Swot Analysis Of Tobacco Market Indonesia
What is the market structure of the tobacco market in Jakarta – Indonesia?
IB Extended Essay
Class: Economics
Advisor: Mr. Nicholas Billington
Word Count:
Abstract
Smoking is one of the most commonly done actions among the Indonesian community. When walking along the roads of Jakarta, one could see almost every single person with a cigarette in their hand. When looking at this phenomenon, it was brought into question on how major tobacco companies in Indonesia differentiate their products in order to gain a competitive advantage, and what is it that determines an increase in its sales. The following questions have led into a research question for my following Extended Essay: What is the market structure of
…show more content…
However, it can also show that the market share has been increasingly rapidly since 1998 for both TTCS whereas the locally owned companies have been showing a downfall in market share.
According to the data of the number of firms, the tobacco industry of Indonesia can be either considered a monopolistic competitive market or an oligopoly. The market has a few numbers of firms who have control over most of the market share in the industry.
Type of Products and their Similarity:
To a non-smoker like me, the type of cigarettes sold in shops and convenience stores do not seem much different. However, after conducting primary research, it has been figured out that there is a variety products produced by the different four tobacco companies. It is clearly shown that the firms use diverse methods of differentiation in order to advertise its products and increase its sales. A table below illustrates the popular cigarette brands in Indonesia.
Type of Brand Popular
…show more content…
The results are given in the table on the next page. From this table it was shown that no firm tried to stand out in the means of prices. For the first four weeks, the prices of the products remained all the same. However, what was remarkable was what happened after the fourth week. One the fifth week, the prices of the products made from firm Sampoerna and Djarum dropped by minimum Rp 500 to maximum Rp 1000. What was astonishing was that in the next week, the remaining two firms, Bentoel and Gudang Garam also dropped their prices by a little. Once again in the 8th week, when two firms increased the prices of their products, the other two firms followed on taking on the same action.
Through this phenomenon, it can be seen that the firms are interdependent against one another in terms of price. As firms do not want to get left behind in terms of price, they try their best to match the prices of the other firm. This again shows a characteristic of an oligopoly, suggesting the market structure of the tobacco industry in Indonesia to be an
How Does Advertising Influence The Culture Of The 1950's
794 Words | 4 PagesTheir market strategy culminated in a product being idolized by the consumer. Smoking cigarettes became commonplace in many households and the strategy shifted from attracting non-smokers to fierce brand
Essay On Discount Canadian Cigarettes
315 Words | 2 PagesCigarettes are highly addictive, manufactured, special tobacco cut fills that may or may not have a filter. They are known to be harmful to health and are habit forming. This increases dependency on cigarettes as these are consumed at casual times and to combat anxiety and stress. The United States has a large number of active smokers. For this reason, neighboring discount Canadian cigarettes have a fairly ready market in America.
Pall Malls: A Rhetorical Analysis Of Cigarette Advertising
564 Words | 3 PagesThis not being an effective way of spreading their product being combined with the major competition between tobacco companies, led Pall Mall cigarettes to take advantage of a new huge market.. In 1917, arguably one
Effects Of Slavery In Jamestown
232 Words | 1 PagesDuring 1700’s the European demand for tobacco increased. When tobacco became higher in demand it cause the demand for
Marketing Strategy: SWOT Analysis Of Blackberry
925 Words | 4 PagesBlackberry offers a line of wireless handheld devices. Products provided are smartphones, tablets, software itself and Internet Service. The company’s headquarters is in Waterloo, Ontario, Canada. BlackBerry operates offices in Europe, Latin and North America and Asia Pacific.
Swot Analysis Of Trader Joe's
1012 Words | 5 PagesTRADER JOE’S – INDUVIDUAL ASSIGNMENT 1 Part 1 – Introduction What Joe Coulombe did was opening an ordinary supermarket into the industry but the strategies he took were separating the Trader Joe’s from its rivals. What he did was to offer products targeting sophisticated costumers who were searching for good bargains. The offerings of Trader Joe’s were so unique which are not found at rival shelfs. Another crucial decision he made was to take advantage of recent environmental movements such as the rising trend of costumers searching organic foods. The company also decided on selling private labelled products with lower prices than other brands of the same product.
Persuasive Essay On Electronic Cigarettes
812 Words | 4 PagesElectronic cigarettes were first introduced into the tobacco market in 2003. However, in the last few years, electronic cigarettes have been trending, especially among high school students. According to the Surgeon General study, “In 2015, 1 in 6 high school students reported using e-cigarettes in the last month”. The promotion and production of electronic cigarettes is an issue that must be addressed because they are attracting minors who may have never been addicted to nicotine prior to the introduction of e-cigarettes in the market. Companies have branded e-cigarettes as a ‘safer’ alternative to regular cigarettes, however, it is quite possible that consumers, more specifically the youth, are not well informed of the ingredients in them.
