PM History/2 - Legacy Tobacco Documents Library

I
PM history/47
preference for A BROAD RANGE OF OPTIONS" . . .Spokane to get test mkt, too//
RJR strikes back w/"What's Next? Another cig w/more tar than Now"///see
~ RJR's CHELSEA : its an wer to offensive smel of tob is PERFUMED CIG ;
t e paper Is treated w air freshener . . .pitched to women & claiminK to
. .''_
be
ir - '• to smell • d (implying others don't) . . .subtly a-cyrac-cs wa~ic~c-en
w"scratch 'n sniff" patches in ads///EXCELc made w/specially treated
I paper, but its real pitch-isYto REDUCE V=52BILITY OF_SIDESTREAM SMOKE,
but no evidence It does anything more an re uce the obviousness of the
I nons . . .BY REDUC G T ITY O S S SMO nons m have 1 s of a
i warnin e o to the hazardous pollutio good quote
111 from Pertsehuk re PM's"WINK STRATEGY" whereby "They won't concede that
__ cigs are azardous but at the same time they reassure consumers w/a wink
& a nod that their new noncig cig isn't the one that everyone is worried
about" (see 6-15-89 WSJ)
--PM AS ADMIRED BY INDIJSTRY ANALYSTS FOR SERVICES PROVIDED,'8/893 its
investor relations people get high marks for offering informed analysis
of unfolding developments at Cipollone . . ."PM was on top of things & didn't
play cute" . . .also for speed w/which it explained its big acquisition of
Kraft . . .their people are experienced, know the co . & the industry well/
~ UNUSUAL CONTINUITY . . .as for S&H, analysts say it's really not an issue, . . .
"That's not part of the conversation" since co .'s position is so well
known there are few questions
--KRAFT TURNING TO RIVAL FOR FAT SUBSTITUTE, WSJ 8-2-89= KGF so eager
to make fat-free foods it's turning to rival for replacement even though
it's developing substitute of its own . . .placed an order for Simplesse,
NutraSweet product not yet approved for human consumption . . .could be help
in regaining ground lost in mayonnaise war w CPC Intl's Hellman's brand,
Hellman's has 53 .3% of mavo mk v•s: Kraft's 23P
--PM SPLITS STOCK, RA E6 Dl DEN'r7~ D, WSJ $-31-89 : Split is 4 for 1
w/22% dividend rise . . .some analysts thought it might go up as much as 35%/
Wall St analyst says PM doesn't have to do more than it's doing for its
holders, esv since STOCK PR E DOUBLED IN PAST vR,,,231 million shares
outstanding . .SPLIT IS SSXTH SINCE '66, most recent a 2-fop-1 in 'Sb . . .
QUI ALENT OF 192 SHARES' T~SDAY '-***#*~counting
the
ITS WEAKENED RIVAL . RJ?, WSJ 9-21-89 : "30 like .... .a,_s,ha k
M
now oing everything it can to explol~E s ae»~e°e~d
stand ng & consolidate its hold on leadershIp of industry,
tTV tyoa..._that put its competitox .jn_,.a-bind" + EXP .tCn: 0
ITS SALE OR4Ein effor~ -to'°mu'scYe"32Jft""oU"E'~i""'C"iYSicedt'"'s-pots in many
~-t supermkts where it's been long dominant . . .^I can assure you that we plan
~ to take advantage of any opportunities that the changed situationd at
(RJR) may br ng, sez vlce c ha rman M urray/James Joh nst
on no t un er-
estimated, viewed at RJR as true cig marketer & builder of brands --
BUT RJR DEMOGRAPHIS WEAKER THAN PM, made up of older, blue-collar types
who are less affluent . . .Winston losing steam, partly via many adc campaign
shifts . . ."I think everv br and wi.l1 have to be repositioned," says
one unnamed RJR marketer . . .JOHN T N~IC,NSs~R's new
macho discount brand aimed at young male smkrs, has been stealing some
biz from Marlboro -f- "A SUGGESTIVE AD CAMPAIGN HAS GIVEN CAMEL NEW SIGNS
OF LIFE^ . . .plans to reinvigorate other older brands plus new & innovative
products : "We will spend whatever it takes" (BUT RK NOTES : money is
not the pt, brains are, as Premier showed)//in 12 mos ended in March,
PM g-.a~neClg,K ~ue ,~,x ,e on basis of Cam
tir-
'd~g & A1p ne'brands, R~'R ~los-~ two l,pts of the segme'n'£~~"$1V~`ln•~'r`oc~uces
2~°X`~,`low nic brand, & Ultra Light Marlboro, showing PM tr,Ying to woo
smokers concerned about their health . . .RJR trying, too, w/Excel & Chelsea
& failed Premier . . .~'M L-~._ATCO g~,gRn R~Zg . 3;N Q~
, . ¢R~'A' ~ &,y MFtYBE +
DAMAGING PR ~flDI},~,,,,,, ice a r- rzc ~sesare almost"`~m~•',S'sib
to resls~even i wan ed to s nce alers ll r is
all bran s for retailers & pocket the di£f . . . . In May RJR raised prices
jus un er , s z y lower than expected, but sev wks later, PM chose
to push the increase to 6%s RJR matched the rise on its high-priced
brands, but only ~rudgir~ly . . ."You clearly saw our strategvwas to go more
moaeszlY on nrlcing- sez JonnsZon, ac.aYng ZnaT ever-nl rlces co
hurt the bele
.a~uered industruy -- Ry could also P customers are more Yikegv to swltoh_from RJR brands to cheaper ones than
Marlboro customers are to g .vve up on theirs . . .is PM playing more hardball
-- namely, while it may lose some business because of higher prices,
it stands to make more money & gain more mkt share than RJR in the end . . .
PM- .-ii.D ._900 SALE5P.E9P?.E__.SINCE SEPT F~}sl}, .,@ ffor~ .,t~z.~d~J.,odg e~~ RJl~
Yrom rac c o~~y~~r~~ i a-E cF~ved yrs ago when l~E -~-ed•'3ridust"ryt NTi~t5~31`e'~'
~2'Gr"~•~'a most weekly now where they used to come every couple of months
http://legacy.library.ucsf.edu/tid/fmw44c00/pdf
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