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MARLBORO Consumer Behavior Final Report

Submitted To: Miss Farheen Zehra

Submitted By: Syed Ahsan Ali Shah

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Marlboro Cigarettes Marlboro is the most world-wide known cigarette brand made by Altria Group, Inc. previously named Philip Morris Companies Inc... Philip Morris Companies Inc. changed its name to Altria Group, Inc. on January 27, 2003. Originally Marlboro was exposed in 1847 at the London market but soon repositioned in the US. The greatest tobacco products' brand is named after Great Marlborough Street where its original London factory was situated. When the Cigarette brand first emerged on the market in 1920, they were marketed to women. The ads featured women and held the slogan "Mild as May." One of the traits of Marlboro cigarettes at that period was a red tip, which concealed women's lipstick marks. This approach was successful until World War II (1939-45), when slow sales caused Marlboro packs to be withdrawn from the market. The cigarettes were revived in the 1950s, as the first medical research linking cigarette smoking with cancer began to reach the public. It was thought that Marlboro cigarettes, with their filter, might offer smokers the illusion of a reduced health risk. However, the filter was regarded as effeminate by many men, who made up the bulk of the market. In 1954, the Leo Burnett Company, a Chicago advertising agency, was given the task of making Marlboro cigarettes appealing to men. The result was the "tattooed man" campaign. It involved a series of print ads showing a man with a tattoo on his hand holding a Marlboro. The man would be one of several "manly" types, such as a policeman, a firefighter, a construction worker or a cowboy. The agency studied consumer response, and the cowboy figure proved to be the most popular. By 1957, the cowboy had replaced all of the others. In 1960 Philip Morris and Thomas Hutzler invented "Marlboro Country" with American Western landscapes and a rugged cowboy. The Marlboro Man has displayed the distinctive red Marlboro cigarette pack for almost fifty years - on billboards, in store window displays, and on the pages of magazines and newspapers. The Marlboro Man could also be seen on television, usually accompanied by the rousing musical theme from the Western film "The Magnificent Seven", until the government ban on cigarette commercials in 1972. The Marlboro Man in the "Marlboro Country" series of advertisements was instrumental in establishing Philip Morris' Marlboro brand as the world's best-selling cigarette. There were dozens of men, many of whom were real cowboys who modeled for the Marlboro advertising campaign and two of those men, both long-time smokers have died of cancers which began in their lungs. Wayne McLaren, a former professional rodeo rider, who appeared in small parts in various television series and movies (primarily Westerns) throughout the 1960s and 1970s and posed for some promotional photographs on behalf of Marlboro in 1976, succumbed to lung cancer in July 1992. David McLean, who appeared in many Marlboro television and print advertisements starting in the early 1960s, also died of cancer in October 1995.

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McLean starred in the short-lived 1960 television Western Tate, and he played roles in numerous television series and feature films during the 1960s and 1970s. Marlboro Cigarettes are often called in slang as "cowboy killers" through the strength of the red variety of Marlboro cigarettes and owing to Marlboro Man. In August 2006 a US District Court prohibited to use the terms like "low tar", "light", "mild" or "natural" and it is expected to use standard "color" names instead: Marlboro Red, Marlboro Gold(Light), and Marlboro Silver(Ultra Light), which are already in use in the European Union since 2005. Marlboro has the most ancient tradition and history among tobacco products. You can trace that history and have a look at it by viewing the packs of the Marlboro brand listed below: Marlboro Naming Scheme in Transition In mid-August of 2006, a federal district court ruled that the names 'Light', 'Ultralight', 'Natural', or 'Mild' could not be used. The judge said that these names were misleading to smokers in the sense that they conveyed some positive health effect. The ruling further stipulated that names changes must occur at the beginning of 2007. Tentatively, Philip Morris has decided to use a color naming scheme for their products that previously used the banned words in the name of their product. Given that, they have decided that Marlboro Lights would be called Marlboro Golds and that Marlboro Ultralights would be named Marlboro Silvers. We understand that these changes will also affect the Marlboro family of cigarettes sold in our popular. Sponsorships Marlboro is also known for its sponsorship of motor racing. This started in 1972 with its sponsorship of Formula One teams BRM and Iso Marlboro-Ford. The former took one win at the very wet Monaco Grand Prix. For 1974 Marlboro dissolved its sponsorship of both teams and became famously associated with the McLaren team, which bought it its first constructors' championship and its driver’s title for Emerson Fittipaldi. The team was successful through to 1978, with another world champion in James Hunt in 1976. Following that the partnership went through a dry patch until Ron Dennis's Project Four Organisation took over the team in 1981. Marlboro-sponsored McLarens dominated F1 for much of the 1980s and early 1990s, with Niki Lauda, Alain Prost and Ayrton Senna between them winning the drivers' championship all but one year from 1984 to 1991. After the departure of Ayrton

