PM PM Product Definition Marlboro is

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Product Definition • Marlboro is a brand of cigarettes made by Philip Morris USA and by Philip Morris International outside the US. It is famous for its billboard advertisements and magazine ads of the Marlboro Man. • The brand is named after Great Marlborough Street, the location of its original London Factory. • Philip Morris, a London-based cigarette manufacturer, created a New York subsidiary in 1902 to sell several of its cigarette brands, including Marlboro. PM PM

Market Segmentation Psychographic Segmentation • Lifestyles Marlboro man "Come to Marlboro Country“ Cowboy image • Personality Marlboro man "Come to where the flavor is“ For adults who like flavor Hard working Of age PM PM

Market Segmentation Income Segmentation • Geared towards the blue collared, lower to lower middle class hard working group of people. • Because of different factors determining why people smoke, income segmentation is a little harder to pinpoint. You see middle school aged people smoking as well as movie stars. PM PM

Market Segmentation Income Segmentation • The availability of cigarettes is very high. They are on display in every gas station and convenience store, places everyone needs to use. • Segmentation in grocery stores is somewhat visible. A Pick N’ Save will have a display case in the front of the store or at the customer service cashier while a Sendik’s will have them stored away off to the side. You will see this more as the targeted markets start to go to higher income levels. PM PM

Market Segmentation Occasional Segmentation • Social Smokers – A night out – Conversation tool • Habit Smokers – Preparing for stressful final exams – After a long day a work – Reward after big achievement • Mental/Physical Needs Smoker – Maintain weight – Taking a break from the day – When you want to do something just for you PM PM

Market Segmentation Occasional Needs • Most basic need: Nicotine – About 44. 5 million adult Americans smoke cigarettes • Fulfill habits – While drinking – Driving – First waking up in the morning • Calm nerves • Weight loss – Nicotine is a natural diuretic – Damages taste buds PM PM

Market Segmentation Behavior Segmentation Loyalty • Phillip Morris conducts programs that exchange product codes for merchandise or coupons. • As of 1998, no merchandise could feature the Marlboro logo • Direct-mail deals and adverts available for interested customers 21 and older. • Legal ID must be presented to prove age. PM PM

Market Segmentation Behavior Segmentation Usage • ‘Healthier’ cigarettes – Marlboro Gold (light) – Marlboro Silver (ultra light) – Marlboro Filter & Filter Plus • Classic cigarettes – Marlboro Red • Compromise – Marlboro MX 4 Flavor PM PM

Market Segmentation Demographic Segmentation 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% - smoke, as well PM PM

Competitors Marlboro Reynolds America Loews Corporation Ligget Vector Brand • 20 of the top selling brands in the US • Smokeless tobacco • One of America’s oldest tobacco manufacturers • Cigarettes • Diversified in other business sectors • Founded in 1873 • Cigarette manufacturer • Major player in international tobacco market PM • 10 of US top selling brands • Second largest cigarette manufacturer in US • Roll your own and pipe tobacco • Major player in international tobacco market • Sales limited to the US • Committed to improving brand integrity through marketing • Long term sales growth goals • Leading cigarette manufacturer in US • Trusted for reliable product line and quality • Offer line of nonaddictive cigarettes to reduce some responsibility for illness • Very diversified line of tobacco products • Do not rely solely on cigarette sales for revenue • Very diversified • Manufacturing located in heart of tobaccogrowing country • Made up of top researchers and a highly experienced tobacco management team PM

PM Target Market • Anyone of legal age to smoke. Country Smoking Age Austria Italy Kuwait Purchase Age 16 None 16 21 Israel Japan PM None 20

Target Market • Marlboro is sponsoring Team Penske in the Indy. Car Series • Indy 500 viewers – 20% more likely to have attended College than the average American. – 61% are 18 -45 years old and have an annual household income of $50, 000 or more. – The usual IRL fan watches less TV than the average consumer. – More than half of all IRL fans consciously choose a sponsor's brand because of it's association with the Indy Racing League. PM PM

Marlboro’s Competitive Advantage PM • Most popular brand in the Phillip Morris line of tobacco products. • Presents a brand that will never disappear from the tobacco market, as it is so highly known and chosen by customers. • Everyone knows the Marlboro Man, the rugged cowboy figure that has been promoting the company through their Marlboro Country campaign • Wide range of products that cater to every kind of smoker. • Offers competitive pricing with other popular cigarette brands. PM

Positioning Statement PM • To hard working young adults who lead a high energy lifestyle and have a strong sense of freedom, Marlboro is a quality, top of the line tobacco product that gives you a smooth, pleasurable and satisfying experience. PM

Sources • • • PM http: //www. philipmorrisusa. com/en/cms/Products/Cigarettes/Marketing_Sales/default. aspx? src=t op_nav http: //tutor 2 u. net/business/marketing/segmentation_bases_introduction. asp http: //pushpull. files. wordpress. com/2006/10/marlboro-man. jpg http: //www. quitsmokinghub. com/smoking_statistics. shtml http: //en. wikipedia. org/wiki/Marlboro_(cigarette) PM