Marketing Strategy of Pakistan Tobacco Company after the implementation of International Marketing Standards

Abstract

Pakistan Tobacco Company Limited is part of British American Tobacco, the world's most international tobacco group, with brands sold in 180 markets around the world. PTC produces high quality tobacco products to meet the diverse preferences of millions of consumers, and works in all areas of the business - ‘from seed to smoke’. PTC operations in Pakistan began in 1947, making them one of Pakistan's first foreign investments. PTC is committed to providing consumers with pleasure through excellent products, and to demonstrating that it meets the commercial goals in ways that are consistent with reasonable societal expectations of a responsible tobacco group in the 21st century. The marketing standards worldwide in the tobacco industry have changed and the tobacco industry today is operating in an environment which can be called as a marketer’s nightmare. It is governed by the International Marketing standards, or the “New world of marketing”, where virtually all above the line marketing, advertising, promotions and mass media stuff is prohibited by law in almost all the countries in the world. PTC being a responsible company and as a part of a global initiative was the first to embrace the IMS and is actively pursuing the government and all the other stakeholders to move forward and implement the International Marketing standards in its full letter and intent. While this has helped PTC to be recognized as a socially responsible company, on the other hand it has handcuffed almost all of its marketing efforts because now it is only restricted to below the line and a very targeted and a focused marketing strategy. This thesis would encompass in detail the new face of marketing in Pakistan Tobacco Company in the new world of marketing as they call it, and would seek to find out the strategies and the actions that the company is working with to effectively and efficiently market its product to its consumers in the face of intense competition and heavy regulations. It would also discuss the current distribution and marketing structure of PTC with respect to trade marketing and how PTC is trying to reorganize in a market which is both competitive and challenging.