Table of Contents
1.0 Introduction 2
2.0 Determining Marketing Mix 2
2.1 Product 2
2.2 Price 3
2.3 Promotion 4
2.4 Place 4
2.5 People 5
3.0 Comparison of the home and foreign marketing mix 5
3.1 Product 5
3.2 Price 6
3.3 Place 6
3.4 Promotion 6
3.5 People 6
4.0 Factors affecting future marketing strategy (PESTLE Analysis) 6
4.1Political 7
4.2 Economic 7
4.3 Social 7
4.4 Technology 7
4.5 Legal 7
4.6 Environmental 8
Conclusion 8
References 9
1.0 Introduction
This report aims at proposing the intended marketing mix that will be applied by British American Tobacco PLC in the market of Bangladesh based on the factors influencing the marketing approach of the company. The report will also discuss about the differences between the promotional strategy applicable in the foreign market and that of the home market (UK). In order to do so, this report will compare the two marketing mix and explain the similarities and dissimilarities. Finally, the report will discuss about the macro environmental issues that British American Tobacco face in the home country and may face in the foreign market of Bangladesh while entering.
2.0 Determining Marketing Mix
In order to capture the new market of Bangladesh, British American Tobacco PLC should devise a strategic marketing mix that aims at achieving the objectives of the company. As it is evident that while entering a new market, every company faces some barriers regarding establishing a suitable marketing mix, British American Tobacco PLC must focus on the issues that influence the marketing mix. This section provides a brief discussion about the decisions regarding the marketing mix of British American Tobacco PLC in Bangladesh.
2.1 Product
Product is an offering that has the capability to satisfy certain needs in a certain market scenario to certain targeted people through promotion and consumption (Kotler and Armstrong 2009). It is evident from the nature and importance of product that it plays a significant role in every firm’s achieving its objectives and attaining sustainable growth. British American Tobacco PLC will be marketing and selling cigarettes under the brands John Player Gold Leaf, Pall Mall, and Dunhill. Most of these cigarette brands are of premium category and their target market is affluent people. British American Tobacco PLC has offered its products al around the world successfully and has a strong goodwill of offering quality products to its customers. From their experiences, British American Tobacco PLC should use the knowledge effectively to offer the products as per the targeted segment. Currently, the products’ brands offered by British American Tobacco PLC are helping a raise in the company’s overall sales due to their popularity among the young smokers. British American Tobacco PLC is consistently performing well in terms of attracting new and young customer base, which is a pre – requisite to win for every international company (Lambat 2007). Moreover, British American Tobacco PLC’s low-tar strategy will also help the company to be more accessible in the Bangladeshi market.
2.2 Price
Price is the value of an offering that is transferred to the producer / supplier by the customer (Dibb et al. 1996).
Figure: Pricing Strategy determinants of British American Tobacco PLC in Bangladesh Source: Author (2014)
The above figure displays how the British American will decide the pricing strategy in its new foreign market in Bangladesh. All these sources will influence the company’s final pricing strategy. British American Tobacco PLC will be aiming at achieving its targeted profit along with providing the customers with a reasonable price. It is very crucial for British American Tobacco PLC to select the most appropriate pricing strategy for its customers in the foreign market of Bangladesh. This is important because of the fact that customers are very responsive about the price and may stop using a brand or product if the price is not satisfactory to them
