Marketing Plan For Dumaurier Cigarette Term Paper

Length: 10 pages Sources: 6 Subject: Business - Advertising Type: Term Paper Paper: #18008175 Related Topics: Air Canada, Marketing Plan, Acid Rain, Marketing Communications
Excerpt from Term Paper :

In practice, Du Maurier brand stands on a safer position compared to the overall position of the group. For example, in 2007, Imperial Tobacco Canada has reported a

276 million profit, 4 million lower than the profit reported in the previous year. However, this was due to exchange rates.

The main financial objective for Du Maurier is to increase its profits by 10%. However, prices must be kept at approximately the same level as before. This means that sales volume must increase.

3.2. Marketing Objectives

The main objective that must be attained in the future period of time consists in increasing the number of customers. Du Maurier already is the most popular brand on the Canadian tobacco market by far. However, there is still room for improvements.

In order to attract more customers, Du Maurier should orient its marketing strategy towards younger segments of customers. One of the segments that present great growth potential for Du Maurier is represented by the 20-30 age group. This is one of Du Maurier's secondary target segments, but it has not yet been exploited to a maximum.

This younger category requires a different approach from that addressed to the 30-50 years segment. Du Maurier must focus especially on the promotional strategy. Other cigarette brands have specialized ads for attracting younger customers. Also, Du Maurier should focus on lower prices for this segment, in order to suit their financial possibilities, without damaging the product quality level.

4. Marketing Strategy

4.1. Target Market

The company is very much aware that customer segmentation "starts with really understanding the different profiles of our consumers" (BAT, 2008). As a consequence, the company invests in studying customers' preferences and their buying behavior. After retrieved realistic information on its current and prospective customers, the company develops its marketing strategy in accordance with customers' tastes, attitudes, financial possibilities, and buying patterns. The key aspects in the company's relationship with its customers refer to packaging, quality, and availability.

The main target customers segment for Du Maurier cigarettes is represented by males aged 30 to 50 years, with medium incomes, educated, residing in urban areas. As most studies have revealed, this age group accounts for the highest number of smokers. Individuals belonging to this age group have the financial means required for purchasing Du Maurier cigarettes. Also, these individual have medium to high social status, with high quality products needs. Their product quality requirements are suitable with the high quality provided by Du Maurier cigarettes.

Secondary customer targets are represented by two other age groups: 20-30, and over 50 years of age, residing in urban areas.

4.2. Positioning

Imperial Tobacco Canada's Du Maurier brand is the most popular cigarette brand in Canada. Imperial Tobacco Canada has the largest market share, reaching a total of 59.8%. Of this total, full-price manufactured cigarettes account for 56.3%, while lower-priced tobacco products account for 3.5%.

As mentioned above, Du Maurier is the most popular cigarettes brands, with 31.4% market share for manufactured cigarettes (Physicians for a Smoke-Free Canada, 2004).

Du Maurier offers superior quality cigarettes, continuously refined and developed. The brand utilizes AC, Advanced Charcoal filter that was released in a limited distribution.

4.3. Product

Du Maurier brand is consisted of the following tailor-made cigarettes: Du Maurier Distinct, Du Maurier Smooth Taste, Du Maurier Premiere, Du Maurier Prestige, Du Maurier Edition, and Du Maurier Special. D-JEEP Lighter Displays are represented by Du Maurier. Snus are represented by Du Maurier Original, and Du Maurier Fresh Mint.

Regarding the product strategy, Du Maurier focuses on continuous innovation. The company aims at improving quality and at providing the best balance between cigarettes' quality and their price. Du Maurier has made significant improvements in the filter technology, introducing the AC,...

...

Pricing

The pricing strategy is a very sensitive part of the marketing mix for any product, and Du Maurier cigarettes make no exception. Price competition is a very important factor that Du Maurier must take into consideration. If the company focuses on offering premium products only, these will require increased financial efforts from customers. Many customers many not be willing to make this extra effort in order to get extra quality, so they would probably start orienting towards lower priced cigarettes. Therefore, Du Maurier must be very careful when developing the pricing strategy, since the company must follow the same qualitative standards as before, it must provide a proper balance between price and quality, but the price should not exceed certain standards.

4.5. Distribution Outlets

Du Maurier cigarettes are sold in six regions across Canada: Atlantic, Quebec, Greater Toronto Area, Ontario outside of GTA, the Prairies, and British Columbia. Du Maurier's distribution strategy is based on Direct to Store Delivery. This way, the sales forces are able to deal one-on-one with retailers across the country. The main advantage of this approach is the fact that Du Maurier cigarettes are available to adult customers in the best conditions. In addition to better availability, other advantages include competitive prices and efficient delivery.

4.6. Marketing Communications

Du Maurier is also the leader in tobacco point of sale advertising. The brand has the highest distribution of ads available in convenience chain stores, accounting for 39.8%. Compared to previous years, Du Maurier also increased the percentage of stores where its merchandising materials can be found with 27%. Regarding brand share of ads, Du Maurier is the leading source of tobacco promotions at retail point of sale, accounting for 43.6%. Du Maurier ads can be found in 17.6% of stores.

In the past years, Du Maurier has managed to double its distribution, and now the brand has the highest level of regional distribution: Manitoba 31.7%, Alberta 26.5%, and Quebec 26%. Du Maurier ads can also be found in 21.4% of gas convenience chains (Health Canada, 2002).

