British American TobaccoAnon (2010) postulates that BAT (British American Tobacco) is an international company that manufactures, packages, sell, and distribute tobacco products. It is located in the United Kingdom’s capital London. It is also a holding corporation of all companies owned by the British American Tobacco Group. The organization provides various products such as cigars, cigarettes, and pipe tobacco in over 300 state and overseas brands. Together with other affiliates, BAT generates 919 billion tobacco products in 49 factories operating in forty-one nations. The company’s vision includes achieving international tobacco trade leadership to build investor value.
The company seeks more control amongst its global rivals. The corporate is also intended to be the first in the tobacco trade as the favored main stakeholders’ partner as well as in showing responsibility. The company also intends to increase volume including the international tobacco marketplace value share through mergers, organic development, and acquisition. The British American Tobacco plc as stated by Cookson (2011) handles its operations through the assistance of senior managers and other low-level employees. However, in 2009, the company faced several problems because of the challenges in the FMCG (Fast Moving Consumer Goods) sector.
Its overall marketplace volumes decreased by two percent in all its products although the total performance of the company was solid. According to Howard (2009), the company persisted on investing in its promotional initiatives that led to maintenance of its marketplace shares in the major markets. The GDB (Global drive Brands) developed by a joint four percent on volume, which was a 27 percent in BAT’s international volume. Additionally, the total BAT trademark mix is objective between low price, average price, and premium.
The British American Tobacco plc operates with other business affiliates to make sure that it meets its customers’ demands at the appropriate time and location. However, the company has also benefited from this since it has upheld its market share particularly in the very competitive trade (Howard, 2000). BAT often surveys its global consumer base beside its FMNG business peers and mostly against other rivals in the industry. Its attempts made it to become a recognized business for consumer relations in the tobacco management division in 2009 by Dow Jones sustainability directory. BAT prefers using the “Direct Store Sales” to vend its tobacco products to consumers (British American Tobacco, 2012).
This facilitates better availability of the market or consumer data. This has also assisted it with an unswerving marketing relationship to their tactical sale accounts. In the 2009 financial year, the overall volume of sales in BAT arrived at a 50 percent. Report by Howard (2009) indicates that emerging marketplaces use most of the marketing strategies formed by the tobacco business especially in industrial markets with weak regulations that control the tobacco business.
For instance, the United States including other nations is recycling the sham “low tar” marketing promotion of the tobacco commodities. The United Kingdom Federal Judiciary later found out in 2006 that although tobacco organizations had known that cigarettes containing low tar did not contained any health gain, they still continued to encourage smokers to continue using the products to maintain their income. However, even nowadays, BAT still promotes its products citing that they have low tar.