchise has a wide portfolio of variants that are available in both King-size and Regular-size segments, namely - Four Square Kings, Four Square Special, Four Square Premier, Four Square Fine Blend and Four Square Rich Gold, Four Square Marco polo.Marlboro:-Godfrey Phillips India has an arrangement with Philip Morris to manufacture and distribute their brands, including the iconic Marlboro brand of cigarettes. Available at select cities in India at approximately 65,000 retail outlets, the brand has 7 variants including the recently launched Marlboro Gold Advance.

SOME OHETR CIGARETTE BRANDS:- Tipper Read and white flake Northpole Jaiselmer CavandersWHO ARE THEIR COMPETITORS?1. ITC (Indian Tobacco Company)1. GST 1. VST

CHAPTER-7THEORETICAL BACKGROUND

MARKETING RESEARCHIntroduction to Marketing ResearchAim of marketing activities in any organization is to increase the business in many ways. It keeps the business in touch with market. Through the discovery of new sources of profit are developed. Marketing decisions are combination of judgments and factual information therefore marketing research decision should be based on facts and figures. It helps in gathering the information. It can be used in any way in market where buyer and seller come together and increase value, however depending on the nature of the market and nature of the business.Definition of Marketing Research1. Marketing research is the systematic gathering and analyzing the data about problems related to the marketing of goods and services.

1. Marketing research is a systematic design collect on analysis and reporting of data and finding relevant to a specific marketing situation facing the company.

1. Marketing research is a definition of the exploitation of the size characteristic and potential of a market to find out usually before developing a new as service what progress want and need.TYPES OF RESEARCHThe basic types of research are as follows:

Descriptive vs. Analytical:Descriptive research includes surveys and fact-finding enquiriesof different kinds. The major purpose of descriptive research is description of the state ofaffairs as it exists at present. In social science and business research we quite often use.The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. Descriptive studies in which the researcher seeks to measure such items as, for example, frequency of shopping, preferences of people, or similar data. Ex post facto studies also include attempts by researchers to discover causes even when they cannot control the variables. The methods of research utilized in descriptive research are survey methods of all kinds, including comparative and co-relational methods.In analytical research the researcher has to use facts or information already available, and analyse these to make a critical evaluation of the material.Applied vs. Fundamental: Research can either be applied (or action) research orFundamental (to basic or pure) research. Applied research aims at finding a solution for anImmediate problem facing a society or an industrial/business organisation.Fundamental research mainly concerned with generalisations and with the formulation of a theory.Gathering knowledge for knowledges sake is termed pure or basic research. For Research concerning some natural phenomenon or relating to pure mathematics are examples of fundamental research. Similarly, research studies, concerning human behaviour carried onwith a view to make generalisations about human behaviour.

Quantitative vs. Qualitative: Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity.Qualitative research, on the other hand, is concerned with qualitative phenomenon, i.e.,Phenomena relating to or involving quality or kind. For instance, when we are interested inInvestigating the reasons for human behaviour (i.e., why people think or do certain things).we quite often talk of Motivation Research, an important type of qualitative research.This type of research aims at discovering the underlying motives and desires, using in depthinterviews for the purpose. Other techniques of such research are word association tests,Sentence completion tests, story completion tests and similar other projective techniques.Attitude or opinion research.

Conceptual vs. Empirical: Conceptual research is that related to some abstract idea(s) or theory. It is generally used by philosophers and thinkers to develop new concepts or toReinterpret existing ones. On the other hand, empirical research relies on experience orObservation alone, often without due regard for system and theory. It is data-based research,coming up with conclusions which are capable of being verified by observation or experiment.

Type Methods Techniques1. Library(i) Analysis of historical-Recording of notes, Content analysis, Tape and Film listening andResearch records analysis.(ii) Analysis of documents-Statistical compilations and manipulations, reference and abstractguides, contents analysis.

