MARKETING MANAGEMENT

MARKETING PLAN
FOR
DUNHILL
CIGARETTES

Submitted to:
Mr. Taimur Rehman

Submitted by:
Syed Areeb Jafri
20191-25390
 Marketing Plan for Dunhill Cigarettes

Table of Contents
Executive Summary...................................................................................................................3
Objectives...................................................................................................................................4
Keys to Success......................................................................................................................4
Strategy and Implementation Summary:....................................................................................4
Current Marketing Situation......................................................................................................4
Opportunity and Issue Analysis:................................................................................................5
SWOT Analysis:.........................................................................................................................5
Marketing Strategy.....................................................................................................................5
Positioning:............................................................................................................................5
Pricing Strategy:.....................................................................................................................5
Distribution:...........................................................................................................................6
Advertising and Promotion:...................................................................................................6
Marketing Communication:...................................................................................................6
Marketing Research:..............................................................................................................6
Action Programs.........................................................................................................................7
Financial Projection:..................................................................................................................7
Break-Even Analysis: DUNHILL Cigarette...........................................................................8
Implementation control:.............................................................................................................8
Conclusion:.................................................................................................................................8

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 Marketing Plan for Dunhill Cigarettes

Executive Summary
British American Tobacco plc (BAT) is an American British multinational cigarette and tobacco
manufacturing company headquartered in London, United Kingdom. It is the second-biggest
cigarette maker in the world as of 2012.

BAT has a market-leading position in over 50 countries and operations in around 180
countries. Its four largest-selling brands are its native brand Dunhill and US brands Lucky
Strike, Kent and Pall Mall. Other brands that the company markets include Benson & Hedges
and Rothmans. The company does not necessarily own the rights to all of these brands in
every nation they are marketed.

BAT has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100
Index. It has secondary listings on the Johannesburg Stock Exchange, the Nairobi Securities
Exchange, the Zimbabwe Stock Exchange as well as the New York Stock Exchange.

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 Marketing Plan for Dunhill Cigarettes

Objectives
British American Tobacco has established 5 firm objectives it wishes to achieve in the next
three years:

1. To start making profit by 2011

2. Develop enthusiastically satisfied customers all of the time.
3. Contribute positively to our communities and our environment.
4. Net income more than 13% of sales by 2012.
5. To increase the number of customers by supplying the product according to the
changing demand of customers-thus earns profit.

Keys to Success

The success of British American Tobacco will be accelerated by the following key elements

1. The greatest locations - visibility, high traffic pattern, convenient access.

2. The friendliest servers - cheerful, skilled, professional, articulate.
3. The finest reputation - word-of-mouth advertising, promotion of our community
mission of charitable giving.

Strategy and Implementation Summary:

British American Tobacco will focus mainly on City Corporation and other closer areas but
also will try to get attention of the people live in other geographical market.

Our target customers are usually the young generation, especially young university going
students, and office goers and also the public in general.

Current Marketing Situation

British American Tobacco’s competitors are organizations that fulfill the particular need
(Core benefit) of the customers which our product is providing. Over the past few years,
quite a number of tobacco companies have come across the country. We have identified the
following competitors according to the market point of view.

Competitor Position Held

PMI Market Leader
PMIP Market Challenger
PALL MALL Tobacco Market Challenger
Sarhad Cigarette Industries Market Follower
KING Tobacco Market Nicher

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 Marketing Plan for Dunhill Cigarettes

Opportunity and Issue Analysis:

As an established business, British American Tobacco is still in early stage. The critical issues
are for British American Tobacco to:
i. Pursue controlled growth that dictates that payroll expenses will never exceed
revenue base. This will help protect against recessions.
ii. Constantly monitor customer satisfaction. Ensuring that the growth strategy will
never compromise service and satisfaction levels.

SWOT Analysis:

 Strength: Extra flavor that will fulfill the taste of customers & will be available in
every region at comparatively low price.
 Weakness: Unconsciousness of product among the customers, capital shortage, and
we can’t scatter our product in the remote place.
 Opportunities: There are available of raw-materials.
 Threats: Percentage of nicotine about 0.08 that may be the cause of creating less
demand of the product & the other competitors can through same type of product at
lower rate than us.

Marketing Strategy
British American Tobacco is placed in a location very highly visible and of great ease of
access.
British American Tobacco will rely on building relationships with university students, middle-
and upper-class earner and to provide significant free publicity because of its community
support program and by giving charitable contributions to different community. In addition,
media will be another source of promotion.

