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Gaining Strategic Marketing Advantage for the Phillip Morris Company
In this presentation am going to talk about what is strategic Marketing and how could a company exploit these advantages to be
the No.1 brand in its prospects minds but I will use Phillip Morris Company as an example to explain it more clearly..
To gain strategic marketing advantage a firm needs to follow logical sequence of analyses and decisions, so that corporate and
marketing management be able to select
The best strategy that fits.
The following sequence of steps is the way firms use to gain strategic marketing advantage:
1-First ,we Analyze The Strategic Situation through its strategic forces including:
1-The Organization
2-Market Structure and Dynamics
3-The Industry and the Competitive Arena and,
4-Environmental Factors
2-After analyzing we Determine our Situational Advantage but there are five situational types covering the range of strategic
situation that occur in many different industries and markets. These are :
1-Market Development
2-Market Domination
3-Differential Advantage
4-Market Selectivity
5-No Advantage
3 & 4-The next phase following is Examining Strategic Objectives and Alternatives
A-Strategic Objectives
1-Market Position
2-Performance
B-Identifying The Strategic Alternatives
1-New Product
2-Market Targeting
3-Marketing Program Positioning Strategy
4-Product Improvement
5-Organization Design
6-Exploiting special Advantage
7-Acquisitions/Merger/Strategic Alliance
8-Exit
5-This is the phase where all those strategies are now implemented this phase is called Move from Strategy to Action.
A-Determining Strategic Fit
B-Strategy Selection Criteria
1-Sustainable Advantage
2-Strategy/Results Linkage
3-Resource Requirements
4-Strategy Design/Implementation Complexity
6-This is the last phase, in which we evaluate our performance and se whether the strategy we applied was successful or not.
We call this phase Marketing Strategy and Business Performance
A-Strategy Selection and Performance
1-Strategy Research
2-Strategic Windows
3-Strategy Diagnosis
B- Implementation Issues
1-Linking Planning and Implementation
2-Strategic Integration
C- Environmental Vulnerability
1-Analyzing the strategic situation
Strategic forces:
1-The organization: When Phillip Morris started its business in the cigarette market the marketplace was already
established with well known companies such as Lorillard, R.J Reynolds and J.E liggett & Myers tobacco company and the
nation wide known company American Tobacco co. The business was considerably strong because cigar producer George
Whelan created Tobacco Products Corporation and began buying smaller enterprises that had been freed up from the trust.
In 1919 Whelan purchased the U.S. division of Philip Morris and formed Philip Morris & Company Ltd., Inc., as its managing
company. In 1919 the Phillip Morris Coronet Logo is introduced.
In 1929 Philip Morris begins manufacturing its own cigarettes by purchasing a Factory in Richmond, Virginia.
In the 30s a new version of Marlborough cigarettes, which was called Marlboro. Like the British version were marketed to
upscale women and sold very well in their first year it featured a red tip to hide lipstick marks. Mild as May
In 1933 Philip Morris introduced a premium brand of cigarettes called Philip Morris English Blend. A clever ad campaign in
which a bellhop would announce a “Call for Philip Morris” helped the brand achieve high sales. By 1936 the company
ranked as the fourth largest U.S. tobacco product maker.
2-Market structure and Dynamics: In the late 1920s and early 1930s, the cigarette was adopted by female factory workers
and college women as a symbol of rebellion, independence, and equality. Tobacco companies exploited this new market by
directing advertising at women such as this advertisement. Women were willing and able to pay .I mage was important.
There was well established companies in the cigarette market with well known brands as Chesterfields, lucky strike and
Camel.
Lucky strike had a market share of 43.2 billion and was ranked No.1 at that time.
At this time, Duke was establishing a tobacco trust—a form of monopoly in which a parent company acquires other
companies and manages them in order to eliminate competition. Reynolds, however, had been guaranteed some
independence, and the company produced five of its own brands of smoking tobacco in 1905. In 1907 the company
introduced a very successful pipe tobacco called Prince Albert.
In 1911 a U.S. federal circuit court ruled according to the Sherman Antitrust Act that American Tobacco was an illegal
monopoly and ordered the breakup of the company. Reynolds’ family bought back some of its old stock, and within one year
Reynolds once again controlled R.J. Reynolds. At this time, the company was the smallest of four major tobacco companies
created by the breakup of the trust: R.J. Reynolds, the remaining American Tobacco, P. Lorillard, and Liggett & Myers.
In 1913 R.J. Reynolds began producing cigarettes. The company introduced three cigarette brands to test the market.