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Senna in 1993, Marlboro McLaren did not win a race for three years. Marlboro ended their sponsorship of the team in 1996, which ended the famous red and white McLaren livery. Marlboro also sponsored Scuderia Ferrari as secondary sponsor from the mid 1980s as a result of company president Enzo Ferrari, who refused to allow "outside" sponsor brands to appear on his team cars. After his death in 1988, Marlboro began to take over as the primary sponsor, which they would be later officially branded as Scuderia Ferrari Marlboro. In September 2005, Ferrari signed an extension of their sponsorship arrangement with Marlboro until 2011. This comes at a time when tobacco sponsorship has become wholly illegal in the European Union (including F1 races) and other major teams have withdrawn from relationships with tobacco companies, for example McLaren ended their eight year relationship with West, Renault broke with JT and BAT withdrew in 2006. In reporting the deal, F1 Racing magazine judged it to be a "black day" for the sport, putting non-tobacco funded teams at a disadvantage and discouraging other brands from entering a sport still associated with tobacco. The magazine estimates that in the period between 2005 and 2011 Ferrari will receive $1 billion from the agreement. Depending on the venue of races (and the particular national laws) the Marlboro branding will be largely subliminal in most countries. In April 2008, Marlboro displayed explicit on-car branding on Ferrari for the last time, now permanently replaced with a variety of barcodes in place of it. Marlboro also sponsored the Alfa Romeo Formula One team between 1980 and 1983, although unable to match up to its pre-war and 1950s heyday, the team only achieving one pole position, one fastest lap and four podium finishes. Tobacco use in Pakistan Tobacco use in Pakistan is common and one of the highest in the South East Asian Region. There are about 22 million smokers in the country and 55% of the households have at least one individual who smokes tobacco. As a result Pakistan accounts for a sizeable proportion of the cigarettes consumed in South Asia. In Pakistan about 100,000 people die annually from diseases caused by use of tobacco.

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Figure 1: Percentage of Total Cigarette Consumption in SA Region, 1999

Tobacco consumption does not only occur in the form of cigarettes but also includes beedis (hand rolled cigarettes), Huqqa/Sheesha (water pipe) and chewing tobacco. According to the National Health Survey of Pakistan 1998, 54% men and 20% women used tobacco in one form or the other. WHO-EMRO (Eastern Mediterranean Regional Office) website quoting the National Health Survey states that 36 % of adult men and 9 percent of adult women smoke in Pakistan. Global Youth Tobacco Survey (GYTS) supported by WHO and conducted in Pakistan focused on adolescents aged 13-15 years. GYTS reported 1.7% of the students (2.5% boys and 0.5% girls) having smoked cigarettes in the month prior to the survey.

Segmentation: Geographic Region- Worldwide Demographic Age – In the age group of 25-64, 24.5% of the population has at some time consumed some form of tobacco (of which cigarettes is roughly one-sixth). Changing demographics indicate an increasingly young consuming class with nearly 60% of the population in the age group 15-59.

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Gender – Approximately 12.8% of the male population and 1.1% of the female population in urban metros have consumed some form of cigarettes. Thus, the male population is the primary target for the cigarette industry. Income - Upper-middle income households consume the highest cigarettes. While consumption declines in higher income group in urban areas, increasing consumption trend is observed in rural higher-income households. Poor households in rural areas are the lowest cigarette consumers. Region - Urban low and lower-middle income households consume more cigarettes compared to the similar income groups in rural areas. Education - Unlike in developed countries, in Pakistan, as the education increases, urban and rural households with a higher education smoke more cigarettes compared to lower educated households. Psychographic Lifestyles - Health conscious and adventurous people, western, freedom & personal choice people Behavioral Benefits - Healthy, for freedom & personal choice Social-cultural There is a growing public concern regarding increasing consumption of tobacco, its health implications and the need to prevent access to minors and non-users. With a view to achieving improvement of public health in general, the Government has banned the advertising of cigarettes in the country, sale of cigarettes to any citizen below the age of 18 etc. All such restrictions by the government have made the promotion of cigarettes almost impossible. It is mostly by word of mouth that the sales of cigarettes have raised. Target audience Before 1950: Targeted at women Adventurous