2. Field(i) Non-participant direct Observational -behavioural scales, use of score cards, etc.Research observation(ii) Participant observation- Interactional recording, possible use of tape recorders, photo graphic techniques.(iii) Mass observation -Recording mass behaviour, interview using independent observers inPublic places.(iv) Mail questionnaire- Identification of social and economic background of respondents.(v) Opinionative -Use of attitude scales, projective techniques, use of sociometric scales.(vi) Personal interview- Interviewer uses a detailed schedule with open and closed questions.(vii) Focused interview- Interviewer focuses attention upon a given experience and its effects.(viii) Group interview- Small groups of respondents are interviewed simultaneously.(ix) Telephone survey- Used as a survey technique for information and for discerningopinion; may also be used as a follow up of questionnaire.(x) Case study and life history -Cross sectional collection of data for intensive analysis, longitudinal collection of data of intensive character.

1. Laboratory research-Small group study of random behaviour, play and role analysis.(Use of audio-visual recording devices, use of observation.

Process of Marketing Research:-

. ObjectivePlanningData analysisData collectionReportingMarketingDecision

Fig 1: Process of Marketing Research

IN DETAIL:-Define the problem and research objectivesThe first step is to call the marketing manager and Research Company to define the problem carefully and agree on the research objective.

Developing research planThe second step of the marketing research calls for developing the most efficient plan of gathering the needed information. The marketing manager needs to know the cost of the research plan before approving it designing a research plan calls for decision on the data sources, research approaches and research instrument, plan and contact method.Collect the informationThe data collection phase of marketing research is generally the most expensive and the most prone to error.Data are of two types.0. Primary0. Secondary

Secondary Data:-It is the data which already exist which has been already complied by someone else a data available in magazines/record of the company.Primary Data:-It is collected by the researcher himself. Primary data is collected in four ways. i Observation Researchii Focus Group Researchiii Surveysiv ExperimentsAnalyse the informationThe next step in the marketing research process is to extract pertinent finding from the collected information, Averages and measures of dispersion and computers for the major variables. The research will also apply some advanced statistical etches and decision models in the hope of discovering additional findings.Present the findingThe researchers present as his finding to the relevant parties. The research should not over wheeling Management. SAMPLINGIntroduction to sampling:-Sampling is used collect primary data when the sources of data are far too many be exhaustively handled. Sampling is a part of the data collection process. Obviously, a sample is only a portion of the universe or population. The success of sampling depends on the extent to which the characteristics of the sample truly represent those of the universe.Sampling saves cost and time. It enables collection of information gathering task and better presentation of the data. It also insures the required degree of precision.

Sampling methods:-Different method can be employed to select the sample units. These methods termed as sampling methods fall under two broad categories:1. Probability sampling methods1. Non-probability sampling methods

Probability Sampling:-In probability sampling methods the sample units are selected at random. A random sampling method follows a precisely specified system where there is no scope for any biased selection of sample units. Randomness ensures that the selection of units takes place by sheer chance of being selected.

Non-Probability Sampling:-In non-probability sampling methods, sample units are selected in a non-random manner. The selection may be opportunistic or purposive it may be based on convenience or the judgment of the researcher, the choice is deliberate, not random.

Different methods of probability samplingSimple Random Probability Sampling:-A simple random sample is where in any item the population is as likely to be selected in the sample.Lottery is one method of selecting a simple random sample. In fact, the method is commonly known by the name Lottery Sampling. Otherwise, we may resort to use of what is called the random table or the table of random numbers. Statisticians for the purpose of selecting random samples can prepare this table. Any one developing a random sample out of a given population can readily use the table.Systematic Sampling:-There is only a small difference between simple random sampling and systematic sampling. Systematic sampling involves selecting every nth unit from the population after the beginning unit is selected at random. The interval n is fixed by dividing the population by sample of 50 elements is required, the sample interval would be fixed as 500/50=10. Every tenth unit from the previously ordered population can be taken to get the systematic sample of 50. Normally the starting fixed by selecting a random number in the above case between 1 & 10, if this happen to be say 5 every 10 number from 5 is selected- 15,25,35 & so on to get the sample required.Area Sampling:-Area sampling is also a form of stratified sampling. In this case stratification is based on locations. This method selects the sample units in several stages. At each a series of intermediary geographical blocks are selected at random.Different method of non- probability samplingConvenience sampling:-I this method selection of sample unites is based on the convenience of the researcher. Quite often accessibility decides the selection of sample. Convenience sampling is normally used only n pre testing phases of studies.

