Page |1

BUSINESS ENVIRONMENT

TERM PAPER

TOPIC: CIGAR AND CIGARETTE OF

TOBACCO AND TOBACCO
AND
ITS SUBSTITUTES

SUBMITTED TO :- SUBMITTED BY:-

ACKNOWLEDGEMENT
 Page |2

The real spirit of achieving is through the way of excellence of austere discipline,
without which I would never have succeeded in finishing it without the co-operation,
encouragement and help provided to me by various personalities. With this deep felt
consent and pleasure, I would like to express my heart felt gratitude to all those who
helped me in preparation of this term paper.

It gives me immense pleasure in expressing my deepest and sincerest gratitude

towards my project guide Mr. Pankaj Jain (lect of Business environment) and for
their considerate help, inspiring guidance throughout this work.

I shall be failing in my duty if I do not thank all the other Quality Personals and
other lect. for source of constant encouragement and co-operation, throughout my
project.

I would be defying if I do not mention my constant source of inspiration and

vitality, that is, my parents who invested their present for my future and for their
co-operation, support & encouragement without which I could not have seen the
light of the day.

INDEX
 Page |3

CONTENT PAGE NO.

1) INTRODUCTION TO TOBACCO
WORLD…………………… 4
2) TOBACCO USE IN INDIA……………………… 5
3) S.W.O.T ANALYSIS OF TOBACCO INDUSTRY…… 7
4) MAJOR PLAYERS OF TOBACCO INDUSTRY…….. 8
5) SWOT ANALYSIS OF ITC………………. 10
6) SWOT ANALYSIS OF GODFREY PHILIPS………… 11
7) SUBSTITUTE TO TOBACCO PRODUCT………… 15
8) ILLEFFECT OF TOBACCO CONSUMPTION……… 17
9) ANTI-TOBACCO CAMPAIGN………………………… 20
10)PEST ANALYSIS………………… 23
11)ARTICLE RELATED TO TOBACCO……………..
12)
Page |4
 Page |5

INTRODUCTION OF TOBACCO WORLD

Growth of tobacco takes place in world at extensive sector it is grown in 125 countries and over
4 million hectare of land and china is third in it. If we estimate total revenue or worth of the
tobacco revenues collected is approximately US$ 120 billion. In 1960 the total bulk was shifted
from America to Asia and Africa.

In America land which was under tobacco cultivation has been halved and also in Canada and
Mexico but has doubled in china, Malawi and Asia. Total consumption of tobacco and cigarettes
has been rising rapidly but in some countries it is decreasing. The main reason of increasing
smokers is that population is increasing rapidly and if it increased like this there will be 2 billion
more people in this world Tobacco consumption is growing like an epidemic disease. As the
production is taking place it states that there is 1000 cigarettes for each man, woman and
cigarettes on the planet. Cigarettes generates 96% of sales out of total value sales, and Asia is
one of the biggest consumer of tobacco and along with them Australia and far east are walking
side by side and data is (2715 billion), Followed by U.S (745 billion), Eastern Europe and
Former soviet union(631 billion) The total will be showing some developmental sign because by
2020 it is expected to rise to 1.6 billion. Current scenario states that tobacco causes death of
about 3.5 to 4 million people every year which is estimated to increase to 10 million by 2020 and
not only this is restricted to rural areas but also an issue of concern for the developed countries
because it may rise to 7 million in these areas mainly due to increasing trend of tobacco. In India
tobacco consumption is on toll or major health hazard here. Association of smokeless tobacco
use with oral cancer was pointed out in 1908.tobacco comes in two forms smoking and
smokeless form but both are the major player in causing harmful disease to human body. Smoke
tobacco causes disease like cancer where as smokeless cause cancer of oral cavity, pharynx,
Larynx and Esophagus.

Major players in tobacco field especially in cigarettes markets are:-

1. ITC (Indian tobacco Company)

2. Goldfrey Philips India Ltd.

3. GTC Industries

4. VST Industries Ltd.

 Page |6

5. Dalmia Consumer Care

6. Kothari product Ltd.

ITC is leading the cigarettes pack with 75% share holding in the market. Despite high rates of
taxes it is able to maintain its number 1 position due to which other players are also making new
strategies to sustain their market share.

