The Rise and Fall of the Bahman Brand: What Happened to One of Iran’s Major Tobacco Brands?
The Bahman brand emerged from international cooperation and the involvement of Iranian experts with a factory in Switzerland. After its production lines were moved to Iran, it became one of the major brands of the tobacco company. However, the brand’s path changed in later years, a change whose causes go beyond the performance of its rivals.
Ambassador Arjan; Akbar Ebrahimi* - In October, the eighty-ninth year of establishment of Iran Tobacco Company was celebrated; A company that, if we turn the pages of the history of Iran's tobacco industry, we can see an important part of the developments of this industry in its eighty years.
But among all the brands that were born in this direction, "Bahman" has a different story; The story of a brand that was born not just from a business idea, but from the heart of research, technology transfer, international cooperation and knowing the taste of Iranian consumers; A brand that once became one of the most important products of the tobacco company and then, gradually, moved away from its position.
The question is, what happened to Bahman? To answer, maybe it's better to go back a bit first.
Iran Tobacco Company has gone through several different periods in its evolutionary path.
In the first years, until the late 40s, an important part of the company's production was made up of products such as chewing tobacco and unfiltered cigarettes such as Ashnu and Homa.
In the 50s, the industry entered a new phase. The production of filter cigarettes such as Zar and Shiraz was developed by using mixed blends of Iranian tobaccos. In the same period, the tobacco company entered into a business partnership with the American company R.J. became Reynolds and Winston was included in its product portfolio.
But the revolution of 1357 was another turning point in this direction. With the termination of cooperation with R.J. Reynolds, the tobacco company, sought to create a product with the characteristics and composition of American brands by relying on new international collaborations.
After the investigations, three companies were considered for business cooperation, joint production and technology transfer: Japan JTS, German-Swiss Restma and Bulgaria's Bulgar Tabac.
The collaboration with the Japanese did not work out and the tobacco company followed two parallel paths with two other partners. With Bulgar Tabac, the joint production project "Azadi" was formed, and with Restma, the production project "Bahman". And here, the story of Bahman begins.
avalanche; A brand that was born from the heart of an international project
The first Bahman brand product was designed and produced in Zurich, Switzerland, in a German-owned factory, with the participation of Iranian experts. For this reason, it was known as "Swiss Bahman" in the first years of its presence in the Iranian market.
This product was produced in the same factory and imported to Iran until 1373; But in 1373 another important event happened:
New production lines were purchased and the production process was transferred to Iran.
From here on, Bahman's story was no longer just a story of technology transfer.
The combination of German production technology with Iranian creativity gradually formed a brand that found its own characteristics; The brand that was known as "Bahman Flavor" in the international market and because of its special features, found a different position among consumers.
Bahman was no longer just an imported or copied product; It was an Iranian brand that took part of its identity from the taste and knowledge of the Iranian market.
Bahman's product portfolio developed in the following years and this brand was able to take a significant share of the market.
The peak production of Bahman basket was in 2008; When its production did not reach more than 16 billion.
But today, according to the mentioned figures, the production of this basket has increased to about 5 billion.
It means that a brand that was once at its peak has lost a significant part of its position.
In my opinion, the answer should be found in several important milestones in the history of the tobacco company.
1. When "participatory production" took the place of "brand development".
The 80s can be considered one of the most important turning points in the history of the Iranian tobacco industry.
During this period, the tobacco company went to cooperate with brands that had a part of the contraband consumption market, and a new model was formed under the name of cooperative production, and brands such as JTI and BAT started their production in tobacco complexes.
This model generated significant income for the tobacco company; Especially considering the nature of these collaborations, the income status of tobacco became much better. But right here, a strategic event may have happened:
When a company finds it easier and less difficult to generate income from a new business model, it may gradually neglect to invest seriously in its strategic assets.
For its growth, Bahman needed market research, product development, marketing, brand management, and continuous understanding of consumer behavior. However, in a situation where the tobacco company could earn money from other brands' products, the motivation and necessity to seriously develop an internal brand might decrease. On the other hand, competitors like Winston, with specialized marketing, market research, and brand development teams, continuously monitored the market.
The competition of brands had not stopped; But perhaps the tobacco company's playing field had changed.
2. assignment; The beginning of a new and risky period
The following decade, the tobacco company entered another phase; The stage that was associated with the transfer of the company and the change of the ownership structure. The transfer, in itself, does not necessarily mean the decline of a company.
The main issue is whether the organization has acquired the necessary strategy, governance, structure and capabilities to be present in a competitive market after the change of ownership.
In the case of tobacco, we can seriously question whether this transition was accompanied by a clear plan for the future of domestic brands, market development, competition management and redefining the company's role in the industry. If the answer is negative, it is natural for competitors to fill the created void. And in such a market, the brand will not wait.
A competitor comes in, takes share, builds a niche, and ultimately changes a part of the market forever.
3. A deeper issue: an organization that moved from monopoly to competition
Perhaps this is the most important part of this story. The tobacco company had been operating for years in an environment where monopoly, regulatory power and sovereign position constituted an important part of its advantage.
But when the rules of the game changed, it was no longer enough to have a factory, a production line, and a historical record.
Continuous investment in the brand
And most importantly, the will to fight for market share
An organization that has worked with monopoly logic for years must redesign itself to enter the competitive market. Otherwise, the equipment and factory may remain, but the competitiveness will be lost.
Bahman may be one of the victims of this paradigm shift.