Running head: Marketing Research 1

Consumer Research Proposal

Marketing Research 2

Consumer Marketing Research Proposal

Introduction

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

companies competing in the flavored cigarette market are:

 Phillip Morris

 RJ Reynolds

 Brown & Williamson

 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

level in 55 years, with a proportionate decrease among adolescents. With an increase in

Marketing Research 3

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

cigarette smoking later in their lives.

Marketing Strategies

The tobacco companies understand what their up against when marketing a

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

cigarettes. A marketing strategy that emphasizes testimonials, endorsements, and other

positive reinforcement devices can not only makes the buying decision easier for

existing smokers

, but may also attract new customers.

 Advertise in magazines with a readership of young adults 18-25

 Place signage (billboards) in locations young adults frequent

Specific Program objectives

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
Marketing Research 4

flavored tobacco, how often and what effects if any is the result. The information will

be used to market to the segment the company plans to market too.

Scope

Many people see hookah smoking as a good alternative to smoking cigarettes,

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

is passed through water before it reaches the smoker’s lips. The

geographical parameters and customer groups would be college campuses

and the students.

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

foremost it is important to know how each of the respective subcultures identifies

themselves, buying power, consumer profile and their respective geographic

concentrations. This will provide a snap shot of each market. Since the product

(flavored cigarettes) is controversial at best in all of the mentioned subcultures the

marketing approach and or strategies suited to best push the product is as follows:
Marketing Research 5

 Boost Consumer Confidence - create a marketing campaign that

emphasizes the quality and value of flavored cigarettes.

 Generate Awareness – Create a campaign to promote flavored

cigarettes in as many ways as possible. In essence this marketing

strategy will create an extensive buzz by covering local airwaves, print

space, and other advertising mediums with the Exotic Smokes logo.

 Influence Emotions - Buying decisions are emotional for most

consumers. Create a campaign that makes consumers feel good about

themselves, Exotic Smokes, and their overall decision to buy flavored

cigarettes.

 Counter Opposition – Create and promote a marketing strategy that

accentuates taste, flavor, testimonials, endorsements, and any other

positive fortifications that will make the buying decision easier for

existing customers, and also attract new customers.

 Set a Deadline - People respond to deadlines create marketing

strategies planned around the thought of limited supplies, provisional

price cuts, and or other methods that generate a sense of need.

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
Marketing Research 6

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

mindset as well as geographic, family or educational influences, according to Hunter

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

more Hispanic’s emigrate to America.

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

religion, political views, food, or language(s).

Cross Cultural Differences

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

Americans are and want to be viewed as heterogeneous rather than homogeneous,

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

can no longer be thought of as a single race.

Marketing Research 7

Hispanics as mentioned are a highly diverse population in the United States;

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.

Similarities in Hispanics can be grouped by regions:

 Northern Central America (Mexico to Nicaragua): Hispanics from these countries

are the most willing to embrace the American culture.

 Southern Central America (Costa Rica and Panama): Hispanics from these

countries have a stronger Spaniard influence than their neighbors from Northern

Central America.

 Northern South America (Colombia, Venezuela, Perú, Ecuador and Bolivia).

 Southern South America (Chile, Argentina, Uruguay, Paraguay, Brazil).

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

significant presence in music, sports and politics as well. As Hispanics continue to

emigrate to the U.S., their goals as a subculture is to gain acceptance, respect and for

Americans to recognize their culture, individuality and contributions.

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;
Marketing Research 8

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.

Asians that immigrate to America do so to pursue a better life therefore they

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

aggressively as Hispanics or other minorities.

Marketing Selection Strategies

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

and authentic. It is recommended that there be a mixture of advertisements associated

with a successful African American as well as the upper class and middle class of the

everyday African American.

Since Hispanics rely heavily on tradition and family and because a sense of

belonging is important, advertisements must convey an image of family tradition and

success. The advertisement of the product will need to be in publications of national

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.

Asians have a lower profile in American culture therefore their marketing

strategy must include an understanding of their respect for their traditions, culture and
Marketing Research 9

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

that comprise the Asian population in the U.S.

Negative Publicity and Perceptions

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.

Interviews Needed for Sufficient Data

It is extremely important when conducting interviews that the communities

selected be representative of the total population. When communities are selected on

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
Marketing Research 10

community interviews. One is quota sampling, which involves classifying communities

according to relevant criteria and including a fixed number from each category in the

sample. A second non probability sampling technique is to select communities on the

basis of expert advice. However, to guard against bias or a misinformed source, it is

advisable to consult more than one expert for sampling purposes.

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.

Telephone interviews enable a company to collect information rapidly. The

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
Marketing Research 11

countries. We have projected the aggregate professional fees will cost an estimated

$80,000.

