Friday, June 21, 2013

Domestic tobacco market specialists are cautious



An opinion survey , which was undertaken on RusTabak portal in October 2011, showed that tobacco market specialists see the following main reasons for the success of Donskoy Tabak: aggressive advertising targeting young people (40.35%), export to unrecognised republics (26.68%), and credit terms for trade partners (24.95%). Another 2.39% of respondents saw the reason in “dumping”, while 3.04% chose “all the above”. Only 2.59% attributed the company’s success to “other business practices”. These disheartening results from a survey of specialists gives evidence that the picture  portrayed by the factory for investors is very much different from what experts see.
The real situation at the factory is such that its future is more than uncertain, regardless of whether it is sold now. It remains to be seen whether a decline will begin under its present owner or whether growth will continue, but it is quite obvious, that the new owners of Donskoy Tabak, whoever they are, will inherit a number of unsolved problems and questionable business practices and thus may eventually see the return on their investment being different

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