This document provides background information on Marlboro cigarettes and its manufacturer Philip Morris USA (PM). It discusses how Marlboro transitioned from being a woman's cigarette in the 1920s to becoming the top selling cigarette brand in the US by the 1980s through associating the brand with masculinity and the cowboy image. The document also summarizes PM's marketing strategies for Marlboro from the 1950s to 2005, which evolved from TV and magazine ads to new age tactics like events, bars, websites and direct mail promotions after advertising restrictions in the late 1990s. It provides context on the tobacco industry, regulations, and PM's position as the leading cigarette company in the US.
The document summarizes a marketing plan for Metabical, a new weight loss drug. It discusses target consumers as moderately overweight individuals, and competitors include Alli and herbal supplements. The plan outlines advertising focusing on health risks of excess weight, a sales force of 32 representatives, and supporting programs to encourage lifestyle changes. The budget allocates most funds to marketing in the drug's first year to establish brand awareness and trial among the target segment.
Metabical is claimed to be a safe and effective weight loss drug. The case study describe the analysis of marketing strategy used to introduce the drug in the market and also establish a viable positioning for the product.
This document analyzes the herbal smoking device Nirdosh. It summarizes the product, objectives to increase market base and profitability. The marketing strategy proposed targeting cigarette smokers looking to quit by positioning Nirdosh as a healthier alternative, and the pharmaceutical industry by marketing its health benefits. Future prospects discussed expanding overseas, targeting the paan market, and establishing Nirdosh as a national brand in India.
ITC is one of India's largest conglomerates with diversified businesses including FMCG, hotels, paperboards, packaging, agri-business, and IT. It is a market leader in traditional businesses like hotels, paperboards, packaging, agri-exports, and cigarettes. The document provides an overview of ITC's vision, mission, products, revenues, employees, and eChoupal initiative to connect with rural farmers.
Pepsi Lipton Brisk - Harvard Business Review CaseFamy
This document summarizes a case study regarding marketing options for PepsiCo's Brisk iced tea brand. It includes a SWOT analysis, segmentation of target markets as millennial and Hispanic males, and positioning of Brisk as an "edgy, cool" brand that "gives you energy." Two advertising options are considered: television advertising or a viral social media campaign. The document recommends a viral campaign titled "That's Brisk, Baby: Rebirth" that would involve creative characters called "The Brisk Brothers" and the tagline "Now That's Brisk."
Mortein case study mARKETING bRAND pOSITIONINGAnkit Sen
Mortein is a leading brand of mosquito repellents in India that uses vaporizers. It differentiates itself based on ruggedness, sophistication, and excitement. GoodKnight is its main competitor and positions itself based on sincerity, competence, and excitement across its product ranges. Mortein has an umbrella brand architecture and vaporizers are its flagship product line. It aims to grow its vaporizer market share and introduce more affordable battery-operated vaporizers to target rural customers. Mortein's product mix includes combo packs, refills, and different powered versions of its vaporizers. It expects continued growth in the electric insecticides market.
The document summarizes a marketing plan for Metabical, a new weight loss drug. It discusses target consumers as moderately overweight individuals, and competitors include Alli and herbal supplements. The plan outlines advertising focusing on health risks of excess weight, a sales force of 32 representatives, and supporting programs to encourage lifestyle changes. The budget allocates most funds to marketing in the drug's first year to establish brand awareness and trial among the target segment.
Metabical is claimed to be a safe and effective weight loss drug. The case study describe the analysis of marketing strategy used to introduce the drug in the market and also establish a viable positioning for the product.
This document analyzes the herbal smoking device Nirdosh. It summarizes the product, objectives to increase market base and profitability. The marketing strategy proposed targeting cigarette smokers looking to quit by positioning Nirdosh as a healthier alternative, and the pharmaceutical industry by marketing its health benefits. Future prospects discussed expanding overseas, targeting the paan market, and establishing Nirdosh as a national brand in India.
ITC is one of India's largest conglomerates with diversified businesses including FMCG, hotels, paperboards, packaging, agri-business, and IT. It is a market leader in traditional businesses like hotels, paperboards, packaging, agri-exports, and cigarettes. The document provides an overview of ITC's vision, mission, products, revenues, employees, and eChoupal initiative to connect with rural farmers.
Pepsi Lipton Brisk - Harvard Business Review CaseFamy
This document summarizes a case study regarding marketing options for PepsiCo's Brisk iced tea brand. It includes a SWOT analysis, segmentation of target markets as millennial and Hispanic males, and positioning of Brisk as an "edgy, cool" brand that "gives you energy." Two advertising options are considered: television advertising or a viral social media campaign. The document recommends a viral campaign titled "That's Brisk, Baby: Rebirth" that would involve creative characters called "The Brisk Brothers" and the tagline "Now That's Brisk."
Mortein case study mARKETING bRAND pOSITIONINGAnkit Sen
Mortein is a leading brand of mosquito repellents in India that uses vaporizers. It differentiates itself based on ruggedness, sophistication, and excitement. GoodKnight is its main competitor and positions itself based on sincerity, competence, and excitement across its product ranges. Mortein has an umbrella brand architecture and vaporizers are its flagship product line. It aims to grow its vaporizer market share and introduce more affordable battery-operated vaporizers to target rural customers. Mortein's product mix includes combo packs, refills, and different powered versions of its vaporizers. It expects continued growth in the electric insecticides market.
Classic knitwear and Guardian: A Perfect Fit?ArielJimenez36
This document discusses a decision facing Classic Knitwear about whether to partner with Guardian to launch a new line of insect repellent knitwear. Classic Knitwear specializes in manufacturing unbranded casual knitwear, while Guardian is a brand of insect repellent popular with outdoor enthusiasts. The partnership could help Classic differentiate its products and improve its low gross margins of 18%. However, there are risks around whether the new product line would sell well and whether it aligns with Classic's strategy. The document analyzes different options for the partnership and their pros and cons.
Mortein Vaporizer: What lies beneath Brand Positioning?
Debasis Pradhan and Divya Agrawal
Hari Panda, the brand manager of Mortein Vaporizer, could not keep his
CSP is considering options for pricing, packaging, and demand forecasting for its new weight-loss drug Metabical. Three demand forecasting models were analyzed estimating the potential market between 4.3-9.8 million customers. Packaging and pricing strategies were evaluated using a matrix to determine ROI under different scenarios. Pricing at $150 targeting the ideal customer profile was estimated to achieve a 5.73% ROI, meeting CSP's objective.
- The document analyzes the Sonite and Vodite industries that Firm I competed in over 10 years. It discusses market segments, costs, products, distribution, and competitors.
- In Sonite, Firm I's most successful product was SISI, which targeted the growing Singles segment. In Vodite, their product VIFA found success among Followers.
- Across both industries, advertising expenditures comprised the largest portion of Firm I's costs. R&D costs were also substantial for entering the new Vodite market.
The document discusses Castrol India's plans to expand sales of its MCO 4T motorcycle oil in India. It notes that currently Castrol supplies only 2.5 million liters of MCO 4T per year, far less than market demand. It also analyzed distribution channels and market potential forecasts, finding that the non-franchised workshop segment has the highest growth potential. The document concludes by outlining Castrol's current vs. future projected market shares across different sales channels as it works to expand MCO 4T supply to meet more of the growing demand in India.
The document discusses the fast moving consumer goods (FMCG) industry in India. It analyzes the industry using Porter's Five Forces model. The FMCG industry is characterized by high volume and low cost products with short shelf lives that are sold through extensive distribution networks. The industry faces high rivalry among existing players who compete on price, promotions, distribution, and new products. Potential entrants face barriers like requirements for strong distribution networks and brands. Buyers have low bargaining power due to many alternatives. Suppliers also have low bargaining power. Substitutes pose varying levels of threat depending on utility and switching costs.
TruEarth is considering expanding into the $53 billion whole grain refrigerated pizza market but has concerns about viability given health concerns and competition. They conducted market research including 300 mall intercepts and an in-home product test of their basic pizza concept. The research found the concept had purchase intent but identified needed improvements like pricing and crust preferences. Sales volume is estimated at $15 million, above the $12 million needed, so the conclusion is TruEarth should launch the product after addressing identified issues.
