Many smokers choose “low tar,” “mild,” or “light” cigarettes because they think that light cigarettes may be less harmful to their health than “regular” or “full flavor” cigarettes.

After all, the smoke from light cigarettes feels smoother and lighter on the throat and chest so lights must be healthier than regulars, right? Wrong.

The truth is that light cigarettes do not reduce the health risks of smoking. The only way to reduce your risk, and the risk to others around you, is to stop smoking completely.

What about the lower tar and nicotine numbers on light cigarette packs and in ads for lights?

  • These numbers come from smoking machines that “smoke” every brand of cigarettes exactly the same way.
  • These numbers do not really tell how much tar and nicotine a particular smoker may get because people do not smoke cigarettes in the same way the machines do. And no two people smoke the same way.

How do light cigarettes trick the smoking machines?

  • Tobacco companies designed light cigarettes with tiny pinholes on the filters. These “filter vents” dilute cigarette smoke with air when light cigarettes are “puffed” on by smoking machines, causing the machines to measure artificially low tar and nicotine levels.
  • Many smokers do not know that their cigarette filters have vent holes. The filter vents are uncovered when cigarettes are smoked on smoking machines. However, without realizing it and because they cannot avoid it, many smokers block the tiny vent holes with their fingers or lips which basically turns the light cigarette into a regular cigarette.
  • Because people, unlike machines, crave nicotine, they may inhale more deeply take larger, more rapid, or more frequent puffs or smoke a few extra cigarettes each day to get enough nicotine to satisfy their craving. This is called “compensating,” and it means that smokers end up inhaling more tar, nicotine, and other harmful chemicals than the machine based numbers suggest.
  • Cigarette makers can also make the paper wrapped around the tobacco of light cigarettes burn faster so that the smoking machines get in few puffs before the cigarettes burn down. The result is that the machine measures less tar and nicotine in the smoke of the cigarette.

What is the scientific evidence about the health effects of light cigarettes?

  • The Federal Government’s National Cancer Institute (NCI) recently concluded that light cigarettes provide no benefit to smokers’ health.
  • According to the NCI report, people who switch to light cigarettes from regular cigarettes are likely to inhale the same amount of hazardous chemicals, and they remain at high risk for developing smoking related cancers and other diseases.
  • There is also no evidence that switching to light or ultra light cigarettes actually helps smokers quit.

What do tobacco companies say about the health effects of light cigarettes?

  • The tobacco industry’s own documents show that companies were well aware that smokers of light cigarettes compensate by taking bigger puffs.
  • Industry documents also show that the companies were aware early on of the difference between machine measured yields of tar and nicotine and what the smoker actually inhales.
  • The NCI report concluded that strategies used by the tobacco industry to advertise and promote light cigarettes were intended to reassure smokers and to prevent them from quitting, and to lead consumers to perceive filtered and light cigarettes as safer alternatives to regular cigarettes.

What is the bottom line for smokers who want to protect their health?

  • There is no such thing as a safe cigarette. The only proven way to reduce your risk of smoking related disease is to quit smoking completely.
  • Here’s good news Smokers who quit before age 50 cut their risk of dying in half over the next 15 years compared with people who keep smoking.
  • Quitting also decreases your risk of lung cancer, heart attacks, stroke, and chronic lung disease.

National Cancer Institute. Risks Associated with Smoking Cigarettes with Low Machine Measured Yields of Tar and Nicotine. Smoking and Tobacco Control Monograph 13. Bethesda, MD NCI 2001
This article courtesy of NCI

Cigarettes brands in india

Marlboros global brand strategy

  • CIGARETTE Analysis IN INDIA
    Reviewed by
    LALIT SONI (A 73)
  • THE INDUSTRY IN SPECIFIC
    • The cigarette industry is one of the oldest industries in India.
    • It is an important AGRO based Industry.
    • It is highly labor intensive & provides livelihood to about 5 million people directly and indirectly.
    • Cigarette is an item falling under the First Schedule to the Industries (Development & Regulation) Act, 1951 and requires an industrial license.
    • India is the second largest producer of tobacco in the world.
    • It exports a good amount of cigarette in various countries, which generates a handsome amount of revenue for the company.
    • Cigarette exports during 2007 08 increased by 11 % in volume terms over the exports of previous year.
    • Major markets for cigarettes are UAE and USA, Romania, Saudi Arabia and Iraq where the demand for generic low cost cigarettes is growing.

