trends in market share of leading …...for peer review only 4 introduction cigarettes remain one of...
TRANSCRIPT
![Page 1: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/1.jpg)
For peer review only
TRENDS IN MARKET SHARE OF LEADING CIGARETTE
BRANDS: NATIONAL SURVEY OF DRUG USE AND HEALTH
2002-2013
Journal: BMJ Open
Manuscript ID: bmjopen-2015-008813
Article Type: Research
Date Submitted by the Author: 18-May-2015
Complete List of Authors: Sharma, Anushree; Roswell Park Cancer Institute, Health Behavior Fix, Brian; Roswell Park Cancer Institute, Health Behavior Delnevo, Cristine; Rutgers School of Public Health,
Cummings, Michael; Medical University of South Carolina, Psychiatry & Behavioral Sciences O'Connor, Richard; Roswell Park Cancer Institute, Dept. of Health Behavior
<b>Primary Subject Heading</b>:
Smoking and tobacco
Secondary Subject Heading: Public health, Epidemiology
Keywords: PUBLIC HEALTH, Substance misuse < PSYCHIATRY, EPIDEMIOLOGY
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open on July 23, 2020 by guest. P
rotected by copyright.http://bm
jopen.bmj.com
/B
MJ O
pen: first published as 10.1136/bmjopen-2015-008813 on 29 January 2016. D
ownloaded from
![Page 2: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/2.jpg)
For peer review only
1
TRENDS IN MARKET SHARE OF LEADING CIGARETTE BRANDS: NATIONAL
SURVEY OF DRUG USE AND HEALTH 2002-2013
Anushree Sharma, MPH1 Brian V. Fix, MA1
Cristine Delnevo, PhD, MPH2 K. Michael Cummings PhD, MPH3
Richard J. O’Connor, PhD1
1Department of Health Behavior, Roswell Park Cancer Institute Buffalo, NY, USA 2Department of Health Education and Behavioral Science, Rutgers University School of Public
Health, New Brunswick, New Jersey, USA 3Department of Psychiatry and Behavioral Sciences, Medical University of South Carolina,
Charleston, South Carolina, USA
Corresponding Author: Richard J. O'Connor
Department of Health Behavior Roswell Park Cancer Institute
Elm and Carlton Streets Buffalo, NY 14263
Telephone: 716-845-4517 Fax: 716 845 1265
E-mail address: [email protected]
Keywords: tobacco, surveillance and monitoring, marketing
Word Count: 2,953
Page 1 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 3: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/3.jpg)
For peer review only
2
ABSTRACT
Objectives
The main objective of this study is to examine trends in market share for leading cigarette
brands, both before (2002-2008) and after (2009-2013) Food and Drug Administration regulation
of tobacco products.
Design
Data come from the annual National Survey on Drug Use and Health from 2002 through 2013.
Analysis was conducted in 2014 using SUDAAN 11.1 running under SAS 9.4. Descriptive
statistics, cross tabulations, and logistic regression were employed. Data were weighted to the
US population and adjusted for cigarette consumption.
Results
Over 12 years, 14 brands comprised over 77% of the cigarette market. Marlboro consistently
held over 38% of the market. Newport held the second highest market share, and increased from
7.2% in 2002 to 10.9% by 2013. Market share of Pall Mall grew by over 400% (1.7% in 2002
vs. 8.9% in 2013). Much of Pall Mall’s growth may be attributable to shifts in marketing focus
by RJ Reynolds.
Conclusions
Tracking market share trends offers clues about brand marketing changing preferences of
consumers. Rapidly growing cigarette brands should be monitored to determine if specific
marketing practices or design changes are drivers, as these could represent public health
concerns.
Page 2 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 4: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/4.jpg)
For peer review only
3
ARTICLE SUMMARY
Strengths and limitations of this study
• One of the strengths of this analysis is the large sample size afforded by NSDUH.
• Construction and use of cigarette consumption-based weights offers a reflection of
market share accounting for different consumption patterns.
• One of the limitations of the NSDUH data is that detail on specific sub varieties (e.g.,
strength, length, flavor) is limited.
• As with all cross sectional data, our inability to make inferences about brand switching is
limited.
• A final limitation, to be addressed in a follow-up analysis, is that this manuscript did not
address demographic correlates of market share trends.
Page 3 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 5: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/5.jpg)
For peer review only
4
INTRODUCTION
Cigarettes remain one of the most heavily advertised consumer products. Because tobacco
manufacturers have a keen interest in driving consumers to select their products over their
competitors, they invest heavily to promote specific brands using marketing via direct mail,
cigarette packaging, point of sale, and advertising via media channels [1,2]. Because the Master
Settlement Agreement (MSA) closed off many traditional advertising venues, the majority of this
spending [approximately $7 billion] is on price discounts [3,4,5]. The amount spent on cigarette
advertising and promotion by the largest cigarette companies in the United States rose from
$8.05 billion in 2010 to $8.37 billion in 2011, due mainly to an increase in spending on price
discounts, or discounts paid to cigarette retailers or wholesalers in order to reduce the price of
cigarettes to consumers [3,6].
The cigarette industry’s own internal business records acknowledge the importance of
advertising, observing that “…every consumer is presold, specifying his brand by name…the rise
and fall of every brand of consequence has been traced in detail and their year to year success or
failure shown to be the direct result of consumer advertising” [7]. Thus, it is important to
monitor the cigarette marketplace as changes in the relative popularity of brands (positive or
negative) may signal changes in consumer preferences which could be influenced by marketing
and/or product regulations [8,9]. Recent studies have addressed the trends of other tobacco
products in the market to identify important shifts [10,11] -- for example, while cigarette sales
have declined in the overall market, the sales of flavored cigars have continued to increase.10
Other studies have demonstrated that menthol cigarettes have held relatively constant market
share compared to non-menthol cigarettes; [12,13] an important finding given young smokers are
Page 4 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 6: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/6.jpg)
For peer review only
5
more likely to smoke mentholated cigarettes compared to non-mentholated cigarettes [13].
Overall, monitoring trends in tobacco brands is important in as much as it could signal changes
in consumer behaviors that may warrant further investigation [14,15].
The primary aim of this analysis was to assess trends in cigarette brand market share via a
secondary data analysis of a large, nationally representative dataset (the National Survey on Drug
Use and Health). This paper presents cigarette brand trends in America as they were reported
from 2002 through 2013, which encompasses the period before (2002-2008) and after (2009-
2013) Congress authorized Food and Drug Administration (FDA) regulation of tobacco products
[16].
METHODS
Data source
Data for the current study come from the 2002 through 2013 public use datasets of the National
Survey on Drug Use and Health (NSDUH), a nationally representative cross-sectional survey
that assesses substance use behaviors in the US civilian, non-institutionalized population aged
12+ [17]. Each year, approximately 70,000 eligible individuals complete the survey. The data
before 2002 was collected using a different sampling frame, thus previous time periods were not
included in our analysis. Thus, at the time the study was conducted researchers had access to
NSDUH data from 2002 -2013. Data were analyzed in 2014.
NSDUH uses a 50 state design with independent, multistage area probability samples for each
State and the District of Columbia to provide nationally representative data regarding tobacco
Page 5 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 7: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/7.jpg)
For peer review only
6
use, alcohol use and other illicit drug use. Data are collected using computer assisted personal
interviewing (CAPI) for basic questions and audio computer-assisted self-interviewing (ACASI)
to complete questions on substance use to encourage more truthful reporting [17]. Complete
information regarding data collection methods can be found online at
{http://www.oas.samhsa.gov/nsduh/methods.cfm}
Cigarette brand measures
Our analysis is restricted to 164,343 current cigarette smokers who were at least 12 years of age
or older, had smoked at least one cigarette in the 30 days prior to the survey, and reported a usual
cigarette brand at the time of the survey. The brand variable was selected to reflect the tobacco
brand that participants reported smoking most often in the past 30 days. Using the usual brand
variable, we conducted an initial examination of frequencies and focused our analyses to those
brands that were among the top 10 brands for any of the years during the study period (2002-
2013), resulting in a ‘short list’ of 14 brands. Note that our analysis focuses only on brand
families, not sub-brands (e.g., full-flavor vs. ‘gold’), as the survey does not gather precise brand
variant data.
Weight adjustment
The default weight in the public use dataset (ANALWT3) weights the sample to the US
population. Since we wanted to do an analysis looking at the market share for the cigarette
brands, we adjusted these sampling weights to better reflect consumption patterns among the
Page 6 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 8: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/8.jpg)
For peer review only
7
sample. ANALWT3 was multiplied by the number of cigarettes consumed on average each day,
and by the number of days in the past month that participants reported smoking. Thus, the
adjusted weight reflects the number of cigarettes smoked over the past 30 days among current
smokers. The weight adjustment allows us to take into account consumption patterns among
smokers and gives us a better indicator of the overall market with regards to the number of actual
cigarettes smoked.
Statistical Analysis
We used SUDAAN version 11 (RTI International, Research Triangle Park, NC) running in SAS
version 9.4 (SAS Institute, Cary NC) to account for the complex sampling frame. Once the data
was collected, we determined the market share of all the top 10 cigarette brands using a crosstabs
procedure which took into account the new weight variable we had constructed to account for the
actual number of cigarettes smoked with regards to overall market share. We also conducted a
trend analysis to look at changes among individual cigarette brands over the eleven year period.
We did the trend analysis using logistic regression models with brand as the outcome and year as
a continuous predictor variable. The results of the analysis were used to determine if the trends
were significant over time. We observed a quadratic trend with Pall Mall, thus we assessed the
quadratic trend for Pall Mall using a year*year term in the logistic regression model.
RESULTS
The results of the overall cigarette market share analysis are presented in table 1. Marlboro
consistently held over 38% of the market in any given year and has been relatively stable in
Page 7 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 9: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/9.jpg)
For peer review only
8
terms of its overall share of the market. Newport held the second highest market share overall,
and increased over time from 7.23% in 2002 to 10.89% by 2013. More dramatic are the gains of
Pall Mall, which in 2002 commanded only 1.66% of the overall market share, but by 2013 had
grown to 8.92%, an increase of 437%. Pall Mall appears to have grown most after 2007 -
increasing 239% in only 6 years. Another brand with large growth is American Spirit. It
increased from a negligible 0.26% in 2002 to over 1.70% in 2013, representing a relative growth
of 554% over this time span. Camel, Pall Mall, and American Spirit were all owned by
Reynolds American in 2013, and their combined market share was approximately 18%. Market
share of other brands such as Doral and Basic declined between 2002-2013.
Table 1: Market Share of brands appearing in the top 10 in any year: NSDUH 2002-2013
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Percent
change
2002-2013
American Spirit
RJRa 0.26 0.47 0.30 0.48 0.63 0.63 0.75 0.98 1.35 1.04 1.47 1.70 +553.8%
Basic
PMUSAb 6.10 4.67 5.29 5.62 5.88 5.76 4.18 4.37 3.17 2.45 1.54 2.01 -67.1%
Camel
RJR 6.24 6.35 7.21 6.36 7.50 7.92 8.11 8.32 7.97 7.79 7.34 7.77 +24.5%
Doral
RJR 6.77 6.59 5.17 3.98 4.19 4.45 3.61 4.53 1.62 1.90 0.70 0.73 -89.2%
GPC
RJR 2.64 2.20 2.52 1.83 1.56 1.74 1.06 1.22 0.94 0.79 0.64 0.34 -87.1%
Kool
RJR 3.10 3.26 2.86 2.55 3.06 3.25 2.93 2.53 2.96 2.51 2.31 1.58 -49.03%
Marlboro
PMUSA 38.44 38.24 39.22 39.60 39.19 39.28 41.02 39.34 41.21 39.17 38.34 38.10 -0.9%
Newport
Lorillardc 7.23 7.54 7.66 7.26 8.97 8.42 9.06 8.78 9.77 10.14 10.93 10.89 +50.6%
Pall Mall
RJR 1.66 1.68 2.35 1.97 2.06 2.63 3.13 4.77 6.93 8.11 8.93 8.92 +437.4%
Parliament
PMUSA 0.96 1.36 1.30 1.48 1.38 1.31 1.50 0.94 1.22 1.49 0.64 0.92 -4.2%
Salem
RJR 2.32 2.29 2.63 1.43 1.87 1.96 1.90 0.94 1.43 1.16 1.09 0.96 -58.6%
USA Gold
Commonwealth 1.20 1.86 1.24 2.34 2.36 2.61 2.08 2.20 2.16 1.49 1.60 1.37 +14.2%
Virginia Slims
PMUSA 2.92 2.02 2.16 1.53 1.65 2.09 1.68 1.65 1.19 1.13 1.35 0.59 -79.8%
Winston
RJR 3.91 3.92 2.99 4.14 3.17 3.04 3.12 2.35 2.08 2.53 2.38 2.11 -46.0%
All Other
Reported Brands 16.27 17.55 17.10 19.43 16.52 14.92 15.87 17.08 16.00 18.3 20.76 22.02 +35.3%
Page 8 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 10: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/10.jpg)
For peer review only
9
a RJR: RJ Reynolds Tobacco Company
b PMUSA: Phillip Morris USA
cIn 2014, RJR proposed to acquire Lorillard, including the Newport brand. As part of this deal,
RJR would divest other brands including Winston, Salem, and Kool to Imperial Tobacco.
