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Global Briefing

Pricing in the Global Tobacco Industry: Signs of Change – Is the Party Over?

Nov 2012

Price: US$2,000

About this Report

About this Report

In the absence of volume sales growth, the tobacco industry relies on pricing strength and product mix improvements via innovation to keep profits rising. However, pricing strength is threatened by brand killers such as illicit trade and the ultimate tobacco control measure – plain packaging, which could cause the commodification of cigarettes and eviscerate profit growth. Does the future thus lie in alternatives such as RYO or non-tobacco cigarettes?


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

Cigarette pricing: Some new issues for 2012

The impact of pricing on the global cigarettes market

Cigarettes: Global price analysis

Cigarettes pricing outlook: Positive in the near term

The importance of price and mix to industry profitability (1)

The importance of price and mix to industry profitability (2)

Cigarette Pricing Overview

Price: Who decides?

Pricing: Key features and vulnerabilities

Price (still) the primary instrument of tobacco control

What drives price?

The tax and price connection

Taxation analysis

Case study: Germany

Germany: Higher price leads to higher illicit – yes…but

Case study: Mexico

Mexico: The tax, price and illicit trade connection

Case study: US

US case study: Tax and alternatives change market

Cigarettes Price Growth by Region

All about price: Regional cigarette market analysis 2006-2011

Western Europe: Pricing trends and prospects

Western Europe: Pricing trend variations

Eastern Europe: Major smoking region reacts to price

Eastern Europe: Smoking cultures cannot resist price rise effect

Case study: Russia

Russia: Change on the way but volume to stay robust

North America: US holds the premium line

Latin America: Region driven by Brazil price growth

Latin America: Testing the price elasticity hypothesis

Asia Pacific: China shapes price and volume trends

Asia Pacific: Price vs smoking culture

Australasia: Awaiting plain packaging

Middle East and Africa: Markets impacted by political events

Middle East and Africa: The least price sensitive region

Cigarette Price Band Analysis

Western Europe: Selected price band analysis

Eastern Europe: Selected price band analysis

Latin America: Selected price band analysis

North America: Selected price band analysis

Asia Pacific: Selected price band analysis

Australasia: Selected price band analysis

Middle East and Africa: Price band analysis and outlook

Company Pricing Strategies

Why the major companies need pricing strength

Price: The industry future – risks and strategies blueprint

Price future: Looking ahead to 2020

Price and innovation

International brands the price bearers: Performance 2011

Case studies: Selected companies pricing and branding strategies

PMI: Shifting Marlboro sub-brands between price bands

JTI: Winning Winston (mid-price)

BAT: Premiumised Pall Mall (economy)

Imperial: Lambert & Butler (economy)

Future – Cigarettes vs Alternatives

Cigarettes vs alternatives on price: RYO

Cigarettes vs alternatives on price: e-cigarettes

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