Professional Documents
Culture Documents
Consumer Marketing Proposal
Consumer Marketing Proposal
Flavored tobacco has and is becoming popular among young people by the way of a
smoking apparatus and or device called the hookah. It originated from the Indian
culture the hookahs were and have been common in the Arab culture for approximately
400 years. Lately hookahs have become fashionable in restaurants and nightclubs in US
cities and college campuses. Hookah tobacco is made by mixing shredded tobacco with
honey, molasses, and or dried fruit. Egyptian tobacco companies began replacing the
honey and molasses with glycerin, enhancing the sweetness and flavor of the tobacco,
and also added an assortment of flavors to make the tobacco more appealing. Tobacco
Phillip Morris
RJ Reynolds
U.S. Tobacco
Lorillard Tobacco
Statistics have shown the earlier in age individuals begin smoking, the more likely they
are to be addicted to nicotine, it’s also noted that physical addiction to nicotine can be
develop rather rapidly. The addiction can and will occur whether the nicotine is
delivered via cigarette or hookah. Presently cigarette smoking in the U.S. is at its lowest
the popularity of flavored cigarettes in young adults smoking may represent a way for
the tobacco industry to addict young people to nicotine and then transition them into
Marketing Strategies
product that has health hazards therefore the company should focus on boosting
consumer confidence. Consumers are hesitant to buy a product they know little about.
A marketing campaign has to be created to emphasize the quality and value of flavored
positive reinforcement devices can not only makes the buying decision easier for
existing smokers
The objectives of the study will be the relationship between the proposed health
hazards of smoking traditional cigarettes versus flavored tobacco via hookahs. Studies
will focus on statistical research between the numbers of consumers that smoke
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flavored tobacco, how often and what effects if any is the result. The information will
Scope
because of the flavored tobacco available for hookahs and the apparent health
advantages of smoking through a pipe rather than smoking cigarettes. The health
benefits of smoking through a hookah are based on the fact that the smoke
Marketing Strategies
Being that each of the subcultures have their own unique market, in order to
market flavored cigarettes in the African American, Hispanic, and Asian subcultures
several strategies must be considered for each respective subculture. First and
concentrations. This will provide a snap shot of each market. Since the product
marketing approach and or strategies suited to best push the product is as follows:
Marketing Research 5
space, and other advertising mediums with the Exotic Smokes logo.
cigarettes.
positive fortifications that will make the buying decision easier for
Environmental Factors
African Americans, Hispanics and Asians are all considered minorities in the U.S.
African Americans have had a profound influence upon American culture as a whole
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more than any other minority group. When it comes to African-American/Black culture,
opinions and values differ based on age, gender, socioeconomic status, education and
Miller Group.
Since emigrating to the U.S. from various regions around the globe Hispanics
have outgrown the African American population in the U.S. However, their influence in
the American culture has not been as profound as that of African Americans as of yet.
Hispanics also share many similarities such as food, language, religion and political
views; however Hispanics are a highly divided subculture that continues to grow as
Like Hispanics, Asians have also emigrated from various regions around the
globe and are divided subculture as well but unlike Hispanics they don’t share the same
African American influence has infused American culture in fashion, music, dance
and language which are a few examples of the vast power this market segment has on
mainstream America. (Quebecore world, 2008) Research shows that most African
both culturally and racially. (Quebecore world, 2008) A survey conducted by Pew
Research showed that nearly four in ten respondents (37%) said that African Americans
Hispanics now represent the largest minority in America ("Hispanics now largest," 2003)
represented by more than 20 nations with similar but not necessarily identical cultures.
Southern Central America (Costa Rica and Panama): Hispanics from these
countries have a stronger Spaniard influence than their neighbors from Northern
Central America.
Hispanics rely heavily on their family unit and faith (most are Catholics) for guidance
and or direction when dealing with difficult decisions. Hispanics have begun to have a
emigrate to the U.S., their goals as a subculture is to gain acceptance, respect and for
Asians have some of the same challenges as Hispanics; their culture is even more
diverse because they don’t share the same language, religion, political views or foods.