TOBACCO USE IN INDIA

The world’s largest tobacco control event that is 14th world conference on tobacco and health
was held on March 8th to 12th in Mumbai. This conference divided the world into 4 stages on the
basis of tobacco consumption and these stages were:-

Stage 1:- In this stage smoking is not widely prevalent (example sub Saharan Africa)
Stage 2:- Well in this stage smoking becomes more common and men do smoke at higher level
that is 50% to 80% men smoke and 10-15% women. (Example China, Japan, South- East Asia &
North Africa)

Stage 3:- Awareness about the ill effect prevails in a country and percentage of men smokers
comes down to 40% where as women percentage rises to 35%-40% which is the peak after this it
also declines. This generally prevails in the higher educated groups or population.(example Latin
America, Central & Eastern Europe)

Stage 4:- In this stage smoking generally declines. The percentage of smokers both male and
female goes down due to awareness among them regarding hazardous consequences of tobacco
consumption.

INDIA is in second stage where low income socio economic groups are more prone to smoking
whereas in country like china high income groups lit their cigarettes to show their status and
style or in other words a sign of status symbol. Here is the data of total percentage of various
tobacco consumers in India:-
 Page |7

We are not as other countries which are in stage two as there are increasing number of women
smokers is much at toll if we compare it with India but think about that time when it will be
increasing at great speed and it will because in lo class areas it is because if lack of education and
illiteracy and in upper class it is becoming a status symbol and they think smoking is Cooooool.

According to Data provided in Times of India there are 229 million male smokers which is
second after china 331 million and among female it’s less as compared to male 5 million which
smokes Bidis and Cigarettes. India is the third largest producer of tobacco after Brazil and China.

SOME IMPORTANT FACTS ABOUT TOBACCO

1. One out of every 5 deaths is caused by tobacco.

2. In India each year consumption of bidis is 108 billion which means 22 crore each hour.

3. Bidi consumption is 7 times higher than cigarette consumption.

4. Consumption of tobacco is increasing in developing countries. India is one of its victim

5. Quitting of smoking is not easy as it says that only 3 % smokers manage to quit and many re-
starts again.

6. 10-40 % students in schools smokes and 70% in colleges of Mumbai are prone to smoking and
chew guthka.

7. 40% families lost their bread earner every year due to tobacco.
 Page |8

SWOT ANALYSIS OF TOBACCO INDUSTRY

STRENGTHS:
• India is one of the largest manufacturer in terms of tobacco production
• It is one the traditional items in India foreign trade, and is helping India to earn lots of
foreign exchange.
• India is leading tobacco exporter of the world.

WEAKNESS:
• Taxation policies are the main weakness of the tobacco industry as government always
increases tax burden on this industry to bring it out of the reach of rural people.
• Now tobacco ads have been prohibited. Government has banned advertisement of
tobacco products on any type of media.

OPPORTUNITIES:
• Well the biggest opportunity for the tobacco industry can be to get hold of the foreign
market by reducing its subsidies and applying that money in the foreign market.
 Page |9

THREATS:
• NGOs are the biggest threats to the tobacco industry as they are always ready with a new
campaign to prohibit tobacco usage and all things.
• Another threat is smuggled tobacco products or cigarettes which is somewhere harming
Indian market as smuggled cigarette does not have excise duty on it and its supply is
cheaper.

Currently ITC is the major and leading player in Indian market holding about 75% of market
share. The company is able to show consistency in its leadership behavior because of focus on
consumer values and significant investment in product designing and along with them
innovation, manufacturing technology, quality, marketing and distribution

MAJOR PLAYERS OF TOBACCO INDUSTRY

1. ITC (Indian tobacco Company)
2. Goldfrey Philips India Ltd.
3. GTl Industries
4. VST Industries Ltd.
5. Dalmia Consumer Care
6. Kothari product Ltd.

DESCRIPTION
 P a g e | 10

ITC: - Under the shadow of Chairperson Y.C DEVESHWAR ITC has been to attain number
one position in tobacco market. Insignia, Gold flake, Classic, Silk Cut, Navy Cut, Scissors,
Capstan, Berkeley, Bristol and Flake, India kings. These are the renowned brands of ITC yes
Indian Tobacco Industry. It is the market leader in India in terms of cigarettes. Incorporated on
August 24, 1910 it was registered under the name of Imperial Tobacco Company of India limited
but as the holding were in Indian hands thus its name was changed to INDIAN TOBACCO
COMPANY.