Trend tests
Most of the brands in the analysis had some fluctuations regarding their market share from any
given year to the next. However, in terms of the overall patterns the linear trend tests which
were conducted for Newport, Pall Mall, and American Spirit using logistic regression all
indicated that the beta coefficient for the year term was significant. The P value for the Wald F
test was p <0 .0001. For Camel, the P value for the Wald F test was p=0.001. (Year was treated
as a continuous variable in the model). The trend test for Marlboro was not significant with a p
value for the Wald F test = .65. We also noticed that Pall Mall and Basic had nonlinear growth;
quadratic trend tests for Pall Mall and Basic showed significance at the p <0.0001 level. Figure
1 shows the changes in market share between 2002 and 2013 for selected brands.
FIGURE 1: Market Share of selected brands 2002 to 2013
[INSERT FIGURE 1 HERE]
Subtypes
A crude examination of how subtypes (full flavor vs. all other variants) might influence overall
trends was conducted. For example, the market share of Pall Mall in 2002 was comprised of
Page 9 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 11: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/11.jpg)
For peer review only
10
72.2% full flavor, compared to 42.1% in 2013, a substantial decline. In contrast, for Camel, the
proportion of their market share made up of full flavor subtypes increased from 37.1% to 48.9%.
For Marlboro, Newport, American Spirit the proportion of their market share accounted for by
full flavor variants was relatively stable between 2002 and 2013. A similar analysis examined
how menthol cigarettes might influence market share trends for the 2004-2013 period (a different
question wording was used in 2002-2003). The menthol proportion for Pall Mall increased from
11.7% in 2004 to 21.1% in 2013. The menthol fraction of Camel increased substantially over the
same period (5.8%-32.7%). The share of Newport use attributed to menthol decreased from
99.3% to 91.2% (which corresponds to the introduction of a non-menthol version of Newport in
2010). Menthol represents a relatively small, but growing, proportion of the Marlboro market
(10% in 2004 vs 14.5% in 2013).
DISCUSSION
Cigarette brands with changes in market share should be monitored to see if there are specific
marketing practices or design changes which could be driving large gains, as this could be a
concern for public health [15,18,19]. Also, as different companies acquire new brands market
surveillance should be conducted to see how this impacts market share. Tracking the trends in
the market share of cigarette brands offers clues about the success of brand marketing and
provides indications about changing preferences of consumers [20,21]. Our study captured
trends over a 12 year period between 2002 and 2013, and offers perspective on how changing
market conditions were associated with changes in brand market share. The total cigarette
consumption in the US has been declining steadily since 1998 [22]. Between the period of 2005
Page 10 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 12: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/12.jpg)
For peer review only
11
and 2013 the largest declines were seen in the adult age group of 18-24 year olds [23]. However,
this decline in the use of cigarettes may be partially offset by the increasing popularity of other
tobacco products like cigarillos [10,23].
Age also plays a role in brand share. Younger smokers tend to initiate with and prefer premium
cigarettes brands, so as fewer young people take up smoking (as has happened in the past
decade), the brands popular with older smokers may become more dominant [24,25]. Older,
mainly white smokers with lower incomes, switched to discounts and are aging out of the market
(i.e., they will quit or die) [14,26]. Purely discount brands like Basic, GPC, and Doral, which
attracted substantial share in the 1980s and 1990s [27], lack marketing support and thus a
pipeline of replacement smokers to keep them viable. Premium brands like Marlboro, Camel,
Newport, and American Spirit attract new smokers and maintain variants to retain older smokers
[14]. The increase in market share among menthol variants of Pall Mall, Camel, and Marlboro is
noteworthy given previous research indicating that younger smokers are more likely smoke
menthols. A previously published analysis of NSDUH survey data from 2004 through 2010
found that menthol cigarettes were more commonly used by younger smokers -- 56.7% of 12-17
year old smokers used a menthol brand vs 30% – 35% of smokers over 25 [13].
It is an important distinction to make that while overall cigarette consumption is decreasing over
the years, there are numerous other types of tobacco products like cigarillos and moist snuff
which are increasing in popularity and offering an alternative to people who may be cutting
down on cigarette consumption due to increased regulations and economic pricing [11,20].
Thus, the overall cigarette market share is affected by policy and regulations and the changes in
Page 11 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 13: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/13.jpg)
For peer review only
12
market share are reflective of these forces. It is thus imperative to monitor changes that are
occurring in the overall cigarette market shares [21].
Changes in market share occur due to marketing practices by the tobacco companies themselves.
We used a very large, nationally representative dataset to monitor market share for the most
popular cigarette brands in America during a key time period. This time period saw a major
recession in 2007 and an increased federal excise tax in 2009 [28]. Driven in part by these
economic conditions, the data indicated rapid growth in market share of brands like Pall Mall.
Pall Mall was acquired by RJR and repositioned for marketing purposes as a premium quality
brand at a discount price [26]. The timing of the marketing was critical to the growth of Pall
Mall because it was positioned as an attractive brand for smokers who might have been looking
to maximize on their cigarette quality for a low price [26,29,30]. At the same time, longitudinal
data showed that some smokers of premium brands were paying less for their cigarettes than
those buying identified discount products, [26] suggesting the existence of substantial price
discounting, even for their premium brands, which may have preserved their market share
despite the poor economy.
Changes in marketing practices play a key role in the market share changes that are observed in
our data. For example company reports by RJ Reynolds in 2007 indicate that they intended to
focus their efforts on a few key brands, including “…two premium brands, CAMEL and KOOL,
and a value brand, PALL MALL.” [31]. RJR reformulated and reintroduced the brand as a
premium discount (old time premium name with a low price). The new packaging and line
extensions for Pall Mall reflected a brighter, more colorful design. The Pall Mall brand was also
Page 12 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 14: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/14.jpg)
For peer review only
13
advertised to consumers using ads placed in prominent magazines such as Entertainment
Weekly, Glamour, and Vanity Fair [32]. This helped to make the brand more prominent,
marketed to consumers as a brand that “differentiates itself from other value offerings by
delivering a high-quality, longer-lasting cigarette at an affordable price” and due to these reasons
the brand ‘retain(s) a high percentage of adult smokers who try the brand.” [33]. These changes
appear to have been effective in promoting uptake of the brand among current smokers, as
market share has increased substantially since 2007. Timing was critical to Pall Mall’s success
given the federal tax hike on cigarettes in 2009 [26,29,30] positioning as a premium discount
may have attracted smokers.
Findings are mixed with respect to traditional premium brands. Marlboro has maintained its
market dominance, controlling the largest proportion of the market share (between 38.2% and
41.2%). However, despite the proliferation of new sub varieties of Marlboro over the past
decade (e.g., Skyline, Black, Blend 54), it does not seem to have gained additional brand share.
PM USA appears to be consolidating its marketing efforts behind Marlboro. Basic was a
branded discount and historically attracted price-seeking smokers who might have otherwise
smoked Marlboro; the sharp decline in this brand may be attributable in part to promoting new
variants and price discounting of Marlboro.
Reynolds American owns two other major growth brands: Camel and American Spirit. Our
findings reflecting the overtaking of Camel by Pall Mall and significant growth of American
Spirit are corroborated by Reynolds-American investor reports [34]. These reports also predict
these brands to have continued growth in the years ahead [34]. Newport, the leading menthol
Page 13 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 15: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/15.jpg)
For peer review only
14
brand, continues to gain market share in a near-linear fashion. This appears to be the primary
reason that Reynolds American announced in 2014 it would be acquiring Newport from Lolliard
[35]. Should the deal be approved, Reynolds would own the primary growth cigarette brands in
the US market, while shedding declining brands. At the same time, the possibility exists that
new ownership may revive a flagging brand through aggressive marketing, as Reynolds appears
to have done with Pall Mall (which it acquired by merger with Brown and Williamson in 2004,
which had acquired it from American Tobacco in 1994).
Strengths and Limitations of Study
One of the strengths of this analysis is the large sample size afforded by NSDUH. Additionally,
construction and use of cigarette consumption-based weights offers a reflection of market share
accounting for different consumption patterns. Indeed, our data compare favorably to Maxwell
Report estimates of brand market share for 2013 [36] -- we are within 1.5 percentage point of the
Maxwell estimate for growth brands, except Marlboro (-2.7%), with a mean absolute deviation
across the six brands report in the 2013 Maxwell Report of 1.0 (see Table 2). This suggests that
the cigarette consumption-adjusted weighting procedure may be useful moving forward as a way
to track not only brand preference, but also market share/sales.
Page 14 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 16: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/16.jpg)
For peer review only
15
Table 2: Comparison of market share, 2013 Maxwell Report and National Survey of Drug Use
and Health
2013
NSDUH
2013
Maxwell Difference
American Spirit 1.7 1.3 0.4
Camel 7.8 7.6 0.2
Marlboro 38.1 40.8 -2.7
Newport 10.9 12.2 -1.3
Pall Mall 8.9 7.8 1.1
USA Gold 1.4 1.1 0.3
Mean Absolute Deviation
1.00
One of the limitations of the NSDUH data is that detail on specific sub varieties (e.g., strength,
length, flavor) is limited. For example, we cannot determine which of the multiple varieties of
Marlboro cigarettes had the highest prevalence. The survey asks a question regarding the type of
cigarette used in the past 30 days with response options of lights, ultra lights, and full flavor
cigarettes in the 2002-2004 surveys (CIG30TYP). The response options were modified
beginning with the 2005 survey and continuing through 2013 to ask about lights, ultra lights,
medium and full flavored cigarettes (CIG30TPE). With the FDA gaining authority to regulate
tobacco in 2009, the use of descriptors such as “light” and “ultra-light” has been phased out.16
Asking questions related to sub-varieties of specific brands using these response options presents
a potential source of misclassification because smokers might not use these options to describe
their cigarettes . Further, asking whether a participant has smoked menthol in the past 30 days
using “yes” or “no” response options creates a possible disconnect between their usual brand and
whether that brand is menthol or non-menthol. Future surveys should consider more precise
methods of assessing brand preferences.
Page 15 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 17: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/17.jpg)
For peer review only
16
Another limitation, as with all cross sectional data, is our inability to make inferences about
brand switching. As such, these data cannot be used to examine whether, for example, former
Salem smokers are migrating to Newport. A final limitation is that this analysis did not examine
demographic correlates of market share trends. Consumer characteristics can also play a role in
determining market changes [2, 37]. A subsequent analysis is being conducted to help identify
key demographic drivers of changes in the market.
Page 16 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 18: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/18.jpg)
For peer review only
17
What this paper adds:
Cigarettes remain one of the most heavily advertised consumer products. Thus, it is important to
monitor the cigarette marketplace as changes in the relative popularity of brands (positive or
negative) may signal changes in consumer preferences which could be influenced by marketing
and/or product regulations. Cigarette brands with changes in market share should be monitored
to see if there are specific marketing practices or design changes which could be driving large
gains, as this could be a concern for public health. Also, as different companies acquire new
brands market surveillance should be conducted to see how this impacts market share.
This paper presents cigarette brand trends in America as they were reported from 2002 through
2013, which encompasses the period before (2002-2008) and after (2009-2013) Congress
authorized Food and Drug Administration (FDA) regulation of tobacco products.
The findings indicate that certain brands like Pall Mall have made large gains in market share in
a relatively short period since 2007. Our study used a weighting approach which enabled us to
calculate consumption patterns among the survey respondents, an approach that might be better
reflective of the true market share. Using this technique, the data in this manuscript compared
favorably with that found in the Maxwell Report.
Page 17 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 19: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/19.jpg)
For peer review only
18
Acknowledgements:
None.
Data Sharing:
Data for the current study come from the 2002 through 2013 public use datasets of the National
Survey on Drug Use and Health (NSDUH). Datasets are available for download from the
Substance Abuse and Mental Health Data Archive
(http://www.icpsr.umich.edu/icpsrweb/SAMHDA/series/64).
Competing interests:
KMC has served in the past and continues to serve as a paid expert witness for plaintiffs in
litigation against the tobacco industry.
RJO has served as a consultant to the Food and Drug Administration on tobacco regulation as a
member of the Tobacco Products Scientific Advisory Committee
Otherwise, the authors have no competing interests to declare.
Patient consent:
Not applicable.
Ethics approval:
Because this study did not involve human subjects, no ethics approval was required.
Provenance and peer review:
Not commissioned; externally peer reviewed
Page 18 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 20: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/20.jpg)
For peer review only
19
Contributorship statement:
RJO, AS, BVF: conception and design
AS, BVF: data analysis
AS, BVF, CD, KMC, RJO: drafting the manuscript and revising it critically for important
intellectual content
All authors read and approved the final manuscript.
Funding:
No specific funding was received for this research.
Page 19 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 21: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/21.jpg)
For peer review only
20
REFERENCES
1. Hoek, Janet, et al. "Tobacco branding, plain packaging, pictorial warnings, and symbolic consumption." Qualitative health research 22.5 (2012): 630-639.
2. Hafez, Navid, and P. M. Ling. "How Philip Morris built Marlboro into a global brand for
young adults: implications for international tobacco control." Tobacco control 14.4 (2005): 262-271.
3. Federal Trade Commission. "Federal Trade Commission cigarette report for 2011."
Washington, DC (2013).