Projected Professional Fees

 Remunerations $35,000

 Per Diem $10,000

 Room Rentals $20,000

 Traveling Expenses $10,000

 Honorarium $ 5,000

Consumer Sample Questionnaire

See Appendix A

Attitudes and Intention Questionnaire

See Appendix B

Close and Open Ended Questions Questionnaire

See Appendix C

Screener Questionnaire

The objective and purpose of the Questionnaires is to obtain data to support the

strategies to market and advertise Exotic Smokes Flavored Cigarettes. The

questionnaires will provide the company with the necessary data and consumer

behavior information need to understand our customer base and solicit prospective

customers.
Marketing Research 12

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

group interviews is the number of participants, this distinction contributes to major

variations between the two with regard to planning, nature of interview guides, probing

techniques, and analysis of information.

Interviews can serve a wide range of information collection purposes. They

provide background information and assist in generating ideas for marketing and

advertising strategies. Interviews are also useful for acquiring data for monitoring and

evaluation purposes and for interpreting solicited quantitative data.

See Appendix D for Questionnaire

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

flavored cigarettes with a marketing strategy to attract 18- to 25-year-old customers.

After a brief research of the cigarette consumer market, 90% of smokers start before

their 18th birthday.

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

used to target potential buyers: Identity, Motivation, and Culture.

Marketing Research 13

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

confidence promotes an emotional purchase and a disregard of risk in order to have

people view them in a certain way.

Motivation is what inspires someone to purchase a product to satisfy a need.

According to Maslow’s hierarchy, the most overwhelming and essential needs 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.

Instead of focusing on specific consumer needs and wants, marketers today

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
Marketing Research 14

consumer identity will enable TRIAAD to promote candy flavored cigarettes as the

popular trend for 18-25 year-olds.

In addition, customer motivation is critical to the success of any marketing

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.

One of the biggest failures in most marketing strategies is not appropriately

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

more receptive to candy flavored cigarettes (Abdin, 2008).

Below is the questionnaire used amongst 18-25 year-olds. The questionnaire

allows one to gain knowledge on specific reasons for smoking, along with potential

motivation for trying candy flavored cigarettes.

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
Marketing Research 15

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

4. What is your initial response to candy flavored cigarettes?

5. What brand of cigarettes do you usually smoke?

a. I do not have a usual brand

b. Camel

c. Kool

d. Marlboro

e. Newport

f. Some other brand

6. How often would you say you smoke?

a. 2-3 times a day

b. More than 3 times a day

c. A few times a week

d. Only in social settings

7. When or where do you commonly smoke?

a. At home

b. At a social gatherings
Marketing Research 16

c. During work

d. Any time you feel the need

8. If candy flavored cigarettes provided an essential flavor of your choice do you

think you would purchase them over your current choice?

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

e. Margarita or Alcohol themed

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

steps to implement in order to execute this strategy.

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.
Marketing Research 17

4) Place advertisements of popular attractive young people holding our brand of

cigarettes in various magazines targeted at our age demographic.

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,

by placing advertisements in teen magazines, Exotic Smokes is reinforcing the brand

name and associating our image with that which interests them.

Information regarding the Identity, Culture, and Motivation of 18-25 year-olds

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

will provide additional marketing enhancement. Finally, implementation of the strategies

identified will lead to success for Exotic Smokes Cigarettes Company.

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

foremost it is important to know how each of the respective subcultures identifies

themselves, buying power, consumer profile and their respective geographic

Marketing Research 18

concentrations. This will provide a snap shot of each market. Since the product

(flavored cigarettes) is controversial at best in all of the mentioned subcultures the

marketing approach and or strategies suited to best push the product is as follows:

 Boost Consumer Confidence - create a marketing campaign that

emphasizes the quality and value of flavored cigarettes.

 Generate Awareness – Create a campaign to promote flavored

cigarettes in as many ways as possible. In essence this marketing

strategy will create an extensive buzz by covering local airwaves, print

space, and other advertising mediums with the Exotic Smokes logo.

 Influence Emotions - Buying decisions are emotional for most

consumers. Create a campaign that makes consumers feel good about

themselves, Exotic Smokes, and their overall decision to buy flavored

cigarettes.

 Counter Opposition – Create and promote a marketing strategy that

accentuates taste, flavor, testimonials, endorsements, and any other

positive fortifications that will make the buying decision easier for

existing customers, and also attract new customers.

 Set a Deadline - People respond to deadlines create marketing

strategies planned around the thought of limited supplies, provisional

price cuts, and or other methods that generate a sense of need.

Marketing Research 19

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

mindset as well as geographic, family or educational influences, according to Hunter

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

more Hispanic’s emigrate to America.

