Marketing in a Global Market Term Paper

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It is estimated that 590 billion cigarettes are smoke per year in the MENA region and growing by 2% annually, thus making this area one of the few growing markets for tobacco in the world (MENA pp).

Turkey is the largest exporter of oriental and semi-oriental leaf in the world, and although there was a rise in production in 2004 that stabilized the country's tobacco economy, the European Union plans for reforming tobacco subsidies for 2006 and the potential sale of Tekel, the tobacco monopoly, may have a destabilizing effect and lead to a rise in pricing (MENA pp).

Although Dubek has dominated the cigarette market in Israel and has a distribution network of 12,000 retailers nationwide, its share of cigarette sales has been affected by a rise in popularity of foreign brands (MENA pp). In 2003, Philip Morris became the leading player in sales of tobacco with its volume share rising to 45%, compared to Dubek's 39% (MENA pp). In fact Marlboro has overtaken Dubek's Time brand to become the leading brand, accounting for more than 11% of cigarette volume sales in 2003 (MENA pp). There are other multinational players that are steadily penetrating the market, as well as new players such as Armenian Grand Tobacco and Jerusalem Cigarette Company (MENA pp). Moreover, in 2004, BAT stopped using the services of TLS Tobacco Import Marketing and Distribution, and is now conducting distribution of its products without using intermediaries (MENA pp).

Saudi Arabia has no domestic manufacturers, thus the Saudi market is dominated by foreign imports (MENA pp). Philip Morris and BAT are particularly powerful, while MTM of Yemen and the Philippino company, Fortune Tobacco, also have a strong presence (MENA pp). Unlike other countries in the region, low tar brands (10 mg is the legal limit set by GCC regulations) and the ultra low tar are very popular (MENA pp). Philip Morris, with 20.
6% of the market share, has the top two leading brands in the country, Marlboro and L&M, although BAT, with 9.9% of market share, has three of the top five sellers (MENA pp). Direct advertising of tobacco products is prohibited in Saudi Arabia, however, foreign publications continue to carry cigarette advertising, and cigarettes remain widely available in supermarkets and shops where they are typically prominently displayed (MENA pp).

In June 2005, the world's top mobile phone manufacturers competed for a slice of the growing Asian market with near-simultaneous global launches at a Singapore trade show (Yeoh pp). Mobile phone makers Nokia Corp., Motorola Inc., LG Electronics and Sony Ericsson, all unveiled new models in conjunction with the CommunicAsia and BroadcastAsia 2005 exhibition in Singapore (Yeoh pp). New Jersey-based Lucent Technologies Inc. announced that it had clinched deals to develop network technology for Inner Mongolia, Tibet and Vietnam (Yeoh pp). The majority of exhibitors said they were looking toward China and India, the world's two most populous countries that were also prepping for the next-generation mobile phone and broadcast technology (Yeoh pp).

Whether it is rubber ducks, cell phones, or tobacco, there is opportunity on the global stage for marketing any product. The last few decades has seen tremendous change in global marketing. The Internet has essentially erased borders and allowed companies to expand internationally, whether large scale or small scale. Global marketing is essential for today's businesses.

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