Tobacco And Cigars At Very Low Prices From Duty Free Shops

By Author: Lawson Hog
Total Articles: 6
Comment this article

Everyone wants to buy things at reduced prices. There is hardly anyone who would be content with buying something at an elevated price. There are many kinds of special sales offers that are extended towards customers by these businesses. They are always looking to attract as many customers as possible. But for them, it is not always easy to draw many people. Their tactics of luring potential consumers often don’t pay off with the traditional promotional methods, which include offering ‘buy one get one free’, ‘x% discount’ etc. forms of marketing. The way goods and services are presented, i.e. packaging or presentation are also very important to draw more people. It must be remembered that every product has a certain target audience or target group. The sole objective of the sales and marketing departments of the companies is to maximize the reach into the target audience.

A lot of research work goes into this. Different media vehicles are chosen on the basis of past data on observations of the media consumption patterns in different media vehicles. In other words, research may show that a certain product is ...
... more likely to be viewed through television than newspaper advertisements, by the concerned target group, or even a certain section of the target group. Not the whole target group is always assigned the same media vehicles. This will obviously depend on the constitution, psychographics, demographics etc. of the target audience.

Through such research, it has been found that the concept of tax free tobacco really sells well. People are attracted to these products. The sole idea behind these products is to extend high quality service and value, or in other words, offerings, to the target group at a reduced price, but not exactly at the expense of making profits. People who are thinking loosely may overlook the deeper plot here. Some may be tempted to think that the company is going to lose out on profits because of such tax free tobacco shops or sales offers. But in reality, this helps improve long term and perhaps even short-term profits. The company uses certain of its sales or production units as profit centers. These are supposed to generate the maximum profits and revenues directly. Others are used for intermediary, support and other kinds of purposes.

The duty free store, one from where people can buy their favorite branded products at much cheaper rates, may be seen as one of those elements in the company, which does not necessarily act as a profit center. Its role may even be more important – to increase the base of the target group, for instance. The lesser the price, the more is the probability of increased vertical penetration in the target consumers of the particular product. Thus, contrary to popular beliefs, a Free Tax Store is not at all goodwill or image building exercise at all, although these too play a part and the company will certainly lap up any extra goodwill it can generate. People will then get all kinds of top quality branded product categories like luxury cigars, beverages, perfumes etc. from the tax free Cigars store, liquor shop etc.