NOTF FOR THF TOBACCO STRATFGY RFVIVW TFAM
MARKRTING CONFFRFNCF (NOV'FMBFR 1991)
Introduction
This note summarises the views ofthe BATCo
participants in the BAT Marketing
Conference held in Orlando, USA in November 1991.
2. Ile BATCo pailicipants generally indicated that
the conference had been useful at a
professional level as well as providing a valuable
opportunity for the informal exchange
of information and experience. This is reflected
in the view that a further such
conference should be held in 1993 or 1994, where
the focus might be on strategic issues
such as the development of global brands.
3. Inevitably, the perceived usefulness
ofparticular sessions differed between
individuals,
depending on their direct marketing experience.
T"he topics which created the most
interest amongst delegates were those on Brand
Goodwill and the Cost Effectiveness of
Promotion.
Cost lFffectiveness of Promotion
4. The approach adopted by Imperial Tobacco to
brand promotion strategies in a restrictive
environment was in general considered to be both
professional and highly relevant-
Particular interest in this subject was centred on
the matching ofbrand target markets to
sponsorships, and the links between perceived and
physical quality. There were,
however, concerns that the session focused too
narrowly on the application oftechniques
in North America.
5. It was suggested that consideration should be
given to the most appropriate way in which
more professional marketing techniques can be
introduced throughout the Group, for
example, through issuing guidelines on
standardised research methodologies.
Rrand Goodwill
VWL
6. This session was viewed as being the most
valuable of the conference, with a technique
for valuing brands being seen as an evaluation
tool which could bring important benefits
to BAT, including a greater emphasis on long-term
strategic marketing management,
better brand portfolio management and closer
relationships between Finance and
Marketing.
7. It was considered that a potentially important
extension ofthe technique would be its
application to selected competitor brands in order
to provide a comparative performance
m
easure for the development of BAT's own key
brands.
.
8. ~kn area where it was suggested that more
research is needed is on the impact of quality
on brand goodwill.
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Tllstrihutor/Trade Relationtlitps
9. It was generally considered that this session
would have been more useful if it had
focused on the relative merits/drawbacks
associated with alternative distribution
strategies, rather than on the presentation of
research results and other data.
Vxclse Structures
10. This session was highly praised as a novel
approach to a key component to turnover and
profit. The issue was considered to be an
underrated key aspect ofthe business and one
where BAT needs to adopt a mom proactive position.
CoMetitor Analysis
11. 7ne importance of competitor analysis was
widely recognised by delegates, and it was
considered that BAT should be prepared to commit
resources to improving the Group's
understanding ofboth competitor strategies and
structures and how key competitors view
BAT.
12. It was suggested that consideration should be
given to introducing a standard competitor
analysis format for all operating companies.
Tobacco lRusiness Cases
13. The three case studies were viewed as being
useful vehicles for analysis and discussion.
Other Comments
1.4. Other significant suggestions made by the
BATCo delegates included:-
i. Ile opportunities for greater Group
coordination ofmarketing operations
particularly when seeking to take full advantage
of new markets, should t~
reviewed.
ii. BAT should adopt an aggressive approach with
regard to recruitment and training
in order to raise the overall standard ofthe
Group's marketing managers.
iii. Future such conferences should put less
emphasis on identifying and describing
issues and more on reviewing possible solutions.
Oryanisation
15. In general, delegates commented favourably on
the organisational arrangements ofthe
conference and its overall duration. There was,
however, widespread disappointment
that the opportunity for general discussion was
limited. both in the individual s
and in the final wrap-up session.
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Follow-up Actlon
16. Recommendations for follow-up action
included:-
Key conclusions should be communicated to all
General Managers and Marketing
Directors in the Group's tobacco companies.
ii. The Brand Goodwill approach should be further
developed and the Brand
Valuation model introduced.
iii. 'nere should be a coordinated Group approach
to Competitor Analysis.
iv. Ilere should be a complementary conference on
Sales and Distribution.
GJB/btm
22 nd May 1992
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"BAT Industries document for Province of British
Columbia 26 October 1999