Reynolds himself developed the mix of tobaccos for one of the brands, which he named Camel. Advertised heavily and sold
at a low price, Camel cigarettes were soon the most popular of the three brands.
Richard Reynolds died in 1918, and William assumed control of the company. The next year the company advertised Camel
with immediate success using the slogan, “I’d Walk a Mile for a Camel.” By 1924, with Camel sales booming, R.J. Reynolds’s
earnings reached $24 million, overtaking those of American Tobacco, which until then had been the leading U.S. tobacco
company. William Reynolds assumed the position of chairman of the board, and much of the company’s voting stock was sold
to employees.
3-The Industry and the competitive arena: During World War II (1939-1945), U.S. tobacco companies produced millions of
cigarettes for members of the armed forces, and sales boomed. After the war, however, cigarette sales dropped steeply,
and Philip Morris faced some difficult years financially. By 1948 its sales had begun to rebound.
At the beginning of World War II (1939-1945), R.J. Reynolds continued to dominate the cigarette market. In the period after
the war, however, cigarette sales dropped. Wartime efforts also created shortages in labor and manufacturing materials, and
R.J. Reynolds faced its first major labor disputes in 1946. The company’s difficulties continued in 1948, when several company
executives were convicted and fined for engaging in monopolistic practices.
The company weathered these difficulties but soon faced new ones.
Ligget and Myers had 28% of the cigarette Market, P.Lorillard had 15% of the nations business, American Tobacco had 37% of
the market and finally R.J Reynolds had 20% of the plug trade.
4-Environmental Factors: The time periods in which cigarette companies had the most impact on women’s smoking habits
include the post-World War I era (1920s and 1930s), the feminist movement (1960s and 1970s), and currently with the
globalization of consumption.
In 1950 the American Medical Association published a report linking smoking to lung cancer and in 1952 and 1953 professional
health organizations released the first studies linking smoking and cancer.
2-Determining Situational Analysis
1-Market Development:
In response to these developments, R.J Reynolds needed to develop to be able to stay ahead therefore R.J Reynolds
company introduced Winston and Salem, two filter-tipped cigarettes, in 1954 and 1956. At the time, cigarette companies
maintained that filters would reduce the harmful effects of smoking. Both Winston and Salem were extremely successful.
In the 1960s concerns about the health risks of cigarette smoking started growing in the United States. To protect itself from
possible declines in tobacco product sales, R.J. Reynolds began to diversify, buying companies in other industries and tobacco
companies in other countries. In 1966 the company created Reynolds Foods, a subsidiary for its non-tobacco enterprises, and
purchased Chun King, maker of prepared Asian foods and ingredients. In 1968 the company created another subsidiary, called
R.J. Reynolds International, to develop tobacco product markets outside the United States.
On the other hand Philip Morris’s sales dropped again between 1950 and 1954 but in 1955 Philip Morris introduced filter-tipped
Marlboros and the Marlboro Man, a rugged cowboy character, in its advertisements. The ads for the first time targeted the
brand to men, and sales increased following this change in marketing strategy. In 1960 the company fell to sixth place among
U.S. tobacco firms, and it began to focus more on export sales.
2-Market Domination: At that time American Tobacco owned by Duke was still # 1 in the US with 33% of the market.
3-Differential Advantage: In 1954, Marlboro's filter tip was revolutionary. This allows PM to manipulate leaf and
manufacturing to its advantage. Efficiency of marketing spend which is not diluted across several brands. Greater productivity because of fewer brands and products, with up to 20% lower conversion costs. However, a number of other packaging features have made the Marlboro pack an essential part of the overall brand imagery Simple Design - the pack design is
simple, yet bold and distinctive, the key
Features being the chevron, the red and white coloring and the style of the Marlboro lettering Consistency across markets
jinn over time - this means that the pack is instantly
recognizable across the world, adding to the impact of the brand's image. There is no deviation from the global design
standard. Adaptability - because the chevron design is so simple and the Marlboro lettering so distinctive, changes of coloring
the gold for Lights, gray-silver-blue for Ultra Lights and green for menthol) do not fundamentally alter the pack design.Marlboro advertisement 1 Marlboro Advertisement 2
"Man-sized taste of honest tobacco comes full through. Smooth-drawing filter feels right in your mouth.