4. Feighery, Ellen C., et al. "An examination of trends in amount and type of cigarette advertising and sales promotions in California stores, 2002–2005." Tobacco Control 17.2 (2008): 93-98.
5. Chen, Tao, Baohong Sun, and Vishal Singh. "An empirical investigation of the dynamic
effect of marlboro's permanent pricing shift." Marketing Science 28.4 (2009): 740-758.
6. Chaloupka, Frank J., Ayda Yurekli, and Geoffrey T. Fong. "Tobacco taxes as a tobacco control strategy." Tobacco Control 21.2 (2012): 172-180.
7. Burgard JW. A study of Cigarette Advertising. Lorillard Tobacco Company, 1953. Bates No. 04238374-04238433, accessed August 28, 2014: http://legacy.library.ucsf.edu/tid/kmn99d00
8. Tauras, John A., Richard M. Peck, and Frank J. Chaloupka. "The role of retail prices and promotions in determining cigarette brand market shares." Review of industrial
Organization 28.3 (2006): 253-284.
9. Hyland, Andrew, et al. "Higher cigarette prices influence cigarette purchase patterns." Tobacco Control 14.2 (2005): 86-92.
10. Delnevo, Cristine D., et al. "Preference for flavoured cigar brands among youth, young
adults and adults in the USA." Tobacco control (2014): tobaccocontrol-2013.
11. Delnevo, Cristine D., et al. "Examining market trends in the United States smokeless tobacco use: 2005–2011." Tobacco control 23.2 (2014): 107-112.
12. Delnevo, Cristine D., Andrea C. Villanti, and Gary A. Giovino. "Trends in menthol and
non-menthol cigarette consumption in the USA: 2000–2011." Tobacco control (2013): tobaccocontrol-2013.
Page 20 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 22: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/22.jpg)
For peer review only
21
13. Giovino, Gary A., et al. "Differential trends in cigarette smoking in the USA: is menthol slowing progress?." Tobacco control (2013): tobaccocontrol-2013.
14. Cummings, K. Michael, et al. "Discrepancies in cigarette brand sales and adult market
share: are new teen smokers filling the gap?" Tobacco Control 6.suppl 2 (1997): S38.
15. Wayne, G. Ferris, and G. N. Connolly. "How cigarette design can affect youth initiation into smoking: Camel cigarettes 1983-93." Tobacco Control 11.suppl 1 (2002): i32-i39.
16. Prevention, Family Smoking. "DIVISION A--FAMILY SMOKING PREVENTION
AND TOBACCO CONTROL ACT." Public Law 111 (2009): 31.
17. Department of Health and Human Services, 2009. National Survey on Drug Use and Health. Methodology Reports and Questionnaires. http://www.oas.samhsa.gov/nsduh/methods.cfm. [accessed on April 18 2013].
18. Cummings, K. Michael, et al. "Comparison of recent trends in adolescent and adult cigarette smoking behavior and brand preferences." Tobacco control 6.suppl 2 (1997): S31.
19. O’Connor, Richard J., et al. "relationship of Cigarette-related perceptions to Cigarette
Design features: findings from the 2009 ITC US Survey." Nicotine & Tobacco Research (2013): ntt075.
20. Cruz, Tess Boley. "Monitoring the tobacco use epidemic IV. The vector: Tobacco
industry data sources and recommendations for research and evaluation." Preventive
medicine 48.1 (2009): S24-S34.
21. O'Connor, Richard J., et al. "Surveillance methods for identifying, characterizing, and monitoring tobacco products: potential reduced exposure products as an example." Cancer Epidemiology Biomarkers & Prevention 18.12 (2009): 3334-3348.
22. Connolly, Gregory N., and Hillel R. Alpert. "Trends in the use of cigarettes and other
tobacco products, 2000-2007." Jama 299.22 (2008): 2629-2630.
23. Agaku, Israel T., Brian A. King, and Shanta R. Dube. "Current cigarette smoking among adults-United States, 2005–2012." MMWR Morb Mortal Wkly Rep 63.2 (2014): 29-34.
24. Arrazola, René A., et al. "Tobacco use among middle and high school students—United States, 2013." MMWR Morb Mortal Wkly Rep 63.45 (2014): 1021-1026.
25. Centers for Disease Control and Prevention (CDC. "Tobacco product use among middle and high school students--United States, 2011 and 2012." MMWR. Morbidity and
mortality weekly report 62.45 (2013): 893.
Page 21 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 23: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/23.jpg)
For peer review only
22
26. Cornelius ME, Driezen P, Fong GT, Chaloupka FJ, Hyland A, Bansal-Travers M, Carpenter MJ, Cummings KM. Trends in the use of premium and discount cigarette brands: Findings from the ITC US surveys (2002-2011). Tob Control. 2014. 23 Suppl 1:i48-53.
27. Cummings, K. Michael, et al. "Use of discount cigarettes by smokers in 20 communities
in the United States, 1988-1993." Tobacco Control 6.suppl 2 (1997): S25.
28. Tynan, Michael A., Daniel Morris, and Tara Weston. "Continued implications of taxing roll-your-own tobacco as pipe tobacco in the USA." Tobacco control (2014): tobaccocontrol-2013.
29. UBS Investment Research: Reynolds American. 6 January 2011.
30. Wells Fargo Statistics. Equity Research: Reynolds American, Inc., 12 February 2013.
31. Reynolds American Inc.. Form 10K Annual report.
http://reynoldsamerican.com/secfiling.cfm?filingID=950144-07-1653&CIK=1275283 Published 2/27/07. (Accessed November 7th, 2014).
32. Trinkets and Trash. Bright now- orange box for ultra-lights. http://trinketsandtrash.org/detail.php?artifactid=5567&page=1. (Accessed August 2014).
33. Reynolds American shareholder report 2009. http://files.shareholder.com/downloads/RAI/3138416115x0x348889/a93bc9f6-7931-482a-8b7d-2b16d03d8a6e/2010-04_RAIs_2009_performance_highlights_underlying_strength_and_resilience.pdf. Published February 4th, 2010. (Accessed November 2014).
34. Reynolds American shareholder report 2011. http://files.shareholder.com/downloads/RAI/3185268357x0x541001/6c157143-28e3-4bb9-ae47-c9ea03df9358/2012-03_RAI_delivers_solid_earnings_growth_in_2011.pdf Published February 8th, 2012. (Accessed November 2014).
35. Reynolds American (RAI) Stock Dips After Announcing Acquisition of Lorillard (LO). The Street. 7/15/2014. http://www.thestreet.com/story/12774129/1/reynolds-american-rai-stock-dips-after-announcing-acquisition-of-lorillard-lo.html (Accessed November 2014).
36. The Maxwell Report: Year End and Fourth Quarter 2013 Sales and Volume Estimates for the U.S. Cigarette Industry. Richmond (VA): John C. Maxwell, Jr., 2014
37. DiFranza, Joseph R., et al. "Tobacco acquisition and cigarette brand selection among
youth." Tobacco Control 3.4 (1994): 334.
Page 22 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 24: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/24.jpg)
For peer review only
162x110mm (300 x 300 DPI)
Page 23 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 25: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/25.jpg)
For peer review only
TRENDS IN MARKET SHARE OF LEADING CIGARETTE
BRANDS IN THE UNITED STATES: NATIONAL SURVEY ON
DRUG USE AND HEALTH 2002-2013
Journal: BMJ Open
Manuscript ID bmjopen-2015-008813.R1
Article Type: Research
Date Submitted by the Author: 07-Aug-2015
Complete List of Authors: Sharma, Anushree; Roswell Park Cancer Institute, Health Behavior Fix, Brian; Roswell Park Cancer Institute, Health Behavior Delnevo, Cristine; Rutgers School of Public Health,
Cummings, Michael; Medical University of South Carolina, Psychiatry & Behavioral Sciences O'Connor, Richard; Roswell Park Cancer Institute, Dept. of Health Behavior
<b>Primary Subject Heading</b>:
Smoking and tobacco
Secondary Subject Heading: Public health, Epidemiology
Keywords: PUBLIC HEALTH, Substance misuse < PSYCHIATRY, EPIDEMIOLOGY
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open on July 23, 2020 by guest. P
rotected by copyright.http://bm
jopen.bmj.com
/B
MJ O
pen: first published as 10.1136/bmjopen-2015-008813 on 29 January 2016. D
ownloaded from
![Page 26: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/26.jpg)
For peer review only
1
TRENDS IN MARKET SHARE OF LEADING CIGARETTE BRANDS IN THE UNITED
STATES: NATIONAL SURVEY ON DRUG USE AND HEALTH 2002-2013
Anushree Sharma, MPH1 Brian V. Fix, MA1
Cristine Delnevo, PhD, MPH2 K. Michael Cummings PhD, MPH3
Richard J. O’Connor, PhD1
1Department of Health Behavior, Roswell Park Cancer Institute Buffalo, NY, USA 2Department of Health Education and Behavioral Science, Rutgers University School of Public
Health, New Brunswick, New Jersey, USA 3Department of Psychiatry and Behavioral Sciences, Medical University of South Carolina,
Charleston, South Carolina, USA
Corresponding Author: Richard J. O'Connor
Department of Health Behavior Roswell Park Cancer Institute
Elm and Carlton Streets Buffalo, NY 14263
Telephone: 716-845-4517 Fax: 716 845 1265
E-mail address: [email protected]
Keywords: tobacco, surveillance and monitoring, marketing
Word Count:
Page 1 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 27: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/27.jpg)
For peer review only
2
ABSTRACT
Objectives
The main objective of this study is to examine trends in market share for leading cigarette
brands, both before (2002-2008) and after (2009-2013) Food and Drug Administration regulation
of tobacco products.
Design
Data come from the annual National Survey on Drug Use and Health from 2002 through 2013.
Descriptive statistics, cross tabulations, and logistic regression were employed. Data were
weighted to the US population and adjusted for cigarette consumption. Our analysis is restricted
to 164,343 current cigarette smokers who were at least 12 years of age or older, had smoked at
least one cigarette in the 30 days prior to the survey, and reported a usual cigarette brand at the
time of the survey.
Results
Over 12 years, 14 brands comprised over 77% of the cigarette market. Marlboro consistently
held over 38% of the market. Newport held the second highest market share, and increased from
7.2% in 2002 to 10.9% by 2013. Market share of Pall Mall grew by over 400% (1.7% in 2002
vs. 8.9% in 2013).
Conclusions
Tracking market share trends offers clues about brand marketing changing preferences of
consumers. Rapidly growing cigarette brands should be monitored to determine if specific
Page 2 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 28: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/28.jpg)
For peer review only
3
marketing practices or design changes are drivers, as these could represent public health
concerns.
ARTICLE SUMMARY
Strengths and limitations of this study
• One of the strengths of this analysis is the large sample size afforded by NSDUH.
• Construction and use of cigarette consumption-based weights offers a reflection of
market share accounting for different consumption patterns.
• One of the limitations of the NSDUH data is that detail on specific sub varieties (e.g.,
strength, length, flavor) is limited.
• As with all cross sectional data, our inability to make inferences about brand switching is
limited.
• A final limitation, to be addressed in a follow-up analysis, is that this manuscript did not
address demographic correlates of market share trends.
Page 3 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 29: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/29.jpg)
For peer review only
4
INTRODUCTION
Cigarettes remain one of the most heavily advertised consumer products. Because tobacco
manufacturers have a keen interest in driving consumers to select their products over their
competitors, they invest heavily to promote specific brands using marketing via direct mail,
cigarette packaging, point of sale, and advertising via media channels [1,2]. Because the Master
Settlement Agreement (MSA) closed off many traditional advertising venues, the majority of this
spending [approximately $7 billion] is on price discounts [3,4,5]. The amount spent on cigarette
advertising and promotion by the largest cigarette companies in the United States rose from
$8.05 billion in 2010 to $8.37 billion in 2011, due mainly to an increase in spending on price
discounts, or discounts paid to cigarette retailers or wholesalers in order to reduce the price of
cigarettes to consumers [3,6].
The cigarette industry’s own internal business records acknowledge the importance of
advertising, observing that “…every consumer is presold, specifying his brand by name…the rise
and fall of every brand of consequence has been traced in detail and their year to year success or
failure shown to be the direct result of consumer advertising” [7]. Thus, it is important to
monitor the cigarette marketplace as changes in the relative popularity of brands (positive or
negative) may signal changes in consumer preferences which could be influenced by marketing
and/or product regulations [8,9]. Recent studies have addressed the trends of other tobacco
products in the market to identify important shifts [10,11] -- for example, while cigarette sales
have declined in the overall market, the sales of flavored cigars have continued to increase.10
Other studies have demonstrated that menthol cigarettes have held relatively constant market
share compared to non-menthol cigarettes; [12,13] an important finding given young smokers are
Page 4 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 30: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/30.jpg)
For peer review only
5
more likely to smoke mentholated cigarettes compared to non-mentholated cigarettes [13].
Overall, monitoring trends in tobacco brands is important in as much as it could signal changes
in consumer behaviors that may warrant further investigation [14,15]. In addition, monitoring
trends in market share could be used to inform regulatory decision-making efforts.
Understanding how market share of cigarettes changes in response to regulation could serve as a
useful model for understanding and/or predicting how newly introduced products might perform
once they are introduced into the marketplace.
