You are on page 1of 31

Strategic Management in Marketing

Group - 3
I.D.:
I.D.:

I.D.:
I.D.:

I.D.:

Introduction of the Organization


grew by 16 per cent in 2008 American Tobacco has achieved compound growth of 11 per cent in earnings per share and 13 per cent in dividends per share. Their total shareholder return has been 486 per cent, compared to 3 per cent for the Financial Times Stock Exchange (FTSE) 100 as a whole.
British American Tobaccos Global Drive Brands

BATs Strategic Management


British American Tobacco uses four

main elements in their strategies:

Growth Productivity Responsibility Winning organization

Organizational Overview
global market share, with brands sold in more than 180 markets. They have over 300 brands in their portfolio. In 2008, their subsidiaries enabled governments worldwide to gather almost 22 billion a year in taxes, including excise duty on their products, more than eight times the Groups profit after tax.
The worlds second largest quoted tobacco group by

Organizational Overview (contd.)


1912 had become one of the worlds top dozen companies by market capitalization. Although their products pose risks to health and our industry can be seen as controversial, their products are legal. Through more than 100 years of operations, they have built a strong international reputation for high quality tobacco brands to meet consumers diverse preferences.
Their business was founded in 1902 and by

BATs Products in Bangladesh


Benson & Hedges

John Players Gold Leaf


Pall Mall Scissors Star Viceroy

BATs Strategic Marketing: What, Why and How


It is important for the CEOs and marketing executives to

look into the market before making any decision. Making spur of the moment strategic decisions reduces the likelihood that these decisions are the best A better approach is to perform an annual comprehensive review of markets and opportunities, then make long-term strategic decisions without the distractions of day-to-day marketing and sales activities.

Questions often asked as Strategic Marketing Planning Process


What needs or problems cause customers to consider buying from the company? What improvements in the customer's personal or business life can we enable or improve? Which customer market segments are attracted to our company or products? Which customer motivations or values lead people to decide to purchase our products? What changes or trends in our customer base are affecting their general interest or attraction to products like ours?

BATs Marketing Mix


gathering comprehensive insights the smokers preferences and buying behavior, including:
consumers tastes, attitudes, Pockets purchasing patterns.

The basic preference for the company is

The 5Ps in BATs Marketing Strategy


Product

Price
Packaging Promotion Place

Benefiting from a Strategic Marketing Plan


programs support the company's goals and objectives Convey a consistent message to customers Improves company efficiency in all areas, which helps improve revenue and market share growth, and minimizes expenses -- all of which lead to higher profitability.
Helps insure that all tactical marketing

Methodology
Developing the Strategic Marketing Plan: The strategic marketing plan process typically has three stages:

Strategic Marketing Plan


1. Segment the market
Geographic Demographic Psychographic Behavior

Strategic Marketing Plan (contd.)


2. Profile the market segments
Revenue potential Market share potential Profitability potential

Strategic Marketing Plan (contd.)


3. Develop a market segment marketing strategy

Market leader or product line extension Mass marketing or targeted marketing Direct or indirect sales

Strategic Marketing Plan (contd.)


After analyzing market segments, customer interests,

and the purchase process, it's time to create the strategic marketing plan. The strategic marketing plan document usually includes:

Strategic Marketing Plan (contd.)


1. Situational Analysis - Where is the company now?

Market Characteristics Key Success Factors Competition and Product Comparisons Technology Considerations Legal Environment Social Environment Problems and Opportunities

Strategic Marketing Plan (contd.)


2. Marketing Objectives - Where does management want the company to go?

Product Profile Target Market Target Volume in Dollars and/or Units

Strategic Marketing Plan (contd.)


3. Marketing Strategies - What should the company do to achieve its objectives?
Product Strategy Pricing Strategy Promotion Strategy Distribution Strategy Marketing Strategy Projection

Strategic Marketing Plan (contd.)


Once a company's executive team has approved the

strategic marketing plan it's time to take the next step -- create the tactical marketing programs and projects needed to implement the plan. These tactical programs usually include: Product Development Plan Marketing Communications Plan Sales Development Plan Customer Service Plan

Growth of BATs global drive brands (billions of cigarettes sold

Limitations
certain perversions faced by the group which hindered the project in itself and forced to use the alternative. Initially, a questionnaire was created, but the project is as such that the referred companys personnel would not answer such questions. For, this would create a leakage in the companys confidential information which is eventually harmful for the companys strategy and would be marked as Red-Alert questions. As a consequence, we were unable to include primary data. As secondary trait, group coordination also became a factor which includes lack of communication. And moreover, as the company is of a very high level, it became almost impossible to find out the major problems. Finally, excessive information was required which made the work stressful.
To the extent that the project is concerned, there were

Analysis & Discussion


internally but also externally doing the SWOT analysis. They identified their strength and weaknesses inside the firm; opportunities and threats in the environment. In this regard they formed the three theoretical strategies Corporate level strategy Business level strategy and Functional level strategy.
They took care of their firm not only

Analysis & Discussion (Contd.)

Acceptability is concerned with the expectations of the identified stakeholders (mainly shareholders, employees and customers) with the expected performance outcomes, which can be return, risk and stakeholder reactions. Return deals with the benefits expected by the stakeholders (financial and nonfinancial). For example, shareholders would expect the increase of their wealth, employees would expect improvement in their careers and customers would expect better value for money.

Analysis & Discussion (Contd.)


consequences of failure of a strategy (financial and non-financial). Stakeholder reactions deal with anticipating the likely reaction of stakeholders. Shareholders could oppose the issuing of new shares, employees and unions could oppose outsourcing for fear of losing their jobs, customers could have concerns over a merger with regards to quality and support.
Risk deals with the probability and

Major Findings
The selected company is one of the top ranking companies in the whole world. They do not tend to make mistakes to be found by an outsider. Though then we have tried to find some 1- The price of their products increased, therefore product consumption decreased. 2-The products they are marketing are injurious to health, therefore they are being pressurized by the government, and as a result they are unable to advertise for their products.

Major Findings (Contd.)


head as executives. 4- Even before the consumers can identify a problem they come up with the solution
3- They need to have the best marketing

Recommendation
The price of their products is too high than any other companys

product. So the company should take proper steps to reduce the price of their product. To avoid such type of pricing problems they can use the two pricing strategy. This are-1-1-Cost based pricing.2-Value based pricing. According to their Sustainability Report 2007 they are trying to decrease the amount of harmful ingredients in their product. After they are successful they will be able to start advertisement for marketing their product and lead the industry more successfully. Finally, they HRM department of all the regions should be coordinated to bring out the best talents from all over the worldand their marketing strategy would be successful thereby.

Conclusion
The company is concerning about 1.2 billion smokers

directly or indirectly connected with this company. Already customers are interested with their products and services. We have tried to arrange all the information we possibly could cover about the strategic management in marketing of British American Tobacco.. The group has about 97,696 permanent employees and around 47,361 casual labor force. Its annual turnover is approximately TK. 161325 crore (around US$ 2151 Million) in Asia pacific and thus has contributed much to the industrialization and development of the socio-economic position in the world.