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External Business Risks: There is a high amount of risk involved in such business from the foreign as well as domestic agents. This can have a negative impact on revenues and profits of Marlboro. Government Rules and Regulations:With GST in picture stricter laws and regulations for cigarettes and tobacco products can make them even costlier. This might lead to less revenue and thereby lower profits. Growing Competition:High competition can create a negative aspect for the premium brand such as Marlboro. Threats in the SWOT Analysis of Marlboro : They can buy out the competition to move towards as the strongest brand all over the world. New Acquisitions: Marlboro is the biggest player in this industry so it has a substantial amount of cash flow and reserves as profits. This would definitely take up the revenues.
They can also invest in R&D and come up with safer and more innovative products.
New Products: They can come up with different flavours and target new customer base. Naturally, with its brand pull, the name of Marlboro will be enough to pull people towards this cigarette brand. Global Markets: Marlboro can look into new markets or emerging markets for expansion and increase in profits. Opportunities in the SWOT Analysis of Marlboro : This can inflate the prices of cigarettes in the country and thereby might lead to losses for the top brands. Future Costs: As it clearly seen in the prices of cigarettes increasing due to increase in taxes and imposing regulations on it. The top 10 brands in this industry are Marlboro, Davidoff, Parliament, Dunhill, Lucky Strike, Camel, Pall Mall, Benson & Hedges, Insignia and Goldflake. All of them have been invested into making their market share grow. Competitive Market: This industry already has too many well-established players. The government’s aim is to reduce tobacco use by 20% by 2020 and 30% by 2025.According to the Euromonitor study, cigarette sales in India contracted at a compound annual growth rate of 2.2% in terms of retail volume between 20. The government has taken steps like steep tax increases on cigarettes and efforts to kerb sales of tobacco products by making larger pictorial warnings mandatory on cigarette packs. Growth Rate: The growth rate of cigarettes as a product has been reducing year-on-year. Weaknesses in the SWOT Analysis of Marlboro : #Marlboro cigarette series
Similarly it was also a strong participant in other racing series like Nascar and motorbike racing. Association with sports – A smart tactic by Marlboro was that it was associated at length with premium sports like Formula one racing where the complete clothing of the ferarri team was done by Marlboro.The marlboro man, with his strong chiselled looks and the flavor focus is famous across the world. Initially it targeted mainly women but slowly it expanded to men and later on conquered the complete market.
Strong Marketing – Marlboro is known for its marketing communications.This provides them with a stronghold in the market and commands customer loyalty. This gives them a healthy lead in the competition. They also have a stronghold of around 44% market share in the US. Domestic Market: Marlboro cigarettes are manufactured in the US.This gives them the advantage to enjoy and command high market share thereby creating a barrier to new entrants and cutting the competition.
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The barrier to new entrants: The high brand recall of Marlboro plus the sales worldwide suggests that maximum people prefer Marlboro as their choice of a cigarette brand.It has reached the value of $84.14 billion in 2016. The graph shows a steady increase in the global brand value of Marlboro from 2010 to 2016. Increasing Global Value: Where other brands might be facing problems across the globe due to economic issues, Marlboro has been rising steadily.In a single year, more then 420 billion cigarettes of Marlboro are sold worldwide. In US itself, its market share is 44% of the total cigarette market (2015 figures). It commands a healthy market share in the US. Due to this brand valuation, it is ranked 26th in the worlds top 100 brands list. Brand Value: Marlboro has a whopping brand valuation at 21.9 billion dollars.Strengths in the SWOT Analysis of Marlboro : Threats in the SWOT Analysis of Marlboro :.Opportunities in the SWOT Analysis of Marlboro :.Weaknesses in the SWOT Analysis of Marlboro :.Strengths in the SWOT Analysis of Marlboro :.