Tobacco Industry
- Created by: igmh
- Created on: 08-03-16 12:08
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- Tobacco Industry
- The Industry
- Controlled by a small number of TNCs
- More than 5000 billion cigarettes made per year
- 1billion adult smokers per day
- Biggest market is China accounting for 35%
- Tobacco Leaf
- Only purchase leaf from responsible and sustainable sources
- Social Responsibility in Tobacco Production Programme addresses the social and environmental issues
- Good agricultural practices
- Improving soil and water conservation
- Occupational health and safety
- Eliminating exploitative child labour
- Promoting afforestation initiatives
- Appropriate use of agrochemical
- 80% of leaf purchased is from farmers and suppliers in emerging economies
- Marketing
- Focus on existing market
- Build brand loyalty
- Win consumers away from competitor brands
- Market the brand competitively
- Market in developing countries
- e.g. India
- growing the value of their share of the existing large number of adults who choose to be tobacco consumers
- Global Drive Brands
- Streamlining the business to make it more efficient
- Very broad geographic base
- Well placed to meet the changing environment
- Adopted tight voluntary marketing standard to comply with strict laws on tobacco marketing
- Production in LEDCs
- Expand markets in LEDCs
- Source of cheaper tobacco
- Cheaper labour costs
- Danger with this is that tobacco cultivation will replace food crops
- BAT is the largest agribusiness company in Kenya, contracting over 17,000 farmers to cultivate tobacco
- Indian government has relaxed investment rules so that TNCs can now have 100% ownership of their manufacturing plants
- The Industry
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