Cigarette Smoking In Indonesia
1095 Words | 5 Pages1.1 Background Indonesia is one of the developing countries that have high levels of consumption and production of cigarette. Variation product and price cigarettes cause Indonesia has become one of the producers and consumers cigarette the largest in the world (Anies, 2006). According to the Director of the Directorate General of Customs and Excise, Frans Rupang, permitting the establishment of a cigarette production is relatively easy. Now we have at least 3,800 cigarette factories, including home-based classes. The amount was the largest in the world (http://bisniskeuangan.kompas.com accessed 25 April 2015).
Chesterfield Cigarettes Analysis
824 Words | 4 PagesChesterfield cigarettes were a brand that was commonly bought by smokers in 90s since it satisfied the people and can still exist today. This cigarette company was one of the primary sponsors of radio and TV programs, which explains why Arthur Godfrey would promote these cigarettes since he was a famous radio and television broadcaster. The Chesterfield cigarette advertisement uses bold headlines, an image of Arthur Godfrey smoking a cigarette, an image of Chesterfield cigarettes, and statistics to suggest that there is no health consequences from smoking a cigarette and that every smoker should buy the brand Chesterfield since it's the best. Chesterfield was one of the most recognized brand of cigarettes in the early and mid 20th century which were manufactured in the 90s and continue to be made to this day, but are more popular in Europe since the U.S. has stopped advertising this product for years.
Are Electronic Cigarettes Good Or Bad
405 Words | 2 PagesEver since their introduction into the market, electronic cigarettes have raised a lot of questions with the health community. Electronic cigarettes have been both credited as a potential tool for people against smoking and deemed a gateway for folks to begin smoking again. Either way, the main question is whether or not e-cigarettes are harmful to the health of those who use them. Since the introduction of electronic cigarettes, there has been a noticeable decline in the sale of traditional cigarettes.
Argumentative Essay On Why Tobacco Should Be Banned
1150 Words | 5 PagesIn Kenya, it is estimated that one of every five teenagers smoke. It has also been established that that most people start smoking at the age between 12 and 14, in addition to the fact that 1,200 tobacco smokers die every from smoking (Eaton, 2003). This translates to about 1,4389,00 deaths every year. This is a great number of preventable deaths every year. Despite being of great economic importance, tobacco has brought about much more harm than good.
Smoking Informative Speech
882 Words | 4 PagesSmoking has been a long time habit round the world. However, in the past, smoking cigarette was very popular and known to be a cool recreational drug, and was widely accepted by the community across the world. Today smoking has been less widely accepted and more restricted because of the many health risks that are linked to smoking cigarette. These days, people are well educated and more knowledgeable about the health risks of smoking.
Cigarette Life Cycle Analysis
1098 Words | 5 PagesGoal Intended application This project aims to evaluate the environmental impacts of processed tobacco and cigarette paper production starting from acquisition of raw materials leading up to the product use by the consumer. This life cycle assessment can be used by a hypothetical health organization to educate people addicted to tobacco by underlying in detail the various health and environmental effects caused by cigarette production and consumption. Reason
Importance Of Market Structure
1743 Words | 7 PagesECONOMICS ASSIGNMENT CLASSIFICATION OF MARKETS AND ITS PRACTICAL IMPORTANCE SUBMITTED BY, REVIN FRANCIS NO-b1488 MBA-A MARKET STRUCTURE Market structure is defined by economists as the characteristics of the market. It can be organizational characteristics or competitive characteristics or any other features that can best describe a goods and services market. The major characteristics that economist have focused on in describing the market structures are the nature of competition and the mode of pricing in that market. Market structures can also be described as the number of firms in the market that produce identical goods and services. The market structure has great influence on the behaviour of individuals firms in the market.
Swot Analysis Of International Trade
892 Words | 4 PagesINDIA’S INTERNATIONAL TRADE: TREND, COMPOSITION AND DIRECTION INTRODUCTION International trade is exchange of capital, goods, and services across international borders or territories. India’s major imports comprise of crude oil machinery, military products, fertilizers, chemicals, gems, antiques and artworks. Indian exports comprise mainly of engineering and textile products, precious stones, petroleum products, jewellery, sugar, steel chemicals, zinc and leather products. TRENDS
More about Swot Analysis Of Tobacco Market Indonesia
How Does Advertising Influence The Culture Of The 1950's
794 Words | 4 PagesEssay On Discount Canadian Cigarettes
315 Words | 2 PagesPall Malls: A Rhetorical Analysis Of Cigarette Advertising
564 Words | 3 PagesEffects Of Slavery In Jamestown
232 Words | 1 PagesMarketing Strategy: SWOT Analysis Of Blackberry
925 Words | 4 PagesSwot Analysis Of Trader Joe's
1012 Words | 5 PagesPersuasive Essay On Electronic Cigarettes
812 Words | 4 PagesCigarette Smoking In Indonesia
1095 Words | 5 PagesChesterfield Cigarettes Analysis
824 Words | 4 PagesAre Electronic Cigarettes Good Or Bad
405 Words | 2 PagesArgumentative Essay On Why Tobacco Should Be Banned
1150 Words | 5 PagesSmoking Informative Speech
882 Words | 4 PagesCigarette Life Cycle Analysis
1098 Words | 5 PagesImportance Of Market Structure
1743 Words | 7 PagesSwot Analysis Of International Trade
892 Words | 4 Pages