Essay on Tobacco Industry Analysis

Words: 2162
Pages: 9

The tobacco industry involves companies that sell and produce tobacco products all around the world. Tobacco products include cigarette, cigar, pipe, and chewing tobacco. Tobacco smoking is “the single largest cause of preventable death and disease in our community.” (Tobacco. 2006) With a society becoming more prosperous, education is improving and a concern for quality of life is resulting in a strong anti-smoking sentiment on all levels of society. Therefore the present and future marketing activities of the tobacco industry are heavily impacted by forces within its micro and macro environments.

In analysing the changing marketing environment for the Tobacco industry, we look at the micro and macro-environments impacting on this
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Companies are forced to rely predominantly on limited point of sale advertising.

As a deterrent government legislation requiring picture based warnings to be displayed on tobacco products have also been implemented around the world since the year 2000. This was put into affect in Australia in 2006 with warnings to cover 30% of the front and 90% of the back of each package.
Governments have implemented laws banning smoking in public places globally. There have been bans on smoking at workplaces, cafes, pubs and clubs, this is an initiative to encourage people to quit smoking and poses a serious threat to the tobacco industries marketing activities. In a study of the Australian public service, six months after the workplace smoking bans were brought into effect, it was found that moderate smokers reduced their cigarette consumption by an average of six cigarettes a day, and heavy smokers on average reduced by eight. This was a 29 and 27 percent drop in consumption. (Tobacco in Australia: Facts and Issues. 1998.) An environment such as the workplace, or nightclubs with smoking bans, can help reduce the uptake of smoking by reducing social influences. This helps existing smokers to quit, seriously affecting marketing activities for the tobacco industry in the present, and in the future.
Government tax increases on tobacco products are a most effective deterrent to