PM History/2 - Legacy Tobacco Documents Library

pm/26
PM tries to sell at upper end o£ any £or . mkt, riding wave o£ jeans,
Coke~ , US mu ic as r~.se in per capita consumption abroad helps cig
sales.,,Germany : license in '60 built first vlant there in'_2 &
put in cowboy image that wor ed . . .JAPA : very big monopolized mkt,
imports about 5% o£ mkt, PM licenses Marlboro there//ITAL concern
there was German co .s would have unfair advantage in t~mkt because
more money to toss around, so deeisionsto stop adv . of all ti+~Anas
a~s of '22/other than Latin America & Afr~_ca, t~to~inustry is basically
off TV . . .PROFITS : licenses iust can't generate same degree
ro£it se s at on t=" ~, PJZ , s_ o•
iving sn t hi
,, V
. .as biggest tax collectors, ' ~ ne er areprof'i~~ .~e""~'o~~'e~r~a
Si"E'byore ign govts . . .prices & profits higher in western Europe while
rice in India is 1 0 a Pack . . By late '70s cigs were nearly 5 % share
of wor mkt is this ust PM?)
--T-RiRRTS_ Fhrfiesx 1 9-1-R/i : Mil l nr in 'Rn hnonvi +n hnil A 9'JJ.19 mil l i ..n
~~ brewery in Trenton Ohi7o-arter decade of growth that saw t_s
640L{ ' dustxy,,~ ..,a•-~rhole/b.y '82 as plant is ~i.one, U_5_beer
th~rs`~fell for firs't time in 25yrs3 worse, ~ieuser-'8-wo e up spent
Ion on i s own exrans on ripled its adv outlay -- and now :
' A-B RULES SUPREME . . .I-Iigh Life sales off 50%
--WEISSMAN ELECTED LINCOLN CENTER CHAIRMAN, NYT 'i-25-86 (see GW file)
--HERE'S ONE TOUGH COW_BX, Forbes 2-9_87 : Its pack is the same & its
tob . wTiile-'lig qu i yis no better than its competitors' yet this
one brand accounts £ 28% of PM revs & more than half _its_net.s a
m-Tc crow e w nearly 250 ranffs, se s nearly one out of every four
US cigs sold . . .since '80 it's grown 3% a yr while industry as whole is
losing 1 .5 to 2% a yr . . .orig . introduced as women's cig in '24 & at time
it was converted 30 yrs later in male-oriented product, sales were down to
paltry 18 million units a yr//key is B- O MAN £anc e
d.ialogue (the MM never talks) seems to be en~ov ng his solitude . . .TV
B BABLY BENEFITTED BY TV~S~SA because Its Imge product were
already well known w/large mkt share whereas smaller brands & new ones
had much tougher time breaking thru . . .onl Merit h s ed as a ma
brand since TV b how to keep it growing, thou ? Answer was -
NSI ,, mk g jargon for variations on the products details given mL109
Harting w/softpack in '58 . . .MM has appeal worldwide as a person ty &
sueeests adventure, freedom "being in charge of yr destinv," says PM
'1 boss Murray arl~ros said in surbey ~o e stb- ronger than Camels
& says a 42yrold electronics products maker : "When I inhale them, they
make my lungs £eel fuller than w/any other cig"*****THE PACKAGE MAKES
A STATEMENT 20-25X a day, consumer is expressing how he wanta to ~e
1seen b~Fiers/Marls often appeal to THE SOC2 who use t
~~E brand as nart o e r war ro i e costu_me _ewelry or a a c macho
ima e work ab a3& says muc"h-a'~oC-ut user ~ s attitude toward US,
oreigners associating cowboys w/Amer image, foreign ambivalence t w d
US= admiration, resentment, emvyi Marlboro seems e cit the admiration
part . . .as Americans want to be chic & buy expensive hliro, products like
BMWsa it's easier for Europeans wanting to affect Amer . manner/even while
critical of US foreign policy, many foreigners want to come to US & hit
it big, thus Marlboros as downpayment or only step possible
--GENERA'r• Fnnnc TO RF'ORGANI2E . NYT 8- - 7 : Most of corp . staff to be
disappeared & three operat3 na unls created -- GF-USA, GF Coffee & Int'l,
and Oscar . to allow divs, to faster & more flexible decisions, most
of 2,000 at White Plains may be out, hope to save $150 million . .on staf_f_
cuts . . .first move to strengthenm_anagemen .v P_M, nation's largest consumer
products co .lur TacT nearly O of M's sales in '86 but only about
20% o£ net, . .GF chairman Smith denies PM has put pressure on to improve
margins
--STUART DAVIS PARIS PAINTINGS ON EXHIBIT AT WHITNEY-PM, press release
10-1-87= Whitney & its programs at PM are funded by PM
--PM TO ADD 2ND GLOBAL BRAND?/Adweek 11-9-87 : PM feverishly working
to develop new brand abroad where mkt for US cigs is booming/Marlboro
lis world's lar est-sellin acka ed ood of any kind w/vol at $7 billion/
=Marlo responsible for av ng near y 1/4 of the West German mkt, nearly
19% in France, 75% of the Jap . import mkt . . .Eliz Butson, vp-mktg services
of PM Int'l, says PM wants to support Marlboro w/2nd brand "but you ~
don't create a global trend ; it has to take off somewhere" . . .US brands 01~
labroad have two big advantagesc QUALITY & SSTATUS/Marlboro coming on now ~
in Brazil where 3avori e~3s sT43~ig;-3uTI=~~avored brands . . .Marlboro adv 'A
campaign was $70 million in '86 . . .DifP. appeals as new brands test-mkted ~
like Star in Europe, some want low-tar, some value (price) . . . Tougher now ~
to introduce a brand w/o adv nermitted legally in many mkts//might have ~
to e a tech . breakthru or some ii$~'ng special to justify a new brand ~
http://legacy.library.ucsf.edu/tid/fmw44c00/pdf