The guest of the fourth episode of SoMo Cast, Ivana Miljan Tremac, a board member and marketing director at British American Tobacco (BAT), explained how marketing works in a highly regulated industry and what the company’s long-term vision is. She began her career at a company behind a globally recognized cosmetics brand, and later in a sports company.
After an international and domestic career in companies known for highly successful marketing tactics, she decided to continue her path in the strictly regulated tobacco industry. She joined the BAT team at a time when the company decided to transform its business towards new, smoke-free product categories. This includes e-cigarettes, heated tobacco products, and nicotine pouches, which, according to research, contain fewer harmful substances compared to cigarettes. This is part of a global transformation towards “A Better Tomorrow™,” aiming to build a Smoke-Free world where adult smokers switch from cigarettes to less harmful alternatives.
What does marketing look like in a regulated industry?
Upon joining BAT, she was responsible for leading the development of new tobacco product categories for the Adria cluster markets, covering eight countries – Croatia, Serbia, Bosnia and Herzegovina, Montenegro, North Macedonia, Slovenia, Albania, and Kosovo. She explained what marketing looks like in such a company, and how it differs from market to market.
“Globally, we have large and strong campaigns. Take Italy as an example, which isn’t that far from us. We have billboards, digital campaigns. The freedoms are much broader, especially for new categories that are becoming more and more present. In Croatia, it’s complex, but I believe that everything complex is actually a bigger challenge and, therefore, more fun. Regarding how marketing looks here, when I arrived eight years ago, digital wasn’t that prominent. Over time, especially in the last two or three years, we realized that digital is the best way to reach the consumer, not by pushing the product, but by understanding what the consumer is looking for and giving them the right information where they seek it.”
She emphasizes that marketing at BAT has significantly evolved, with digital tools playing a major role. In recent years, they’ve realized that digital is the best path to the consumer, and they now have various programs that allow them to gather information about consumer desires and habits, such as loyalty programs, chatbots, and similar tools that enable communication with consumers. What also sets them apart from many marketing companies is that they exclusively target adult smokers.
The new product categories have become a kind of gadget, enabled by new technologies. Ivana highlights that BAT, like any other company within marketing, segments consumers and knows which products, and in what way, to approach which consumer. She also explained the structure within the department:
“What I lead is the activation team, let’s say traditional marketing. In Croatia, there are 19 of us, and in total, I lead 30 people in the Adria cluster. Then there’s the trade team, which is much larger and somewhat more traditional. And then we have retail, both our own and external retail. We position our products there just like in any other industry. If you’re not visible, no one will buy you. Communication and education of the sales staff are extremely important, as they need to know how to explain and answer any consumer question, which is something we invest a lot in.”
Building a Smoke-Free World is the vision of the entire BAT group
The marketing department of the Adria cluster aims to support the global vision of the group: building a Smoke-Free World. This vision is global, and the task of marketing teams across the group is to select the best product for their market and bring it closer through digital media, and then through traditional retail approaches to the consumer.
“And all with the aim that by 2035, 50% of our revenue will come from new categories. We believe this is the right direction towards a Better Tomorrow™. And to achieve this, through our R&D center, we invest billions of pounds to make the right product in the right way. We are very careful that these ingredients are good for the consumer, that it’s tested, and that we’re not putting just anything into the consumer’s hands,” explained Ivana.
They have a big task ahead of them, and moderator Nikola Vrdoljak also asked what kind of employees she is looking for her team.
“When I choose people to work on my team, it doesn’t really matter what kind of prior knowledge they have. Of course, sometimes we look for people with experience. But the only thing I really care about is how motivated they are to work – are they ready to invest, to go beyond what is required for that day. The second thing I care about is how they will fit into the team. I have an exceptionally good team that gets along well outside of work, and I think it’s important that people get along and fit in well. Those are my only two criteria. Everything else can be learned. The job can be learned.”
Learn more about digital marketing within the tobacco industry and her goals for the future in the fourth episode of SoMo Cast. Stay up to date with the latest news about this year’s SoMo Borac edition via the newsletter and on SoMo Borac’s Facebooku, Instagramu, and LinkedInu. The conference, award ceremony, and party will take place at the SC Cinema in Zagreb, and you can purchase your tickets on the SoMo Borac website.