Dave Robinson is evaluating promotional strategies for Boots' line of professional haircare products. The options are a "3 for 2" deal where customers get 3 products for the price of 2, a buy-one-get-one-free deal, or a 50p on-pack coupon. While the "3 for 2" strategy has the lowest estimated profit increase, it has the benefit of being unique to Boots and harder for competitors to copy. Considering Boots' relationships with celebrity hairdressers and the importance of protecting its leadership in the haircare segment, Dave decides that a "3 for 2" promotion is the best choice.
Wal-Mart has been able to sustain its competitive advantage and superior performance over the years through several factors:
1) Efficient distribution capabilities and low-cost partnerships with suppliers
2) Advanced data collection and analysis to improve demand forecasting
3) A customer-oriented workforce culture focused on low prices and continuous improvement
4) Maintaining everyday low prices (EDLP) to increase customer satisfaction and loyalty
To continue this success, Wal-Mart should focus on cost leadership through large scale operations and private label brands, address public relations issues, and enhance worker benefits to protect its reputation.
This document summarizes the situation facing BMW in Greece and provides recommendations. It finds that BMW's corporate culture differs from Greece's more family-oriented and hierarchical society. It recommends hiring local Greeks into key positions to bridge these cultural differences. It also recommends communicating BMW's vision clearly, changing problematic practices of the powerful local importer over time, developing dealerships further, and balancing global consistency with local responsiveness to improve BMW's market share in Greece.
The document discusses a case study conducted to understand how to convert bar soap users to liquid hand wash users and increase penetration of Lifebuoy's liquid hand wash segment. Surveys were conducted online and in-store. Key learnings showed urban users prefer liquid hand wash while rural users still prefer bar soap due to perceptions of liquid hand wash being costlier and less effective. Proposed strategies included highlighting liquid hand wash's germ protection and value for money. Additional strategies suggested a kids-focused antibacterial variant of Lifebuoy, tie-ups with schools for product placement, and engaging kirana stores for trials to boost the brand and new variant.
Colgate-Palmolive was considering launching a new toothbrush called Precision in the United States. It analyzed positioning Precision as either a niche product targeting gum health or a mainstream product. Mainstream positioning would capture more market share but risked cannibalizing other Colgate products. Consumer research found the brush design underwhelming and its gum health message not broadly appealing. The document recommends initially positioning Precision as a niche product and later transitioning to mainstream. It also suggests branding it as "Precision By Colgate" and promoting it heavily through dentist sampling and advertising to help it gain recognition without threatening Colgate's market position.
Ingersoll Rand manufactures stationary air compressors ranging from 3/4 to 6,000 hp. They use four distribution channels: direct sales force, independent distributors, IR distributors (Air-centers), and manufacturer's representatives. IR is introducing a new centrifugal compressor, the Centac-200, in the medium 200hp range. This market is currently dominated by Atlas Copco, which uses distributors. Three options for distributing the Centac-200 were considered: direct sales force, individual distributors, or Air-centers. Air-centers were concluded to be the best option as they are specialists who can focus on the niche oil-free compressor market and provide expert service, unlike individual distributors. This
Tweeter Electronics: Marketing Case AnalysisDipak Senapati
Tweeter is a specialty consumer electronics retailer founded in 1972 providing mid to high-end equipment through 21 stores by 1996. While Tweeter's growth rate had been better than the industry average, it faced challenges with its sale-based pricing reducing its quality/service positioning. To address this, Tweeter abandoned sales, introduced Automatic Price Protection to assure best prices, and shifted marketing from print ads to radio/TV to promote competitiveness. This helped change consumer behavior from waiting for sales to everyday fair pricing, improving Tweeter's performance.
Ingersoll Rand uses multiple distribution channels, including a direct sales force, independent distributors, company-owned distributors (Air Centers), and manufacturers' representatives. This document evaluates distributing a new 200hp centrifugal compressor, the Centac-200, through Air Centers versus independent distributors. Air Centers are recommended because they provide better control and market penetration for Ingersoll Rand compared to independent distributors. Distributing through Air Centers would save the company $450 per unit sold and generate an additional $90,000 in margin if 200 units were sold in the $9 million market.
Eureka Forbes Ltd is a consumer goods company based in Mumbai, India that was founded in 1982. It uses a direct sales model where employees called "EuroChamps" conduct cold calls and home demonstrations to sell water purifiers, vacuum cleaners, and other products. The document discusses Eureka Forbes' sales organization, recruitment and training of EuroChamps, their daily routines, and compensation structure. It also notes some current issues like territory conflicts and outlines changes the new CEO is making, like formalizing training and revising the compensation plan.
The purpose of this presentation is to provide a deeper understanding of Philip Morris‘ strategic efforts behind building Marlboro into a successful global brand. Key strategic decisions from the past as well as characteristics of the current global brand strategy are highlighted in this context.
This document provides information about trends in tobacco consumption and the tobacco industry. It discusses statistics showing declines in smoking rates in countries like the US and Spain due to increased regulations and public health campaigns. However, current smokers are consuming more on average. The document also includes an analysis of Marlboro's value chain, strengths, weaknesses, opportunities, threats and competitive environment. It outlines Marlboro's brand positioning, target customers, products, revenues and brand strategy focused on promoting freedom and lifestyle.
Classic knitwear and Guardian: A Perfect Fit?ArielJimenez36
This document discusses a decision facing Classic Knitwear about whether to partner with Guardian to launch a new line of insect repellent knitwear. Classic Knitwear specializes in manufacturing unbranded casual knitwear, while Guardian is a brand of insect repellent popular with outdoor enthusiasts. The partnership could help Classic differentiate its products and improve its low gross margins of 18%. However, there are risks around whether the new product line would sell well and whether it aligns with Classic's strategy. The document analyzes different options for the partnership and their pros and cons.
Mortein Vaporizer: What lies beneath Brand Positioning?
Debasis Pradhan and Divya Agrawal
Hari Panda, the brand manager of Mortein Vaporizer, could not keep his
CSP is considering options for pricing, packaging, and demand forecasting for its new weight-loss drug Metabical. Three demand forecasting models were analyzed estimating the potential market between 4.3-9.8 million customers. Packaging and pricing strategies were evaluated using a matrix to determine ROI under different scenarios. Pricing at $150 targeting the ideal customer profile was estimated to achieve a 5.73% ROI, meeting CSP's objective.
- The document analyzes the Sonite and Vodite industries that Firm I competed in over 10 years. It discusses market segments, costs, products, distribution, and competitors.
- In Sonite, Firm I's most successful product was SISI, which targeted the growing Singles segment. In Vodite, their product VIFA found success among Followers.
- Across both industries, advertising expenditures comprised the largest portion of Firm I's costs. R&D costs were also substantial for entering the new Vodite market.
The document discusses Castrol India's plans to expand sales of its MCO 4T motorcycle oil in India. It notes that currently Castrol supplies only 2.5 million liters of MCO 4T per year, far less than market demand. It also analyzed distribution channels and market potential forecasts, finding that the non-franchised workshop segment has the highest growth potential. The document concludes by outlining Castrol's current vs. future projected market shares across different sales channels as it works to expand MCO 4T supply to meet more of the growing demand in India.
The document discusses the fast moving consumer goods (FMCG) industry in India. It analyzes the industry using Porter's Five Forces model. The FMCG industry is characterized by high volume and low cost products with short shelf lives that are sold through extensive distribution networks. The industry faces high rivalry among existing players who compete on price, promotions, distribution, and new products. Potential entrants face barriers like requirements for strong distribution networks and brands. Buyers have low bargaining power due to many alternatives. Suppliers also have low bargaining power. Substitutes pose varying levels of threat depending on utility and switching costs.
TruEarth is considering expanding into the $53 billion whole grain refrigerated pizza market but has concerns about viability given health concerns and competition. They conducted market research including 300 mall intercepts and an in-home product test of their basic pizza concept. The research found the concept had purchase intent but identified needed improvements like pricing and crust preferences. Sales volume is estimated at $15 million, above the $12 million needed, so the conclusion is TruEarth should launch the product after addressing identified issues.
Dave Robinson is evaluating promotional strategies for Boots' line of professional haircare products. The options are a "3 for 2" deal where customers get 3 products for the price of 2, a buy-one-get-one-free deal, or a 50p on-pack coupon. While the "3 for 2" strategy has the lowest estimated profit increase, it has the benefit of being unique to Boots and harder for competitors to copy. Considering Boots' relationships with celebrity hairdressers and the importance of protecting its leadership in the haircare segment, Dave decides that a "3 for 2" promotion is the best choice.
