presentation on top 25 company on forbes

1. Project Work: Business Studies
Marlboro
United States 1924

2. Acknowledgement
I would like to thank my teacher Vikash Sir who gave me this
opportunity to work on this project. I got to learn a lot from this
project about the valuable companies. I would also like to thank
our school principal Mr R.k. Mishra Sir.
At last, I would like to extend my heartfelt thanks to my parents
because without their help this project would not have been
successful. Finally, I would like to thank my dear friends who have
been with me all the time.

3. CONTENT
1. Introduction
2. Quick Stats
3. Products and competition
4. 4P Analysis
5. SWOT Analysis
6. Conclusion

4. INTRODUCTION
Marlboro was founded as a women's cigarette before switching
its focus to men with rugged characters like the Marlboro Man in
its advertising. Marlboro has been the world's No. 1 cigarette
brand since 1972. Altria holds the rights to the Marlboro brand
in the U.S., while Philip Morris International handles the brand
overseas. Marlboro commanded 43.1% of the U.S. cigarette
market in 2018, bigger than the next 10 brands combined.
Marlboro volume was down 5% in the U.S. in 2018, but the
brand raised prices more than $1 per pack. Volume was off 2%
outside the U.S.

5. Quick Stats on Marlboro
Founder Philip Morris
Year Founded 1924
Origin The United States
No. of Employees 71,000+
Company Type Public
Market Cap US$160.945
Billion (2021)
Annual Revenue US$76.047 Billion
(2020)
Net Income/
Profit
US$8.056 Billion
(2020)

6. Products of
Marlboro
• Cigarettes
• Codentify
• Fine-cut rolling
tobacco
• Snuff
• Rolling papers
and tubes

7. Competitors of Marlboro
Marlboro competes on a global level while
maintaining its quality and uniqueness, it competes
with global brands such as
• Davidoff
• Parliament
• Dunhill
• Lucky Strike
• Camel
• Pall Mall

8. 4P ANALYSIS OF MARLBORO
1. Product – The products Marlboro Friday is making or are in the
pipeline to capture potential markets.
2. Price – Pricing strategy that Marlboro Friday is pursuing in various
customer segments it is operating in.
3. Place (Channels of Distribution ) – Distribution mix of Marlboro
Friday has taken a new dimension with the emergence of Online
Retailing & domination of players such as Amazon.
4. Promotion (Communication Strategy of Marlboro Friday) – The
emergence of social media and online advertising has changed the
landscape of Marlboro Friday communication mix and communication
strategy.

9. Products
In marketing strategy, product is not viewed as a tangible
product, but the source of value to be delivered to the
customers. Value to the customers of Marlboro Friday can be
delivered in numerous ways such as – physical product ,
financing plans to purchase the products, point of sale equity,
priming and pre purchase education provided by sales staff,
quality assuring brand name, convenience of availability , word
of mouth references, installation and repair services etc.
These numerous ways to understand product concept provide
marketing managers of Marlboro Friday an opportunity to
differentiate its overall value proposition from that of the
competitors.

10. 4 Stages of Product Management as part of
Marketing Process
Identification of Opportunity – Market
research and customer research is done
to identify the needs of the customers
that Marlboro Friday can cater to with its
present and acquired resources.
Design and Testing – Product is designed
based on the value proposition that
customers are seeking and one that
Marlboro Friday can deliver. The key
consideration regarding product design
and testing are – customer value
proposition, regulatory requirements,
Marlboro Friday skills and resources,
opportunities for differentiated
positioning, and profitability.
Marlboro Friday Product Launch – It
includes decision regarding pricing,
communication strategy, distribution
channel management, and building
infrastructure to provide post
purchase services.
Product Life Cycle Management of
Marlboro Friday products – Once the
product is launched the company
needs to manage the life cycle of the
product through its various stages
such as – introduction, growth
phase, cash cow stage, and finally
decline stage.

11. Pricing
Pricing is a highly complex activity and we will cover
only a very limited aspect of what goes into pricing
decisions. To a large extend pricing depends upon the
other 3Ps of marketing – product, place and promotion.
Conceptually perceived value is the maximum price a
customer is willing to pay for Marlboro Friday product
in the given competitive context.

12. Cost Base Pricing
Under cost based pricing strategy –
Marlboro Friday can work out what it
takes to produce the product and put a
markup based on profit it wants earn. In
a highly competitive strategy with
dynamic pricing the strategy may not be
feasible. For example Uber running
losses in billions can provide lower prices
and sustain compare to individual taxi
service provider who is not backed by
private equity and long term strategy.
Value Base Pricing
Value Base Pricing is a pricing strategy
which is based on customer perception
of value. It inculcates put the number on
both tangible and intangible benefits
with a clear understanding of elasticity of
demand and competitive pressures.
Market Penetration Pricing
Marlboro Friday can employ this pricing
strategy where it launch a new product
either at loss or at very low margin to get
a foothold in the segment.
Market Skimming Pricing
For certain well established brands,
Marlboro Friday can increase the prices
as customers can pay higher price.
Good Value Pricing
Offering right mix of product features,
quality, and service combination at fair
price. For example offering a limited frill
option - customers can have initial
product experience at an accessible
price. GoPro use this strategy extensively.