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

religion, political views, food, or language(s).

Cross Cultural Differences

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

Americans are and want to be viewed as heterogeneous rather than homogeneous,

Marketing Research 20

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

can no longer be thought of as a single race.

Hispanics as mentioned are a highly diverse population in the United States;

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.

Similarities in Hispanics can be grouped by regions:

 Northern Central America (Mexico to Nicaragua): Hispanics from these countries

are the most willing to embrace the American culture.

 Southern Central America (Costa Rica and Panama): Hispanics from these

countries have a stronger Spaniard influence than their neighbors from Northern

Central America.

 Northern South America (Colombia, Venezuela, Perú, Ecuador and Bolivia).

 Southern South America (Chile, Argentina, Uruguay, Paraguay, Brazil).

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

significant presence in music, sports and politics as well. As Hispanics continue to

emigrate to the U.S., their goals as a subculture is to gain acceptance, respect and for

Americans to recognize their culture, individuality and contributions.

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.
Marketing Research 21

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.

Asians that immigrate to America do so to pursue a better life therefore they

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

aggressively as Hispanics or other minorities.

Marketing Selection Strategies

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

and authentic. It is recommended that there be a mixture of advertisements associated

with a successful African American as well as the upper class and middle class of the

everyday African American.

Since Hispanics rely heavily on tradition and family and because a sense of

belonging is important, advertisements must convey an image of family tradition and

success. The advertisement of the product will need to be in publications of national

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

Asians have a lower profile in American culture therefore their marketing

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

that comprise the Asian population in the U.S.

Positioning Research of Candy Flavored Cigarettes

TRIAAD Research Group's goal is to position properly Exotic Smokes Flavored

Cigarettes to the 18-25 year-old target market in Italy and Denmark. To position the

brand, it is imperative to analyze current competitor positioning strategies,

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
Marketing Research 23

suggesting certain brands offer a healthier option, as well appealing to female concerns

about weight gain (Journal of Nicotine and Tobacco Research, 2010).

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

ethnic, age, and culture demographics by advertising within focused magazines

(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

Facebook, Twitter, and other Internet related communication (American Heart

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

consumers. Flirtatious, teasing, playful, engaging, and enticing is the embodiment of

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

conveniently sold through vending machines at frequently visited teen locations.

Research presented to parliament suggests that 17% of 11- to 15-year-olds who smoke
Marketing Research 24

regularly buy cigarettes from vending machines (Journal of Nicotine and Tobacco

Research, 2010). TRIAAD will spotlight candy flavored cigarettes in several

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

men, an ad featuring Exotic Smokes candy flavored cigarettes will remind

her that she wants to taste sweet as strawberries!

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

belief is that everyone wants to be attractive, everyone wants to be desirable, and

everyone wants to kiss.

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,

or inexpensive. Next would be distributing the product to customers and establishing

how those customers will obtain Exotic Smokes candy flavored cigarettes. One
Marketing Research 25

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

message. TRIAAD's product positioning is the company's primary competitive strategy

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

(American Journal of Public Health, 2010).

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
Marketing Research 26

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

bundle pricing by offering a $1 off on DVDs or CDs when a customer purchases a

package of cigarettes (Marketing Teacher, 2010).

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”

reporting. TBL or 3BL indicates an increased importance of perception, in scrupulous

marketing angle(s), represented by a company.

Exotic Smokes Flavored Cigarettes must recognize these market expectations

and reposition themselves in the global and or international community. As an

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

underage smoking. Exotic Smokes needs be seen as a responsible, manufacturer and

marketer of consumer products, intended for adults. Not to be seen as one of several
Marketing Research 27

tobacco companies using slogans to promote hidden agenda’s or their own self-interest

to vigorously compete in the Flavored Tobacco industry. Unethically misleading and or

indoctrinating the public or more specifically underage smokers will prove to be

disastrous.

Tobacco companies are under fire for their ethics or lack thereof for blurring the

relationship between marketer and customer. Exotic Smokes in order to differentiate

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

concepts of Consumerism, Social responsibility and ethics in Marketing.

CSR is viewed as a complete set of policies, practices and programs incorporated

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

to: business ethics, community investment, environment, governances, human rights,

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

make a profit and reward their shareholders satisfactorily.

For Exotic Smokes, optimization of profits is the focus rather than the maximization of

profits, therefore, transitioning from accountability to share holders to social

responsibility to customers and other stakeholders. The benefits of being socially

responsible are:
Marketing Research 28

 Enhanced company and brand image

 Increased market share

 Easier to attract investors

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

maintaining an effective pricing strategy by establishing and keeping prices at

competitive, yet inexpensive levels will enable ESCC to retain customers, and maintain

long-term growth.
Marketing Research 29

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