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Marketing Analysis of RJR Nabisco

This research presents a marketing analysis of the RJR Nabisco Holdings Corp. RJR Nabisco is a major tobacco and processed foods company (Sullivan, 1991, p. 1585). The company is the surviving entity of the merger in 1985 of R. J. Reynolds Industries, and Nabisco Brands Inc. (Conway, 1985, p. 334).

R. J. Reynolds sales exceeded those of Nabisco by approximately threetoone, at the time of the merger (Moskowitz, Katz, and Levering, 1986, p. 881). Total sales of the two firms in the year of the merger approximated $16.6 billion (Conway, 1985, p. 334). In 1991, total company sales were $14.8 billion, a drop of 10.8 percent since the merger, and a drop of 12.9 percent since the high point in company sales was recorded in 1988 (Sullivan, 1991, p. 1585). All of the sales losses recorded by RJR Nabisco have been sustained by the tobacco unit, R. J. Reynolds Tobacco Company. In 1991, tobacco sales contributed 52 percent of total company sales, while food products contributed 48 percent.

Profit margins remain higher on tobacco operations than on food processing operations. RJR Nabisco's net profit in 1991 was $350 million, down 74.9 percent from the record $1.4 billion recorded in 1988 (Sullivan, 1991, p. 1585).

The findings of the market analysis are presented in three separate discussions. The first discussion compares RJR Nabisco's domestic marketing operations with the company's foreign marketing efforts. The second discussion provides a comparison between RJR Nabisco and its domestic competitors,

and the third discussion considers the company's strategic responses to changing global market conditions.

Domestic and Foreign Marketing Comparisons

RJR Nabisco operates in two major industriestobacco and food processing (Sullivan, 1991, p. 1585). Comparisons of the company's domestic and foreign marketing efforts are presented separately for these two industries.

RJR Nabisco is the domestic market leader in...

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Marketing Analysis of RJR Nabisco. (1969, December 31). In LotsofEssays.com. Retrieved 23:37, March 18, 2024, from https://www.lotsofessays.com/viewpaper/1684260.html