TYPES OF CUSTOMER
The tobacco industry is vast and consist of various renowned companies such as British American Tobacco, Altria formerly Philip Morris International, Imperial Tobacco and Japan Tobacco. The phrase “tobacco industry” generally refers to the companies involved in the manufacture of cigarettes, cigars, snuff, chewing tobacco and pipe tobacco. CITATION Aic14 l 1033 (Aichner, 2014)
Figure 1: Listed tobacco companies worldwide in 2016 based on enterprise value (in billion U.S. dollars)
The tobacco manufacturers target all type of customers despite of people’s age and non-consumer organizations such as retailers and policy makers with the aim of creating the best possible business environment for tobacco sales.
Figure 2 shows the mean number of customers who purchase tobacco products
Figure 3 shows the usage of tobacco products by age and gender category
The starter comprises of those taking up any sort of tobacco items for the primary time and is an imperative battleground for the tobacco industry. The largest proportion of this group (Figure 3) are young people in their mid to late teens. Based on the figure 2 above, we can know that large drug stores such as pharmacies are the primary suppliers of tobacco products to customers. As they act as a middle channel in supplying the tobacco products directly to the community of people in which young adults who are our main targeted clients will have the chance to consume the products. Consequently, retailers or suppliers are the target of huge venture from tobacco businesses that desire to build strong distribution chains. CITATION Fei98 l 1033 (Feighery E, 1998)Customer’s choice is critical in any company as all businesses depend totally on their clients. It is the clients that are capable for the development of companies and thus, they ought to continuously take center arrange in any company. Customer’s choice is related to benefit since fulfilled clients frequently gotten to be rehash clients. Hence, the concept of client fulfillment and choice is imperative to any company that needs to succeed. For this reason, there’s a ought to guarantee that without a doubt a company contributes in these pivotal things through its showcasing and plan divisions
Customer’s choice is critical in any company as all businesses depend totally on their clients. It is the clients that are capable for the development of companies and thus, they ought to continuously take center arrange in any company. Customer’s choice is related to profit because satisfied customers often become repeat customers. Hence, the concept of client fulfillment and choice is imperative to any company that needs to succeed. For this reason, there is a need to ensure that indeed a company invests in these crucial items through its marketing and design departments
Figure 4 shows the current tobacco used among adults aged 21 years and older by geographic region
From the figure 4 above, we can conclude that consumers prefer to choose cigarettes more than other tobacco products. This is due to the price of a cigar and cigarette which differs a lot. Cigarettes are certainly less expensive than a cigar because cigarettes are less expensive comparing to cigars and smokeless tobacco. Besides, cigarettes are abundantly found in any nearby shops unlike other tobacco products. According to World Health Organization (WHO), cigars are profoundly addictive as a single cigarette ordinarily has less than a gram of tobacco, whereas a single cigar may contain as much as 5 to 17 grams of tobacco which leads to human health diseases. In addition, cigar wrappers are not as permeable as cigarette wrappers, making the combustion of a cigar less total which result in higher concentrations of toxic chemicals in cigars than in cigarettes. In a study published in the Journal of the American Dental Association, it was found that cigar and pipe smokers are at an expanded chance for early tooth loss, compared to that of their nonsmoking partners. Thus, consumers tend to choose cigarettes over cigars to avoid severe health problems. CITATION Wor08 l 1033 (World Health Organization, 2008)MARKET DEMAND
Figure 5 shows the world market shares of 2017 hold by renowned tobacco companies
China is the world’s biggest market for cigarettes, with 300 million smokers, about three times as numerous as those within the next greatest smoking country, India. In 2017, the tobacco market’s incomes have come to $122 billion, up from $47 billion in 2012. The China National Tobacco Organization, which successfully holds a national restraining infrastructure on cigarette deals, has detailed a net wage of $18.7 billion dollars in 2010. In fact, it is anticipated that China will lead the way in declining utilization within the coming years. Its government has set out on a drive to decrease smoking through arrangement measures, expanded charges and enactment prohibiting where items can be publicized. Despite this, China is still currently by far the largest cigarette market with over 300 million smokers. CITATION And94 l 1033 (Anderson, 1994)Thus, to assure a demand-based showcase, there are few methods that tobacco manufactures should propose to ensure their clients to choose their tobacco products. Tobacco companies ought to create and advertise brands by centering on four fundamental characteristics which are product, price, placement, and promotion. These headings are central to the theory of promoting and empower brands to be coordinated at different consumer groups, concurring to their person needs and values.
Product. Tobacco items are produces with sums of nicotine, tar, and additional ingredients, which differs between brands. These subtle changes mean that each type of cigarette has a signature taste and strength and can be designed to suit a social group.
Price. Few smokers consider cost to be imperative in their choice of brand. Low-income smokers may be constrained to purchase economy brands since of their budget confinement but are frequently unhappy around having to do so since cheaper cigarettes are lower quality than more costly brands. Tobacco companies create a run of premium, mispriced, and economy brands to cater for individual budget necessity.
Placement. The course by which items are made accessible to the public is vital in determinant of the popularity of a brand. Tobacco companies point to guarantee that all their items are available to all smokers and, so, cigarettes are accessible nearly all-over counting grocers’ shops, newsagents, petrol stations, general stores, fast-food outlets, alcohol stores, bars and bars (via vending machines).
Promotion. A few strategies are utilized to maximize the public awareness of each brand. The position of items in retail outlets is exceptionally vital, and teams of sales representatives regularly visit retailers to ensure that their products are in the best possible position and that the correct pre-agreed amount of display space is allocated to them. Key mid-priced and economy brands are advanced intensely and made broadly accessible in low-income communities.
Marketing is vital for maintaining the success of tobacco manufacturers as it is multifaceted and ubiquitous. The tobacco industry is moving its accentuation absent from maximizing single deals, towards building long-term connections with clients and other key partners within the tobacco advertise. his approach advances competitive advantage and subsequently boosts deals and benefit, but too empowers the tobacco companies to hold authenticity. Connections are being built with approach policy makers, retailers, and the society to undertake to guarantee that tobacco is seen as a satisfactory item in a free advertise economy. CITATION Pal00 l 1033 (Palmer, 2000). In this way, tobacco manufacturers can ensure that their business activities can continue with a minimum of interference from policy makers and the public.