marketing management

1. Surya Nepal Private Limited-Cigarette
Presented by:
Bhoj Raj Kafle (153)
Prawesh Baral (157)
Pushpa Poudyal (159)
Rajan Nhemaphuki (160)
Rojan Shrestha (163)

2. Introduction
Background
• Surya Nepal Private Limited (SNPL) is an Indo-Nepal-UK joint venture, which
started operations in Nepal in 1986.
• Corporate vision “Enduring value for all stakeholders”
• Maintain the environmental policy, EHS policy and Quality policy to be
leading industries in Nepal.
Logo
• SNPL logo reflects the passion for quality and
excellence to create enduring value for all its
stake holders.
• The mountain stands for its deep roots in Nepal
and symbolic of our position as the nation’s
foremost professionally managed company.
• The rising sun stands for leadership as well as
our passion for excellence.

3. Surya Nepal
Pvt. Ltd.
Tobacco
Division
Garment
Division Agarbatti
Safety
Matches

5. Competitors
• Janakpur Cigaratte Factory: - Yak, Deurali, Gaida, Kasturi and Lahure
• Gorkha Lahari Pvt. Ltd. : - Nepal Gold Flake, Sahara filter, Bahar Special plain,
Bigul plain, Brown filter kings, Gorkha filter, Style filter, Winner filter and
Action kings.

6. Consumer
Segment
Geographical Demographic Psychographic Behavioral

7. Geographical Segmentation
 Urban Areas: - Surya Classic, Surya Luxury Kings, Surya Light and Shikhar
 Rural Areas: - Khukuri, Pilot, Bujili and Chautari

8. Demographic Segmentation
 Age: Teenage, mature adult and old age people.
 Gender: - All gender
 Generation: -
Bujili, Chautari and Pilot old generation
Shikhar youth above 20 and below 25.
 Social Class: -
Surya Classic and Surya Luxury Kings premium segment
Khukuri general segment
Bujili, Chautari and Pilot price sensitive segment

9. Psychographic Segmentation
 Personality: -
Shikhar light smokers
Khukuri legendary smokers.
 Psychographics: - Usually preferred during frustration and anxiety

10. Behavioral Segmentation
 Usage Rate:
Light smokers Surya Lights, Surya Luxury
Heavy smokers Khukuri, Pilot, Gudang Garam
 User Status:
Khukuri for regular users
Shikhar Menthol and Surya Polar ice for ex-users

11. Development of the Product
• Surya Nepal Pvt. Ltd. is a joint venture between BAT (British American
Tobacco), ITC Limited and Nepalese entrepreneurs.
• Established in 1987.
• Initial Product Naulo and Bijuli
• Later it is diversified into Surya, Shikhar, Khukuri and Chautari.
• Premium segment 95% of the total market share
High segment 82% to 85% of the total market share
Lower segment 60% of the total market share
• It has the largest and strongest distribution network coverage in amongst
all the FMCG companies in Nepal

12. Stars
Surya Luxury Kings
Surya Lights
Shikhar
Khukuri Filter
Question Marks
Shikhar Menthol
Shikhar Lights
Surya Classics
Cows
Pilot Filter
Bujili
Dogs
Chautari
Relative Market Share
MarketGrowthRate
High
High
Low
Low
Boston Consulting Group (BCG) Matrix of Surya Nepal Cigarette

13. PEST
• Political Factor:
– Tax
– Ban on Ad.
– Warning/Graphic warning.
– Ban on sales of cigarette to under 18 & to pregnant
woman.

14. Economic Factors
• Existing market rate and pricing policy.
• Propensities to spend on cigarettes.
• High import duties.

16. Social Factor
• Tradition of Hukka, Surpa and Chilimey.
• Smoking cigarette is treated bad habit.
• Smoking by woman is considered as untolerable.
• Hesitance to talk about it and consume it.
• Anti-smoking public awareness programme.

17. Technology
• Customer’s needs and preferences.
• Quality :Flavor, Filter, nicotin level.
• Machining time.

18. SWOT Analysis
Brand Loyalty
Price
Few competitors
Innovation
Distribution
Launch of new brands
New filter brands
Premium
Huge capital
Weaknesses
Opportunities
Monetary and Fiscal Policy
Competitors
WHO
Employee resistance
Threats
Strengths
External Factor
Internal Factor

19. Marketing Strategy
A. Customer Value Proposition
 Variety in flavor and content of nicotine level of different SNPL cigarette
product.
 Targeted different category of people with different products.
 Constantly pursue newer and better processes, products, services and
management practices

20. “We are always customer-focused and will always strive to surpass customer
expectations in terms of value, product quality and satisfaction.”

21. B. Positioning: -
• One of the pioneers in cigarette factory in Nepal.
• It has over 70% to 75% of the total market share of the
cigarette industry in Nepal in terms of value.
Surya Luxury Kings has been positioned on the platform
of “inspirational leadership”. Surya Lights was launched
in 2001 and is the largest lights brand in the country
today.
Surya is premium
Shikhar is positioned on “Safalta ko Life”.
Khukuri is positioned as “Sahashi ko ek matra chahana”.
• Surya Nepal used its brand made from Cigarettes
industry & made the company diversified into
globalization.

22. COCO CHANEL
In order to be irresplacable,one
must always be different .
Why to be different?

23. C. Differentiation: -
• Determined to find out the customer taste and requirements
• Since after lauching Surya luxury kings, Shikhar filter kings, Khukuri
and Chautari, it has adopted product development strategy and
launched product like Surya light, Shikhar light, Shikhar Menthol
and so on.
• The SNPL is still making an effort to launch new product for the
market place to surprise the consumer of cigarettes with new taste
of cigarette.

24. Marketing Mix
• Product
• Price
• Promotion
• Place

25. Product
A. Brand B. Sizes:
 According to Size of Packet: -
Small: - 10 cigarettes per packet
Large: - 20 cigarettes per packet
 According to Size of Filter: -
Regular Size: - Filter length = 69 mm
King Size: - Filter length = 84 mm

26. Price
S.No. Product Category Price for Large Size (Rs.)
1 Surya 24 Carat Kings 160
2 Surya 24 Carat Lights 160
3 Surya Luxury Kings 150
4 Surya Lights 150
5 Surya Polar Ice 150
6 Shikhar Filter Kings 110
7 Shikhar Lights 110
8 Shikhar Menthol 110
9 Shikhar Special Filter 80
10 Khukhuri Filter 65
11 Bijuli Filter 35
12 Pilot Filter 50
13 Chautari Filter 35
14 Bujuli Plain 25
15 Chautari Plain 25

27. Promotion
A. Public Relation
SNPL Asha: “Creating enduring value through community empowerment”
SNPL Khelparyatan: “Creating enduring value through sports and tourism”

28. SNPL Prakriti: “Creating enduring value through environment preservation”
SNPL Suswasthya: “Creating enduring value through community health”

29. Place
A. Distribution Channel:
• Comprises over 5,000 wholesalers, and over 85,000 retailers.
• Competency to provide timely delivery of the product through the
presence of the depots which makes the company efficient and effective
to deliver the product.

30. Thank You