GULSHAN CAMPUS, KARACHI

NAME OF STUDENT _________________________ ID No. _______________

FINAL EXAMINATION
FALL- 2021
Department / Date of Time Total
Program Semester Course Title Instructor
Faculty Exam Allowed Marks

FAD Marketing Bushra

4th xx-01-2021 40
Management Farhan

Instructions:
1. This paper contains ____ questions. Attempt all questions.
2. Marks of each question are mentioned at the end of each question.
3. Use of Calculator is ______________.(Allowed / Not Allowed).
4. Mobile Phones must be powered off and kept away during the exam.
5. Cheating of any type will disqualify the candidate.
6. Admit card is compulsory to appear in exam.
7. Student shall not be allowed to leave exam hall before one (1) hour from start time of exam.
8. Student shall not be allowed to enter in exam hall after one (1) hour of start time of exam.
9. Student must comply with given instructions by the invigilator or examiner.
10. Any arguments/misbehavior with invigilator shall be resulted to disciplinary action.
11. Do not detach the sheets. (Paper will be cancelled, if the sheets are detached).
12. Write your answers in ink. Pencil may be used for underlining of diagrams only.
13. The work must be neat & clean. Over-writing, cutting will be considered as mistake.
14. Student must bring his/her own stationary. Borrowing in exam hall is not allowed.
15. Answer Script & Question Paper must be returned back to invigilator before leaving exam hall.

This paper has a total of ___4__ pages including this title page
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Q1) Select any one brand that you like and answer the following questions with reference
to the brand you have selected. (10 Marks)

a) Why is it your favorite / why are you loyal?

b) How much would the price have to go up before you switch?
c) What would need to happen other than a price increase to get you change?

Q2) You are required to launch a business of your own choice keeping in mind these
pandemic conditions. Your business plan must include: (15 Marks)

 The product/ service introduction

 Comprehensive Marketing Plan
This portion will cover the Market Analysis Section where you are required to answer the
following questions:
 Who is Your Customer?
 Your Potential Market?
 Who are your close and distant competitors?
 What will be your pricing strategy in order to compete with the existing
competitors?
 Why people will buy your services/ products? What’s your competitive
advantage?

Keeping your customers in mind:

 How will you advertise?
 Where will you advertise?
 How much money will you spend and on what?
 What major themes will you target in your advertising to appeal to the market?
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Q3) Read the following case study and answer all three questions given at the end.

SMOKING MAY BE BAD, BUT TOBACCO COMPANIES’ PROFITS HAVE NEVER

LOOKED SO GOOD

After the arms industry, the tobacco industry must be one of the most politically incorrect
business sectors. Yet during the late 1990s tobacco companies in the UK appeared to be very
popular with the Stock Market, outperforming the FTSE all-share index by 36% during 1998,
and continuing to hold their ground in the falling stock market conditions from 2001. This was
despite an EU directive which finally put an end to all tobacco advertising in the UK from March
2003.

Tobacco companies now place less emphasis on fighting the health lobby, and no longer pretend
that tobacco is anything other than harmful. But fortunately for the tobacco firms, nicotine is an
addictive drug. Although cigarette consumption has declined in most developed countries, it is
reported that one person in four still smokes. Moreover, among some groups, especially young
women, the rate of smoking has shown some increase in recent years. Tobacco companies also
benefit from periods of economic recession. While job cuts may be bad news for most consumer
goods and services companies, it has historically also been linked to an increase in smoking.

The tobacco companies have survived many years of attempts to control tobacco sales
throughout Europe, but the EU directive banning all tobacco advertising made it increasingly
difficult for tobacco companies to get new brands established. The big three UK companies,
BAT, Gallagher and Imperial Tobacco looked at strengthening their brands with joint ventures.
BAT linked up with the Ministry of Sound nightclub to push its Lucky Strike brand, while
Gallagher tried to promote the Benson and Hedges name through a branded coffee. One industry
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expert expected to see an army of cigarette girls pushing cigarettes in pubs and corner shops,
thereby trying to get round controls on advertising.

While promoting cigarettes in Europe has been getting more difficult, tobacco companies have
been keen to exploit overseas markets where measures to protect the public are less. In the
countries of Eastern Europe, the companies have pushed their products, hoping to capitalize on
the hunger for western brands. Gallagher has a plant in Kazakhstan and has heavily promoted its
Sovereign brand in the former Soviet Union. The biggest opportunities for western tobacco
companies however are in China which is the world's biggest market in terms of volume. The
Chinese smoke 1.7 trillion cigarettes a year, making the British market of just 77 billion look
quite small. State owned brands such as Pagoda dominate the market with an estimated 98%
market share. With import duties of 240%, most foreign cigarettes enter the Chinese market
through unauthorized channels, including those smuggled by the Chinese army. Greater trade
liberalization will inevitably give freer access to the Chinese market for western tobacco
companies. These will undoubtedly pay significant levels of taxes to the authorities, so a
financially strained government may be unwilling to reduce tobacco consumption too much,
especially when smoking is so pervasive through the population.

CASE STUDY REVIEW QUESTIONS (15 Marks)

1. How effective is an EU ban on tobacco advertising likely to be for reducing smoking?

What measures could governments take to bring about a significant reduction in
smoking? (05 Marks)
2. What factors could explain a booming share price at the same time as Europeans'
attitudes toward smoking are becoming more hostile? (05 Marks)
3. How would you defend a western tobacco company in its attempts to develop the Chinese
market for cigarettes? (05 Marks)