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Market Project
Market Project
High degree of standardization with care fully selected adaptations to local preferences
Positioned world wide as a high quality product in the premium segment
2008 Launch of the new marbolo brand Architecture to broaden the target market
Brand Architecture
Packaging upgrades (Marlboro red filter plus slide pack) and many line extensions for individual
markets
Quality improvements
Appealing and sophisticated design-promotional function of packaging
Product Innovations
Filter plus technology
Marlboro intense (shorter,rich-flavored cigarette)
New menthol products (crisp,fresh and ice mint, mainly for the Asianan market) and kretek or
clover cigarettes
Promotion:-
Predominantly standardized with some local adaptations , strict ethical code
Shift from traditional channels to alternatives ones due to retrictions on tobacco advertising
Use of global media channels:internet
Sponsonship of global events:Formula 1 Ferrari team, Ducati motor racing team
“Switch-selling” and “buy one , get one for free” activities performed by local sale force
Online promotion: discounts,coupons,birthday gifts, concert tickets, competition with prizes for
registered members
Marlbolo club: uniting smokers who love Marlboro cigettes, maintain brand loyalty
Price:-
Highly adapted , due to different taxation , income levels and competitive situations , positioned
as a premimium brand in the upper price segments across all markets
However, affordable pricing strategy to attract smokers
“Sell-low strategy” High disparities (6$ in US verses 79 cents in Senegal for Mrlbro red )
critique
Due to large market share , Marlboro can “set” prices of the industry (1993 worldwide price-cut
to protect market share)
Place:-
Highly adapted to local conditions due to differently restricted access to distribution channels
across markets
Example:U.S. –supermarkets, convenience stores, gas stations , discount stores verses Austria –
only in tobacco shops
Common characteristics : maximum distribution coverage and top shelf space in emphasize
brand superiority
Effective sales force , takes advantage of large market shares , builds strong relationships with
retailers
SWOT Analysis:-
STRENGTHS :-
Available in seven variants
Wide distribution network of Godfrey Philips
Strong compaign in terms of ‘Marlboro Man’ also well-known brand
Strong Brand name and top of the mind recall
Association and sponsorship of various events
Good marketing through print ads
Quality product
Well known
Strong man Power and employees
WEAKNESSES:-
Weak position in certain markets and segments (e.g. menthol cigarretes)
Health destroying products
Competing with its own brands
Opportunities:-
Large tobacco industry in India resulting in huge growth opportunity • Social media marketing as
a replacement for advertisement • Consumers already know the brand • Large natural
resources of tobacco in India • Heavy smokers will not quit smoking
Threats:-
Lot of competitors with similar quality and price. • Growing public concern about increasing use
of tobacco • Government regulation and increased taxationats:-
Brand positioning:-
Targeting Financially attractive groups: Young Males • Creating Brand Remembrance through
“Marlboro Man” – even for non-smokers • Marlboro forms part of POP CULTURE – Product
Placement in movies, known for its “manlyhood” • Targeting Big Cities (Billboards) • Targeting
Big Events (Sponsorship – Formula 1) • Brand Personality: Confident, positive, succesful,
achiever, dynamic, optimistic
Differentiation:-
• Cork-looking filters • Filter Plus Technology: Revolutionary flavour enhancering • Aggresive
Distribution and Merchandising Strategy: Clever BRANDING Strategy • Acquiring the MARLBORO
Lifestyle • Good Placement for product • Adoption of the brand by the consumer (if it is not
Marlboro, they’d rather not smoke)
Famous for its long association with motorsport events Marlboro has come a long way to
emerge as a popular Cigarettes brand globally. The brand was founded by Philip Morris in 1924
initially meant for women. Over the period of time, it has been repositioned as a masculine
brand in 1950 which helped the brand in increasing its sales
Companies use segmentation strategies to know about the different segments and their
characteristics so that they can use the targeting strategies accordingly. Marlboro uses a mix of
demographic, geographic and psychographic segmentation strategy and variables such as age,
income, family background, native place, working conditions and many other for it.
It uses differentiated targeting strategy so as to devise strategies for acquiring the potential
customers of different segments.
Marlboro uses controversial ads and product class positioning strategies to create a long lasting
image through their ads and unique packaging highlighting the ill effects of smoking.
Competitive advantage in the Marketing
strategy of Marlboro
Brand Image: Maintaining Number one positions among the peer group in the industry since
1972 itself says the visibility and acceptance of the brand among the consumers globally.
Marlboro 2.0 has been introduced recently featuring a more modern look of the iconic brand
available in 100 countries.
Product portfolio: Marlboro has a comprehensive range of products such as Heatsticks, Snus and
in international markets, it has three product categories namely Flavor line, Fresh line and Gold
line marketed by Philip Morris International.
The market in which Marlboro operates faces various bottlenecks in terms of regulatory
guidelines, labour cost, political instability, rising prices of the resources, currency fluctuations
etc.
In 2013 it has introduced Marlboro 2.o redesigning its packets to give it a modern look.