Tobacco Manufacturing US Market Research â€Myassignmenthelp.Com

Question: Discuss About The Tobacco Manufacturing US Market Research? Answer: Introduction In United States drinking and Smoking is causing serious trouble for people. The statistics of deaths from smoking is even greater than the demand that from alcohol. There is an inter relation between alcohol consumption and smoking. Beer and cigarette are considered as complement goods. People prefer to smoke while drinking beer. Therefore, any disturbance in either of the market affects the other market as well. Finally, the incidence of cigarette ban and reduction of the crime rate in Isle of Man has been evaluated. Beer, Wine and Cigarette Market In market for alcoholic beverages, Beer and Wine are counted as two important names. Wine is a drink that can be served to a large variety of occasion. United States is recorded as producing fourth largest volume of alcoholic beverages in the global market. Dominating brands in the Wine market are Bronco Wine Company, Treasury Wine Estates, the Wine Group E.J. Gallo Wine Company, and Constellation Brands. The numbers of Wine retailers are forecasted to increase by 2020 (statista.com, 2017). Average wine consumption has increased rapidly. Most buyer in the wine market are influenced by wine color. Beer is another widely consumed alcoholic beverages. The proportion of alcohol is least in beer. Breweries are categorized in two groups- micro-breweries and macro-breweries. The classification is made based on volume of production and size. The share of craft brew companies are raising continuously (cbsnews.com, 2017). Consumers buying pattern in the beer market is greatly influenced by outer packaging. In the tobacco market Cigarette is the widely consumed items. All groups of people- teenagers, young adults, and old adults consume cigarette. In the cigarette market, different brands of cigarettes are available (ibisworld.com, 2017). There are often foreign brand in increasing competition in the domestic market. There is a dependency between the consumption of beer and wine and that of cigarette. Cigarette is consumed together with wine or beer. People have a high tendency of smoking at times of drinking beer or wine. Hence, increase or decrease in prices of beer and wine affects Cigarette demand. The cross price elasticity between beer and cigarette is positive. This means a rise in price of beer leads to a reduced demand for cigarette for those who prefers cigarette at time of drinking beer. As suggested in the report smoking is more likely to be related with beer consumption than that of Wine (washingtonpost.com, 2017). Impact of health warnings on cigarette packaging on beer consumption Figure 1: effect on beer market for health warnings on cigarette packaging (Source: As created by the Author) There is a complementary relation between the consumption of beer and cigarette. People smoke more when they drink beer or other alcoholic beverages. In case of complementary goods demand of the two goods are dependent on each other. Health warnings on cigarette packaging spread awareness for injurious effect of smoking (Young?Wolff et al, 2014). As a result, demand for cigarette might decreases. DD shows the initial demand curve for beer. Those who drink beer at times of smoking demand beer less with a reduced demand for cigarette. In the beer market, the demand curve for beer will shift inward direction. The new demand curve is D1D1. Equilibrium in the beer market shifts from earlier E to e. If this happens, then price in the beer market will fall from P* to P1 and the quantity demanded will decrease from Q* to Q1. Therefore, heath warning on cigarette packaging affects beer market through its complementary consumption relation. Impact of yeast shortage on Cigarette purchase Figure 2: Impact of yeast shortage on Cigarette demand (Source: as created by the Author) Yeast is a important ingredient for making alcoholic beverages. Shortage of yeast will hamper the production of beer and lead to a shortage in the beer market. The shortage of supply in the beer market leads to a price increase in the beer market and hence a reduced demand for beer. When demand for beer reduces, the demand for its complementary goods cigarette decreases (Beard et al, 2017). Demand curve for cigarette shift from D1D1 to D2D2. The decreased demand for cigarette will lead to a decrease in both price and quantity purchase in the cigarette market. Isle of Man cigarette ban In order to reduce Crime rate in Isle of Man, a new strategy has been adapted. The strategy is to force the prisoners to give up smoking habit once they entered in the jail. Cigarette is an addictive item. The demand for addictive items is inelastic in nature. People do not want to sacrifice their addiction at any cost (van den Berg et al., 2013). The fear of being imprisoned is not enough for reducing the incidence of crime. Forcing criminals to give up smoking has made them thinking repeatedly before involving in criminal offenses like fighting, stealing or drug trading. It is the only non- smoking prison in Europe. Neither the guards nor the inmates are allowed for smoking in the premises, even not outside the building (dailymail.co.uk, 2017). With such a strict regulation, crime rate fell to 14% since opening of the jail. Prisoners coming to the jail have no other choice but to leave their addiction of cigarette. To help them to cope up with the situation counseling and nicotine patches are offered. With this, crime rates are declined largely. People caught for car stealing, number of assaults has recorded a decline. Giving up smoking is something that they really feared. It is working beyond the fear of punishment. Conclusion The paper analyzes alcohol and tobacco market in United States. Wine, beer and spirits are three important alcoholic beverages in US market. Consumption and sales of both Wine and beer is leading to an increase in death occurring from smoking and alcohol consumption. Beer and cigarette are complementary goods. While there is a health warning on cigarette consumption then demand for beer is likely to be reduced. Shortage of yeast crates supply shortage in beer market ad affects the purchase the cigarettes adversely. Strategy of smoking ban to reduce crime in Isle of Man has appeared as an effective way of reducing crime rates. References Beard, E., West, R., Michie, S., Brown, J. (2017). Association between smoking and alcohol?related behaviours: A time?series analysis of population trends in England.Addiction. Cigarette Tobacco Manufacturing in the US Market Research | IBISWorld. (2017).Ibisworld.com. Retrieved 14 September 2017, from https://www.ibisworld.com/industry-trends/market-research-reports/manufacturing/beverage-tobacco-product/cigarette-tobacco-manufacturing.html Drop in crime on Isle of Man attributed to Europe's only non-smoking prison. (2017).Mail Online. Retrieved 14 September 2017, from https://www.dailymail.co.uk/news/article-1239209/Drop-crime-Isle-Man-attributed-Europes-non-smoking-prison.html Facts, U. (2017).Topic: Wine Market.www.statista.com. Retrieved 14 September 2017, from https://www.statista.com/topics/1541/wine-market/ U.S. smoking rate does something it hasn't in years. (2017).Cbsnews.com. Retrieved 14 September 2017, from https://www.cbsnews.com/news/us-smoking-rate-does-something-it-hasnt-in-years/ van den Berg, J. J., Bock, B., Roberts, M. B., Stein, L. A., Friedmann, P. D., Martin, S. A., Clarke, J. G. (2013). Cigarette smoking as an expression of independence and freedom among inmates in a tobacco-free prison in the United States.nicotine tobacco research,16(2), 238-242. Want people to drink less? Make their cigarettes more expensive. (2017).Washington Post. Retrieved 14 September 2017, from https://www.washingtonpost.com/news/wonk/wp/2014/10/27/want-people-to-drink-less-make-their-cigarettes-more-expensive/?utm_term=.6a90eaa33261 Young?Wolff, K. C., Kasza, K. A., Hyland, A. J., McKee, S. A. (2014). Increased cigarette tax is associated with reductions in alcohol consumption in a longitudinal US sample.Alcoholism: Clinical and Experimental Research,38(1), 241-248.