The primary aim of this analysis was to assess trends in cigarette brand market share via a
secondary data analysis of a large, nationally representative dataset (the National Survey on Drug
Use and Health). This paper presents cigarette brand trends in America as they were reported
from 2002 through 2013, which encompasses the period before (2002-2008) and after (2009-
2013) Congress authorized Food and Drug Administration (FDA) regulation of tobacco products
[16]. These newly introduced regulations, including a ban on descriptive terms such as “light”
and “mild”, as well as a 2009 federal excise tax increase on cigarettes, have the potential to cause
changes in the market share of cigarette brands. In addition, tobacco manufacturers of brands
with a larger market share prior to the introduction of these regulations might be better
positioned to withstand the regulatory burden than smaller manufacturers, helping to maintain
their portion of the market.
METHODS
Data source
Page 5 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 31: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/31.jpg)
For peer review only
6
Data for the current study come from the 2002 through 2013 public use datasets of the National
Survey on Drug Use and Health (NSDUH), a nationally representative cross-sectional survey
that assesses substance use behaviors in the US civilian, non-institutionalized population aged
12+ [17]. Each year, approximately 70,000 eligible individuals complete the survey. The data
before 2002 was collected using a different sampling frame, thus previous time periods were not
included in our analysis. Thus, at the time the study was conducted researchers had access to
NSDUH data from 2002 -2013. Data were analyzed in 2014.
NSDUH uses a 50 state design with independent, multistage area probability samples for each
State and the District of Columbia to provide nationally representative data regarding tobacco
use, alcohol use and other illicit drug use. Data are collected using computer assisted personal
interviewing for basic questions and audio computer-assisted self-interviewing to complete
questions on substance use to encourage more truthful reporting [17]. Complete information
regarding data collection methods can be found online at
{http://www.oas.samhsa.gov/nsduh/methods.cfm}
Cigarette brand measures
Our analysis is restricted to 164,343 current cigarette smokers who were at least 12 years of age
or older, and had smoked at least one cigarette in the 30 days prior to the survey. Participants
were asked to report if they had smoked a cigarette (even a part of a cigarette) in the past 30
days. If they acknowledged they had smoked in the past 30 days, they were then asked to report
on the brand of cigarette they smoked most often. Using this usual brand variable, we conducted
Page 6 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 32: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/32.jpg)
For peer review only
7
an initial examination of frequencies and focused our analyses to those brands that were among
the top 10 brands for any of the years during the study period (2002-2013), resulting in a ‘short
list’ of 14 brands. Note that our analysis focuses only on brand families, not sub-brands (e.g.,
full-flavor vs. ‘gold’), as the survey does not gather precise brand variant data.
Weight adjustment
The default weight in the public use dataset (ANALWT3) weights the sample to the US
population. Since we wanted to do an analysis looking at the market share for the cigarette
brands, we adjusted these sampling weights to better reflect consumption patterns among the
sample. ANALWT3 was multiplied by the number of cigarettes consumed on average each day,
and by the number of days in the past month that participants reported smoking. Thus, the
adjusted weight reflects the number of cigarettes smoked over the past 30 days among current
smokers. The weight adjustment allows us to take into account consumption patterns among
smokers and gives us a better indicator of the overall market with regards to the number of actual
cigarettes smoked.
Statistical Analysis
We used SUDAAN version 11 (RTI International, Research Triangle Park, NC) running in SAS
version 9.4 (SAS Institute, Cary NC) to account for the complex sampling frame. Once the data
was collected, we determined the market share of all the top 10 cigarette brands using a crosstabs
procedure which took into account the new weight variable we had constructed to account for the
actual number of cigarettes smoked with regards to overall market share. We also conducted a
Page 7 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 33: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/33.jpg)
For peer review only
8
trend analysis to look at changes among individual cigarette brands over the eleven year period.
We did the trend analysis using logistic regression models with brand as the outcome and year as
a continuous predictor variable. The results of the analysis were used to determine if the trends
were significant over time. We observed a quadratic trend with Pall Mall, thus we assessed the
quadratic trend for Pall Mall using a year*year term in the logistic regression model.
RESULTS
The results of the overall cigarette market share analysis are presented in table 1. Marlboro
consistently held over 38% of the market in any given year and has been relatively stable in
terms of its overall share of the market. Newport held the second highest market share overall,
and increased over time from 7.23% in 2002 to 10.89% by 2013. More dramatic are the gains of
Pall Mall, which in 2002 commanded only 1.66% of the overall market share, but by 2013 had
grown to 8.92%, an increase of 437%. Pall Mall appears to have grown most after 2007 -
increasing 239% in only 6 years. Another brand with large growth is American Spirit. It
increased from a negligible 0.26% in 2002 to over 1.70% in 2013, representing a relative growth
of 554% over this time span. Camel, Pall Mall, and American Spirit were all owned by
Reynolds American in 2013, and their combined market share was approximately 18%. Market
share of other brands such as Doral and Basic declined between 2002-2013.
Table 1: Market Share of brands appearing in the top 10 in any year: NSDUH 2002-2013
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Percent
change
2002-2013
American Spirit
RJRa 0.26 0.47 0.30 0.48 0.63 0.63 0.75 0.98 1.35 1.04 1.47 1.70 +553.8%
Basic
PMUSAb 6.10 4.67 5.29 5.62 5.88 5.76 4.18 4.37 3.17 2.45 1.54 2.01 -67.1%
Page 8 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 34: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/34.jpg)
For peer review only
9
Camel
RJR 6.24 6.35 7.21 6.36 7.50 7.92 8.11 8.32 7.97 7.79 7.34 7.77 +24.5%
Doral
RJR 6.77 6.59 5.17 3.98 4.19 4.45 3.61 4.53 1.62 1.90 0.70 0.73 -89.2%
GPC
RJR 2.64 2.20 2.52 1.83 1.56 1.74 1.06 1.22 0.94 0.79 0.64 0.34 -87.1%
Kool
RJR 3.10 3.26 2.86 2.55 3.06 3.25 2.93 2.53 2.96 2.51 2.31 1.58 -49.0%
Marlboro
PMUSA 38.44 38.24 39.22 39.60 39.19 39.28 41.02 39.34 41.21 39.17 38.34 38.10 -0.9%
Newport
Lorillardc 7.23 7.54 7.66 7.26 8.97 8.42 9.06 8.78 9.77 10.14 10.93 10.89 +50.6%
Pall Mall
RJR 1.66 1.68 2.35 1.97 2.06 2.63 3.13 4.77 6.93 8.11 8.93 8.92 +437.4%
Parliament
PMUSA 0.96 1.36 1.30 1.48 1.38 1.31 1.50 0.94 1.22 1.49 0.64 0.92 -4.2%
Salem
RJR 2.32 2.29 2.63 1.43 1.87 1.96 1.90 0.94 1.43 1.16 1.09 0.96 -58.6%
USA Gold
Commonwealth 1.20 1.86 1.24 2.34 2.36 2.61 2.08 2.20 2.16 1.49 1.60 1.37 +14.2%
Virginia Slims
PMUSA 2.92 2.02 2.16 1.53 1.65 2.09 1.68 1.65 1.19 1.13 1.35 0.59 -79.8%
Winston
RJR 3.91 3.92 2.99 4.14 3.17 3.04 3.12 2.35 2.08 2.53 2.38 2.11 -46.0%
All Other
Reported Brands 16.27 17.55 17.10 19.43 16.52 14.92 15.87 17.08 16.00 18.3 20.76 22.02 +35.3%
a RJR: RJ Reynolds Tobacco Company
b PMUSA: Phillip Morris USA
cIn 2014, RJR proposed to acquire Lorillard, including the Newport brand. As part of this deal,
RJR would divest other brands including Winston, Salem, and Kool to Imperial Tobacco.
Trend tests
Most of the brands in the analysis had some fluctuations regarding their market share from any
given year to the next. However, in terms of the overall patterns the linear trend tests which
were conducted for Newport, Pall Mall, and American Spirit using logistic regression all
indicated that the beta coefficient for the year term was significant. The P value for the Wald F
test was p <0 .0001. For Camel, the P value for the Wald F test was p=0.001. (Year was treated
as a continuous variable in the model). The trend test for Marlboro was not significant with a p
value for the Wald F test = .65. We also noticed (by visual inspection) that Pall Mall and Basic
Page 9 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 35: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/35.jpg)
For peer review only
10
had nonlinear growth. Quadratic trend tests for Pall Mall and Basic showed significance at the p
<0.0001 level. Figure 1 shows the changes in market share between 2002 and 2013 for selected
brands.
Subtypes
A crude examination of how subtypes (full flavor vs. all other variants) might influence overall
trends was conducted. Between 2002 and 2004, participants were asked “During the past 30
days, what type of cigarettes did you smoke most often?” The response options were Lights,
Ultralights or Full Flavor. Between 2005 and 2013, participants were asked the same question
but there was a new response added for “Mediums”. Due to the difference in the manner the
question was asked, we elected to analyze the subtypes as full flavor compared to all other
subtypes. The market share of Pall Mall in 2002 was comprised of 72.2% full flavor, compared
to 42.1% in 2013, a substantial decline. In contrast, for Camel, the proportion of their market
share made up of full flavor subtypes increased from 37.1% to 48.9%. For Marlboro, Newport,
American Spirit the proportion of their market share accounted for by full flavor variants was
relatively stable between 2002 and 2013. A similar analysis examined how menthol cigarettes
might influence market share trends for the 2004-2013 period (a different question wording was
used in 2002-2003). The menthol proportion for Pall Mall increased from 11.7% in 2004 to
21.1% in 2013. The menthol fraction of Camel increased substantially over the same period
(5.8%-32.7%). The share of Newport use attributed to menthol decreased from 99.3% to 91.2%
(which corresponds to the introduction of a non-menthol version of Newport in 2010). Menthol
represents a relatively small, but growing, proportion of the Marlboro market (10% in 2004 vs
14.5% in 2013).
Page 10 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 36: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/36.jpg)
For peer review only
11
DISCUSSION
Cigarette brands with changes in market share should be monitored to see if there are specific
marketing practices or design changes which could be driving large gains, as this could be a
concern for public health [15,18,19]. For example, if substantial growth in the market share of a
certain brand is observed among adolescents, marketing practices for the brand could come
under scrutiny from the FDA.
In addition, monitoring trends in cigarette market share could be used to inform regulatory
decision making efforts with respect to new products that might be introduced into the
marketplace. Understanding how market share of cigarettes changes in response to marketing
and advertising regulation could serve as a useful model for predicting how the marketing of
substantially equivalent products might be regulated.
Also, as different companies acquire new brands market surveillance should be conducted to see
how this impacts market share. Tracking the trends in the market share of cigarette brands offers
clues about the success of brand marketing and provides indications about changing preferences
of consumers [20,21]. Our study captured trends over a 12 year period between 2002 and 2013,
and offers perspective on how changing market conditions were associated with changes in
brand market share. The total cigarette consumption in the US has been declining steadily since
1998 [22]. Between the period of 2005 and 2013 the largest declines were seen in the adult age
group of 18-24 year olds [23]. However, this decline in the use of cigarettes may be partially
offset by the increasing popularity of other tobacco products like cigarillos [10,23]. This is
especially true among young people. A recent study indicated that a rise in use of e-cigarettes
Page 11 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 37: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/37.jpg)
For peer review only
12
and hookahs appears to be offsetting decreases in the use of other tobacco products, resulting in
no change in overall use of tobacco products among middle and high school students. [24]
Age also plays a role in brand share. Younger smokers tend to initiate with and prefer premium
cigarettes brands, so as fewer young people take up smoking (as has happened in the past
decade), the brands popular with older smokers may become more dominant [25,26]. Older,
mainly white smokers with lower incomes, switched to discounts and are aging out of the market
(i.e., they will quit or die) [14,27]. Purely discount brands like Basic, GPC, and Doral, which
attracted substantial share in the 1980s and 1990s [28], lack marketing support and thus a
pipeline of replacement smokers to keep them viable. Premium brands like Marlboro, Camel,
Newport, and American Spirit attract new smokers and maintain variants to retain older smokers
[14]. The increase in market share among menthol variants of Pall Mall, Camel, and Marlboro is
noteworthy given previous research indicating that younger smokers are more likely smoke
menthols. A previously published analysis of NSDUH survey data from 2004 through 2010
found that menthol cigarettes were more commonly used by younger smokers -- 56.7% of 12-17
year old smokers used a menthol brand vs 30% – 35% of smokers over 25 [13].
It is an important distinction to make that while overall cigarette consumption is decreasing over
the years, there are numerous other types of tobacco products like e-cigarettes, cigarillos and
moist snuff which are increasing in popularity and offering an alternative to people who may be
cutting down on cigarette consumption due to increased regulations and economic pricing
[11,20]. Thus, the overall cigarette market share is affected by policy and regulations and the
Page 12 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 38: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/38.jpg)
For peer review only
13
changes in market share are reflective of these forces. It is thus imperative to monitor changes
that are occurring in the overall cigarette market shares [21].
Changes in market share occur due to marketing practices by the tobacco companies themselves.
We used a very large, nationally representative dataset to monitor market share for the most
popular cigarette brands in America during a key time period. This time period saw a major
recession in 2007 and an increased federal excise tax in 2009 [29]. Driven in part by these
economic conditions, the data indicated rapid growth in market share of brands like Pall Mall.
