Marketing Strategy
British American Tobacco Company uses a decentralized marketing strategy to properly market its products worldwide. This decentralized strategy is put in place by dividing brands and purchasing local production facilities to create a closer proximity to important markets. Representatives, market research agencies and distributors are all used to help meet different needs by region. Flexibility is necessary for BAT because of the controversial nature of the business and the problems they face with being unable to market their product through advertising. As a result, they are always looking to spot trends such as new age packaging intended to appeal to a certain adult audience for their increasingly popular premium Kent HD cigarette brand. They must also be sensitive to culture because of the multinational nature of the corporation. Certain local needs must be met and advertising or packaging may be altered to better accommodate local markets.
Growth Strategies
Brand acquisition, joint ventures, and licensing agreements are all common growth strategies for BAT, to help not only adjust but prosper in the changing economy and regulations regarding the business.
Brand Acquisition: In the past (1960-1980) BAT purchased financial firms such as farmers group in the USA, and department store chains such as Gimbal’s. A more recent example is the Vype e-cigarette, which is BAT's response to a changing more health-centred consumer.
Licensing Agreements: BAT did not create Du Maurier Canada but owns rights to it under a licensing agreement giving them control of production and distribution throughout Canada, as a regional brand. Another example of BAT's licensing agreements would be its extremely successful Pall Mall brand which they own the rights to produce and distribute around the world except for in the United States.
Joint Ventures: A more recent example would be of the joint venture of Vietnam's Vinataba Tobacco
Company capturing the majority of another countries tobacco industry. British American Tobacco Co has made many USA joint ventures as well with tobacco companies like Reynolds America, to distribute each others' products. BAT itself was created as a joint venture between Imperial and American tobacco company. BAT is constantly looking for additional brands and companies to add to their portfolio. This is all done in an effort to expand global presence.
Foreign Markets
Due to the variety of markets that British American Tobacco is a part of, they have to be constantly advertising (on the rare occasion they can) and promoting the product differently for the desired market. Packaging can also vary from country or region because of different safety regulations developed by regions who help support tobacco sales or combat them.
British American Tobacco Company uses a decentralized marketing strategy to properly market its products worldwide. This decentralized strategy is put in place by dividing brands and purchasing local production facilities to create a closer proximity to important markets. Representatives, market research agencies and distributors are all used to help meet different needs by region. Flexibility is necessary for BAT because of the controversial nature of the business and the problems they face with being unable to market their product through advertising. As a result, they are always looking to spot trends such as new age packaging intended to appeal to a certain adult audience for their increasingly popular premium Kent HD cigarette brand. They must also be sensitive to culture because of the multinational nature of the corporation. Certain local needs must be met and advertising or packaging may be altered to better accommodate local markets.
Growth Strategies
Brand acquisition, joint ventures, and licensing agreements are all common growth strategies for BAT, to help not only adjust but prosper in the changing economy and regulations regarding the business.
Brand Acquisition: In the past (1960-1980) BAT purchased financial firms such as farmers group in the USA, and department store chains such as Gimbal’s. A more recent example is the Vype e-cigarette, which is BAT's response to a changing more health-centred consumer.
Licensing Agreements: BAT did not create Du Maurier Canada but owns rights to it under a licensing agreement giving them control of production and distribution throughout Canada, as a regional brand. Another example of BAT's licensing agreements would be its extremely successful Pall Mall brand which they own the rights to produce and distribute around the world except for in the United States.
Joint Ventures: A more recent example would be of the joint venture of Vietnam's Vinataba Tobacco
Company capturing the majority of another countries tobacco industry. British American Tobacco Co has made many USA joint ventures as well with tobacco companies like Reynolds America, to distribute each others' products. BAT itself was created as a joint venture between Imperial and American tobacco company. BAT is constantly looking for additional brands and companies to add to their portfolio. This is all done in an effort to expand global presence.
Foreign Markets
Due to the variety of markets that British American Tobacco is a part of, they have to be constantly advertising (on the rare occasion they can) and promoting the product differently for the desired market. Packaging can also vary from country or region because of different safety regulations developed by regions who help support tobacco sales or combat them.
![Picture](/uploads/3/0/8/4/30846621/642953.jpg?312)
Australia
Advertising: is prohibited by law except for at point of sale. with the exception of certain states that forbid it.
Promotion/Sponsorship: Some promotional practices are permitted such as prizes, discounts etc., with the exception of some regions who have banned it. Sponsorship with financial support is permitted by law but the publics knowledge about these actions are greatly restricted.
Packaging: In 2012 it became the first country to require plain packaging for all tobacco product Every package regardless of brand must be in a dark green/brown package, with no company trademark. Graphics, and other health warnings must cover 75% of the front, and 90% of the back.
Advertising: is prohibited by law except for at point of sale. with the exception of certain states that forbid it.
Promotion/Sponsorship: Some promotional practices are permitted such as prizes, discounts etc., with the exception of some regions who have banned it. Sponsorship with financial support is permitted by law but the publics knowledge about these actions are greatly restricted.
Packaging: In 2012 it became the first country to require plain packaging for all tobacco product Every package regardless of brand must be in a dark green/brown package, with no company trademark. Graphics, and other health warnings must cover 75% of the front, and 90% of the back.
![Picture](/uploads/3/0/8/4/30846621/1402788201.jpg)
Philippines
Advertising: is prohibited by law through any media outlets. Although they are allowed to
Sponsorship/Promotion: companies can promote their product by providing free distribution of cigarettes among other promotional activities.
Packaging: Health warnings are only with a small text box, covering 30% of the front package. Logos and colours are clearly visible and designed to attract customers.
Advertising: is prohibited by law through any media outlets. Although they are allowed to
Sponsorship/Promotion: companies can promote their product by providing free distribution of cigarettes among other promotional activities.
Packaging: Health warnings are only with a small text box, covering 30% of the front package. Logos and colours are clearly visible and designed to attract customers.
![Picture](/uploads/3/0/8/4/30846621/1402788513.jpg)
Canada
Advertising: Most forms of advertisement are not permitted, with very few exceptions. they may be advertised at adult only venues.
Sponsorship/Promotion: promotion of sponsorship is not allowed although financial sponsorships are accepted.
Packaging: there must be a pictorial health warning, also one in text and a description of emmisions. These health warnings must cover 75% of packaging for cigarettes. Small are is available for logo and coulours
Advertising: Most forms of advertisement are not permitted, with very few exceptions. they may be advertised at adult only venues.
Sponsorship/Promotion: promotion of sponsorship is not allowed although financial sponsorships are accepted.
Packaging: there must be a pictorial health warning, also one in text and a description of emmisions. These health warnings must cover 75% of packaging for cigarettes. Small are is available for logo and coulours