Wal-Mart has been able to sustain its competitive advantage and superior performance over the years through several factors:
1) Efficient distribution capabilities and low-cost partnerships with suppliers
2) Advanced data collection and analysis to improve demand forecasting
3) A customer-oriented workforce culture focused on low prices and continuous improvement
4) Maintaining everyday low prices (EDLP) to increase customer satisfaction and loyalty
To continue this success, Wal-Mart should focus on cost leadership through large scale operations and private label brands, address public relations issues, and enhance worker benefits to protect its reputation.
This document summarizes the situation facing BMW in Greece and provides recommendations. It finds that BMW's corporate culture differs from Greece's more family-oriented and hierarchical society. It recommends hiring local Greeks into key positions to bridge these cultural differences. It also recommends communicating BMW's vision clearly, changing problematic practices of the powerful local importer over time, developing dealerships further, and balancing global consistency with local responsiveness to improve BMW's market share in Greece.
The document discusses a case study conducted to understand how to convert bar soap users to liquid hand wash users and increase penetration of Lifebuoy's liquid hand wash segment. Surveys were conducted online and in-store. Key learnings showed urban users prefer liquid hand wash while rural users still prefer bar soap due to perceptions of liquid hand wash being costlier and less effective. Proposed strategies included highlighting liquid hand wash's germ protection and value for money. Additional strategies suggested a kids-focused antibacterial variant of Lifebuoy, tie-ups with schools for product placement, and engaging kirana stores for trials to boost the brand and new variant.
Colgate-Palmolive was considering launching a new toothbrush called Precision in the United States. It analyzed positioning Precision as either a niche product targeting gum health or a mainstream product. Mainstream positioning would capture more market share but risked cannibalizing other Colgate products. Consumer research found the brush design underwhelming and its gum health message not broadly appealing. The document recommends initially positioning Precision as a niche product and later transitioning to mainstream. It also suggests branding it as "Precision By Colgate" and promoting it heavily through dentist sampling and advertising to help it gain recognition without threatening Colgate's market position.
Ingersoll Rand manufactures stationary air compressors ranging from 3/4 to 6,000 hp. They use four distribution channels: direct sales force, independent distributors, IR distributors (Air-centers), and manufacturer's representatives. IR is introducing a new centrifugal compressor, the Centac-200, in the medium 200hp range. This market is currently dominated by Atlas Copco, which uses distributors. Three options for distributing the Centac-200 were considered: direct sales force, individual distributors, or Air-centers. Air-centers were concluded to be the best option as they are specialists who can focus on the niche oil-free compressor market and provide expert service, unlike individual distributors. This
Tweeter Electronics: Marketing Case AnalysisDipak Senapati
Tweeter is a specialty consumer electronics retailer founded in 1972 providing mid to high-end equipment through 21 stores by 1996. While Tweeter's growth rate had been better than the industry average, it faced challenges with its sale-based pricing reducing its quality/service positioning. To address this, Tweeter abandoned sales, introduced Automatic Price Protection to assure best prices, and shifted marketing from print ads to radio/TV to promote competitiveness. This helped change consumer behavior from waiting for sales to everyday fair pricing, improving Tweeter's performance.
Ingersoll Rand uses multiple distribution channels, including a direct sales force, independent distributors, company-owned distributors (Air Centers), and manufacturers' representatives. This document evaluates distributing a new 200hp centrifugal compressor, the Centac-200, through Air Centers versus independent distributors. Air Centers are recommended because they provide better control and market penetration for Ingersoll Rand compared to independent distributors. Distributing through Air Centers would save the company $450 per unit sold and generate an additional $90,000 in margin if 200 units were sold in the $9 million market.
Eureka Forbes Ltd is a consumer goods company based in Mumbai, India that was founded in 1982. It uses a direct sales model where employees called "EuroChamps" conduct cold calls and home demonstrations to sell water purifiers, vacuum cleaners, and other products. The document discusses Eureka Forbes' sales organization, recruitment and training of EuroChamps, their daily routines, and compensation structure. It also notes some current issues like territory conflicts and outlines changes the new CEO is making, like formalizing training and revising the compensation plan.
The purpose of this presentation is to provide a deeper understanding of Philip Morris‘ strategic efforts behind building Marlboro into a successful global brand. Key strategic decisions from the past as well as characteristics of the current global brand strategy are highlighted in this context.
This document provides information about trends in tobacco consumption and the tobacco industry. It discusses statistics showing declines in smoking rates in countries like the US and Spain due to increased regulations and public health campaigns. However, current smokers are consuming more on average. The document also includes an analysis of Marlboro's value chain, strengths, weaknesses, opportunities, threats and competitive environment. It outlines Marlboro's brand positioning, target customers, products, revenues and brand strategy focused on promoting freedom and lifestyle.
En 1955, débute l’une des campagnes les plus efficaces de l’histoire de la communication (malheureusement pour la santé publique): le repositionnement de Marlboro. La marque quitte les chemins traditionnels (urbanité, valorisation sociale, réussite…) et son positionnement féminin, en recourant au symbole de la virilité, de la masculinité, alors également symbole des Etats-Unis si attractifs : le cow-boy (occasion exceptionnelle, aussi, de « faire passer » le filtre adjoint à la cigarette et qui semblait trop « féminiser » le produit).
Mais surtout et alors que les études médiatisées au cours de ces années annonçaient clairement la nocivité de la cigarette, le « Marlboro country » (à la fois un homme, un symbole, un paysage, une culture, une sensation) va réussir à contrecarrer le doute en positionnant la marque dans un autre univers.En rejoignant le « pays de Marlboro » et son héros, sauvage et naturel, fort et indomptable, la marque trouvait là – et pour une période longue - une parade exceptionnelle.
Ces slides ont été réalisés dans le cadre du projet IONIS Brand Culture.
Pour découvrir l'intégralité des cas étudiés, rendez-vous sur : www.ionisbrandculture.com.
This document outlines a marketing plan for a new pen product called Puzzle Pens. It includes sections on the product range, competitors' strengths, pricing, distribution channels, promotions, and the unique selling proposition of Puzzle Pens. The key points are that Puzzle Pens will target students and professionals, have ergonomic designs, waterproof ink, and stress-free writing. It will be distributed through wholesalers and retailers to customers.
Marlboro uses a variety of marketing strategies for its different cigarette products. It targets various demographic and psychographic segments, including men, women, younger adults, and regular versus non-regular smokers. Marlboro positions itself as providing good quality cigarettes at a reasonable price and uses promotions, product flavors and styles, and sponsorships to boost sales among its target audiences.
Branding, Marketing, & Advertising Compilation of Work, vol. 1John Beatty
Element Advertising in Asheville, NC was selected as The Dunhill Hotel's agency of record in August 2014--the first professional advertising firm ever retained by the hotel. This book details much of the work accomplished by Element Advertising and John Beatty during the first 18 months of the relationship to rebrand the hotel, brand the new restaurant, advertise within the hotel, on social media, and some printed media without a dedicated marketing budget.
Does your agency have a medical director? Are you getting your impaired risk cases placed? Dunhill Insurance is proud to have Nathan Harrison M.D. as our Medical Director!
1) El documento analiza la identidad y estrategias publicitarias de Marlboro, incluyendo el análisis de una imagen publicitaria, el uso de tipografía y elementos visuales. 2) Marlboro se dirige a adultos con poder adquisitivo y enfatiza la masculinidad a través de imágenes como el Marlboro Men. 3) La marca mantiene su identidad a lo largo del tiempo a través de elementos constantes como paisajes naturales y el enfoque en la libertad y masculinidad.
Marlboro has built strong brand equity over decades through consistent marketing strategies. It established a masculine image through iconic cowboy ads in the 1950s-1970s that resonated with customers. While advertising is now restricted, Marlboro relies on in-store promotions and loyalty programs. Its target market is adult smokers, with mid-priced cigarettes positioned as premium through the rugged Marlboro Man personality. Experts suggest maintaining this strategy with potential new premium and low-cost lines, but avoiding brand dilution through extensions beyond tobacco.
Este documento segmenta el mercado del tabaco según edad, sexo y nivel adquisitivo de los consumidores. Describe las características y preferencias de marcas de tabaco de diferentes grupos como jóvenes, adultos, adultos de mediana edad y personas de avanzada edad, tanto hombres como mujeres con poco o alto nivel adquisitivo. El documento concluye que los consumidores tienden a elegir marcas de acuerdo a factores como precio, salud, tradición, calidad y status social.