After 1950: Men (To young Adult) Adventurous Health conscious people

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Maslow’s Hierarchy of needs (Figure 2)

Perceptual Map (Figure 3)

Marlboro

Marlboro

High

High

Low

Low

Health

Marlboro

Taste

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Personality

Innovativeness: High Dogmatism: Low Social character: Inner directed Need for uniqueness: High Optimal stimulation level: High Sensation seeking: Medium Variety-novelty seeking: Medium

How Philip Morris built Marlboro into a global brand for young adults: International tobacco promotion and marketing acts as both a lens for viewing the effects of globalization as well as a vector for its progression. As global communication through television, internet, and other mass media affects the lifestyle of consumers worldwide, tobacco companies track and respond to shifts in the needs, wants, and lifestyles of their targets. Simultaneously, the tobacco industry contributes to the development of a global consciousness through aggressive marketing campaigns connecting its brand images to common values and lifestyles. Prior studies describe the emergence of new markets for tobacco products and the exportation of successful marketing strategies from developed countries to the developing world. However, much of the research to date has been region specific, highlighting the marketing efforts and strategies in specific countries such as Sri Lanka, China, Hungary, Myanmar, or Indonesia. While some international cigarette brands are concentrated in certain regions (such as State Express 555 in Asia), others such as Marlboro and Camel, are recognized all over the world, particularly among the young. Basic marketing theory states that global companies must decide how best to adapt their promotional efforts to the local regions in which they sell. Some global companies adopt a standardized approach to promotions, using the same basic advertisements and promotional strategies across markets. An opposing strategy is to develop adapted promotions, where companies develop ads and promotional strategies to meet conditions particular to local markets. Standardized promotional efforts are usually lower in cost and relatively easier to manage than adapted promotions, which require increased management but may result in more effective communications efforts. The decision to adopt a standardized or adapted approach affects how companies manage their brands in different parts of the world. Companies with a standardized promotional approach will strive for customers to perceive a similar brand image across

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markets while those adopting an adaptive approach may allow customers to perceive differing images for the same brand with the goal of establishing the highest equity for that brand in each local market. The emergence of market economies throughout Eastern Europe and the Far East in the 1990s provided a new opportunity for tobacco companies to expand their global reach. Philip Morris International is the world’s leading tobacco company outside of the USA; its brands include Marlboro, the world’s best selling international cigarette brand. Young adults are a key target market for tobacco companies, and they are a key target for Marlboro both in the USA and internationally.18 We examined Philip Morris’s global market research efforts and worldwide advertising and promotion strategies targeting young adults (age 18–30 years) developed during the 1990s to determine whether Philip Morris used an adaptive or standardized global promotional strategy. Brand terminology Brand equity The price differential between a pack of Marlboro versus Parliament versus general cigarettes, all manufactured by Philip Morris, results from differences in brand equity between the brands Brand image Consumers associate Ben & Jerry’s ice cream with ethics and environmentalism, Mercedes automobiles with luxury, and Marlboro cigarettes with masculinity and cowboys Brand identity While consumers may currently associate McDonald’s with unhealthy fast foods, McDonald’s brand managers are currently promoting a new identity that highlights healthy options such as salads and bottled water. McDonald’s brand identity is built through a system of commercials, logos, characters (Ronald…), ‘‘Mc’’ named menu items, etc Brand positioning Kool cigarettes are positioned as the strongest menthol cigarette or Apple computers are positioned as more user friendly than PCs Lifestyle research The typical goal of lifestyle research is to gain an understanding of the needs, values, and beliefs of target consumers. A report prepared by market research firm Research International for Philip Morris summarized, ‘‘The crucial need is to identify how

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Marlboro ‘fits’ in the minds of Young Adult Smokers, by evaluating its positioning and appeal to the lifestyle, aspirations and needs of young smokers’’. Similarly, another report prepared for Philip Morris by Kelly Weedon Shute Advertising explained:

“The objective is to get behind the consumer’s thinking on a wide range of subjects—clothes…drinks…cigarettes… sources of information…hierarchy of key influences… ’Self-images’… The intention is to isolate the specific influences and concerns of our key consumer groups identifying—their priorities…needs….fears…desires/likes…action seeking”

In 1989, advertising agency Leo Burnett conducted market research for Philip Morris designed ‘‘to provide insights into the 18 to 25 year old smoker target around the world…to get to know target as ‘people’; to identify what/who is popular; to understand similarities/differences. Philip Morris used this lifestyle research to chart value systems for young adult smokers all over the world. For example, a report written for Philip Morris by Research International contains a pie chart of the young adult male smoker (YAMS) value system (Figure 4), and also contains a table of YAMS responses to sponsorship activities. It also contains an analysis of value trends. ‘‘Value trends that appear to be developing are: retention of some traditional values related to family…weakening of chauvinistic and conservative values towards women…extension of individual identity into more individualistic concerns…continued development of more materialistic values…’’. These value systems allowed Philip Morris to identify common values held by young adults across different markets.

