...1. In the Central Hudson Case, Judge Powell summarized that this case presents the question whether a regulation of the Public Service Commission of the State of New York violates the First and Fourteenth Amendments because it completely bans promotional advertising by an electrical utility, 447 U.S. 557, which is closely related to the tobacco cases. Several opinions presented by Judge Powell can apply in these cases. First, in applying the First Amendment to this area, Judge Powell rejected the “highly paternalistic” view that government has complete power to suppress or regulate commercial speech. Second, the Judge also believed that if the communication is neither misleading nor related to unlawful activity, the government’s power is more restricted. The government agency must assert a substantial interest to be achieved by restrictions on commercial speech. Moreover, the regulatory technique must be in proportion to that interest. Furthermore, the Central Hudson case set the standards as for whether a governmental restriction on speech is constitutionally admissible. It also provided several tests as for whether the restriction is constitutionally admissible. The Central Hudson case, as a key precedent, also developed a four-part analysis for similar cases. a) Determine whether the expression is protected by the First Amendment. For commercial speech to come within that provision, it at least must concern lawful activity and not be misleading. b) Examine whether the...
Words: 2777 - Pages: 12
...The Case 2 Available Statistics 3 Political Spending 3 Prior Litigation 3 The Strategy 4 Liggett Breaks Away 4 First Round of Talks 5 First Round Negotiations 6 Problem Assessment after First Round of Negotiations 6 Solutions 6 Second Round of Talks 7 Second Round Negotiations 7 Problems during the Second Round of Negotiations 7 Third Round of Talks 8 Resolution of Issues 8 The Settlement 8 Key Players Prosecution 1. Mike Moore, Attorney General Mississippi 2. Bob Butterworth, Attorney General Florida 3. Dickie Scruggs, Plaintiff Lawyer 4. Scott Harshbarger, Attorney General Massachusetts Defense 1. Steven Goldstone, CEO RJR Nabiasco 2. Geoffrey Bible, CEO Philip Morris 3. Martin Broughton, Head of B. A. T. (parent company of Brown and Williamson) The Case The negotiation took place between the five largest tobacco companies of the United States, namely, Philip Morris, R. J. Reynolds, Brown and Williamson, U. S. Tobacco and Lorillard, and the Attorneys General of several states of America, where the later accused the former of burdening the taxpayer with costs of tobacco-related illnesses through the Medicaid Program, and for breaking the law by selling their product to children under the age of 18. The prosecution wished for the defense to: 1. Accept the responsibility of the illnesses and deaths caused due to the use of their product. 2. Pay a heavy compensation for the Medicaid costs of tobacco-related...
Words: 2252 - Pages: 10
...Case Analysis of ban of tobacco advertising in India Here is the brief background information. On Feb 6, 2001 Indian government announced they were going to enforce a ban regarding tobacco advertising in their country. Banning included barring tobacco industries from advertising their products, sponsoring sport or cultural events. The ban was aimed to discourage young mind in India to take part in smoking. The ban, however, heated a debate between the supporters of tobacco companies and the opposition parties. In this paper, I will summarize the arguments that support the ban on tobacco advertising in India and the arguments that oppose the ban. In addition, I will discuss the conflict of interest issue pertaining to Indian government as well as I will describe my opinion on what governments should do in regards to tobacco advertising. 1. Summarize the arguments in favor of the ban on tobacco advertising in India To begin with, the advocates of the ban argued that this action of government was nothing unconstitutional. The government, in fact, has the right to interfere since their main concern was their citizen well-being. They gave this example. We know that guns are bad, so every nation has banned the public advertisement against guns so why tobacco should has a special privilege? Secondly, they used statistic from World Health Organization (WHO). They pointed out that over 3 million were killed by consuming tobacco products in 1990 and the death rate increased to 4.023...
Words: 927 - Pages: 4
...TITLE PAGE PRODUCT DIFFERENTIATION AND ITS CONSEQUENCES ON THE MARKETING OF CONSUMER GOODS IN NIGERIA, (A CASE STUDY OF NIGERIAN TOBACCO COMPANY PLC. KANO) BY DAVID GARGADI (PGS/SMS/04/2840 BEING A RESEARCH WORK SUBMITTED TO THE DEPARTMENT OF BUSINESS ADMINISTRATION, BAYERO UNIVERSITY, KANO AS PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION (MBA) JULY, 2007 APPROVAL SHEET The Dean School of Post Graduate Studies Bayero University, Kano Kano SUBMISSION OF RESEARCH PROJECT This is to certify that DAVID GARAGADI (PGS/SMS/05/3737) have successfully completed this research work on the subject; The Consequences of product differentiation on the marketing of consumer goods in Nigeria, (A case study of Nigeria tobacco company plc.Kano) under my supervision. -------------------------------------------- Dr. Ado K/Mata ----------------------------------------------- Prof. A.R Mohammed (The Dean School of Post Graduate Studies) CERTIFICATION I certify that this dissertation entitled: THE CONSEQUENCES OF PRODUCT DIFFERENTIATION IN THE MARKETING OF CONSUMER GOODS IN NIGERIA (A CASE STUDY OF NIGERIAN TOBACCO COMPANY PLC, KANO). Written by: DAVID GARGADI (PGS/SMS/04/3737) meets the requirement governing the award of Master...
