PESTLE Analysis and Five Forces Analysis

1. JOHN PLAYER & SONS

2. COMPANY HISTORY
The story of John Player Gold
Leaf has to start from the
story of its founder, John
Player. An enterprising
businessman, John Player
started a small tobacco
selling business in 1877 and
turned it into a thriving
cigarette company, John
Player and Sons.

3.  John Player Tobacco produces over 320 billion cigarettes
per year, has 51 factories worldwide and its products are
sold in over 160 countries.

4. PLAYER'S CIGARETTES ARE AVAILABLE IN THE
FOLLOWING VARIETIES:
 John Player Special Red
 John Player Special Blue
 John Player Special Silver
 John Player Halfzware Shag

5. PESTLE ANALYSIS
 A PESTEL analysis is
a framework or tool
used by marketers
to analyse and
monitor the macro-
environmental
(external marketing
environment)
factors that have an
impact on an
organization.

6. POLITICAL
Source: Central Bank of Sri Lanka Annual reports 2008 to
2012
0
100000
200000
300000
400000
500000
600000
700000
2009 2010 2011 2012
Tax Income
Tobacco tax

7. ECONOMIC
PER CAPITA CONSUMPTION OF JOHN PLAYER

8. ANNUAL INFLATION AND TOBACCO PRICE LEVELS
 Inflation can be used as a comparable tool with the
prices of cigarettes under John Player
brand. That is the price level changes along with the
inflation will compare the effect
of price changes.
0%
5%
10%
15%
20%
2008 2009 2010 2011 2012 2013
Price Precentage
Price
Precentage

9. SOCIAL
 The current anti-tobacco era began with medical and
scientific research linking tobacco use to a variety of
health, environmental, and social problems.

10. SOCIAL
 Trend of John Player Tobacco in Srilanka
38%
39%
40%
41%
42%
43%
44%
45%
46%
2008 2009 2010 2011 2012 2013
Tobacco consumption among men
above the age group of 15 years
Precentage

11. TECHNOLOGICAL
 New Flavours
Player's Rich Flavour
Player's Smooth Flavour
Player's Plain Flavour
Player's Black & Red Flavour
Player's Black & Gold Flavour
Player's Black & Silver Flavour
John Player Special Flavour
John Player Standard Bold Flavour
John Player Standard Blue Flavour
John Player Standard Silver Flavour
Player's Special Blend Flavour

12. ECOLOGICAL

13.  Advertisements are not permitted
in the electronic media
 New act, ‘National Authority on Alcohol and
Tobacco’

14. FIVE FORCES ANALYSIS
This model identifies and
analyzes 5 competitive
forces that shape every
industry, and helps
determine an industry's
weaknesses and strengths.

15. INTENSITY OF COMPETITIVE RIVALRY(MODERATE)

16. BARGAINING POWER OF BUYERS(HIGH)
•Having large number
of deferent brands.
•Cheaper products.
•Health problems.
•Environmentel problem

17. BARGAINING POWER OF SUPPLIERS(HIGH)
 In John Player company they don’t have their own
factories to produce cigarettes, Their production is doing
by The Imperial Tobacco Company. So their only supplier
is Imperial Tobacco Company….

18. THREATS OF SUBSTITUTES(HIGH)
• Herbal Cigarettes
• E-cigarettes
• Nicotine patches
• Chewing gum

19. THREATS OF NEW ENTRANCE(LOW)
 There are less possibilities to intiate new tobacco
companies due to the refusion of society and less
chances provided by other tobacco companies.

20. Q N A