Works fine but doesn't get in the way. Modern Flip-top box keeps every cigarette firm and fresh until you smoke it." - Phillip Morris Marlboro Advertisement
The Marlboro Man Marlboro Country Come to where the flavor is Come to Marlboro Country
In a friendly, unpretentious and honest voice, the Marlboro men gained the trust of millions. The "Tattooed Man" campaign
was described by Cullman, as "virility without vulgarity, quality without snobbery" (Esquire 6/60). After their introduction in
1955, Marlboro became the top selling filtered cigarette in New York. Eight months after the campaign opened, sales had
increased 5,000 per cent.
4-Market selectivity: Phillip Morris company introduced Virginia Slims, a new cigarette brand aimed at women, in 1968.
5-No Advantage:
3 & 4 Examine
Strategic Objectives and Alternatives
A-Strategic Objectives:
1-Market Position: Philip Morris’s fortunes began to improve markedly in the 1970s. In 1970 the company bought the Miller
Brewing Company, then the country’s seventh largest brewery. In 1973 Marlboro became the second best-selling cigarette,
behind Winston, made by competitor R. J. Reynolds Industries. At that time, over 60 percent of Philip Morris’s earnings
came from Marlboro. In 1976 Marlboro overtook Winston in U.S. sales, a position it has held ever since.
1970: BUSINESS MARKET SHARE: American Tobacco's share of the US market has fallen to 19%.
1970: BRAND CONSUMPTION:
|
RANK |
BRAND |
BILLIONS SOLD |
|
|
1 |
Winston |
81.86 billion |
|
|
2 |
Pall Mall |
57.96 billion |
|
|
3 |
Marlboro |
51.37 billion |
|
|
4 |
Salem |
44.1 billion |
|
|
5 |
Kool |
40.14 billion |
|
1971: BUSINESS: R.J. Reynolds Tobacco becomes R.J. Reynolds Industries
1971-01-02: REGULATION: TV: Cigarette ads are taken off TV and radio as Cigarette Smoking Act of 1969 takes effect.
Virginia Slims ad, aired on the Johnny Carson Tonight show, Jan. 1, 1971.
1971-04: Cigarette manufacturers agree to put health warnings on advertisements. This agreement is later made into law.
1972: BUSINESS: Philip Morris Inc. acquires 100 percent of Mission Viejo Company, a community development and
home-building firm.
2-Performance:
1972: BUSINESS: Philip Morris Inc.'s revenues top $2 billion.
1972: BUSINESS: Marlboro becomes the best-selling cigarette in the world
1975: BUSINESS: PM's Marlboro overtakes Winston as the best-selling cigarette in the U.S.
1975: BUSINESS: Philip Morris' net earnings top $200 million.
1976: BUSINESS: Philip Morris exceeds $4 billion in revenues.
1976: MARKET SHARE: Philip Morris' share of the U.S. cigarette market increases to 25.1%; the international tobacco
company's share increases to 5.1%.
1978: BUSINESS: Philip Morris obtains the international cigarette business of the Liggett Group Inc.
1978: BUSINESS: Philip Morris Inc. acquires 97 percent of the Seven-Up Company
B-Identifying the Strategic Alliances:
1-New Product: In 1975 Philip Morris introduced a low-tar cigarette called Merit.
2-Market Targeting: This was a new response to continued public health concerns about smoking. Medical researchers had identified tar as being toxic and the main carcinogen in tobacco. As public sentiment against smoking grew, it became
increasingly important for tobacco companies to diversify their operations. Marlboro - PM's global strategic focus remains
as committed as ever to Marlboro; its objective being to build the added value elements of Marlboro in order to achieve and
maintain brand leadership at a premium/high price in as many markets as possible. Long term profitability is stressed, PM
being willing to sacrifice short term profits in order to grow long term share in international markets. Once markets are
established, PM uses line extensions and a broader product portfolio to maintain volume and share growth. PM's Marlboro
strategy gives it a number of distinct competitive advantages A key reason for Marlboro's ongoing success has been its line extension strategy which has broadened its appeal to now smoker segments and kept the brand current and in the mind of
both smokers and the trade. By managing the family as a brand umbrella and using the line extensions to build the overall
family franchise, PM has achieved spending synergies. Menthol, 100s, Lights. Ultra Lights,10s and 26s have all been introduced
since the late 1960s.
Marlboro Lights
Much of Marlboro's recent worldwide momentum has come from the Lights version which over the last live years has grown
on average by 21 % per annurn compared with just under 8% for the Red version (which in 1992 actually declined for the first
time ever in its international markets).
