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TOBACO MARLBORO MARKET
COMPETITORS, MARKETING AND BANS BY JULIO SORIA
Marlboro is the world’s largest selling brand of cigarettes. It is made by the Philip Morris Company, originally a London-based cigarette maker. Philip Morris named the cigarette after the location of the company’s first factory in London’s Great Marlborough Street. In 1902, Morris created a New York branch to market his brands in the U.S.A. The name changed to become easier to spell and by 1924, Marlboro was advertised as a woman's cigarette. In the 1960s that changed as “Marlboro Man” came along. In America, Marlboro is the number one cigarette brand. In 2009, Marlboro's market share of 42% was larger than its two largest competitors combined. Marlboro had to rebrand products marketed as "Lights” or "Mild” because that gave the impression its cigarettes are safe. Marlboro has been a big sponsor of motor racing since 1972.
TOBACCO MARKET IN THE WORLD AND REPERCUSSION
Tobacco had already long been used in the Americas when European settlers arrived and introduced the practice to Europe, where it became popular. Many Native American tribes have traditionally grown and used tobacco with some cultivation sites in Mexico
Powerfully addictive properties of tobacco, tolerance and dependence develop. The usage of tobacco is an activity that is practiced by some 1.1 billion people, and up to 1/3 of the adult population
World Health Organization (WHO) reports it to be the leading preventable cause of death worldwide
Economy. Major tobacco companies have encouraged global tobacco production. Philip Morris, British American Tobacco and Japan Tobacco each own or lease tobacco manufacturing facilities in at least 50 countries and buy crude tobacco leaf from at least 12 more countries. This encouragement, along with government subsidies has led to a glut in the tobacco market. This surplus has resulted in lower prices, which are devastating to small-scale tobacco farmers. According to the World Bank, between 1985 and 2000 the inflation-adjusted price of tobacco dropped 37%. Tobacco is the most widely smuggled legal product.
Tobacco, one of the most widely-used addictive substances in the world, is a plant native to the Americas and historically one of the half-dozen most important crops grown by American farmers.
Since 1964 conclusive epidemiological evidence of the deadly effects of tobacco consumption has led to a sharp decline in official support for producers and manufacturers of tobacco, although it contributes to the agricultural, fiscal, manufacturing, and exporting sectors of the economy. Tobacco is an agricultural commodity product, similar in economic terms to agricultural foodstuffs:
-The largest tobacco company in the world by volume is China National Tobacco Co.. -International markets are dominated by five firms: 1.Altria, 2.British American Tobacco ,
5.Philip Morris International.
Altria was formerly called the Philip Morris Cos, and it still owns the Philip Morris tobacco business in the United States, but Philip Morris International has been fully independent since 2008. In most countries these companies either have long established dominance, or have purchased the major domestic producer or producers, often a former state monopoly.
SMOKING BANS PER COUNTRY: RESTRICTIONS
Tobacco advertising is becoming increasingly restricted around the world.
The tobacco industry in the United States has suffered greatly since the mid-1990s, when it was successfully sued by several U.S. states. The suits claimed that tobacco causes cancer, that companies in the industry knew this, and that they deliberately understated the significance of their findings, contributing to the illness and death of many...