Quota sampling:-The researcher prescribes certain parameters and assigns sample quotas to field workers. Each field worker selects the unit to be interviewed based on the parameters indicated and fills the quota assigned to him. Quota sampling if often resorted to in marketing research studies to safe the work and time associated with probability sampling. Judgment Sampling:-Judgment sampling is a deliberate choice of a sample by the researcher based on this judgment about the population members. The selection of the sample is deliberate and purposive, it is not random. The research or the nominated by him would be well acquainted with the members of the population and he exercised in selecting the sample.Panel Sampling:-In this method members are selected as a panel and they become almost permanent sample for specific information on selected subjects. There can be many kinds of panels such as consumers panel, experts panels etc. Panel members are approached either personally or through mail for eliciting information.

CONSUMER BUYING BEHVIOUR

The main aim of marketing is meet and satisfy target customers need and wants buyer behavior refers to the peoples or organization conduct activities and together with the impact of various influence on them towards making decision on purchase of product and service in a market. The field of consumer behavior studies how individuals, groups and organization select, buy, use and dispose of goods, service, ideas, or experience to satisfy their needs and desires understanding consumer behavior and knowing customer are never simple. The wealth of products and service produced in a country make our economy strong. The behavior of human being during the purchase is being termed as Buyer Behavior. Customer says one thing but do another. They may not be in touch with their deeper motivations. They are responding to influences that change their mind at the last minute. A buyer makes take a decision whether save or spend the money.

Definition of Buyer Behavior:-Buyer behavior is all psychological, Social and physical behaviors of potential customers as they become aware of evaluate, purchase, consume and tell others about product & service.

Consumer Buying Decision ProcessThere are following five stages in consumer buying decision process.

1. Problem identification:-The buying process starts when the buyer recognizes a problem or need. The need can be triggered by internal or external stimuli. Marketers need to identify the circumstances that trigger a particular need. By gathering information from a number of consumers, Marketers can identify the most frequent stimuli that spark an interest in a product category. They can then develop marketing strategies that trigger Consumer interest

2. Information Search:-The consumer tries to collect information regarding various products/service. Through gathering information, the consumer learns about completing brands and their features. Information may be collected form magazines, catalogues, retailers, friends, family members, business association, commercial, chamber of commerce, telephone directory, trade air etc. Marketers should find out the source of information and their relative degree of importance the consumers.

Personal Sources: Family, friends, neighbor, as quittances.Commercial Source: Advertising, sales persons, dealers, packaging, displays.Public sources: mass media, consumer, rating organizations.Experimental sources: Handling. Examine, using the product.

3. Evaluation of alternative:-There is no single process used by all consumers by one consumer in all buying situations. There is several First, the consumer processes, some basic concepts are:

First, the consumer is trying to satisfy need. Second, the consumer is looking for certain benefits from the product solutions. The marketer must know which criteria the consumer will use in the purchase decision.

4. Choice of purchasing decision:-From among the purchase of alternatives the consumer makes the solution. It may be to buy or not to buy. If the decision is to buy

The other additional decisions are:Which types of bike he must buy? From whom to buy a bikeHow the payment to be made? And so on.

The marketer up to this stage has tried every means to influence the purchase behavior, but the choice is properly consumers. In the evaluation stage the consumer forms preferences among the brands in the choice set. The consumer may also form an intention to but the most preferred brand.

5. Post Purchase Behavior:-After purchase the product, the consumer will experience the same level of product. The Marketers job not end when the product is buying must monitor post-purchase satisfaction, post purchase action, post-purchase use and disposal

Post Purchase Satisfaction:-The buyer, S satisfaction is a function of closeness between the buyer, S expectation and the products Perceiver performance.