Lights - as smokers became more health conscious from the late 1970s, seeking lower tar/nicotine cigarettes, it was argued
within the industry that Marlboro would never introduce a light or mild version, which was considered incompatible with its
macho, rugged, 'come to the flavour' image. On the contrary, the Cowboy has worked remarkably well in the Lights and Ultra
Lights line extensions by using subtle colour variations on existing advertising images leg. pate wintry Marlboro country scenes
and a white horse and an appropriate caption 'The flevour spirit of Marlboro in a light cigarette'.
3-Marketing program positioning strategy: When Philip Morris decided to reposition Marlboro as a man's filtered cigarette,
the creative people asked themselves, "What's the best masculine image in America?" Although a cab driver was a close
runner-up, Gil's Collins suggestion of the cowboy received the most agreement. that the Marlboro Man represents a return to
our original heritage; that he is the "last free American." Rodeo
This certainly has some truth to it. The Marlboro Man was generated
during a period that heavily emphasized the appeal of the Western Frontier: there was a plethora of Western films, television
shows, and articles featuring real rodeo stars and life on the range. When John Benson was asked if he felt the Marlboro
cowboy would be a success if it just came out, he paused and then replied in the negative. Yet, in the same tape, he was
recorded saying, "The Marlboro Man isn't modern - he's timeless." Ironic? When you closely examine who the Marlboro Man is,
beyond his being a cowboy, the idea of him being universal and timeless becomes crystal clear. The people at Marlboro strive
for "candidacy" - for authenticity. They don't use models in their ads, only real cowboys engaged in real cowboy activities.
The men the shoot are far from perfect: they are usually older and some even have, (gasp), visible wrinkles! But with all their
flaws, they come to represent men of substance, strength, and fearlessness. And perhaps most importantly, these real cowboys
come to represent real men, to all the workers stuck in their suffocating cubicles in the city. These cowboys become a
possibility, a feasible goal for these men. Correspondingly, Marlboro Country permeates the attractive values of the cowboy,
namely adventure, independence, freedom, and heroism. Although Marlboro has often been narrowly defined as a male brand,
by both the people at Philip Morris and the general public, it also has enormous appeal to women. This is because, underneath the cowboy clothes is an authentic man who possesses all the qualities both men and women desire. When a man looks at the inviting landscape of Marlboro Country and the rugged cowboy, he is being exposed to a number of powerful messages. Looking at the open grassy fields, the viewer sees escape from the pressures, stresses, and routine of mundane life. When interpreting the image of the lone cowboy riding his horse, he feels a sense of independence and autonomy. Judging from the cowboy's clothing, he doesn't appear to be lowest man on the totem pole, but you don't get the sense that he's the top dog either. If he was the ranch owner for example, he might be seen more indoors with paper work. The Marlboro Man also appears to have a purpose and agenda, yet the flexibility to do things his own way. Control is another major theme in the ads: whether pulling in his horse with the reins, gathering up the stray sheep, or even just standing, looking out into the distance, the Marlboro Man is portrayed as having immense control over things and his life. This idea of controllability has a dual influence, attracting women as well. Heroism and the concept of being "one with nature" also
play important roles in enticing women. And, of course, sex appeal is surely at work in the cowboy's physique and symbolism.
4-Productivity Improvement: PM has consistently maintained the quality of the Marlboro product at the factory gate. The
packaging and its contents always meet the highest standards. Medium - in the United States, PM perceived that there was a gap in its Marlboro family when it found that switchers from its Red version were not all moving down to Marlboro Lights, but
to rival brands with tar/nicotine levels below Red, but above Lights. In 1991 it therefore introduced Medium Ja mid tar
cigarette) targeting smokers who see Lights as unmanly and unmacho. The crucial feature was that the packaging retained the
familiar red appeal and therefore did not have the appearance of a 'light' brand.
5-Exploit special Advantages: Recruitment and development of the best marketing talent. PM spares no
expense on improving and motivating their people. The pursuit of marketing excellence through the, highest standards –
virtually everything PM has ever done with Marlboro from major advertising campaigns to short term promotions is of the
highest quality. Successfully and consistently adding value to Marlboro over the longer term.
MAXIMIZE PROFITABILITY.
Older Brands - in recent years PM has broadened its single brand strategy to include a number of second line international
brands. These brands which include L&M, Chesterfield, Philip Morris and Lark are used tactically to exploit specific price
opportunities (e.g. Europe and Latin America), and/or attack dominant competitor positions (e.g. Latin America) or to take
advantage of new segments
fog lights - thereby maintaining overall growth momentum for the PM group and achieving its objective of dominating all
major consumer segments. Recent examples include:
The relaunch of Chesterfield (as a value offering) in Franca, which within 12 months has become the fourth largest brand with
a market share of 7.7%.L&M in Brazil fat a low price to attack Souza Cruz's dominant market share)which grew share from
0.2% in 1991 to 3.9% in 1993. L&M in Finland (low price and in 1 Os) which grew market share from 0. 1 % in 1991 to 11.6%
in 1993.
