The new year started grimly for smokers in Bulgaria as the excise tax for cigarettes was increased in January 2016. While local tobacco players suddenly became less competitive, the international companies used the situation as a chance to strengthen their positions on the market. Bulgaria remains one of the last frontiers for cigarette manufacturers in the EU, as the local adult smoking prevalence still reaches one-third of the total population and is expected to remain stable in the near future. As Bulgarian consumers are still very price sensitive due to their relatively low incomes, the price change was viewed as a big challenge by all cigarette manufacturers. The taxation system was changed so that premium cigarettes would have to increase in price more than economy products. That led to the impression that multinational companies would suffer more than the local players, which produce mainly mid-priced and economy cigarettes. The reality was different, however, as multinational companies adopted innovative strategies to keep their market shares intact or growing.

Companies sacrifice their own margins The first step taken by the majority of the companies operating in was to postpone the price increase to the maximum term allowed. Most of the new prices were introduced only in late winter and early spring of 2016, allowing customers to acclimatise to the changes at a slower pace. Consequently, the companies that increased prices before the start of 2016 lost some market share. No matter that the excise tax was set up to be unfavourable for international companies selling premium brands – they decided to face down the threat and to seize the initiative instead. The largest foreign companies offered their brands with smaller price increases than the local companies, at the expense of their own profits. Multinational companies with bigger budgets are in a better position to take the tax burden on their own shoulders and use it to grow their market share.

Mar 16, 2013 Victory cigarettes bulgaria, price Marlboro cigarettes, discount Winstons cigarettes, victory cigarettes bulgaria, Davidoff cigarettes Vancouver, sales of cigarettes and tobacco products in Liverpool, Silk Cut cigarettes nicotine levels, native American cigarette brands, much Marlboro cigarettes California. Bulgarian cigarettes – again a hit in the middle east. April 2, 2012, 4:03 p.m. Victory, MM super slim and others in the 84 mm round corner format. Drivers Toshiba Satellite L300 Pslb0e. The Victory electronic cigarette stands out from other mini models by using a 510 connection battery and including a car charger in its standard kit. Sadly the single. Cigarettes in Bulgaria: The most significant change in tobacco legislation concerning cigarettes is the new tobacco excise duties coming into force in.

Another strategy used by the companies was to introduce cheaper extensions to their most popular brands in order to attract consumers who used to purchase cheaper brands. For example, the biggest local player, Bulgartabac Holding Group AD, launched Victory Code, which is an extension to its best-selling brand Victory. A 20-unit pack of Victory Code cigarettes is currently priced at BGN4.5, while the traditional Victory pack costs BGN4.9. A similar step was taken by Phillip Morris Bulgaria EOOD, when the cheaper version Marlboro Touch was launched. The company reshuffled its brand portfolio in general and now offers more products with mid-range prices. Back in 2014 a pack of Marlboro Gold cost BGN5.1, while, in 2016, Marlboro Touch has been selling for BGN4.8.

Phillip Morris started competing actively for market share in the mid-range price segment after lowering prices to the level of the most popular brands on the market like Karelia and Victory. Shorter and longer cigarettes – both bring benefits While focusing their attention on how to maintain the impression of stable prices, the companies also played more with cigarette lengths. The Bulgarian market is no exception and has recently witnessed many launches of differently sized cigarettes. Both local and international companies introduced shorter cigarette varieties while keeping prices the same.