ITC VISION:
ITC vision is to sustain number 1 position in the market and to give world class performance,
and to give full value for its money to its customer, employees and shareholders.

ITC MISSION:
To provide sustainability to its shareholders and to provide better environment which is
globalized and to deliver superior value to the customer.

ITC CORE VALUES:

Its core values are related to its customer only. Its core values also revolve around customer and
stakeholders. It is to develop good relation with customer and main focus should be on customer
as it is the bread and butter of the industry.

HISTORY AND CCURRENT STATUS:

• 24th august 1910 ITC came into existence by the name of imperial tobacco company of
India limited.
• Year 1974 was the year of transformation because in this year itc ownership was in the
hand of Indian persons and that was the time when its name was changed from imperial
to Indian tobacco company
• In 1975 company launched its own hotel business.
• Presently it is serving 100000 markets and near about 2 million outlets in Indian markets.
•

SWOT ANALYSIS OF INDIAN TOBACCO CORPORRATION

 P a g e | 11

STRENGTHS
• ITC is the biggest and the largest player in the tobacco world. Currently it is holding 75%
of share of the market and is the market leader inn terms of holding and sales.
• Gold Flake is one of the brands of ITC and it is holding 70% of tobacco market and is the
largest FMCG brand of India.

WEAKNESS:
• ITC is the leader and dominator in cigarette market but still it has loose foot in Cigar
market which on the other hand is dominated it well known rival GOLDFREY PHILIP
Which is leading in the sales of cigar in India?

OPPORTUNITIES:
• Being a leader in domestic market now ITC is moving into emerging market of eastern
Europe and Africa etc.

THREATS:
• The first and the and the obvious threat to INDIAN TOBACCO INDUSTRY is from
national rival and international rivals.
• ITC opportunities can also be opportunities for other companies as they can also take the
same step as ITC will take in the future.

Not only is this now ITC expanding its feathers in FMCG (fast moveable consumer goods)
market. It has entered with big product line and some of them are –Fiama di wills shampoo,
Vivil soaps, Sun feast biscuits, and many more.

GODFREY PHILIPS IND.LTD:- It is the second largest player after ITC. Its market
holding in terms of volume is 12% and in terms of value is 11%. This company was incorporated
under the umbrella of K.K. Modi group founded by Rai Bahadur Gujarmal Modi in 1933 and
from that time there was no looking back.

The success of this brand is majorly depends upon its innovative processes, operational
efficiencies, and adoption of international standards processes. Some of the brands of Goldfrey
 P a g e | 12

Philips are Stellar, I-gen, Four Square, Jaisalmer, Red and White, North Pole, Tipper and many
more .Beside this it is also having tea business with brand names Symphony, Super Cup,
Samovar etc.

Goldfrey believes in the growth of itself with the growth of its pillars that is with those who are
working with it directly or indirectly. The best thing about them is that they welcome initiatives
and they want their people to initiate which leads to improved organizational performance.
Special words “GROW PEOPLE AND PROFITS WILL FOLLOW YOU”. The theory in
which Goldfrey believes, they always welcome young and fresh mind to be a part of their family.

It is the first company which has brought fragmented cigar in the market and I leading in this
particular brand where itc is not even competing.

SWOT ANALYSIS OF GOLDFREY PHILIP

STRENGHTS:
• Godfrey Philip is the second largest tobacco producer of India after ITC.
• Is the first company or sole company to produce fragmented cigars in the market where
ITC has no answer for it
• It is partnering with some big players in cigar market which somewhere increases its
brand value.

WEAKNESS:
• Keeping aside the cigar Godfrey has no other brand which is famous as its has lots one is
gold flake and other classic thus it does not have any other popular brand in its pocket.
• There is no sole authority for Goldfrey Philip as it has discussed above about its owners
which include some foreign companies also.

OPPORTUNITIES:
• For Goldfrey Philip it will be an opportunity if it expands its share in tobacco market
means invest in domestic market.
• Another opportunity is that as it is present in international market also thus it can search
for new markets in other countries.

THREATS:
• Its strength will be challenged in coming times as ITC will be entering into cigar market.
 P a g e | 13

• It is only having 12% share in the tobacco market.

