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Table 1Table 1: VolumeU.S. Cigarette
Industry200920102011201220132014Total U.S. Volume (in
Billions)315.7303.6293.1286.3273.2264.6Growth Rate (%)-----
Table 2Table 2: Market ShareTop Companies in U.S. Cigarette
IndustryTop Companies in U.S. Market2014 Unit Market Share
(%)# Units Sold by Company (Billions) Altria Group42.40%
Reynolds American23.70% Lorillard Inc.12.50% British
American5.30% Philip Morris International4.10% Imperial
Tobacco3.70% Vector Group3.00% Japan Tobacco1.30%
Other Companies4.00%Three-Firm Concentration
RatioHerfindahl Index (HHI)
Table 3Table 3: 2014 RPMs (Revenue Passenger Miles)
UnitsU.S. Domestic Airline Industry - Domestic2014 Units Sold
(RPM) Southwest Airlines108,032.44 Delta Air
Lines98,662.28 American Airlines125,670.39 JetBlue
Airways38,583.01 SkyWest31,417.60 Air Canada28,110.48
Alaska Airlines27,559.30 Republic11,574.90 WestJet
Airlines20,945.06 Hawaiian Airlines13,779.65 American
Eagle22,047.44 Spirit Airlines Inc.14,330.83 Allegiant
Air7,716.60 Horizon2,755.93Three-Firm Concentration
RatioHerfindahl Index (HHI)
Table 4Table 4: 2013-2014 Volume (Unit Sales)Top Cigarette
Brands in the U.S. MarketNorth American Cigarette Brand
Share2013 Volume2014 Volume(in Billions)(in
Billions)Cigarette Category (Total)273.2264.6 Marlboro (MO
US)95.3198.52 Newport (LO US)28.8828.90 Pall Mall (RAI
US)19.7719.58 Camel (RAI US)19.4619.48 Du Maurier
(BATS LN)5.565.65 Pyramid (VGR US)5.545.44 Winston
(RAI US)5.515.98 Player’s (BATS LN)5.034.92 L&M (MO
US)4.755.90 USA Gold (IMT LN)4.514.93
Table 5Table 5: Category SalesWeekly U.S. Cigarette Sales by
Region, 2014Sales out of 50,000 consumers (age
18+)South21,157Midwest13,052Northeast9,554West6,258In the
general population, 57,799 cigarette purchases are made in a
population of 231,195 customers (age 18+).

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  • 4. l i l i i n y o L1r a n s w e r s i n t h c a p p >o p r i a t c l o c a t i o n s (T a b i c 2 ) (Se e T a b l e I f o r [ :1c [o t cl l v o l t t 1t t c 111 u ï l i t x j b r 20 14 ) 5 13n s c d o n t h e n u m b e r s p r o v i d e d i n l abl c 2 w h a t i s t he t h >e ( f i r m c o n c e n t r a t i o n r a t i o fo r t h e U S c i 吕 a >c t t c i n d u s t r y ? T h >e c F i r m C o n c e n t r a t i o n R a t i o 6 CMc u h c t h e 1 l c r %n d a h l n d c x ó t h c U S c i w c u C i n d u m y 1 l c > tì n d a h l I n d e x 2 Scanned by CamScanner Scanned by CamScanner 9 C o m p a r e t h e T hr e e F ir m C o n c e n t r a t io n R a t i o a n d ( he + l e >ti n d a h l I n de x f o r t h e U s Ci gai t t c i n d u s t r y t ot h o s e o f t h e U S a i r l i n e i n