Words: 8416 - Pages: 34
...Tobacco Taxation 1 Tobacco taxation is a hot topic and all 50 state governments have enacted taxes on cigarettes, and many have raised their taxes several times. Taxes on cigarettes are a way governments can achieve two social objectives; the first objective is to reduce the number of citizens who smoke. The government issuing the cigarette tax hopes that the rise in the cost of a pack of cigarettes will persuade people to quit smoking. The second objective is to raise government revenue. A cigarette tax, like any other tax, increases the amount of revenue governments can spend on social programs. Where there’s smoke, there’s taxes — especially for New Yorkers. In a 2010 budget move officials say will generate $440 million in revenue, the state legislature passed a bill that gave New York the highest cigarette tax in the country. On July 1, 2011 every pack sold in the state cost an extra $1.60, raising the total state tax to $4.35, pushing the average cost of a pack up to $9.20. For New York City residents, the cost of a pack will now come out to close to $11 — a $2 rise from just over a year ago. The $440 million in revenue will benefit health care programs, AIDS drugs subsidies, tobacco cessation programs and $71.6 million will go to the state cancer research center in Buffalo. Supporters also applaud the health benefits, saying it will reduce the number of smokers by tens of thousands of people. Tobacco consumption is the leading cause of preventable death in many...
Words: 1014 - Pages: 5
...Ethical Obligation of Tobacco Industry towards Consumers Ethics play very important and crucial role in the making an industry a failure or success. Some industries are now trying to create some ethical laws for their further practices. This is very important for industries which sell consumer products that are harmful for the consumers for example Tobacco industry. Like any other industry, Tobacco Industry also has an ethical obligation to its consumers. It is well known that satisfaction of the consumer is the essence of every industry. But besides profitability, every industry has an obligation towards the health and well being of the consumers and is also obliged to delivering quality products and services in that adhere to international code of conducts. In most cases, the production, processing and packaging is at the discretion of the producer in the industry. In many cases, there is information gap between the producer and the consumer thus exposing the latter to the unilateral decision making by producers in the market (Fox, 2015). In a free-economy, forces of demand and supply determines the prices of products and services, industries has to capitalize on strategies like quality of products and services to survive and outsmart competition and increase their competitive advantage in the market. The platform of Tobacco industry is monopolistic platform. Only basis for the success of any company is the customer satisfaction in the industry. Apart from differentiation...
Words: 591 - Pages: 3
...Abstract Potassium (K) and nitrogen (N) are two major nutrients in crop production. A deficiency of either one or both of these nutrients causes yield loss. In the specific case of tobacco production, both nutrients play a key role in controlling important quality parameters such as leaf color, texture, hygroscopic properties, combustibility, sugar and alkaloid contents. Monitoring N applications thoroughly for form, quantity, and timing of application is a prerequisite in modern agriculture. As in other field crops, balanced N-K fertilization enhances tobacco growth and improves the uptake of both nutrients, which in turn reduces nitrate losses during and after the cropping season. The importance of K on mineral nutrition in tobacco production in terms of yield and quality is presented. The role of K in determining the chemical composition of tobacco leaf is now well established. K content of dry matter must reach 2 to 2.5 percent and chloride (Cl) content must remain below 1 to 1.5 percent in order to ensure good maturation, perfect combustibility and a good taste. The paper reports several pot and field experiments carried out in France, China and Cuba, in which various factors affecting yield and quality of the tobacco crop were studied including dose, source, and timing of potash applications. The effect of the combination of various potash forms (potassium sulphate, potassium chloride, potassium nitrate, potassium bicarbonate) with two N sources (nitrate...
