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Marlboros Global Brand Strategy
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Transcript of Marlboros Global Brand Strategy
Marlboro
INTERNATIONAL MARKETING
MarlboroGlobal Marketing Strategy
Surgeon General‘s Warning: Smoking kills.
20 CLASS A CIGARETTES
Purpose of this presentation:
To provide a deeper understanding of Philip Morris‘ strategic efforts behind building Marlboro into a strategic efforts behind building Marlboro into a successful global brand by highlighting key strategicdecisions from the past as well as characteristics ofthe current global brand strategy.
AGENDA 1. Introduction2. Short Brand History3. Marlboro Goes Global4. Current Brand Strategy5. Global Marketing Mix5. Global Marketing Mix
ProductPromotionPricePlace
6. Conclusions
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
INTRODUCTION
� 18th „Most Valuable Brand in the World“
(Interbrand ranking 2011, net value: 20 bill. $)
� most recognized and appealling brand image of the� 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
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
SHORT BRAND HISTORY
Marlboro in the 1920s and 1950s
SHORT BRAND HISTORY
Marlboro after the 1950s
SHORT BRAND HISTORY
� next decades global expansion and positioning as a
global brand� reasons
� by 1972 no. 1 tobacco brand in the world� 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.
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 Overseasoutside 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
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 � 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
MARLBORO GOES GLOBAL
Several decisive success factors:
� PMI‘s position as a strong U.S. corporation
� increased global popularity of Western movies� 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“
CURRENT GLOBAL STRATEGY
Specific tobacco industry characteristics:
� high homogeneity of products, differentiation only
through branding and marketingthrough branding and marketing
� high concentration with 5 major players: PMI, BAT, JTI,
IT, RJ Reynolds
� many restrictions and regulations, public awareness
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
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
CURRENT GLOBAL STRATEGY
� Marlboro has a tradition of being the
industry’s innovator
� examples: the flip-top box, cork looking � 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
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
NEW BRAND ARCHITECTURE
Flavor Line
Gold Line
Fresh Line
Brand Architecture
� packaging upgrades (Marlboro Red Filter
Product Innovations
� Filter Plus Technology
MARKETING MIX: PRODUCT
Plus Slide Pack) and many line extensions for individual markets
� quality improvements
� appealling and sophisticated design –promotional function of packaging
� Marlboro Intense (shorter, rich-flavored cigarette)
� new menthol products (Crisp, Fresh and Ice Mint, mainly for the Asian market) and kretek or clover cigarettes
� predominantly standardized with some local
adaptations, strict ethical code
� shift from traditional channels to alternative ones
MARKETING MIX: PROMOTION
� 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
� “switch-selling” and “buy one, get one for free”
activities performed by local sales force
� online promition: discounts, coupons, birthday
MARKETING MIX: PROMOTION
� 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
� highly adapted , due to different taxation, income levels and
competitive situations, positioned as a premium brand in the
upper price segments across all markets
MARKETING MIX: PRICE
� 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)
� highly adapted to local conditions , due to differently restricted
access to distribution channels across markets
� example: U.S. – supermarkets, convenience stores, gas stations,
MARKETING MIX: PLACEMENT
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
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� 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
CONCLUSIONS
� rapidly changing tobacco industry environment
� many future challenges like: increased taxes on cigarette sales,
introduction of plain packaging, ban on various ingredients, 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
THANK YOU FOR YOUR ATTENTION!
SOURCES AVAILABLE ON REQUEST.