Today…. Its All About Cigarette………. Razzak, Tamanna O

 More than half of all men and nearly one in three women use tobacco in Bangladesh, according to a latest study on tobacco consumption. Bangladesh ranked among top tobacco consuming countries where 57,000 people over the age of 30 die each year from tobacco-related illness. But it also revealed that the net loss to the economy due to tobacco is much higher than revenues earned from tobacco in the country. So here I am going to discuse about some of our Domestic Cigarettes and some Foreign Branded Cigarette

Product Name & PictureWholesale PriceRetail Price SEIKH25tk/packet30tk/Packet Hollywood25tk/packet30tk/Packet K225tk/packet30tk/Packet Akij6tk/packet7tk/packet Gofur6tk/packet7tk/packet Aziz6tk/packet7tk/packet

Product Name & Picture Wholesale Price Retail Price B & H170tk/packet200tk/Packet Marlboro Light170tk/packet200tk/Packet Gold Leaf95tk/packet100tk/packet B & H Silver170tk/packet200tk/Packet Nevy55tk/packet60tk/packet Star55tk/packet60tk/packet Star Light55tk/packet60tk/packet Pall Mall Light95tk/packet100tk/packet Pall Mall Menthol 95tk/packet 100tk/packet

Place: Place strategies include decisions concerning distribution, agent type, storage, and transportation systems. The primary venues of cigarette are retail outlets: convenience stores, small grocery or “corner” stores, gas stations, liquor stores, supermarkets, mass merchants, pharmacies, and tobacco stores. The retail channel is ideally positioned to target the lower income and racial/ethnic minority populations who smoke cigarettes. Indeed, inequities in the concentration of tobacco retailers by neighborhood demographics are well documented.

Promotion: The main goals of the Promotion part of the marketing mix are to inform, persuade and remind. Informing is generally considered important for newly developed products in order to tell consumers something about the product. Branding is the use of a name, term, symbol or design to identify a product and the creation of a ‘brand image,’ is key to a successful promotional strategy. The aim of branding is to create a set of associations or perceptions about a brand in the mind of consumers, so that they will want to buy try the product and keep buying it. Persuasion‐based promotions often link products with desirable images (such as lifestyle or healthful imagery) and identities (such as slogans or brand symbols). tobacco advertising has been dominated by three broad themes: providing satisfaction (taste, freshness, mildness etc.), As reported to the Federal Trade Commission, current promotional activities for cigarettes include advertising (print media and point‐of‐sale), direct marketing (direct mail, coupons, distribution of free cigarettes and specialty items, company website, other internet and telephone), sponsorship,public entertainment, promotional allowances for wholesalers and retailers, and retail price. Promotion: The main goals of the Promotion part of the marketing mix are to inform, persuade and remind. Informing is generally considered important for newly developed products in order to tell consumers something about the product. Branding is the use of a name, term, symbol or design to identify a product and the creation of a ‘brand image,’ is key to a successful promotional strategy. The aim of branding is to create a set of associations or perceptions about a brand in the mind of consumers, so that they will want to buy try the product and keep buying it. Persuasion‐based promotions often link products with desirable images (such as lifestyle or healthful imagery) and identities (such as slogans or brand symbols). tobacco advertising has been dominated by three broad themes: providing satisfaction (taste, freshness, mildness etc.), As reported to the Federal Trade Commission, current promotional activities for cigarettes include advertising (print media and point‐of‐sale), direct marketing (direct mail, coupons, distribution of free cigarettes and specialty items, company website, other internet and telephone), sponsorship,public entertainment, promotional allowances for wholesalers and retailers, and retail price.

 SOWT Analysis Of British American Tobacco:  Strengths ― Effective communication ― Online growth ― Loyal customers ― Strong management team ― Strong brand equity ― Strong financial position ― Pricing ― Grow tobacco leafs  Weaknesses — Diseconomies to scale — Low R&D — No online presence — Not diversified — Ubiquitiouegory, products, services

 Opportunities ― Acquisitions ― Financial markets (raise money through debt, etc) ― Online ― Product and services expansion ― Takeovers  Threats — Competition — Cheaper technology — External changes (government, politics, taxes, etc) — Exchange rate fluctuations — Maturing categories, products, or services — Variety customers expectation in different country/culture

SOWT Analysis Of Philip Morris:  Strengths ― Cost advantage ― High R&D ― Loyal customers ― Market share leadership ― Strong management team ― Strong brand equity ― Pricing ― Unique products  Weaknesses Low market share Not innovative Not diversified Weak, damaged brand Competition of brands within the company SOWT Analysis Of Philip Morris:  Strengths ― Cost advantage ― High R&D ― Loyal customers ― Market share leadership ― Strong management team ― Strong brand equity ― Pricing ― Unique products  Weaknesses Low market share Not innovative Not diversified Weak, damaged brand Competition of brands within the company

 Opportunities ― Emerging Markets Demand from emerging markets  Threats — Competition — Economic slowdown — External changes (government, politics, taxes, etc) — Lower cost competitors or imports — Maturing categories, products, or services — Price wars — Tobacco litigation

 STAR: stars are high growth high market share businesses or products. The BATB does not have any product inside STAR. CASH COWS: Cash cows are low growth and high market share business or products. BATB’s product Gold Leaf & Star are inside Cash cows. QUESTION MARKS: Question marks are low share high growth businesses or products. B&H and Pilot are inside Questions marks. DOGS: Dogs are low growth and low market share business or products. PallMall, Scissors, Capstan are inside Dogs.

 Threats Of New Entrance = Low  Bargaining Power Of Suppliers = Low  Bargaining Power of Buyers = Low  Threat of Substitute Product = Low  Competitive Rivalry In The Industry = High

 New product differention is tough  Access to distribution channel is tough  Local launch can not catch up scale  Government policy

 Many inputs are required  Cigarettes companies are big and have direct access to distribution channel and addicted buyers.

 Addicted customers  Product quality not much important to smokers  Low switching cost in terms of price

 Herbal cigarettes were launched but did not become popular  Nicotin patch is another substitute

 Many competing players  Price competition continues

THE END THANKS To All