Value Chain Positioning- cigarette makers to play their respective roles Fortunately the retail terminal.docVIP

 PAGE \* MERGEFORMAT 26 Value Chain Positioning: cigarette makers to play their respective roles Fortunately the retail terminal The world-famous brand marketing expert Larry * Light has said ‘has a market is more important than those with plants, control of the retail market has a real sense of the market’. In recent years, the Chinese cigarette market has undergone great changes, circulation system and retail terminals are engaged in a revolution in the retail end of corporate battle to control and dominate the market the most important positions. This is in accession to WTO protection period for the tobacco industry of our country of extraordinary significance. According to China’s accession to the WTO-related agreements, in 2004 China’s tariffs on tobacco products decreased to 25%, and abolish special tobacco monopoly retail license, to 2005, China will cancel all of the quotas, licenses and other non-tariff barriers, namely the implementation of zero tariff. A future in which high-grade imported cigarettes in terms of price and cost will gradually gain a competitive advantage, our cigarette products in the domestic cigarette market share of monopoly will face challenges, domestic and foreign cigarette brands will be launched in the circulation area of the cut and thrust of the market game. Especially the ‘Framework Convention on Tobacco Control’ of the implementation as well as ‘a new retail chain model of’ the rise of competition in circulation is mainly reflected in the retail end of the fight on the retail end of the battle is mainly reflected in the enterprise market control, such as the cigarette brand, effective distribution, brand promotional advantages and benefits services and so on. But China’s current industrial and commercial enterprises, cigarette, cigarette brand weak, small, scattered and poor the situation has not been fundamentally reversed, and the Outer smoke still contend bad strength; cigarette distribution network, especially on th