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Figure 4: An example of a value system pie chart displaying values of young adult male smokers. This system provided a framework in which to analyse brand image and communications research.

Brand research Philip Morris also sought to understand Marlboro’s brand image in different markets. For example, the objectives for a Marlboro Image Dynamics Study conducted for Philip Morris included, ‘‘How smokers perceive Marlboro in relation to the competition, what they see to be the key components of the Marlboro image, to what extent these image components correspond to the values of Europe’s young generation…’’. The inquiry was not limited to Marlboro; as part of the study, researchers handed images of stick figures to respondents and asked them ‘‘to dress it and equip it with all the accessories it needs to be ‘in,’’’ recording the appropriate brand for the figure’s jeans, jacket, shirt, watch, drink, and cigarettes (Figure 5). The researcher asked respondents to select the brand from their drawing that they identify with the most, and asked, ‘‘what words would you use to characterize this brand?’’. They repeated the question for a set of ‘‘international

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success brands’’ including Benetton, Swatch, Levi’s, Coca-Cola, Pepsi and Nike, and for other cigarette brands including Camel, West, Lucky Strike, Gauloises Blondes, and Chesterfield. One strategy Philip Morris used to analyze complex images was the development of brand image frameworks. Brand image frameworks compartmentalize the various associations consumers make with particular brands and enable tobacco marketers to highlight and exploit key differences between brands. In their study of young adult male smokers (‘‘YAMS’’) in Hong Kong, Research International created a framework of image associations for each of the examined brands, consisting of the brand’s core image, the brand’s user personality, associated brand communication imagery, and a set of rational assets (product strengths) associated with the brand. The frameworks allowed for the comparison of brand features between competitors and other international brands. Figure 5: Image used in Philip Morris’ Marlboro Image Dynamics Study. Researchers asked respondents ‘‘to dress it and equip it with all the accessories it needs to be ‘in,’’’ recording the appropriate brand for the figure’s jeans, jacket, shirt, watch, drink, and cigarettes.

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Advertising communications research Philip Morris’ Image Dynamics Study also contained an extensive focus on advertising and communication efforts. For each area of communications research, researchers first asked for spontaneous recall of any ads or promotional efforts, and then probed respondents with a show board of advertising images and specific questions regarding the advertising and promotional campaigns of Philip Morris, its competitors, and international brands from other industries.

What does he find particularly fascinating/interesting/appealing about this advertising? What aspects of the ad does he like? What atmospheres, moods, emotions, etc, does it express? What sort of world is shown in this advertising? How are people portrayed? Is this realistic? Does it match the respondent’s lifestyle/aspirations? How is it relevant to the respondent? Why/why not? What immediately comes to mind when the respondent thinks about Marlboro advertising? His impressions about advertising – does it appeal? What images does Marlboro advertising portray/reinforce of Marlboro? What sort of person does the advertising appeal to?

A Korean study on young adult male smokers contained a section evaluating the effectiveness of movie stars in complementing Marlboro’s image. They conclude that the Marlboro ‘‘image has been reinforced by a number of communications activities such as brand sponsorship but also because of the appeal of Chinese movie stars, who’s cool/ tough image complements Marlboro’s traditional image in modern context (to some MR [Marlboro Red] smokers)’’. Figure 6: Examples of maps containing images and assets associated with Marlboro Red and Salem Lights developed for Philip Morris.

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Figure 7: An example of a pie chart of consumer values for young adult smokers in Hong Kong and the corresponding image associations for Marlboro Red. This graphical representation highlights the Marlboro brand strengths and weaknesses in relation to the consumer values described in its lifestyle research.

Young adults provided the best opportunity for a standardized approach The findings of converging lifestyles, attitudes, and values among young adults led to the development of standardized global marketing campaigns. For example, in a 1989 report for Philip Morris, Leo Burnett describes the emergence of a global generation of young adults:

Today, young adults [are] single most homogeneous group in history…our findings support existence of a ‘global’ community…target simultaneously exposed to same stimuli around the world…Today’s media/marketing environment enables target to share common experiences, buy common products—creating a global community. Beyond these external influences, there are similarities on a more personal level…marked by three key developmental tasks: 1) establishing own identity/separating from parents, 2) developing close relationships outside family, 3) preparing for financial independence.

