HERE IS SAMPLE FOR “MKT744: ASSIGNMENT SAMPLE-GLOBAL MARKETING AND SALES MANAGEMENT ASSIGNMENT”
Global marketing involves different activities to facilitate the flow of products and services through implementing strategies and techniques. Sales management is an effective procedure to train and motivate employees to coordinate the operation and drive business revenue. The study examines the global marketing and sales management of the leading cigarette brand, Marlboro, in the UK and Indian marketplace.
Smoking cigarettes was celebrated, legitimated, and glamourized on different populations, and the organization conducts its business despite severe challenges and regulations. This modern drug design makes this brand more popular for “milder low-pH tobaccos” and increased free nicotine. The study focuses on several areas to understand the international organizational image, Marketing environment, market interest strategy, and marketing mix dimensions.
In these two nations, India and the UK, the organization established a strong market by satisfying its targeted groups of customers despite different regulations and restrictions. Marlboro emphasizes replacing cigarettes by valuing customers’ health and safety and takes strategies to achieve the organization’s goal (Pmi.com, 2022).
The engagement of several scientists, technicians, and engineers associates the organization with developing less harmful alternatives to transform the biggest shift. This iconic brand holds a reputed position in this global market for its product and service quality to satisfy customers and increase its revenue over the years.
The reputed American brand, Marlboro (“Men Always Remember Ladies Because of Romance Only”) is recently manufactured and owned by “Philip Morris International.” This organization has become one of the globally recognized “cigarette and tobacco companies” and posters to build a sustainable future by replacing cigarettes. The main vision of the organization is to introduce smoke-free products through research and analysis to increase business value (Pmi.com, 2022). Delivering a smoke-free future is the organization’s main goal, with creating less harmful alternatives to satisfy the global smokers.
As influenced by Wadsworth et al. (2018), the implementation of different strategies to understand customers and government regulations assists it in reaching the peak of success. Recently the organization has been highly concerned to improve its business scenario by product development and entering into different markets by enhancing stakeholder value and maximizing profitability.
Figure 1: Marlboro’s global brand value over the years
(Source: Statista.com, 2022)
In the first-changing times, the organization upholds a strong position and implements different strategies to make the business performance safe. Market development and selling for smoke-free alternatives by influencing world smokers is another key vision of Marlboro. According to Jeong et al. (2018), it brings orange plus sustainable programs through the entire value chain by employing global talent to create transparency.
This brand’s product quality and service increase its profit over the years and takes it to a superior position in this global market. Marlboro has observed significant growth till 2017, and finally, in 2020 and 2021, the organization dropped its sales which ranged about 58.25 and 57.01 billion dollars consecutively (Statista.com, 2022). The organization strives for transparency by understanding government practices and policies.
It creates a responsibility for its stakeholders to reach long-term success and growth through effective engagement of different scientists, technicians bringing innovative ways for cigarette alternatives to drive sustainable growth.
|Political||Tax made on tobacco £196.42 and added 16.5% and 28% GST slab rates for tobacco leaves rated as 5% (statista.com, 2022). “The Family Smoking Prevention and Tobacco Control Act” gives the FDA authority to establish the standards of tobacco and modified risks (Wadsworth et al. 2018).|
|Economical||The inflation rate reached 3.5%
The total volume of the exchange rate in the year is 782.2
Economic growth increased by US$714,144 million (ncbi.nlm.nih.gov, 2022).
The unemployment rate increased by 4.5%
|Social||8.2 million people dead through this use of tobacco use. This is the most cultural barrier.
14.1% of people aged 18 years smoked cigarettes which fell to 14.1%. Consumers have to be more conscious due to the covid-19 situation.
|Technological||Sewtec Automation designs products and manufactures them through systems. Through technological awareness of TMA manufacturing products in the UK. “British American Tobacco (BAT)” has suffered from a type of data breach (Branston and Gilmore, 2020).|
|Legal||Public health laws and UNISON can have several effects in this industry. In addition, the workplace smoking policy also creates huge effects on consumers of the UK. The “Health and Safety at Work Act 1974” requires consumers’ benefits and ensures consumers’ safety (Hughes and Ferrett, 2020).|
|Environmental||In this industry, “annual greenhouse gas contribution of 84 megatonnes carbon dioxide”. Environmental footprint stretches the entire supply chain of this industry. The report shows six trillion cigarettes produced yearly and their impacts on climate.|
Table 1: PESTLE in UK market
(Source: Hughes and Ferrett, 2020)
|Political||Tax made on this tobacco 28% and tribute with “21% or Rs 4.170 per stick”.
