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Emerging Markets And The Middle East Essay

Decent Essays

• Emerging markets in Africa and the Middle East are expected to see an increase in smokers over the next ten years – Weight 7%
Most regional markets are expected to see a decrease in the percentage of people who smoke. These percentage losses in some parts of the world will be offset by an overall growth in total population. Some specific regions, like Africa and the Middle East, are expected to increase in both total population and the percentage of the population who smokes. These regions offer the tobacco product firms the chance to attract new consumers and produce revenue in growing markets, rather simply retaining existing smokers, or capturing market share from competitors. The weight of 7% reflects in importance for the top tier in finding opportunities to attract new consumers.

• Potential for expansion of tobacco agriculture to drive down costs – Weight 3%
Tobacco agriculture is expanding across the globe. Much of this expansion is in the developing world where, in general, prices and incomes are lower when compared to other parts of the globe. The opportunity to find cheaper sources of agriculture products and other raw ingredients could help tobacco product firms reduce, or at least maintain, existing expenditures. While this is an interesting opportunity, the relatively low weight for this factor is reflective of the top tier’s strong existing profit margins.

• New markets that lack awareness of the firms’ leading brands – Weight 3%
The top tier firms are all

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