Lights Cigarettes in the USA

Executive Summary

The Development of the Lights Segment

In the late '60s and early 70s, the cigarette industry faced an increasingly hostile environment and an imminent threat to downsize the business as a result of the anti-smoking activities, as well as restrictions and regulations already enacted or in the process to be submitted. The ban to electronic media for cigarette advertising, in addition to the publication of health warning and deliveries on packs and advertising, would become effective in the early '70s. A proposal to ban sales of cigarettes with tar delivery above 15 mg. was already moving forward. Anti-smoking educational programs, as well as publications linking cancer and heart diseases to smoking, had already sensitized consumers. The trend in market indexes like smoking incidence, per capita consumption, SWAT (sake-weighted average tar) and low tar cigarettes trial evidenced the consumer's desire to change their cigarette consumption patterns. The low adoption rate evidenced the consumers' dissatisfaction with the current low tar brands.

These Environmental Factors Created an Opportunity To Develop the Lights Segment Because:

\u25a0 Consumers were demanding low tar cigarettes.

\u25a0 Consumers were not satisfied with the current brands.

\u25a0 There was not a dominant brand in the segment.

\u25a0 Proposed regulation, if enacted, would favour low tar cigarettes and hurt Full Flavour ones.

And this is the opportunity that Philip Morris undertook by launching Marlboro Lights, a 14 mg. line extension off Philip Morris’s successful Marlboro Red.

Marlboro Lights initial success (Marlboro Lights gained 0.1% market share in 1971 (the year it was tested and rolled out nationally) and 0.5% market share the following year) prompted a brand launch dynamic in the Lights segment (the number of perceived Lights brands grew from 5% by 1970 to 14% by 1975.28% by 1977 and 41% by 1981) from the other manufacturers. They immediately launched Milds or Lights versions of their Full Flavour brands as well as freestanding Lights brands.

As manufacturers diverted their promotional support (advertising and trade marketing budgets) mainly to Lights brands and consumers found those brands acceptable and relevant, the Lights segment developed. Lights sales volume grew at an average compound rate of 10% between 1970 and 1973, and 30% between 1975 and 1980. The top brands within the segment were Marlboro Lights, Merit, Winston Lights and Salem. Their volume accounted for 50% of the segment by 1976.

Other parts about the Lights Cigarettes in the USA see other pages our online tobacco shop.

Buy cheap Lights Cigarettes in our online store!