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MARLBORO - Global
          Brands Assignment
                Strategic Brand Management
                         Global Brands Assignment




Submitted to:                                    Submitted by :

Ms. JAYASHREE SUNDAR                                NISHANT SINGH (91039)
Prof. FREDA J. SWAMINATHAN
                                             ASHUTOSH KUMAR JHA (91011)
FORE School of Management, New Delhi
MARLBORO - Global Brands Assignment


1. What were the factors that enabled the brand to flourish from launch to the current
  period and build brand equity? You might wish to examine marketing mix elements
  and brand resonance model critically in this context.

  Marlboro, when launched in 1920‟s, was initially targeted at female smokers with tagline
  “Mild as may”. After a break during World War II, in the 1950's Marlboro was relaunched,
  this time with filters added to tackle stories about the negative health aspects of smoking.

  In 1950s various adverts with healthy looking, outdoor type men began showing up among
  which cowboy became an enduring iconic image and resulted in almost cult masculine brand
  image. Over the years Philip Morris research has shown that sales have always increased
  whenever cowboy image has been used.

  In 1971, when the cigarette adverts were banned from television, Marlboro could equally
  well recreate their Marlboro man adverts on newsprint while promotional campaigns of its
  rivals, with jingles as central themes, suffered. Around 1972, Marlboro cigarettes became the
  most popular brand in the world.

  The standard product marketing mix includes four parts: product, placement, price and
  promotion.

  Product: The Marlboro line has great product depth. Although initially recognised with
  strong and refined tobacco cigarettes, over the years Marlboro has incorporated products
  offering different tastes and potencies in order to satisfy a number of different consumer
  tastes. Marlboro reds have a more robust flavour. They are the stronger of the product items
  within the line. The more preferred product item is the Marlboro lights, which are a medium
  flavoured brand item. Other than this, Marlboro offers ultra lights, Marlboro reserve and
  menthol flavoured and many other variants of these.

  Price: Marlboro is positioned in the mid-priced market segment. Target market includes both
  male and female brand-loyal adult tobacco users who like the Marlboro brand name and see
  enough value in it to pay a slightly higher price for it.

  Place: Cigarettes are considered to be convenience and shopping product. Most Marlboro
  product users remain relatively loyal to the brand.

  Promotion: With ban on advertising in print as well as through other media, cigarette
  companies including Marlboro have had to use alternate means for promotion. Marlboro was

  FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                      Page 2
MARLBORO - Global Brands Assignment

  official sponsor of Ferrari Formula1 team. Besides they offer promotional free packs for new
  product launches and discounted packs. Many countries have introduced ban on cigarette
  brand names appearing in public. This has curbed sponsorships of sports events, music
  concerts etc. Officially stated objective is not to convert non-smokers to smoking, but to
  retain existing users of Marlboro and convert its rivals customers. In 2002, Philip Morris
  decided to give up buying advertising spots in magazines and billboards to show its
  responsibility towards society. Now it relies heavily on in-store advertisements, in-store
  promotions and mail coupon promotions.

  Because governmental and social regulations prohibit tobacco companies from publicly
  marketing their products, Marlboro relies heavily on in-store advertisements, in-store
  promotions and mail coupon promotions. Visual store advertisements are usually placed near
  the checkout counter where the customer must go to ask for, and purchase, the cigarettes.
  These displays depict the Marlboro logo and any current promotional pricing. All Marlboro
  promotions are integrated to maintain and gain product loyalty, thus producing more profit
  potential for the product. Marlboro has adapted their marketing approach in order to create a
  brand that will endure the test of time.


2. Who is the target market for the brand? How was the brand differentiated in terms of
  brand positioning, brand personality and brand identity?

  With the lawsuits and governmental pressures PM has made its marketing more responsible
  and its mission statements more and more about the adult smoker who chooses to smoke.
  Marlboro has projected itself to be the most responsible and respected manufacturer and
  marketer among cigarette companies. Their website clearly states their target to be adults who
  choose to smoke cigarettes. U.S.A. is committed to acting responsibly in marketing its
  tobacco products to adults who choose to smoke.

