INSTITUTE OF BUSINESS ADMINISTRATION

JAHANGIRNAGAR UNIVERSITY

Report on
Marketing Strategy on Brand Portfolio of Japan Tobacco Bangladesh

Submitted to:
Ratul Kumar Saha
Lecturer, IBA-JU
MKT 201
Introduction to Marketing

Submitted by:
Yasir Arafat (ID-1959)

Date of Submission: Jan 17, 2021

Brand Introduction:

Japan Tobacco started its’ journey in Bangladesh back in 2018 with the acquisition of the Akij Tobacco
Company. Akij Tobacco was previously a contract manufacturer for JTI while it was in operation. The
acquisition was made for BDT 124.3 Billion (USD 1,476 Million) .

“With this investment, we continue to accelerate our expansion in emerging markets that matter, a key
component of the JT Group’s growth strategy. Akij’s substantial market share places us straight at the
number two position in Bangladesh, which will expand our quality top-line growth. This transaction will
also support our sustainable profit growth objectives in the mid- to long-term,”- Mutso Iwai, Executive
Vice President and President of the Tobacco Business.

Previous Akij Tobacco held around 20% market share. Akij Group runs it tobacco business under Dhaka
Tobacco Company Ltd, which also produces the Marlboro brand of cigarette of Philip Morris
International (PMI), in Bangladesh. Akij currently occupies the number two position in both the value
and base segments, together covering up to 90% of Bangladesh’s cigarette market, with brands such as
Navy and Sheikh respectively.

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Brand Portfolio under JTI:

1) Malboro Advance
2) LD
3) SHEIKH
4) Navy
5) Winston

Cash-cow Brand High- End Prestige Brand

Flanker/Fighter Brand Low-End Brand

Cash Cow Brands: CASH-COW. That’s a very interesting play of words. From my point of view, this term
refers to Milking a Cow for Milk, but this time we’re milking the Cow (A brand) for Money. Yes, cash cow
brands are very successful in the market with a very few to none to oppose it. Cash Cow brands are self-
sustainable, meaning they can finance themselves with the revenue they earn & contribute a very big
chunk of the firm’s profit. Sad but true that Japan Tobacco doesn’t have a Cash Cow brand of its own in
Bangladesh.

High End Prestige Brand: Well without a doubt, the term gives you an idea of a Brand that operates in
the premium category. We might call it a Posh Brand. This brand is attractive to a certain target group &
only a few purchases the brand. The High-End Brand might sell in lower volume but contribute a higher
margin to the profit for the company. In the tobacco industry high end brands are affordable for target
groups but because of the high frequency of tobacco for an individual on a daily basis, high end brands
are over looked for cheaper alternatives. The High-End brand for JTI Bangladesh is the Malboro Advance.
Although Malboro Advance is the OG Philip Morris Brand, it is locally manufactured & distributed by JTI
under a licensing agreement.

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Flanker/ Fighter Brand: Again, the name says it all. It’s a Fighter Brand. It’s a Cheap brand that aims to
have some piece of the market share from a competitor in the same category. Normally we see
predatory pricing techniques for such brands but in the tobacco industry, every penny counts. Navy is a
well-known tobacco brand among the middle and working class & it’s fighting against brands like Star,
Scissors etc., selling at a very low price.

Low-End Brand: The opposite of the High-End Prestige Brand but similar in a way; the target group,
lower class people have high Brand Recall for such brands. To them it’s a flagship product of sorts. Navy
is a low-end brand of JTI serving the working class.