JT's New Marketing Strategy to Push Four Test-Market Cigarettes to Nationwide Sales
Less than one year old "Samurai" brands leap into battle for national ranking
Tokyo, April 11, 2005 --- Japan Tobacco Inc. (JT) (TSE: 2914) announced today that, on April 25, it would expand the sales area of four brands, which were launched in July 2004 within a limited sales area, to nationwide coverage. These brands include "Hope Super Lights," "Seven Stars Lights Box," "Caster Cool Vanilla Menthol Box," and "Peace Aroma Menthol Box". This is the first endeavor for JT to bring as many as four brands into the nationwide market at one time.
In its latest medium-term management plan, "JT PLAN-V," JT stated that the company would, as part of its top-line growth strategies, aggressively launch new products, with expedited R&D periods, in the domestic market. In addition, JT and Philip Morris International Inc. decided that they would not renew the "Marlboro" licensing agreement when the current agreement expires at the end of April this year, as JT refocuses on its own brands while having a leading edge over competitors. In accordance with this strategy, JT launched six new brands in January 2004, twelve new brands in July 2004 and six new brands in February 2005, within limited test-market sales areas specifically designated for each brand.
Portrayed as "Samurai" (Japanese feudal lords in medieval times), each new brand has close monitoring of performance and consumer reaction in each of the respective sales areas. This was done so that the company could promptly expand sales areas for individual brands if the products were considered to be successful. Among the twelve new products introduced in July 2004, these four products were thought most appropriate for nationwide sales expansion.
Japan Tobacco Inc. is the world's third largest international manufacturer of tobacco products. The company manufactures internationally recognized cigarette brands including Camel, Winston, Mild Seven and Salem. Since its privatization in 1985, JT has actively diversified its operations into pharmaceuticals and foods. The company's net sales were JPY 4.625 trillion in the fiscal year ended March 31, 2004.