In Japan, a new brand, Next. was introduced towards the end of 1993 to exploit the growth of the ultra low tar segment. It
has performed strongly to date with a current share of 1. 1 %.The recent performance of these brands demonstrates PM's
ability to move quickly to fully exploit market opportunities. Marlboro - PM's global strategic focus remains as committed as
ever to Marlboro; its objective being to build the added value elements of Marlboro in order to achieve and maintain brand
leadership at a premium/high price in as many markets as possible. Long term profitability is stressed, PM being willing to
sacrifice short term profits in order to grow long term share in international markets. Once markets are established, PM uses
line extensions and a broader product portfolio to maintain volume and share growth. PM's Marlboro strategy gives it a number
of distinct competitive advantages ...... Efficiency of marketing spend which is not diluted across several brands. Greater
productivity because of fewer brands and products, with up to 20% lower conversion costs. Having achieved market leader
status: Marlboro sets the price for the whole market and gets over-proportional trade support.
Marlboro benefits from taste leadership giving it research and development and leaf buying cost advantages. ........ all of
which allow PM to achieve critical mass and most importantly.
6-Acquisition/mergers/Strategic Alliances:
1983: MARKET SHARE: Philip Morris U.S.A. gains market share for the 21st consecutive year, to reach 34.4 percent,
overtaking RJR to become the #1 tobacco co. in the US in sales. For the 30th consecutive year, Philip Morris announces
record revenues ($13 billion) and earnings ($904 million).
1985: BUSINESS: Philip Morris buys food and coffee giant General Foods (Post's cereal, Jell-O, Maxwell House Coffee for $5.6
billion.
1985: BUSINESS: Philip Morris net income tops the $1 billion mark, reaching $1.26 billion.
1986: BUSINESS: Spurred by the General Foods business, Philip Morris revenues increase more than 50 percent to $25.4
billion, while net earnings reach $1.5 billion.
1988: BUSINESS: Philip Morris pays $13.6 billion for Kraft, Inc. As in the General Foods deal, most of the financing is provided
by non-U.S. sources.
1988: BUSINESS: Philip Morris revenues reach nearly $32 billion; net earnings top $2.3 billion.
1989: BUSINESS: PM combines Kraft Inc. and General Foods Corp. to form Kraft General Foods, the largest food company in
the United States.
1989: BUSINESS: Spurred by the Kraft Inc. business, Philip Morris Cos. revenues increase 41 percent to nearly $45 billion; net
earnings jump 26 percent to nearly $3 billion. Operating companies income from Philip Morris International tops $1 billion for
the first time.
1990: BUSINESS: BRAND CONSUMPTION:
|
RANK |
BRAND |
BILLIONS SOLD |
|
|
1 |
Marlboro |
134.43 billion(?) |
|
|
2 |
Winston |
45.81 billion |
|
|
3 |
Salem |
32.01 billion |
|
|
4 |
Kool |
25.67 billion |
|
|
5 |
Newport |
24.09 billion |
|
1990: BUSINESS: Philip Morris acquires Jacobs Suchard AG, a Swiss-based coffee and confectionery company, for $4.1 billion.
1990: BUSINESS: Philip Morris' revenues reach $51 billion; operating companies’ income reaches $3.5 billion.
1991: BUSINESS: Marlboro Medium is introduced
1991: BUSINESS: PMI's volume tops 400 billion units
1992: BUSINESS: Philip Morris Cos. revenues approach the $60 billion mark; net earnings fall just short of $5 billion. Operating
companies income tops $5 billion at PM U.S.A.; $2 billion at both PMI and KGF; and $1 billion at the international food
business.
1992: BUSINESS: Financial World ranks Marlboro the world's No. 1 most valuable brand (value: $31.2 billion)
1993: BUSINESS: Financial World ranks Marlboro the world's No. 1 most valuable brand (value: $39.5 billion)
1993: BUSINESS: Philip Morris buys RJR Nabisco's North American cold cereal operation.
1993: BUSINESS: Philip Morris' revenues reach nearly $61 billion.
