![]() Industry players perceive this move as an attempt to strengthen the brand equity of its L&M brand, to fight for leadership with LD in the economy segment. COMPETITIVE LANDSCAPE Brand consolidation Philip Morris Singapore embarked on a brand consolidation strategy, phasing out its mid-priced Next brand by early 2018, whilst attempting to shift former smokers of Next to its economy brand L&M. ![]() Implications for major cigarette players will be a smaller consumer base of young smokers, as well the need to exercise caution when targeting this age demographic through the launch of new products, as this could invite a strong pushback from the government. Forecast period trends A decrease in the number of young adult smokers as a result of strong government anti-smoking measures is expected to contribute to a steady decline in smoking prevalence during the forecast period. ![]() Economy brands fared better than brands in other price bands, with leading economy brand LD continuing to post strong growth in 2017. ![]() Consumer down-trading leads to a focus on economy brands The average unit price of cigarettes declined marginally in 2017, as whilst most prices remained constant, consumers down-traded to economy brands, which pushed down the average unit price.
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