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Philip Morris identified the universal values and interests that played a role in the development of strategic marketing plans for young adults. For example, in a 1993 report, the Marlboro Worldwide Creative Review Committee outlined guidelines for international advertising. The report specifically highlighted the similarities between European and American young adult male smokers:

Findings from both continents were surprisingly similar. Young adult smokers of today have adopted a value system that differs from a decade prior while retaining some age group characteristics common from generation to generation. Specifically, today’s young adult smokers have rejected the materialism of the 80s and reinterpreted/broad lined the concept of masculinity. Yet, independence and freedom is the common emotional thread which links today’s young adults to previous generations.

In addition to increasingly similar values among young adults worldwide, Philip Morris’s research highlights the trend of increasingly ‘‘western’’ values among young adults in Asia. Standardizing Marlboro promotions In the early 1990s Philip Morris pursued a globally synchronized marketing campaign to develop a global Marlboro brand identity. Philip Morris standardized worldwide promotional efforts and Marlboro’s core brand identity, while retaining some of the strengths of an adaptive local strategy in their copy design for specific advertisements. Philip Morris CEO Geoffrey Bible called a worldwide Marlboro meeting in 1992 to discuss plans for worldwide standardization of brand identity and advertising efforts. The result of the meeting with members from Philip Morris USA and International resulted in a focus on the ‘‘similarities between PMUSA and PMI business issues and the young adult male smoker’s likes and dislikes’’. The meeting marked the establishment of the Marlboro Worldwide Creative Review Committee (MWCRC), a group charged with the development and regulation of all international marketing messages.

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DISCUSSION This analysis outlines how Philip Morris built Marlboro into a global brand. Market research provided the backbone for Philip Morris’s global strategic marketing plans. This market research falls into three basic categories: research into lifestyles and attitudes, research about brand image and equity, and research on the effectiveness of specific communications messages. These strategies have been carried out for many years in the USA, Canada, and the UK. These research efforts focused on young adults as a priority target for both research and marketing efforts, and increased standardization of promotional strategies between global markets. The commonality Philip Morris found in the emerging core values of young adults led to globally standardized branding efforts and standardized advertising messages for Marlboro. These efforts are particularly evident in worldwide sponsorship efforts that appeal to young people, such as those documented in the Formula One circuit. While striving for a global brand identity, Philip Morris used specific advertising communications research to tailor executions to specific regions or markets. An understanding of these global promotion strategies provides opportunities to develop more relevant tobacco control policies and more effective counter-marketing messages. These strategies suggest the global tobacco control community should: (1) increase utilization of market research techniques to plan tobacco control interventions; (2) focus on young adults and their common values; (3) focus on brand image, to create a global anti-tobacco brand identity and to undermine tobacco brand images; (4) promote global standardization of successful tobacco control strategies from different parts of the world. As the most popular and largest selling tobacco brand in the world, Marlboro is an example of an effective system of market research and strategic planning that can be used to inform tobacco policy and counter-marketing efforts. Young adults provide the best opportunity for globally standardized tobacco control messages. Young adults around the world identify with their American peers and vice versa. The Marlboro brand and smoking in general has been promoted as western or American, even while tobacco use is on the decline in America. This irony should not be lost on the international public health community, and can be used to counter tobacco advertising pairing cigarette brands with western images of success. Researchers in Australia recently showed that youth in the USA, Britain, and Australia appraise anti-smoking messages and ads similarly. This suggests that counter-marketing messages that resonate with young adults in one community may hold promise as global anti-tobacco messages for young adults.

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References

1. http://www.wikipedia.com 2. http://www.godfreyphillips.com/brands.html 3. Phillip Morris USA. Online at www.pmusa.com 4. Phillip Morris international online at www.phillipmorrisinternational.com 5. Marlboro Advertising Oral History 1926-1986: By Stacy Flaherty & Mimi Minnick

November 2000 Available online at www.americanhistory.si.edu 6. Philip Morris Asia Inc. Hong Kong Yams Study 930000 a Study of Values,

Lifestyles, and Brand Images among Hong Kong Young Adult Male Smokers. Jan 1994. Bates No. 2504053220/3299. http://legacy.library.ucsf.edu/ tid/ezw32e00

7. N Hafez, P M Ling, How Philip Morris built Marlboro into a global brand for young adults: implications for international tobacco control, Research Paper