GOLD FLAKE

CHAPTER VII

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SWOT ANALYSIS

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STRENGTHS

1) The main strength of the company is the brand Image of Gold Flake. In spite of ban on the advertisement the product was at No.1 position in F !G products in "##$%"##& and its sales were up to 's $(## crores.

") The attributes of the product is as per the consumer aspirations) specifications and taste. It has high perceived *uality+ it is affordable by the consumers. This factor has helped the company to keep steady margin of its sales volume.

$) The company has an e,cellent distribution channel of network which has enabled the availability of products in different regions as per the consumer demand and supply for the product.

&) The Gold Flake brand name has been promoted through vacation tours -Gold Flake Golden Getaways.. IT! has also paid Indian tennis stars to endorse Gold Flake cigarettes. /) In umbai) Goldflake from IT! holds the lion0s share of the market selling

1# million sticks. Four 2*uare special comes second with // million sticks and 3ills is third

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WEAKNESS

1) The main weakness of the company is that after the ban on advertisement it is not able to promote the product on higher basis as it was promoted before the ban.

") The other weakness is the manufacturing process which is very time consuming. 2ometimes it is very difficult for the company to supply the cigarettes as per the demand+ it is because the demand of Gold Flake is increasing rapidly.

$)

ost the times the consumer prefers the price of the product first and then the *uality and other factors. The price of Gold Flake is 's $&4% therefore as a high price product the *uality is ignored by the consumer and then they prefer to buy 5bidis6 or 5pan6.

&) The ne,t weakness is that the company is not able to build a further brand image due to the ban on advertisement. The branding of the company is done on small basis which is hardly ever seen.

/) IT! not only manufacturers Gold Flake but also 3ills Navy !ut) 7ristol) Four 2*uare etc. It becomes difficult for the company to differentiate and
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decide the *uality) price and other factors of the cigarettes while manufacturing and distributing.

OPPORTUNITIES

1) The opportunity of the company 8IT!) is to reduce the price of the product and offer the same *uality. This will increase the sales volume of the company.

") The packaging of the product should be changed and each and every attribute should be mentioned on the packet and also the level of harmless should be mentioned. This will help in 53ord of outh6 marketing.

$) 9s IT! is being recogni:ed as 3orld0s 7est 7ig !ompanies and the 3orld0s ost 'eputable !ompanies by Forbes maga:ine) the company can launch Gold Flake at international level through collaboration with sports events held at international level and also with other brands.

&) In India the company can launch the product Gold Flake as mild cigarette and less harmful for consumer attraction.

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THREATS

1) The threats of the company are competition from international companies. The main competitors are arlboro) arlboro ;ights) and /// cigarettes. These companies are famous at international level and also as an imported cigarette brand with affordable price+ the consumers prefer to buy them.

") The promotion done by the company of Gold Flake is through advertisements in maga:ines and sponsorship) where as the advertisement of the international companies like arlboro and !amel is done on international level) like sponsorship to Ferrari team in Formula <ne and also to 2uper 7ike racing. !amel cigarettes give sponsorship to 'ally 'aces in 9frica and =>. This is the biggest threat to the brand image of the company at national as well as international level.

$) The ne,t threat may also be the changing habits of the consumer+ they may *uit smoking due to its ill effects and ha:ards. This may affect the sales as well as the brand image of the product
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&) In future the government may completely put ban on advertisement of cigarettes or also put a ban on sponsorship under the consideration that cigarette is harmful for health. This will be the biggest threat for the product as well as the company.

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