Pall Mall was acquired by RJR and repositioned for marketing purposes as a premium quality
brand at a discount price [27]. The timing of the marketing was critical to the growth of Pall
Mall because it was positioned as an attractive brand for smokers who might have been looking
to maximize on their cigarette quality for a low price [27,30,31]. At the same time, longitudinal
data showed that some smokers of premium brands were paying less for their cigarettes than
those buying identified discount products, [27] suggesting the existence of substantial price
discounting, even for their premium brands, which may have preserved their market share
despite the poor economy.
Changes in marketing practices play a key role in the market share changes that are observed in
our data. For example company reports by RJ Reynolds in 2007 indicate that they intended to
focus their efforts on a few key brands, including “…two premium brands, CAMEL and KOOL,
and a value brand, PALL MALL.” [32]. RJR reformulated and reintroduced the brand as a
premium discount (old time premium name with a low price). The new packaging and line
extensions for Pall Mall reflected a brighter, more colorful design. The Pall Mall brand was also
Page 13 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 39: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/39.jpg)
For peer review only
14
advertised to consumers using ads placed in prominent magazines such as Entertainment
Weekly, Glamour, and Vanity Fair [33]. This helped to make the brand more prominent,
marketed to consumers as a brand that “differentiates itself from other value offerings by
delivering a high-quality, longer-lasting cigarette at an affordable price” and due to these reasons
the brand ‘retain(s) a high percentage of adult smokers who try the brand.” [34]. These changes
appear to have been effective in promoting uptake of the brand among current smokers, as
market share has increased substantially since 2007. Timing was critical to Pall Mall’s success
given the federal tax hike on cigarettes in 2009 [27,30,31] positioning as a premium discount
may have attracted smokers.
Findings are mixed with respect to traditional premium brands. Marlboro has maintained its
market dominance, controlling the largest proportion of the market share (between 38.2% and
41.2%). However, despite the proliferation of new sub varieties of Marlboro over the past
decade (e.g., Skyline, Black, Blend 54), it does not seem to have gained additional brand share.
PM USA appears to be consolidating its marketing efforts behind Marlboro. Basic was a
branded discount and historically attracted price-seeking smokers who might have otherwise
smoked Marlboro; the sharp decline in this brand may be attributable in part to promoting new
variants and price discounting of Marlboro.
Reynolds American owns two other major growth brands: Camel and American Spirit. Our
findings reflecting the overtaking of Camel by Pall Mall and significant growth of American
Spirit are corroborated by Reynolds-American investor reports [35]. These reports also predict
these brands to have continued growth in the years ahead [35]. Newport, the leading menthol
Page 14 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 40: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/40.jpg)
For peer review only
15
brand, continues to gain market share in a near-linear fashion. This appears to be the primary
reason that Reynolds American announced in 2014 it would be acquiring Lolliard [36]. This
deal was approved in mid 2015, and Reynolds now owns the primary growth cigarette brands in
the US market, while shedding declining ones (Winston, Kool, Salem were sold to Imperial
Tobacco). At the same time, the possibility exists that new ownership could revive a flagging
brand like Winston through aggressive marketing, as Reynolds appears to have done with Pall
Mall (which it acquired by merger with Brown and Williamson in 2004, which had acquired it
from American Tobacco in 1994).
It is important to understand what happens to a brand’s market share when manufacturers shift
their marketing resources. These shifts could be the result of tobacco control policies enacted by
the government or they could be due to changes in marketing practices by the cigarette
manufacturers. In terms of public health, the implication is that changes in consumer behavior
can be influenced by changes in marketing, leading to certain brands or products gaining market
share.
This type of analysis, linking marketing practices and subsequent positioning of the brand in the
marketplace to consumer behavior, may be helpful if the company introduces new substantially
equivalent products. The types of changes observed in the market share for cigarettes could
predict market share among other products.
Strengths and Limitations of Study
Page 15 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 41: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/41.jpg)
For peer review only
16
One of the strengths of this analysis is the large sample size afforded by NSDUH. Additionally,
construction and use of cigarette consumption-based weights offers a reflection of market share
accounting for different consumption patterns. Indeed, our data compare favorably to Maxwell
Report estimates of brand market share for 2013 [37] -- we are within 1.5 percentage point of the
Maxwell estimate for growth brands, except Marlboro (-2.7%), with a mean absolute deviation
across the six brands report in the 2013 Maxwell Report of 1.0 (see Table 2). This suggests that
the cigarette consumption-adjusted weighting procedure may be useful moving forward as a way
to track not only brand preference, but also market share/sales.
Table 2: Comparison of market share, 2013 Maxwell Report and National Survey of Drug Use
and Health
2013
NSDUH
2013
Maxwell Difference
American Spirit 1.7 1.3 0.4
Camel 7.8 7.6 0.2
Marlboro 38.1 40.8 -2.7
Newport 10.9 12.2 -1.3
Pall Mall 8.9 7.8 1.1
USA Gold 1.4 1.1 0.3
Mean Absolute Deviation
1.00
One of the limitations of the NSDUH data is that detail on specific sub varieties (e.g., strength,
length, flavor) is limited. For example, we cannot determine which of the multiple varieties of
Marlboro cigarettes had the highest prevalence. The survey asks a question regarding the type of
cigarette used in the past 30 days with response options of lights, ultra lights, and full flavor
cigarettes in the 2002-2004 surveys (CIG30TYP). The response options were modified
beginning with the 2005 survey and continuing through 2013 to ask about lights, ultra lights,
Page 16 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 42: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/42.jpg)
For peer review only
17
medium and full flavored cigarettes (CIG30TPE). With the FDA gaining authority to regulate
tobacco in 2009, the use of descriptors such as “light” and “ultra-light” has been phased out. [16]
Asking questions related to sub-varieties of specific brands using these response options presents
a potential source of misclassification because smokers might not use these options to describe
their cigarettes . Further, asking whether a participant has smoked menthol in the past 30 days
using “yes” or “no” response options creates a possible disconnect between their usual brand and
whether that brand is menthol or non-menthol. Future surveys should consider more precise
methods of assessing brand preferences.
Another limitation, as with all cross sectional data, is our inability to make inferences about
brand switching. As such, these data cannot be used to examine whether, for example, former
Salem smokers are migrating to Newport. A final limitation is that this analysis did not examine
demographic correlates of market share trends. Consumer characteristics can also play a role in
determining market changes [2, 38]. A subsequent analysis is being conducted to help identify
key demographic drivers of changes in the market.
Page 17 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 43: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/43.jpg)
For peer review only
18
What this paper adds:
Cigarettes remain one of the most heavily advertised consumer products. Thus, it is important to
monitor the cigarette marketplace as changes in the relative popularity of brands (positive or
negative) may signal changes in consumer preferences which could be influenced by marketing
and/or product regulations. Cigarette brands with changes in market share should be monitored
to see if there are specific marketing practices or design changes which could be driving large
gains, as this could be a concern for public health. Also, as different companies acquire new
brands market surveillance should be conducted to see how this impacts market share.
This paper presents cigarette brand trends in America as they were reported from 2002 through
2013, which encompasses the period before (2002-2008) and after (2009-2013) Congress
authorized Food and Drug Administration (FDA) regulation of tobacco products.
The findings indicate that certain brands like Pall Mall have made large gains in market share in
a relatively short period since 2007. Our study used a weighting approach which enabled us to
calculate consumption patterns among the survey respondents, an approach that might be better
reflective of the true market share. Using this technique, the data in this manuscript compared
favorably with that found in the Maxwell Report.
Page 18 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 44: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/44.jpg)
For peer review only
19
Acknowledgements:
None.
Data Sharing:
Data for the current study come from the 2002 through 2013 public use datasets of the National
Survey on Drug Use and Health (NSDUH). Datasets are available for download from the
Substance Abuse and Mental Health Data Archive
(http://www.icpsr.umich.edu/icpsrweb/SAMHDA/series/64).
Competing interests:
KMC has served in the past and continues to serve as a paid expert witness for plaintiffs in
litigation against the tobacco industry.
RJO has served as a consultant to the Food and Drug Administration on tobacco regulation as a
member of the Tobacco Products Scientific Advisory Committee
Otherwise, the authors have no competing interests to declare.
Patient consent:
Not applicable.
Ethics approval:
Because this study did not involve human subjects, no ethics approval was required.
Provenance and peer review:
Not commissioned; externally peer reviewed
Page 19 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 45: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/45.jpg)
For peer review only
20
Contributorship statement:
RJO, AS, BVF: conception and design
AS, BVF: data analysis
AS, BVF, CD, KMC, RJO: drafting the manuscript and revising it critically for important
intellectual content
All authors read and approved the final manuscript.
Funding:
No specific funding was received for this research.
Page 20 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 46: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/46.jpg)
For peer review only
21
REFERENCES
1. Hoek, Janet, et al. "Tobacco branding, plain packaging, pictorial warnings, and symbolic consumption." Qualitative health research 22.5 (2012): 630-639.
2. Hafez, Navid, and P. M. Ling. "How Philip Morris built Marlboro into a global brand for
young adults: implications for international tobacco control." Tobacco control 14.4 (2005): 262-271.
3. Federal Trade Commission. "Federal Trade Commission cigarette report for 2011."
Washington, DC (2013).
4. Feighery, Ellen C., et al. "An examination of trends in amount and type of cigarette advertising and sales promotions in California stores, 2002–2005." Tobacco Control 17.2 (2008): 93-98.
5. Chen, Tao, Baohong Sun, and Vishal Singh. "An empirical investigation of the dynamic
effect of marlboro's permanent pricing shift." Marketing Science 28.4 (2009): 740-758.
6. Chaloupka, Frank J., Ayda Yurekli, and Geoffrey T. Fong. "Tobacco taxes as a tobacco control strategy." Tobacco Control 21.2 (2012): 172-180.
7. Burgard JW. A study of Cigarette Advertising. Lorillard Tobacco Company, 1953. Bates No. 04238374-04238433, accessed August 28, 2014: http://legacy.library.ucsf.edu/tid/kmn99d00
8. Tauras, John A., Richard M. Peck, and Frank J. Chaloupka. "The role of retail prices and promotions in determining cigarette brand market shares." Review of industrial
Organization 28.3 (2006): 253-284.
9. Hyland, Andrew, et al. "Higher cigarette prices influence cigarette purchase patterns." Tobacco Control 14.2 (2005): 86-92.
10. Delnevo, Cristine D., et al. "Preference for flavoured cigar brands among youth, young
adults and adults in the USA." Tobacco control (2014): tobaccocontrol-2013.
11. Delnevo, Cristine D., et al. "Examining market trends in the United States smokeless tobacco use: 2005–2011." Tobacco control 23.2 (2014): 107-112.
12. Delnevo, Cristine D., Andrea C. Villanti, and Gary A. Giovino. "Trends in menthol and
non-menthol cigarette consumption in the USA: 2000–2011." Tobacco control (2013): tobaccocontrol-2013.
Page 21 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 47: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/47.jpg)
For peer review only
22
13. Giovino, Gary A., et al. "Differential trends in cigarette smoking in the USA: is menthol slowing progress?." Tobacco control (2013): tobaccocontrol-2013.
14. Cummings, K. Michael, et al. "Discrepancies in cigarette brand sales and adult market
share: are new teen smokers filling the gap?" Tobacco Control 6.suppl 2 (1997): S38.
15. Wayne, G. Ferris, and G. N. Connolly. "How cigarette design can affect youth initiation into smoking: Camel cigarettes 1983-93." Tobacco Control 11.suppl 1 (2002): i32-i39.
16. Prevention, Family Smoking. "DIVISION A--FAMILY SMOKING PREVENTION
AND TOBACCO CONTROL ACT." Public Law 111 (2009): 31.
17. Department of Health and Human Services, 2009. National Survey on Drug Use and Health. Methodology Reports and Questionnaires. http://www.oas.samhsa.gov/nsduh/methods.cfm. [accessed on April 18 2013].
18. Cummings, K. Michael, et al. "Comparison of recent trends in adolescent and adult cigarette smoking behavior and brand preferences." Tobacco control 6.suppl 2 (1997): S31.
19. O’Connor, Richard J., et al. "relationship of Cigarette-related perceptions to Cigarette
Design features: findings from the 2009 ITC US Survey." Nicotine & Tobacco Research (2013): ntt075.
20. Cruz, Tess Boley. "Monitoring the tobacco use epidemic IV. The vector: Tobacco
industry data sources and recommendations for research and evaluation." Preventive
medicine 48.1 (2009): S24-S34.
21. O'Connor, Richard J., et al. "Surveillance methods for identifying, characterizing, and monitoring tobacco products: potential reduced exposure products as an example." Cancer Epidemiology Biomarkers & Prevention 18.12 (2009): 3334-3348.
22. Connolly, Gregory N., and Hillel R. Alpert. "Trends in the use of cigarettes and other
tobacco products, 2000-2007." Jama 299.22 (2008): 2629-2630.
23. Agaku, Israel T., Brian A. King, and Shanta R. Dube. "Current cigarette smoking among adults-United States, 2005–2012." MMWR Morb Mortal Wkly Rep 63.2 (2014): 29-34.
24. Bunnell, R. E., & Ralph, S. Tobacco Use Among Middle and High School Students—United States, 2011–2014.
25. Arrazola, René A., et al. "Tobacco use among middle and high school students—United
States, 2013." MMWR Morb Mortal Wkly Rep 63.45 (2014): 1021-1026.
