1. INTRODUCTION
1.1 HISTORY OF BAT
British American Tobacco Company (BAT) recognized in the year 1902 is a tobacco company which engages in the production, sale and distribution of tobacco related products worldwide. Headquartered in London, it is the second largest tobacco company in the world by market share subsequent to Philip Morris International, holding leadership position in more than 50 countries with operations in around 180 countries worldwide. Its brands include Dunhill, Lucky strikes, Kent, Paul mall, Benson and hedges, State Express 555, Vogue, Rothmans, and so on. Among all first four brands is the highest selling of all.
It a public company with estimated assets of 25 billion and 87000 employees worldwide. It sells 300 brands in 180 of its market with 15% of global market share. Manufacturing and processing being carried out in over 66 nations. The biggest solitary market of BAT is China, where it is a state owned industry, with almost 350 million smokers accounting for over 40% of global total. With more than 300 brands under its portfolio, its cigarette is chose by one in every seven of the world’s billion adult smokers.
The mission statement of the company states that its goals are the growth of its brands and value of its business so that it can improve its productivity and at the same time entrench the principles of corporate responsibility around the group (Chief Executive, Paul Adams). It explains reason for the company’s existence, what drives the company and where it wants to be in future which the mission statement of BAT tells. It inspires commitment as well as innovation at the same time. BAT seeks to accomplish its goal of growth and long term value creation in its activities advantages that can be ac...
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... they can transfer the blame to smokers as the company has notified them clearly the harmful effects of the cigarette and tobacco use on their labels and packaging. BAT can still expand and increase its market if they are able to manage the challenges placed by its environmental factors. It needs to find the ways to remain visible in the market. It needs to stay on the positive side by helping the government public sectors, sponsoring the environmental and ethnic causes, funding medical researches and cancer related organizations and many more.
REFERENCES
Retrieved on 10th of May from: http://www.ukessays.com/essays/marketing/market-analysis-for-the-british-tobacco-company-marketing-essay.php#ixzz2Omgd8v7W http://www.batnz.com/group/sites/bat_5lpj9k.nsf/vwPagesWebLive/DO5KHFAG/$FILE/medMD7FWE4W.pdf?openelement
http://www.health.govt.nz
Riordan has identified criteria in four areas that define the company’s mission statement. First, the company focus is to have attitudes and abilities that exceed industry standards to provide solutions for customer’s challenges and lead the industry in Research and Development. Second, the mission for customer relationships is to be a solution for the customer, maintain quality, innovation, and customer service at a reasonable price. Third, to ensure the long-term viability of the company, the mission to the employees is to have an innovative and team oriented working environment, in addition to keeping the employees informed and supported. Lastly, the future of the company depends on maintaining profitability to allow growth in the company (Apollo Group, 2004).
Nonetheless, there is no product differentiation. This can be a negative aspect for the company, since the lawsuits against tobacco industry are mounting and are increasing threat for the company.
This report explores E-cigarettes. First, it introduces E-cigarettes, their market information, and their special characteristics. Second, the report will state their market structure, market competitions and government regulations. Then, the report will explain why E-cigarettes should be normal goods and how the suppliers could increase demand. Next, the report will analyse the development of this market, its opportunities for new entry and whether it is sensible to open a new business. Finally, it will make the conclusion about them. The report will introduce what is E-cigarette first.
Constant innovationthis company's growth is driven by their constant innovation. Constant innovation is the key to their enterprises future. When they signed the tobacco settlement agreement in 1988 it fundamentally changed the way cigarettes are advertised, promoted, and sold in the US. This impacts every aspect of Philip Morris USA's marketing practices. While they are complying with this agreement they are also being responsible by marketing to adult smokers. They also have policies and practices in place to address all issues with their primary stakeholders along with their secondary stakeholders such as the general public, public health communities, parents, community leaders, decision makers, and the government (Altria, 2008).