Words: 4449 - Pages: 18
...shorelines. Before long, Bocalan built a fortune and a name in an industry that grew in Tanza, aided in part by the presence of Sangley Point, a former American base where blue-seal cigarettes were sold and taken out from its commissary. He eventually traded directly with Borneo, cut the southern connection, and became a millionaire. Decades later, the Tanza cottage industry has evolved into a lucrative national, and even a global, industry. The southern backdoor, where traders of smuggled cigarettes used to taunt law enforcers, has become an outmoded entry point. Smugglers have become more brazen, preferring direct payoffs to willing takers. Big Business The Philippines has become a favorite transshipment point for the smuggling of tobacco to countries where governments are charging exorbitant taxes to curb domestic production and consumption. Among Southeast Asian countries, the Philippines imposed the heaviest tax on cigarettes from 1989 to 1995, according to latest available figures...
Words: 2046 - Pages: 9
...ECONOMICS ASSIGNMENT Topic :TAXATION OF TOBACCO IN INDIA By- Group 3 Q1.Interpret table 3.1 and 3.5.The team is asked to evaluate the future prospects of ITC's tobacco products in the rural areas based on the numbers in these two tables. Write a brief report explaining ITC's rural market potential based on the numbers in the case According to the table 3.1, there is a minimal increase in the excise duty of unfiltered cigarettes in the years 2006-07 and 2007-08 and large increase can be seen in the year 2008-09. In the case of filtered cigarette, there has been a minimal increase or rather we can say that excise duty has been constant for 2007-08 and 2008-09. In the case of bidis, the excise duty is constant for 2006-07 and 2007-08 while decreases in 2008-09. So we can make out from this given table that by increasing the cost of unfiltered cigarette the government wants people to shift from unfiltered to filtered cigarette which will eventually lead to betterment of public health. Secondly, it also helps the Government in the generation of revenue. According to table 3.5, there has been an increase in consumption of bidis and less in cigarettes from 2000-01 to 2005-06. While due to the increase in price of bidis in the year 2006-07, the cigarette consumption of brands likeGold flake, Navy cut, Gold flake small and Wills flake has increased. As the price is increased there would be less consumption of cigarette while on the other side the revenue generated would still...
Words: 1466 - Pages: 6
...In this case there are 2 problems the first is related to the Social Responsibility and the second with the growth of the company. Mexico is the first country in the world with obesity problems. The growth rates of obesity have increased from 10% to 20% in children, 30% to 40% in adolescents and 60% to 70% in adults. One cause of the increase in obesity in children is the change in eating habits, which include a high intake of calories, refined carbohydrates and sodas. While Grupo Bimbo has a set of values that focus on the person and maintains an active agenda of social responsibility among which include caring for the environment and supporting the community, the nature of most products Bimbo are among those that contribute significantly to obesity, especially in children way. This places Bimbo in a difficult situation, because on one hand the Group has a strategy of growth with social responsibility, but the effect on the health of the population through the consumption of their products placed in a contradiction Bimbo The second problem that arises is to continue its growth in new markets such as China. This represents a challenge because although Daiel Servitje's have no doubt that the internationalization of Bimbo is part of its strategic growth, this can not be at the cost of sacrificing the values and principles implemented by their predecessors. How could Bimbo resolve this contradiction without compromising growth of the company? Solution to Case Grupo...
Words: 845 - Pages: 4
...consumer in regards to legalizing medical marijuana. I support the consumer because I feel there are cases where medical marijuana could make living in society possible for people who are dealing chronic pain, cancer patients and in some cases paraplegic or quadriplegic patients would benefit from the ability to use medical marijuana. According to a Bloomberg Business report the legalization of marijuana and this debate that surrounds this issue much resembles that of 1920’s Prohibition of Alcohol. So to the question of capitalism’s influence on corporate America, let’s talk numbers 25 million-60 million in illegal gains. So if marijuana becomes legal, the tax on marijuana cigarette is about $5.00 per joint with a total tax to be made for a year estimated at $45 billion - $110 billion a year. I don’t believe it is possible for a company to cater to both the interest of the company and that of the consumer conjointly. I believe that the company will always put there interest first especially if it will affect the bottom line. For example let’s look at what happened to cigarettes over the last decade. Originally tobacco when the demand wasn’t beyond what the tobacco companies could produce. Tobacco cigarette in its simplest purest form wasn’t harmful and did not kill people. What’s deadly is the chemicals that are used to speed up the production of these cigarettes. Once the tobacco companies saw the potential money maker the cigarette could be I believe the research into faster ways...
