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Marlboro Cigarette Brands Research Paper

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Introduction
Marlboro cigarette brand gained its market share in 1995 when Philip Morison launched
filtered cigarette leading to an increase in market share by 5000 percent. There are different types
of Marlboro cigarettes which include Marlboro Light, Marlboro Regular, Marlboro Menthol,
Marlboro Ice, Marlboro Advance, and Marlboro black (Goodman 2016, p.274). The paper will
investigate the price trend for the Marlboro brands in the recent years, its demand and supply
determinants, and the nature of the Marlboro brand market structure using microeconomic
theories for the market structure.
Price Trend for Marlboro Brands in Recent Years
Market and price trend for the Marlboro brands are generally determined by the
availability of customers and cost of production. However, there are a number of factors that
determines the supply and demand for the Marlboro brands in the market which ascertains the
nature of market structure for the Marlboro brand (Blecher, Ross, & Leon 2013, p.6). Its strategy
of targeting female smokers in UK was not viable leading the company to change its target
market to female smokers in United States by 1920.
Marlboro has been built on a unique advertising slogan that emphasized on “Mild As
May” to demonstrate its middle-like cigarette type that is friendly to women. The volume of
Marlboro cigarette consumption declined in 2014 globally leading to a fall in its market price by
3.1 percent. Philip Morris still managed to secure its market status in key markets places for the
Marlboro brand that includes German, France USA, Canada, Ireland, Denmark, Australia,
Ukraine, Israel, UK, and New Zealand. The price trend for the Marlboro brand can be explained

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using the figure that includes the pricing for a 20 pack of Marlboro cigarette from selected top
economies
Figure 1.0: Price Trend for the Marlboro brand
Source: He & Chaloupka, 2018
From the figure above, Marlboro brand is expensive globally in Australia at €16.71
which makes it the most expensive nation in terms of the price for the Marlboro brand. It is
closely followed by New Zealand that with a pricing of €14.81 whereas Ukraine has the least
price for the Marlboro brand at €0.91. Different in prices for the same brand depends on the
availability of the good, consumer preferences, government policies, and cost of production.
Australia government imposed tough rule for the Tobacco smokers where by the higher price
was an initiative to discourage tobacco smoking given that a higher price of a commodity leads
to a fall in its demand. By the end of 2018, Australia will be selling the Marlboro brand for a 20
pack at €17 showing an increase in price of the commodity.
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Selling Price for Marlboro brand
around the Globe 2016-2018
Price (€)

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Introduction Marlboro cigarette brand gained its market share in 1995 when Philip Morison launched filtered cigarette leading to an increase in market share by 5000 percent. There are different types of Marlboro cigarettes which include Marlboro Light, Marlboro Regular, Marlboro Menthol, Marlboro Ice, Marlboro Advance, and Marlboro black (Goodman 2016, p.274). The paper will investigate the price trend for the Marlboro brands in the recent years, its demand and supply determinants, and the nature of the Marlboro brand market structure using microeconomic theories for the market structure. Price Trend for Marlboro Brands in Recent Years Market and price trend for the Marlboro brands are generally determined by the availability of customers and cost of production. However, there are a number of factors that determines the supply and demand for the Marlboro brands in the market which ascertains the nature of market structure for the Marlboro brand (Blecher, Ross, & Leon 2013, p.6). Its strategy of targeting female smokers in UK was not viable leading the company to change its target market to female smokers in United States by 1920. Marlboro has been built on a unique advertising slogan that emphasized on “Mild As May” to demonstrate its middle-like cigarette type that is friendly to women. The volume of Marlboro cigarette consumption declined in 2014 globally leading to a fall in its market price by 3.1 percent. Philip Morris still managed to secure its market status in key ...
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