    THE INDUSTRY IN SPECIFIC

  • Cigarettes Growth potential
    • Cigarettes account for only 15% of tobacco consumed in India unlike world pattern of 85% due to prolonged punitive taxation
    • Cigarettes (15% of tobacco consumption) contribute nearly 85% of Revenue to the Exchequer from tobacco sector
    • Of the 58% of adult Indian males who consume tobacco, barely 15% can afford cigarettes
    • Biri Cigarettes ratio 10 1
    • Annual per capita adult cigarette consumption in India is appx. one tenth world average 85
    • Future growth depends on relative rates of growth of per capita income and moderation in taxes
  • Cigarettes Growth potential
    15 % cigarettes
  • Surveyed as per March 2009
  • LIST OF MAJOR PLAYERS IN INDIAN CIGRATTE INDUSTRY
    • Godfrey Phillips (India) Ltd.
    • V.S.T. Industries Ltd.
    • ITC Limited
    • G.T.C. Industries Ltd.
  • Market share
    GTC 8%
    GPI 12%
    ITC 72 %
  • BCG Matrix
    ?
    Market attractiveness & Competitive strength is also important.
  • ITCONE OF INDIA S MOST VALUABLE CORPORATIONS
    • One of India s premier private limited groups with over 99 years.
    • Large & established Distribution Networks.
    • Annually turnover of the co. is RS 2888 Crore
    • It is one of the eight Indian companies to feature in Forbes A list in 2004.
    • It has more then 21,000 employees at more then 60 location across India with 4,86,000 shareholders.
    • Ranks No. 4 among Indian listed Private Sector Companies bymarket cap. ( April 09)
    • Rated as one of India s Most Respected Companies(IMRB Business world Survey 2006)
  • ITCHISTORY OF THE COMPANY
    • On 24th Aug. 1910 the company was incorporated as a private company under the name, Imperial Tobacco Co. of India ltd.
    • On 27th Oct. 1954 the company was converted into a public limited company.
    • The name of the company was changed from the ImperialTobacco co. of India ltd., to India Tobacco co. ltd. In May 1970.
    • On Oct. 1972 company entered into Hotel business.
    • On 2000 company has launched a project e choupal in Bhopal to Web enable farmers to make a beginning in Agriculture e trade.
    • During the same year ITC has launched Wills sport, a full range of internationally styled premium wear for Men & Women.
  • Vision and Mission
    • Vision

    Sustain ITC&apos s position as one of India&apos s most valuable corporations through world class performance, creating growing value for the Indian economy and the Company s stakeholders.

    • Mission

    To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.

    • They have a DIFFERANTIAL MARKETING STRATEGY type.
    • Cigarette companies manipulate menthol levels to lure young smokers
    • Major brands and their advertising campaigns
    • Always use their existing channels.
    • Utilizing nominal resources related with the brand
    • Brand Ambassador are selected according to the brands and mostly are YOUTH ICONS
    • They emphasize on going with the FLOW and making their Followers .

    MARKETING STRATEGY

  • FMCG CIGARETTES
  • ITC SCIGARETTE BUSINESS
    • Market leader in India.
    • Powerful Brands across segments.
    • Leadership in all segments geographic & price.
    • Extensive FMCG distribution network.

    Direct servicing of 1,00,000 markets & nearly 2 million Retail outlets.

    • Exciting long term growth potential.
    • World class state of the art technology and products.

