Dark Marketing in Nepalese tobacco industry

PRESENTED BY:
SAMBRIDDHI GHIMIRE
AMIT PATHAK
PRATISTHA PANERU
 FLOW OF THE PRESENTATION
INTRODUCTION

: TOBACCO INDUSTRY

: DARK MARKET AND DARK MARKETING

: OBJECTIVES AND SIGNIFCANCE

ANALYSIS OF THE PROBLEM

: EXPERT OPINION

: WHAT AND HOW OF DARK MARKETS AND WHY DARK MARKETING?

SOLUTION TO THE PROBLEM

: AN IDEAL MODEL OF DARK MARKETING FOR NEPAL

: RECOMMENDATIONS
INTRODUCTION
TOBACCO INDUSTRY
DARK MARKET AND DARK MARKETING
OBJECTIVES AND SIGNIFICANCE
 Surya Classic
Surya Luxury Kings
Surya Lights
EXISTING BRANDS Shikhar
Shikhar Lights
Khukuri Filter
Bijuli and
Chautari
WINNER
GOLD FLAKES
MARLBORO
GORKHA FILTER
DEURALI

MARKET LEADER ON THE BASIS OF SHARE: SURYA NEPAL

 Key facts
Government introduced the Tobacco Product Control
andRegulatory Bill in 2007

The Bill requires cigarette and tobacco companies to cover 75 per

cent of the packet or box and print a public health message in Nepali
on the back accompanied by a color image of the effects of tobacco
consumption
Advertisement of products and sponsorship of programs in the media
by tobacco companies have been prohibited
Worth of Nepalese Tobacco Market in Millions: A growing market
 WHAT ARE Dark Markets?
Markets which have are obligated to follow some
restrictions in their marketing activities by the State or
some authoritative body

WHY DO DARK MARKETS EXIST?

 Dark marketing is at its core simply a form
DARK MARKETING of advertising in which the brand is not
directly linked to the campaign

Light Slight Strictly No

dark dark
marketin marketin Dark ads
g g

Quite
dark
Night
dark
Semi Surrogate
Ads
marketin
g
marketin
g
Dark
 OBJECTIVES AND SIGNIFICANCE
To isolate the marketing hurdles in Tobacco Industry

To recognize the impact of dark market in Nepalese

Market.

To identify the control of dark marketing in Nepalese

market.

Pros and cons of Dark marketing.

Brand communication.
ANALYSIS OF THE PROBLEM
Expert Opinion
Problems faced by players
Changes in dark markets
Why Dark marketing? (Pros and Cons for Nepal )
SUMMA Of PROBLEMS FACED BY THE PLAYERS
RY

Product Place
4 Ps
Price Promotion
SUMMA Of PROBLEMS FACED BY THE PLAYERS
RY

Product Place
4 Ps
Price Promotion
SUMMA Of PROBLEMS FACED BY THE PLAYERS
RY

Product Place
4 Ps
Price Promotion
 CHANGES IN DARK MARKETS

BIG BRANDS GET BIGGER

Exposure and consideration levels decline

Consumers are more likely to choose the brand they are most
familiar with

The impact is greater on smaller brands than it is on large

brands

Large brands have already established an impact on their

consumers minds.
 CHANGES IN DARK MARKETS

PRICE MATTERS MORE

Unless if the market is not monopoly.

When consumers are less able to make a choice based on brand affinity
they are more likely to make decisions based on price

Contraband and value brands both increase their share of market where
legislation limits traditional forms of advertising

High brand loyalty of consumers in terms of tobacco products.

Low brand switching.

 CHANGES IN DARK MARKETS

Existing brand perceptions are set

When ATL is banned the image a brand has, be that positive or

negative, is the one it gets saddled with

It is much harder to change these perceptions once restrictions are

introduced
USP and Product differentiation fails to communicate
 CHANGES IN DARK MARKETS

New products are harder to launch

Without ATL to help introduce products to large numbers of

consumers quickly, the commercial case for launching new liquor
brands is harder to make

New brands are less likely to succeed

Established brands will continue to drive and potentially increase

their innovation pipeline as a way of maintaining a dialogue with
consumers

USP and product differentiation factors are not able to not

communicated to the consumers.
 Expert opinion
Baibhav Sharma: GB
No effective Model of marketing in
Nepal
WOM is the important factor in
dark marketing
Semi Dark marketing are being
violeted in Nepalese market.
e.g. : Surrogate Ads
New target market are tough to
reach.
Bidur Adhikari
Product Led
USP is the key to support the
Product Led.
Product linkage with the icon
If you are a big player, it is easier
to sustain in the market with dark
marketing.
SOLUTION TO THE PROBLEM
AN IDEAL MODEL OF DARK MARKETING FOR NEPAL
RECOMMENDATIONS
CONCLUSION
Find a Surrogate: New Product Development/ Trademark Diversification

Tobacco brands cannot

advertise on TV, but the law
does not stipulate that
these same brands cannot
sell other products using
the same name

To maintain awareness,
tobacco brands can turn to
advertising other product
instead. While the product
is different and has limited
distribution, the tone and
imagery is all on brand so
brand salience is
maintained
BTL and On the Point Promotions

Niche based

Product Placement:
Online and Visual

Sensory Branding

Word of Mouth

On Trade Activities
Play the Name Game

In 1990, Surya Tobacco sponsored the televising of

the World Cup at a cost of NRs 1.3 million

In 1992, it paid over NRs 2 million to sponsor the

Barcelona Olympic Games on NTV

The drive for respectability even led the company to

team up with 24-hour Television, and the Netra Jyoti
Sangh to provide eye camps "which treated 4000
patients and performed 1400 operations for cataract
Sell What they can Touch and See: Packs and Icons

In a dark market, increasing the

frequency of core pack redesigns
is an effective way to keep
consumers engaged in the brand

Selling the experience

Classical conditioning
AN IDEAL MODEL OF DARK MARKETING FOR NEPAL

SURYA CAMEL

Emotional Increase
Attachment visibility

Increase Unique
Frequency positioning

Enter New
Build Loyalty
markets
 A website of sharing Surya
experiences

Incentives for use: Offers

Work on packaging and logo: Create

an experience
 Closed Events

New Product Development/ Trade Diversification

Visibility On the Point of Sale and Other means

C
Opportunity to increase creativity and Consumer Interaction
O
N
C Effective Communication since customer interaction is closer
L
U
Nepalese dark markets need to explore their options as the dark marketing field
S is still not mature
I
O
Dark marketing is a boon as well as curse for new players in the industry
N
Doing business without advertising is like
winking at a girl in the dark. You know what you
are doing, but nobody else does

Doing business without advertising is

like winking at a girl in the dark. You
know what you are doing, if you know
the tricks of dark marketing, you can
still get the girl!
 thanks!
Any questions?