Marlboro Cigarettes Dominates Tobacco Markets For 35 Years
Marlboro is a cigarette brand which has dominated the tobacco market for almost 35 years. Marlboro cigarettes have been the top-selling American cigarettes since Gerald R. Ford was President. It now controls 42.8 percent of U.S. cigarette sales, which represents more than the next 13 brands combined and an all-time high. This brand is recognized in every state of the world. It is still one of most demanded cigarette brand by most of the smokers. From 1990 to 2007 the cigarette consumption has fell 31 percent.
The cigarette manufacturer Altria Group added a new version in January, that Marlboro Special Blend (up to a buck less than Marlboro reds), is going to push up this amazing brand even further ahead of its biggest cigarette rivals Camel and Newport.
In the US, on average Marlboro costs $5.50 a pack, where the 126.5 billion Marlboros shipped last year were more than four times the 31 billion Newports shipped by Lorillard (LO). Analyst Thilo Wrede rates Altria as “neutral,” and affirms that if there would be a discounting then the image of the premium brand would be damaged and this would not be a very good time, because Reynolds American’s discount Pall Mall is already gaining field. Pall Mall is the fastest-growing major brand last quarter.
Pall Mall wants 7 percent of retail sales, up 1.8 percentage points from a year earlier. By using the discounting of Special Blend smokers were very attracted to buy them. Most of the smokers like and are pleased with the discount.
Michael Szymanczyk said that they don’t put a cap on its growth. Altria CEO Michael Szymanczyk, is a very well know analyst and he affirmed those in July. The major brands will last long time if they will be managed correctly.