The tobacco industry has developed a rather large array of products. Companies such as Philip Morris, Lorillard, RJ Reynolds, and Brown and Williamson, as well as the other smaller competitors, all provide the same product- cigarettes. The tobacco industry is filled with fierce competitors. But underneath the brand names and images, the product is relatively the same. All tobacco companies produce an inhalant that is made with tobacco, tar, and nicotine. These materials are rolled in a special kind of slow-burning paper for longer smoking time.
Since inception, the company has always embraced aggressive promotions and marketing campaigns that have enabled the company to remain competitive in its energy drink industry. The company targets active males in the age bracket 18-35 years according to O’Brien (2012) as its target market. Over time, the company has developed various slogans to market their products though their logo has remained unchanged. The most famous slogan “Red Bull gives you wings” has been used to market the Red Bull brand in various English and German speaking countries over the last decade.
The company’s strongest impact and contribution to sustainability lies in the critical parts of their business which leads to the success and diversity of our associates (customers), food safety, health and nutrition, strong supply chain, environmental factors, and community/stakeholder engagement and impact of the people along with the CSR initiatives.
Each year 440,000 people die, in the United States alone, from the effects of cigarette smoking (American Cancer Society, 2004). As discussed by Scheraga & Calfee (1996) as early as the 1950’s the U.S. government has utilized several methods to curb the incidence of smoking, from fear advertising to published health warnings. Kao & Tremblay (1988) and Tremblay & Tremblay (1995) agreed that these early interventions by the U.S. government were instrumental in the diminution of the national demand for cigarettes in the United States. In more recent years, state governments have joined in the battle against smoking by introducing antismoking regulations.
The Czech government has also a great social benefit of the Philip Morris products. Philip Morris USA Inc. is the nation’s leading cigarette manufacture (Philip Morris USA). For more than 20 years it has had the highest incomes, revenues, volume and market share in the United States cigarette business (Philip Morris USA). Philip Morris USA Inc, has been around for more than 150 years and it is still running great. In 1854, Philip Morris made their fi...
The main objective of this report is to develop and provide a sales and marketing plan for which the company will help to generate more profit and acquire more customers to patronize the product. This report will cover the period of 2016 to 2017 which will serve as guidelines that needs to follow of the employees, managers and management team to reach the desired goals and target for the company.
One way that the tobacco industry can be more ethical is changing their advertising strategy. I believe that today’s advertising strategy is very misleading about cigarettes. Examples of this unethical advertising is in Argentina, here 20 percent of television advertising is spent on smoking commercials, as well as in countries in and around Africa there are billboards that depict a man in a business suit stepping out of a black Mercedes as a chauffeur holds the door. This displays that cigarettes make people classy and sophisticated, making cigarettes look not only harmless but stylish. Another good example of unethical depiction on cigarettes is in Nigeria; here they promote a cigarette for graduates, with a picture of a university and a student in a cap and gown. As if this wasn’t a misleading visual they add a slogan that says, "A very important cigarette for very important people." These ads and slogan are ...
Mission- to provide values to the lives of customers, to make the lives of partners worthy, concern about environment and community
Report on PEP Task 1 Describe and explain PEP’s business objectives, using its mission statement and other information Evaluate and explain how successful PEP appear to be in meeting each of these objectives. A mission statement is a written statement setting out the general aims of a business. This is also known as a business objective. PEP is a business, which has been set up to produce good quality products and excellent customer service, as most businesses have aims and objectives. Examples below show some basic aims and objectives a business might have: · Make a profit · Provide goods and services for their customers · Survive and expand the business · Improve the quality of goods and services · Compete against other businesses · To be environmentally friendly PEP is a family business with a good history that provides good quality products to customers.
Although it is beneficial for the economy for the production of tobacco products it is extremely risky to use the product. According to researchers second-hand smoke is terrible for everyone in the world who walk by someone who is exhaling. In the article by Robert Proctor “Why ban the sale of cigarettes? The case for abolition” he states that cigarettes are the “most deadl...
Big brands like Marlboro spend 70% of their profits on advertisements in 3rd world countries to try and get the people who do not know the consequences of smoking.In total tobacco companies spend over ten billion dollars on advertisement world wide. (who.int) The advertisement that is going on is on the covers are are cartoon animals and images that show if you smoke you will be