StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Initial Market - Tax, Price, and Cigarette Smoking - Essay Example

Cite this document
Summary
The author of the paper "Initial Market - Tax, Price, and Cigarette Smoking" will begin with the statement that initial market research data has been analyzed, so decisions must be made regarding where and how much product will be sold in the UK…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.3% of users find it useful
Initial Market - Tax, Price, and Cigarette Smoking
Read Text Preview

Extract of sample "Initial Market - Tax, Price, and Cigarette Smoking"

One issue that can be addressed is the combination packaging of products for the 1 million male cigar and cigarette customers who use both products.

We can obtain some information from this segment in terms of the cigar-to-cigarette use ratios, to provide the most desirable product combination. Branding efforts of cigarette products should continue to focus on the retailers who will likely sell higher volumes of products. Data from each retailer and customers who purchased our cigarette brand have disclosed the amount of sales volume we can expect at each location. Survey research efforts have provided information regarding target segments. In addition to the 1 million male cigar/cigarette smokers, the 10 million smokers in Britain come from all geographic regions, with the highest concentrations in urban areas. The largest age group is 18-34, almost equally male and female, with construction, production, and service jobs being the most reported occupations. Though many in the 35-55 age group have ceased to purchase tobacco products, this segment still contains a significant portion of cigarette consumers, as the largest segment of the general population.

For the youngest age group, cost and convenience are the main reasons for selecting the brand, though recognition is another important factor as well. This group selects brand products based on exposure or influence. As peers share products and discuss products they expose others to product brands. Promotional activities for this age group should include referral bonuses and similar programs. Registration cards are sent or given to consumers who have already provided survey information. Three detachable coupons are given to friends so they can go to a retail location for a free pack of cigarettes. The customer is also entitled to one free pack for their efforts. Such activities will help to increase brand awareness. Our brand should be priced just below competitors, to urge repeated purchases and imprint the brand on this age group. “Pricing and price-related promotions are among the most important marketing tools employed by tobacco companies” (Chaloupka, et al). Though this may be true in the introductory phase, future efforts should focus on brand image and availability as they are long-term factors that affect buyers.

The 35-55 age group is a tougher market. Smokers in this segment will likely have tried several brands. While price is a factor, taste and availability are the most important considerations. Market saturation, with the placement of products in the most frequented retailers, should be the main focus. Preliminary market research data suggests that our brand satisfies consumers at a moderately high level, within the 1-5 rating system used. Availability is also important. Those established with families and careers often don’t Have time to search for desired brands. Our research data also indicated that many in this segment frequent retailers located along routes to and from work.

The proper distribution also improves brand recognition. “The marketer doesn't just need to tell people about the product, but also to ensure that it is priced, distributed and engineered correctly In this context, "correctly" means in a way that meets the needs of the customer” (Hastings, MacFayden &Eadie). Meeting the needs of customers in a relatively saturated market is difficult. However, the opportunity exists for unique offerings that are generally provided by specialty tobacco companies. In Greece, tobacco use is most common in the form of flavored pipe tobacco. Cigarette tobacco can easily be flavored in a similar manner. Flavors may appeal to female smokers more than the previous “female brands” such as Virginia Slims, that depended upon current cultural values. “Young women aged 18 to 24 are exceptionally valuable for the tobacco industry” (Century). With the popularity of gourmet coffee flavors among young women, this could become a future niche market for our company. As we determine other regions of the globe where future expansion may occur, import-export statistics provide us with valuable information. Next to the US, China is the largest exporter of cigarettes. European nations like Spain and Belgium export specialty items. As US brands are popular in Germany, Belgium, Italy, and Korea (Tobacco Trade Atlas, 19) are the largest markets that import US cigarettes. Future efforts toward these markets should begin with similar brand introduction and promotion strategies. Flavored cigarettes should be offered only if they are widely accepted in the UK. Once introduced there, if they are desirable, other European markets will be open to such product offerings.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Initial Market Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Initial Market Essay Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/business/1529010-initial-market
(Initial Market Essay Example | Topics and Well Written Essays - 750 Words)
Initial Market Essay Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/business/1529010-initial-market.
“Initial Market Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/business/1529010-initial-market.
  • Cited: 0 times