The larger the gap between expectation and performance the greater the consumer dissatisfaction

Post purchase Action:-The Consumer, S satisfaction or dissatisfaction with the product influence subsequent behavior. If the consumer satisfied, he or she will exhibit a higher probability of purchasing the product again.

Dissatisfaction consumer may abandon and return the product.

Post-Purchase Use or Disposal:-The marketer should also monitor new buyers use and dispose of the product. If the consumer store the product in a close, the product is probably not very satisfying. If the consumer throws the product away, the marketer needs to know how they dispose of it; especially it can be hurt the environment.

4.1) Characteristic of Buyer Behaviors

The chief characteristics of the buyers behaviors are as follow:-(1) It consists of mental and physical activities which consumers undertake to get goods and services and obtain satisfaction from them.(2) It includes both observable activities such as walking through the market to examine merchandise and making a purchase and mental activities-such as forming attitudes, perceiving advertising material, and learning to prefer particular brands.(3) Consumer behaviors are very complex and dynamic to constantly changing. And therefore, management needs to adjust with the change otherwise market may be lot.(4) The individuals specific behaviors in the market place is affected by internal factor, such as need , motives, perception, and attitudes, as well as by external of environmental influences such as the family social groups, culture, economics and business influences.

CHAPTER-8RESEARCH METHODOLOGY

RESEARCH METHODOLOGYIntroduction of the Research: Cigarette plays a very important role in the tobacco industry of the country. Therefore, study cigarettes is of critical importance.Problem Statement: To study the working of IMRB International for As there are a large number of customer preference different brand of cigarette, the study was conducted in Mumbai city to know consumer behavior towards different cigarettes and their preference, So that it would help Godfrey Phillips to have a deep study on their launch of new brand Four Square Macro polo.

Defining Problem:-Its a very big problem for a company after launch a new product (Four Square Marco polo FT cigarette) into a market full of well established competitors. There comes lots of problem after launching a product and during the testing of product. Its very important for a company to do market research to access the situation and create sales after launch. After launch the product Company was not getting good market sale due to the some problem.

.SCOPE OF STUDY:-

The present study is contained to Mumbai city and it is decided as to consider different cigarette Like Wills,Woodan Garam, Four Square, Gold Flake, Marlboro, Macro polo, Navy Cut, Bristol etc. rendered to the customers. In Mumbai city, there are different cigarettes brands available Wills, Garam, Four Square, Gold Flake, Marlboro, Macro polo, Navy Cut, Bristol, etc. The main objective of this study is to analyze the Consumer behavior during launch of new cigarette Brand

LIMITATION OF STUDY

1. Time factor becomes limitation because I have limited time to collect the information.1. Study is limited only to the cigarette sector.1. Study is conducted in only some particular area.1. Survey work is only limited to Mumbai.1. Since analysis is based on opinions and attitudes, the result at best are near to truth.1. Study is limited only to the marketing research sector.1. Improper information from customer.

Some of the main problem regarding Four Square Marco Polo FT Cigarette1. Whether the product is good enough to sustain in this scarce competitive environment?1. How it can be clearly distinguished from competitors products and services?1. Which market segment should be targeted?1. Whether these services will enough revenue to continue with this product?1. What are their promotional strategies?1. What are their distribution channels?

Keeping these main problems in mind I discussed with my project guide and agreed on some research objectives. They are:1. To know various market players of cigarette in the market.1. To access the problem and Satisfaction level of the existing customers.1. To know promotional strategy of company.1. To know distribution channels of company.1. To know how it product distinct from competitors product?

Research Design:This Report is prepared on the basis of Primary as well as Secondary Data Collection. Primary Data was collected at the branch & customers and Secondary Data was collected from different sources. Data collection phase is very crucial for a company because it is most prone to error. It is very necessary to know which type of information is needed and how it can be drawn from the market. The whole research depends on this information because its the base of the research. It decides market plan and ultimately the market strategy of a company.I have collected the data from the two sources of data:Primary data: I have taken planned efforts to collect the desire information in two ways. Method Used: Discussion with the project guide, personal and telephone interview of customers, survey and other members of the research department as well collection of sample from questionnaire.