This document analyzes the cigarette industry in India. It discusses the evolution of the industry from its origins in 1887 under the British East India Company. India is now the third largest producer and exporter of tobacco in the world. The document examines the attractiveness and growth potential of the industry due to factors like increasing per capita income and education levels. It also analyzes the industry using Porter's Five Forces model and conducts a SWOT analysis, identifying strengths like large production size and opportunities in international markets, while noting weaknesses like high tobacco taxes and threats from anti-tobacco groups.
Este documento resume la historia de Apple Inc. desde su fundación en 1976 por Steve Jobs y Steve Wozniak hasta 2011. Detalla los hitos más importantes como el lanzamiento del Apple I y Apple II, la entrada a bolsa de la compañía en 1980, el éxito inicial del Macintosh en 1984, y el regreso y éxito de Steve Jobs en los años 90 y 2000 con productos como el iMac, iPod, iPhone e iPad. También analiza las capacidades diferenciales que han permitido el éxito continuo de Apple como su enfoque en el diseño, la innovación y la
Guy Razer has over 30 years of experience in leadership, quality assurance, financial planning, personnel management, and technical training for the U.S. Air Force and aerospace companies. He has coordinated operations involving 10 nations, managed multi-million dollar budgets and 500-person organizations, and developed training curricula that improved cost-effectiveness and survivability. Razer holds a Master's degree in Aeronautical Science and a Bachelor's degree in Aeronautical Studies from Embry-Riddle Aeronautical University.
The document provides a case study report on Shanghai Disney Resort. It discusses Disney's expansion to Shanghai, including a company analysis of Disney, external factors to consider in Shanghai, potential problems, and recommendations. Specifically, it analyzes challenges such as cooperating with the Chinese government and companies, identifying customer demand given cultural differences, and controlling excess customer volume. It recommends appointing leaders knowledgeable in Chinese culture, maintaining Disney's original style while adding Chinese elements, and using "special days" tickets to manage crowds.
KitKat is a chocolate-covered wafer biscuit bar created by Rowntree's of York and now produced globally by Nestlé. Each bar consists of fingers made of three layers of wafer covered in chocolate. Bars come in various flavors and sizes, including standard bars with two or four fingers or larger "Chunky" bars. The original packaging was red but changed to other colors between 1945-1947 due to milk shortages. In the US, KitKat packaging differs from other countries and "Chunky" is called "Big Kat". Advertisements originally called it a "meal" or wartime food. Modern ads feature dancing babies or limited edition white chocolate bars.
Center Fresh gum was launched in India in 1994 as
Audit Case Study Synopses (global streamlined)_RRG.PDFJarrod Patten
This audit of a property in Washington DC covered three ownership entities and two property managers over multiple years. The auditor found significant errors in various expense categories due to the landlord inconsistently using cash-based or accrual-based accounting. They also found overtime HVAC credits were incorrectly calculated. Additionally, certain expenses were understated in the base years by delaying them until after those periods. After adjustments, the audit resulted in substantial savings for the tenant.
Red Hat, a leading provider of open-source enterprise IT solutions, was struggling to consistently produce marketing materials for its growing global business due to lengthy design and production times. With 85 offices in 35 countries making daily design requests, maintaining the Red Hat brand was proving impossible without an intelligent platform. Red Hat implemented Outfit's cloud-based solution to generate branded materials using constraint-based templates. This allowed Red Hat to simplify and streamline its brand management process, reducing production costs and delays while improving consistency across markets. The Outfit platform transformed Red Hat's corporate branding into a dynamic and customizable system that has delivered significant time and cost savings.
LG Electronics is the largest player in the consumer electronics market in India. However, it is not seen as a youthful brand. To address this, LG wants to reposition itself as a youthful brand and focus on new product categories like mobile phones and LCD TVs. LG realizes it needs to appeal more to higher-income consumers that have "moved up the value chain". It will focus on more premium products and targeting younger consumers through new advertising campaigns and products. LG believes strengthening its image as a contemporary, trendy brand can help it succeed in new categories and meet its goal of increasing its market share in India.
This document analyzes the cigarette industry and whether spinning off Philip Morris' cigarette business would provide higher returns than government bonds given the additional risk. It finds that while the industry faces regulatory risks, barriers to entry like product differentiation through branding and marketing allow most companies to earn economic profits. Therefore, investing in Philip Morris could potentially offer higher risk-adjusted returns than bonds long-term.
1) Tobacco industry marketing has played a crucial role in the global spread of smoking through sophisticated strategies that target specific groups.
2) Tobacco companies develop brands targeting different consumer groups through careful manipulation of product characteristics, pricing, placement, and promotion.
3) Key target groups in the UK include young smokers starting out and seeking identity, as well as low-income loyal smokers sensitive to social stigma. Tobacco marketing strategies are highly effective at reaching and influencing these groups.
Well Malboro is one of the brand across the Globe which is covered in every subject as a case study. From the selection of logo, USP, tagline & how carefully the brand has expanded across the world with ease in such competitive market.
This document discusses the rise of electronic cigarettes (e-cigarettes) in the convenience store channel. It began as a small niche product sold online but has grown tremendously since 2010. E-cigarettes are now a $1 billion+ business in the US and have been adopted by nearly all c-store chains. Major tobacco companies have also entered the market. While retailers were initially skeptical of numerous small suppliers, many now carry top brands like blu and NJOY, as well as adding local options. Regulations from the FDA are expected but views differ on what forms they should take such as age limits versus advertising bans. Anti-smoking groups remain opposed, citing concerns about appealing to youth and big tobacco's involvement.
1) The document analyzes cigarette advertising techniques over time, including iconic ads like the Marlboro Man. Advertisers have used imagery of masculinity, freedom, and lifestyle to promote smoking.
2) As restrictions have increased, the tobacco industry has turned to more subtle advertising like sponsoring events. They also target new demographics like the LGBT community.
3) The future of tobacco advertising is uncertain as regulations continue to tighten globally, but the industry explores new promotional methods like point-of-sale displays and social media.
E-cigarette marketing analysis based on European Lawmakers reject tight restrictions on e-cigarettes and the e-cigarette industry waiting to exhale by The New York Times.
The document discusses R.J. Reynolds, a major tobacco company in the US. It details some of R.J. Reynolds' top cigarette brands which make up about 28% of the US market, including Camel, Pall Mall, Winston, and Kool. The document also discusses strategies around tobacco blending, marketing, product innovation, and harm reduction approaches.
Marlboro was originally marketed to women in the 1920s but struggled in the mid-20th century as other brands grew popular. To capitalize on health concerns, Marlboro repositioned itself as a men's brand using rugged cowboy imagery. This was highly successful, growing Marlboro to the top brand by the 1960s. Following advertising bans, Marlboro turned to motorsports sponsorships to maintain its masculine brand association, becoming one of Formula 1's most important sponsors. Today Marlboro remains the world's best-selling cigarette brand despite challenges from advertising restrictions.
Behavioural issues in chronic and communicable diseasesNik Ronaidi
The document discusses the history of tobacco use and the efforts of tobacco companies to promote smoking globally and thwart effective tobacco control efforts. It traces the history of tobacco from its origins in the Americas in 6000 BC through its commercialization and the rise of big tobacco companies in the US and their expansion into international markets in the 20th century. It also summarizes how tobacco companies have spent billions on marketing, political lobbying, and misleading public information campaigns to influence governments and prevent tobacco control policies that impact their profits. Specifically in Malaysia, it notes the tobacco industry's successful lobbying of government ministries to weaken proposed advertising restrictions there in 1982.
This document summarizes evidence from tobacco industry documents revealing decades of deception regarding the health risks of smoking and the addictive nature of nicotine. It argues the industry has not truly reformed and should not be trusted or involved in public health policy. While claiming publicly that smoking is not proven addictive, internal documents show companies privately acknowledged nicotine is addictive and the primary reason for smoking. The document aims to counter industry arguments that it has changed by demonstrating continued efforts to undermine health regulations and mislead the public.
Strategic decisions move a company toward its stated goals and.docxsusanschei
Strategic decisions move a company toward its stated goals and
perceived success. Strategic decisions also reflect the firm’s social
responsibility and the ethical values on which such decisions are
made. They reflect what is considered important and what a com-
pany wants to achieve.
Mark Pastin, writing on the function of ethics in business deci-
sions, observes:
There are fundamental principles, or ground rules, by which
organizations act. Like the ground rules of individuals,
organizational ground rules determine which actions are
possible for the organization and what the actions mean.