Asia includes Japan, China, Thailand, Philippines and India among others, all of these
countries have different religions, languages, politics, foods and social cultures;
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however, in the U.S., Asians, like Hispanics are grouped under one single group which
neglects their individual culture from their respective region around the world.
strive hard to achieve success. Asians mostly stay committed to their culture, heritage
and beliefs so they rarely choose to assimilate or integrate into American culture as
African Americans needs and wants are to be successful through their individual
efforts. Marketing flavored cigarettes must convey sophistication, style, class and
individuality for those who will smoke them; it must be positive, sincere empowering
with a successful African American as well as the upper class and middle class of the
Since Hispanics rely heavily on tradition and family and because a sense of
circulation and publications in the Hispanic market. Language will also be a key factor in
the advertisement of the product it must be done in both English and Spanish.
strategy must include an understanding of their respect for their traditions, culture and
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their identity within the Asian market. The advertisements as well as the channel(s) of
delivery must target all Asians and the language must reflect the different countries
The general perception of flavored cigarettes is that they will ultimately lead to
tobacco addiction for youth. The negative publicity is aimed to discredit tobacco
companies and the tobacco industry to protect the youth of America from "candy-
flavored cigarettes" and cigarettes in general that would otherwise lure them into a
lifelong tobacco addiction. It will take time to counter these attacks and perceptions.
The strategy that will be implemented is the Multiattribute Attitude Model. Exotic
Smokes will have to change the attitudes of consumer’s salient beliefs surrounding the
tobacco industry.
pragmatic rather than scientific grounds, the results may be biased. Probability
sampling can be used for selecting communities when the number of the communities
included by a development intervention is not large. However, if the sample size is very
small, random probability sampling can give a distorted picture. There are two non
probability sampling techniques that can be used for selecting communities for
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according to relevant criteria and including a fixed number from each category in the
Sample Data
We will implement two techniques in order to conduct our interviews: the face to
face and telephone interview. Interviews are a more personal form of research than
questionnaires. In the personal interviews, the interviewer works directly with the
respondent. Much different than mail surveys, the interviewer also has the opportunity
to probe and or ask follow-up questions. Interviews are typically easier for the
respondent, especially since Exotic Smokes will seek consumer’s opinions and or
impressions. Interviews can be very time consuming and they are resource intensive.
majority of the major public opinion polls that are reported are based on telephone
interviews. Like personal interviews, they allow for some personal contact between the
interviewer and the respondent and, allow the interviewer to ask follow-up questions.
Survey Methods
The costs of group interviews are the remunerations, per diem, renting rooms for
the discussions, traveling expenses for the interviewer(s) and a modest honorarium for
the participants. Fortunately expenses can be reasonable for local experts from the host
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countries. We have projected the aggregate professional fees will cost an estimated
$80,000.
Remunerations $35,000
Honorarium $ 5,000
See Appendix A
See Appendix B
See Appendix C
Screener Questionnaire
The objective and purpose of the Questionnaires is to obtain data to support the
questionnaires will provide the company with the necessary data and consumer
behavior information need to understand our customer base and solicit prospective
customers.
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Interviews are also one of the rapid, cost-effective data collection methods. It
involves the use of direct probing techniques to gather information from several
individuals in a group situation. Apparently the difference between the individual and
variations between the two with regard to planning, nature of interview guides, probing
provide background information and assist in generating ideas for marketing and
advertising strategies. Interviews are also useful for acquiring data for monitoring and
TRIAAD Research Group has been hired by Exotic Smokes Cigarette Company
(ESCC) to conduct an in-depth study of consumer behavior; analyzing the market for
After a brief research of the cigarette consumer market, 90% of smokers start before
Considering the 2009 Family Smoking Prevention Act has banned the
manufacturing and sale of flavored cigarettes in the U.S., TRIADD has directed the rest
of its research at international youth. Three main consumer behavior concepts were
Identity refers to how people see themselves compared to how they want to be
seen. Teenagers, with lack of maturity, tend to have a lower self-image. This lack of
everyone, even more so young people, is belonging and love. As adolescents move into
their teens, peer pressure and insecurity about appearance and popularity make them
more vulnerable. They believe cigarettes will give them peer approval and a sense of
belonging.
