New Tobacco Group, Marketing Case

In the world, there're some one billion cigarette smokers, who consume fifteen billions cigarettes everyday. In China, there are some 350 million cigarette smokers who consume 31 percent of the global cigarette market sales annually. Since China became a full WTO member, some transnational tobacco giants, such as Philip Morris, British American Tobacco, Japan Tobacco and Imperial Tobacco, have shifted their attention onto markets in China in face of a shrinking international market. How to rapidly redress the situation of decentralization, disorder and low efficiency faced by the tobacco industry of China will be of vital significance to the fate of the tobacco industry of China. According to the strategic reform plan of the STMA, Provincial Tobacco Companies have completed the structural reform meant to separate its manufacturing sector from commercial sector, and tobacco manufactories have been merged to increase the competitiveness of the local tobacco industry. Therefore, Xinzheng Tobacco Factory, Anyang Tobacco Factory and Luoyang Tobacco Factory have been consolidated to form Xinzheng Tobacco Group.Xinzheng Tobacco Group has unified brands and concentrated on development of Jinmangguo, Hongqiqu and Luoyan, which are famous. Moreover, it has unified channel, and improved promotional tactics.In this paper, four defects of Xinzheng Tobacco Group are pointed: names of brands, strategy of ad, tactics of promotion and cyber-marketing. Furthermore, it is suggested that Xinzheng Tobacco Group extend the culture of brands, harmonize the ad with culture, attract customers' attention and build Web site.