  • 5. d u s t r y s d o m e s t ic m a r k e t I n c l u de t hc : o l l o w i n g in y o u t a n s w e rA W h a t k i n d o f in f o t m a t i o n e a n y o u ge t ti o m t h e s e t w o m e n s u r e s ? t h e y m e a s u r e ) (i e , Ide n t i Fy a n d d e s c r i be w ha t B W h a t k i n d o f s t a t e m e n t s c a n y o u m a k e ba s e d o n y o u r a n s w e r s fo r bo t h i n d u s t r ie s ? (M a k e s u r e y o um a k e s t a t e m e n t s f o r e a c h i n d u s t r y Y o u s ho u ld a l s o c o m pa 1E t h e t w o i n d u s t r i e s )Yo u r a n s w e r m u s t be w r i t t e n u s i n g c o rn p 1e t e s e n t e n c e s Scanned by CamScanner T a b l e 5 : > n l c Rt ) > > S n i t i W c r k l } I J S C i g u r c t l c S 11l t 1By k t Ri o n , 20 1 I SMe s o u t N 50 0 0 0 c t ) l n m n c l h ngc I Bl I 2 1 I 57 M id w e s t 1 j 0 52
  • 6. N o r t h e a s t 9 554 i n t h e g e n e r a l po p u l a t i o n 5 7 7 99 c i g a r e t t e p u r c ht t s e s a r c m m l c i n Bl p ° p t i l n t i o r 1 t ) r 23 1, l ( i 5 c t ) l l ¢i t l f i 1c r t l w e s t (a g e 18+ ) 12 T a b l e 5 c o n t a i n s d a t a o n c i g a 1 t t e c a t e g o r y s a l e s f【) r d i l fc r c n l g c o g r 1r p h l c m c n s o : t l l c [ J S A c i.¢: l r c t (c c o m p a n y i s i n t e r e s t e d i n d e t e n n i n i n g t h c g c o g r <1p h ic n i 【1r k e t s i n w h ic l 1 c ig n r c t l c s n r c p c r l o t ï n i n ß t h c be s t / w o r s t w h ic h m a r k e t i n g m e t r ic w o u l d y a u r c c u m m c n t l t o t h c c o m p t 1n y t 1
  • 7. n 9l w h y ' B (O n e s e n t e n c e l i m i t) 13 U s e t h e i nf or maüon i n T a b l e 5 t o c o n i p u t e t h c n r c M c h m y o u s u g g e s t e d i n q u e M a n 12 a b o v e I M t h hB f o r a l l f o u r g e o g r a p h i c a r e a s P la c e y o u r a n s w e r s i n t h c h l a n k s b e l o w So u t h = M i d we s N or t h e a s W e s t - I 4 W h a t i n t e r p r e t a t i o n s c o u l d y o u m a k i b a s e d o 11 y o u r a n s w ( r s i n q u e s t io n 1 3 ? W r i t e a p r o f e s s i o n a l s t a t e m e n t c o m m u n i c a t i n g y o u r r e s u l t s Scanned by CamScanner 1 e 1 v 1t t k e ¢t qui t a / t Jo k a l a d i ü e r e n l U S i n t tu s l 1y i l l e a
  • 8. i r t i i r e i h d u el r y T a b / e 3 C t u t l a i i t Ç /i t l i l / 1r u l i u l r B / / I R P At × f i ) r t i i e ( 1i r l i n e i n t i t Bs ì Bu B1Bs t r y A ï I o f t BBe a i r l i n e c o n 1p a n i e s c o T a b l e 3 : 2 0 14 R p M s (R e v e n u e P a s s e n g e r M i l e s ) ( U n i t s ) U S A i r l i n e I n d u s t r y D o m e s t i c 2 0 14 @3 E } S o u t h w e s t M r l i n e s 10 8 , 032 4 4 D e l t a i r L i n e s 9 8 , 6 62 2 8 ; m e r i c a n A i r l i n e s 12 5 , 67 0 3 9 Je t B l u e A i r w a y s 3 8 , 5 83 0 I S k v w e s t 3 1 , 4 17 6 0
  • 9. A i r C a n a d a 2 8 , 1 10 4 8 l a s k a A i r l i n e s 2 7 , 55 9 3 0 R e p u b h c 1 1 , 5 7 4 9 0 W e s u e t A i r l i n e s 2 0 , 94 5 06 H a w a i i a n A i r l i n e s 13 , 7 7 9 6 5 A m e r i c a n E a g l e 2 2 , 04 7 4 4 S p i r i t A i r l i n e s In c 14 , 33 0 83 A l l e g i a n t A i r 7 , 7 16 6 0 H o r i z o n 2 , 7 5 5 93 C a l c u So u r c e B l o o m b e r g P r o f e s s i o n a l 7 B a s e d o n t h e n u m b e r s p r o v i d e d i n T a b l e 3 , w ha t i s t h e t h r
