The Marlboro Story

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Case Details:

Case Code : MKTG117
Case Length : 17 Pages
Period : 1950 - 2005
Pub Date : 2006
Teaching Note :Not Available
Organization : Philip Morris Inc.
Industry : Tobacco
Countries : USA

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Discovering the Marlboro Man

When Marlboro was launched in the US in 1902, it was targeted at women. The brand 'Marlboro'had apparently been named after a street called Marlborough in London where the company had a factory. In 1924, with a view to strengthening the brand, Philip Morris started advertising Marlboro with the slogan 'Mild as May.'...

The 'Marlboro Country'Campaign

During the 1960s, Philip Morris started the 'Marlboro Country'campaign. These ads appeared frequently in print and TV commercials.

In these ads, the Marlboro man invited consumers to Marlboro country for a free and unstressed life.

The slogans for these ads included "Settle Back. You get a lot to like here in Marlboro Country," "Come to where the flavor is.

Come to Marlboro Country," etc. (Refer Exhibit III for a picture of Marlboro Country advertisement)...

The Master Settlement Agreement and After

In 1983, Rose Cipollone (Cipollone), who was suffering from lung cancer, filed a law suit against the tobacco industry alleging that cigarette smoking was responsible for her poor state of health. During the trial, the jury was presented with a series of industry documents which were, in fact, reports of research conducted during the 1970s by some tobacco companies (including Philip Morris) regarding the ill effects and addictive nature of cigarette smoking...

More than a Tobacco Company

In 1999, Philip Morris admitted that smoking is addictive and that it creates health risks among consumers...

Increasing Retail Presence

Despite the severe restrictions, the US Federal Trade Commission (FTC) found that the advertising expenditure of the tobacco companies increased to $ 8.24 billion in 1999, a 22.3 percent increase when compared to $6.73 billion spent in 1998. Post MSA, the only medium available to tobacco companies for advertisements is the print medium...

Building Customer Loyalty

By 2001, Philip Morris began laying emphasis on relationship marketing. For Philip Morris, building customer loyalty now became the new mantra for ensuring the success of the hugely popular Marlboro. The company held special parties to which only customers of Philip Morris products were allowed...

Excerpts Contd...>>