Death Marketing-1

BATB tricks! MNC low-tier (10 sticks) cig price Tk 35 or 27?

British American Tobacco Bangladesh (BATB) has advertised on mass media that the price for 10 cigarettes sticks from low segment is TK 27 not Tk 35. But to provide protection to the domestic tobacco companies, the low tier cigarette has been divided in to two tires - ‘local brand’ and ‘international brand’ in the proposed budget. The price for per 10 cigarette sticks of local brands have been increased to Tk 27 from Tk 23 and the price for international brand is set to Tk 35. Honorable Finance Minister, in his budget speech, has said that, “It is found after analyzing the market share of low tier cigarettes from various cigarette companies for last couple of years that the local companies are losing their market while multinational company is occupying the space which is a threat to the existence of local companies. If the downtrend continues, the local companies will lose their presence within next two years.” Besides, in his budget speech, the finance minister has also said that the initiative has been adopted to protect the local industry as it is experiencing an imbalanced competition with the international company which has a global reputation with the marketed low priced cigarettes. Be noted, there are no international tobacco companies, except BATB, which operates with low segment cigarettes in Bangladesh. Despite being an international company, the BATB is advertising its five low brands cigarette to be sold at Tk 27 instead of Tk 35 as like local brands. Based on the aforesaid ground, a question appears that which international tobacco company is grabbing the low segment cigarette market as per the remarks of Honorable Finance Minister, and by the same time, the minister proposed for Tk 35 for low segment of international brand but which one? The matters are not comprehensible at all. Such undesirable trick is unacceptable.

On the other side, there are no hike in tax for higher and premium segment cigarettes. Consequently, multinational tobacco company, BATB, will be the beneficiary which has 15 cigarette brands while 10 of them belong to higher and five (05) belong to lower price slabs.