1. Tobacco Industry

2. Content Industry development Industry structure
Products, Major players
Risk and Barrier of entry
Market drivers
News and development

3. History: the Development Process
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

4. 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”

5. 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

6. Present: Tobacco Industry’s Status
Growing or mature?

7. Content Industry development Industry structure
Products, Major players
Risk and Barriers of entry
Market drivers
Recent news

8. Present: Tobacco Industry’s Status

9. Present: Tobacco Industry’s Status

10. Present: Tobacco Industry’s Status
Conclusion: mature or declining (personal opinion it depends on legal issues very mcuh)

11. 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

12. Kinds of Products
1.4 Snuff
1.5 Chewing Tobacco

13. Consumption
11/26/11

14. 11/26/11

15. 11/26/11

16. Oligopoly
5 Major Companies

17. Content Industry development Industry structure
Products, Major players
Recent news
Market drivers
Competitive advantages

18. What are the market drivers?

19. Share-change-driving Factor
Market Factor
Firm Effort Factors

20. Market Factors Changes in long-term industry growth rate
Changes in social concern, attitude and life style

21. Firm Effort Factors Product Innovation Marketing Innovation
Technological Changes: 
Firm Effort Factors
Product Innovation
 Marketing Innovation
Technological Changes
Changes in cost and efficiency

22. 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

23. 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

24. Content Industry development Industry structure
Products, Major players
Market drivers
Barriers of entry and risk
Recent news

25. Risk and Barriers of Entry

26. Content Industry development Industry structure
Products, Major players
Market drivers
Barriers of entry and risk
Recent news