GTL INDUSTRIES: - GTL took birth in corporate world in the year 1930 by the Late Shri.
Narsee Monjee. This is the only one company in tobacco industry which is purely INDIAN
means it is the first wholly owned indigenous company of the country. In 1979 a turnaround took
place and this company was overtaken by another renowned group DALMIA GROUP, headed
by Mr. Sanjay Dalmia as chairman & Mr. Anurag Dalmia as Vice Chairman. It’s the efforts of
Mr. JP Khetan (M.D) of Golden Tobacco and his team members that company offers awesome
and finest quality of tobacco not only this it also throws lights on manufacturing techniques,
professional marketing, good HR practice and quality control system.

“LEO TABAC” the first low tobacco cigarette was made by GTL in which 25% of tobacco
ingredients was replaced by a plant having smokable ingredients, after this the second substitute
of tobacco was also replaced up to 50% by a plant having smokable ingredients.

Carbon Monoxide and Nitrosamines are two main ingredients which causes cancer and while
nicotine which comes out while burning cigarette makes a person addict it doesn’t have any
carcinogenic properties in it. The 25% cigarette has been launched in Indian market and once it
start holding its position 50% will be introduced, it has been seen that in foreign demand for 50%
one is more and is been exported according to it.

Consisting of family of 2000 employees in manufacturing, purchasing, processing, sales and

marketing. Mumbai and Baroda are two production cities for Golden Tobacco Industry means
these are the two cities where production of cigarettes takes place. To facilitate its national and
international customer with fine quality of products Golden Tobacco, Vadodara has recently
implemented ISO 9001:2000 and is accredited by RWTUV.

Well renowned brands of GTC industries are:-

1. Panama:-. This cigarette is made of handpicked Virginian tobacco which produces a really
soothing smoke and fragrance of natural tobacco.

2. Chancellor: - This cigarette is made of American Blended Tobacco which while burning
produce a smooth smoke filled with rich aroma of Burley Tobacco

3. Esquire: - This stick is made for those who needs mouth full puff at each go.
 P a g e | 14

4. Panama Bullet: - Panama Bullet is non filter cigarette which is available in Indian market,
Due to its diameter it also produces mouthful of puff.

5. Style Mini Kings: - This is for those people who do not compromise on Taste and Brand,
an American blend produced from high tobacco grades.

6. Flair: - This is one of the strong brands of GTL it gives a strong fragrance and aroma to its
customer.

Slim Cigarettes:-
Miss diamond: - This is the cigarettes which represent style, slim with extra length to add a
status symbol having a touch of American blended tobacco.

June: - Made only for those who do like to carry themselves with rich taste and soothing smoke
of tobacco of Virginia which gives pleasant smoking characteristics.

DELIEVERY OF 25% VARIANT AGAINST 100% TOBACCO CIGARETT

100% TOBACCO 25% LESS APPROX.REDUCTION

TOBACCO
NICOTINE mg/cig 1.61 0.69 57%
TAR mg/cig 21.0 9.10 57%
CARBON 19.3 8.70 55%
MONOXIDE mg/cig
TOTAL TSNA 250.8 96.10 62%
mg/cig

DELIEVERY OF 50% VARIANT AGAINST 100 % TOBACCO

CIGARETTE
 P a g e | 15

100% TOBACCO 50% LESS APPROX.REDUCTION

TOBACCO
NICOTINE mg/cg 1.14 0.26 78%
TAR mg/cg 20.7 6.9 67%
CARBON 17.2 6.8 60%
MONOXIDE mg/cg
TOTAL TSNA mg/cg 831.9 419.1 50%

http://www.dalmiabrothers.com/gtc1.htm.

DALMIA CONSUMER CARE: - Dalmia consumer care is the part of Dalmia group
which includes businesses from industrial IT and chemicals. This traditional business namely
DALMIA CONSUMER GROUP came into existence into 2003, with a vision to develop a
product which will serve million of urban consumers with rural mindset. Dalmia consumer care
is continuously involved in various researches for the better health of the people and may of their
research have been patented. They carry their research at Dalmia centre for research and
development.

Two product of Dalmia consumer care have been introduced in market

1. Vardan (Tobacco Free Bidi)

2. Chabazza (A safe alternative to pan masala chewing)

The company has regional offices at MUMBAI, DELHI, HYDERABAD and KOLKATTA and
these two products are available in 1000 cities and at 700000 outlets in country.

