factory for producing Premier Classic so the fixed costs are not very high.Variable CostVariable cost is high in case of Premier Classic, as the whole material used in manufacturing Premier Classic is imported, that includes tobacco from USA, Paper from France, and Filter from Austria.External FactorsMarket and DemandLakson Tobacco Company set the price of Premier Classic by looking towards the existing market and demand of the products in the market. The demand is to have a high quality cigarette with medium price. Other competitor brands, Capstan is a medium price and medium quality cigarette. So, looking towards the economic conditions of the country, a demand for a cigarette of medium price and high quality was present.The pricing of Premier Classic is done as HMLHPremiumHigh ValueSimple ValueMOver chargingMedium ValueGood ValueLOffFalse EconomyEconomyMonopolistic CompetitionPremier Classic is launched, as there is a monopolistic competition as it is a large segment of cigarette market, which is only catered by Gold Leaf. Premier Classic has shown high quality, high and attractive features and styles to have an edge in competition. With an attractive packaging it has been able to create a high image and value in customers minds.Consumers Perception about Price and ValueLakson Tobacco Company has decided a right price for Premier Classic as after buying it the consumers get something of value that is good quality cigarette with medium and economical price. The consumers perceive that the price is less than the product's value, because its price is much less than the competitor's brand Gold Leaf.PROMOTIONA.Identifying the Target AudienceThe company has started with a clear target audience in mind. They have targeted the people above 18 years and having an income of Rs. 10,000/- and above.Male Population 51%66.3 millionAbove 18 years59%of total male populationTarget AudienceAbove 18 years of age Male adults of PakistanB.Communication ...