Brexit declined the demand for goods in India and resulted in a big drop. In addition, adding or using “lobbyists to influence policy” affects this industry in India. Funding of all political parties also affects (ncbi.nlm.nih.gov, 2022).
|Economical||The inflation rate states at 6.07%, and the above report is forecast at 5.93%. In addition, “Industry chamber Assocham ” in India found that Rs 11,79,498 crore of the economy in India which is mainly estimated at 4.57 crore people. GST rate Cigarette – 64% affects this industry (Baru, 2021).|
|Social||Tobacco creates economic and cultural barriers, and public spending their healthy at 1.04%. In addition, it discusses 91% economic burden and 66% medical costs. It is inconsistent with all physical activities and needs to create “Occupational Health Services” (Mohan et al. 2018).|
|Technological||“Diversified conglomerate ITC” mainly focuses on the sustainability of products in India. “Ministry of Health and Family Welfare” is charged with government formulation (Thakur and Paika, 2018).|
|Legal||“The occupational safety, health and working Conditions code, 2020” has a huge impact and change in the tobacco industry, and “Section 31 of COTPA” mainly creates a set of rules in India (Peters et al. 2020).|
|Environmental||Temanggung Regency is mainly used in different countries in India, which affects the environment and creates huge losses.|
Table 2: PESTLE in the Indian market
(Source: Peters et al. 2020)
In the microenvironment analysis, it is observed that Marlboro is facing several problems due to its different customers and the presence of competitors. Changing the needs and perception of customers due to environmental problems and health effects, the organization faces similar problems to expand its business. “Davidoff, Parliament, Dunhill and Camel” are the key competitors of this organization that provide different products at affordable prices (Lin and Ho, 2019). In this case, in the UK market, the organization cannot meet customers’ demands and increase business revenue.
On the other hand, in the Indian market, the stereotypes and lower income of citizens are major hindrances to afford high-quality products of Marlboro. Baru (2021) opined that it becomes an of crucial problem of the organization to satisfy their customers by offering a lower price for her high-quality products. Different other competitive organizations, such as “ITC, Gold Flake, Flake Kings,” bring different cheapest products to meet customer demands.
Marketing the strategy of this organization plans to deliver and distribute its products to a new targeted market. In the UK, the organization adopts “direct exporting” by eliminating intermediaries and a high degree of control by understanding customers. Marlboro can fully control its products in this market and lead a more secure business to increase profit and revenue.
As opined by Lin and Ho (2019), this marketing technique is beneficial for low-risk levels and increases focus on domestic business, and it comes effective after-sales service. The organization created better brand value by investing a huge amount in product development and increasing its financial performance.
In the Indian market, Marlboro adopts a “franchising market entry strategy” to expand its market and increase its customers. This market entry strategy motivates the employees and speeds the growth by reducing day-to-day involvement in business operations. This new market lowers risk and makes this organization a superior position by creating a customer base.
According to Rosado-Serrano et al. (2018), it increases organizing independence and creates a strong business network by allowing the companies to leverage their assets. Therefore, this market entry strategy is beneficial to increase organizational growth and profit within a limited time frame in this Indian market.
Market segmentation refers to a key procedure to satisfy different customers based on their demographics, needs, prioritizes, and behavioural criteria. For example, in the Indian market, Marlboro follows “behavioural criteria” to understand the changing lifestyle and behavior of the customers’ needs. As cited by Dolnicar et al. (2018), it improves personalization and predicts future behavior through achieving data, and the organization can control its budget.
Besides, the organization adopts “demographic segmentation” to get available and reliable information by increasing customer retention and loyalty in the UK market. These two types of market segmentation are significant for the organization to optimize market strategy through product development and increase its revenue.
Marlboro targets different customers based on their criteria to meet organizational goals and profit by implementing strategies. As Camilleri (2018) influenced, market targeting is a significant way to break down the market into different segments to implement strategies and increase market share. The organization targets men and women of city areas in the UK market to improve its sales and satisfy them. The popularity of smoking in city areas is higher, and the organization targets this customer to improve its profitability and revenue. Besides, in the Indian market, the organization targets over 18young adults to meet customers and increase its market share with a high competitive advantage.
The strategic marketing positioning establishes corporate brand image and product awareness to increase revenue. Marlboro implements key strategies and techniques to take dominant marketing positions and improve its sales in this challenging market. In the words of Adıgüzel (2020), this positioning strategy is designed to promote awareness by increasing customer goodwill and loyalty to meet the expectation of buyers. The organization expands its market in urban and semi-urban areas in the UK To differentiate its product from the competitors and raise product awareness. Besides, in the Indian market, the organization selected the city areas to meet the young, sophisticated customers and increase its brand image.
Marketing mix dimensions based on product meet organizational goals and objectives by establishing a budget and determining sales proposition. Marlboro implements a “product standardization strategy” in the UK market by replacing cigarettes and enhancing the sustainable growth of this organization. According to Jeong et al. (2018), this strategy is significant to increase efficiency throughout the production process and change its ingredients to ensure safety and introduce high-quality products.
