A Study On Developing Precision Marketing Strategy For CD Tobacco Company

CD Tobacco Company is the only tobacco sales enterprise in the city of CD andoperates the entire region’s tobacco sales and distribution business. The company sold517thousand cartons of cigarette and made a profit of5.3billion RMB yuan in2011.It remained number one for four years among the tobacco companies in major cities.Its sales volume account for21percent of the province’ total sales.The tobacco industry is of special significance to the Chinese economy; it hascontributed greatly to the nation’s economic development. In order to comply with thestate’s policy and make the marketing practice more scientific, this study proposessome ideas for using precision marketing to help tobacco firms improve sales revenuein the current environment and to help firms identify new development opportunities.This study starts with a review of domestic and international studies andapplication cases on precision marketing system. Borrowing insights from thisliterature, this study analyzed the current management practices of the CD TobaccoCompany and identified major problems in its current marketing management systemfrom both macro and micro perspectives. A corresponding marketing strategy is thenproposed.Second, a SWOT analysis is performed to study the CD Tobacco Company’sstrategic environment so as to identify its strengths, weaknesses, opportunities, andthreats. Based on this analysis, this study highlights the importance of precisionmarketing system and suggests ways to implement such strategies.Third, through integrating the STP analysis and precision marketing theories, thisstudy proposes precision marketing steps for CD Tobacco Company to achieve highersales volume and profit growth at relatively low marketing costs. These steps includean integration and analysis of market research data, a detailed segmentation of marketand consumer needs, and a formulation of consumer-oriented precision marketingstrategies targeting different consumer groups.Finally, this study summarizes and evaluates the research results, and points outnew issues and directions for future precision marketing research and practice.