Case Study Of Universal Duagar And Cigarette Co.

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UNIVERSAL CIGAR & CIGARETTE CO. I. HISTORY AND BACKGROUND Mr. Alfredo Borromeo, the owner and President of Universal Cigar & Cigarette Co. was discussing with his Finance Executives, Production and Top Sales, in a Conference some when in April 1981 at Monday morning about his plans for launching a new brand of cigarettes, wherein he meets the Regional Manager for Asia of Dunhill cigarettes and as per Mr. Borromeo, they are willing to give them a license to manufacture and sell Dunhill locally. In addition to that, they will also provide the technical support in blending and quality control for them to achieve maximum distribution for the product, and take care of advertising and sales promotions. II. PROBLEMS Universal…show more content…
The price is not a big deal and nothing to be worried of. In fact, the price may help them, it’s not just the rich people who’ll be buying Dunhill, and every Tom, Dick, and Harry will be buying it and showing it off to his friends. * Option one: In order for the Company to bring the manufacturing cost to P6.00, they must have a selling price around P4.00 per pack. Second option: But the packaging alone may costs to P3.00 therefore, they need to retail it at around P8.00 per pack because not many people will be buying such an expensive cigarette. * If they launch the product, they should prepared to sell only in Metro Manila and Kay provincial cities like Baguio, Cebu, Bacolod and Davao. Only the Wealthy cigarette smokers will probably be able to afford the product. They should not expect any sales from other provincial areas. The Company might choose whether to launch the product in the red package first, or launch Dunhill menthol in the green package simultaneously. There seems to be a trend toward menthol smoking, but again this will seems to increase their

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