Page 22 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 48: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/48.jpg)
For peer review only
23
26. Centers for Disease Control and Prevention (CDC. "Tobacco product use among middle and high school students--United States, 2011 and 2012." MMWR. Morbidity and
mortality weekly report 62.45 (2013): 893.
27. Cornelius ME, Driezen P, Fong GT, Chaloupka FJ, Hyland A, Bansal-Travers M, Carpenter MJ, Cummings KM. Trends in the use of premium and discount cigarette brands: Findings from the ITC US surveys (2002-2011). Tob Control. 2014. 23 Suppl 1:i48-53.
28. Cummings, K. Michael, et al. "Use of discount cigarettes by smokers in 20 communities
in the United States, 1988-1993." Tobacco Control 6.suppl 2 (1997): S25.
29. Tynan, Michael A., Daniel Morris, and Tara Weston. "Continued implications of taxing roll-your-own tobacco as pipe tobacco in the USA." Tobacco control (2014): tobaccocontrol-2013.
30. UBS Investment Research: Reynolds American. 6 January 2011.
31. Wells Fargo Statistics. Equity Research: Reynolds American, Inc., 12 February 2013.
32. Reynolds American Inc.. Form 10K Annual report.
http://reynoldsamerican.com/secfiling.cfm?filingID=950144-07-1653&CIK=1275283 Published 2/27/07. (Accessed November 7th, 2014).
33. Trinkets and Trash. Bright now- orange box for ultra-lights. http://trinketsandtrash.org/detail.php?artifactid=5567&page=1. (Accessed August 2014).
34. Reynolds American shareholder report 2009. http://files.shareholder.com/downloads/RAI/3138416115x0x348889/a93bc9f6-7931-482a-8b7d-2b16d03d8a6e/2010-04_RAIs_2009_performance_highlights_underlying_strength_and_resilience.pdf. Published February 4th, 2010. (Accessed November 2014).
35. Reynolds American shareholder report 2011. http://files.shareholder.com/downloads/RAI/3185268357x0x541001/6c157143-28e3-4bb9-ae47-c9ea03df9358/2012-03_RAI_delivers_solid_earnings_growth_in_2011.pdf Published February 8th, 2012. (Accessed November 2014).
36. Reynolds American (RAI) Stock Dips After Announcing Acquisition of Lorillard (LO). The Street. 7/15/2014. http://www.thestreet.com/story/12774129/1/reynolds-american-rai-stock-dips-after-announcing-acquisition-of-lorillard-lo.html (Accessed November 2014).
37. The Maxwell Report: Year End and Fourth Quarter 2013 Sales and Volume Estimates for the U.S. Cigarette Industry. Richmond (VA): John C. Maxwell, Jr., 2014
Page 23 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 49: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/49.jpg)
For peer review only
24
38. DiFranza, Joseph R., et al. "Tobacco acquisition and cigarette brand selection among
youth." Tobacco Control 3.4 (1994): 334.
Page 24 of 24
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 50: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/50.jpg)
For peer review only
TRENDS IN MARKET SHARE OF LEADING CIGARETTE
BRANDS IN THE UNITED STATES: NATIONAL SURVEY ON
DRUG USE AND HEALTH 2002-2013
Journal: BMJ Open
Manuscript ID bmjopen-2015-008813.R2
Article Type: Research
Date Submitted by the Author: 30-Sep-2015
Complete List of Authors: Sharma, Anushree; Roswell Park Cancer Institute, Health Behavior Fix, Brian; Roswell Park Cancer Institute, Health Behavior Delnevo, Cristine; Rutgers School of Public Health,
Cummings, Michael; Medical University of South Carolina, Psychiatry & Behavioral Sciences O'Connor, Richard; Roswell Park Cancer Institute, Dept. of Health Behavior
<b>Primary Subject Heading</b>:
Smoking and tobacco
Secondary Subject Heading: Public health, Epidemiology
Keywords: PUBLIC HEALTH, Substance misuse < PSYCHIATRY, EPIDEMIOLOGY
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open on July 23, 2020 by guest. P
rotected by copyright.http://bm
jopen.bmj.com
/B
MJ O
pen: first published as 10.1136/bmjopen-2015-008813 on 29 January 2016. D
ownloaded from
![Page 51: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/51.jpg)
For peer review only
1
TRENDS IN MARKET SHARE OF LEADING CIGARETTE BRANDS IN THE UNITED
STATES: NATIONAL SURVEY ON DRUG USE AND HEALTH 2002-2013
Anushree Sharma, MPH1 Brian V. Fix, MA1
Cristine Delnevo, PhD, MPH2 K. Michael Cummings PhD, MPH3
Richard J. O’Connor, PhD1
1Department of Health Behavior, Roswell Park Cancer Institute Buffalo, NY, USA 2Department of Health Education and Behavioral Science, Rutgers University School of Public
Health, New Brunswick, New Jersey, USA 3Department of Psychiatry and Behavioral Sciences, Medical University of South Carolina,
Charleston, South Carolina, USA
Corresponding Author: Richard J. O'Connor
Department of Health Behavior Roswell Park Cancer Institute
Elm and Carlton Streets Buffalo, NY 14263
Telephone: 716-845-4517 Fax: 716 845 1265
E-mail address: [email protected]
Keywords: tobacco, surveillance and monitoring, marketing
Word Count:
Page 1 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 52: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/52.jpg)
For peer review only
2
ABSTRACT
Objectives
The main objective of this study is to examine trends in market share for leading cigarette
brands, both before (2002-2008) and after (2009-2013) Food and Drug Administration regulation
of tobacco products.
Design
Data come from the annual National Survey on Drug Use and Health from 2002 through 2013.
Descriptive statistics, cross tabulations, and logistic regression were employed. Data were
weighted to the US population and adjusted for cigarette consumption. Our analysis is restricted
to 164,343 current cigarette smokers who were at least 12 years of age or older, had smoked at
least one cigarette in the 30 days prior to the survey, and reported a usual cigarette brand at the
time of the survey.
Results
Over 12 years, 14 brands comprised over 77% of the cigarette market. Marlboro consistently
held over 38% of the market. Newport held the second highest market share, and increased from
7.2% in 2002 to 10.9% by 2013. Market share of Pall Mall grew by over 400% (1.7% in 2002
vs. 8.9% in 2013), likely aided by the 2009 Federal excise tax increase. No clear associations of
changes in market share with the implementation of FDA’s regulatory authority over tobacco in
2009 were noted.
Conclusions
Page 2 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 53: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/53.jpg)
For peer review only
3
Tracking market share trends offers clues about brand marketing changing preferences of
consumers. Rapidly growing cigarette brands should be monitored to determine if specific
marketing practices or design changes are drivers, as these could represent public health
concerns. Monitoring trends in cigarette market share could inform regulatory decision making
efforts related to marketing and advertising.
ARTICLE SUMMARY
Strengths and limitations of this study
• One of the strengths of this analysis is the large sample size afforded by NSDUH.
• Construction and use of cigarette consumption-based weights offers a reflection of
market share accounting for different consumption patterns.
• One of the limitations of the NSDUH data is that detail on specific sub varieties (e.g.,
strength, length, flavor) is limited.
• As with all cross sectional data, our inability to make inferences about brand switching is
limited.
• A final limitation, to be addressed in a follow-up analysis, is that this manuscript did not
address demographic correlates of market share trends.
Page 3 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 54: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/54.jpg)
For peer review only
4
INTRODUCTION
Cigarettes remain one of the most heavily advertised consumer products. Because tobacco
manufacturers have a keen interest in driving consumers to select their products over their
competitors, they invest heavily to promote specific brands using marketing via direct mail,
cigarette packaging, point of sale, and advertising via media channels [1,2]. Because the Master
Settlement Agreement (MSA) closed off many traditional advertising venues, the majority of this
spending [approximately $7 billion] is on price discounts [3,4,5]. The amount spent on cigarette
advertising and promotion by the largest cigarette companies in the United States rose from
$8.05 billion in 2010 to $8.37 billion in 2011, due mainly to an increase in spending on price
discounts, or discounts paid to cigarette retailers or wholesalers in order to reduce the price of
cigarettes to consumers [3,6].
The cigarette industry’s own internal business records acknowledge the importance of
advertising, observing that “…every consumer is presold, specifying his brand by name…the rise
and fall of every brand of consequence has been traced in detail and their year to year success or
failure shown to be the direct result of consumer advertising” [7]. Thus, it is important to
monitor the cigarette marketplace as changes in the relative popularity of brands (positive or
negative) may signal changes in consumer preferences which could be influenced by marketing
and/or product regulations [8,9]. Recent studies have addressed the trends of other tobacco
products in the market to identify important shifts [10,11] -- for example, while cigarette sales
have declined in the overall market, the sales of flavored cigars have continued to increase.10
Other studies have demonstrated that menthol cigarettes have held relatively constant market
Page 4 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 55: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/55.jpg)
For peer review only
5
share compared to non-menthol cigarettes; [12,13] an important finding given young smokers are
more likely to smoke mentholated cigarettes compared to non-mentholated cigarettes [13].
Overall, monitoring trends in tobacco brands is important in as much as it could signal changes
in consumer behaviors that may warrant further investigation [14,15]. In addition, monitoring
trends in market share could be used to inform regulatory decision-making efforts.
Understanding how market share of cigarettes changes in response to regulation could serve as a
useful model for understanding and/or predicting how newly introduced products might perform
once they are introduced into the marketplace.
The primary aim of this analysis was to assess trends in cigarette brand market share via a
secondary data analysis of a large, nationally representative dataset (the National Survey on Drug
Use and Health). This paper presents cigarette brand trends in America as they were reported
from 2002 through 2013, which encompasses the period before (2002-2008) and after (2009-
2013) Congress authorized Food and Drug Administration (FDA) regulation of tobacco products
[16]. These newly introduced regulations, including a ban on descriptive terms such as “light”
and “mild”, as well as a 2009 federal excise tax increase on cigarettes, have the potential to cause
changes in the market share of cigarette brands. In addition, tobacco manufacturers of brands
with a larger market share prior to the introduction of these regulations might be better
positioned to withstand the regulatory burden than smaller manufacturers, helping to maintain
their portion of the market.
METHODS
Data source
Page 5 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 56: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/56.jpg)
For peer review only
6
Data for the current study come from the 2002 through 2013 public use datasets of the National
Survey on Drug Use and Health (NSDUH), a nationally representative cross-sectional survey
that assesses substance use behaviors in the US civilian, non-institutionalized population aged
12+ [17]. Each year, approximately 70,000 eligible individuals complete the survey. The data
before 2002 was collected using a different sampling frame, thus previous time periods were not
included in our analysis. Thus, at the time the study was conducted researchers had access to
NSDUH data from 2002 -2013. Data were analyzed in 2014.
NSDUH uses a 50 state design with independent, multistage area probability samples for each
State and the District of Columbia to provide nationally representative data regarding tobacco
use, alcohol use and other illicit drug use. Data are collected using computer assisted personal
interviewing for basic questions and audio computer-assisted self-interviewing to complete
questions on substance use to encourage more truthful reporting [17]. Complete information
regarding data collection methods can be found online at
{http://www.oas.samhsa.gov/nsduh/methods.cfm}
Cigarette brand measures
Our analysis is restricted to 164,343 current cigarette smokers who were at least 12 years of age
or older, and had smoked at least one cigarette in the 30 days prior to the survey. Participants
were asked to report if they had smoked a cigarette (even a part of a cigarette) in the past 30
days. If they acknowledged they had smoked in the past 30 days, they were then asked to report
on the brand of cigarette they smoked most often. Using this usual brand variable, we conducted
Page 6 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 57: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/57.jpg)
For peer review only
7
an initial examination of frequencies and focused our analyses to those brands that were among
the top 10 brands for any of the years during the study period (2002-2013), resulting in a ‘short
list’ of 14 brands. Note that our analysis focuses only on brand families, not sub-brands (e.g.,
full-flavor vs. ‘gold’), as the survey does not gather precise brand variant data.
Weight adjustment
The default weight in the public use dataset (ANALWT3) weights the sample to the US
population. Since we wanted to do an analysis looking at the market share for the cigarette
brands, we adjusted these sampling weights to better reflect consumption patterns among the
sample. ANALWT3 was multiplied by the number of cigarettes consumed on average each day,
and by the number of days in the past month that participants reported smoking. Thus, the
adjusted weight reflects the number of cigarettes smoked over the past 30 days among current
smokers. The weight adjustment allows us to take into account consumption patterns among
smokers and gives us a better indicator of the overall market with regards to the number of actual
cigarettes smoked.
Statistical Analysis
We used SUDAAN version 11 (RTI International, Research Triangle Park, NC) running in SAS
version 9.4 (SAS Institute, Cary NC) to account for the complex sampling frame. Once the data
was collected, we determined the market share of all the top 10 cigarette brands using a crosstabs
procedure which took into account the new weight variable we had constructed to account for the
actual number of cigarettes smoked with regards to overall market share. We also conducted a
Page 7 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 58: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/58.jpg)
For peer review only
8
trend analysis to look at changes among individual cigarette brands over the eleven year period
using logistic regression. We observed a quadratic trend with Pall Mall, thus we assessed the
quadratic trend for Pall Mall using a year*year term in the logistic regression model.
