The document details Philip Morris' global marketing strategy for Marlboro, highlighting its evolution into the world's best-selling cigarette brand through strategic branding and global expansion. It outlines key aspects of its marketing mix, including product innovation, promotional strategies, pricing, and distribution tailored to local markets. Despite facing challenges such as health warnings and advertising restrictions, Marlboro's strong brand image and effective market research have enabled it to maintain its leadership position in the tobacco industry.

1. INTERNATIONAL MARKETING
Marlboro
Global Marketing Strategy
Surgeon General‘s Warning:
Smoking kills.
20 CLASS A CIGARETTES

2. Purpose of this presentation:
To provide a deeper understanding of Philip Morris‘
strategic efforts behind building Marlboro into a
successful global brand by highlighting key strategic
decisions from the past as well as characteristics of
the current global brand strategy.

3. 1. Introduction
AGENDA 2. Short Brand History
3. Marlboro Goes Global
4. Current Brand Strategy
5. Global Marketing Mix
Product
Promotion
Price
Place
6. Conclusions

4. INTRODUCTION
world‘s best-selling cigarette brand
(300 bill. units sold in 180 countries)
world‘s most profitable non-durable
consumer good
flagship brand of Philip Morris, the world‘s
largest cigarette manufacturer

5. INTRODUCTION
18th „Most Valuable Brand in the World“
(Interbrand ranking 2011, net value: 20 bill. $)
most recognized and appealling brand image of the
20th century: Marlboro Man and Marlboro Country
Marlboro Man – symbol of the true American spirit
and American way of life marketing tool with
unprecedented success

6. SHORT BRAND HISTORY
introduced in the 1920s in the U.S. by Philip Morris,
named after Maroborough Street in London
different positioning before and after World War II
1955 Leo Burnett repositions the brand to appeal to
both male and female smokers – „The Tattooed Man“
image campaign, later „The Marlboro Cowboy“
1963 – extension with „The Marlboro Country“ theme

7. SHORT BRAND HISTORY
Marlboro in the 1920s and 1950s

8. SHORT BRAND HISTORY
Marlboro after the 1950s

9. SHORT BRAND HISTORY
next decades global expansion and positioning as a
global brand reasons
by 1972 no. 1 tobacco brand in the world
1993 „Marlboro Friday“
1996 first tobacco product in the Marketing Hall of
Fame, together with Coca-Cola, Walt Disney, Nike, etc.

10. MARLBORO GOES GLOBAL
global expansion: „a mixture of organic growth,
geographical expansion and acquisitions“
1950s – first sales organizations and production facilites
outside the U.S., 1955 – Philip Morris Overseas
today: production sites in 56 countries, sales subsidiaries
in 150 countries, sales in 180 countries
licensing agreements, joint ventures with local
producers, privitazation of state-owned tobacco factories

11. MARLBORO GOES GLOBAL
core strategic concept: „to sell a marketable version of the
American West or the American Dream“ to consumers worldwide
find a global target segment and approach it through a
standardized marketing and advertising approach: export of the
Marlboro Man and Marlboro Country theme
highly successful approach but not in every market example of
Hong Kong

12. MARLBORO GOES GLOBAL
Several decisive success factors:
PMI‘s position as a strong U.S. corporation
increased global popularity of Western movies
effective global market research efforts to identify a
global consumer group with similar values and
attributes
Marlboro as part of „the global mass culture“

13. CURRENT GLOBAL STRATEGY
Specific tobacco industry characteristics:
high homogeneity of products, differentiation only
through branding and marketing
high concentration with 5 major players: PMI, BAT, JTI,
IT, RJ Reynolds
many restrictions and regulations, public awareness

14. CURRENT GLOBAL STRATEGY
target: global community of young adult smokers
USP: high-quality American style cigarettes
focus: growth segments of each market and new
opportunities for growth
advantages: strong global brand image and high recognition
despite restrictions on advertising

15. CURRENT GLOBAL STRATEGY
a superior, highly diversified product line
a commitment to quality
the use of global media channels and global events
reasonable and affordable pricing
constant product innovation
an aggressive distribution strategy
corporate social responsibility

16. CURRENT GLOBAL STRATEGY
Marlboro has a tradition of being the
industry’s innovator
examples: the flip-top box, cork looking
filters, slow burning paper, slide packs, etc.
Filter Plus Technology: a revolutionary,
flavor enhancing, four-chamber filter system

17. MARKETING MIX: PRODUCT
high degree of standardization with carefully
selected adaptations to local preferences
positioned worldwide as a high quality
product in the premium segment
2008 launch of the new Marlboro Brand
Architecture to broaden the target market

18. NEW BRAND ARCHITECTURE
Flavor Line
Gold Line
Fresh Line

19. MARKETING MIX: PRODUCT
Brand Architecture Product Innovations
packaging upgrades (Marlboro Red Filter Filter Plus Technology
Plus Slide Pack) and many line extensions
for individual markets Marlboro Intense (shorter, rich-flavored
cigarette)
quality improvements
new menthol products (Crisp, Fresh and
appealling and sophisticated design – Ice Mint, mainly for the Asian market) and
promotional function of packaging kretek or clover cigarettes

20. MARKETING MIX: PROMOTION
predominantly standardized with some local
adaptations, strict ethical code
shift from traditional channels to alternative ones
due to restrictions on tobacco advertising
use of global media channels: Internet
sponsorship of global events: Formula 1 Ferrari
Team, Ducati Motor Racing Team

21. MARKETING MIX: PROMOTION
“switch-selling” and “buy one, get one for free”
activities performed by local sales force
online promition: discounts, coupons, birthday
gifts, concert tickets, competitions with prizes for
registered members
Marlboro Club: uniting smokers who love Marlboro
cigarettes, maintain brand loyalty

22. MARKETING MIX: PRICE
highly adapted , due to different taxation, income levels and
competitive situations, positioned as a premium brand in the
upper price segments across all markets
however, affordable pricing strategy to attract smokers
“sell-low strategy” high disparities (6$ in U.S. versus 79
cents in Senegal for Marlboro Red) critique
due to large market share, Marlboro can “set” prices of the
industry (1993 worldwide price-cut to protect market share)

23. MARKETING MIX: PLACEMENT
highly adapted to local conditions , due to differently restricted
access to distribution channels across markets
example: U.S. – supermarkets, convenience stores, gas stations,
discount stores versus Austria – only in tobacco shops
common characteristic: maximum distribution coverage and top
shelf space to emphasize brand superiority
effective sales force, takes advantage of large market share,
builds strong relationships with retailers

24. CONCLUSIONS
Marlboro’s exceptional success as a global brand is the result of:
a carefully planned and implemented global expansion strategy
effective market research to identify a global consumer segment
a strong brand image to appeal to this global consumer group (Marlboro Man)
an optimal mix between standardization and adaptation across markets
past challenges like: health warning labels, marketing constraints, public
scandals, legal lawsuits, etc. were mastered successfully

25. CONCLUSIONS
rapidly changing tobacco industry environment
many future challenges like: increased taxes on cigarette sales,
introduction of plain packaging, ban on various ingredients,
product display bans in retail stores
Marlboro and Philip Morris need to find new and innovative ways to
address these challenges and maintain global market leadership

26. THANK YOU FOR YOUR ATTENTION!
SOURCES AVAILABLE ON REQUEST.