IMD-1-0298 © 2010
Bris, Arturo
Swiss German Tobacco plans to introduce a brand new tobacco brand in the Czech Republic. The firm has been running in the country until 2007, into a dollarization of the market, and when a money crisis has taken the nation from a euro peg. The new brand will be to be tagged “Matrix”, competing with established Kent Nanotek, and as a glamor product targeted to a section that is sophisticated, produced by British American Tobacco.
Boils down to a valuation exercise, where the important inputs are: the estimated demand for the product, driven by the prospects for tobacco in the nation; population growth; and technical requirements in distribution and production. Participants are faced sequentially with these challenges. Learning objectives: This is a comprehensive exercise of a Tobacco firm that designs a brand new brand, acapital budgeting and investment choice case, which will be introduced in the industry. It is an excellent illustration of the Free Income technique, used here throughout a streak of seven challenges for investment evaluation.
Valuing A Tobacco Brand The Case of Matrix Case Study Solution
Subjects: Capital Budgeting; Brand Valuation; Tobacco Industry Settings: Europe; Tobacco; 2008-2012; Mid-size
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