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Paradigms of Tobacco Market Producers and the Philip Morris International's Place in Ukraine
Rakhman M. S., Rudenko A. M.

Rakhman, Mahbubur S., and Rudenko, Artem M. (2019) “Paradigms of Tobacco Market Producers and the Philip Morris International's Place in Ukraine.” Business Inform 11:164–171.
https://doi.org/10.32983/2222-4459-2019-11-164-171

Section: Industrial Economics

UDC 339.13(5).017

Abstract:
The article is aimed at scientific researching the status of production, sales and product range of tobacco products, existing terms of trade and promising tendencies in the modern world and domestic markets, as well as analyzing activities of Philip Morris International as one of the leading players in the market. The main players, volumes of their income, production capacities, employment in the industry and the impact of illegal trade are characterized. The authors analyze structure of the Philip Morris International's assortment portfolio with the share of branded products against the total consumption volume, structure of revenues and market segments in terms of consumer benefits and demand. Separately analyzed is the new generation products with potentially reduced risk, gaining increasing popularity. A study on the main indicators of British American Tobacco, Japan Tobacco and Imperial Brands in the global market is carried out: revenue and profit volumes, structure and profitability of the strategic portfolio of each company, geographical presence and segmentation of products in the market. The status and key indicators of the national tobacco market are considered: capacities and volumes of sales, major brands, price segment; negative impact on the market caused by illicit trade is allocated. A comparative analysis of the performance of international tobacco players operating in the Ukrainian market in 2018 is carried out, the place of Philip Morris International is separately analyzed. The main problems of tobacco producers and salesers both in the world and in domestic markets are indicated. The results are summed up and proposed ways to improve the sales system of Philip Morris International in the world market in general and in the market of Ukraine in particular.

Keywords: tobacco market, cigarettes, brand, mark, Philip Morris International, Ukraine, problems, sales.

Fig.: 6. Tabl.: 4. Bibl.: 9.

Rakhman Mahbubur S. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Marketing, Management and Entrepreneurship, V. N. Karazin Kharkiv National University (4 Svobody Square, Kharkіv, 61022, Ukraine)
Email: [email protected]
Rudenko Artem M. – Masters Student, V. N. Karazin Kharkiv National University (4 Svobody Square, Kharkіv, 61022, Ukraine)

List of references in article

Kalachova, H. “A shcho tam z «veipamy»: Yak v Ukraini planuiut rehuliuvaty rynok elektronnykh syharet“ [And What about the Vapes: How Ukraine is Planning to Regulate the Electronic Cigarette Market]. https://www.epravda.com.ua/publications/2019/10/10/652421/
Pryvatne Aktsionerne Tovarystvo «Filip Morris Ukraina». https://www.pmi.com/investor-relations/reports-filings
PHILIP MORRIS PRODUCTS S. A. https://www.pmi.com/investor-relations/reports-filings
Imperial Brands PLC. https://www.imperialbrandsplc.com/index.html
British American Tobacco p. l. c. https://www.bat.com/group/sites/uk__9d9kcy.nsf/vwPagesWebLive/DO9DCKV8
Japan Tobacco Inc. https://www.jt.com/about/index.html
“Infohrafika: derzhbiudzhet nedootrymav miliardy vid aktsyzu na tsyharky“ [Infographic: The State Budget has Lost Billions in Excise Duty on Cigarettes]. https://ua.news/ua/infografika-derzhbyudzhet-nedootrimav-milyardi-vid-aktsizu-na-tsigarki/
Redko, K. “Ohliad rynku tiutiunu. Biznes v ofitsiinykh tsyfrakh“ [Tobacco Market Overview. Business in Official Numbers]. https://rating.zone/ohliad-rynku-tiutiunu/
“«Filip Morris» snizhayet proizvodstvo v Ukraine iz-za skandalnoy popravki k zakonoproektu № 1049“ [Philip Morris Reduces Production in Ukraine Due to Scandalous Amendment to Bill No. 1049]. UNIAN. https://www.unian.net/economics/other/10744845-filip-morris-snizhaet-proizvodstvo-v-ukraine-iz-za-skandalnoy-popravki-k-zakonoproektu-1049

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