RESULTS
The results of the overall cigarette market share analysis are presented in table 1. Marlboro
consistently held over 38% of the market in any given year and has been relatively stable in
terms of its overall share of the market. Newport held the second highest market share overall,
and increased over time from 7.23% in 2002 to 10.89% by 2013. More dramatic are the gains of
Pall Mall, which in 2002 commanded only 1.66% of the overall market share, but by 2013 had
grown to 8.92%, an increase of 437%. Pall Mall appears to have grown most after 2007 -
increasing 239% in only 6 years. Another brand with large growth is American Spirit. It
increased from a negligible 0.26% in 2002 to over 1.70% in 2013, representing a relative growth
of 554% over this time span. Camel, Pall Mall, and American Spirit were all owned by
Reynolds American in 2013, and their combined market share was approximately 18%. Market
share of other brands such as Doral and Basic declined between 2002-2013.
Table 1: Market Share of brands appearing in the top 10 in any year: NSDUH 2002-2013
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Percent
change
2002-2013
American Spirit RJRa
0.26 0.47 0.30 0.48 0.63 0.63 0.75 0.98 1.35 1.04 1.47 1.70 +553.8%
Basic
PMUSAb 6.10 4.67 5.29 5.62 5.88 5.76 4.18 4.37 3.17 2.45 1.54 2.01 -67.1%
Camel
RJR 6.24 6.35 7.21 6.36 7.50 7.92 8.11 8.32 7.97 7.79 7.34 7.77 +24.5%
Doral
RJR 6.77 6.59 5.17 3.98 4.19 4.45 3.61 4.53 1.62 1.90 0.70 0.73 -89.2%
GPC
RJR 2.64 2.20 2.52 1.83 1.56 1.74 1.06 1.22 0.94 0.79 0.64 0.34 -87.1%
Page 8 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 59: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/59.jpg)
For peer review only
9
Kool
RJR 3.10 3.26 2.86 2.55 3.06 3.25 2.93 2.53 2.96 2.51 2.31 1.58 -49.0%
Marlboro
PMUSA 38.44 38.24 39.22 39.60 39.19 39.28 41.02 39.34 41.21 39.17 38.34 38.10 -0.9%
Newport
Lorillardc 7.23 7.54 7.66 7.26 8.97 8.42 9.06 8.78 9.77 10.14 10.93 10.89 +50.6%
Pall Mall
RJR 1.66 1.68 2.35 1.97 2.06 2.63 3.13 4.77 6.93 8.11 8.93 8.92 +437.4%
Parliament
PMUSA 0.96 1.36 1.30 1.48 1.38 1.31 1.50 0.94 1.22 1.49 0.64 0.92 -4.2%
Salem
RJR 2.32 2.29 2.63 1.43 1.87 1.96 1.90 0.94 1.43 1.16 1.09 0.96 -58.6%
USA Gold
Commonwealth 1.20 1.86 1.24 2.34 2.36 2.61 2.08 2.20 2.16 1.49 1.60 1.37 +14.2%
Virginia Slims
PMUSA 2.92 2.02 2.16 1.53 1.65 2.09 1.68 1.65 1.19 1.13 1.35 0.59 -79.8%
Winston
RJR 3.91 3.92 2.99 4.14 3.17 3.04 3.12 2.35 2.08 2.53 2.38 2.11 -46.0%
All Other
Reported Brands 16.27 17.55 17.10 19.43 16.52 14.92 15.87 17.08 16.00 18.3 20.76 22.02 +35.3%
a RJR: RJ Reynolds Tobacco Company
b PMUSA: Phillip Morris USA
cIn 2014, RJR proposed to acquire Lorillard, including the Newport brand. As part of this deal,
RJR would divest other brands including Winston, Salem, and Kool to Imperial Tobacco.
Trend tests
Most of the brands in the analysis had some fluctuations regarding their market share from any
given year to the next. However, in terms of the overall patterns the linear trend tests which
were conducted for Newport, Pall Mall, and American Spirit using logistic regression all
indicated that year was significantly associated with odds of brand selection. The P value for the
Wald F test was p <0 .0001. For Camel, the P value for the Wald F test was p=0.001. (Year was
treated as a continuous variable in the model). The trend test for Marlboro was not significant
with a p value for the Wald F test = .65. We also noticed (by visual inspection) that Pall Mall
and Basic had nonlinear growth. Quadratic trend tests for Pall Mall and Basic showed
significance at the p <0.0001 level.
Page 9 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 60: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/60.jpg)
For peer review only
10
Subtypes
A crude examination of how subtypes (full flavor vs. all other variants) might influence overall
trends was conducted. Between 2002 and 2004, participants were asked “During the past 30
days, what type of cigarettes did you smoke most often?” The response options were Lights,
Ultralights or Full Flavor. Between 2005 and 2013, participants were asked the same question
but there was a new response added for “Mediums”. Due to the difference in the manner the
question was asked, we elected to analyze the subtypes as full flavor compared to all other
subtypes. The market share of Pall Mall in 2002 was comprised of 72.2% full flavor, compared
to 42.1% in 2013, a substantial decline. In contrast, for Camel, the proportion of their market
share made up of full flavor subtypes increased from 37.1% to 48.9%. For Marlboro, Newport,
American Spirit the proportion of their market share accounted for by full flavor variants was
relatively stable between 2002 and 2013. A similar analysis examined how menthol cigarettes
might influence market share trends for the 2004-2013 period (a different question wording was
used in 2002-2003). The menthol proportion for Pall Mall increased from 11.7% in 2004 to
21.1% in 2013. The menthol fraction of Camel increased substantially over the same period
(5.8%-32.7%). The share of Newport use attributed to menthol decreased from 99.3% to 91.2%
(which corresponds to the introduction of a non-menthol version of Newport in 2010). Menthol
represents a relatively small, but growing, proportion of the Marlboro market (10% in 2004 vs
14.5% in 2013).
DISCUSSION
We used a very large, nationally representative dataset to monitor market share for the most
popular cigarette brands in America during a key time period. The data here indicate growth and
Page 10 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 61: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/61.jpg)
For peer review only
11
decline in certain brands over last 12 years. While there are no clear associations with the
implementation of FDA’s regulatory authority over tobacco in 2009, this time period saw a
major recession in 2007 and an increased federal excise tax in 2009 [18]. Driven in part by these
economic conditions, the data indicated rapid growth in market share of brands like Pall Mall.
Pall Mall was acquired by RJR and repositioned for marketing purposes as a premium quality
brand at a discount price [19]. The timing of the marketing was critical to the growth of Pall
Mall because it was positioned as an attractive brand for smokers who might have been looking
to maximize on their cigarette quality for a low price [19, 20, 21]. At the same time, longitudinal
data showed that some smokers of premium brands were paying less for their cigarettes than
those buying identified discount products, [19] suggesting the existence of substantial price
discounting, even for their premium brands, which may have preserved their market share
despite the poor economy.
Changes in marketing practices play a key role in the market share changes that are observed in
our data. For example company reports by RJ Reynolds in 2007 indicate that they intended to
focus their efforts on a few key brands, including “…two premium brands, CAMEL and KOOL,
and a value brand, PALL MALL.” [22]. RJR reformulated and reintroduced the brand as a
premium discount (old time premium name with a low price). The new packaging and line
extensions for Pall Mall reflected a brighter, more colorful design, and was advertised to
consumers using ads placed in prominent magazines such as Entertainment Weekly, Glamour,
and Vanity Fair [23]. This helped to make the brand more prominent, marketed to consumers as
a brand that “differentiates itself from other value offerings by delivering a high-quality, longer-
lasting cigarette at an affordable price” and due to these reasons the brand “retain(s) a high
Page 11 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 62: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/62.jpg)
For peer review only
12
percentage of adult smokers who try the brand.” [24]. These changes appear to have been
effective in promoting uptake of the brand among current smokers, as market share has increased
substantially since 2007. Timing was critical to Pall Mall’s success given the federal tax hike on
cigarettes in 2009 [19, 20, 21] positioning as a premium discount may have attracted smokers.
Findings are mixed with respect to traditional premium brands. Marlboro has maintained its
market dominance, controlling the largest proportion of the market share (between 38.2% and
41.2%). However, despite the proliferation of new sub varieties of Marlboro over the past
decade (e.g., Skyline, Black, Blend 54), it does not seem to have gained additional brand share.
PM USA appears to be consolidating its marketing efforts behind Marlboro, as its other major
brands (Basic, Parliament, and Virginia Slims) declined in market share. Basic was a branded
discount and historically attracted price-seeking smokers who might have otherwise smoked
Marlboro; the sharp decline in this brand may be attributable in part to promoting new variants
and price discounting of Marlboro.
Reynolds American owns two other major growth brands: Camel and American Spirit. Our
findings reflecting the overtaking of Camel by Pall Mall and significant growth of American
Spirit are corroborated by Reynolds-American investor reports [25]. These reports also predict
these brands to have continued growth in the years ahead [25]. American Spirit (produced by
RAI subsidiary Santa Fe Natural Tobacco Company) has been positioned as ‘natural’ and
‘additive-free’ and leverages Native American imagery to connote connection to nature. Indeed,
many consumers view such cigarettes as less hazardous [26, 27]. American Spirit has recently
attracted attention from regulators on the basis of its positioning, with FDA sending warning
Page 12 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 63: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/63.jpg)
For peer review only
13
letters calling those descriptors unauthorized modified risk claims. Newport, the leading
menthol brand, continues to gain market share in a near-linear fashion. This appears to be the
primary reason that Reynolds American announced in 2014 it would be acquiring Lorillard [28].
This deal was approved in mid-2015, and Reynolds now owns the primary growth cigarette
brands in the US market, while shedding declining ones (Winston, Kool, and Salem were sold to
Imperial Tobacco). At the same time, the possibility exists that new ownership could revive a
flagging brand like Winston through aggressive marketing, as Reynolds appears to have done
with Pall Mall (which it acquired by merger with Brown and Williamson in 2004, which had
acquired it from American Tobacco in 1994).
Age also plays a role in brand share. Younger smokers tend to initiate with and prefer premium
cigarettes brands, so as fewer young people take up smoking (as has happened in the past
decade), the brands popular with older smokers may become more dominant [29, 30]. Older,
mainly white smokers with lower incomes, switched to discounts and are aging out of the market
(i.e., they will quit or die) [14,19]. Purely discount brands like Basic, GPC, and Doral, which
attracted substantial share in the 1980s and 1990s [31], lack marketing support and thus a
pipeline of replacement smokers to keep them viable. Premium brands like Marlboro, Camel,
Newport, and American Spirit attract new smokers and maintain variants to retain older smokers
[14]. The increase in market share among menthol variants of Pall Mall, Camel, and Marlboro is
noteworthy given previous research indicating that younger smokers are more likely smoke
menthols. A previously published analysis of NSDUH survey data from 2004 through 2010
found that menthol cigarettes were more commonly used by younger smokers -- 56.7% of 12-17
year old smokers used a menthol brand vs 30% – 35% of smokers over 25 [13].
Page 13 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 64: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/64.jpg)
For peer review only
14
It is an important distinction to make that while overall cigarette consumption is decreasing over
the years, there are numerous other types of tobacco products like e-cigarettes, cigarillos and
moist snuff which are increasing in popularity and offering an alternative to people who may be
cutting down on cigarette consumption due to increased regulations and economic pricing
[11,32]. The overall cigarette market share is affected by policy and regulations and the changes
in market share are reflective of these forces. It is thus imperative to monitor changes that are
occurring in the overall cigarette market shares [33].
Shifts in market share could be the result of tobacco control policies enacted by the government
or they could be due to changes in marketing practices by the cigarette manufacturers. It is
important to understand factors associated with large gains, as these could represent concerns for
public health [15, 34, 35]. For example, if substantial growth in the market share of a certain
brand is observed among adolescents, marketing practices for the brand could come under
scrutiny from the FDA. In addition, monitoring trends in cigarette market share could be used to
inform regulatory decision making efforts with respect to new products introduced into the
marketplace. Understanding how market share of cigarettes changes in response to marketing
and advertising regulation could serve as a useful model for predicting how the marketing of
substantially equivalent products might be regulated. Finally, as different companies acquire new
brands, market surveillance may reveal how new ownership impacts market share.
In terms of public health, the implication is that changes in consumer behavior can be influenced
by changes in marketing, leading to certain brands or products gaining market share. Tracking
the trends in the market share of cigarette brands offers clues about the success of brand
Page 14 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 65: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/65.jpg)
For peer review only
15
marketing and provides indications about changing preferences of consumers [32, 33]. Our
study captured trends over a 12 year period between 2002 and 2013, and offers perspective on
how changing market conditions were associated with changes in brand market share. The total
cigarette consumption in the US has been declining steadily since 1998 [36]. Between the period
of 2005 and 2013 the largest declines were seen in the adult age group of 18-24 year olds [37].
