Marketing and Brand Positioning of BAT; Lucky Strike

Generally to say, we are living now in the diverse interest society due to the globalization. That means, people have variety aspects of their own needs, wants depending on their consumer culture, or economic status. Companies are supposed to take strategic marketing more active than before. One of the competitive industry in the world is Tobacco manufactures. Since the more and more people are trying to quit smoking habit, they are literally taking other pies in the existing market. This time, I would like to discuss about the brand positioning of “Lucky Strike” by British American Tobacco Plc (BAT).

 

Three Ws: Who/ What/ Why

According to Kellogg on Branding P. 25 , about brand positioning, we have to begin with those three premises,

1)      Who should be targeted for brand use?

2)      What goal does the brand allow the target to achieve?

3)      Why should the brand be chosen over other brands that achieve the same goal?

Also quoting the concepts from P. Kotler, one of the authorities of Marketing, we can think about STP (Segmentation, Targeting, Positioning).

 

The case of BAT as the core-brand, “Lucky Strike” is one of its sub-brand product. BAT also holds other famous brand products such as “Kent” “Kool”. In order to prevent Brand cannibalism (to taking marketing shares under the products from the same company), BAT differentiates “Lucky Strike” from other brands.

 

Here is my insight of its brand strategies.

1)      Who---the people who like to smoke legally

2)      What---Lucky Strike allows people to enjoy its classic taste of cigarettes, and also it reminds them of the old days of America.

3)      Why---people who want to experience the classic and old taste of experiences can feel like that when they smoke Lucky Strike

Then I cast the STP

Segment---basically Demographic and Psychographic segment with age, area, and interests

Targeting---the main target of this product is the people who want to experience the classic

tastes.

Positioning---Within the target market, there are other brands that is targeting the same segment such as Marlboro by Phillip Morris.

 

“Lucky Strike” VS “Marlboro”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

So, how are they different in the same target segment?

As it is mentioned above, they are trying to deliver the old taste of tobacco.

However, Lucky Strike does not have other brands with it. On the other hand, Marlboro has its sub-brands such as Marlboro Light, Marlboro Black Menthol.

Probably PM (Phillip Morris) tries to take its famous name advantage to their product diversity.

BAT does consistent on Lucky Strike for the image of old and historical experiences.

 

What is the Results of Those Differences?

“Lucky Strike” reminds people of old experiences of the United States. What the interesting is that in Japan, the market share of Marlboro is much higher than Lucky Strike. Why? The answer might be that most Japanese do not have any interests in the classical days of the America. This is the gap of demographic segmentation in the global market.

But still, BAT is doing a good business in Japan with other brands, Kool and Kent. If you go to the club house in Japan, you can see many people having Kool, because we have the image of “COOL, YOUNGSTER”

I would like to observe more on tobacco industry after this assignment.

 http://www.bat.com/servlet/SPMerge?mainurl=%2Fgroup%2Fsites%2FUK%5F%5F3MNFEN%2Ensf%2FvwPagesWebLive%2FDO89KHEK%3Fopendocument%26amp%3BSKN%3D1

 

Brand Statement

If I expand the products, I would put the statement which sounds like “the most valuable product for the most valuable people”

Think about the tobacco, BAT claims they provide values for people who like to smoke and to experience. I do not interesting in creating and increasing the gross numbers of market, but in increasing the gross satisfactions of existing customers, and strengthen the brand loyalty. This is new trends in the marketing, which is called “Customer Relationship Marketing”