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Global Briefing

New Product Development in Cigarettes: Innovate or Fail – Keeping Price in Power

Jul 2012

Price: US$2,000

About this Report

About this Report

Innovation in cigarettes is a vital element in maintaining consumer perceptions of international brands, whilst boosting value sales in the face of falling volumes and increasing the share of premium brands. Innovation in pack type, pack size, lower tar, superslims, carbon filters and flavour capsules are some of the prevalent trends appearing in all price bands, as manufacturers ensure a good product mix and adopt pricing strategies which allow them to shift sub-brands between price bands.


What this report includes

  • Up-to-the minute analysis of the latest trends in the industry
  • New product development, forecasts and other themes
  • Unique graphics and illustrated case studies
  • Most recent brand and company news
  • New insight into the size and shape of the market

Why buy this report

  • Clear, concise powerpoint format makes it easy to digest
  • Leading industry opinion keeps you abreast of latest news and trends
  • Forward-looking outlook on a category, market or issue affecting the industry
  • Latest five year forecasts assess how the market is predicted to develop
  • Understand the competitive environment, the leading players and brands

Table of Contents

Table of Contents

Introduction

Scope

Key findings: Innovation in cigarettes

Background: Innovation Drivers

Cigarettes: Price comparison by region

Price

Female smokers

Health concerns

Background: Price and Premiumisation

Types of innovation: Premiumisation

The impact of innovation and premiumisation on the market

Retail prices by region: How high can they go?

Pricing power rules: But for how long?

Pack Type Innovation

Packaging innovation for cigarettes

Packaging innovation: Examples of the main trends

Packaging innovation: Maintaining freshness

Limited edition pack designs

Limited edition pack types

How innovations are communicated to smokers

Pack Size Innovation

Global trends in pack size

Germany focus: Larger packs

UK focus: Smaller packs

Cigarette length innovation: Getting shorter with pocket packs

Slim/ Superslim Innovation

Slim/ superslims background

Superslims market trends

Superslim packaging trends

Slim/ superslim latest trends

Microslims : Getting ever slimmer

Filter and Menthol Innovation

Filter background

Filter innovation: Carbon/charcoal

Filter innovation: Flavour capsules

Filter innovation: Flavour capsule variety packs and non-menthol

Menthol background

Menthol innovation: Latest trends

Other filter innovation: Perforations and recesses

Technology as a selling point in innovation

Tar Level Innovation

Tar levels background: Mid tar eclipses high tar

China focus

Japan focus

Additive-free and organic cigarettes remain niche

Innovation Strategy by Company

Multinational brands by price band

Multinational strategy: Background

PMI focus: The Marlboro Gold family (premium)

PMI focus: Marlboro – shifting sub-brands between price platforms

JTI focus: Winning Winston (mid-price)

BAT focus: Premiumised Pall Mall (economy)

Imperial focus : Lambert & Butler (economy)

Parity pricing for innovation: Why is it employed by Imperial?

The impact of innovation on brand share

Report Definitions

Definitions (1)

Definitions (2)

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