Philip Morris Internation Marketing Romania

Topics: Altria Group, Marlboro, Tobacco Pages: 19 (5838 words) Published: December 19, 2011




3.1. Differentiation strategy
3.2.Product strategies applied by multinational companies on the tobacco market from Romania 3.3. Philip Morris product and price strategy


Philip Morris International


Philip Morris International (PMI) is an international cigarette and tobacco company, with products sold in over 160 countries with 15.6% of the international cigarette market outside the United States. Because its products are considered addictive, the company's operations (and its competitors) are highly controversial and are increasingly the subject of litigation and restrictive legislation from governments concerned about the health impacts of its products. Until a spin-off in March 2008, Philip Morris International was an operating company of Altria Group. Altria explained the spin-off, arguing PMI would have more "freedom" outside the constraints of US corporate ownership in terms of potential litigation and legislative restrictions to "pursue sales growth in emerging markets." The shareholders in Altria at the time were given shares in PMI, which was listed on the London Stock Exchange and other markets. Philip Morris faces, basically, two problems: first, cigarettes are today a business with no future. Many cigarette companies are seeking solutions to separate the image of cigarette operations from the other operations carried out, because it is considered that the tobacco industry will decline on a long term. Thus, Philip Morris brand change is a necessity. Secondly, legislation increasingly restrictive with regard to the promotion of cigarettes practiced at this moment on many national markets is another reason for Philip Morris to build a new brand and replace the existing brand, which is associated worldwide with the Marlboro. Philip Morris Romania is affiliated to Philip Morris International. For the first time, Philip Morris was presented on Romanian market in 1993 through Philip Morris Service. In 1997, Philip Morris Inc. approves the project „Greenfield” from Romania. This project involved the implementation of an investment of around 125 million USD, constructed and arranged surface being of 15,6 hectares.

Philip Morris was born in Whitechapel in 1835, the son of a recent immigrant from Germany who had taken the name Bernard Morris. In 1847, the family opened a shop in London. The first cigarettes that Phillip Morris made were in 1854, and in 1902, Philip Morris & Co., Ltd. was incorporated in New York City. The company made its first cigarettes in Richmond in 1929, using an existing factory the company purchased. In 1933, this factory was racially integrated more than thirty years before the law required it. In 1938, the company offered preferred stock to ordinary buyers. In 1954, Philip Morris began advertising Marlboros specifically to men. The cigarettes had "new cork-tip filters housed in a flip-top box with a red roof design." In 1970, Philip Morris made the first of several acquisitions with the purchase of Miller Brewing Company. In 1985, Philip Morris Cos. became a holding company and the parent of Philip Morris Inc. and bought General Foods. The acquisition of Kraft Foods came in 1988, after which Kraft and General Foods became Kraft General Foods. In 2002, Miller Brewing and South African Breweries became SABMiller, the second-largest maker of beer in the world, though Philip Morris kept an interest in the merged company. In 2003, Philip Morris Cos. changed its name to Altria Group Inc. In the fall of 2003, Philip Morris USA moved its headquarters from New York City to Richmond, Virginia. Philip Morris USA split from Philip Morris International in 2004. This has caused a drop in the needed cigarette production due to no need for export product. Philip Morris shut down its Concord,...
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