  Brand Positioning: Marlboro man, since cementing its place in 1950‟s has provided
  Marlboro with a distinct premium positioning with masculine, strong and outdoor loving
  image. With product almost similar to its rivals like Camel, Lucky Strike and Winston and
  priced slightly higher, only thing differentiating factor is perceived value consumers associate
  with the tradition, strong image and premiumness.




  FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                     Page 3
MARLBORO - Global Brands Assignment

  Brand Personality: Marlboro, for years, with its Marlboro man has created a brand
  personality of being „Strong but classy‟. Being in a product category which has health
  implications, Marlboro‟s campaign has excited young adults to adopt devil may care attitude
  and gravitate towards the brand.

  Brand Identity: The Marlboro brand is named after Great Marlborough Street, the location of
  its original London factory. Prominent red colour on the pack represents action and strength.
  It also represents leadership. Inverted V on the top was in its initial days used to differentiate
  hard cover packs of Marlboro from other soft cover packs, but have become an identifiable
  feature in itself.

  Marlboro logo design represents the symbol of rugged individualism, masculinity, and the
  main thing that this logo produced was the image of the brand and not the product. And no
  one can dispute that the Marlboro Man is a brilliant creation and a powerful imagery.

3. If you need to re-launch the brand, what positioning strategy would you suggest? Why?
  Company can re-launch the brand into three different categories:

   1) Marlboro Imperia: This categories of cigarettes would be premium ones and would
       target ultra rich segments of society. They can set the price of this category up to Rs 8-9.
       They can promote this category through movies showing ultra rich, successful and royal
       people using this product.

   2) Marlboro: They should continue with the existing medium range line as it constitutes
       major portion of the sales.

   3) Low end segment: Under this category the company can start producing low end
       cigarettes for people who cannot afford to buy costly cigarettes. But in this case they
       should take care that because of this category the company‟s brand brand image should
       not get diluted in premium segment. So for the company should launch this category
       with other brand name.


4. What insights do you have about brand extension strategies for the brand?

  Marlboro in its almost 90 years of existence has created a very distinct position and imagery
  in the minds of adult smokers across globe. To tap the market better Marlboro has extended
  its line of products extensively. This line extension has been done globally as well as keeping
  the local needs in mind.


  FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                       Page 4
MARLBORO - Global Brands Assignment

  But when it has come to brand extension, Marlboro has never extended its name to any other
  product category other than cigarettes. This has also been done primarily because of strong
  mother company brand name- Philip Morris, which is already into many diversified segments
  which range from other cigarette brands like Benson & Hedges, Virginia Slims, etc to Food
  and beverages and Beers as well. In 1980s Philip Morris acquired Miller beer brand. This has
  led to very focused strategy for each brand in terms of brand extension.

  We believe this conservative stance in terms of no brand extension has actually contributed to
  Marlboro cigarettes and Marlboro man gaining cult status, not just in flower power
  generation of 1950s but in minds of every subsequent generation. If there had been brand
  extension this imagery would have been diluted and although strategy may have resulted in
  short-term gains at that time, but would have not given as good results as Marlboro is giving
  now. Hence, we believe no brand extension strategy on part of Marlboro has been an
  excellent decision for the brand in long term.


5. Identify the three most important priority initiatives you would start tomorrow for the
  brand. Explain.

   Marlboro brand is capable of being extended into a variety of new product categories which
  complement its existing positioning of outgoing self-confident male. Few of the categories
  that would complement its brand extension plan is for instance, Marlboro jeans and hats
  and belts. It would be good initiative to extending the brand into new product categories and
  would be perceived to be a move to market Marlboro tobacco products to youth, and it would
  actually make the brand more appealing to young adults. Having said all of this, we think the
  Marlboro brand is quite strong and could be extended into a variety of product categories for
  which Marlboro‟s distinct brand image and personality would seem to be a draw.

  Marlboro can also move into products like shaving, skin care, deodorant etc..These products
  would be basically male products and would be focused on male consumers as it goes with
  the brand personality.