DESCRIPTION OF PRODUCTS
1. VARDAN: - Vardan is the first non tobacco bidi which is made for the betterment of those
people who are in habit of smoking and chewing tobacco as they will not be able to quit and thus
 P a g e | 16

what vardan consist of is that it is made entirely of organic plants. It is tobacco free, non nicotine
and is not hazardous to health and it provides same feel of smoke.

2. CHABAAZA:- NO CUTS NO CHALLE yes this is the tagline of another product of

Dalmia consumer care that is chabaaza a brand new chewing practice, available in paan flavor. It
contains no supari, granules, magnesium etc and it does not cut your mouth from inside.

3. LUNG-KR:- This capsule is made of formulation of 3 herbs and it is experimented on 400

hundred patients to check its effect and result was it is safe to consume and had no side effects.
Basically this capsule is made for smokers because smoking damages lungs and this cure is made
to prevent lungs from the damages due to smoking.

Overall Dalmia consumer care is developing those products which will not harm human health
and will cater the needs of smoking also because somewhere they know that it is not easy to quit
smoking or tobacco eating habits thus to prevent people from hazardous consequences they have
found this way .

http://www.dalmiacare.com/products_display.jsp?prodId=4

Substitute to tobacco products

As it has already been discussed above there are 2 substitutes of the tobacco products

1. Vardan Bidi.

2. Chabazza.

These two products were introduced in Indian market in 2003 with a vision to make India free of
tobacco. These two products are made for those who are really prone to smoking habits means
who are really addicted to taking tobacco in any form either eating or smoking.

Vardan is the name of a bidi which is made up of herbal leaves which is grown in India. The
main profit of this vardan bidi is that it does not have tobacco content in it. Means to say that it
does not have nicotine, magnesium, or any other properties which can harm human body.

Vardan bidi is generally made for urban but it will cater rurally needs of the person. Dalmia
consumer care came out with this idea because most of the people or large part of India is
involved in bidi smoking thus they targeted major population of India.
 P a g e | 17

This bidi have same feeling o a normal bidi but it will not harm human body or even his lungs
and don’t have any side effect.

Another invention which came into market in 2003 was chabazza an alternative for chewing
tobacco. Chabazza was made for those who generally consumes tobacco in eatable form, and
due to this habits of those they generally suffers from cuts and ulcers in their mouth and severe
effect is that they suffers from mouth cancer and other several diseases of mouth and throat.

Chabazza is generally a mouth freshener in the form of gum lets which give the same feel of
chewing tobacco but is not harmful to human in any aspect.

These two products are really substitute of tobacco as they are fulfilling the requirement of
smoking and alsoe giving the same fee of smoke and other is giving the feeling of eatable
tobacco but not giving any harm to human being.

Now the only thing is to make people aware about this product as these are such kinds of
products which can bring down the rate of cancer, pollution, lungs disease, diabetes, and much
other harmful disease to an end.
 P a g e | 18

ILL EFFECTS OF TOBACCO CONSUMPTION

Ill effect or we can say dangerous effects of tobacco consumption are:-

1. Tobacco is responsible for cancer of various parts of the body such as lung,
mouth, throat, stomach kidney bladder.
Supporting facts are:

a. Largest number of people who are suffering from oral cancer are in India which I caused due
to tobacco.

b. It is the main reason of cancer in india because 56.4% men are suffering from cancer disease
and 44.9% women are suffering from this disease. Thus this shows the prevalence of disease in
our society.

c. Another achievement for tobacco is that 90% lung cancer is caused by consuming tobacco and
its variants.

2. Other bad effects of Tobacco consumption are diseases related to heart,

heart attack, chest pain, sudden cardiac death, stroke and other various
diseases.
Supporting facts are:-
 P a g e | 19

a. The main reason for lung disease is consumption of tobacco, it has been accounted that 80% of
the lung disease is caused due to smoking and all these habits.

b. It also causes lung tuberculosis indirectly. Means it is the source of TB, sources says that
persons who are prone to tobacco have 3 times more probability of tuberculosis than those who
are not. Thus is represents that heavier the smoking more prevalence of tobacco among smokers
will be there.

c. It also increases the blood pressure and slows down the flow of blood to the heart.

d. It also slows down the flow of blood to the legs and causes another leg disease that is known
as gangrene of legs.

