LEARN MORE...

Marlboro Cigarette Brands Research Paper

Content type

User Generated

Subject

Business

Type

Research Paper

Uploaded By

FurzGurRpbabzvfg

Pages

Showing Page:

1/12

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

Showing Page:

2/12

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.

Selling Price for Marlboro brand

around the Globe 2016-2018

Price (€)

Showing Page:

3/12

End of Preview - Want to read all 12 pages?

Access Now

Unformatted Attachment Preview

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 ...
Purchase document to see full attachment

Tags: Marlboro cigarette Marlboro Brands Philip Morris smoking control policies