PM History/2 - Legacy Tobacco Documents Library

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PM history/51
w/BofR? . . .concluding "The Bill of Rights needs all the att & respect it
can get . What's wrong w/reminding the public to revere this precious
document?" (RK answer : PM could do it w/o Archives selling them the franchise
as quasi-official sponsors, thus dignifying their co . & products)
--PM SELLS OUT I75 INTEREST IN ROTHMANS, NYT 11-10-89 : Price for_~
29% interest is millio , a huge profit & ended specula~ionit m~ .ght
buy out Ro ans . . .would be before-tax profit of $4$0 million, having
naid $350 million in '81 . . .stock price rose over the yrs in anticipation
of PM buyout . . 1'~s~it has managed t9 ,.~ r1lt its o . enterprise
, i...-~. , ~'~S-d.~3ay~
~~.'?sWw ~
& does,n,~t_ed 'xo-~Fiintxz'°'fi}+`fE~bYi't'("IZ'K . ° this 'Ft`~'~r 'iio sense~")
--PM GEAR~73G ~`'~r5`SELL DE~,T7X'L*'"'CIGS BY MIAL, WSJ 11-22-89z Home delivery
of its Cartier Vendome brand, will provide valuable lists of dedicated
smokers . . .PM rolled out the pearl-tipped smokes in LA in Oct, had been
sold only in Europe before, packed in oval boxes w/House of Cartier logo,
cost twice reg . cigs, distributing the brand thru upscale hotels, restaurants
& tob shops
--CIG FIRMS ROLL OUT BUDGET BRANDS w/chart on Rise of Low-Price Smokes,
WSJ 12-1-89 : AB is Montclair d o1 r' , half of
reg., a no-fri ls landscape, not Mar oro Country . . .Liggett's PYRAMID
as one of mo suc intros in . .next wk PM brings out its
super ow-priice Bristol BRANDED ~ENERr_CS led bv Doral & Cambridee . the
only part of the biz w rising sales . . .the sub-gener i s will sell Q 70-900
vs . $1 .10-1 .30 on branded generics &$1 .5$ on regs//cheaper tobaccos ~elower
adv-nromo costs a11ow the cheapies to be profitable . . . z even
former regs are taking the discoun rou e, e .g ., B&irl relaunches Vicerov
as ed aeneric doublin~ its mkt share Prom ~ KS IN
L THIS brandbecause a.~frthe ~enerzcs~iQn`t attract new smkrs or hoid on~2
would-be ouitters not only wi11 units £all~~ so wi7. nro antismkg
foes attack9.ng tiT e deve3opmen~s s rewdly designed to eep two crucial
constituencies -- teenagers & poor people"/ P ramidz pack looks good, so
does price & it has taste ; Ligg . says '73% of its customers have defectedd
from other brands . . .others like Chas b7ul~~To ai'b~ ve no~cT-P~i~~
success & .followed suit (IV7ontclair et al .)//ANOTHER PER=L : heightened
resentment among smkrs of high rices of reg . brands ; Marlboro p~ro_£it
mart~in said to be 4X Pyramid's~claim here that it's vi'rtua7 .~ yLimpossible
to drag the generics up the price ladder since price is their raison d'etre
(RK disagrees)/budget cigs can make only sparing use of coupons & adv . . .
IF BARGAIN BRANDS PROLIFERATE, THEY'LL HAVE TO SPEND MONEY FOR IMAGE TO
DIFFERENTIATE & that'll defeat the whole plan, e .g ., PM about to advertise
Bristol via print & billboard . . .see how PM is SEGMENTING THE MKTPLACE
from Cartier-Vendome for super-rich down to Bristol ~o e noor TM##
~I~141S`-TR7-Sobt7 .'; "'~ SNE SELL, J 12-19-89 : Liggett's Eve
gained 8 .4% this yr despite 6 .6% industry drop/DAVID DANGOOR COUNTERS
to those complaining about niche & segmented mktgz "I find it reprehensible
at best & sexist a+ worst to assume that adult women are not capable
of making the5ir own decisions about whether or not to smoke" . . .VSlims is
leader w/3% mkt share . . .MARKETERS NOW TINKERING W/SIZE TASTE, SMELL & S,S2QH
of oi s . . .Capri, most success£ul recen~ launch, up to . s are -- it's
o sinnier ~ er s ims & 3 o than regs, is promvts PM to launch
SunPrciims . . .the LOW-SMOKE BRANDS aimed more at women who# mkters say,
worry more anen about their so` cial image & annoying those around
them" . . .Chelsea a sweet-smeller & Lorillard doing a lemonflavored brand +
Newport Stripes 1008 in white packages w/pastel stripes . . .about 90% of a11
smkrs be~in habit b~y a~e 21, acc to~vt statistics
--B&H TO SHED UI3P IMAGE, WSJ 2-2-90 : Radical switch . . .mktg people
say it's very risky to cheapen a brand image, impossible to reverse it/ ~
acot is staying w/Wells Rich
--THE MOST ADMIRED U .S . CORPS . . Fortune i-29-90 : PM ranks~#2 close ~
behind Merck . . .Merek gets top grades for roduct i on, b~.g into 0N
R&D, attracting top scientific talent, bra ns translated into money// ~
"Value as an Investment" on Hamish= At first it may seem odd that PB4, o
whose main product has been damned by the SG, should rank so high, but cp
has risen from #7 to #2 in 2yrs 1ar el b ivi.n shareholder
wh t s o -
mpoken Rr~harm2++g' .~o u° ~-8$Y33~'i`~'°- fli3c'e' ,"avannu iincr
in EPS vs . SBM•s 7% & ho~ Ford s^o . . .of course, i s easier to sell cigs
than most oer thIngsz customers don't resist price risas__ .rnt 30%
TICP,,,~g,_~}},~„~yt G last yrwtb~„,c~~,4 st-cutting . . .'Pi~'s~OTAL~7 ~'~
LY'IESTORS AVER~C^T'2''~"~"'~mOPS AMONG THE 90K CO S IN FOR-
TUNE USETPM management not
t ei usual gaggle of MBAs, many lack college degrees : ?By & large, they
have to try a little harder," says HI~Y//Rubbermaidz quality of products
is key . . .3M gets high grades for inventiveness//PlVl rated highest for
cN&ITY OF ~yT= . .Coke's f9inances impeccable~ sPending its excess
on 3oreign o tl~.n9 plants . . .J&J gettsng credlt 3or corp . citizenship
RJR fell Prom ~17 to 267
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