PM History/2 - Legacy Tobacco Documents Library
PM History/2 - Legacy Tobacco Documents Library
PM History/2 - Legacy Tobacco Documents Library
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pm/25<br />
lack all credibilitv because they refuse to concede that cigs pose any<br />
health hazards or dangers, "T~heir all-out den~ .al takes awav .he imgs.ct o~<br />
anything they sas" . . .ALA-sponsore Tahup Poll n Nov of i,5 O showed<br />
8796 ~ avorban on smkg in workplace or creation of spe¢ial nonsmkg areas<br />
+ 32% favor ban on all cig adv<br />
--COODBYE TO THE MARLBORO MAN, Forbes 6-2-86s cig co .s steadily<br />
abandoning nat'l mags for adv „ preferring ooupons s onsorshi of s orts<br />
eventsi nt of sale disnlavs & sharply focused promotion devi ces seen<br />
as shift away from winning new smokers to - ose who already have the<br />
habit (see example o£ Camel adv from '30ss "You'll enjoy this pleasing<br />
'Energizing Effect• . . .Get a LIFT with a Camelt" (as part of the whole<br />
'3Os failure to warn, impliedwasranty . . .'85 mag ads off 12% from '8tY<br />
& trend worsening . . .sales off 7% over past 4 yrs, AMA has joined Wash<br />
kobby efforts to end cie~ ady altogether . . .women•s mags espa sFarcT~i3t<br />
as fYinds go to Va Sli.ms Tennis Tour & Marlboro Country Music Festival/<br />
promo could ss~ be 80% of the budget & adv onlv 20 BUTs still a very<br />
4ro3"i a l~e business, four argesci co .s had 2 return on equilM<br />
over ast vs .I-Eo'-3Ts s a e un er 20 only grow mkt~ts are ieale<br />
n gener c-discount sector<br />
--DRAFT OR DAFT?/Forbes 6-90-86s Latest wrinkle is Genuine a t via<br />
*trade secret acquired from Japan to pour draft flavor in o es &<br />
canss no beer in recent yrs has successful sold itself as a draft surrogate<br />
. . . High Life off about 43$6 since '79 & looks like a dying label<br />
whereas ite has own fro arrels in ' to 1 m'<br />
'~ -- or near y O more than High Li£'e##s # ig mil on Miller<br />
adv drive in '86//secret behind Genuine Drafts a cold-filter technology<br />
from Sapporo Breweries -- but some industry observers think the diff .<br />
bet . GD & HL is inconsequential . . .could help Coors<br />
--HANGING TOUGHs <strong>PM</strong> Product Mix Lets It Resist Savings in Economy,<br />
Barron's 28-86s <strong>PM</strong> highly resistant to all but the worst swings in<br />
the economy add tion of GF's broad line should bolster that resistance . . .<br />
<strong>PM</strong>'s eouitv return hit~$_~4~6, highest level in over a decade, & while<br />
GF•s return 3'o-~ en1-85, combo is expected to be over 250 for<br />
this yr// N'84 <strong>PM</strong> SUF TS T<br />
DEC In ' a te w" d o t but tob . leaf<br />
costs 20 in ' 5-' span . . .GF en"o in an excellent as<br />
doin ve has s~Miller expects<br />
8-10 increase In prof ts w net at ab SALES//debt-equity<br />
ratio was 1 .7s1 at end of '8 4er GF purchase but down to 1 .3s1 by end<br />
of yr following & due to be 1s1 end of '87//recent court,rulings on<br />
preemption thought to lessen litigation threats<br />
--<strong>PM</strong> SELLS - WS s Hicks & Haas become<br />
#3 US soft drink maker the closely held Dallas outfit in recent months<br />
has HTands big root bee outfit . ~ivina<br />
it w 7-Up 13 .5% of USmt~ . . .H&H has orit'ic~aiai n-bazce<br />
. . .earlier <strong>PM</strong> sold 7-Up Canad.t<br />
you nee more range in th-e s~`'o t=drInd~ z<br />
ian & int'l operations to Pepsico for $246 million . . .earlier ZTr, had<br />
blocked ro osed sale oP £-U to Pe si for 80 mi11<br />
-- TED NO E NTERVIEW W HUGH ULLMAN from Pbrbes files About<br />
<strong>PM</strong> overseas . . .US c ve hi h credibilit & vi ce" ed like<br />
Swiss watches tch Chocola e ian leather . . .US GIs helped develop<br />
t e wor d m n pos war . . .In EEC & deve oping countries you have to<br />
make the Product indigenously//initial thrust was export to independent<br />
importer/distributor . . .Australla was Pirst si~nif . ~f'f'+liste, installed<br />
<strong>PM</strong> equip, but bought Auss~.e eaf because you had to have at least h,aZf-<br />
Aus~~~gat .<br />
substitution as way to preserve balance of payments so onl com onents ..~p<br />
that can't be made locally are shipped,,,,.,,,~in Venezue a, a~p\<br />
PNl~everpe~'~ig expoi'3 ;~mkt; gov~"rule gives 2-3 yrs to bring in raw y<br />
leaf but after that you ave to use nat"ve .//NOTE= GIGS NOT AN .A<br />
ADVANCED TECHNOLOGY INDUSTRY, not e transistor chip biz, so it can o1~<br />
be readil tranel eds technolo t ainin mana ement skills . ., a\<br />
Aust a1 mkt sha then writing license agreemen s£or 1-1<br />
Mar boros In Italy, Germany . . .but as brand progressed. <strong>PM</strong> went its own CO<br />
way, putting up factories . . .<strong>PM</strong> first co as re ared to license lar e<br />
fgreian~zn=c .s~r~ovidina ec , supervis~.on u m contro , mk a<br />
suvervision . . .Phi~lippine licensee a par acularly goo e .g„ 2 . . .<strong>PM</strong>-Int'1<br />
~ecentraliy_ad., depending on the country mgr/"It frankly takes some ime<br />
to e~p a cadre of experienced people who know our policies & procedures<br />
& who are also good cig men & good mktg men//US one of the few<br />
mkts w/single vricin~, wide range abroad where US co .s perform a taxco51<br />
ec'ting function, excise taxes can be as high as ten-to-one (RK?) . . .<br />
http://legacy.library.ucsf.edu/tid/fmw44c00/pdf
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