Marlboro Business Proposal

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Business

Contents

Introduction2

Brief Background2

Innovation2

Target Market3

Value Creation3

Recommendation to Senior Management3

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Introduction

Cigarette smoking is one of the most common forms of recreational drug. Research suggests that stress is one of the factors which leads to smoking. This is one of the factors which lures people into cigarette smoking, as they are stress-relievers. Cigarette smoking is a major cause of cancer deaths worldwide. Singapore is a country dealing with high stress levels. The idea here is to reduce the harmful effects and also provide variety of flavors clubbed with a few innovations. Hence, launching these reformed cigarettes in the Singapore market would be profitable for the business.

Brief Background

SEATC states in their report dated 30/1/2010, that there has been a rise in cigarette consumption in Singapore. Each day in 2009, 6.7 million were lit up, making for 2.44 billion cigarettes sold through the year.  It is a 12 per cent rise over 2008's figure of 2.17 billion and the figure of 2.09 billion in 2005. Marlboro has a market share of 50% in Singapore. Our closest competitor Dunhill (BAT) is placed at 30%. Other competitors are from Japan Tobacco International which has 20% market share. This puts us in a driver’s seat and our new concept of Marlboro Switch will be well accepted in Singapore market.

Innovation

The new ‘Marlboro Switch’ contains less Tar and Nicotine, compared to other competitors. This shall drastically reduce the odor and smoke emitted. It is available in three distinct flavors. The reason for it being called ‘switch’ is that the flavor of the cigarette switches to Clove, Cinnamon or Ice Blast when the capsule in filter is pressed by the smoker (The filter contains a small liquid-filled flavor capsule. When the capsule is pressed, the flavor is...
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