For Only Measuring Marketing Performance

Scanned by CamScanner

T a b i c 4 2 0 13 2 0 14 V ( ï l 1i 1\ 1t ( 1 Ji 1i 1 Hn 1>

s )

T o p C i g i 1r c t ¢e 1Br B1n t l h i n I I 1= l ] S M B

1 1 l t t 1

N o r t h A m e r i c a n ¡ g a r e t t e 2 o 3 v o h u n c 2 o I 1 v ° h n w

B r a n d (S T O C K T ï C K E R. ( / n I] i l l i o n s ) (i n 1l i l l i o m )

C i s a r e zt e C Q t

M a r l b o r o (M o U S) 9 5 3 1 9 8 52 N e w p o r t ( L O U S) 2 8 8 8 2 8 t } o P a l l M a Jl RAI US 9 7 7 W 5 8 C a m e l i RA I U S 1 9 4 6 l 1) / : 8 D u M a u r i e r (B A T S L N ) 5 5 6 5 6 5 P y r a m i d ( V G R U S) 5 54 5 / i Bl W i n s t o n (R A I U S) 5 5 J 5 9 8 P l a y e r

' s (B A T S L N ) 5 0 3 / i 9 2

L & M (M O U S) 4 7 5 5 9 0

U S A G O l d (I M T L N ) 4 5 1 / i 9 3

10 U s e t h e d a t a p r e s e n t e d i n T a b l e 4 1o c r e a t e a B c G M m ix ó h c h a n d s o w n e d b y Rcynol d A n m i c u n ï n c RA . U S Cal cul ae th e n e c e s s a r y me t r e s . o p l o t e a c h h a n d o n t h c M G M m i x b c h w

S t a r Qu e s ti o n M m k P r o N c m C h Hd

C a s h C o w I o g

R e l a t i v e M1r k c t S l Ba r c 5

l U

= 1

0

: ) 1 U

«

Scanned by CamScanner

T u l i t 2 : M i Br k c t Fi l u 1r c I n p n m p n n hw i n t h c U S c w r c t t c I n d u s t r y

1 \ l 11 \ o t ï 1p \ n i t $ 1n 11 S M n r \ e \ 20 14 I Jn it M a r l e l S h a r e 1¢ U n i t s S o l Cp a n y I 1 : U . RY

A lu i n 42 4 0%

Rcy n u ld B A m r m 23 7 0

1 u r M n r d I n c 12 508

1<r i t i h A m e r i c m 5 30%

P h i l lp M t »r > r » I n t « r n n t i o n u l 4 I O%

1t n pc r i a l I a ba c c o 3 7 0%

V i c t o r W o u= 3 0 0

npnn 1 n h m c o 3o o

Ch h c r o nr p n i m 4 0 0 4

SOUr c e ß ó n r bc r g P1 OCSWOnal

4 I l o w m n n y u n it s o f c i g a r c t t e s ( i n b i l l io n s ) w e r c s o ld i n 2 0 14 by e a c h o f t h c t o p c o m p a n ie s i n t h e U S

?

l i l i i n y o L1r a n s w e r s i n t h c a p p >o p r i a t c l o c a t i o n s (T a b i c 2 )

(Se e T a b l e I f o r [ :1c [o t cl l v o l t t 1t t c 111 u ï l i t x j b r 20 14 )

5 13n s c d o n t h e n u m b e r s p r o v i d e d i n l abl c 2 w h a t i s t he t h >e ( f i r m c o n c e n t r a t i o n r a t i o fo r t h e U S

c i 吕 a >c t t c i n d u s t r y ?

T h >e c F i r m C o n c e n t r a t i o n R a t i o

6 CMc u h c t h e 1 l c r %n d a h l n d c x ó t h c

U S c i w c u C i n d u m y

1 l c > tì n d a h l I n d e x

2

Scanned by CamScanner

Scanned by CamScanner

9 C o m p a r e t h e T hr e e F ir m C o n c e n t r a t io n R a t i o a n d ( he + l e >ti n d a h l I n de x f o r t h e U s Ci gai t t c i n d u s t r y t ot h o s e o f t h e U S a i r l i n e i n d u s t r y s d o m e s t ic m a r k e t I n c l u de t hc : o l l o w i n g in y o u t a n s w e rA W h a t k i n d o f in f o t m a t i o n e a n y o u ge t ti o m t h e s e t w o m e n s u r e s ? t h e y m e a s u r e )

(i e , Ide n t i Fy a n d d e s c r i be w ha t

B W h a t k i n d o f s t a t e m e n t s c a n y o u m a k e ba s e d o n y o u r a n s w e r s fo r bo t h i n d u s t r ie s ? (M a k e s u r e y o um a k e s t a t e m e n t s f o r e a c h i n d u s t r y Y o u s ho u ld a l s o c o m pa 1E t h e t w o i n d u s t r i e s )Yo u r a n s w e r m u s t be w r i t t e n u s i n g c o rn p 1e t e s e n t e n c e s

