Strategic Marketing Planning

To gain an understanding of: The nature and scope of planning and how it fits within the management process Similarities and differences among mission, objectives, strategies and tactics The essential difference between strategic company planning and strategic marketing planning The steps involved in strategic marketing planning The purpose and contents of an annual marketing plan How planning models can be useful aids in developing a marketing program

The Management Process

Feedback, so management can adapt future plans and their implementation to the changing environment

Strategic Marketing Management

implementation, and evaluation implies ongoing revision of the marketing program, based upon feedback consistent with the firms mission statement and based upon clear goals and objectives strategies suggest how firm will reach its goals tactics relate to how strategies will be implemented policies guide how the firm does business

PLANNING SEQUENCE
Strategic company planning

1. Define org. mission 3. Set org. objectives 2. Conduct situation analysis Select appropriate strategies 4.
Strategic marketing planning

1. Conduct situation anal. 4. Select target markets, 2. Develop marketing obj. measure market demand 3. Determine positioning andDesign strategic 5. differential advantage marketing mix
Annual marketing planning

Prepare annual marketing plan for each major product and company division
5

IMPLEMENTATION AND EVALUATION

Strategic Marketing Planning

in the firms environment matches resources with the opportunities, changes, and characteristics of the marketplace must be consistent with the firms mission objectives must be actionable and measurable formulation of objectives is often based upon an analysis of strengths, weaknesses, opportunities, and threats (SWOT)

The Planning Process

including a SWOT analysis setting realistic marketing objectives determining strategies for positioning and for gaining a differential advantage on competitors selection of appropriate target market segments and an assessment of market demand identifying a strategic marketing mix that will appeal to the target segments

Annual Marketing Planning

specific objectives over the year points out other activities that must be performed in implementation and evaluation outlines who is responsible and what resources are to be made available represents a road map to guide marketing activity over the coming year

Contents of the Annual Plan

including resources objectives tailored to organizational goals strategies relating to segments and marketing mix

carry out strategies financial schedules -projections timetable to guide implementation evaluation of performance against goals

Strategic Business Units (SBU)

organization may divide itself into smaller planning units called Strategic Business Units The unit should: Be a separately identifiable business Have a distinct mission Have separate competitors Have a separate group of executives charged with profit responsibility Have its own strategic plan

10

Premium Cigarette

Mission and Vision

S.W.O.T Analysis of Tobacco and Cigarette Industry

Strengths
India is one the largest manufacturers of tobacco in terms of

production. India amounts for 5.8% of the international trade and ranks 5thafter Brazil, U.S.A. Turkey and Zimbabwe.

Weakness
The growth of various varieties of Tobacco is at the mercy of

unscrupulous traders and middlemen. The burden of Tobacco tax has increasingly shifted to cigarette with the removal of duty on raw Tobacco since 1979, resulting in discriminatory rates of duty compared to other Tobacco products. Prohibition of Direct advertising.

Opportunities
Central Tobacco Research Institute at Rajahmundry has

been entrusted with the research for development of alternative uses of Tobacco in view of anti-smoking campaign. India's share in world cigarette production has remained at around 1.7% whereas India's exports of around 2.8 billion sticks of cigarette per year amounts for less than 1%of the world export of cigarette. Threats Various N.G.Os and Forums against the use and consumption of tobacco.The passing of various bans on smoking.

Conclusion With an increase in the world import requirements translating in to a rise in export potential, Indian Tobacco industry is presented with significant opportunities to consolidate and extent its position in the global market.

MARKET SIZE & FORECAST

continued to grow for the sixth consecutive year and registered a record performance during the fiscal 2011-12 surpassing all the previous records on three countsthe exports have surpassed- 200million kgs mark in quantity terms and Rs.2000 crores mark and US$500 million mark in value terms. Exports of tobacco and tobacco products increased by about 13% in quantity terms and 17 % in rupee terms on yo-y basis. In dollar terms the increase is about 32%. This is a record performance

Positioning:
Positioned to the Indian consumer as the Quality

product at cheap price ( More for Less) Positioned to the exotic customers as a Premium product at competitive prices and best quality product. Positioned as a Cigarette, which has the minimum burning smell from the mouth after consumption and good to taste in comparison with the other brands.

Competitive Advantages:
Unique taste than the other brands.
Provision of extra filter with the packs of

Strong and mild. Best quality provided at reasonable Price. Low smoke Avoid the burning smell from the mouth of the consumer. Provide better consumer satisfaction than the other products in the market.

Pricing:
Price penetration strategy to be used. Premium Strong@ Rs.60 per Pack of 20

Premium Mild @ Rs.50 per Pack of 20

Expected Production:
3,000 Cigarettes by a roller everyday or 9,000 Master

Boxes annually by 100 rollers.

9,000 Master Boxes

60% Domestic

40% Exports

5,400 Master Boxes 3,600 Master Boxes @ Rs30/light packet @0.08$/Packet- $48 @ Rs.35/mild Packet@ Rs4 0/strong PacketNote:- One box contains 10 such packets and 1 master box accommodates 60 boxes

MAJOR BRANDS

Prospective Markets:
Geographically: Rajnandgaon, Durg, Raipur, Doongargarh, Bhilai etc in Chattisgarh. Nagpur and neighboring places in Maharashtra. Growing markets of A.P., U.P, Jaharkhand and Bihar. Exotic markets like Russia, Iraq, Canada and Germany

Demographically: Age: 18 and above Sex : Male Income Level: Medium and Low

Legal Bindings:
1.

2.

3.

4.

Apply to the Directorate of the Industries depending upon the location of the unit i.e. for a provisional cigarette Unit registration in the form prescribed by the development commissioner New-Delhi. We have to get clearance from the specified industry through the directorate Of Industries and then approach for the provisional SSI registration unit. After the clearance the Industry Center will forward the complete set of applications received from us to the Municipality. After Getting the permission we would be able to establish our Cigarette Manufacturing Unit.

Clauses required:
No Objection Certificate (NOC) on pollution angle from the department

of technology and Environment. Approval of factory building and machinery layout from the inspector of factories. Site clearance from the town and the country planning department Permission for land use, conversion and ground water clearance from agricultural department. Power feasibility certificate from the electricity department. Clearance from health and revenue Department. License from Food Administration for the canteen in the premises.

License from the civil supplies department

Promotional Techniques:

Sponsorships to local cultural and sport events.

Rickshaws. Posters at the points of sales. Internet for Exotic Markets.

THREATS OF SUBSTITUTE PRODUCT DIFFERENT CIGARETTE CIGAR HUKKAS

POWER OF SUPPLIERS 1. IF THE SUPPLIERS STOP TO SUPPLY US RAW, MATERIAL 2. LATE SUPPLY 3. BAD QUALITY 4. HIGHER PRICE

RIVALRY AMONG COMPETING SELLERS IN THE INDUSTRY 1. EXISTING CIGARETTE MARKET. 2. LOCAL POPULAR EXISTING BRAND IN BIDI LIKE MEGHNA, 501 PATAKHA

POWER OF BUYERS 1. TASTE IS DISLIKED 2. NEW CONCEPT HIT THE Cigarette MARKET 3. CHEAP PRICED HIT THE BUYERS

POTENTIAL NEW ENTRANTS NEW COMPANY CAN EMERGE GOVERNMENT CAN ENCOURAGE THE Cigarette MAKERS.