BA 129

Management Services
Outline - Cigarette Industry
Esler, John Paul V. August 23, 2018
Go, Rodwick Matthew T. Erlinda S. Echanis
Pelegrino, Joshua Philippe E.

Outline:
I. Industry Overview
II. Market Structure
A. Key Players
1. Per Company Sales Performance
a) Philip Morris Fortune Tobacco(PMFTC)
b) Japan Tobacco Incorporated
2. Per Brand
a) Marlboro
b) Fortune
c) Winston
d) Hope
e) Jackpot
f) Mighty
g) Camel
B. Oligopoly
1. Mergers and Acquisitions
a) Philip Morris and Fortune Tobacco
b) Japan Tobacco and Mighty Corporation
2. Exit of British American Tobacco
C. Consumer Demographics
1. Age group
2. Socioeconomic status
III. Recent Developments in the Philippines
A. Government Regulations
1. RA 10963 (TRAIN Law)
a) Progression of Tax Impositions on Cigarettes (SB 3299 Sin Tax
Bill of 2013)
b) Section 145 (b) imposes additional tax charges for cigarettes
c) Unitary Taxation Defined
d) Impact on Overall Demand
e) Impact on Brand Preference
2. Executive Order 26(Nationwide ban on smoking in public areas)
a) Designated Smoking Areas
b) Impact on Overall Demand
B. Depreciating Peso
 C. Cigarette Substitutes
a) E-Cigarette
b) Vape
IV. Supply Chain Management
A. Overview
B. Distribution Channels
C. Importation
D. Exportation
E. Core Regions in the Philippines
1. Tobacco Plantation
2. Buying Centers
3. Factories
V. Methodology
A. Review of Related Studies
B. Survey
C. Personal Interviews (primary sources)
VI. Industry Forecast/Outlook