CHECK THESE SAMPLES OF Initial Market - Tax, Price, and Cigarette Smoking

Air Traffic and Terminal Passengers in the UK Airports

The price of a car Affordability of cars will most certainly increase their demand.... Cross elasticity of demand measures the effect of the demand for one good because of the change in the price of another good.... The elasticity is measured because of the change in the price of one good and how this will affect another commodity's demand.... New offerings With the introduction of a new model in the market, the demand for this car is usually higher....
9 Pages (2250 words) Assignment

Tax, Price and Cigarette Smoking issues

From the paper "Microeconomics: Tax, price and cigarette smoking" it is clear that the American Tobacco Company was the first in its category to make use of the Bonsack cigarette machine to produce the instant ones replacing the hand-rolled cigarettes.... The tax is devised in such a way to discourage smoking that the consumption of cigarettes has decreased by 20% according to a report.... The factors that affect the size of the tobacco market are the tax rate that is imposed on cigarettes in the country and the smoking habits of the newer younger generation as a result of anti-smoking campaigns (Mankiw, 2012, p....
6 Pages (1500 words) Essay

MARKETING PLAN FOR CIGAFLAVA

In the 20th century, cigarette smoking is the leading form of tobacco consumption.... This marketing plan will briefly summarize the introduction of Cigaflava brand in the cigarette market.... Cigaflava is a unique flavored cigarette produced by DebLyn Enterprise.... A company analysis is reported as an internal review using SWOT analysis and competitive analysis with the rival cigarette brands.... The cigarette industry segment has become an important segment for tobacco....
11 Pages (2750 words) Essay

Consumer Behavior: A Comprehensive Consumer Audit in Respect of Phillip Morris Cigarettes

The Marlboro world of the cowboy was perceived to be outdoor, clean and unspoiled, providing a great mood of relaxed smoking satisfaction.... smoking a cigarette was projected as a reward for completing an arduous task and the sociability of smoking in a group.... First, our smokers had turned health conscious primarily as a result of robust state-funded and persistent campaign against smoking highlighting its hazards.... Therefore it is a prudent marketing stance to examine in depth not only one's own products and services but also the market of users for such products and services....
15 Pages (3750 words) Research Paper

Effects of Cigarette Taxes on the Demand for Cigarettes

ccording to the law of demand, the price and demand of a normal good are negatively related.... The paper "Effects of Cigarette Taxes on the Demand for Cigarettes" discusses that in order to conquer the habit of smoking and mop out the phenomenon of death; a tax is imposed on cigarettes.... Lately, the world economy has been more concerned about the harmful effects of smoking.... In recent times, smoking has taken the shape of an epidemic, which is affecting not only people's minds but also their lives....
12 Pages (3000 words) Research Paper

Cigarette Tax: Distribution of Tax Burden or the Incidence of Taxation

smoking is injurious to health.... The decline in smoking rates obviously has some beneficial effects on the health standard of people.... Moreover, there remains the problem of passive smoking by others which causes health hazards for passive smokers.... The "cigarette Tax: Distribution of Tax Burden or the Incidence of Taxation" paper clears about the determinants of demand and supply and how they affect the demand and supply of any commodity....
20 Pages (5000 words) Term Paper

What Economic Incentives Have Had the Greatest Impact on the Smoking Decline

These economic incentives had led mostly to the fall in smoking in Australia.... Australia's largest avoidable cause of death and disease appears to be smoking.... Although the smoking rate has fallen over the existing decades, the risk associated with smoking continues to remain at the highest level4-5.... The sharp decline in the sales of cigarettes seems to have been slightly offset by the amplified use of smoking tobacco and cigars....
13 Pages (3250 words) Research Paper

Microeconomics: Tax, Price and Cigarette Smoking

The paper "Microeconomics: Tax, price and cigarette smoking" is a perfect example of an assignment on macro and microeconomics.... The paper "Microeconomics: Tax, price and cigarette smoking" is a perfect example of an assignment on macro and microeconomics.... The factors that affect the size of the tobacco market is the tax rate that is imposed on cigarettes in the country and the smoking habits of the newer younger generation as a result of anti-smoking campaigns (Mankiw, 2012, p....
6 Pages (1500 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us