0. Surveys: I have taken best suitable formed a questionnaire form from company to get the desired information from the customers. Keeping objectives in my mind I prepared the questionnaire. I used sampling method to collect the data. However it is the only a part of the universe size, it presents the data well and precise. Personal interview I met lots of customers and interviewed them regarding the product they are using. I visited some areas of Mumbai with the data base provided by the company like Andheri, Ville Parale, Malad, Kandiwali, Dadar, Kalyan, Goregaon, and Lower Parel.

Telephonic interviewI also used telephonic interview to collect information where I didnt find any appointment to meet. Where I used to take the number from company and used to call them to the responsible person.

0. Observational Research: As it is the matter of confidentiality and time, I found some people who are not willing to provide the required information. At these moments I used to observe the product and situation and used take out information from the customer.

Secondary data: There is a planning and Research team from which has already mapped the whole Mumbai city. My project guide has provided with the data base. Research team has divided the whole Mumbai into some cluster and mapped the city where potential customers are there and use of Access Control is more like Corporate Offices and Commercial Complexes.Secondary data was collected from different sources as follows:1. Manuals &Policies, Forms of IMRB International.1. Websites1. Books and marketing Magazines1. Newspapers etc.

Data Sampling Since it is to much expensive and time consuming to collect the data exhaustively when the source of data is very large, so sampling is used to collect the primary data. It is only a part of the whole data or the universe. There are different methods of sampling, but I used Non Probability Judgment Sampling where sample units are selected in a non random manner by the customer interview. Sample Size:-60 Selected Sample:-60Name of visited area Visited customers

Dadar 9

Kurla 7

Malad 9

Kandiwali 3

Ville parale 9

Lower parel 8

Goregaon 6

Andheri 9

CHAPTER-9

ANALYSIS OF INFORMATION

1) Are you a cigarette smoker?

Sr no.AwarenessNo. Of respondent Percentage (%)

1Yes 60 100

2No --- ---

3Total 60 100

The above chart shows percentage of cigarette smoker customer. As we can see from the above chart 100% customer I visited smokes different types of cigarette.

1. Smokers age?

Sr no.AgeNo. Of respondent Percentage (%)

118 to 25 3643.33

226 to 35 1833.33

336 to 45 0623.33

4Total 60 100

The above chart shows age of smoker. As we can see from the above chart out of 60 respondents,36 respondents age were between 18 to 25 it means near about 43.33, 18 respondents age were between 26 to 35 it mean near about 33.33 % and remaining 6 respondents age were between 36 to 45,near about 23.33.To which customer I visited mostly they are young collegians and employees, which are smokers.

3) How often they smoke cigarette in week?

Sr no.In weekNo. of respondent Percentage (%)

1Daily ( 7 days) 36 60

25 to 6 days 16 27

31 to 4 days 07 12

4At least once a month ---- ------

5Less often 01 1

6Do not smoke---- -------

7Total 60100

The above chart shows average of smoking cigarette in weekly days. As we can see from the above chart out of 60 respondents 36 respondents smokes 7 days in week it means 60% respondents. Where 16 respondents were smoking 5 to 6 days in week, it was near about 27%. 7 respondents were smoking 1 to 4 days in week. And remaining 1 respondent was smoking less often in whole week. It means mostly respondents were smoking maximum days in week.

4) On an average, how many cigarette sticks do you smoke in a day?

Sr no.Average cigarette in a dayNo. Of respondent Percentage (%)

11-2 08 15

23-5 41 79

36 and more 03 6

4Total 52 100

The above chart shows number cigarette of smoking cigarette in onedays. As we can see from the above chart out of 58 respondents,8 respondents smokes 1to 2ciggarettes in a one day it means 15% respondents. Where 41 respondents smokes 3 to 5in a one days, it was near about 79% and remaining 3 respondents smokes more than 6 cigarettes in one days it is 6%.

5)Which is your regular brand?