The research has led TRIAAD to promote flavored cigarettes internationally and
focus marketing efforts in Italy and Denmark. Culture consists of many factors: laws,
values, and norms. In Italy, 25% of the population smokes while the legal smoking age
is 16. In Denmark 28% of the population are smokers with lax laws on smoking under
the age of 18, where society is based on uniformity and rejects individuality and self
worth. These two cultures provide the necessary means to successfully market flavored
cigarettes.
must understand their target market and how individuals within that market personally
identify themselves (Perner, 2010). TRIAAD should consider the style of this age group
and where they like to spend their time. The expectation is that understanding
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consumer identity will enable TRIAAD to promote candy flavored cigarettes as the
initiative. This focus will enable TRIAAD to unravel the reasons consumers would or
would not have a desire for candy flavored cigarettes. For instance, consumers could be
under the perception that candy flavored cigarettes are healthier than standard
cigarettes.
tailoring the marketing program toward the proper culture. Since marketing candy
flavored cigarettes is illegal in the United States, TRIAAD must focus its marketing
research on the international marketplace and take steps that support the culture of
those respective countries. The expectation is that consumers in these locations will be
allows one to gain knowledge on specific reasons for smoking, along with potential
1. At what age did you first try a cigarette or any other form of tobacco?
A. < 10
B. 10-12
C. 13-15
D. 16-18
E. Over 18
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2. In your opinion, what do you think is the appropriate age to be able to purchase
tobacco products?
3. What was the key factor that led you to begin smoking?
A. Parents smoked
B. Peer Pressure
C. Advertising
D. Other
b. Camel
c. Kool
d. Marlboro
e. Newport
a. At home
b. At a social gatherings
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c. During work
9. If candy flavored cigarettes were less expensive would you purchase them over
your current choice?
10. What types of flavors would be most appealing to you? ( circle all that apply)
a. Mint
b. Fruit
c. Dessert
d. Coffee flavors
The general perception of flavored cigarettes is that they will ultimately lead to
tobacco addiction for youth; however, this view is held by older non-smoking adults,
and is therefore not the views of our target market. The marketing strategy that
TRIAAD intends to implement is based on the culture and lifestyles of the young adults
in Denmark and Italy and to position our brand as part of that lifestyle. There are four
1) Sell our brand of flavored cigarettes at local bars, clubs, and events that teens
and young people frequent.
2) Use the popular music styles and artists to promote the brand.
3) Market specific flavors that are popular among teens in Denmark and Italy.
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Since the target market is to 18-25 year olds, and 16 year olds in Italy, we need
to position the brand as part of their lifestyle; making them view flavored cigarettes as
a further extension of themselves. All of the marketing will center on the main thought
that Exotic Smokes Cigarettes is designed specifically for the lifestyle and enjoyment of
young adults. Using popular music styles and artists from their area will allow the kids
to connect with the brand on a personal and social level. While selling the cigarettes at
local venues will send the message that we are meeting them where they are. Lastly,
name and associating our image with that which interests them.
will lead to the successful marketing of candy flavored cigarettes in Italy and Denmark.
The development and application of questionnaires and surveys for the target market
Marketing Strategies
Being that each of the subcultures have their own unique market, in order to
market flavored cigarettes in the African American, Hispanic, and Asian subcultures
several strategies must be considered for each respective subculture. First and
concentrations. This will provide a snap shot of each market. Since the product
marketing approach and or strategies suited to best push the product is as follows:
space, and other advertising mediums with the Exotic Smokes logo.
cigarettes.
positive fortifications that will make the buying decision easier for
Environmental Factors
African Americans, Hispanics and Asians are all considered minorities in the U.S.
African Americans have had a profound influence upon American culture as a whole
more than any other minority group. When it comes to African-American/Black culture,
opinions and values differ based on age, gender, socioeconomic status, education and
Miller Group.
Since emigrating to the U.S. from various regions around the globe Hispanics
have outgrown the African American population in the U.S. However, their influence in
the American culture has not been as profound as that of African Americans as of yet.
Hispanics also share many similarities such as food, language, religion and political
views; however Hispanics are a highly divided subculture that continues to grow as
Like Hispanics, Asians have also emigrated from various regions around the
globe and are divided subculture as well but unlike Hispanics they don’t share the same
African American influence has infused American culture in fashion, music, dance
and language which are a few examples of the vast power this market segment has on
mainstream America. (Quebecore world, 2008) Research shows that most African
both culturally and racially. (Quebecore world, 2008) A survey conducted by Pew
Research showed that nearly four in ten respondents (37%) said that African Americans
Hispanics now represent the largest minority in America ("Hispanics now largest," 2003)
represented by more than 20 nations with similar but not necessarily identical cultures.