Words: 434 - Pages: 2
...The Suing of Tobacco Companies Try to imagine six million people. Six million people are equivalent to the number of Jewish people who died in the holocaust. Six million people are equivalent to five times the number of Americans who have died in all the wars combined. As a society this number is viewed as outrageous and unacceptable, yet every single year six million people die from tobacco related illnesses and for some reason this number is not seen as ridiculous when these deaths are attributed to tobacco related illnesses as when they are due to war and genocide. How can any substance that produces such mass death ever be distributed and produced legally? Well, many have begun to think the same way and have embarked on the long and arduous journey to attempt to sue tobacco distributers. But these large companies have fought back with a vengeance, and so the debate has arisen whether or not people should be able to sue big tobacco companies. People not only have the right to sue, but should sue tobacco companies for a multitude of lawless acts, for pain and suffrage, and as well as for the economic losses many have suffered. The first thing that comes to my mind when I think of big tobacco companies is my beloved uncle. He tragically passed away three years ago from gun disease. My uncle Anthony had been an avid chewer since he was 16 years old. At a very early age he had become a slave to his addiction to chewing tobacco, this addiction ended his life. With the passing...
Words: 3785 - Pages: 16
...frequent use and an increase in price only slightly alters the change in quantity demanded. Similarly the number of substitutes available tend to define the elasticity of demand and the proportion of income spent by a person on purchasing the product. The inelastic demand curve is as follows: (Economics13 n.d.) In case of cigarettes, the price elasticity measured for different countries by WHO in their study was less than -1 or inelastic and the addictive nature of cigarettes being cited as the main reason for it. The study however does point out that if the prices are increased for a longer period, the demand might in fact be elastic as people would be impacted more by the increase in prices. The research further suggested that the demand elasticity varies amongst poor and rich countries along with the population demographics. (Perucic, 2012) In general when the prices are increased or taxes are raised on inelastic products, the beneficiary is often the producer or the government as the tax burden would be on the consumers. A tax on cigarettes would mean the consumers bearing a greater tax incidence which would in fact discourage them to spend more on tobacco products. (Tax-inelastic-demand n.d.) As seen in the graph above, a tax imposition on cigarettes would shift the supply curve on the left with the equilibrium quantity reducing from Q to Q 1. The inelastic demand would mean that the tax burden is borne by the consumers whereas the producers bear a small fraction...
Words: 1855 - Pages: 8
...smokeless tobacco, controlling 77% of the market. Smokeless tobacco products consist of snuff (dry and moist) and chewing tobacco (loose leaf, plug and twist/roll) categories. UST was a market leader of the snuff product category, innovating with new product forms and flavors over the years. UST has also been a profitable company, boosting its shareholders’ earnings by undertaking measures such as increasing the cost of its products steadily with time. UST also benefited from the steady increase in market demand for smokeless tobacco given the rising restrictions on cigarette second hand smoke. UST was still criticized at the time for its tardiness with new product introductions and losing its market share to new and smaller competitors. In 1997, instead of cutting product prices to compete, UST introduced new line of lower priced products such as Copenhagen Long Cut and Rooster. UST also renewed its focus on the marketing campaigns, launching promotions and increasing couponing. For years, tobacco industry had been embattled with health related lawsuits. Majority of these litigations were for cigarette companies in comparison to smokeless tobacco industry. Still, UST had seven pending health related lawsuits. UST has historically been one of the most profitable companies in corporate America. Even though S&P rated the debt of many tobacco companies as investment grade, its long term outlook of the tobacco industry was unclear given the rising restrictions on tobacco products...
Words: 1000 - Pages: 4
...still the number one contributor. In 1963, Herbert A. Gilbert was not aware of these kinds of statistics, however, he was on the brink of an invention that would revolutionize the way we smoke cigarettes almost fifty years later. The invention of the Electronic Cigarette [also known as the e-cig] was patented in 1963 by Herbert A. Gilbert, “The present invention relates to a smokeless non-tobacco cigarette and has for an object to provide a safe and harmless means for and method of smoking by replacing burning tobacco and paper with heated, moist, flavored air; or by inhaling warm medication into the lungs in case of a respiratory ailment under direction of a physician.” (Electronic Cigarettes, 2009) Unfortunately for Herbert, in the early 1960s cigarette smoking was not yet the threat it has become today. People just didn’t see a need to stop smoking. During the 1950s and 1960s, the Tobacco Company had always marketed towards women; smoking was a sexy thing. As one can see from the photograph, the young lady is beautiful, slender and happy. Throughout the middle of the 1960s big Tobacco Company’s began targeting the men and using advertisements such as cowboys and men with tattoos. This was to ensure your confidence while smoking that cigarette; sadly, this was just how smoking had become perceived. Subsequently, Herbert’s design was not tolerated nor put into distribution, and years would go by without much buzz regarding the Herbert e-cig. Naturally, time continued on...
Words: 1588 - Pages: 7
