CONSUMER

BEHAVIOUR FOR
CIGARETTES

Prepared By:
Sunmeet Kaur -21
Kunal Kapila – 24
Ashish Pareek -38 Prateek Teotia-49
Harmeet Singh-50
 Objective
 Tostudy the Consumer buying behavior in a Cigarette
industry.

 Details:
 Industry: Cigarette Industry

 Targeting:Cigarettes are popular with people of all

ages and both the sexes.Our target is the same.

 Areaof Survey: Cigarette outlets (shops and

paanvalas) in Ghatkopar, Vidya Vihar, and the
supermarket haiko in Mumbai.
ORGANISED STORE : HAIKO
SUPERMARKET
 Located at: Haiko Super market ,
Hiranandani, Powai

 Timings: Monday to Sunday 8am to 11pm

 Available range: Grocery products, alcohol,

cigarettes

 Shop arrangement: Cigarette packs kept near

the counter
CONSUMER1 (30YRS/M)
Product demanded Specific (Classic regular)

Mood Relaxed
Came with Came alone
Price Sensitivity Not price sensitive. As one gets cigarettes at a standard rate.
Attitude Confident, risk taking, talkative etc.
Flexibility towards brands Low, generally people who smoke prefer their own brands, and stick to their
brand
Interaction with shopkeeper Low
Total time taken 5-10 min.
Additional behaviour Chain smoker as he was smoking before entering the store and bought a few
more packs later on.
Negotiation No, as cigarettes are sold at MRP only
Amount paid Cash, paid the exact amount of Rs 100.
Buying Process The buying process did not take much time as he knew which brand he wanted.
He just took his pack of cigarettes and went back.
CONSUMER 2 (35-40YRS/F)
Product demanded Not specific,as she was looking for various options in lights/mild category .
May be she wanted to switch from regular brand to lights .
Mood Tired of shopping.
Came with Friends.
Price Sensitivity Not price sensitive. As one gets cigarettes at a standard rate.
Attitude Socialite.
Flexibility towards brands High, looking for variety in milds. Taking opinions from her friend and the
shopkeeper.
Interaction with shopkeeper High
Total time taken 20min
Additional behaviour Impulsive from her conversation.
Came for shopping for grocery and other products , saw cigarettes and
decided to purchase it.
Negotiation No, as cigarettes are sold at MRP only
Amount paid Paid through credit card.
Buying Process She seemed to have come for routine shopping and to buy cigarettes. Took
time to enquire about the brand as she got into a conversation with her
friends regarding the brand. Eventually took her brand and went away
CONSUMER 3 (50YRS/M)
Product demanded Was looking for variety but in American brands though the store had only
Indian brands .
Mood Relaxed, calm but confused regarding the quality of Indian brands

Came with Girlfriend.

Price Sensitivity Not at all price sensitive

Attitude Cool

Flexibility towards brands High but in the American range. Was concerned about the tobacco content in
the Indian cigarettes
Interaction with shopkeeper High

Total time taken 30 min

Additional behaviour Chain smoker as he was already carrying a pack and wanted to buy more.

Negotiation No, as cigarettes are sold at MRP only

Amount paid Cash paid Rs 200

Buying Process His prime purpose of being there was shopping and he happened to buy the
cigarettes incidently. Enquired thoroughly regarding all major Indian brands
and took good 10-12 mins with the seller for his own satisfaction
UNORGANISED STORE : CIGARETTE
SHOP
 Located at : Main Road, Outside KJ somaiya

 Open from :Monday to Sunday 8am to 12pm

 Range of products :Cigarettes, candies and

Mouth-freshners.

 Shop arrangement :Cigarettes were arranged

in the shelves
CONSUMER1 (17YRS/M)- STUDENT
Product demanded Optional

Mood Playful, relaxed and chilled out

Came with Friends

Price Sensitivity Yes they were price sensitive. Were looking for a cigarette ranging from Rs 1 - 3

Attitude Casual and risk taking.

Flexibility towards brand Not much

Familiarity with Not much

shopkeeper
Interaction with Yes as they were looking for low range cigarettes , asked for brands like Navy cut, Charminar, Four
shopkeeper square
Total time taken 8 - 10 mins

Additional behaviour They were inexperienced people and were risk taking guys. Not at all health conscious

Negotiation No

Amount paid Paid a total of Rs 10 including the price of mouth freshener

Buying process The 2 school boys came in uniform. There was price constraint as they were not earning. After
buying cigarettes they had a mouth freshner and went away. It took only 8-10 mins in all
CONSUMER 2 (40YRS/M)-RIKSHAW PULLER
Product demanded Specific
Mood Seems to be tired of work .
Came with Came alone
Price Sensitivity Yes he was price sensitive. Due to income constrain could only look to afford
beedis worth Rs 2-3
Attitude Impulsive
Flexibility towards brand Not at all . he was extremely happy with smoking beedi
Familiarity with shopkeeper Yes he was somewhat familiar with the shopkeeper, as he was having a
conversation with him while smoking
Interaction with shopkeeper High. He was talking to the shopkeeper in Marathi while smoking the beedi
Total time taken 10 min
Additional behaviour Aggressive and extrovert
Negotiation No
Amount paid Paid Rs 2
Buying process Got out of his rickshaw and ask for the beedi and bought a pack of it. Smoked
a beedi as he spoke to the shopkeeper in Marathi. After smoking he left in
rickshaw only after managing to get a passenger
CONSUMER 3 (25YRS/M)- ADULT
Product demanded Specific
Mood Happy – Go- Lucky types.
Came with Alone
Price Sensitivity No he was not price sensitive as he went for one of the most expensive cigarettes

Attitude Cool and casual

Flexibility towards brand No he was not looking for variety as he demanded only one brand Benson &
Hedges
Familiarity with No
shopkeeper
Interaction with Low
shopkeeper
Total time taken 2 mins
Additional behaviour Confident.

Negotiation No
Amount paid Paid Rs 120 for the pack.
Buying process He got out from his car. Asked for his brand of cigarette and happydent white. Paid
the amount. Took out one cigarette and lit up that with his zippo and then left in
his car
FINDINGS-: ORGANISED STORE

Customers buying from such stores were:

 High income group.

 Not at all price sensitive.
 Brand loyal.
 Involved in a fast buying process.
FINDINGS-: UNORGANISED
STORE
Customers buying from such stores had
different traits:

 Student: Due to money constrain bought only

low cost cigarette.
 Auto-rickshaw Puller: due to low income
could buy only beedis
 An Outgoing Youngster: was sure of his brand
and seemed brand loyal.
KEY DIFFERENCES
 Cigarettes were consumed on the spot unlike in
organised sector, where they were bought for future
use also.

 Another noticeable difference was that there was no

female buyer in the unorganised sector.

 Unlike in organised sector boys in their school uniform

also had access to cigarettes in unorganised sector.

 In unorganised sector, Cigarettes were easily available

in numbers and there was no need to buy the pack.
CONCLUSION
The consumer behaviour varies in the two
sectors in respect to many factors

 Income of consumer-High/Low
 Taste and preference- High-Low Variation
 Buying process-Fast/Comparatively Slow
 Situational Behaviour-Future/On-spot
 Brand Loyalty-High/Low