Customers are
vital to the success of any business. Consequently, existing firms looks at
ways of retaining customers while new businesses develop unique approaches to
attract clients. Usually, the number of consumers who use a service or a
product determines the market share of a firm. In addition, it translates to
the level of revenues received by the enterprises. Naturally, firms do market
research to identify gaps in the market that are not met by the existing
products. The new goods or services are therefore, designed to fill the gaps (Hiilamo,
Crosbie & Glantz, 2014). For any new product, wrestling market share from
the existing product or business may not be easy. Therefore, each product is
designed to serve a target market. Simply, a target market is the potential
customers. The paper will discuss marketing strategies that can increase the
number of cigarette sales among the teens in Canada.
The study shows most people start
smoking at teenage. Consequently, tobacco companies in Canada are developing
marketing plans intended to hook this group. Typically, the adult smokers are
dying because of age and other health issues, the only way to keep tobacco
companies up and running is to encourage teens to smoke (Hiilamo, Crosbie &
Glantz, 2014). The effects of smoking on the health of an individual are known,
and governments across the globe are developing regulations to combat tobacco
use. Therefore, tobacco companies have to develop market plans that win the
mind and hearts of potential smokers and the regulators.
Advertising Plan
The legal smoking age in Canada is
18 to 19 years. Therefore, the target market for the product is the high school
and college students. Research show many teens who smoke in Canada think smoking
is stylish. In addition, the challenge facing
the cigarette market in Canada is the dwindling number of smokers due to age
and health related issues. The strength of the market is the higher rates of
teen smokers compared to other Western societies. Simply, the market for the
cigarettes in Canada is growing at higher rates than other western countries (Hiilamo,
Crosbie & Glantz, 2014). The threat to the market is the contraband from
the United States that constitutes almost a third of the market share. The
other threat is the government imposition of taxes, which is making Canadian
cigarettes too expensive and attracting dealers in contrabands.
Canadian cigarettes companies are
inventing new ways to attract teen smokers. For example, cigarette wraps that
contain flavors are used to entice teenagers to smoke. Research show celebrities influence decisions
of the youth in smoking (Hiilamo, Crosbie & Glantz, 2014). Typically, teens
will consider smoking okay if they see celebrities smoking.
The short-term goal of the
advertisement is to create brand awareness in this segment of the market (young
population). In Canada, there are at least three cigarette companies. Every
business has its brand reputation (Hiilamo, Crosbie & Glantz, 2014). Consequently,
the advertisement plan will be geared towards achieving the specific goal of
the individual cigarette maker. The advertisement is also aimed at increasing
the profit margins through increased unit sales. The long-term purpose of the
marketing plan is for each company to grow its market share. Importantly, the
companies seek to ward off competition brought about by contrabands.
Most companies use at least 8% of
their marketing budget in magazines. Sales promotion takes the biggest share
(33%) followed by television (29%), newspaper (19%) and radio (8%) (Hiilamo,
Crosbie & Glantz, 2014). The general analysis shows many tobacco firms in
Canada prefer sales promotion to grow their market share and create brand
awareness.
Public Relations Plan
Public relations programs define how
the business portrays to the eyes of the public. Firms need to show compassion
and care to the customers. The primary goal of the public relations is to
create a brand image or business reputation. Therefore, public relations
program is a central theme in marketing strategy. The plan for cigarette
companies includes media outreach, where reporters put news features about
positive steps companies are taking to reduce negative impacts of tobacco to
human health. The other approach is the press release calendar, which marks key
media event dates. Notably, companies are also engaged in byline articles where
experts give opinions and advice to consumers (Hiilamo, Crosbie & Glantz,
2014). Other strategies that are frequently used include case studies that
highlight real life examples of the steps taken by the firms in combating the
adverse effects of smoking. Organizing workshops and speaking opportunities are
other excellent ways tobacco companies are maintaining and growing their market
share.
Event Sponsorship Plan
Tobacco companies sponsor sporting
and arts events. However, companies have faced a myriad of challenges including
the 1991 ban on event sponsoring. In 2003, companies were also prohibited from
displaying their brand name during sponsored sporting and arts events (Hiilamo,
Crosbie & Glantz, 2014). Nevertheless, companies continue to fund such
incidents in a bid to win consumers trust and build a reputation. Therefore,
sponsoring teen events such as skating competitions is one-way tobacco
companies in Canada are expanding their market base.
Sales Promotion Plan
Many firms in tobacco industry use a
large part of their advertising program in sales promotion (33%). Sales
promotions are crucial in influencing customers to buy differently or lure them
away from the competitors (Hiilamo, Crosbie & Glantz, 2014). The goal of
the promotion plan will be to make teen make cigarette purchase more
frequently. Importantly, the program aims at encouraging lapsed customers to
retry the product. Mainly, the plan
intends to improve the performance of the business during the slow hours when
demand is low. The promotion incentives included in the scheme are discounts,
samples, and events to attract crowds and enthusiasm. Price has been the
significant factor pushing young people to use contrabands. The discounts are
aimed at encouraging teens to make more purchases during the promotional
events.
Personal Selling Plan
The purpose of including the program
in the marketing strategy is to create customer relationships. In addition, the
scheme may help discover and communicate customer tastes and preferences.
Tobacco companies can then use the information to make a product that matches
the needs of the consumer. The approach
of personal selling is very effective in generating sales. The response from
the customers is almost immediate (Hiilamo, Crosbie & Glantz, 2014).
Therefore, personal selling will help tobacco companies to meet the needs of
the teenage smokers. Consequently, the volumes of sales are expected to rise as
the market grows.
Direct Marketing Plan
The method involves the firms
getting in contact with the end user. Therefore, staff from tobacco companies
will be directly interacting with teens. The key component in the process is to
analyze the customer database and initiate measures that can them make
purchases (Hiilamo, Crosbie & Glantz, 2014). The goal of direct marketing
is to increase the volume of sales and profit margins.
In
conclusion, the smoking population in Canada is declining. The industry players
have to take decisive steps to retain and expand the market. The teens are a
target market that is growing. Tobacco companies are developing marketing
strategies aimed at capturing the market. In addition, the marketing strategies
aim at protecting individual companies’ market share and increase the brand
awareness.
Reference
Hiilamo, H., Crosbie, E., & Glantz, S. A. (2014). The evolution of health warning labels on
cigarette packs: the role of precedents, and tobacco industry strategies to
block diffusion. Tobacco
control
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