However, this decline in the use of cigarettes may be partially offset by the increasing popularity
of other tobacco products like cigarillos [10, 37]. This is especially true among young people. A
recent study indicated that a rise in use of e-cigarettes and hookahs appears to be offsetting
decreases in the use of other tobacco products, resulting in no change in overall use of tobacco
products among middle and high school students. [38]
Strengths and Limitations of Study
One of the strengths of this analysis is the large sample size afforded by NSDUH. Additionally,
construction and use of cigarette consumption-based weights offers a reflection of market share
accounting for different consumption patterns. Indeed, our data compare favorably to Maxwell
Report estimates of brand market share for 2013 [39] -- we are within 1.5 percentage point of the
Maxwell estimate for growth brands, except Marlboro (-2.7%), with a mean absolute deviation
across the six brands report in the 2013 Maxwell Report of 1.0 (see Table 2). This suggests that
the cigarette consumption-adjusted weighting procedure may be useful moving forward as a way
to track not only brand preference, but also market share/sales.
Table 2: Comparison of market share, 2013 Maxwell Report and National Survey of Drug Use
and Health
2013 2013 Difference
Page 15 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 66: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/66.jpg)
For peer review only
16
NSDUH Maxwell
American Spirit 1.7 1.3 0.4
Camel 7.8 7.6 0.2
Marlboro 38.1 40.8 -2.7
Newport 10.9 12.2 -1.3
Pall Mall 8.9 7.8 1.1
USA Gold 1.4 1.1 0.3
Mean Absolute Deviation
1.00
One of the limitations of the NSDUH data is that detail on specific sub varieties (e.g., strength,
length, flavor) is limited. For example, we cannot determine which of the multiple varieties of
Marlboro cigarettes had the highest prevalence. The survey asks a question regarding the type of
cigarette used in the past 30 days with response options of lights, ultra lights, and full flavor
cigarettes in the 2002-2004 surveys (CIG30TYP). The response options were modified
beginning with the 2005 survey and continuing through 2013 to ask about lights, ultra lights,
medium and full flavored cigarettes (CIG30TPE). With the FDA gaining authority to regulate
tobacco in 2009, the use of descriptors such as “light” and “ultra-light” has been phased out [16].
Asking questions related to sub-varieties of specific brands using these response options presents
a potential source of misclassification because smokers might not use these options to describe
their cigarettes. Further, asking whether a participant has smoked menthol in the past 30 days
using “yes” or “no” response options creates a possible disconnect between their usual brand and
whether that brand is menthol or non-menthol. Future surveys should consider more precise
methods of assessing brand preferences.
Another limitation, as with all cross sectional data, is our inability to make inferences about
brand switching. As such, these data cannot be used to examine whether, for example, former
Page 16 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 67: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/67.jpg)
For peer review only
17
Salem smokers are migrating to Newport. A final limitation is that this analysis did not examine
demographic correlates of market share trends. Consumer characteristics can also play a role in
determining market changes [2, 40]. A subsequent analysis is being conducted to help identify
key demographic drivers of changes in the market.
What this paper adds:
Cigarettes remain one of the most heavily advertised consumer products. Thus, it is important to
monitor the cigarette marketplace as changes in the relative popularity of brands (positive or
negative) may signal changes in consumer preferences which could be influenced by marketing
and/or product regulations. Cigarette brands with changes in market share should be monitored
to see if there are specific marketing practices or design changes which could be driving large
gains, as this could be a concern for public health. Also, as different companies acquire new
brands market surveillance should be conducted to see how this impacts market share.
This paper presents cigarette brand trends in America as they were reported from 2002 through
2013, which encompasses the period before (2002-2008) and after (2009-2013) Congress
authorized Food and Drug Administration (FDA) regulation of tobacco products.
The findings indicate that certain brands like Pall Mall have made large gains in market share in
a relatively short period since 2007. Our study used a weighting approach which enabled us to
calculate consumption patterns among the survey respondents, an approach that might be better
reflective of the true market share. Using this technique, the data in this manuscript compared
favorably with that found in the Maxwell Report.
Page 17 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 68: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/68.jpg)
For peer review only
18
Acknowledgements:
None.
Data Sharing:
No additional data available.
Competing interests:
KMC has served in the past and continues to serve as a paid expert witness for plaintiffs in
litigation against the tobacco industry.
RJO has served as a consultant to the Food and Drug Administration on tobacco regulation as a
member of the Tobacco Products Scientific Advisory Committee
Otherwise, the authors have no competing interests to declare.
Patient consent:
Not applicable.
Ethics approval:
Because this study did not involve human subjects, no ethics approval was required.
Provenance and peer review:
Not commissioned; externally peer reviewed
Contributorship statement:
RJO, AS, BVF: conception and design
Page 18 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 69: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/69.jpg)
For peer review only
19
AS, BVF: data analysis
AS, BVF, CD, KMC, RJO: drafting the manuscript and revising it critically for important
intellectual content
All authors read and approved the final manuscript.
Funding:
No specific funding was received for this research.
REFERENCES
1. Hoek, Janet, et al. "Tobacco branding, plain packaging, pictorial warnings, and symbolic consumption." Qualitative health research 22.5 (2012): 630-639.
2. Hafez, Navid, and P. M. Ling. "How Philip Morris built Marlboro into a global brand
for young adults: implications for international tobacco control." Tobacco control 14.4 (2005): 262-271.
3. Federal Trade Commission. "Federal Trade Commission cigarette report for 2011."
Washington, DC (2013).
4. Feighery, Ellen C., et al. "An examination of trends in amount and type of cigarette advertising and sales promotions in California stores, 2002–2005." Tobacco Control 17.2 (2008): 93-98.
Page 19 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 70: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/70.jpg)
For peer review only
20
5. Chen, Tao, Baohong Sun, and Vishal Singh. "An empirical investigation of the dynamic effect of marlboro's permanent pricing shift." Marketing Science 28.4 (2009): 740-758.
6. Chaloupka, Frank J., Ayda Yurekli, and Geoffrey T. Fong. "Tobacco taxes as a tobacco
control strategy." Tobacco Control 21.2 (2012): 172-180.
7. Burgard JW. A study of Cigarette Advertising. Lorillard Tobacco Company, 1953. Bates No. 04238374-04238433, accessed August 28, 2014: http://legacy.library.ucsf.edu/tid/kmn99d00
8. Tauras, John A., Richard M. Peck, and Frank J. Chaloupka. "The role of retail prices and promotions in determining cigarette brand market shares." Review of industrial
Organization 28.3 (2006): 253-284.
9. Hyland, Andrew, et al. "Higher cigarette prices influence cigarette purchase patterns." Tobacco Control 14.2 (2005): 86-92.
10. Delnevo, Cristine D., et al. "Preference for flavoured cigar brands among youth, young
adults and adults in the USA." Tobacco control (2014): tobaccocontrol-2013.
11. Delnevo, Cristine D., et al. "Examining market trends in the United States smokeless tobacco use: 2005–2011." Tobacco control 23.2 (2014): 107-112.
12. Delnevo, Cristine D., Andrea C. Villanti, and Gary A. Giovino. "Trends in menthol and
non-menthol cigarette consumption in the USA: 2000–2011." Tobacco control (2013): tobaccocontrol-2013.
13. Giovino, Gary A., et al. "Differential trends in cigarette smoking in the USA: is
menthol slowing progress?." Tobacco control (2013): tobaccocontrol-2013.
14. Cummings, K. Michael, et al. "Discrepancies in cigarette brand sales and adult market share: are new teen smokers filling the gap?" Tobacco Control 6.suppl 2 (1997): S38.
15. Wayne, G. Ferris, and G. N. Connolly. "How cigarette design can affect youth initiation
into smoking: Camel cigarettes 1983-93." Tobacco Control 11.suppl 1 (2002): i32-i39.
16. Prevention, Family Smoking. "DIVISION A--FAMILY SMOKING PREVENTION AND TOBACCO CONTROL ACT." Public Law 111 (2009): 31.
17. Department of Health and Human Services, 2009. National Survey on Drug Use and
Health. Methodology Reports and Questionnaires. http://www.oas.samhsa.gov/nsduh/methods.cfm. [accessed on April 18 2013].
Page 20 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 71: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/71.jpg)
For peer review only
21
18. Tynan, Michael A., Daniel Morris, and Tara Weston. "Continued implications of taxing roll-your-own tobacco as pipe tobacco in the USA." Tobacco control (2014): tobaccocontrol-2013.
19. Cornelius ME, Driezen P, Fong GT, Chaloupka FJ, Hyland A, Bansal-Travers M, Carpenter MJ, Cummings KM. Trends in the use of premium and discount cigarette brands: Findings from the ITC US surveys (2002-2011). Tob Control. 2014. 23 Suppl 1:i48-53.
20. UBS Investment Research: Reynolds American. 6 January 2011.
21. Wells Fargo Statistics. Equity Research: Reynolds American, Inc., 12 February 2013.
22. Reynolds American Inc.. Form 10K Annual report. http://reynoldsamerican.com/secfiling.cfm?filingID=950144-07-1653&CIK=1275283 Published 2/27/07. (Accessed November 7th, 2014).
23. Trinkets and Trash. Bright now- orange box for ultra-lights. http://trinketsandtrash.org/detail.php?artifactid=5567&page=1. (Accessed August 2014).
24. Reynolds American shareholder report 2009. http://files.shareholder.com/downloads/RAI/3138416115x0x348889/a93bc9f6-7931-482a-8b7d-2b16d03d8a6e/2010-04_RAIs_2009_performance_highlights_underlying_strength_and_resilience.pdf. Published February 4th, 2010. (Accessed November 2014).
25. Reynolds American shareholder report 2011. http://files.shareholder.com/downloads/RAI/3185268357x0x541001/6c157143-28e3-4bb9-ae47-c9ea03df9358/2012-03_RAI_delivers_solid_earnings_growth_in_2011.pdf Published February 8th, 2012. (Accessed November 2014).
26. Kelly, K.J. and Manning, K. “The effects of natural cigarette claims on adolescents’ brand-related beliefs, attitudes, and intentions.” Journal of Health Communication September 19(9) (2014) 1064-1075.
27. Czoli, C.D. and Hammond, D. “Cigarette packaging: Youth perceptions of “natural” cigarettes, filter references, and contraband tobacco.” Journal of Adolescent Health January 54(1) (2014) 33-39.
28. Reynolds American (RAI) Stock Dips After Announcing Acquisition of Lorillard (LO). The Street. 7/15/2014. http://www.thestreet.com/story/12774129/1/reynolds-american-rai-stock-dips-after-announcing-acquisition-of-lorillard-lo.html (Accessed November 2014).
Page 21 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 72: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/72.jpg)
For peer review only
22
29. Arrazola, René A., et al. "Tobacco use among middle and high school students—United States, 2013." MMWR Morb Mortal Wkly Rep 63.45 (2014): 1021-1026.
30. Centers for Disease Control and Prevention (CDC. "Tobacco product use among middle and high school students--United States, 2011 and 2012." MMWR. Morbidity
and mortality weekly report 62.45 (2013): 893.
31. Cummings, K. Michael, et al. "Use of discount cigarettes by smokers in 20 communities in the United States, 1988-1993." Tobacco Control 6.suppl 2 (1997): S25.
32. Cruz, Tess Boley. "Monitoring the tobacco use epidemic IV. The vector: Tobacco industry data sources and recommendations for research and evaluation." Preventive
medicine 48.1 (2009): S24-S34.
33. O'Connor, Richard J., et al. "Surveillance methods for identifying, characterizing, and monitoring tobacco products: potential reduced exposure products as an example." Cancer Epidemiology Biomarkers & Prevention 18.12 (2009): 3334-3348.
34. Cummings, K. Michael, et al. "Comparison of recent trends in adolescent and adult cigarette smoking behavior and brand preferences." Tobacco control 6.suppl 2 (1997): S31.
35. O’Connor, Richard J., et al. "relationship of Cigarette-related perceptions to Cigarette
Design features: findings from the 2009 ITC US Survey." Nicotine & Tobacco
Research (2013): ntt075.
36. Connolly, Gregory N., and Hillel R. Alpert. "Trends in the use of cigarettes and other tobacco products, 2000-2007." Jama 299.22 (2008): 2629-2630.
37. Agaku, Israel T., Brian A. King, and Shanta R. Dube. "Current cigarette smoking
among adults-United States, 2005–2012." MMWR Morb Mortal Wkly Rep 63.2 (2014): 29-34.
38. Bunnell, R. E., & Ralph, S. Tobacco Use Among Middle and High School Students—United States, 2011–2014.
39. The Maxwell Report: Year End and Fourth Quarter 2013 Sales and Volume Estimates
for the U.S. Cigarette Industry. Richmond (VA): John C. Maxwell, Jr., 2014
Page 22 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from
![Page 73: TRENDS IN MARKET SHARE OF LEADING …...For peer review only 4 INTRODUCTION Cigarettes remain one of the most heavily advertised consumer products. Because tobacco manufacturers have](https://reader033.vdocuments.site/reader033/viewer/2022060500/5f1a45090fb3521e72006cfa/html5/thumbnails/73.jpg)
For peer review only
23
40. DiFranza, Joseph R., et al. "Tobacco acquisition and cigarette brand selection among
youth." Tobacco Control 3.4 (1994): 334.
Page 23 of 23
For peer review only - http://bmjopen.bmj.com/site/about/guidelines.xhtml
BMJ Open
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960
on July 23, 2020 by guest. Protected by copyright.
http://bmjopen.bm
j.com/
BM
J Open: first published as 10.1136/bm
jopen-2015-008813 on 29 January 2016. Dow
nloaded from