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Environmental Analysis Essay As a way of promoting Skoal, the company utilizes print advertisements in magazines whose readers are 85% adults. Aside from this, the company also uses one-on-one events as a way to let the clients know more about Skoal and try out its products. Skoal’s promotions includes reach-out advertising, and it includes a very, very successful direct mail program that we have been running to adult smokers. In 2006, the company mailed to about 2.5 million adult smokers with a series of coupons and product information about Skoal and its products and have been very, very successful in converting about 5% of the people that we mailed to, to actual ongoing usage of moist smokeless tobacco products. (UST 2006 Analyst and Investor Conference) In addition, the company also has its own company website (http://www. ustinc. com/) and product website (http://www. skoalbrotherhood. com) that can be used as a tool for customers to access information about the product and the company 24/7. The product’s unique selling point is that it is the only smokeless tobacco that offers several flavors, cuts and pouches. In its advertisements, Skoal sports the tagline â€Å"A pinch better. † Skoal wanted to position to itself in its main target market’s mind as â€Å"the preferred way to experience tobacco satisfaction† a vision that positions the company not as a smokeless tobacco company, but as a tobacco company whose consumer universe is all tobacco consumers. (UST 2006 Analyst and Investor Conference) Pricing The company utilizes the prestige pricing strategy and this is congruent with the image the brand is trying to project. Since Skoal is the only smokeless tobacco that offers a variety of flavors, cuts and pouches, it is only right for them to charge a price premium to maximize their profits. Over its course of business, Skoal has undergone through several price changes. However, for the entire year of 2006, the company has not yet raised it prices. Murray Kessler, manager of Skoal said â€Å"Prices per can depends on how much we spend on the promotional front and it depends on what we do with the competitors. † (UST 2006 Analyst and Investor Conference) So far though, the company does not see the need to raise prices. Comparing Skoal to other brands, it charges much higher prices as compared to competitors like Couper, Cougar, Gold River, and Grizzly but there are a few brands like Hawken and Kodiac whose prices are higher than Skoal. Sister brand Copenhagen charges the same price as Skoal. Distribution Skoal products can be purchased in several websites online and also several retailers. The company uses extensive distribution channels and which became an edge for Skoal. UST’s long-established brands distributes through tens of thousands of small retail outlets, and the unwillingness of major tobacco companies to enter this market (due to the poor image and social unacceptability of the product) have made UST’s market position unassailable. (Industry Analysis 7) The company does not operate any retailing stores but instead relies on third party retailers to get their products to their target markets. So far, Skoal products can be found in the United States and some parts of Canada but the management is eyeing Eastern Europe as an opportunity to expand Skoal internationally. Conclusion Skoal has been successful in implementing its strategy. Currently, Skoal belongs to the top of mind awareness of its target market when it comes to smokeless tobacco with it capturing 78% of the market together with its sister brands. In order to maintain this position, further significant investments in advertisements, branding, and promotions must be undertaken.