Factors Affecting Sales Revenue in Cigarettes Marketing Companies - Research Proposal Example

The sale of tobacco products does not bear a resemblance to the free market where there are few or no regulations. According to ash (1), this is because of the many effects the products have on the consumers, society, the country, and the industry at large. It is argued that tobacco products are a source of some the increased social, economic, environmental, and health problems (Eade & William, 7). As a way of dealing with the negative effects of tobacco products, different stakeholders have had many interventions that in the end affect cigarette-marketing companies in terms of production and trade hence affecting sales revenue. The interventions come as a way of enforcing tobacco control strategy and when implemented they either lower or raise sales revenue for tobacco products marketing companies (Bump at al. 5). They come in form of increased tax rates on cigarettes, increased competition, local or federal regulations on advertisements and sales, economic restraints, and technology standards (Suttle, 1). Others like an increased tax on tobacco products work to raise revenue, correct externalities as well as regulate the use of tobacco products (Who, 55).

However, the intervention does not make the company less ambitious to increase sales revenue. It makes the company work harder to overcome all the handles in the most efficient way possible.

This has been made possible due to the different factors that BAT has had to put in place despite the many challenges it has had to pass. Among the factors are increased advertisements, maintaining the brand name, and abiding by set regulations to ensure they remain in the market. These together with some of the intervention factors mentioned above affects BAT’s sales revenue in the country either positively or negatively. There is therefore a great need for an investigation on how each identified factor affects BAT’s sales revenue as a cigarette marketing company.

Research Problem

BAT like any other cigarette marketing company has been faced with so many hurdles and yet it has managed to maintain high-income levels through increased sales. Among the huddles are the burning of billboards advertisements and the introduction of smoking regulations where it is only supposed to be done in the designated zone. The problems identified for this research are how cigarette-marketing companies like BAT still manage to remain at the top of their sales despite all hurdles. Another problem will be how different marketing strategies adopted by BAT affects the company’s sales revenue and its economic contribution to the country’s revenue. The above-mentioned local or federal factors affect BAT’s sales revenue; the paper will investigate whether there are any necessary improvements that need to be done to further increase sales revenue. Finally, the paper will seek to explain whether having a leading brand has any significant influence on the sales revenue of a cigarette marketing company.