Buried beneath the charts of organizational responsibility,
the arcane strategies, the crunched numbers, and the politi-
cal intrigue of every firm are sound rules by which the game
unfolds.
The following situations reflect different decisions made by multi-
national firms and governments and also reflect the social respon-
sibility and ethical values underpinning the decisions. Study the
following situations in the global cigarette marketplace carefully
and assess the ground rules that guided the decisions of firms and
governments.
EXPORTING U.S. CIGARETTE
CONSUMPTION
In the United States, 480,000 deaths, about one in five, are related to
smoking each year. About 250 billion cigarettes were sold in the U.S.
in 2017, but sales are shrinking rapidly. Unit sales have been drop-
ping about 1 to 2 percent a year, and sales have been down by almost
5 percent in the last 10 years. The U.S. Surgeon General’s campaign
against smoking, higher cigarette taxes, nonsmoking rules in public
areas, and the concern Americans have about general health have
led to the decline in tobacco consumption. Faced with various class-
action lawsuits, the success of states in winning lawsuits, and pend-
ing federal legislation, tobacco companies have stepped up their
international marketing activities to maintain profits.
Even though companies have agreed to sweeping restrictions in
the United States on cigarette marketing and secondhand smoke
and to bolder cancer-warning labels, they are fighting as hard as
ever in the Third World to convince the media, the public, and
policymakers that similar changes are not needed. In seminars at
luxury resorts worldwide, tobacco companies invite journalists, all
expenses paid, to participate in programs that play down the health
risks of smoking. It is hard to gauge the influence of such semi-
nars, but in the Philippines, a government plan to reduce smoking
by children was “neutralized” by a public relations campaign from
cigarette companies to remove “cancer awareness and prevention”
as a “key concern.” A slant in favor of the tobacco industry’s point
of view seemed to prevail.
At a time when most industrialized countries are discourag-
ing smoking, the tobacco industry is avidly courting consumers
throughout the developing world using catchy slogans, obvious
image campaigns, and single-cigarette sales t.
This document traces the history of Philip Morris from its founding in London in 1854 to its evolution into Altria Group, Inc. It discusses key events such as Philip Morris expanding to the US in 1902, the introduction of popular cigarette brands like Marlboro and Parliament, mergers with companies like Benson & Hedges, and the spin off of Philip Morris International in 2008. The summary also outlines Altria's current business as the leading tobacco company in the US, with brands such as Marlboro, Copenhagen, and Black & Mild. It notes Altria's focus on financially disciplined businesses and responsibly satisfying adult consumers.
“Tobacco Industry Strategies for Opposing Open Arrangement on Wellbeing”IOSRJBM
he strategies utilized by the tobacco business to oppose government control of its items incorporate directing open relations crusades, purchasing logical and other skill to make discussion about built up certainties, subsidizing political gatherings, contracting lobbyists to impact strategy, utilizing front gatherings and associated businesses to restrict tobacco control measures, pre-empting solid enactment by squeezing for the reception of intentional codes or weaker laws, and ruining open authorities. Once in the past mystery interior tobacco industry records give confirmation of a 50-year trick to ''oppose smoking confinements, reestablish smoker certainty and save item risk guard''. The reports uncover vast intrigue on lawful, political and socially vital issues to the tobacco business and plainly show that the business is not arranged to act morally or capably. Societal activity is thusly requiredto guarantee that the general wellbeing outweighs corporate benefits. Suggestions for lessening the political impact of the tobacco business incorporate the accompanying. Each tobacco organization in each market ought to freely uncover what it thought about the addictiveness and damage created by tobacco, when it acquired this data, and what it did about it. The business ought to be required to ensure globally perceived fundamental purchaser rights to its clients. Exchange affiliations and other industry groupings set up to delude people in general ought to be disbanded. These proposals ought to be fused into WHO's Framework Convention on Tobacco Control
Individual Strategic AnalysisSwedish Match, ABTable of Conte.docxannettsparrow
Individual Strategic Analysis
Swedish Match, AB
Table of Contents
I. Introduction
2
Business Case
2
Problem Statement
2
Mission Statement
2
Vision Statement
3
II. External Assessment
3
General Environment
3
Economic
3
Demographic
3
Political/Legal
3-4
Socio-cultural
4
Technological
5
Global
5
III. Competitive Environment
5
Industry Analysis
5
Economic Structure
5
Life Cycle Stage
6
Porter 5 Forces Model
6-7
Industry Attractiveness
7
Strategic Group Analysis
8
Key Success Factors
8-9
Competitor Analysis Model
9-10
IV. Internal Assessment
10
Nature of the Firm
10
Culture & Leadership
10-11
Organizational Structure
12-13
Value Chain Analysis
13-14
Core Competence
14
Financial Ratio Analysis
14-15
V. Strategic Choice
16
SWOT Analysis
16-17
General Strategic Orientation
17
Grand Strategy Clusters
17-18
Grand Strategy Selection Matrix18
BCG Matrix
19
VI. Recommendations
19
Corporate Level Strategy
19
Business Level Strategy
19
VII. Managerial Implications
19-20
VIII. References
20-21
Swedish Match, AB
I. Introduction
Business Case
Swedish Match is headquartered in Stockholm, Sweden and is traded on the Nasdaq Stock Exchange under the ticker symbol SWMAY. Swedish Match manufactures and markets smokeless tobacco, cigars, and pipe tobacco. It is also the world's largest producer of matches and the number three makers of disposable lighters under the brand name Cricket.
Swedish Match has 14,343 employees and manufactures its products in 26 plants and 15 countries and sells its products in 140 countries.
As one can see Swedish Match is a well-diversified company with revenues generated from many product areas.
Swedish Match is the only global producer of snuff and holds a leading position in the Nordic snuff market and in South Africa.
In the U.S., Swedish Match competes against United Smokeless Tobacco, Conwood Inc., Swisher International and National Tobacco Company, LP. In the United States, Swedish Match faces fierce rivalry in the chewing tobacco, snuff, and loose-leaf segments within the smokeless tobacco industry. Within the United States, Swedish Match has the largest market share in the rapidly expanding value-priced segment. In 2001, Swedish Match had over $1.78 billion in sales spread across its various product lines.
History
The origins of Swedish Match and disposable lighter operations can be traced back to Svenska Tandsticks AB, which was founded in 1917. After a consolidation period from 1917-1932, two large companies replaced the twenty independent match manufacturing plants creating Svenska Tandsticks Aktiebolag with Ivar Kreuger as the President. The match company later changed its name to Svenska Tobaks AB (SWA). In 1984 after being transferred to the Swedish holding company Statsforetag AB, SWA was renamed Procordia AB in 1984. In 1985, Procordia acquired Pinkerton Tobacco Company, the leading manufacturer of chewing tobacco in the United States. Volvo acquired 40% of the sh.
Lung cancer is the leading cause of cancer death in the United States. Tobacco use accounts for at least 30% of all cancer deaths and 87% of lung cancer deaths, and increases the risk of several other cancers. Tobacco contains over 4000 chemicals, including 200 that are poisonous and 69 that cause cancer. The tobacco industry knew as early as 1953 that smoking causes health risks but launched a propaganda campaign to mislead the public and sow doubt about the science. While tobacco generates tax revenue, it costs the healthcare system far more than it contributes in taxes and causes widespread preventable disease. Banning tobacco would help public health but would also impact tobacco farmers' livelihoods, requiring support for alternative crops.
Equities Class- Tobacco Industry AnalysisJake Seraphin
Altria Group was valued using various methods including free cash flow valuation and discounted cash flow analysis. Free cash flows were projected for 2014-2019 using a 5% revenue growth rate and 1.5% terminal growth rate, resulting in a valuation of $67.64 per share. The weighted average cost of capital was calculated to be 7.32% using a cost of equity of 7.83% and cost of debt of 5.83%. Relative valuation compared Altria's return on assets of 14.71% and return on equity of 168.21% to competitors.
- Altria Inc. is the largest tobacco company in the US, with 49.8% of the market, but cigarette sales volumes have been declining 3-4% annually due to health concerns, regulations, and social factors.
- Altria operates efficiently through restructuring and has strong cash flows, but faces risks from increased taxes, regulations, and potential bans on menthol cigarettes or e-cigarettes.
- The report recommends selling Altria stock with a $44.64 price target based on stagnant earnings growth forecasts and concerns about sustaining dividend growth given debt levels and revenue declines.