1995: BUSINESS: MARKET SHARE BY COMPANY:
| 1. PM 43% | |
| 2. RJR 28% | |
| 3. Brown & Williamson 11% | |
| 5. American Tobacco Co. 7% | |
| 3. Lorillard 7% | |
| 3. Liggett & Myers 2% |
7-Exit:
1998: BUSINESS: Sara Lee sells its loose-tobacco business, (Amphora, Drum, etc.) to Britain's Imperial Tobacco for $1.1 billion.
1999-05: BUSINESS: RJR Nabisco sells its international tobacco arm to Japan Tobacco for $7.8 billion; Japan Tobacco is not
the world's third-largest tobacco group.
5-Move from strategy to action
A-Determining strategic Fit: Since Health issues were becoming a big concern these days plus Marlboro being the best
selling cigarette Phillip Morris had to change his strategy, Therefore ,he concentrated more on Marlboro lights and Bought
other companies that has nothing to do with smoking and then he changed the name of the mother company to Altria to
reflect that the company has other industries besides Tobacco.
B-Strategy Selection Criteria:
1-Sustainable Advantage: The Marlboro man was already an advantage for Phillip Morris over his competitors. Phillip Morrispursuit of marketing excellence through the, highest standards with Marlboro from major advertising campaigns to short
term promotions is of the highest quality. Successfully and consistently adding value to Marlboro over the longer term. With
specific reference to Brand Value PM has managed and protected Marlboro's equity to the extent that, in 1993, *Financial
World' reported that it is the world's most valuable trademark valued at $39.5 billion. Successfully adding value has allowed
PM to achieve profit margins that far exceed most Fast Moving Consumer Goods products.
2-Strategy/ results linkage: The Colour Red - this has been used in some of Marlboro's advertising (e.g. UK and Germany)
where experiments have been made to replace the pack with the colour red (to comply with increasing advertising
restrictions). In the UK, black and white images with a strategically placed dash of red colouring have been used. However,
PM*s attempts to 'own' the colour red have so far had limited success and have not consistently superceded the more
celebrated cowboy campaign. there have been persistent rumors that PM is working on Marlboro Express', a shortened
cigarette which gives the same impact as a standard length cigarette. PM hopes to target smokers affected by smoking bans
in the working and public environment. However, history tells us that smokers are not
generally receptive to product Innovation and there must therefore be considerable doubt about the potential for Express,
if it ever reaches the market.
3-Resource requirements: In the 1950s Marlboro had twelve different advertising agencies and seven different campaigns in Europe. Having tested the US advertising against local advertising in a number of markets, the Cowboy was
rolled out as standard in most markets. PM works on the philosophy of making the Marlboro advertising instantly
recognizable across the world. Even thirty years later there are few competitor brands that can claim to have truly global
campaigns.
4-Strategy design/implementation complexity: Phillip Morris had a difficulty once .PM perceived that there was a gap in
its Marlboro family when it found that switchers from its Red version were not all moving down to Marlboro Lights, but to
rival brands with tar/nicotine levels below Red, but above Lights. In 1991 it therefore introduced Medium Ja mid tar cigarette) targeting smokers who see Lights as unmanly and unmacho. The crucial feature was that the packaging retained
the familiar red appeal and therefore did not have the appearance of a 'light' brand.
6-Marketing strategy and Business performance
A-Strategy Selection and Performance:
Strategy research: In this part we examine the relationship between marketing strategy and performance but as we have
seen earlier whenever Marlboro
Strategic windows: Here we can say that Philip Morris seized the opportunity to develop customer needs rapidly in an industry dominated by other well established companies through the advertisement of women cigarettes after world war 1
and during the feminist era and then the advertisement of Marlboro and its image that has given it the position of the American dream and the last free man .
Strategy Diagnosis: When Phillip Morris tried to enter the market with Marlboro being advertised at women it had success only in the first year but then sales were not high and after the war the product faltered and needed to be taken off the market so you can see that Phillip Morris used this experience and choose the right time to introduce the Marlboro and given
it a position that no other company thought of giving it to its products.
B-Implementation Issues:
1-Linking planning and implementation:
2-Strategy integration:
B-Environmental Vulnerability:
targeted “decent, respectable ”women. “Has smoking any more to do with a woman’s morals than has the color of her
hair ?” A 1927 ad reads, “ women quickly develop discerning taste. That is why now Marlboros now ride in so many
limousines, attend so many bridge parties, and repose in the successors of tobacco trust led by R.J Reynolds hiked
cigarette prices leaving an opportunity for Phillip Morris to produce cigarettes with lower prices. so many handbags”.