Tobacco Industry
Content Industry development Industry structure Products, Major players Risk and Barrier of entry Market drivers News and development
History: the Development Process 600-900 AD: Mayan Indians in Mexico used tobacco 1612: colony settlers in Virginia grew tobacco as a cash crop 1865: Washington Duke from North Carolina made the first commercial cigarette 1881: cigarette-making machine was invented by James Bonsack in USA
History: the Development Process Late 19th century: James Bonsack went into business with Washington Duke’s son, James “Buck” Duke, producing the first brand of cigarette “Duke of Durham” And Buck Duke and his father started the first tobacco company in the US, “American Tobacco Company”
History: the Development Process American Tobacco Company was the largest tobacco company until the early 20th century 1902: Philip Morris company came out with its Marlboro brand During WWI and WWII, cigarette was marketed to women 1964: dangers of cigarette was brought up and in the next year U.S. passed the cigarette labelling and Advertising Act
Present: Tobacco Industry’s Status Growing or mature?
Content Industry development Industry structure Products, Major players Risk and Barriers of entry Market drivers Recent news
Present: Tobacco Industry’s Status
Present: Tobacco Industry’s Status
Present: Tobacco Industry’s Status Conclusion: mature or declining (personal opinion it depends on legal issues very mcuh)
Kinds of Products 1.1 Pipe Tobacco 1.2 Cigars 1.3 Cigarettes East USA, South America, Philippines, Mexico 1.3 Cigarettes Easy to make- glue, paper, filter, tobacco blend
Kinds of Products 1.4 Snuff 1.5 Chewing Tobacco
Consumption 11/26/11
11/26/11
11/26/11
Oligopoly 5 Major Companies
Content Industry development Industry structure Products, Major players Recent news Market drivers Competitive advantages
What are the market drivers?
Share-change-driving Factor Market Factor Firm Effort Factors
Market Factors Changes in long-term industry growth rate Changes in social concern, attitude and life style
Firm Effort Factors Product Innovation Marketing Innovation Technological Changes: Firm Effort Factors Product Innovation Marketing Innovation Technological Changes Changes in cost and efficiency
Firm Effort Factors Product Innovation: Change in cigarette design Technological Changes: Firm Effort Factors Product Innovation: Change in cigarette design Change in cigarette blend Launching new brands in the market
Firm Effort Factors Marketing Innovation: Geographic coverage Technological Changes: Firm Effort Factors Marketing Innovation: Geographic coverage Strategic partnership with distributors Sponsoring national events and other sale promotions
Content Industry development Industry structure Products, Major players Market drivers Barriers of entry and risk Recent news
Risk and Barriers of Entry
Content Industry development Industry structure Products, Major players Market drivers Barriers of entry and risk Recent news