5. Market Research

5.1. Action Program

Du Maurier's marketing activity must be scheduled so that the objectives are attained in maximum efficiency conditions. The action program, with its specific activities and their duration is presented below:

Establishing objectives - 1 day

Elaborating the methodology and budget - 2 days

Selecting suitable personnel - 1 day

Conducting the research on the 20-30-year of age group - 3 weeks

Analyzing the content and interpreting information - 3 days

Elaborating the research report, with conclusions and recommendations - 5 days

Presentation of conclusions - 1 day

5.2. Financial Impact

Such a strategy will probably not have an immediate positive financial impact. This is a medium term and long-term strategy. Even more, it requires consistent investment in research and development.

However, attracting more customers will prove to be extremely profitable in the future. If combined with customer satisfaction and customer loyalty, Du Maurier will be the leader on cigarettes manufacturers market for all customers segments.

Reference List

Canada (2008). Central Intelligence Agency. The World Factbook. Retrieved April 8, 2008 from https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html.

Hughes Anthony, Nancy (2007). The Intersection of Main and Bay:…

Sources Used in Documents:

Modern tobacco marketing (2008). British American Tobacco. Retrieved April 9, 2008 at http://www.bat.com/group/sites/uk__3mnfen.nsf/vwPagesWebLive/DO78BDW6?opendocument&SKN=1&TMP=1.

Cigarette Brands Sold in Canada (2004). Physicians for a Smoke-Free Canada. Retrieved April 9, 2008 at http://www.smoke-free.ca/factsheets/pdf/brands.pdf.

Tobacco advertisements at points of sale (2002). Health Canada. Retrieved April 9, 2008 at http://www.hc-sc.gc.ca/hl-vs./pubs/tobac-tabac/eval-2002/advertisements-publicite2_e.html.


Cite this Document:

"Marketing Plan For Dumaurier Cigarette" (2008, April 09) Retrieved June 24, 2021, from
https://www.paperdue.com/essay/marketing-plan-for-dumaurier-cigarette-30839

"Marketing Plan For Dumaurier Cigarette" 09 April 2008. Web.24 June. 2021. <
https://www.paperdue.com/essay/marketing-plan-for-dumaurier-cigarette-30839>

"Marketing Plan For Dumaurier Cigarette", 09 April 2008, Accessed.24 June. 2021,
https://www.paperdue.com/essay/marketing-plan-for-dumaurier-cigarette-30839

Related Documents
Cigarette Smoking This Report Will
Words: 1082 Length: 3 Pages Topic: Sports - Drugs Paper #: 47392831

This, in turn, will also affect the overall economic situation of the country. A particular country's condition will also affect its neighboring country, hence, everyone is the world is affected. Usually, children are the common victims of the adverse effects of tobacco. Babies of smokers have greater chances of being born pre-maturely or having low birth weight. Moreover, secondhand smoke can trigger sudden infant death syndromes. Cigarette smoke can also

Cigarette Taxes a Highly Successful
Words: 1527 Length: 5 Pages Topic: Sports - Drugs Paper #: 44030962

Today, each country implements the quotas it finds most suitable, leading as such to major fluctuations in the taxes, their percentage in the price and the final retail price. The federal authorities generally explain the high cigarette taxes as a means of reducing the consumption of cigarette, with the ultimate aim of reducing the number of smokers and protecting the health of the individuals. Nevertheless, fact remains that the fares

Cigarette Taxes Introduction Simple Review
Words: 1336 Length: 5 Pages Topic: Sports - Drugs Paper #: 98388639

.." (Fleenor, nd) it is related that it did not take long for this to spread into other U.S. states with trucks all around the United States being hijacked and robbed of their cigarette cargo. The following tables lists the state excise tax rates on cigarettes for January 1, 2007. State Excise Tax Rates on Cigarettes (January 1, 2007 TAX RATE per pack) RANK STATE TAX RATE CENT PER PACK Alabama (1) Nebraska Alaska (3) Nevada Arizona New Hampshire Arkansas New Jersey California New Mexico Colorado New York

Cigarettes Why Do People Smoke All of
Words: 4077 Length: 15 Pages Topic: Sports - Drugs Paper #: 84887977

Cigarettes Why do people smoke? All of know that smoking is a dangerous, even potentially lethal habit - and one moreover that now carries an increasing weight of social stigma. And yet still people do it. There must therefore be compelling reasons why people should endanger their health to such a degree and the most obvious of these reasons is the one that smokers themselves offer up the most often: Smoking

Cigarette Smoking Is and Has
Words: 793 Length: 2 Pages Topic: Sports - Drugs Paper #: 48124136

When in adulthood, people start smoking because of different reasons, mainly because they encounter various problems in their lives. Smoking is commonly identified as a solution to stress, and, people get a feeling of relaxation after smoking. People that smoke are normally thinner than those that don't, and, accordingly, some overweight persons might take up smoking in hope that it would make them slim. Tobacco smoking reduces appetite and people's

Cigarette Advertising Campaign if We Look at
Words: 2907 Length: 6 Pages Topic: Business Law Paper #: 68170383

Cigarette Advertising Campaign If we look at the case of Mary and RJR there is a contract formed between them for Mary to undertake a year long advertising campaign to present the companies cigarettes in a positive light, her remuneration was to be 25% of the increase in sales that the campaign created. It was also recognised that this was a very vague amount, and may be difficult to assess, as