e. Another effect is tobacco damages the lining of arteries all over the body.

f. Smoking not only causes problems to smokers but also to those who are living with hin.
Research have specified if a passive smoker, living with a person who takes two packs oof
cigarette per day’s likely to consume 3 cigarettes per day.

g. It also increases the risk of diabetes.

h. lowers good cholesterol in the blood.

i. smokers are more likely to develop disease of paralysis

3. Facts say that there is one death due to consumption of tobacco every 8th
second
Supporting facts:
a. Per year 800000-900000 lakh death are due to tobacco.

b. Avoiding the habit of tobacco ads on 20 years to life of a teenager.

c. It is estimated that in India deaths due to tobacco will rise rapidly in the coming years as
compared to other countries.

4. Smoking causes adverse effect in men and women

Supporting facts:

a. Smoking can one of the reason of men becoming impotence.

 P a g e | 20

b. it also decreases the estrogen level in women.

c. from studies it has been brought out that women who are likely to smoke and are prone to
taking birth control pills are more likely to get stroke.

d. pregnant women who smokes have greater chances of either loosing the baby or at the time of
birth certain effects can be there and after birth certain disabilities may be there.

5. HOW QUITTING TOBACCO CAN HELP

Quitting tobacco is really good for health:

Supporting facts:

a. First and foremost benefit of quitting tobacco is teeth will get cleaner and white.

b. Cancer is increasing at great pace it will slow down.

c. Cough which arises due to smoking will also disappear.

d. Close one and our relative will live in smoke free environment.

e. It will also decrease the risk of diabetes.

METHODS TO QUIT TOBACCO

a. The most common step is to hide ash trays out of sight of the smokers.

b. Not making things available easily to them means not making these things easily accessible.

c. Figure out which things gives or draws you towards smoking and one should try to avoid such
things at initial level. For e.g. if a person draws towards this habit due to his friend circle the nor
sometime try to avoid that company.

d. whenever one feels to smoke he should put something in his mouth ,,like chewing gum,
sweets ,anything.

e. One should set a date to stop this habit.

.
 P a g e | 21

Various tobacco control campaign have taken place in India some of

them are:-
1. The 2003 Tobacco Control Act

2. Ban on Public Smoking 2008

3. Pictorial warnings to appear on packs in May 2009, subject to the government winning
the court cases against this

4. Ban on Smoking advertising and showing it in movies also

According to Mr. Braj Prasad (Joint secretary from the Indian ministry of health and welfare)
says that the only problem can be of implementation of these programs in India. More
sensitization programs should be conducted at the state level so that the officers are strict about
implementations. Well I don’t think that it is the case of implementation of sensitization
programs, it’s the officers only which is the real problem because they are not performing well.

STEPS TAKEN BY GOVERNMENT

As mentioned above various tobacco control campaign, programs have been launched India and
all over the world to stop this usage and actively consumption of tobacco. Some of them are
mentioned above and there description is:-

1. Prohibiting of smoking in public places.-

a. Government is prohibiting smoking at all public places. By public place they mean any place
which is accessible by general public and it includes all auditoriums, hospitals, buildings, offices,
educational institutions, bus stands and many other places.

b. Government has mentioned to create smoking areas:- It is mentioned by the government to

create such smoking areas in airports, restaurants, hotels from where smoke does not come to
non smoking areas.

c. Displaying prominent non smoking signs in most of the public places..

These rules were implemented again and on 30th may 2008 new rules were
imposed on smoking and those were
 P a g e | 22

a. That now smoking will be prohibited at all public places such as cinemas,, restaurants,
airports, canteens, clubs, malls, bars and others..

b. Impose liability on the person in charge of smoking at public places to bring to their notice
that this is a smoke free place.

c. New board having signs of “No smoking and Smoking is an offence” is to be displayed at all
public places

2. Ban on advertisement, promotion of all tobacco products

a. Government has imposed ban on advertisement of tobacco product whether through any type
of media print, or audio visual.

b. They have also imposed ban on sponsoring any event by Tobacco Company our Cigarette
Company.

c. No person is allowed to promote any tobacco or related product.

