Case Analysis—Warner-Lambert Ireland: Niconil

They both Research the facts of tobacco and give statistics in their advertisements. However this doesn’t always work so they research who their audience is and use an effective method to make them stop smoking. Then they took Action, whether it be scaring them, making them feel guilty, or making them feel like they were targeted. They Communicated through television commercials, social media, and by word of mouth. They have both Evaluated the effects of their campaigns and have enjoyed the results. 23 percent of teens smoked cigarettes in the year 2000, now in the year 2017 only 6 percent of teens smoke. The company that lost value in this case was the Big tobacco companies. They have taken a hit with this new generation of potential tobacco users not using. The media has shown that these anti-tobacco campaigns have affected Big tobacco’s stocks bringing them down from 7-10

Tobacco ads have stood out to me from a young age, I was used to seeing cigarette ads in every magazine and street corner. When I was 11 I joined a tobacco advocacy group, I wanted to inform young people my age about the dangers of tobacco but mostly I joined because they paid me. I found these two ads and I remembered sitting in an empty classroom analyzing tobacco ads and discussing how they appeal to us. I found two ads, both from the most recent issue of a popular celebrity gossip magazine. The first major difference one notices is that of the ads is catered to a completely different audience. Blu E-cigarettes cater to the new age of tobacco consumers. While Newport menthol cigarettes are tried and tested, a classic. The major differences in this ad make it difficult to pick which one is most effective at getting more buyers of their product. Newport’s ad is

Breakeven Analysis for Product Tylenol Approach 1 - Same price as Tylenol Approach 2a - Cheaper than Tylenol Approach 2b - Cheaper w/lowered trade cost $ $ $ $ Unit Cost (Variable Cost) 0.60 0.60 0.60 0.60 Trade Cost (Selling Price to Retailers) $ 1.69 $ 1.69 $ 1.05 $ 0.70 Fixed Cost (Advertising) 2,000,000 6,000,000 6,000,000 6,000,000 Break-Even Quantity [Fixed Cost/(Trade Cost-Unit Cost)] 1,834,862 5,504,587 13,333,333 60,000,000 Contribution Margin (Unit) 64% 64% 43% 14%

financial cost of smoking to society in 1990 was $2.59 per pack of cigarettes. Now 2017, this

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

was 35.1 billion dollars. With a product that kills so many of its customers, your only concern in this industry is to increase sales and make a profit. Definitely in the tobacco industry and most others, it is my opinion that you cannot cater to the best interest of both the company and the consumer. Even a good company with the best intentions will eventually come to a crossroad where choosing what is best for one will not have such a great outcome for the other. Their best interests will ultimately conflict, and you will be forced make a choice between the two.

Tobacco companies should invest more in doing research to do a breakthrough invention so they could produce products that are healthier as the anti-cigarettes campaign is showing definite results. With e-cigarettes that states themselves as healthier products, maybe in the future the demand will shift again to e-cigarettes. Only by discovering new things that satisfy the customer’s want and need will the company be successful.

The deal would need to be accomplished by March 23rd, 2018. Once the deal is established we would purchase 400 packages of nicotine gum and 200 packages of nicotine dermal patches. This process would need to be completed by March 27th, 2018.

Department of Health & Human Services 2000 report by the Surgeon General. Increasing the price of a pack of cigarettes by ten percent has been shown to reduce smoking rates by an average of 4.8 percent (a mean price elasticity of -0.48) as more smokers quit and fewer potential smokers start. This effect is greatest among youth and low income consumers, who are particularly sensitive to price. However, inelastic goods, such as tobacco, have fewer substitutes and a price change will not have a significant influence on the quantity demanded. In the long run, time may be the greater influece as it moves the elasticity of cigarettes to one that is more elastic, if the smoker finds he can no longer afford the $2 per pack and eventually begins to kick the

The main ethical concerns involving tobacco is well known to educated Americans; however, the ethics around the marketing aspects of tobacco, especially tobacco exposure to children, are less talked about. Some of the early marketing decisions of tobacco can be traced back to one of the most renowned and valuable cigarette brands in the world, Marlboro. Marlboro first emerged onto the tobacco scene at the beginning of the nineteenth century. They originally were a cigarette brand with a female-based target market. Marlboros were considered feminine cigarettes because they had filters, which were very unpopular for men at the time because the purpose of the filter was to protect a woman’s lipstick so that the tobacco leaves would never actually make contact with the mouth or lips. In the 1950s a scientific study came out that linked smoking to lung cancer, and that is where the ethical problems begin with tobacco companies. The ethical health concerns of ciggerrets were not the only issue. Marketing right after the release of detrimental research, companies like Marlboro became manipulative and misleading with their advertising. Advertising that also was used to target children and establish lifetime customers. Now, in the twenty-first century, the E-cigarettes and other new technology products have creates new aspects to the ethical dilemmas involving cigarettes. The ethical dilemma of smoking, health concerns, children, and technology, will all be assessed to establish the

To perform a break-even analysis, we have made the following assumptions: (a) retail margin= 60%, (b) the additional fixed cost of production per flavor, including advertising, bottling run and sundries, is $10 million and this is assumed to be an annual cost, except the bottling run, (c) a conservative estimate of percentage share of market figure is derived by multiplying the market segment percentages, as well as the age segment percentage for the category > 40 yrs. The percentage = 74% x 62% x 85% x 40% = 16%. We first determine the retail

- The Increase of the Unit Price for Tobacco Product: this recommendation is based on an intervention that consisted in the increase of tobacco product price by 20%. With that increase, the overall consumption of products derived from tobacco was decreased by 10.4%, the use among adult was reduced by 3.6%, and finally it decreased the initiation of tobacco use by young people by 8.6%.Economic evidences also suggested that the increase helped save money in healthcare cost ranging from -$0.14 to $90.02 per person in a year. In the meantime, some studies showed an increase in healthcare cost because people were living longer than expected after they quit smoking. (Community Preventative Services Task Force)

TRIAAD Research Group is a full-service marketing research company who has recently acquired a new client, Exotic Smokes Cigarette Company. This company has asked for a proposal conducting an in-depth study of consumer behavior to analyze the market for their new flavored cigarettes, using fruit and candy flavors. The marketing strategy must attract 18 to 25-year-old customers. Exotic Smokes Cigarette Company has allotted a $25 million advertising budget for the product. The purpose of this proposal is to identify successful marketing strategies for flavored cigarette.

As the leading manufacturer in the moist smokeless tobacco industry, UST Inc. has long been recognized by its ability to generate high profit using low financial leverage. With a dominant market share of 77%, the company maintains a pricing power that allows it to institute annual price increases without losing costumers. However, UST’s market share was eroded significantly in recent years by price-value competitors who enter the market with lower prices. Although UST responded to these threat by introducing new products, market share still decreased by 1.6% over past 7 years. In addition, UST is also exposed to an unfavorable legislative environment, in which the company is under advertising and product promotion

The tobacco industry is important to the economy. In 1991, worldwide tobacco sales exceeded $59.8 billion and in 1992 the industry was rated as one of the top one hundred advertisers (Pechmann and Ratneshwar, 1994). However, there are high prices to pay - socially, economically, and personally - as a result of this industry. Annual mortality figures indicate that cigarette smoking is the number one cause of preventable death in the United States. An estimated 390,000 people die each year of smoke related illnesses, which is greater than the combined mortality for cocaine, crack, AIDS, homicide, suicide, and alcohol abuse (Botvin, G., Baker, Botvin, E., Dusenbury, Cardwell, and Diaz, 1993).