Case Study

JTI-Macdonald Corp.: Dealing with the value segment of the Canadian tobacco industry

14 pages
August 2007
Reference: IMD-5-0714

In November 2004, the management of JTI-Macdonald Corp. (JTI-MC) in Canada was wondering how to cope with a major marketing challenge. The value segment had grown to represent 34% of the total factory-made cigarette volume from just over 3% in 2002 despite an overall declining market in volume. This represented an unprecedented situation in the history of the tobacco industry. Moreover, the value segment was growing at the expense of the lucrative premium segment that still represented the bulk of JTI-MC’s revenues. The JTI-Macdonald Corp marketing team needed to consider various options to counter-attack the competition.

Learning Objective

This case can be used to learn about marketing, price management, price wars and competitive analysis.

Keywords
Price War, Price Management, Competitive Analysis, Tobacco
Settings
Canada
Consumer Goods, Tobacco
2004
Type
Field Research
Copyright
© 2006
Available Languages
English
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