From: afoxland@starband.net
Date: Thu, 02/27/03
Anne Landman Posting Date: Thursday, February 27, 2003
No Title -- Discusses Principal Risks to Marlboro
Company/Source: Philip Morris/Altria
Document Date: 1986 (est.)
Length: 19 pages
Bates No. 2043543036/3054
URL: http://tobaccodocuments.org/landman/2043543036-3054.html
PDF version: http://tobaccodocuments.org/landman/2043543036-3054.pdf
This Philip Morris (PM) marketing strategy document carries some
insights into how PM/Altria views its cigarette markets. For example, in
discussing the Benson and Hedges (B&H) brand, it observes that "[relatively
affluent, higher educated smokers] have lower start rates and are quitting at
faster rates than smokers with blue collar occupations," and, based on this
information (which presaged the demise of the brand), PM planned to target
future promotional efforts for Benson and Hedges cigarettes at younger adults,
blacks and Hispanics.
PM/Altria also notes that a decline in the number of young
smokers could affect future sales, saying
"The principal risk facing Marlboro during the plan period is the
projected decline in the number of young smokers. From a total of 28 million
now, the 18 to 24 age category is forecasted to decrease to approximately 125
million in 1991. Start rates for young adults are expected to remain relatively
stable, but at a much lower level than ten years ago...These trends make it
important that Marlboro continues building share among young smokers..."
PM/Altria also admits in this document that (rather than
discouraging youth smoking) it actually depends on peer pressure to sell its
brands:
"...Long test markets are especially necessary for image products
targeted toward young smokers where word of mouth (peer exposure) remains an
important method to generate brand recognition and unit volume growth."
Quotes:
The principal risk facing Marlboro during the plan period is
the projected decline in the number of young smokers. From a total of 28 million
now, the 18 to 24 age category is forecasted to decrease to approximately 125
million in 1991. Start rates for young adults are expected to remain relatively
stable, but at a much lower level than ten years ago...These trends make it
important that Marlboro continues building share among young smokers...
[From Page 6, Bates No. 204354041}
B&H currently has a relatively affluent, higher educated
smoker profile. Survey data indicate that these groups have lower start rates
and are quitting at faster rates than smokers with blue collar occupations.
While we intend to maintain broad media support to B&H's core smokers, targeted
efforts will be directed at younger adults, blacks and Hispanics...
...Inner city sampling programs and specialized POS will
continue to be employed to increase menthol exposure among blacks...
[From Page 8, Bates No. 204354043}
Initial positioning [of Merit] as the industry's most
technologically advanced cigarette gave Merit strong appeal among higher
educated, higher income smokers. As previously mentioned, this group has
relatively low and declining incidence which reduces the brand's potential
smoker base...
[From Pages 18-19, Bates Nos. 2043543053/3054]:
...It appears that brand of choice phases last approximately
ten years... With no comparable brand image available, young smokers continued
to view Marlboro as "their" brand. The success of Marlboro Lights among older
Marlboro smokers may have increased Marlboro Red's acceptability among young
people...
...Long test markets are especially necessary for image
products targeted toward young smokers where word of mouth (peer exposure)
remains an important method to generate brand recognition and unit volume
growth.
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Company: Philip Morris/Altria
Author: N/A, Presumed corporate author, Philip Morris
Found in the area of
Reuter, Barbara (Philip Morris marketing department)
Wrote interesting documents about inter-relationship of sales, addiction and
demographics. PM Marketing Dept.
Recipient: N/A
Subject: marketing
target market
Target/ethnic (targeting ethnic markets)
Target/Young Adults (Target Groups)
Region: United States
Type: MRRT, MARKET RESEARCH REPORT
CHAR, CHART, GRAPH, TABLE, MAPS
Litigation: Stmn/Produced
Named Organization: Amer, American Tobacco
Bw, Brown & Williamson
Lig, Liggett
Lor, Lorillard
Msa
Nielsen
RJR, R.J.Reynolds
PM, Philip Morris
Named Person: Adkins, C.
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Anne Landman
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afoxland@starband.net
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