    Investment Rs.10 billion in six years

    • About 71% of the Total Turnover depends upon this Business.
  • CIGARETTE PRODUCTS
    • Super Premium Products
    • Insignia

    ITC Insignia. 97 mm.
    Cost Rs 130 for 20
    Where quality touches infinity , redefine perfection
    Advertised in Higher SES area

    • 555

    ITC 555 premium filter regular 84 mm.
    Cost Rs 100 for 20
    Advertised in Higher SES

    • India King

    ITC India King. 84 mm.
    Cost Rs 100 for 20
    Rule your World
    Advertised in Higher SES area

    • Wills Silk Cut(king size)

    ITC Wills Silk Cut Filter 84 mm.
    Cost Rs 88 for 20
    A blend so right a filter so fine
    Advertised in Higher SES

    • Premium Products
    • Wills Classic/Mild/Regular/Menthol / Ultra Mild

    ITC Wills Classic/Mild Filter King
    84 mm. Cost Rs 94 for 20
    Discover a passion
    Advertised in Higher SES

    • Wills Navy Cut(Filter Tipped)

    ITC Wills Navy Cut Filter ,74 mm.
    Cost Rs 68 for 20
    Made for each other
    Advertised in Higher SES

    • Wills Navy Cut(Duotec)

    ITC Wills Navy Cut Filter ,84 mm.
    Cost Rs 80 for 20
    Advertised in Higher SES

    • Navy Cut(Regular Size)

    ITC Wills Navy Cut Filter ,69 mm.
    Cost Rs 48 for 20
    Advertised in Higher and Lower SES.

    • Gold Flake(Premium)

    ITC Gold Flake Premium Regular 69 mm.
    Cost Rs 58 for 20
    It s Honeydew Smooth , Smooth, exquisite,
    timeless. But then, all art is
    Advertised in Higher and lower SES

    • Gold Flake King/Lights/Ultra Light Filter

    ITC Gold Flake King/Light Regular 84 mm.
    Cost Rs 88 for 20
    Now in a Bevelled Edge pack
    Advertised in Higher and lower SES

    • benson & hedges(light & hard)
    • B & H under ITC Regular Size 84mm.
    • Cost Rs 100 for 20
    • Advertised in Higher and Lower SES
    • Marlboro (light & hard)
    • Phillip Morris under ITC Regular Size 84 mm.
    • Cost Rs 100 for 20
    • Advertised in Higher and Lower SES
    • Bingo Products
    • Wills Flake
    • ITC Wills Flake Filter Regular Size 69mm.
    • Cost Rs 58 for 20
    • Advertised in Higher and Lower SES
    • Bristol
    • ITC Bristol Regular Size 69 mm.
    • Cost Rs 32 for 20
    • Rise to the taste
    • Advertised in Higher and Lower SES
  • SWOT Analysis
    • Strength

    Biggest and the largest player in the Indian tobacco market with a market share of 80%.
    Its Gold Flake tobacco brand is the largest FMCG brand in India and this single brand alone holds 70% of the tobacco market.

    • Weakness

    It still has to consolidate its foot in the cigar market largely dominated by Godfrey Philips.

  • SWOT Analysis
    • Opportunities

    ITC is moving into new and emerging markets like developing countries of Eastern Europe, Africa etc.

    • Threats

    The obvious threat is from competition, both domestic and international.
    Health hazard
    Increasing tax in Cigarettes

    • Entry Barrier ANALYSIS

      • Supplier Bargaining Power

    • Buyer&apos s Bargaining Power
    • Industry Rivalry
    • Substitutes

    Porter s Five Forces analysis

  • Summary on ITC s SBUs
  • GPI Cigarettes
    • The second largest player in the Indian cigarette industry.
    • Annual turnover exceeds INR 1800 crore (approx. US $369.6 million)
    • Has two major stakeholders, one of India&apos s leading industrial houses the K. K. Modi Group and one of the world&apos s largest tobacco companies, Philip Morris.

    Godfrey Phillips India ltd.