2. 506-018-1
Marlboro: From Mass Marketing to New Age Promotions
On November 5th 2005, a select crowd of a few hundred people gathered in 49 cities in the U.S.
for the 50th birthday bash of Marlboro, the cigarette market leader in the U.S. with more than
40%1 market share. Despite advertising restrictions, agreed to by the cigarette marketers in 1998,
Marlboro was ahead of its competitors with a market share of 40%. The brand had reached the
top with traditional mass marketing techniques, and continued to hold on to its position by
adopting a mix of new age tactics like marketing at live events and bars, promoting Internet chat,
sign-ups for promotional offers from customers, price promotions, and direct mail.
On the contrary, supporters of the anti-smoking campaigns raised concerns that cigarette
advertising was done in a camouflaged manner and required more vigilance and stringent
restrictions. Industry analysts were not sure whether Marlboro, with its new age advertising
methods, would continue to dominate the market in the U.S. in the event of tougher restrictions in
the future.
Tobacco Industry
The tobacco industry comprised of companies that manufactured and marketed cigarettes, cigars,
snuff, and chewing and pipe tobacco. The industry was dominated by large companies such as
Philip Morris USA and R.J. Reynolds Tobacco Company. In the mid 1990s, the tobacco industry
in the U.S. was in a crisis after being sued by several States for understating the cancer-causing
effects of their products. This was followed by cash settlements, high tax on the profits of the
industry, smoking bans and advertising restrictions. Over the years, cigarette consumption had
decreased and it was even debated whether the industry would survive in the future (Annexure I).
During the late 1990s, the demand for premium cigars fell drastically as the market was saturated
with cheap cigars. Cigar manufacturers started to find new customers by adding exotic flavors.
This was a threat to the cigarette manufacturers. Further, the competition was intensified by the
entry of cigarillos2, which was perceived as better than the cigarettes, as it provided a longer
smoke. Though the market was competitive, there was not much scope for product innovation. In
order to differentiate their brands, manufacturers used flavors and unique packaging to add value
to their brands and developed premium brand extensions. These brand extensions helped to
capture the urban market. But at the same time, concerns were raised that the cigarettes with
flavors attracted teenagers to smoking.
In November 1998, the Master Settlement Agreement (MSA) between the Attorneys General
from 46 States of the U.S. and the tobacco companies, aimed at reimbursing States for medical
expenses related to the treatment of smoking-related illnesses. The reimbursement amounted to
$206 billion over a period of 25 years. As a result of this, cigarette companies hiked the prices
which, in turn, curtailed consumption (Annexure II). The downward sales-trend of cigarettes
continued in 2003. Consumers started to quit smoking because of health concerns, negative
public attitude towards smoking besides high prices caused by the MSA. Further, marketers were
unable to attract new smokers because of advertising restrictions imposed by the MSA.
The industry was invaded by a new breed of cigarette sellers who gave deep discounts by
supplying low-priced cigarettes. In a declining market where price was a major factor, these new
sellers grabbed the market share. The increasing prices of cigarettes encouraged smokers to
purchase low-priced cigarettes over the Internet. Online retailers gained a cost advantage by
1
‘Leader of the Packs’: http://www.businessweek.com/@@WZSkKWYQZ8JkMQ8A/premium/content/05_44/b3957107.htm,
November 23, 2005.
2
A cigarillo was a short, narrow cigar that resembled a cigarette. It was wrapped in whole leaf tobacco and contained less additives.
Cigarillos were like cigars, where the smoke was not inhaled and hence safer than cigarettes
2
3. 506-018-1
operating in tobacco-producing States with very low cigarette taxes or in areas with low/no
excise taxes. Some Internet retailers also sold counterfeit or smuggled cigarettes at low prices. In
2003, the top players launched a counterattack by offering price cuts and increasing advertising
budgets on their premium brands. This helped to regain the market for the premium and mid-
priced brands. But the discounted brands of the online retailers still remained a threat for the low
priced brands of these players.
In 2004, Marlboro marketed by Philip Morris USA (PM) held a market share of about 40%,
which was larger than the combined share of the next ten leading brands in the U.S.
Philip Morris USA
Philip Morris, a London-based tobacconist was a pioneer in hand-rolled cigarettes in the 1860s.
He sold them under the brand names, Oxford and Cambridge Blues. The company opened its
New York office in 1902 and sold tobacco brands, Marlboro3, Ambridge and Derby. In 1924,
Philip Morris introduced Marlboro as a woman’s cigarette and promoted the brand with the
slogan, “Mild as May”. The brand started to lose its appeal in the market during World War II.
After the war, three new competing brands, Camel4, Lucky Strike5 and Chesterfields6 emerged in
the market. This further weakened the market for Marlboro.
In 1942, the July issue of Reader’s Digest7 published an article titled, “Cigarette Advertising:
Fact and Fiction”. It was mentioned in the article that all cigarettes were the same and harmful.
Further in 1957, Reader’s Digest published another article that linked smoking to lung cancer.
Philip Morris identified the opportunity and repositioned Marlboro as a safer cigarette by adding
a filter tip. Consumers, unable to quit smoking, moved from established brands to try out new
brands. But Marlboro was initially targeted at a female audience and the new filtered cigarette
was perceived as another product extension. So Philip Morris repositioned Marlboro by
associating the brand with the image of a cowboy, which later on became accepted as the symbol
of American culture.
In 1967, PM introduced Marlboro 100s, which was relatively a longer cigarette. In 1968, the
company introduced Virginia Slims for women smokers. The brand image was created keeping
the modern woman in mind. In 1972, Marlboro Lights which contained low tar and nicotine was
launched. This was followed by further extensions, Marlboro 25s in 1985, Marlboro Ultra Lights
in 1989 and a milder version of Marlboro, Marlboro Mediums. The company responded to the
threat of moderately priced cigarettes by introducing Bristol and Alpine in 1989 and Buck, the
following year.
After the ban on cigarette advertising on television in 1971, the Marlboro campaign was featured
in magazines, billboards and point of purchase displays. The company responded to the changing
customer preferences and introduced various line extensions. In the 1980s, the industry was
facing a decline in the total consumption of cigarettes, but the market share for Marlboro steadily
increased to about 11% by 1971, to over 20% by 19838.
In 1985, the corporate framework of the group was restructured and Philip Morris Companies
Inc. became the parent company of Philip Morris Inc. The group acquired General Foods Corp.
3
Marlboro was named after Marlborough, a street in London where the company’s factory was situated.
4
Camel was launched in 1913 by R. J. Reynolds Tobacco Company. It was the first nationally marketed cigarette in the U.S.
5
Lucky Strike was a non-support brand of R.J. Reynolds Tobacco Company. It was provided the distribution support only.
6
Chesterfields was one of the top three brands in the U.S. and was marketed by Liggett & Myers.
7
Reader’s Digest was first published in 1922. It was a monthly general interest family magazine. By 2004, the U.S. edition of the
magazine reached 12.5 million prints.
8
Andrew Hyland, Ray Goldstein, Anthony Brown, Richard O’Connor, K. Michael Cummings; “Happy Birthday Marlboro – the
cigarette whose taste outlasts its customers”;
http://roswell.tobaccodocuments.org/downloads/50%20years%20of%20marlboro%20compiled%2020051121.pdf
3
4. 506-018-1
for $5.6 billion and its revenues increased by 50% to $25.4 billion in 1986. In 1988, the company
acquired Kraft for $13.6 billion. In 1990, Kraft Inc. and General Foods were combined to form
Kraft General Foods, which was the largest food company in the U.S. This was followed by
further acquisitions of Jack’s Frozen Pizza in 1992, RJR Nabisco in 1993 and many others in
Eastern Europe, former Soviet Union, U.K. and Scandinavia.
In 1998, the restrictions laid down by the MSA also affected PM. The company requested that a
substantial amount that each State received as a part of the $206 billion settlement amount, be
dedicated to Youth Smoking Prevention programs. In addition to this, PM spent $100 million on
the Youth Smoking Prevention program.
During January 2003, Philip Morris Companies Inc. changed its name to Altria9 Group Inc. as the
company wanted to shed its image as a tobacco company and reflect its wide portfolio. In 2004,
PM’s total retail share was 49.8% out of which Marlboro had the largest share of 39.5%. The
company, headquartered at Richmond, Virginia, was the manufacturer of Marlboro, Virginia
Slims, Benson & Hedges, Parliament, Basic and other brands. Apart from manufacturing, PM
also marketed and sold cigarettes in the U.S. and exported tobacco products. PM was the largest
cigarette company in the U.S. in 2005. It led the market10 with a retail share of 50.1% for the
third quarter in 2005 with Marlboro as the leading brand (Exhibit I).