It further brings lower production costs, better scaling, and a strong brand reputation in the UK market to satisfy and make different customer segments. Despite different regulations and restrictions from the UK Government and several environmental laws, the product standardization strategy is significant for selling cigarettes (Peters et al. 2020). The strategy is beneficial to enhance and organize an impressive throughout the manufacturing process, reducing additional cost and wastage.
In these challenging times, the customers are more aware of environmental and health issues to purchase a product from an organization. In this aspect, product standardization and development strategy through a sustainable approach are significant to these different customers and the satisfaction they provide through high-quality products.
In the words of Khan et al. (2018), this strategy manufactures and sells cigarettes consistently by upholding standards in quality delivery and appearance in the market. The organization uses the same ingredients and packaging for a particular item to satisfy customers and create product awareness. Marlboro provides high-quality products by instructing time limits and inviting different talented employees, scientists and technicians. Implementing a sustainable approach and product development strategy assist this organization in reaching its targeted customers.
Besides in the Indian Market, Marlboro adopts a “product differentiation strategy” to satisfy different levels of customers by introducing high-quality products. It makes the organization distinguish the product from its competitors by creating brand value and increasing customer satisfaction. As cited by Somogyi (2020), this strategy reduces price competition and makes unique products by understanding customers and their behaviours.
This product differentiation strategy benefits consumer brand value by reducing the risk of substitutes and increasing their profit margin. In adopting this strategy, the organization can maintain consistency and product nature based on their appearance and quality through replacing ingredients. The advancement of science and technology with the engagement of technicians and scientists assessed the organization to explore ways for satisfying customers.
In this aspect, the brand implements this strategy to satisfy different customers based on their habits and choices. This product differentiation strategy is significant to enhance customer segments and economic conditions swiftly and in an organized way. As opined by Harjadi et al. (2022), this strategy is widely applied for its several advantages, and the organization can provide the best services while maintaining safety and health protocols.
In this market, implementing this strategy, the organization improves its business performance through influencing customers, purchasing behavior. Therefore, it is significant to improve competitive advantage through sustainable efforts by maintaining government regulations and restrictions. Implementing an effective strategy is significant for these cigarette items to increase business revenue and competitive advantage.
Effective implementation of price strategy is significant to satisfy customers’ independent marketplace based on their economic standards and priorities. For example, the iconic cigarette brand Marlboro implements a “premium pricing strategy” for its UK customers and brings different product variations. The organization brings high-quality photos from Aristocrats UK citizens and satisfies them by taking a sustainable approach.
Implementing this pricing strategy in this competitive market increases organization and potential customers by enhancing brand awareness. As cited by Khan et al. (2018), the unique manufacturing method for this cigarette is significant to increase organizational revenue and competitive advantage. This industry always justifies premium prices and undermines regulations to increase customer satisfaction and brand performance.
This premium pricing strategy links different advantages in the UK marketplace by creating better prices for high-quality products. This strategy further aims to display product quality for sophisticated customers through the presence of different competitors in the market.
As opined by Jeong et al. (2018), implementing the strategy increases high-profit margin, brand value, and customer loyalty and makes the customer understand product differentiation. This brand is highly concerned with implementing this pricing strategy for economically developed countries and making the products affordable to its customers. Therefore, in the UK market, implementing this strategy, the organization increases its brand value and market share.
Besides, for the Indian Market, Marlboro adopts a “price skimming strategy” for better Business perspectives and increasing its loyal customer. According to the view of Uripi et al. (2021), it increases organizational business performance, and the organization enhances its market by understanding and taking health and safety protocols.
The organization engages a wide range of scientists and experts to create transparency for taking a sustainable approach. According to Pancholi et al. (2019), the organization operates different stores to increase its profitability and sales and create brand awareness in the presence of competitors. In this aspect, that organization can meet different costumes and competitive advantages through product supply and distribution.
Therefore, this pricing strategy benefits this country and increases its potential customers by creating brand awareness and product development. The organization can get a higher return on investment by maintaining its brand image and market segment in city areas. Despite different government regulations and restrictions, Marlboro attracts its competitors through product development and introducing cigarette replacement products. In the words of Harjadi et al. (2022), this effective pricing strategy increases corporate profit and customers by mitigating business challenges and risks.
The global organization implements this place strategy to improve its sales in a particular area through implementing different strategies and techniques. Marlboro has served high-quality products over the years to several nations and has increased its revenue and brand value. Recently, the organization has been highly aware of implementing the placing strategy due to different government regulations and restrictions.
In the UK marketplace, the organization implements an “intensive place strategy” to increase its profits through different stores and locations. According to Pancholi et al. (2019), an adaptation of this place strategy is significant to generate revenue by pushing for impulsive buying. This placing strategy increases different opportunities for the organization to expand the business and generate revenue.
