Australian Tobacco Industry Essay

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Global competitive advantage strategies of Australian Tobacco Manufacturers A company has a competitive advantage when it can produce a good or service at a lower price or in a more desirable fashion for customers (Competitive Advantage, 2007 Cannot use Investopedia as a credible source). Competitive advantages are attributed to a variety of factors, including cost structure, brand, quality of product offerings, distribution network, intellectual property and customer support. John Rolfe (1585–1622 Cannot use wikipedia as a credible source) famously known as the husband of Pocahontas, daughter of the chief of the Powhatan Confederacy, was one of the early English settlers of North America. He is credited with the first successful cultivation …show more content…

Windfield, a popular cigarette brand in Australia, utilized phrases such as “True Blue Aussie Original since 1972” just before the change to plain olive green packs (Freeman and Scollo, 2012). This did not only allow marketers to use word play against the new mandatory law, but also re –instilled the heritage of the brand. It also assured consumers they would still be receiving their original quality cigarettes that they have been receiving for many years. One of their greater marketing success stories was launching the “SLAB” packs. This allowed consumers to purchase cigarettes in bulk, which was consistent with their use of the word “SLAB” that was widely used in the Australian vernacular that resonated with buying beer in bulk (Henriksen, 2012). This meant the marketing team used a globally successful brand and adapted it to the local conditions that consumers could identify with, regardless of the colour of the packaging. Philip Morris decided to use their global knowledge and brand positioning to create products that would offer them an advantage over their competitors (Winstanley, 2012). They decided to offer product extensions via variants such as “Hybrid” which allowed the consumer various taste sensations (Freeman and Scollo, 2012). This strategy offered their customers a variety in the product, which overcame the need to have standardized

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