Marketing in regulated industry : Study of Tobacco Industry
Dhungana, Bijay; Dhungana, Bijay (2020)
Dhungana, Bijay
Dhungana, Bijay
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2020101721389
https://urn.fi/URN:NBN:fi:amk-2020101721389
Tiivistelmä
Most of the companies invest heavily in marketing and make use of available communication channels such as digital media, print and press, television and social media to reach their customer and to build relationship satisfying consumer needs. However, there are sets of industries where marketing of their products is highly regulated and their marketing channel is restricted. These regulations control the sales and advertisement of products since they are either mandated by government, international organization, health authorities or rejected by society and public communities.
The main aim of this thesis was to understand the marketing strategies adopted by tobacco companies despite the existing strict regulation and find out whether they have been able to reach their end custom-ers using these strategies. Another objective of the research was to understand source of knowledge of respondents on how a cigarette consumer came to know about particular cigarette brand when adver-tisement of cigarettes is banned in all forms of media. In order to achieve this aim, a survey among legal aged smokers was conducted through the questionnaire.
This thesis is divided in two major parts where theoretical part defines regulated market, marketing strat-egies, marketing element and presents SWOT analysis of tobacco companies that operate in highly re-stricted, yet profitable market. Findings of this thesis suggested that conventional marketing doesn’t allow tobacco companies to reach their end customer forcing them to invest heavily in unconventional marketing initiatives. Companies have complied with legal requirements but have identified alternative ways such as content marketing to subtly deliver their portfolio of products to end customer. One of the major strategies adopted by these companies was to invest heavily on travel retail space, and, develop alternative products and strategies to reach diverse demographics of customer. On the other hand, the average value of the ability to reach end customer in a scale of 1-5 was 3.10 which indicates that re-striction in marketing has no effect on manufacturer ability to reach end customer.
This thesis ensures generalizability in the context of other regulated and restricted markets such as sale of alcohol and alcoholic products. It could also serve as guide to firms and companies that are willing to market their products to niche segment of the economy and reach their consumers who prefer highly differentiated products and prefer personalized marketing media rather than mass communication.
The main aim of this thesis was to understand the marketing strategies adopted by tobacco companies despite the existing strict regulation and find out whether they have been able to reach their end custom-ers using these strategies. Another objective of the research was to understand source of knowledge of respondents on how a cigarette consumer came to know about particular cigarette brand when adver-tisement of cigarettes is banned in all forms of media. In order to achieve this aim, a survey among legal aged smokers was conducted through the questionnaire.
This thesis is divided in two major parts where theoretical part defines regulated market, marketing strat-egies, marketing element and presents SWOT analysis of tobacco companies that operate in highly re-stricted, yet profitable market. Findings of this thesis suggested that conventional marketing doesn’t allow tobacco companies to reach their end customer forcing them to invest heavily in unconventional marketing initiatives. Companies have complied with legal requirements but have identified alternative ways such as content marketing to subtly deliver their portfolio of products to end customer. One of the major strategies adopted by these companies was to invest heavily on travel retail space, and, develop alternative products and strategies to reach diverse demographics of customer. On the other hand, the average value of the ability to reach end customer in a scale of 1-5 was 3.10 which indicates that re-striction in marketing has no effect on manufacturer ability to reach end customer.
This thesis ensures generalizability in the context of other regulated and restricted markets such as sale of alcohol and alcoholic products. It could also serve as guide to firms and companies that are willing to market their products to niche segment of the economy and reach their consumers who prefer highly differentiated products and prefer personalized marketing media rather than mass communication.