Positioning:

British American Tobacco will position itself as the premier aftermarket Tobacco Company.
This positioning will be achieved by leveraging British American Tobaccos’ goods on
competitive edge; new energetic, innovative employee and passion. The British American
Tobacco is such a company whose management is able to use its vast knowledge and
personal passion for the tobacco to develop innovative, useful product or a wide range of
tobacco companies.

Pricing Strategy:
British American Tobacco’s goods will be priced at upper edge of what the market will bear,
competing with the other cigarette brands. The pricing fits with the general positioning of
British American Tobacco as providing high-level expertise and best cigarettes around the
country.

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 Marketing Plan for Dunhill Cigarettes

Distribution:
There are some distributions channels by which we can deliver our products to the
customers:
 Direct
 Retail
 Dealers
 Distributors
 Intermediaries
 Availability of supply in every location.
 Available supply with orders.
 Initially, British American Tobacco will use a direct-to-consumer distribution model.
Over time, it will use other channels.

Advertising and Promotion:

In the first year British American Tobacco Pakistan plans to spend around 3,000,000 Rps. on
advertising and promotion. Newspaper and magazines will be developed and published for
promotion.
Customers should be offered with various special cigarette boxes marketed by British
American Tobacco and these should be priced in base of per product retail price. British
American Tobacco special boxes should be priced in the similar basis.

Marketing Communication:
The marketing strategies will seek to first create customer awareness concerning the offered
products and services and develop the customer base. The message that British American
Tobacco seek to communicate is that offers the best quality and the ingredients of it are less
harmful for health. We provide the least nicotine 0.08. We provide communication through
various methods. The first is web-site. That is https://www.bat.com/

We will provide a rich source of product information and offer consumers the opportunity to
purchase. Next, we go through advertisements placed in numerous industry magazines.
 Personal process to create awareness among target customers.
 Use in film, serial or by posters.
 Publicity to the university students.

Marketing Research:
We are very lucky of being located in the central zone of Pakistan. It will be able to leverage
this opportune location by working with many of the different tobacco company that live in
the area. Though it is a new company the extensive product testing by a huge variety of
users provided our product with valuable feedback and has led to several design
improvements.

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 Marketing Plan for Dunhill Cigarettes

Action Programs
British American Tobacco plans to hold test events for customers on a quarterly basis a year.
Each quarter, at the introduction of each season, British American Tobacco will be adjusting
its ingredients to reflect the exchanges the flavors served.

Smoking coupon- At fundraising events for generals especially university students,

we will be giving away smoking coupons as door prizes or awards. This encourages the
person and young guys bring their friends or buy the package of our premium products. We
will also be distributing coupons for special items or new product introductions.

Financial Projection:
The annual sales projection for DUNHILL cigarette is included in the table next page.

Table: Sales forecast of British American Tobacco

Sales 2010 2011 2012

Dunhill cigarette 4500000 5500000 6500000

Total sales 4500000 5500000 6500000

Cost of Sales 2010 2011 2012

Dunhill cigarette 3560000 4500000 5400000

Subtotal direct cost of 3560000 45000000 54000000

sales

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 Marketing Plan for Dunhill Cigarettes

Break-Even Analysis: DUNHILL Cigarette

Fixed cost = Rps 50,000 (per month)

Variable cost = Rps 250 (per packet)

Expected Production = 50,000 packet (per month)

Total cost = fixed cost + variable cost

= 50,000 + 250q

= 50,000 + 250 * 50000

= 12,500,000 (per month)

Total cost (yearly) = 12,500,000 * 12

= 150,000,000

Revenue = cost + profit

= 150,000,000 + (150,000,000 * 5%)

= 150,000,000 + 7,500,000

= 157,500,000

Profit after one year = 7,500,000

Implementation control:
If our goals and budget are spelled out for each month or quarter, management
Will take following corrective measure:
o Management will review the result monthly and take corrective action.
o Monitoring the distribution channel whither they are active or inactive.
All other companies are providing the same service as we are providing to our target
customers. If we are not attentive to our objectives, they can take our place. This is why we
think they could be very much challenging to us.

Conclusion:
There is no doubt that Dunhill Cigarette; British American Tobacco Pakistan will bring lots of
excitements to the Pakistani people, especially to the youth. We promise our franchisor and
our customers to maintain the highest standard and to serve with the best you can imagine!

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