Sr no.Regular brandNo. Of respondent Percentage (%)

1Gold Flake Premium FT 34 65

2Four Square Special FT 06 12

3Bristol FT 02 4

4Other 10 19

5Total 52 100

The above chart shows average regular brand of cigarette which is smokes by respondent. As we can see from the above chart out of 52 respondents 34 respondents told gold flake is there regular brand, it means 65% respondents of gold brands regular customer. Where 6 respondents four square ft is regular brand , it was near about 12%. 2 respondents told Bristol is their regular brand. And remaining 10 respondents told their regular brand is different than that.

6)What is your Education?

Sr no.Education No. Of respondent Percentage (%)

1Illiterate --- ----

2Literate but no school --- ---

3School-up-to 4 years 1 3

4 5 to 9 years --- ---

510 + years (SSC/HSC) 716

6HSC+,but not graduate 1333

7Graduate/Post Grad-Gen 1640

8Graduate/Post-Prof 38

9Total 40 100

The above chart shows educational background of respodents. As we can see from the above chart out of 40 respondents,16 respondents educational background is graduate or post graduate ,it means 40% respondents. Where 13 respondents were HSC but not graduated, it was near about 33 %. 7 respondents were HSC/SSC,IT IS 16%. And remaining 1 respondent was from school-up to 9 years (3%)

7)What is your Occupation?

Sr no.Occupation No. Of respondent Percentage (%)

1Unskilled worker 03 7.5

2Skilled manual worker 08 20

3Pretty trader --- ---

4Shop owner ---- ----

5Businessman/Industrialist- workers

None- ---- ---

1 to 9 01 2.5

10+ --- ----

6Self-employed --- ---

7Clerk/salesman --- ---

8Supervisor 04 10

9Officer/Exec-Middle/Senior 12 30

10Unemployed/seeking work --- ---

11Student 12 30

12Retired --- ---

13Total 40 100

The above chart shows occupation of respondents. As we can see from the above chart out of 40 respondents 12 respondents were student and 12 officer/exec-middle/senior, it means both were 30% respondents. Where 4 respondents were supervisor, it was near about 10%. remaining 1 respondent was businessman.

8) For how long have you been smoking as your regular brand?

Sr no.For How long smoking No. Of respondent Percentage (%)

11 week to 4 week 00 00

21 to 6 month 08 20

36 month-1 year 18 45

41 year to 5 year 11 27.5

55 year to 10 year 03 7.5

6Total 40 100

The above chart shows how long respondents have been smoking cigarette . As we can see from the above chart out of 40 respondents 18 respondents smoking 6 month to 1 year as regular brand. it means 45% respondents. Whereas 11 respondents were smoking from 1to 5 years as regular brand, it was near about 27.5%. 3 respondents were smoking from 5 to 10 years. And remaining 8 respondent were smoking from 1to 6 month as regular brand, It was 20%of hole.

9)Could you please take a look at this card and tell me, will you change your brand in future?

Sr no.Will you change your brand in future / No?No. Of respondent Percentage (%)

1I cant think of smoking other brand in future1947.5

2I will continue to smoke my regular brand but I can think of smoking other brands occasionally in future.1332.5

3I can think of smoking other brand on a regular 08 20

4Total 40100

The above chart shows will respondents change his regular brand of cigarette in future or not? As we can see from the above chart out of 40 respondents,19 respondents told they cant change their regular brand, it means 47.5% respondents willnt change their brand. Whereas 13 respondents said they can think change about regular brand , it was near about 32.5% And remaining 8 respondent told they will change regular brand it is 20%.

Q1041 year to 5 year

55 year to 10 year

Sr no.Would you Smoke/No?No. Of respondent Percentage (%)

1Yes 19 47.5

2No 21 52.5

3Total 40 100

The above chart shows if in market respondents cigarette brand is not available then, respondent will smoke other brand or not. As we can see from the above chart out of 40 respondents 21, respondents t said no. They will not smoke other brands cigarette, it means 52.5 %. Whereas 19 respondent said they can smoke other brand than regular brand , it was near about 47.5%.

11)Do you know of any cigarette brand that has been launched in the market in last 2-3 month?

