Evening journal., 1912-11-18

Every jobber and every retailer
knows the name OF every manufac-
turer OF. every tobacco product that
he handles Every consumer knows
rOr may learn simply by looking at
the package or inquiring OF the dealer
who makes each brand OF tobacco
product
If the consumer is not pleased he
can instantly change to a competitive
brand. He is the arbiter. the court
of final appeal II his decision is
against a manufacturer, that manu-
faCturer will have TO cease business
The householders or dweller in
apartments seldom or never knows
the source from which the coal that
warns him and cooks his food is re-
ceived
The ultimate consumer cannot
learn without infinite pains the name
Of the maker OF the steel IN his pOck-
ct knife or the steel i'm the apartment
house In which he pays rent, or the
steel in the bridge for which he pays
taxes.
DO you know the name Of the man
ufacturer OF the -four used by your
baker? DO you know the name of
the tanner of the leather. the maker
OF the thread and other supplies used
In your shoes. When YOU buy a suit
Of clothes, do you ask your tailor or
clothing dealer the name Of the man
ufacturer of the cloth?
In other industries, the manufac-
turer's product is reworked by mid
die men SO that its identity is lost be-
fore II reaches the ultimate consum-
al - tc In,
nor easily observable by the general
public; or II is marketed in bulk or
in some form other than OF easily
distinguished brands.
In short, other manufacturers are
not directly answerable 10 the public
The tobacco business is unique in
that the manufacturer is always at
the mercy OF the ultimate consumer
who, by withdrawing his patronage
can crush any manufacturer, no mat
ter how large he may be.
Therefore, the success Of The
American Tobacco Company never
did depend and does not now depend
on monopoly but on the efficiency oi
the company, and its ability to please
the public.
"Price- Cutting and Business.
Competition among tobacco manu-
facturers does, not take the form oi
"price-cutting The history OF the
tobacco business proves that price
cutting is not desirable weapor
to use against competition.
Tobacco, candy, perfumes. anC
/ other products which appeal TO th'
sense of taste or smell are purchas
ed invariably because of the appea
OF the specific article to the indiyid
ual's taste.
About the only effect Of cutting
the price OF a high-priced perfum,
would be TO suggest to the consumer
that the perfume had been deteriOr
ated in quality. Likewise. II a we'll
known eighty-cent candy was re
duced to sixty cents a pound, thos'
who had been steady purchasers o
the candy would likely believe tina
its quality, as we'll as it price, haC
been reduced and they would aban
don il and. search for another eighty
cent candy.
So it is with tobacco products
About the only effect OF price-cut
ting is TO remove a product from on
class and put It into another. oftei
with the result OF destroying II
value. Thus. persistent price-cuttin
even by retailers on various we'll
known fve-ccnt cigars have drive
them out of the five-cent class an
into the three-cent class. Just a
soon as they reached the three-cen
class, the fve-cent smoker abandone,
them, and they died.
Cannot Control Prices.
The retailer makes prices to nee
local conditions. and the Tobacco
manufacturers have no power to reg
ulate this situation.
In some cities retailers cut Is
cigarettes 10 12c or lie. 10c tobacc
to three packages for 25c. etc. ct,
The matter of price to the consume
is entirely loci. and no one but th
retailer can regulate IT,
, Look at Pail Mall Cigarettes as a
b Illustration OF the manufacturer
e. lack OF control over price. TIL
; American Tobacco Company advel
. tises Pail Mall at 25c.. and sells tn
I cigarettes at such a price as to 81,
the dealer an excellent profit
promptly cuts the price to 20c II
D safe 20 assume that most Pail Ma
! cigal cites are sold at 20c.. when. z
2 a matter OF fact, the retailer is SUI
\ nosed to charge 25c for them.
s Methods Of Competition.
s However strong an old brand
tobacco may be. the manufactur,
s must be continually alert or his el
- ergetic competitors VIII take his bus
G ness away from him. Il is true tn
= they will not do this by price-cu
ting. because that in itself will n
Il damage his brand materially.
II Their competition will take Il
e form OF arguments to consume
l. that they have produced a better {
l. bacco. or they will offer to consuI
n ers inducements to buy their toba
Ie co, which will wean them away fro
At their old favorites.
le Then too. each year brings a lar
,r body of new smokers into existenc
t. and the old brand. as we'll as the ne
l. must fight with its competitors (
the trade OF these newcomers.
Consequently there is a consta
,e struggle among tobacco manufactu
IS, ers to protect their old brands and
as create business for the new branC
,e which the MANUFACTURER who
ie to successfully rival his cOmpetito
in must introduce from time 10 tin
as These new brands are the result
e. new discoveries in the manufactu
N Of tobacco. or a new application
Il. some old principle in a more attra
T. tive form.
IN Competition in the tobacco ira,
at therefore, takes the form Of vigoro
AZ advertising Of old trands. the enc
er Eetic Introduction Of new brands a
I'd the devising OF inducements to co
le sumers so buy their old or new branl
Is Every newspaper or magazi
ad reader is impressed with the u
le mendous amount Of tobacco adv,
10 tieinc In The daily mnnllr d