  • GPIHISTORY OF THE COMPANY
    Incorporated in India in 1936, the Company established its own manufacturing facilities in 1944
    On 1946 GODFREY PHILLIPS became a Public Ltd. Co. with its manufacturing operations in Mumbai
    Its products are distributed through an extensive India wide network comprising 484 exclusive distributors and over 800,000 retail outlets
  • Vision and Mission
    • Vision

    To become a leading tobacco player in India and beyond.

    • Mission

    empowers all its people to think and act radically, stretch relentlessly and generate path breaking ideas and strategies to propel the Company. This helps to create and build powerful brands with unmatched service and world class processes.

  • MAJOR Brands
    • Four Square Filter

    GPI Four Square Filter Regular.69 mm
    Cost Rs 48 for 20
    Man with the smooth edge
    Advertised in Higher and Lower SES

    • Stellar

    GPI Stellar Slims Cost Rs76 for 20
    Low nicotine, High Satisfaction
    Advertised in Higher SES area

    • GPI Red and White
    • GPI Red & White flake
    • Text in Hindi Hum red and white

    peenewalonkibaat hi kuchaurhai

    • Cost Rs 48 for 20

    Advertised in Higher and Lower SES

    • I Gen
    • GPI Red & White Regular .
    • Introduced India s 1st King size 5 s pack
    • India s 1st Euro Norm 10 1 10 cigarette holds the promise

    of an advanced cigarette quality and immense style.

    • Advertised in Higher and Lower SES
    • jaisalmer
    • GPI Jaisalmer Premium king size .
    • It is a luxurious blend of finest sun dried

    Virginia tobaccos which deliver a smooth
    mellow flavor.

    • Advertised in Higher and Lower SES
    • north pole
    • GPI North Pole menthol
    • largest selling menthol cigarette in India
    • Advertised in Higher and Lower SES
    • cavanders
    • GPI s Oldest & most trusted brand.
    • providing superb value and satisfaction
    • Cost Rs 68 for 20
    • Advertised in Higher and Lower SES
    • tipper
    • Phillip Morris Tipper
    • The fastest growing micro segment brand
    • Advertised in Higher and Lower SES
  • SWOT Analysis
    • Strength

    The second biggest tobacco company in India
    The first and only tobacco company to organize the fragmented cigar market in India and secure its position as the market leader in the cigar distribution.
    Partnering with some of the top most players in the international tobacco industry.

    • Weakness

    low popularity of most of its products
    No sole authority

  • SWOT Analysis
    • Opportunities

    Already present in the Middle East, West Africa, South East Africa and South East Asia, GPI can strengthen its position as an international player by entering new markets.
    Even expanding market share in the Indian tobacco market is an opportunity

    • Threats

    ITC getting into the cigar market
    It has a mere 12% in market share

    • New Entries
    • Buyers bargaining powers

    Oligopoly market situation.
    Suppliers bargaining power
    Fragmentation, consolidation & integration.
    Low switching costs
    Threat of substitutes
    Depends on buyer to buyer. Some are Brand Loyalists.
    Competitive rivalry
    New innovative products by rivals.
    Porter s Five Forces analysis