Sr no.AwarenessNo. Of respondent Percentage (%)

1Yes 2 5

2No 38 95

3Total 40 100

The above chart shows, were respondents aware about cigarette brand which was newly launched in market or not?.As we can see from the above chart out of 40 respondents only 2 respondents told they were aware about newly launched that brand, it means 5% respondents was aware . Whereas 38 respondents were not aware about that cigarette brand , it was near about 95%.

12)Have you heard or seen about four square marco polo brand of cigarette before?

Sr no.Heard or seen?No. of respondent Percentage (%)

1Yes 02 05

2No 38 95

3Total 40 100

The above chart shows respondents are heard or seen about four square Marco polo cigarette or not? As we can see from the above chart out of 40 respondents, 2 respondents told they seen that Marco polo cigarette brand, it means 5% respondents know about that product. Whereas38 respondents told they are not heard or seen about four square Marco polo cigarette brand it was near about 95 %.

13)Have you ever smoked FOUR SQUARE MARCO POLO FT cigarette brand, even if only once?Sr no.Smoked or not?No. Of respondent Percentage (%)

1Yes 00 ------

2No 40 100

3Total 40 100

The above chart shows, were respondents smoked ever four square Marco polo cigarette brand or not? As we can see from the above chart out of 40 respondents,40 respondents told they were ever smoked that four square Marco polo brand. It means all respondents were not smoked that brand.

14)When you first come to know about four square marco polo cigarette FT?

Sr no.When you know about Marco Polo?No. of respondent Percentage (%)

1Less than 1 week 00 00

2For around1-2 weeks 00 00

3For around 2-3 weeks 00 00

4For around 1 month 01 50

5For around 3 month 01 50

6Total 02 100

The above chart shows, when respondents first come to know about four square marco cigarette brand which was newly launched in market. As we can see from the above chart out of 40 respondents only 2 respondents told they were first know from 1 month and other 1 told that from 3 month, about newly launched that brand, both are same 50%.

15)From where else did you come to know about four square marco polo FT cigarette?

Sr no.From where did they come to know?No. of respondentPercentage

1Shopkeeper told me 00 00

2Heard from relatives/friends/colleagues 00 00

3Was connected by company representative 00 00

4Saw somebody smoking it 00 00

5Ad boards on shop/top of shop 00 00

6Display board inside shop/posters/sticker in shop 01 50

7Saw pack in shop/pack display 01 50

8Others 00 00

9None 00 00

10Total 02 100

The above chart shows, from where did respondents come to know about four square cigarette brand which was newly launched in market .As we can see from the above chart out of 2 respondents,1 respondents told he saw macro polo cigarette packet in shop and 1 respondents told he saw cigarette packet sticker in shop . Whereas both were50%.

CHAPTER-10ANNEXURE

SHOPBASED QUESTIONNAIRE:-RANDOM

NAME Card no. 1-2CENTERSRECIDENCE- ADDRESS - SHOP ID6-8

LANDMARK- QRE SERIAL NO.PHONE NUMBER- 9-12

EDIT CODE 13-14Interviewer- Interviewdate

Accompanied Back checked Scrutinized

Tel perTL 1 TL 1 5 TL 1EIC 2 EIC 2 6 EIC 2OFE 3 OFC 3 7 OFE 3FM 4 FM 4 8 FM 4

Signature- Signature- signature-

(SPEAK TO ANY ADULT MALE PERSON COMING OUT OF A CIGARETTE SHOP)

SAY: Good morningI am from IMRB international, a private organisation that conducts survey on various products from time totime. Currently we are we conducting one such survey among a group of people like you and in this connection I would like speak to you few minutes.Q1a) Are you a cigarette smoker?Yes 1

No 2

(Terminate the interview if 2 coded else go to 21b)

Q1b) Please tell me your age?