Scanned by CamScanner

T a b l e 5 : > n l c Rt ) > > S n i t i

W c r k l } I J S C i g u r c t l c S 11l t 1By

k t Ri o n , 20 1 I

SMe s o u t N 50 0 0 0 c t ) l n m n c l h ngc

I Bl I

2 1 I 57

M id w e s t 1 j 0 52

N o r t h e a s t 9 554

i n t h e g e n e r a l po p u l a t i o n 5 7 7 99 c i g a r e t t e p u r c ht t s e s a r c m m l c

i n Bl p ° p t i l n t i o r 1 t ) r 23 1,

l ( i 5 c t ) l l ¢i t l f i 1c r t l

w e s t

(a g e 18+ )

12 T a b l e 5 c o n t a i n s d a t a o n c i g a 1 t t e c a t e g o r y s a l e s f【) r d i l fc r c n l g c o g r 1r p

h l c m c n s o : t l l c [ J S A c i.¢: l r c t (c

c o m p a n y i s i n t e r e s t e d i n d e t e n n i n i n g t h c g c o g r <1p h ic n i 【1r k e t s i n w h ic l 1 c ig n r c

t l c s n r c p c r l o t ï n i n ß t h c

be s t / w o r s t w h ic h m a r k e t i n g m e t r ic w o u l d y a u r c c u m m c n t l t o t h c c o m p t 1n y t 1

n 9l w h y ' B

(O n e s e n t e n c e l i m i t)

13 U s e t h e i nf or maüon i n T a b l e 5 t o c o n i p u t e t h c n r c M c h m y o u s u g g e s t e d i n q u e M a n 12 a b o v e I M t h hB

f o r a l l f o u r g e o g r a p h i c a r e a s P la c e y o u r a n s w e r s i n t h c h l a n k s b e l o w

So u t h =

M i d we s

N or t h e a s

W e s t -

I 4 W h a t i n t e r p r e t a t i o n s c o u l d y o u m a k i b a s e d o 11 y o u r a n s w ( r s i n q u e s t io n 1 3 ? W r i t e a p r o f e s s i o n a l

s t a t e m e n t c o m m u n i c a t i n g y o u r r e s u

l t s

Scanned by CamScanner

1 e 1 v 1t t k e ¢t qui t a / t Jo k a l a d i ü e r e n l U S i n t tu s l 1y i l l e a i r t i i r e i h d u el r y

T a b / e 3 C t u t l a i i t Ç /i t l i l / 1r u l i u l r B / / I

R P At × f i ) r t i i e ( 1i r l i n e i n t i t Bs ì Bu B1Bs t r y A ï I o f t BBe a i r l i n e c o n 1p a n i e s c o

T a b l e 3 : 2 0 14 R p M s (R e v e n u e P a s s e n g e r M i l e s ) ( U n i t s )

U S A i r l i n e I n d u s t r y D o m e s t i c

2 0 14 @3 E } S o u t h w e s t M r l i n e s 10 8

, 032 4 4

D e l t a \ i r L i n e s 9 8 , 6 62 2 8

; m e r i c a n A i r l i n e s 12 5 , 67 0 3 9

Je t B l u e A i r w a y s 3 8 , 5 83 0 I

S k v w e s t 3 1 , 4 17 6 0

A i r C a n a d a 2 8 , 1 10 4 8

\ l a s k a A i r l i n e s 2 7 , 55 9 3 0

R e p u b h c 1 1 , 5 7 4 9 0

W e s u e t A i r l i n e s 2 0 , 94 5 06

H a w a i i a n A i r l i n e s 13 , 7 7 9 6 5

A m e r i c a n E a g l e 2 2 , 04 7 4 4

S p i r i t A i r l i n e s In c 14 , 33 0 83

A l l e g i a n t A i r 7 , 7 16 6 0

H o r i z o n 2 , 7 5 5 93

C a l c u

So u r c e B l o o m b e r g P r o f e s s i o n a l

7 B a s e d o n t h e n u m b e r s p r o v i d e d i n T a b l e 3 , w ha t i s t h e t h r e e f i r m c o n c e n t r a t io n r a t i o fo r t he U S a i r l i n e

i n d u s t rr ' s d o m e s t i c m a r k e t

?

T h r e ( F i r m C o n c e n t r a t io n R a t i o

8 c a l c u la t e t h e H e

r f i n d a h l I n d e x ( H H I ) f o r t he U S a i r l i n e in d u s t r y

'

s d o m e s t i c m a r k e t

H e M n d a h l I ndex

Scanned by CamScanner

2 0 Pa r e n t c o m p a n y R e y n o l d s A m e r i c a ha s a go a l o F i n c r e a s i n g c a m e >s m a r k e t s h a r e B a s e d o n w h a t y o u

k n o w a b o u t t h e d e c o m p o s i t i o n o í m a r k e t s ha r e , w h a t s h o u ld R e y n o l d s A m e r i c a f o c u s o n t o i n c r e a s e

C a m e l ' s m a r k e t s h a r e ? w h a t s p e c if i c r e c o m m e n d a t i o n s d o y o u h a v e f o r t h e c o m p a n y ?

9

Scanned by CamScanner

Scanned by CamScanner

1 1 W h a t s u g g e s t i o n s d o y o u ha v e f o r R e y n o ld s A m e r ic a n I n c (R A I u s ) b a s e d o n t h e r e s u l t s o f y o u r B C G

M a t r i x ? E x p l a i n

6