Sample Term Paper
As we know that the four P’s of marketing is the back bone of any analysis, similarly the marketing analysis of Philip Morris is done keeping in mind the 4 P’s of marketing that is product, price, place, promotion.
Undoubtedly the most popular brand of Philip Morris is Marlboro. The tremendous success which Marlboro has able to achieved is through its brands association. It has been the best selling brand in the US and the financial record of the company shows that it accounts for almost 28% of the company’s $25 billion revenue and almost half of its operating profits. The success of Marlboro can be analyzed through the fact that since 1980 the cigarette industry is facing contraction of 1.5% – 2% per year in their unit sales. Even though the industry was facing such kind of massive turmoil Marlboro was able to secure a 3% growth that time also (Trachtenberg, 1987).
If we closely analyze the success factors of Marlboro we will find that apart from other factors Marlboro’s extraordinary marketing success is directly related with its 33 year old brand image. The illustration which is generally associated with Marlboro is the universally appealing cowboy image. This image has proved out to be vital in Marlboro’s success throughout these years. The company has worked on the brand ad they have realized that specially in the tobacco industry it’s the image of the product rather than the product difference which attracts the customers reason being smokers are tend to be hyper sensitive people (Trachtenberg, 1987).
Apart from that costumer usually does not only purchase the product, but they also have a tendency to associate themselves with that brand’s image. With Marlboro’s cowboy look it is quite evident that they are targeting younger segment of the market that can associate themselves with Marlboro. This image of Marlboro projects the elements of adventurism, freedom, and giving the impression of being in charge of one’s own destiny. The total worth of the Marlboro man image is estimated to be around $10 billion which is half of the company’s total market value. This is the factor why we see Philip Morris paying so much attention towards Marlboro and continuously growing the product byline extension, with the likes of Marlboro lights, Marlboro 100’s and many other products in the market using the same Marlboro name (Trachtenberg, 1987).
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