Exhibit I
Retail Share of PM USA’s brands in second quarter of 2005
Source: Based on data from the IRI/Capstone Total Retail Panel; http://www.philipmorrisusa.com
Promoting Marlboro
From 1950s to 1980s
During the early 1950s, there were six filter11 cigarettes in the American market. These brands
together amounted to 10% of the total cigarette sales. The American men perceived that the filter
tip cigarettes were feminine. Marlboro, the non-filter tipped cigarette was positioned as ‘Mild as
May’ for women since 1924. In 1936, the company extended the line by adding a red beauty tip
to the cigarette and advertised with the slogan, ‘to match your lips and fingertips’. The brand
failed to attract the market and in 1954 sales were about 1%. Analysts felt that the brand’s future
was dim.
9
The New York based Altria Group, Inc. was one of the world's largest food, beverage, and tobacco corporations and was a
component of the Dow Jones Industrial Average.
10
IRI/Capstone Total Retail Panel was developed to measure market share in retail stores selling cigarettes. It did not include
sales from the Internet or direct mail.
11
Six filter cigarettes: Winston, Kent, L&M, Viceroy, Tareyton and Parliament.
4
5. 506-018-1
During May 1954, the company test marketed filter tipped Marlboro cigarettes in the State of
Texas. The cigarettes were in a new package of crush proof flip-top box. The company hired
Chicago-based advertising agency, Leo Burnett (Burnett), which changed the red and white
stripes of the package to a solid red chevron12 (Annexure III). The agency was asked to identify a
masculine image. In the brainstorming session that followed, the cowboy was chosen to represent
the brand. The brand was advertised with the line, ‘Delivers the goods on flavor’. The first
advertisement of the Marlboro Man was used in Dallas, Fort Worth in early January 1955. Within
a span of eight months of Marlboro’s launch, the sales increased by 5000%13 and Marlboro
became the top selling filtered cigarette.
Burnett further added more men, who looked tough but polished, in the Marlboro ad. A simple
military tattoo on the back of the Marlboro Man’s hand became a part of the campaign till it was
replaced by the cowboy in ‘Marlboro Country’ in 1962. A Western landscape, a rugged cowboy
and the color red became the essential elements of the Marlboro ad and with these elements in the
ad the brand was recognized even without the brand name, sales pitch or slogan (Annexure IV).
In 1963, Philip Morris purchased the rights of the Academy Award nominated soundtrack of the
movie, ‘The Magnificent Seven’. This was used as the background music for the Marlboro TV
commercials. This musical score became an integral part of the Marlboro campaign. In 1971,
cigarette advertising was banned from television and radio. This led to tobacco companies
advertising through the outdoor media. Over a period of time, the geometrical red and white
design of the packaging was used as point of purchase display on retail counters across the U.S.
and other countries. The Marlboro ads also adorned the billboards on the highways in the U.S. By
December 1975, Marlboro was named14 as the ‘top selling brand in the United States and the all-
time best-seller in the world’. By the late 1980s, the industry was shifting its resources away from
billboards. The colorful and panoramic Marlboro ads made inroads into magazines from Life to
Playboy. In 1989, Marlboro emerged as the best-seller15 with one fourth of the total cigarette
sales in the U.S.
From 1990s to 2005
With advertising on radio and television being banned, the tobacco companies spent $300 million
on billboard advertising alone in 1996. Later on, in 1998, the MSA limited advertising and sports
event sponsorships by the tobacco industry. The major players in the tobacco industry agreed to
remove the billboard ads in stadiums, shopping places and arenas. The MSA also banned the
distribution and sale of merchandise (such as caps, T-shirts and backpacks) with brand names and
logos of the tobacco companies. The ban also extended to the use of cartoons in advertising and
packaging of tobacco products. With restrictions on tobacco advertising, the industry focused on
magazines and other media. In 1998, the advertising expenditure of the industry increased by
25% to $375 million. The industry was experimenting with innovative methods such as retail
store displays, direct mail and hosting events to promote its brands. As an industry insider
mentioned, ‘All that former advertising money has to go somewhere. The tobacco firms are
looking to create extensive “design languages” in bars and clubs and other venues through the
use of particular types of furniture or material which will make people think of their brands’16
(Annexure V).
12
An inverted V- shaped design.
13
Katherine M.West: “The Marlboro Man: The Making of an American Image”;
http://xroads.virginia.edu/~CLASS/AM483_95/projects/marlboro/mman.html
14
ibid
15
http://www.jmdl.com/glossary/entry.cfm?id=69
16
Jamie Doward & Lea Teuscher; ‘Tobacco firms’ subtle tactics lure smokers to their brand’, The Observer, September 25, 2005;
http://observer.guardian.co.uk/uk_news/story/0,6903,1577892,00.html
5
6. 506-018-1
PM was one of the companies to initiate and adopt new methods to promote Marlboro (Annexure
VI). The company used live events and bars as a platform to host evenings and promotions, and
encouraged sign-ups from customers for promotional offers. The company also launched a
website, where smokers signed up to win discount offers, price promotions, customized mail and
engaged in online chat. Marlboro built a database (by the company field sales representatives,
through Internet sign-ups and calls to an 800 number17) of 26 million smokers who were sent
birthday coupons and invitations to attend special events like the November’s (2005) birthday
concerts. The smokers in the Marlboro database also participated in a game, ‘Outwit The West’
contest where the winning team (comprising of four members) won a prize money of $1 million.
The only mass-market promotion was a cigarette packaging, featuring the special anniversary
cover for a short period of two weeks and similar signs in stores.
For the loyal customers of Marlboro, a special booklet was mailed. This booklet contained prizes
from a Zippo18 lighter to a Quarter Horse19. Some of these prizes were redeemed with the
Marlboro Miles earned on each cigarette pack purchased, while others were given away in
sweepstakes20. Marlboro arranged special trips to its ranch in Montana, where its customers were
pampered with gifts, meals, drinks, and massages, and were involved in outdoor activities like
snowmobiling and horseback riding. The company believed that treating customers with such
extravagance built loyalty. As one customer mentioned, ‘I’d never smoke another brand of
cigarette.’21
To add new customers, Marlboro enticed retailers with price cuts, in-store promotions and other
deals. According to the Federal Trade Commission22, out of the $15 billion spent in 2003 on
tobacco marketing, nearly 80% was spent on discounts and incentives to retailers. A retailer who
owned 22 Kent Kwik Convenience Stores in Midland, Texas, paid $5.50 less for a carton of
Marlboros as compared to a carton of Camels. In turn, the retailer gave 66% of his cigarette shelf
space to Marlboro. He mentioned that PM offered him a better deal than the other cigarette
companies and went on to say that Marlboro was the dominant brand in his market.
It was believed that the company was on a successful path with its marketing campaign which
was not only followed by other marketers23 but also its competitors. Competitors of PM were
unhappy about the advertising restrictions and felt that they had no choice but to follow the
leader, Marlboro. Tommy J. Payne, Executive Vice President of External Relations, R.J.
Reynolds Tobacco Co. mentioned that his company used the same direct marketing tactics as PM
and added,
‘If you have 50% of the domestic market and the ability of your competition to react to that (is
limited), you don’t have to have a Harvard MBA school degree to know who benefits. It’s the
bigger brand.’24
17
The 800 number was a toll free number in the U.S.
18
Zippo Manufacturing Company, established in 1932, was the maker of the world-famous windproof lighter with the lifetime
guarantee. The company’s diverse line included pocket knives, key holders, money clips, writing instruments and measuring tapes.
19
The Quarter Horse, named for its extraordinary speed over a quarter of a mile, was America's most popular and successful breed. In
the fifty-seven years from the beginning of registration in 1940 nearly 3 million horses were registered and the breed was
represented in over sixty countries around the world. Traditionally, the horse of the Western ranches and the short distance
racetrack, the Quarter Horse competed for huge prizes on the racetrack and in many other events.
20
A sweepstakes was a lottery in which the prize was financed through the tickets sold. In the U.S., it was associated with promotions
where prizes were given away for free. They were called prize draws in the United Kingdom. The term ‘sweepstakes’ was derived
from the Irish Sweepstakes which became popular from the 1930s to the 1980s.
