Environmental Analysis Essay Example for Free

Environmental Analysis EssayAs a way of promoting Skoal, the association utilizes print advertisements in magazines whose readers are 85% adults. Aside from this, the telephoner also uses person-to-person events as a way to let the clients know more somewhat Skoal and try out its products. Skoals promotions includes reach-out advertising, and it includes a very, very successful direct mail program that we have been running to adult smokers.In 2006, the company mailed to virtually 2.5 million adult smokers with a series of coupons and product information about Skoal and its products and have been very, very successful in converting about 5% of the people that we mailed to, to actual current usage of moist smokeless tobacco products. (UST 2006 psychoanalyst and Investor Conference) In addition, the company also has its own company website (http//www. ustinc. com/) and product website (http//www. skoalbrotherhood. com) that batch be used as a tool for customers to access inf ormation about the product and the company 24/7.The products unique selling point is that it is the only smokeless tobacco that offers several flavors, cuts and pouches. In its advertisements, Skoal sports the tagline A pinch better. Skoal wanted to position to itself in its main hind end markets mind as the preferred way to experience tobacco satisfaction a vision that positions the company not as a smokeless tobacco company, however as a tobacco company whose consumer universe is all tobacco consumers. (UST 2006 Analyst and Investor Conference) PricingThe company utilizes the prestige price strategy and this is congruent with the image the brand is trying to project. Since Skoal is the only smokeless tobacco that offers a diversity of flavors, cuts and pouches, it is only right for them to charge a price premium to maximize their profits. Over its course of business, Skoal has undergone by several price changes. However, for the entire year of 2006, the company has not yet r aised it prices. Murray Kessler, manager of Skoal tell Prices per can depends on how often we spend on the promotional front and it depends on what we do with the competitors. (UST 2006 Analyst and Investor Conference) So far though, the company does not see the need to raise prices. Comparing Skoal to other brands, it charges much higher prices as compared to competitors like Couper, Cougar, Gold River, and Grizzly but there are a a couple of(prenominal) brands like Hawken and Kodiac whose prices are higher than Skoal. Sister brand Copenhagen charges the same price as Skoal. Distribution Skoal products can be purchased in several websites online and also several retailers.The company uses extensive distribution channels and which became an moulding for Skoal. USTs long-established brands distributes through tens of thousands of small retail outlets, and the unwillingness of major tobacco companies to enter this market (due to the sad image and social unacceptability of the pro duct) have made USTs market position unassailable. (Industry Analysis 7) The company does not operate any retailing stores but instead relies on third party retailers to achieve their products to their target markets.So far, Skoal products can be found in the United States and some parts of Canada but the management is eyeing Eastern Europe as an opportunity to expand Skoal internationally. Conclusion Skoal has been successful in implementing its strategy. Currently, Skoal belongs to the top out of mind awareness of its target market when it comes to smokeless tobacco with it capturing 78% of the market together with its sister brands. In order to maintain this position, further significant investments in advertisements, branding, and promotions must be undertaken.