Record age in competed years--- (CONTUNUE IF AGE IS 18-64 YEARS, ELSE TERMINATE)

Q2) Kindly take a look at this card and tell me whether you or any of your family members works in any of the following trader of professions?Banking 1

Textile2

Advertising or research agency 3

Journalism-Newspaper,Magazine,Radio,TV,etc. 4

Cigarette company 5

Sales or manufacturing of tobacco product 6

None of the above 7

(TERMINATE` THE IF TELLS 3, 4, 5, 6)

Q3)You said you smoke cigarettes? How often do you smoke cigarettes nowadays?Daily (7 days a week) 1

5-6 days a week 2

1-4 days a week 3

At least once a month 4

Less often 5

Do not smoke cigarettes 6

(Continue with 1 and 2)Q4a)For how long have you smoke cigarettes regularly by regularly, I mean at least 5-6 days a week?YearsMonth

Record duration of smoking

Q4b)On how average, how many cigarettes sticks you currently smokes in a day?

No of cigarette sticks per day

Q4c) when I say cigarettes, which is the first brand that comes to your mind? Which is next brand that comes to your mind and the next? (Probe but dont prompt) Write brand names strictly in order mentionedOrder of mention Brand nameBrand code

1st

2nd

3rd

Q5)What is your regular brand i.e. the one cigarette brand you smoke more than any other brand, nowadays? Record regular brand-----------------------------(Recruit respondent only if his regular brand is any RSFT brand which few given below)Regular brand-any RSFT

Gold flake premium FT (GFP FT)

Bristol FT

Four square special FT

Flake excel FT

Any other RSFT

SAY: we are conducting a survey among a special group of cigarette smokers like you, this would involve asking a few questions about various aspects of cigarette. Would you like to be a part of this study?(If yes: take respondents signature below and administer the questionnaire else terminate)

DECLARATION BY THE RESPONDENT Date of interview- I hereby acknowledge that I am a smoker over the of 18 year & I have consented to give interview related to various aspects of cigarettes, voluntarily.-------------------------------------------signature of the Respondent.

Q6a) Could you please tell me who the earner in your household is by? By main earner, I mean the person who contributes the most towards monthly household expense.Respondent is me 1

Others 2

Q6b) Now, I would like to know something about you and the person who makes the biggest contribution to the household expesnses.what is the highest level to which you and he/she have studied?

Education: Respondent main earner Respondent--------------EducationRespondent

Illiterate 1

Literate, but no school 2

School- up to 4 years 3

5 to 9 4

5 to 9 years 5

HSC+,but not graduate 6

Graduate /post graduate-gen 7

Graduate/post graduate 8

Q6c) Occupation: Respondent main earner Respondent---------------OccupationRespondent

Unskilled manual worker1

Pretty trader2

Shop owner3

Businessman/industrialist4

None5

No of workers- 1 to 96

10 +7

Self-empl.professional8

Clerk/salesman 9

SupervisorA

Office/exec-juniorB

Office/exec-middle/seniorC

Unemployed/seeking workD

StudentE

EDUCATIONCircle sec codeIlliterate

Literate no formal educationSchool up to 4 yrs.School 5-9 yrs. HSC/SSCSome Coll.butNo Grid.Grad/Post-Grad-GGrad/Post-Grad-P

12345678

OUnskilled worker1E2E2E2E1DDDD

CSkilled worker2E2E1E1DCCB2B2

CPetty traders3E2DDDCCB2B2

UShop owners4DDDCB2B1A2A2

PBusinessman/Ind.(Employee)5DCCB2B1A2A2A1

A6CB2B2B2B1A2A1A1

T7B1B2B1A2A2A1A1A1

ISelf-Emp professionals8DDDDB2B1A2A1

OClerical/salesman9DDDDCB2B1B2

NSupervisory levelADDDCCB2B1A2

Officers/Exec-juniorBCCCCB2B1A2A2

Officers/Exec-seniorCB1B1B1B1B1A2A1A1

QA)Please take a look at this and tell me which of this items do you have at home? (it could be owned by you, your family or provided by the employer or it could be available in the house you live in; but it should be for the use of just you or your family.Items owned /have access at homeCircleTick

Electricity1

Ceiling Fan2

Two wheeler3

LPG stove4

AColour TV5

Refrigerator6

Washing machine7

Personal computer/laptop8