Despite the extensive use of discounts and other marketing measures, the share of the American market Marlboro tobacco falls. Competitors, particularly owners of the brands Newport, Camel and Kool, quickly occupy the space vacancy. For decades, the success of Marlboro cigarettes has been the major source of profit for the corporation Philip Morris (on Monday it was renamed the Altria Group). Today, about 38% of cigarettes sold in the United States are brand Marlboro, but last year the share of these products decreased. Problems brand leadership is seriously disturbed by Altria and complicate the lives of the general director Louis Camilleri Corporation, which took the post in April. Starting June c Corporation shares fell by 34%, and analysts predict a further slowdown in profits.
Price war on the tobacco market of the United States is growing, and Marlboro is having difficulties, even though measures such as discounts in the amount of $ 7.5 per unit or sale of the three packs for the price of two.
Long time the leadership Philip Morris focused on the legal sphere and the establishment of their own image. Now the main concern becomes Altria increase sales and profits in the USA tobacco unit. That was the purpose of the production of new varieties of cigarettes, Marlboro Blend No. 27, scheduled for April. "This decision shows that the Marlboro brand is losing force," - says Bonnie Herzog, an analyst with Salomon Smith Barney.
However, the leaders of corporations argue that the old brand is as strong as ever. They said that the difficulties became widespread popularity precisely Marlboro - common brands are more vulnerable in a general weakening of the economy. In addition, it is argued, Marlboro cigarettes are more often the targets of forgery than competing products.
However, experts believe that the reason is not only that. In order to maintain a successful business suppliers of goods demand should continuously update the packaging, advertising techniques and products themselves. Widely known brands actively using such tactics - enough to remember the many variations on a theme Pepsi - Diet Pepsi, Caffeine Free Pepsi, Pepsi Twist, Wild Cherry Pepsi, etc.
Manufacturers Marlboro also followed this principle, but less aggressively than their competitors. R.J. Corp. Reynolds Tobacco Holdings, which occupies 2 - first place in the American tobacco market, in recent years has produced a series of new varieties of its Camel cigarettes, and launching the use of new types of packaging, in particular the original plastic "flask".
Meanwhile, Marlboro, as in 1976, remains the red-and-white packaging, which became a symbol of America and one of the most recognizable brands in the world. Today, the image of many already tired. "Philip Morris lacked innovation - argues Herzog. - Registration packages may not change for a long time, and this created a danger for Marlboro. fact, consumers like to absorb new products. advent of a new product line Marlboro - step in the right direction, but this is likely , will not be enough. " In the arsenal of Altria, it is true, there are other means, such as cigarettes with a reduced toxicity.
In due time, Philip Morris agreed to shift their costs of resolving lawsuits consumers on the shoulders of consumers. But higher prices caused the fall in demand for Marlboro cigarettes and contributed to the success of the many smaller competitors. Philip Morris has gone back on their word, starting to lower prices for its main competitors and followed. But this in turn damaged the image of high-quality cigarettes.
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