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Philip Morris International

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mehmet günak

on 4 January 2013

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Transcript of Philip Morris International

Market Parameters General Information about Tobacco Industry

Information about Philip Morris International

Consumer research on PMI

SWOT Analysis

Conclusion & Recommendation Philip Morris International General Tobacco Market Strategies Tobacco Industry use demographic, behavioral and psychographic segmentation strategies.

Demographic: Gender, age, race and ethnicity

Distributional Channels

Price Strategies

Communication Tools and Strategies Tobacco industry has $ 721 billion sales value
Yearly market growth rate 4.5 %
13 big and important tobacco company
$ 681 billion market revenue
Philip Morris, British American Tobacco, Japan Tobacco International, Altria International, Imperial Tobacco
Turkey sales value 18.3 TL billion

In convenience stores, gas station, discount stores, restaurants, night clubs, bars, supermarkets, tobacco shops, airports etc…

Transporting products to retailers

Aggressive promotional strategies

Individual Brand Popularity

Marlboro has own stand and ''Marlboro Girls''

Differentiated Price Strategy for each brand

Product line pricing

Marlboro Long / Short 8 TL, Parliament 8.25 TL, L&M 5.5 TL, Muratti 6.5 TL

Price adjustment strategies, geopraphical pricing such as Malrboro in K.K.T.C & Turkey.

İmportant point: reducing price depending on region , Senegal, ignore human health

Targeting youth classified as ‘starters’ ‘ new smokers’ imposing a sense of independence and identity development

Targeting women with Marlboro red one & Parliament supper slim types of cigarettes

Different positioning strategies, target women with ‘Mild as May’ in the early years& youth with the idea of independence, self-confident, strong

Target women and youth, idea that not just for men
Differentiated marketing, several market segments
Geographic segmentation, four region; European Union, The Eastern Europe Middle East & Africa, The Asian, The Latin America & Canada
Demographic segmentation;
Income segment, diverse price strategies,
Sold in approximately 180 countries & 7 of brands are in the top 15
London’s Street in 1847
Logo in 1919, ‘Veni Vidi Vici’
Produce in Virginia factories &part of American cultue by the mid 1950’s
Since 1972,Marlboro is the 1,Parliament is the 14. in the world.
By the time 2008, the fourth largest global packaged goods company
In 1984, Turkish Market with Marlboro, Parliament, L&M, Muratti,Lark
Signed agreement with Sabancı Holding in 1991, begun to produce in Torbalı / İzmir.
Cigarettes, cigars, cigarillos etc…
39 different cigarettes brands, In Turkey, Marlboro, Parliament, L&M, Lark, Muratti etc...
Different tar & nicotine levels, filters, length, slimness, prices, flavors
Marlboro, largest selling brand, large & small size package, blue ice, red one, gold
Parliament, small/long length, slim type with low tar, two type package; Parliament Reserve & other
L&M , large,&small size, light, supper light different nicotine level. Products According to survey, gender differences don’t affect brand preferences but also changing the type of cigarettes at same brand
From results of focus group method, PMI well known brand Marlboro is consumed because of its social effect by teenagers.
PMI start to lose power of Marlboro especially between students, due to Winston, which is brand of British American Tobacco. Many students sought that Winston is the “student’s Marlboro Most of smoking people know the company of Philip Morris and use its well known brand Marlboro
Mostly all consumer starts smoking with Marlboro and then they change their behavior depending on the effects we talked about Decrease cigarette consumption, mostly whole countries have an action such as legal restrictions, taxes, public spots, prohibitions and also organizations
Age groups, gender differences, habits and different income levels have an effect on cigarette consumption
Consumers are inelastic to change their attitude about brand they prefer Consumer Research, Analyses & Interpretations SWOT Analysis Strengths Being leader for cigarette markets provide to company determining the charged prices for cigarettes
PMI continuing its operations in 4 geographic areas European Union region, Eastern Europe Middle East and Africa region, Asia region and Latin America Canada region
PMI has developed and various distribution channels provide to company that reach to consumers efficiently Weaknesses Philip Morris developing strategies is market penetration that focuses on the only cigarettes with differentiated prices in Turkey.
Best seller brand of PMI Marlboro is not producing the slim type of cigarette that women consume mostly.
Consumers can just find small part of its brands in TurkeyLow prices in some countries while charging relatively high prices for some other countries Opportunities It made an agreement with Swedish Match AB Company in order to produce smoke free tobacco products
Modified products that are reduce harm to health which are different from cigarettes Threats Although the company has largest share in Western Europe and Latin America, it has smallest share in Asia Pacific which is the largest region in the world.
Legal restrictions such as taxes and regulatory measures implemented by governments especially in Turkey
increasing public awareness to smoking causes declining global consumption of tobacco products Philip Morris International is one the strongest company in tobacco industry.
Philip Morris is determining the strategies primarily on smokers with the well-known brands Marlboro, Parliament, L&M and Muratti in Turkish markets.
They use different price strategy for each type of smokers and operate in four regions
Their market share is increasing every passing day. Conclusion It should find the strategies for overcome the market share in Asia region
Sales representative of the company should pay attention to selling product
Philip Morris International should increase the types of brands in restaurants such as Parliament, Chesterfield
PMI should increase the type of brands in Turkey. Recommendation Local brands of PMI can be sold with huge revenue, they should work and make an observation on this issue
Develop position of cigarettes on the shelves
Develop new products for females
The company should control the markets around the universities and supply the diminishing cigarettes
Competing with ‘Kent’ Target Consumer & Positioning Pricing Strategy Distribution & Communication Strategy Thank you for your listening.. History of the Company & Product Portfolio
Full transcript