Southern Central America (Costa Rica and Panama): Hispanics from these
countries have a stronger Spaniard influence than their neighbors from Northern
Central America.
Hispanics rely heavily on their family unit and faith (most are Catholics) for guidance
and or direction when dealing with difficult decisions. Hispanics have begun to have a
emigrate to the U.S., their goals as a subculture is to gain acceptance, respect and for
Asians have some of the same challenges as Hispanics; their culture is even more
diverse because they don’t share the same language, religion, political views or foods.
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Asia includes Japan, China, Thailand, Philippines and India among others, all of these
countries have different religions, languages, politics, foods and social cultures;
however, in the U.S., Asians, like Hispanics are grouped under one single group which
neglects their individual culture from their respective region around the world.
strive hard to achieve success. Asians mostly stay committed to their culture, heritage
and beliefs so they rarely choose to assimilate or integrate into American culture as
African Americans needs and wants are to be successful through their individual
efforts. Marketing flavored cigarettes must convey sophistication, style, class and
individuality for those who will smoke them; it must be positive, sincere empowering
with a successful African American as well as the upper class and middle class of the
Since Hispanics rely heavily on tradition and family and because a sense of
circulation and publications in the Hispanic market. Language will also be a key factor in
the advertisement of the product it must be done in both English and Spanish.
Marketing Research 22
strategy must include an understanding of their respect for their traditions, culture and
their identity within the Asian market. The advertisements as well as the channel(s) of
delivery must target all Asians and the language must reflect the different countries
Cigarettes to the 18-25 year-old target market in Italy and Denmark. To position the
recommended brand positioning for Exotic Smokes Flavored Cigarettes, and understand
how this positioning strategy will influence the target market. Finally, TRIAAD will
address pricing and the importance of positioning within the marketing plan.
Over the years tobacco companies have attempted to increase their market
share by targeting women, minorities, and young people, in addition to the standard
marketing practices for the white middle-age demographic. Position strategies range
from Lambert and Butler’s “simple and easy” campaign targeting the uneducated
market, to Silk Cut King Size brand’s marketing to “slobs” which consist of 27% of their
market. Marlboro has been successful with a trendy position among young adults,
although Kool has launched a sexy campaign featuring muscle-bound men and
attractive women. In South Korea, advertising campaigns link smoking with feminism
and the liberation of women. Brands are using product design to target women,
associating smoking with body image so-called "ultra light" and "super slim" falsely
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suggesting certain brands offer a healthier option, as well appealing to female concerns
Other marketing tactics competitors use are to offer gifts, vouchers, or coupons
as ways to give the brand added value (The Center for Tobacco Control Research,
1998). Benson and Hedges, Amber Leaf, Imperial Tobacco, and Marlboro all target
young smokers by attending, sponsoring, and selling products at major music festivals;
this also creates a buzz around their products. Many tobacco companies target specific
(American Heart Association, 2010). Still, British American Tobacco has begun to focus
its efforts toward the younger market through the use of the Internet world such as
Association, 2010)
TRIAAD Research Group proposes to position Exotic Smokes Cigarettes fruit and
candy flavored cigarette line as the cool and flirtatious cigarette in the minds of young
Exotic Smokes Flavored Cigarettes. TRIAAD will reinforce the position strategy with the
tag line, “Get a Candy Kiss.” The act of smoking a cigarette resembles that of a kiss,
whereas the candy flavors of the cigarette will stay in the customer's mouth during
kissing. The brand will have a presence at all young adult concerts and events, and sold
at kiosks from attractive young girls and guys. The flavored cigarettes will be
Research presented to parliament suggests that 17% of 11- to 15-year-olds who smoke
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regularly buy cigarettes from vending machines (Journal of Nicotine and Tobacco
teen and young adult magazines. When a young girl is thumbing through a
magazine full of cute boys and thinking how it would be to kiss those young
One thing all teenagers like to do is kiss. Teenagers consider kissing remarkable,
fun, and flirtatious! TRIAAD does not expect boys to buy their favorite candy flavored
cigarettes. TRIAAD expects that they will purchase the favorite flavor of their girlfriend.
