Mighty Corporation is the Philippines’ oldest cigarette maker owned by the Wong Chu King family. It was established as La Campana Fabrica de Tabacos, Inc. in 1945 and renamed as Mighty Corporation in 1985. It’s quite challenging for the Wong Chu Kings’ to overcome challenges because tobacco business is one of the most regulated industry in terms of manufacturing, marketing and selling the product.
A large demographic of smokers are emerging not just in Asia, but also from across the globe. In line with the study, putting investment into tobacco business could be profitable as early as layered down to the consumers through an effective marketing strategy. But there are still challenges you have to eye on before taking the leap.
1. Innovation in cigarettes.
This includes non-combustible nicotine delivery formats or the growing users of electronic cigarettes. Many organizations, groups, and users are switching to the new way of smoking which they consider as “reduced-risk” compared to traditional smoking of cigarettes.
2. Lack of available companies to acquire.
An acquisition is very important for tobacco business as it creates synergy and organic growth for tobacco companies to keep the industry in place.
Stay in the loop of what is trending. Even tobacco industry must be updated with the market. Look forward to “reduced-risk”, non-combustible cigarettes alternatives, such as traditional smokeless tobacco. This will point your business’s direction of cigarette alternatives for new product growth and development.
Always look forward to expanding into areas such as food, lifestyle products. Mighty Corp has opened the line for sports- Might Sports Apparel & Accessories. This will help the brand to maintain its position in the market while improving business life cycle, market opportunities, customer needs and loyalty.
These 2 factors in tobacco industry also apply to any type, size and years of business. For every product or service development, there is also the progress for business. Visual the future through your consumers’ vision and create a plan for it.
This was first published at Caesar Wongchuking’s blog.