Tobacco company: final report

Abstract

The marketing plan for new product development is presented in report. The Armenian Tobacco Company faces now problems connected to new situation in country, destruction of economic links with republics of former Soviet Union, blockade of Armenia, lack of electricity and raw materials. On the other hand, there are new opportunities in the free market and Company should develop its strategy for forthcoming years. One of such opportunities gives the proposition of the AmerTobacco company (Finland) to ArmTobacco to produce some of its brands in Armenia. Concerning this proposition AmerTobacco company wants to establish possibility of producing in Armenia new type of cigarettes. One of the problems is, that cigarettes proposed for production are manufactured from so-called American Blend sort Tobacco, and the ArmTobacco Company had no experience in production of such type of cigarettes. All the cigarettes in Armenia (and also in former Soviet Union) were produced from Oriental Blend Tobacco, which has more strong taste and smell. Connected to the proposals of AmerTobacco, group investigated the situation in tobacco industry and current situation in ArmTobacco Company. The capacity and capability of factory were investigated and it was found, that ArmTobacco Company has possibility to produce American Blend cigarettes.