There are certain rules in amendment for above discussed comes under
section 5 and those are:
1. Now ban will be imposed on all tobacco products which public get through vending
machine.
2. Prohibiting sale of tobacco or its products to minors’ means who are under 18 yrs of age.
3. All the centers from where an advertisement can be sold will be banned.
4. Shopkeepers cannot display tobacco products openly to prevent from minors.
5. Prohibiting showing tobacco ads in movies and cinemas and on television.

Ban on sale to Minors

a. Prohibition on sale to person who is below the age of 18yrs

b. government had ordered that it is the duty of seller to enquire

About the age of the person that he is not a minor.

c. Displaying a Board at selling point which will state “selling

 P a g e | 23

Selling of tobacco to minors is prohibited”

d. Keeping in view the tobacco accessing points for youth

Government had imposed ban on all selling points within 100

yards near schools, and colleges

e. Display board to be flashed outside the all colleges and

Schools.

Mentioning health warning on all products:-

a. All products which are related to tobacco should have health warnings on them.

b. The above warning should be pictorial in nature and descriptive also.

c. Indian as well as imported goods should also have the same warnings.

d. picture and matter should be displayed in the same language as other things will be written on
it.

PEST ANALYSIS ON TOBACCO INDUSTRY

PEST analysis stands for political, social, technological, and ecological.

Political factors :
Taxation policy:- this is the policy by the government in which it impose tax on tobacco industry
and its companies so that its consumption decreases. Because of rise in taxes the company will
rise the price of the cigarette and thus the rural person will not be able to afford it.

Restriction

There are various restriction on tobacco industries which is mentioned in tobacco act 2003 thus
such kind of policies plays an important role in decreasing the percentage of tobacco
consumption.

Social Factors:

Social factors include that business should be adequate to the society

 P a g e | 24

Today tobacco is not working according to society ans most of youngsters are getting prone to
this smoking and chewing tobacco thus this is not fit for the society.

Overall it is harming not only smokers also passive smokers

It is also increasing pollution and causing many harmful diseases.

Economical factors:-
These are the factors which affect business economically thus it is only the tax factors which is
able to affect the cigarette business and is able to bring its consumption down and until people
are addicted they will buy it.

Technological Factor:-

New cigarette is came into the market that is e cigarette which will only give the feel it does not
have any harmful effect

ARTICLES RELATED TO TOBACCO

Another campaign was launched by BILL GATES on anti smoking and India was
main focus.
Bill gates and Michael Bloomberg both giants are joining hands for a big anti-smoking
campaign.

The full expenditure of this campaign is about $ 5oo million and the main focus will be on India
and china.

Gates and Bloomberg said that this money will be deposited to the groups which are working
with government to reduce the consumption of tobacco in India. Name of these groups are World
Health Organization and Centers for disease and control prevention.

The main reason for this campaign is that in America the total numbers are decreasing rapidly
and it is estimated that tobacco market will be expected to grow to $464 billion by 2012 and all
big companies are looking for new markets outside specially developed countries.
 P a g e | 25

Bill along with Malinda foundation will be donating huge amount of $125 million and
Bloomberg will give 250 million.

Well both Gates and Bloomberg have given their views about increasing the taxes over the
tobacco and its products so that it can be brought out of the reach of the poor people and
banning the advertisement relating to promotion of cigarette even in movies and commercials
etc.

ARTICLES ON TOBACCO

According to a report prepared by all Indian institute of medical science (AIIMS).

It stated that in most cases the reason behind health problems is consumption of tobacco. By
several years research brought some important facts and those are:-

a. that by the year 2020 developing countries will contribute 70% deaths due to tobacco or
smoking.

b. Not this only in south East Asia there are 90% people who are affected by tobacco chewing
and smoking of tobacco.

They conducted a survey in which students ranging 10 - 18 years were taken and they were
handled a questionnaire and were taken to separate room where they were asked certain question
and also about their smoking likings and disliking .Thus a total of 3422 children were included in
this survey and about 57% boys and rest girls and the mean age came out was 14.2 years.

Thus the outcome of this study was that out of 5.6% (4.6% boys and .8 % girls were currently
consuming tobacco products, and this is not enough out of them 70% are consuming guthka

It also brought out that 55% of children consumed tobacco before the age of 13 and for 38 %
children it was firstly introduced by their friends, and nearly 25% children were influenced by
media that is television and all stuff

http://www.rediff.com/money/2008/jul/24gates.htm
P a g e | 26