  Thirdly the company can collaborate or acquire some brands which have the same brand
  personality as Marlboro has. Company can use that brand to reach untapped customers and
  promotions. For example Harley Davidson, which also has similar imagery in customer‟s
  mind would be an ideal brand to acquire or collaborate with. This would actually help the
  company in extending its brand without damaging or changing its image or personality.


  FORE SCHOOL OF MANAGEMENT, NEW DELHI                                                    Page 5

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Marlboro Brand Equity

  • 1. MARLBORO - Global Brands Assignment Strategic Brand Management Global Brands Assignment Submitted to: Submitted by : Ms. JAYASHREE SUNDAR NISHANT SINGH (91039) Prof. FREDA J. SWAMINATHAN ASHUTOSH KUMAR JHA (91011) FORE School of Management, New Delhi
  • 2. MARLBORO - Global Brands Assignment 1. What were the factors that enabled the brand to flourish from launch to the current period and build brand equity? You might wish to examine marketing mix elements and brand resonance model critically in this context. Marlboro, when launched in 1920‟s, was initially targeted at female smokers with tagline “Mild as may”. After a break during World War II, in the 1950's Marlboro was relaunched, this time with filters added to tackle stories about the negative health aspects of smoking. In 1950s various adverts with healthy looking, outdoor type men began showing up among which cowboy became an enduring iconic image and resulted in almost cult masculine brand image. Over the years Philip Morris research has shown that sales have always increased whenever cowboy image has been used. In 1971, when the cigarette adverts were banned from television, Marlboro could equally well recreate their Marlboro man adverts on newsprint while promotional campaigns of its rivals, with jingles as central themes, suffered. Around 1972, Marlboro cigarettes became the most popular brand in the world. The standard product marketing mix includes four parts: product, placement, price and promotion. Product: The Marlboro line has great product depth. Although initially recognised with strong and refined tobacco cigarettes, over the years Marlboro has incorporated products offering different tastes and potencies in order to satisfy a number of different consumer tastes. Marlboro reds have a more robust flavour. They are the stronger of the product items within the line. The more preferred product item is the Marlboro lights, which are a medium flavoured brand item. Other than this, Marlboro offers ultra lights, Marlboro reserve and menthol flavoured and many other variants of these. Price: Marlboro is positioned in the mid-priced market segment. Target market includes both male and female brand-loyal adult tobacco users who like the Marlboro brand name and see enough value in it to pay a slightly higher price for it. Place: Cigarettes are considered to be convenience and shopping product. Most Marlboro product users remain relatively loyal to the brand. Promotion: With ban on advertising in print as well as through other media, cigarette companies including Marlboro have had to use alternate means for promotion. Marlboro was FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 2
  • 3. MARLBORO - Global Brands Assignment official sponsor of Ferrari Formula1 team. Besides they offer promotional free packs for new product launches and discounted packs. Many countries have introduced ban on cigarette brand names appearing in public. This has curbed sponsorships of sports events, music concerts etc. Officially stated objective is not to convert non-smokers to smoking, but to retain existing users of Marlboro and convert its rivals customers. In 2002, Philip Morris decided to give up buying advertising spots in magazines and billboards to show its responsibility towards society. Now it relies heavily on in-store advertisements, in-store promotions and mail coupon promotions. Because governmental and social regulations prohibit tobacco companies from publicly marketing their products, Marlboro relies heavily on in-store advertisements, in-store promotions and mail coupon promotions. Visual store advertisements are usually placed near the checkout counter where the customer must go to ask for, and purchase, the cigarettes. These displays depict the Marlboro logo and any current promotional pricing. All Marlboro promotions are integrated to maintain and gain product loyalty, thus producing more profit potential for the product. Marlboro has adapted their marketing approach in order to create a brand that will endure the test of time. 2. Who is the target market for the brand? How was the brand differentiated in terms of brand positioning, brand personality and brand identity? With the lawsuits and governmental pressures PM has made its marketing more responsible and its mission statements more and more about the adult smoker who chooses to smoke. Marlboro has projected itself to be the most responsible and respected manufacturer and marketer among cigarette companies. Their website clearly states their target to be adults who choose to smoke cigarettes. U.S.A. is committed to acting responsibly in marketing its tobacco products to adults who choose to smoke. Brand Positioning: Marlboro man, since cementing its place in 1950‟s has provided Marlboro with a distinct premium positioning with masculine, strong and outdoor loving image. With product almost similar to its rivals like Camel, Lucky Strike and Winston and priced slightly higher, only thing differentiating factor is perceived value consumers associate with the tradition, strong image and premiumness. FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 3