13. Competition Based Pricing
The pricing strategy is based on the competition in the market. Under this
strategy Marlboro Friday focus is to match the prices of the competitors
and focus on reducing the cost of operations to increase profitability.
Pricing Recommendation
Based on the evidences at hand – we can choose the following pricing
strategy
High Brand Awareness – The brand of Marlboro Friday is well respected in
the market so it can fetch a slight premium over the other competitive
brands.
Innovative Product – With advanced features the product is perceived as
innovative in the current market context. A slight premium price will not
only emphasize the features of the products but also stops other players
entering into the present segment. A high premium price may attract new
entrants and thus lower the profitability.

15. Place – Distribution Channels
Place or Distribution Channel is a set of processes
through which Marlboro Friday delivers its products to
the customers. Distribution & Marketing channels fulfill
various purposes such as – logistics, easy availability of
the products to end consumers , enabling product
customization options at the point of sales, after sales
services and installation services, providing customers
information about the products , providing extensive
product assortment using product line – breadth, length,
and depth, providing product quality assurance,and
reducing purchase lot size thus enabling opportunities for
individual customers to buy products.

16. Designing Channels of Distribution for Marlboro
1. Channel Design
Marlboro Friday needs to choose whether it wants to
implement a distribution system which is – Direct,
Indirect, or Both. The channel design decision involves -
understanding of customer value proposition, current
customer convenience points, length breadth and depth
of Marlboro Friday product line, and competitors’
distribution systems.
Direct Distribution System – Marlboro Friday putting its
own direct distribution channel and reach directly to the
customers. It can be through opening its own stores or
just selling all the products online.
Indirect Distribution System – Marlboro Friday including
channel partners such as wholesalers, retailers, logistics
companies, and distribution agents.
Hybrid Distribution System – Marlboro Friday should
implement a hybrid model where the critical aspect of
distribution system are managed by Marlboro Friday, and
secondary functions such as logistics, warehousing, store
management are delegated to various channel partners.
2. Channel Management
Channel management is about managing various power
centers within the delivery system and managing them
based on bargaining power of each player in the value
chain. The channel management from marketing
perspective can be done considering three critical
aspects –
Market Development Requirement – One of the most
prominent functions of channel is market development.
If Marlboro Friday needs higher market development
efforts then it is sensible to include channel partners
who have know how and skills to expand into new
markets.
Per Unit Cost of Stocking – If the cost is high then
Marlboro Friday needs channel partners which can pool
in resources. Otherwise Marlboro Friday can do the
operations on its own.
Customer Willingness to Search & Travel to Purchase
Good – If the customer willingness is high then company
has a strong brand awareness and brand loyalty.
Marlboro Friday can design favorable channel policies vis
a vis channel partners.

17. Promotion - Marketing Communication
Promotion Mix or Integrated Marketing Communication strategy
is a mix of various promotion tools that are at disposal of
Marlboro Friday. They are – Advertising, Sales Promotion,
Personal Selling, Public Relations, and Direct Marketing.
Marlboro Friday can use all these five communication tools to
persuasively communicate to customer – existence of the
product, price of the product, differentiating features of the
product, places where people can buy the products, and finally
how consumers can effectively use the products or services.

19. 6M Model of Marketing Communication
Strategy for Casename
With the increase importance of online advertising and social
media role in product promotion, 6M Model of marketing
communication has become a critical marketing tool in hands of
marketing manager and promotion strategist to measure
marketing efforts impact. The 6M of Marketing Communication
Strategy Model are –

20. Market – The target segment –
current or potential, at which the
marketing communication efforts are
aimed at.
Mission – What are the goals and
Key Performance Indicators of the
marketing communication strategy.
Message – What are the specific
aspects – brand awareness, product
features , that Marlboro Friday wants
to communicate to its target
customers.
Media – Which are the most
effective media vehicle that
Marlboro Friday can use to convey its
message to its target market.
Money – Like all other organizations,
Marlboro Friday has limited
marketing resources so it has to
figure out how it needs to spend to
get the best outcome based on
specified objectives.
Measurement – How is the
promotion campaign impact is
measured. It can vary from brand to
brand within the organization. For
example – new product campaign
can be measured on spreading brand
awareness, while existing product
marketing campaign can be
measured on repeat purchase or
product recall.

21.  Email Marketing for
Marlboro
Email Marketing is form a direct
marketing approach that Marlboro
Friday can take to directly reach out
to its potential customers. Email
Marketing can help the Marlboro
Friday to reach out high probability
prospects based on the data
collected by the company using its
kiosks, trade marketing, and
customer survey.
 Search Engine Marketing
Another popular form of advertising
vehicle that has emerged in the last
decade and half is search engine
marketing where advertisements are
shown to the customers based on
their search history and browsing
history. Like email advertising this
can result in relevant advertising to
high potential prospective customers
who are already interested into
products and looking for information
regarding it.

22. SWOT Analysis of Marlboro
A SWOT Analysis is a strategic planning and
management technique that helps an organization
determine their strengths, weaknesses, opportunities,
and threats related to business competition or project
planning. It is a useful planning system that allows
Marlboro to help identify its performance about its
competitors and the industry as a whole.

23. To better understand the SWOT Analysis of Marlboro,
refer to the infographic below:

24. To Conclude
It is true that Marlboro is a well-reputed brand
worldwide with a large number of fanatics. Following
the SWOT analysis of Marlboro, we analysed that the
company’s key driving factor is its marketing strategy in
the present and the past but would have to improve on
its focus on other market segments rather than
depending on the US.

25. Reference:
Wikipedia.com
Forbes.com
By_Harshita Bansal
12 ‘Commerce’