  • 10. e e f i r m c o n c e n t r a t io n r a t i o fo r t he U S a i r l i n e i n d u s t rr ' s d o m e s t i c m a r k e t ? T h r e ( F i r m C o n c e n t r a t io n R a t i o 8 c a l c u la t e t h e H e r f i n d a h l I n d e x ( H H I ) f o r t he U S a i r l i n e in d u s t r y ' s d o m e s t i c m a r k e t H e M n d a h l I ndex Scanned by CamScanner 2 0 Pa r e n t c o m p a n y R e y n o l d s A m e r i c a ha s a go a l o F i n c r e a s i n g c a m e >s m a r k e t s h a r e B a s e d o n w h a t y o u k n o w a b o u t t h e d e c o m p o s i t i o n o í m a r k e t s ha r e , w h a t s h o u ld R e y n o l d s A m e r i c a f o c u s o n t o i n c r e a s e C a m e l ' s m a r k e t s h a r e ? w h a t s p e c if i c r e c o
  • 11. m m e n d a t i o n s d o y o u h a v e f o r t h e c o m p a n y ? 9 Scanned by CamScanner Scanned by CamScanner 1 1 W h a t s u g g e s t i o n s d o y o u ha v e f o r R e y n o ld s A m e r ic a n I n c (R A I u s ) b a s e d o n t h e r e s u l t s o f y o u r B C G M a t r i x ? E x p l a i n 6 Table 1Table 1: VolumeU.S. Cigarette Industry200920102011201220132014Total U.S. Volume (in Billions)315.7303.6293.1286.3273.2264.6Growth Rate (%)----- Table 2Table 2: Market ShareTop Companies in U.S. Cigarette IndustryTop Companies in U.S. Market2014 Unit Market Share (%)# Units Sold by Company (Billions) Altria Group42.40% Reynolds American23.70% Lorillard Inc.12.50% British American5.30% Philip Morris International4.10% Imperial Tobacco3.70% Vector Group3.00% Japan Tobacco1.30% Other Companies4.00%Three-Firm Concentration RatioHerfindahl Index (HHI) Table 3Table 3: 2014 RPMs (Revenue Passenger Miles) UnitsU.S. Domestic Airline Industry - Domestic2014 Units Sold
  • 12. (RPM) Southwest Airlines108,032.44 Delta Air Lines98,662.28 American Airlines125,670.39 JetBlue Airways38,583.01 SkyWest31,417.60 Air Canada28,110.48 Alaska Airlines27,559.30 Republic11,574.90 WestJet Airlines20,945.06 Hawaiian Airlines13,779.65 American Eagle22,047.44 Spirit Airlines Inc.14,330.83 Allegiant Air7,716.60 Horizon2,755.93Three-Firm Concentration RatioHerfindahl Index (HHI) Table 4Table 4: 2013-2014 Volume (Unit Sales)Top Cigarette Brands in the U.S. MarketNorth American Cigarette Brand Share2013 Volume2014 Volume(in Billions)(in Billions)Cigarette Category (Total)273.2264.6 Marlboro (MO US)95.3198.52 Newport (LO US)28.8828.90 Pall Mall (RAI US)19.7719.58 Camel (RAI US)19.4619.48 Du Maurier (BATS LN)5.565.65 Pyramid (VGR US)5.545.44 Winston (RAI US)5.515.98 Player’s (BATS LN)5.034.92 L&M (MO US)4.755.90 USA Gold (IMT LN)4.514.93 Table 5Table 5: Category SalesWeekly U.S. Cigarette Sales by Region, 2014Sales out of 50,000 consumers (age 18+)South21,157Midwest13,052Northeast9,554West6,258In the general population, 57,799 cigarette purchases are made in a population of 231,195 customers (age 18+).