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?