Case 13.2: The Downfall of Uptown

Case 13.2: The Downfall of Uptown

Question 01:

What Consumer trends determined Reynolds' marketing strategy for Uptown cigarettes?

Answer:

Reynolds Tobacco Company used the basic marketing strategy which is to define target market and develop a marketing mix for it. They selected Blacks as the target market because, Blacks smoke in greater numbers than other population segments. Reynolds identified that, 34% of the Blacks smoke, compared to 28.8% of Whites and 29.1% of the total U.S. population. They also found that the number of U.S. smokers is dropping 2% every year whereas the number of black smokers is on the rise. So this trends determined Reynolds to make marketing strategy for Uptown cigarettes.

Question 02:

Do you think Reynolds' marketing strategy for Uptown was flawed in some way?

Answer:

No, I don't think Reynolds marketing strategy for Uptown had any flaw. The strategy and the target were right. But since the environment factors affect, they did not succeed.

Question 03:

What marketing environment factors influenced Reynolds decision to cancel the market test of Uptown?

Answer:

The marketing environment factors, which canceled the market test of Uptown was 'Society' factor. Shortly after Reynolds announced plans for the Philadelphia market test, the American Cancer Society there started making plans to block it. Finally, nearly 30 religious, health and black community groups joined the Coalition against Uptown and the Coalition succeeded to stop the market test.

Question 04:

Did Reynolds demonstrate social responsibility in this incident? Explain.

Answer:

Yes, Reynolds demonstrated social responsibility in this incident. When Reynolds announced plans for the Philadelphia market test, the American Cancer Society there started making plans to block it. Nearly 30 religious, health and black community groups joined the Coalition against Uptown. The protest was designed to say to Reynolds, 'we do not need another instrument of destruction to come in the African-American community'. Finally the Secretary of the U.S Health and Human Services - Louis W. Sullivan ask Reynolds to halt the campaign. So this way a social responsibility occurred here to downfall Uptown.