Can you relate by any chance 5 millimeters and 18 % ???? And what does this relation has to do with Indian tobacco giant ITC ???? Can you guess it ?
Last friday, ITC came out with its Q4, 2014 results and the company profits jumped nearly 18%. Analysts attributed this jump in profit to an intricate aspect. I never thought it was such an important aspect and it have this much big impact.
ITC reduced the size of its low-priced cigarettes by 5 millimeters. This helped ITC in two big ways. First ITC got eligible for lower government tax due to its small size. Second its profit jumped by 18 % as customer consumed it more.
Cant say, this might qualify for Business Process Re-engineering (BPR) too. But definitely yes, this is a Marketing Gimmicks.
No comments:
Post a Comment