Project 5

Project 5 Products Industry Ashtray and cigarette industry posted a strong growth recently. The market is set to grow in the coming years. This is aided by superb sales of the cigarettes in the country (William & Ferrell, 112)  the industry account for 10% of the tobacco industry in Europe, with cigarette covering a whopping 95 per cent of the total market. The government has put in place laws and regulation that control the growth of smoking among individual below the age of 21 years. The consumer spending on cigarettes amounted to 15. 1 Billion; this is around 85 per cent of the cigarettes (Cooper, 65). The tax revenue of the company amount to 12. 3 billion dollars plus the excise duty of 2. 6 Billion. The ashtray and cigarette indicators for the company indicate that the high-income group will use the product.
Product’s Competition
The competitors for ashtray products are Altadis and Tabacalera. The economic sales of Altadis stood at 1938 million in the first quarter of last years with 50 euros as its market share. The previous year disposals affected negatively the economic sales of the company, whereas the dollar has an average of 8. 1% below the previous year, thus the organic growth for the company’s economic sales recorded a 2. 2% increase (Pampel, 75). Conversely, Tabacalera recorded an economic sale of 881 million. This was a 7. 7% increase from the sales recorded in 2012. The country provided a remarkable growth to the Division sales. The marketing share of the company stands at the market share for the company is 55 Euros as of last year (Hirschfelder, 86).
Future Trends
With a view to create an additional value to the customer, the launched company will deliver superior return and growth to its customers. The group target for Earnings before Interest and Tax will be 1 Billion at a fixed consolidation scope (Brown, 64). The group expected sales is anticipated to 5 per cent per annum, with EBITDA growth expectation of 15% annually. The trends will have a positive influence on the launch of my products.
Reference
Brown, Jane R. 1st National Spoon, and Ash Tray Show. Pueblo, Colo.: [Sangre de Cristo Arts Center], 2008. Print.
Cooper, Mary H. Tobacco industry. Washington, D. C.: CQ Press, 2004. Print.
Hirschfelder, Arlene B. Tobacco. Santa Barbara, Calif.: Greenwood, 2010. Print.
Pampel, Fred C. Tobacco industry and smoking. New York: Facts on File, 2004. Print.
William, M. P, and Ferrell O. C. Marketing. Boston: Houghton Mifflin Co., 2008. Print.