21
Michael Thomsen, a pack-a-day smoker from Wake Forest, N.C., was gifted a ranch trip on his birthday in 2004.
22
The Federal Trade Commission was founded in 1914 to prevent unfair methods of competition in business in the U.S. The
Congress, over the years, passed additional laws and gave more authority to police anticompetitive practices.
23
Other companies to benefit from viral advertising were General Motors, Audi and Axe deodorant.
24
‘Leader of the Packs’: http://www.businessweek.com/@@WZSkKWYQZ8JkMQ8A/premium/content/05_44/b3957107.htm,
November 23, 2005.
6
7. 506-018-1
What Next?
The MSA ended tobacco advertising in its traditional form. But it gave Marlboro an opportunity
to understate its promotional campaign, be more aggressive in retail stores, and creative in its
media plan. Experts said such marketing was becoming popular. Gerard Hastings, Director,
Institute for Social Marketing and Centre for Tobacco Control, Stirling University25 added, ‘The
more subtle the message, the more likely it is to be accepted. If you see something blatant, it
forewarns you. But if it’s something subliminal it will go under the radar.’26
At the same time, health experts were satisfied at the decreasing smoking levels in the U.S. But
there was still criticism about Marlboro’s tactics. Apart from the legislation, PM had self-
imposed tougher restrictions on ads and kept its ads out of magazines. But concerns were raised
about Marlboro’s marketing plans. As Amanda Sandford, Research Director of the anti-smoking
group ASH27, pointed out, ‘Cigarette advertising is going underground, it’s becoming more
covert. This just shows the need for greater vigilance’.28
With stringent laws, the landscape of tobacco advertising in the U.S. had certainly changed and it
was felt that the legislations would continue to be tougher in the future. In an environment with
increasing restrictions on advertising would Marlboro continue to be the market leader?
25
Stirling University was located at Scotland, U.K.
26
Jamie Doward & Lea Teuscher; “Tobacco firms’ subtle tactics lure smokers to their brand”, The Observer, September 25, 2005;
http://observer.guardian.co.uk/uk_news/story/0,6903,1577892,00.html
27
Action on Smoking and Health (ASH) was a non-profit, tax-exempt, legal action and antismoking organization based in the United
States. It was solely devoted to the problems of smoking. Its principal activity was to serve as the legal action arm of the
nonsmoking community, bringing or joining in legal actions related to smoking, and insuring that the voice of the nonsmoker was
heard. It also served as an advocate of the nonsmokers' rights movement.
28
Op cit Footnote 26: “Tobacco firms’ subtle tactics lure smokers to their brand”;
http://observer.guardian.co.uk/uk_news/story/0,6903,1577892,00.html
7
8. 506-018-1
Annexure I
Cigarette Consumption in the U.S. from 1991 to 2005
Source: Thomas C. Capehart, Jr.‘Trends in the Cigarette Industry After the Master Settlement Agreement’;
www.ers.usda.gov/publications/tbs/oct01/tbs250-01
Annexure II
Trends in Cigarette Prices from 1990 to 2001
Source: Thomas C. Capehart, Jr.‘Trends in the Cigarette Industry After the Master Settlement Agreement’;
www.ers.usda.gov/publications/tbs/oct01/tbs250-01
8
9. 506-018-1
Annexure III
Marlboro Pack Design
Source:http://www.wclynx.com/burntofferings/packsmarlboro_filter.html
9
10. 506-018-1
Annexure IV
Advertising History of Marlboro
Source:roswell.tobaccodocuments.org/downloads/50%20years%20of%20marlboro%20compiled%2020051121.pdf
10
11. 506-018-1
Annexure V
Trends in Cigarette Marketing & Promotion
Source: http://www.who.int/tobacco/en/atlas22.pdf
Annexure VI
Marlboro’s Subliminal Messages
In Britain’s up market bars and music events, Philip Morris attempted ‘experiential marketing’. The
furniture and design were used to subtly convey the brand’s strengths. The company offered financial
incentives to managers to fill their bars with furniture bearing the Marlboro logo and place branded
ashtrays and vending machine in areas where smoking was allowed.
PM also communicated through themed bar areas or installations which were put up at major social
events without the brand name or the logo being featured. These installations were known as
Marlboro Motels. They contained lounge areas with comfortable red sofas placed in front of video
screens showing scenes from the Wild West. This reminded the message of the Marlboro country.
PM also created ‘chill out’ smoking areas, which featured a sofa shaped like a bath tub. This gave an
impression to the smokers that it was area where they could relax and subtly suggested that Marlboro
could help them deal with stress.
PM also trained its marketing teams with scripts to use while interacting with bar managers and event
promoters. The script had statements like, ‘Our customers are your customers’, ‘Nearly 80 per cent of
Marlboro smokers are ABC1, aged 18 to 35’ and ‘Marlboro is arguably the world’s best known brand
after Coco-Cola’. This was a part of a comprehensive plan to target affluent smokers aged between 18
and 35. PM also wanted to make its presence in high-profile music events where attractive female
‘Marlboro models’ sold cigarettes.
Source: Jamie Doward & Lea Teuscher; ‘Tobacco firms’ subtle tactics lure smokers to their brand’, The
Observer, September 25, 2005; http://observer.guardian.co.uk/uk_news/story/0,6903,1577892,00.html
11
12. 506-018-1
References
1. ‘Leader of the Packs’; November 23, 2005;
http://www.businessweek.com/@@WZSkKWYQZ8JkMQ8A/premium/content
/05_44/b3957107 .htm; accessed on November 23, 2005.
2. Andrew Hyland, Ray Goldstein, Anthony Brown, Richard O’Connor, K. Michael Cummings;
Happy Birthday Marlboro – the cigarette whose taste outlasts its customers;
http://roswell.tobaccodocuments.org/downloads/
50%20years%20of%20marlboro%20compiled%2020051121.pdf
3. ‘The Marlboro Man Meets the Surgeon General’;
http://xroads.virginia.edu/~CLASS/AM483_95/projects/marlboro/mman1.html
4. Thomas C. Capehart, Jr.‘Trends in the Cigarette Industry After the Master Settlement
Agreement’; www.ers.usda.gov/publications/tbs/oct01/tbs250-01
5. Jamie Doward & Lea Teuscher; ‘Tobacco firms’ subtle tactics lure smokers to their brand’,
The Observer, September 25, 2005;
http://observer.guardian.co.uk/uk_news/story/0,6903,1577892,00.html
6. ‘Marlboro Man Hangs up Billboard Hat’; April 23, 1999;
http://www.cnn.com/US/9904/23/tobacco.billboards/
7. Usha Ramachandran, ICFAI Knowledge Centre; Case study on www.ecch.com: ‘From “Philip
Morris” to “Altria”’
8. Bruce Isaacson and Prof. Alvin Silk, Harvard Business School; Case study on www.ecch.com:
‘Philip Morris: Marlboro Friday (A)’
9. ‘The Marlboro Man’; http://www.adage.com/century/icon01.html; accessed on
December 6, 2005.
10. Stacy Flaherty & Mimi Minnick, November 2000; ‘Marlboro Advertising Oral History And
Documentation Project, ca. 1926-1986’;
http://americanhistory.si.edu/archives/d7198.htm#top; accessed on December 6, 2005.
11. ‘The Marlboro Man: 1954-1962’; http://users.wclynx.com/theshaws/adsmarlboro.html,
accessed on December 6, 2005.
12. ‘History of Cigarette Advertising’; accessed on December 20, 2005,
http://www.clinimmune.com/immunotoxicologylab/smokinghistory.htm;
13. ‘Industry Brief: Cigarettes’, August 28, 2003;
http://www.oligopolywatch.com/2003/08/28.html
14. ‘Tobacco Industry Marketing’, September 2005; accessed on November 24, 2005;
http://www.cdc.gov/tobacco/factsheets/Tobacco_Industry_Marketing_Factsheet.htm
15. http://www.philipmorrisusa.com
16. www.altria.com
17. www.tobacco.org
18. http://www.jmdl.com/glossary/entry.cfm?id=69
19. www.who.int
20. www.ftc.gov
21. http://xroads.virginia.edu/~CLASS/AM483_95/projects/marlboro/mman1.html
22. http://www.courses.rochester.edu
23. www.npr.org
24. www.wikipedia.com
25. www.life.com
26. www.answers.com
27. www.dictionary.com
12