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  3. > Rothmans Gold & Silver: Leveraging latent equity through mainstream pricing

Introduction

In 2012, Rothmans introduced new low-cost variants to the UK market, revitalizing its quality and heritage reputation. Strong growth, albeit from a low base, was furthered by its entry into British American Tobacco’s (BAT’s) Global Drive Brands list in 2014.

Features and benefits

- Learn about the Rothmans brand and its heritage

- Understand how British American Tobacco is leveraged the brand's heritage to appeal to price-conscious consumers

- Analyze Rothmans tailored marketing and product strategy.

- Assess the success of Rothmans low-cost variants.

Highlights

- Tailored launches revitalized the brand’s presence in new and lapsed markets globally, expanding its share further.
Positioning Rothmans as a "contemporary value for money brand" appealed to smokers who had downtraded due to financial concerns. Maintaining a sophisticated positioning lifts the "feel good" factor that is a driver for many regular smokers. Meeting the varying needs of consumers in new markets ensured that the product was compelling to all.

- Bridging the gap between quality and pricing has proven crucial to Rothmans’ growth. A two-pronged approach of promoting brand history as a mark of quality to build sentiment, and maintaining an acceptable price point can see share growth, even in a declining market.

Your key questions answered

- What is Rothmans?

- Why were low-cost Rothmans variants launched?

- How does BAT tailor its product offering to satisfy differing consumer needs in different markets?

Table Of Contents

Rothmans Gold and Silver: Leveraging latent equity through mainstream pricing
OVERVIEW
Catalyst
Summary
BRAND INVESTMENT AND APPEALING PRICING ATTRACTS LAPSED CONSUMERS
A heritage brand with lapsed equity
Compelling price position attracted lapsed consumers
Enhancing brand investment has seen further expansion
Rothmans brand volume growth: Strong performance
ENTERING VALUE SEGMENT WITH RECOGNIZED BRAND TO TARGET MASS MARKET
Entered value segment while maintaining quality proposition
Mid and value-priced products are bought by the majority
Communicating brand reputation through pack updates
Elevate the "feel good" smoking occasion
TAILORING BRANDS TO ALIGN WITH GENUINE CONSUMER NEEDS
Different consumer considerations in different markets
The brand's global growth proves the efficacy of tailoring
Success not limited to Eastern Europe
CONCLUSIONS
Rothmans' success attributable to number of time-sensitive and extended factors
APPENDIX
Sources
Further Reading
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