Derby Pack Upgrade: How an Execution of Packaging Upgrade can Rejuvenate a Low Segment Brand
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British American Tobacco (BAT) is the leading tobacco company in Bangladesh. The low segment is the biggest tobacco price segment in Bangladesh with BAT low brands occupying 65%+ of the segment (30.8 billion annual volume). Of the 3 brands that are operating in the low segment within the BATB portfolio, Derby is the largest and most popular brand. Price Increase during the year’s fiscal budget takes place every year and is a very common phenomenon. Last year, every brand in the low segment suffered a price increase from BDT 3 to BDT 4 per stick while the VFM segment took a shift from BDT 4 to BDT 6. However, the companies decided to hold the pricing at 5 which resulted in a large number of consumers shifting from low to VFM as an upgrade. Hence Low Segment brands of BAT started suffering a volume drop which made it important to create safety in case a price increase changes the scenario this year. Thus, to inject value into the most popular low segment brand, BATB designed a pack upgrade which was carried out to enhance the equity of the brand. As a Territory Officer of British American Tobacco Bangladesh posted in Madaripur, I was tasked to properly execute the Derby PUG Campaign in my territory and was expected to augment the campaign as per the requirements of my specific market. This report discusses the execution of Derby PUG campaign in Madaripur Territory and its impact on the overall industry segment, consumer behaviour, sales trend and brand performance.
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