Case Study: Ceylon Tobacco Company (CTC)

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Chapter 1.0
Ceylon Tobacco Company (CTC)

Chapter 1.1: Introduction

CTC is the only legal cigarette manufacturing company in Sri Lanka. Cigarettes are the most popular form of tobacco in the country. Most smokers in Sri Lanka smoke a handmade cigarette called beedi, often in addition to cigarettes. About 60% of smokers are estimated to purchase single stick cigarettes.
The Sri Lankan cigarette market is on a decline, with the pace of decline escalating because of the implementation of the National Alcohol and Tobacco Act in December 2006. The 84% British American Tobacco owned CTC is the only legal cigarette manufacturer in Sri Lanka. The total marketable space is 4.8 billion sticks. The beedi market is around 2.3 billion sticks. According
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The intended role of the brand is to drive innovation and choice in the key value driving (mainstream) segment through a truly International and ASU30 focused offer.
With a history dating back to 1899, Pall was pronounced to be one of the key GDBs of BAT in 2004. Since then, this dynamic drive brand has done so well that the brand’s vision now strives “To double volume, treble brand margin, and become the leading International VFM brand by 2010.” Today Pall Mall is available in over 120 countries and it the fasted growing GDB of the group. • John Player Gold Leaf
John Player Gold Leaf (JPGL) is the mainstream brand and is the main profit driver for CTC accounting for over 80% of total profit. JPGL enjoys the dominant brand status in the tobacco industry with 4 out of 5 adult smokers preferring JPGL as their regular brand. This also makes JPGL as one of the leading FMCG brands in the Sri Lanka market. Role of JPGL in CTC portfolio is to deliver NTO growth by retaining core smoker base at higher price points, in line with Government price increases.
JPGL today sold in over 20 countries and is particularly popular in South East Asian countries and the Middle East.

• 3 Roses/ Capstan/ Four

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