  • Golden tobacco ltd.
  • GOLDEN TOBACCO LIMITEDProfile
    • GPC is a professionally managed organization in the field of tobacco and tobacco related products.
    • Established in the year 1930 by the late ShriNarseeMonjee.
    • GTC is the first wholly owned company specializes in manufacturing & exporting an exclusive range of Cigarettes, Flavor Cigar & Non Tobacco smoking product.
    • GTC has manpower strength of 2000 employees spread across manufacturing.
    • The Company has two major production facilities in Mumbai as well as Baroda.
  • Vision and Mission
    • Vision
    • To be a largest, Human sensitive , Global Tobacco Company.
    • Mission
    • Constant R & D to develop the finest blends guided by relentless focus to deliver world class packaging, with the aim to exceed expectations of our consumers both in India and around the globe . All of our long term strategies & short term will be bound by the finest standards of professionalism and dedication.
  • MARKETING STRATEGY
    • We work with commitment , dedication & Integrity towards a common goal.
    • We are an equal opportunity Employer.
    • We believe that learning is a life long process & provide an environment attuned to growth.
    • We are a balance of the boldness, energy and courage of youth, sharpened by the experience, foresightedness and wisdom of veterans.
  • Major brands
    • PANAMA
    • A Legendry brand of GTC.
    • The company has launched several variants in the Panama portfolio.
    • Some of these are
    • Panama Virginia Regular
    • Panama Filter
    • Panama Gold
    • Panama Premium Filter
    • Panama Delight
    • Panama Menthol
    • Panama Mini Kings
    • chancellor
    • The Chancellor name is given to Golden Tobacco s Finest Blends.
    • Chancellor as a symbol of quality cigarettes.
    • Chancellor Browns
    • A unique Premium blend in the king size segment
    • It is a sophisticated & stylish product.
    • Chancellor Royale
    • Which appeals to the modern age consumers who have royal tastes & hearts of Gold.
    • Chancellor Exclusive
    • Unique Brown Cigarettes in Regular size with Distinctive Flavor.
    • Chancellor Harvard Luxury
    • A Consumer s Favorite since ages.
    • Chancellor Lights
    • A mind blend of finest tobacco, in a style White pack.
    • Golden
    • Carving a niche for itself in the crowded marketplace is the Golden s Brand.
    • An assurance of quality, for the value conscious smoker.
    • Golden s Gold Flake
    • A strong blend.
    • Which allows the smoker to derive

    immense pleasure.

    • Golden s Major
    • A tribute to the Macho, Courageous and Bold personalities.
    • The packaging of Golden major has been inspired from the Defense fraternity.
    • taj chap
    • A heritage brand of Golden Tobacco
    • Market for more than 35 years.
    • The only Premium brown cigarette in the

    non filter segment.

    • style mini kings
    • Launch more than 25 years ago
    • To cater to the changing youth of the country,

    The name STYLE says it all.

    • A distinctive blend , which was very well accepted by the Indian Youth.
    • steel(Regular & king size)
    • Steel It Separates Men From Boys .
    • Targeted at the youthful Rich & smooth smoker,

    With new look packaging & style.

    • Regular size of Steel has been a huge success.
    • June(Light & menthol Flavors)
    • Premium quality Virginia blend producing

    rich & pleasant characteristics.

    • June Slim has been designed meticulously to

    suit the life styles of those who like to carry themselves.

    • < li> just black
    • A Flavored Filter Cigar
    • Flavors Full flavor, mild, menthol, cherry,

    Chocolate vanilla, peach, rum, raspberry,
    Sour apple, strawberry & grapes.

    • lips
    • Lips flavored cigars(in tube pack)have a sweet

    filtered tip and are loaded with flavor.

    • Each cigar is packed in its own individual plastic tube.
    • An ideal product to carry around in your pocket.
  • Vazir sultan Tobacco Industries ltd.
  • Vst
    • The company was incorporated in 1930 at Hyderabad .
    • The third largest player of Cigarette industry in India.
    • In 1984 the name of the Company was changed from The Vazir Sultan Tobacco Co. Ltd. to VST Industries Ltd.
    • The Company embarked upon a major modernization program designed to improve its competitive ability in domestic and international markets.
    • The company recorded revenues of INR3,401.7 million (approximately $84.5 million) in the fiscal year ended March 2008.
    • The Company manufactures and distributes Cigarettes The products are sold under the trade names Charminar Specials&apos , Shah I Deccan&apos , Qila&apos , High Court&apos , Vazir&apos and Ambassador&apos .
    • chArms
    • A Legendry brand of VST.
    • The taste that sets you free
    • Advertised in Lower SES

    Major brands

    • Charminar
    • A Legendry brand of VST.
    • The company has launched several variants in the Charminar portfolio.
    • Some of these are
    • Charminar Special Filter
    • Charminar Plain
    • Charminar Standard.
    • Advertised in Lower & High SES

    Area.

  • Thank you