If given the choice to smoke a cigarette that will leave the customer tasting like an
ashtray or one that will put a sweet taste on the tongues of customers, it would not be
difficult to determine the product that a girl would choose. The position strategy
TRIAAD proposes will influence the target market from a social and sexual level. The
Positioning Strategy
Developing effective positioning places the product first in line in the minds of
potential customers and provides the tools to create an effective image. Various
elements will be used to support TRIAAD’s position in the market with candy flavored
cigarettes. The first is pricing, and defining if the product is a luxury item, in the middle,
how those customers will obtain Exotic Smokes candy flavored cigarettes. One
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important factor is properly packaging candy flavored cigarettes. The goal is to package
in such a way that makes a strong statement and will deliver the company's intended
and most significant strength, along with what is unique about flavored cigarettes. All of
these variables will help support how important it is to position the product correctly.
Pricing Strategy
With the age range of the target market, the initial assumption is that the price of
candy flavored cigarettes needs to be economical. TRIAAD must be careful that the
recommendation is not too low, as customers may consider it an inferior product and
wonder what is wrong with it instead of assuming that they are receiving a good deal
(Peter & Olson, 2008). Considering the economic status of most 18-25 year-olds,
TRIAAD recommends that the price of candy flavored cigarettes be set at prices
somewhat cheaper than standard brands, yet competitive with other cigarette prices
TRIAAD will take into consideration the relative tax consequences of cigarette
purchases in Italy and Denmark when setting prices. For instance, cigarettes smokers in
Italy pay a 75% tax rate to purchase a package of cigarettes, and in Denmark, the tax
rate is about 73%. In the United States, the average tax rate is around 37% (Tobacco
Atlas, 2010).
The attached Excel spreadsheet provides details about the three specific pricing
strategies and price set that TRIAAD will establish for ESCC. As the spreadsheet
indicates, to gain market share, TRIAAD will recommend that the initial price of
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cigarettes be set relatively low and offer a Buy One Get One Free promotion as part of
its pricing strategy. In addition, TRIAAD will use a psychological pricing strategy by not
selling cigarettes in whole dollars. Furthermore, the company will implement product
Ethics
Exotic Smokes Flavored Cigarettes has a lot to consider when the decision is
made to move forward with the marketing plan and strategies for their Flavored
Cigarettes, not to mention their reputation and how they will be perceived in the public.
Companies are becoming more socially and community responsible. More and more it is
expected by all stakeholders that companies have a corporate social responsibility policy
and even include this in their financial reporting by means of the “Triple Bottom Line”
alternative to being seen as one of several tobacco companies Exotic Smokes has to
change its marketing position to one which is concerned with and disapproves with
marketer of consumer products, intended for adults. Not to be seen as one of several
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tobacco companies using slogans to promote hidden agenda’s or their own self-interest
disastrous.
Tobacco companies are under fire for their ethics or lack thereof for blurring the
itself must acknowledge and accept Corporate Social Responsibility, how is it applicable
in the field of marketing and the ethical conflicts that may be faced by marketers, the
into business operations, supply chains, and decision-making processes. The issues that
represent a company’s CSR focus vary by business, CSR typically includes issues related
market place and workplace. CSR requires that a responsible company take into full
account of the impact on all stakeholders and the environment when making decisions.
This requires Exotic Smokes to balance the needs of all stakeholders with their need to
For Exotic Smokes, optimization of profits is the focus rather than the maximization of
responsible are:
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A socially responsible company will care about its customers, employees, suppliers,
local community, society, and the environment. Exotic Smokes must take the approach
that we recognize our product has a wide impact on society and that marketing in
society, in turn will benefit as well as support the company to pursue its business
successfully.
Conclusion
TRIAAD believes that its recommendation that ESCC position its cigarettes by
promoting a product that customers will view as cool, flirtatious, and fun. Furthermore,
ESCC will establish a prominent entrance into the market by promoting candy flavored
cigarettes at places where 18-25 year-olds are likely to gather. Finally, introducing and
competitive, yet inexpensive levels will enable ESCC to retain customers, and maintain
long-term growth.
Marketing Research 29
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