Tobacco Industry Analysis Report

 The marketing Concept report

Tobacco Industry Analysis Report

Prepared by

Randy Nguyen  100966267

Natappat Thanjamrud 101138601

Rushanthan Nadarajah 101128026

Myra Koh U-Fyn 101032017

Teacher Name: Stephen Gannovi

Due Date: 28/7/2016

1. Executive Summary

        This report discusses the market analysis and environmental factors that has impacted the tobacco industry in Australia. This analysis report will be providing a more in-depth knowledge about the industry from the market growth and size now to the key competitors of this industry in this country. Major events are also discussed to help understand how the industry was formed and revolutionised since the introduction of tobacco in Australia in the year 1780. The market size and growth can be visibly seen from the start and is still currently growing bigger and bigger everyday as the rate of smokers are increasing daily in Australia. This has also sparked serious health concerns to the citizens of this country. The tables and charts under the Industry Analysis shows the increase of the market size as well as the size of impact of the key competitors in this industry such as the British American Tobacco Pty Limited and Philip Morris Australia Limited.

        Besides that, the environmental factors that has impacted the industry greatly are also identified and researched. Each factor will be discussed thoroughly in a knowledgable, in-depth, and synthesised way to understand the environmental factors that is currently affecting the industry. Research and evidence are also included to provide a more detailed analysis report. The four environmental factors affecting the tobacco industry in Australia includes both micro and macro perspectives which are the demographic factors, political factors, public factors, and competitor factors.

        The tobacco industry is one of the biggest industries that play a huge economic role in Australia. It is important to be able to recognise and understand the way the industry works as well as the major contributors to it. It is recommended that the citizens of this country are aware about the major role the industry plays in the economy as well as the alarming increase of smokers that has triggered major health problems. Although the industry contributes a lot to the society, the cost of it will be the health of the nation in the long run and alternative steps and precautions must be taken into action before this becomes a chronic problem as the health of the citizens will impact the economy eventually coming back in a circle.

Table of Contents

1. Executive Summary         2

1. Introduction        4

3.1               Market Size        6

1.    Market Growth        6

1. Key Competitors        7

4.Tobacco Industry Environmental Analysis        10

4.1 Demographic factors        10

4.2 Political factors        10

4.3 Public factors        11

4.4 Competitor factors        11

1. Conclusion         12

Reference List        13

1. Introduction

        Tobacco smoking had first been introduced in the early 1700s from the Indonesia origin. Since the use of it became infamously popular, an industry was started by the British and was brought over to Australia in the late 1780s.The purpose of this report is to provide a more in-depth knowledge about the tobacco industry in Australia and a report analysis has been done on this industry as well as an environmental analysis.

        Under the Industry Analysis, the market in the tobacco industry is explained from the size, growth, and it’s key competitors. Besides that, the environmental factors that have impacted this industry is also further discussed.

3. Industry Analysis

        The tobacco industry consists of people or companies who are involved in the development, preparation for sale, shipment, marketing, advertising and distribution of cigars, wholesale cigarettes and other products relating to tobacco.

        Tobacco smoking was first introduced to Australia in the early 1700s by fisherman who were visiting form Indonesia. Towards 1788, British arrays of tobacco were sent over to Australia making the use of tobacco smoking very popular and was quickly adopted by Indigenous people also as the trend grew. Tobacco was not allowed to be used by convicts but by the 1800s it was changed and seen as a necessity given to servants or prisoners as a stimulant for them to work harder (Scollo 2015). Tobacco grown at home was illegal as it was prioritised that growing crops instead was more important, though illegal harvests still grew and in 1803, it was permitted to be home grown.

        The most common form of smoking tobacco was through a pipe in the 19th century and chewing plug tobacco was seen as a minority action in Australia that only lower classed people performed. Hand rolled cigarettes were first created in the mid-1800s in England but the convenience and low-cost of bulk produced cigarettes affected how Australians would smoke tobacco for years to come. Cigarettes were seen smoked by most people in the First World War throughout which over 60% of the tobacco that was sent in rations were donations to the Allies on the Western Front (MM & Winstanley, 2015).

        Views on tobacco quickly changed as smoking started to get more popular. The perception on women smoking had been altered to suit the changes in society leading towards the year 1920. In sight of this change, smoking advertisements started to be aimed at females as it was now more socially acceptable for women to smoke. The rate of smokers started to increase rapidly with more than one quarter of Australian women being smokers alongside three quarters of male adults (Scollo, 2015). Even though health concerns began to increase as people realised the dangers of tobacco, female smoking still escalated climaxing to one third of all women being smokers by the mid-1970s.