¶ … Plain Packaging on the Cigarette Market Demand and Supply in Australia
The Australian cigarette market is reported to be a "subset of the global industry." (Carter, 2003) There are three companies operating in Australia including: (1) British American Tobacco Australia (BATA); (2) Philip Morris International (Australia) PMA and (3) Imperial Tobacco Australia (ITA) all whom are wholly owned subsidiaries of their overseas parent. While the Australian tobacco market is a mature market with per capita consumption in decline the tobacco companies "remain highly profitable entities and business is strong…the equivalent of 1100 packs of 25 cigarettes are sold in Australia every minute." (Carter, 2003) Because the tobacco companies are owned by overseas companies, none of them are listed on the Australian Stock Exchange and that means that the information available on the specific local company operations is limited.
Australian Cigarette Brand Examined
Carter (2003) examines brand identity in Australian cigarette brands, brand positioning, brand image and brand equity. Results from the study report that cigarette manufacturers benefit from their competitors brand equity as well as their own. Australian smokers are viewed by the industry as less brand loyal and more strongly oriented to low tar cigarettes. There are three categories of successful Australian brands: (1) premium; (2) mainstream; and (3) supervalue. Premium cigarettes are 'quality' while mainstream is a "fair go" for ordinary Australians with Supervalue being "value for money." (Carter, 2003) Brand equity has been undermined in Australia by tobacco control activities. (Carter, 2003, paraphrased) In 1976 Federal Australian, law made the majority of forms of tobacco marketing illegal and this was strengthened in the 1992 Federal Tobacco Advertising Prohibition (TAP) Act.
It is reported that the Australian cigarette market is "far simpler than the complex matrix of brands available internationally." (Carter, 2003) In supermarkets, it is reported that ten brands account...
This, in turn, will also affect the overall economic situation of the country. A particular country's condition will also affect its neighboring country, hence, everyone is the world is affected. Usually, children are the common victims of the adverse effects of tobacco. Babies of smokers have greater chances of being born pre-maturely or having low birth weight. Moreover, secondhand smoke can trigger sudden infant death syndromes. Cigarette smoke can also
Today, each country implements the quotas it finds most suitable, leading as such to major fluctuations in the taxes, their percentage in the price and the final retail price. The federal authorities generally explain the high cigarette taxes as a means of reducing the consumption of cigarette, with the ultimate aim of reducing the number of smokers and protecting the health of the individuals. Nevertheless, fact remains that the fares
.." (Fleenor, nd) it is related that it did not take long for this to spread into other U.S. states with trucks all around the United States being hijacked and robbed of their cigarette cargo. The following tables lists the state excise tax rates on cigarettes for January 1, 2007. State Excise Tax Rates on Cigarettes (January 1, 2007 TAX RATE per pack) RANK STATE TAX RATE CENT PER PACK Alabama (1) Nebraska Alaska (3) Nevada Arizona New Hampshire Arkansas New Jersey California New Mexico Colorado New York
Cigarettes Why do people smoke? All of know that smoking is a dangerous, even potentially lethal habit - and one moreover that now carries an increasing weight of social stigma. And yet still people do it. There must therefore be compelling reasons why people should endanger their health to such a degree and the most obvious of these reasons is the one that smokers themselves offer up the most often: Smoking
When in adulthood, people start smoking because of different reasons, mainly because they encounter various problems in their lives. Smoking is commonly identified as a solution to stress, and, people get a feeling of relaxation after smoking. People that smoke are normally thinner than those that don't, and, accordingly, some overweight persons might take up smoking in hope that it would make them slim. Tobacco smoking reduces appetite and people's
Cigarette Advertising Campaign If we look at the case of Mary and RJR there is a contract formed between them for Mary to undertake a year long advertising campaign to present the companies cigarettes in a positive light, her remuneration was to be 25% of the increase in sales that the campaign created. It was also recognised that this was a very vague amount, and may be difficult to assess, as
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