The advancement of science and technology and the trend of smoking has become popular in the UK. In this case, the organization implements this placing strategy to increase product awareness. As cited by Hughes and Ferrett (2020), it makes the product needs to be quickly replaced by including impulsive buying money and product awareness.
It further increases the supply of the product by raising the chances for sales and profitability by increasing more potential and loyal customers. The organization adopts this placement strategy to gain market share and consumer purchases by placing a different marketplace to meet public demand.
In India, the organization implements the “selective place strategy” due to middle-class customers and the presence of affordable and cheapest products. The minimum number of customers and low demand led the organization to implement this strategy to increase product awareness. According to the view of Ramírez et al. (2018), It controls the customer base through dating a better understanding of their demands and increasing customer satisfaction. In some selected stores, the organization distributes its products to increase effectiveness and gain better knowledge.
Implementing this place in strategy in the Indian market is significant to increasing customer share and product development. In the words of Uripi et al. (2021), this selective product distribution ensured the long-term protection of the brand by increasing its high-quality customers.
Moreover, these selective marketing channels organize and produce a minimum number of customers and improve its brand performance. This placing strategy meets a minimum number of customers and easily attracts them through high-quality products (Jeong et al. 2018). Therefore, this placing strategy is effective and beneficial for both the organizers and the customers to increase competitive advantage and achieve high-quality products.
In this competitive market, the organizations adopt promotional strategies through different plans and tactics and increase their product value and service due to several rivalries. The increasing number of industries, high market demand, and substitute products increase market competition, and in this case, the global organization implements promotional strategies to attract customers.
As cited by Yasa et al. (2020), it makes the organization reach its target audience by gaining brand awareness and publishing promotional activities. This promotional strategy is significant by showing differences from the computers and increasing its target audiences by increasing qualified customer traffic. In this competitive and challenging time, the selling of cigarettes becomes more critical for Marlboro to make the business sustainable the organization adopts different strategies and techniques.
The organization implements “direct marketing” in the UK market to attract its customers due to a massive population and increasing its business relations. Promotional strategy is significant to increase customer base and enhance customer satisfaction by creating a higher level. According to the view of Daniel (2018), promotional strategies work better in meeting customer demand and increasing sales and profitability.
Marlboro sends direct messages to its customers about recent product development and innovation to increase its competitive advantage. This promotional strategy significantly increases customer satisfaction by providing different quality products in different stores and locations (Yasa et al. 2020). It is significant to increase revenue and meet customer rates by sharing innovative ideas and product varieties.
In the Indian market, the organization implements social media advertisements to inform the citizens about the substitute of cigarettes due to increasing mortality and morbidity rate. Due to the presence of different government regulations and environmental laws, “The Ministry of Health and Family Welfare” mainly affects all changes in India.
In this aspect, The organization implements different strategies to inform citizens about the substitute products through social media advertisement. According to the view of Utkarsh and Gupta (2019), the strategy is influential and significant to enhance the organization in sales and profitability by awarding them negative aspects of cigarettes. In this aspect, despite the regulations and restrictions, this promotional strategy is significant to increase market share and customer value in the Indian marketplace.
The Indian government regulates different restrictions to increase awareness and provision of smoking in different areas due to the increasing rise of mortality and morbidity rates. Government policy ensures that smoking is banned publicly and banned for under the age of 18 years. In this aspect, this leading cigarette brand, Marlboro, is highly concerned about implementing these promotional strategies to increase awareness and introduce substitute products.
The organization is also able to increase its market share and business value by satisfying a minimum number of customers. In the words of Jeong et al. (2018), this promotional strategy and structure different customers and increase organizational revenue in a minimum time. This will satisfy the customers and increase business performance through dealing with different governmental challenges and product differentiation. Therefore, social media advertisements work better and play an important role in increasing organizational competitive advantage and reducing business challenges.
Based on the above discussion, it can be concluded that Marlboro takes a dominant position in the Indian and UK market and increases business revenue. The Internet and external environmental factors created a severe impact on the business performance, and the organization is unable to increase its customer. Technological change can impact cultural change, climate change, deforestation, and also a waste of products, and Cybersecurity laws also affect this industry to make some relevant changes in India. Due to health and environmental hazards, it affects this industry and its sustainable growth in the global market.
The study critically discusses different strategies of market entry for the organization to increase its customer and competitive advantage. The product segmentation, targeting, and marketing are significant to understand customers and increase its business sales and profit by focusing on a specific area. Recently, the organization’s initiatives of sustainable approach and replacement of cigarette products are the right decisions.
Regarding the choice of the organization in implementing strategy and taking a sustainable and eco-friendly approach is justified and recommended for further business success. Despite the presence of several government regulations and restrictions, the organization takes the initiative to increase customers through product development. The study further illustrates 4P’s marketing mix dimension, “product, price, place and promotion,” to increase its market share and brand value.
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