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How Cigarettes are made and with what types of tobacco. And how the changes made in recent years with the ability of the tobacco companies to advertise.
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ByRuss Tijerina
Philip Morris
• 1847 opened on Bond St. in London• 1901 appointed tobacconist for King Edward
VII• 1985 Philip Morris restructures with Altria
Group, a holding company
History
Responsibly manufacture and market Philip Morris Brands to adult tobacco consumers in a financially disciplined way
Mission of Philip Morris
• Alpine
• Basic• Benson & Hedges• Bristol• Cambridge• Chesterfield • Commander• Dave’s• English Ovals• L&M• Lark• Merit• Parliament• Players• Saratoga• Virginia Slim
Product Description
• Bright• Burley• Oriental
Types of Tobacco
• Master Settlement Agreement of 1998• www.marlboro.com
Customers: Market Segmentation, Niche & Demographics
• Top Ten Cigarette Brands
• Marlboro• Newport• Camel• Winston• Doral• Basic• GPC• Salem• Kool• Virginia Slims
Primary & Secondary Competition
Market Share
• Challenges– Government Restrictions– Public Opinion
Evaluation of Marketing Procedures
• Moving Forward– Charitable giving– Smoking cessation programs– Support of government programs
• Family Smoking Prevention and Tobacco Control Act of 2009
Evaluation of Marketing Procedures
• Pricing• Product• Promotion• Placement
The Four Ps
Pricing• Excise Taxes– Federal • Hike in 2009 .45cents to $1.01
– State• Differs from state to state• Lowest : South Carolina - .07 cents• Highest: New York - $2.75• Wisconsin is $2.78 (federal & state combined)
The Four Ps
Pricing – Excise Tax
The Four Ps
Pricing• Price Increase– .71 cents per package
• Compared to Competition• Compared to past
The Four Ps
Pricing
• Affect on Consumers – 3% decrease annually (industry wide)– 9% decrease expected
The Four Ps
Product
• Cigarettes• Cigars• Smokeless Tobacco
The Four Ps
Product Life Cycle for Phillip Morris
Phillip Morris is in the Sales Decline stage
The Four Ps
Product
• Research & Development– Safer Cigarette
The Four Ps
• Evaluation
• Media & Target Market
• Public Relations
Promotion
Who were they targeting?
Men?
Medical
Sex
• TV
• Magazines
• Sports
Where they were, and Now
• Adult customers
• Kids
• Competitors
Market
• How to stop
• Where to go
• Who can help
Public Relations
Placement
Recommendations
Conclusion: Questions?
Recommended