  • 4. MARLBORO - Global Brands Assignment Brand Personality: Marlboro, for years, with its Marlboro man has created a brand personality of being „Strong but classy‟. Being in a product category which has health implications, Marlboro‟s campaign has excited young adults to adopt devil may care attitude and gravitate towards the brand. Brand Identity: The Marlboro brand is named after Great Marlborough Street, the location of its original London factory. Prominent red colour on the pack represents action and strength. It also represents leadership. Inverted V on the top was in its initial days used to differentiate hard cover packs of Marlboro from other soft cover packs, but have become an identifiable feature in itself. Marlboro logo design represents the symbol of rugged individualism, masculinity, and the main thing that this logo produced was the image of the brand and not the product. And no one can dispute that the Marlboro Man is a brilliant creation and a powerful imagery. 3. If you need to re-launch the brand, what positioning strategy would you suggest? Why? Company can re-launch the brand into three different categories: 1) Marlboro Imperia: This categories of cigarettes would be premium ones and would target ultra rich segments of society. They can set the price of this category up to Rs 8-9. They can promote this category through movies showing ultra rich, successful and royal people using this product. 2) Marlboro: They should continue with the existing medium range line as it constitutes major portion of the sales. 3) Low end segment: Under this category the company can start producing low end cigarettes for people who cannot afford to buy costly cigarettes. But in this case they should take care that because of this category the company‟s brand brand image should not get diluted in premium segment. So for the company should launch this category with other brand name. 4. What insights do you have about brand extension strategies for the brand? Marlboro in its almost 90 years of existence has created a very distinct position and imagery in the minds of adult smokers across globe. To tap the market better Marlboro has extended its line of products extensively. This line extension has been done globally as well as keeping the local needs in mind. FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 4
  • 5. MARLBORO - Global Brands Assignment But when it has come to brand extension, Marlboro has never extended its name to any other product category other than cigarettes. This has also been done primarily because of strong mother company brand name- Philip Morris, which is already into many diversified segments which range from other cigarette brands like Benson & Hedges, Virginia Slims, etc to Food and beverages and Beers as well. In 1980s Philip Morris acquired Miller beer brand. This has led to very focused strategy for each brand in terms of brand extension. We believe this conservative stance in terms of no brand extension has actually contributed to Marlboro cigarettes and Marlboro man gaining cult status, not just in flower power generation of 1950s but in minds of every subsequent generation. If there had been brand extension this imagery would have been diluted and although strategy may have resulted in short-term gains at that time, but would have not given as good results as Marlboro is giving now. Hence, we believe no brand extension strategy on part of Marlboro has been an excellent decision for the brand in long term. 5. Identify the three most important priority initiatives you would start tomorrow for the brand. Explain. Marlboro brand is capable of being extended into a variety of new product categories which complement its existing positioning of outgoing self-confident male. Few of the categories that would complement its brand extension plan is for instance, Marlboro jeans and hats and belts. It would be good initiative to extending the brand into new product categories and would be perceived to be a move to market Marlboro tobacco products to youth, and it would actually make the brand more appealing to young adults. Having said all of this, we think the Marlboro brand is quite strong and could be extended into a variety of product categories for which Marlboro‟s distinct brand image and personality would seem to be a draw. Marlboro can also move into products like shaving, skin care, deodorant etc..These products would be basically male products and would be focused on male consumers as it goes with the brand personality. Thirdly the company can collaborate or acquire some brands which have the same brand personality as Marlboro has. Company can use that brand to reach untapped customers and promotions. For example Harley Davidson, which also has similar imagery in customer‟s mind would be an ideal brand to acquire or collaborate with. This would actually help the company in extending its brand without damaging or changing its image or personality. FORE SCHOOL OF MANAGEMENT, NEW DELHI Page 5