Скачать презентацию Philip Morris Inc Philip Morris Inc History
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Philip Morris Inc.
Philip Morris Inc. History - Named after Great Marlborough Street, the location of its original London factory. - By 1924, advertised as a woman’s cigarette. - launched its filtered end in 1955 - In the 1960’s, “Marlboro Country” was created. - By 2001 -2002, 52% of high school students smoked Marlboros as opposed to any other brand.
Philip Morris Inc. Mission Statement & Objectives Mission Statement An operating company of Altria Group, PM USA is guided by Altria Group's mission to own and develop financially disciplined businesses that are leaders in responsibly providing adult tobacco consumers with superior branded products. Organization Objective 1. Investment in Leadership 2. Align with Society 3. Satisfy Adult Consumers 4. Create Substantial Value for Shareholders
Philip Morris Inc. - Growth Company Information Tobacco is one of the 6 most important crops grown by American farmers. It is grown in a transparent-roofed shelter that is low to the ground and then transplanted into a field until it matures. - Preparation for sale Tobacco is usually cultivated annually, then cured in a kiln house and aged. After this process, the tobacco leaves are separated into different quality grades. - Shipment Until the 1960’s, the United states was the world’s leading manufacturer and exporter of tobacco products. - Advertisement There are over 40 million pages of internal documents available to the public revealing the thoughts and processes that go into campaigns. - Distribution Stores, bars, and promotional workers that solicit people in various settings for free cigarettes.
Philip Morris Inc. Product Information • Marlboro is a brand of cigarettes made by Phillip Morris USA – Phillip Morris is the leading tobacco manufacturer in the US specializing in the production and marketing of cigarettes and smokeless tobacco products • Two forms of tobacco products – Smokeless – Cigarettes • Competition – Reynolds American Inc – Brown & Williamson Tobacco Corporation – Lorillard, Inc
Philip Morris Inc. Major Competitors Continued Reynolds American (RJR) – sold about 28% of all cigarettes sold in U. S. in 2006 Markets several tobacco products over a few different companies, including: Cigarettes – Camel, Pall Mall, Kool, Winston, Salem, Doral, Misty, Capri, and Natural American Spirit brands Moist snuff – Grizzly and Kodiak Little cigars – Winchester and Captain Black Pipe tobacco/roll your own – Bugler and Kite Lorillard – 18 th oldest company in U. S. and oldest tobacco company Cigarettes – Newport, Maverick, Old Gold, Kent, True, Satin, and Max
Philip Morris Inc. Rising unemployment Economics - Promotes a change in consumer spending - Decrease in sales makes it hard for Marlboro to cover operating expenses and make a profit Subject to largest federal tax increases - Creates changes in income - Increase during recession gives more incentive to quit - 57% of smokers in US are skilled laborer as well as the most likely consumer to feel the effects of an economic downturn
Philip Morris Inc. Political Factors Federal Cigarette Excise Tax (FET) went up to $1. 01 per pack Wisconsin Taxes have Increased
Philip Morris Inc. Political Factors Wisconsin Revenue from Cigarettes • • Excise Tax Collected (2008): $460, 367, 717 Master Settlement Agreement (MSA Payments 2008): $149, 200, 000 Cigarette Sales Tax Revenue (2008): $99, 154, 504. 90 Total Revenue Collected (2008): $708, 722, 221. 90 Negative Political Factors • • • Retail sales bans Smoking restrictions Cigarette Butt Litter : Keep America Beautiful(KAB)
Philip Morris Inc. Natural Environment • Materials – Raw materials are taxed by the exporting country and by the US once they arrive. – High gas prices make importing materials and exporting the finished product more expensive. • Pollution and Energy Use – Phillip Morris has worked to decrease the environmental impacts of production to help improve their image.
Philip Morris Inc. Natural Environment – From 2004 to 2008, Phillip Morris has decreased: • Water consumption in manufacturing by 30%. • Energy use by 9. 7%. • CO₂ emissions by 15. 1%.
Philip Morris Inc. Technological Environment • • • The largest arguments against cigarettes are related to health and safety concerns. Research focuses on reducing health risks. – Funding is given to external research facilities, including the Duke Center for Nicotine and Smoking Cessation Research. A self-extinguishing paper was developed to help prevent smoking-related fires.
Philip Morris Inc. Cultural Environment • Tobacco use is the leading cause of preventable deaths in the US – Kills 1 in 5 Americans each year – Large law suits are filed against major tobacco manufacturers for misrepresenting side effects of smoking • Cultural shift toward healthy lifestyle – Less likely to spend money on tobacco when living a healthy, active lifestyle – An increase in regulation has forced Phillip Morris to be more proactive in marketing the health side effects of smoking • Makes it difficult for the company to properly promote the product • Constant reminder to the consumer about effects of smoking and their health
Philip Morris Inc. Demographics Smoking statistics in the United States indicate that 26 million men (25. 7%) and about 23 million women (21%) smoke cigarettes. Smoking statistics for those people 18 years of age and older in the U. S. suggest these smoker estimates for the following ethnic groups: - Caucasians - 26% of all Caucasian men smoke while 22% of all Caucasian women smoke - Black or African Americans - 29% of all Black men smoke while 21% of Black women smoke - Hispanics - 24% of all Hispanic men smoke while 12% of all Hispanic women smoke - Asian and Pacific Islanders - 24% of all Asians smoke while 7% of all Asian women smoke - American Indians and Alaska Natives - 41% of all American Indians/Alaska native men smoke while the same percentage of women - 41%
Philip Morris Inc. Demographics Smoking Age Statistics - from 1988 to 1996 showed that first time use increased 30% for those aged 12 -17 years and first daily use increased 50%. Age Trends - black adolescents are less likely than white adolescents to smoke (2, 3); however, black adults are more likely than white adults to begin smoking after adolescence Target Market Movement - is a Minnesota Youth Tobacco Prevention Initiative which has cause smoking to drop by 25 percent among 12 -17 year olds in 2002.
Philip Morris Inc. Micro & Macro Environments Micro • • Lawsuits against Marlboro Corporate responsibility Macro • • • Rising unemployment Increase in federal tax Increase in government regulation
Philip Morris Inc. Market Environment Analysis Key Negative Issues Political – Government imposing high taxes and anti -tobacco campaigns Health - Cigarette smoking causes lung cancer, heart disease, emphysema and other serious diseases in smokers. Culture - health concerns and anti smoking movements have changed the cultural view of smoking. Smoking is bad and there is no safe cigarette. Positive Changes Environmental - Philip Morris has reduced water consumption, reduced pollution, and created a selfextinguishing paper
Philip Morris Inc. Sources “CDC”. 21 Sept. 2009. 22 Sept. 2009 http: //www. cdc. gov/mmwr/preview/mmwrhtml/00015531. htm “Tobacco Industry. ” Wikipedia. 21 Sept. 2009. 22 Sept. 2009