Tobacco Documents Online

Draft Speech for Hamish Maxwell, Marketing Meeting, 000624

Abstract

In this 1983 marketing speech, Philip Morris (PM) President Hamish Maxwell cites the importance of PM's efforts to maintain the presence of smoking in the movies to help preserve the social acceptability of tobacco use. Maxwell states:

"RECENTLY, ANTI-SMOKING GROUPS HAVE ALSO HAD SOME EARLY SUCCESSES AT ERODING THE SOCIAL ACCEPTABILITY OF SMOKING. SMOKING IS BEING POSITIONED AS AN UNFASHIONABLE, AS WELL AS UNHEALTHY, CUSTOM. WE MUST USE EVERY CREATIVE MEANS AT OUR DISPOSAL TO REVERSE THIS DESTRUCTIVE TREND. I DO FEEL HEARTENED AT THE INCREASING NUMBER OF OCCASIONS WHEN I GO TO A MOVIE AND SEE A PACK OF CIGARETTES IN THE HANDS OF THE LEADING LADY. THIS IS IN SHARP CONTRAST TO THE STATE OF AFFAIRS JUST A FEW YEARS AGO WHEN CIGARETTES RARELY SHOWED UP ON CAMERA. WE MUST CONTINUE TO EXPLOIT NEW OPPORTUNITIES TO GET CIGARETTES ON SCREEN AND INTO THE HANDS OF SMOKERS. THE PMI CORPORATE AFFAIRS DEPARTMENT IS HELPING..."

User-Contributed Notes

Fields

Quotes

THIS MORNING WILL BE DEVOTED TO AN IMPORTANT ASPECT OF OUR BUSINESS THAT DESERVES MORE ATTENTION THAN WE HAVE SOMETIMES GIVEN IT. REGARDLESS OF ALL OUR MARKETING TALENT AND EXPERTISE, THERE ARE EXTERNAL FORCES THAT HAVE A DISPROPORTIONATE, NEGATIVE INFLUENCE UPON OUR INDUSTRY. AMONG THE MOST DECISIVE ONES ARE: TAXATION, THE SMOKING-AND HEALTH CONTROVERSY, AND RESTRICTIONS ON ADVERTISING AND MARKETING. THERE ARE BELLWEATHER COUNTRIES WHICH SET THE PATTERN FOR RESTRICTIVE LEGISLATION THAT IS SUBSEQUENTLY ENACTED IN OTHER PLACES. IT IS, THEREFORE, PRUDENT FOR US TO HAVE AN UNDERSTANDING OF THE GLOBAL PICTURE -- TO KNOW WHAT HAPPENS ELSEWHERE -- TO KNOW WHAT CAN HAPPEN TO US -- AND TO KNOW WHAT WE NEED TO DO WHEN PROBLEMS ARISE.

...AS YOU WELL KNOW, HOSTILITY AGAINST THE CIGARETTE INDUSTRY CONTINUES TO ARISE FROM MANY QUARTERS. LAST YEAR ALONE, ON MARCH 15, 1982 THE GOVERNMENT OF MALAYSIA UNILATERALLY BANNED ALL CIGARETTE ADVERTISING ON TELEVISION AND RADIO. THE INDUSTRY WAS NOT INVITED TO. COMMENT BEFORE THE BAN WENT INT0 EFFECT. IN JUNE 1982 WEST GERMANY INCREASED FEDERAL EXCISE ON CIGARETTES BY 39% , RESULTING IN A SIGNIFICANT DECLINE IN UNIT SALES. FEDERAL AND STATE HEALTH MINISTERS HAVE ALSO PROPOSED A REVISED AND MUCH STRICTER VOLUNTARY ADVERTISING CODE. IN SAUDI ARABIA LAST YEAR THE GOVERNMENT PROHIBITED THE SALE OF ANY TOBACCO PRODUCTS WITH MORE THAN 15 MILLIGRAMS "TAR" AND ONE MILLIGRAM OF NICOTINE. MARLBORO WAS REFORMULATED SPECIFICALLY FOR THIS MARKET AT A SIGNIFICANT THESE MEASURES AND OTHERS LIKE THEM IN MANY OF OUR MARKETS DEMAND OUR ATTENTION. THEY STRIKE AT THE MAINSTAYS OF OUR BUSINESS-...

OURS IS NEITHER THE FIRST NOR THE ONLY INDUSTRY TO HAVE COME UNDER ATTACK. YOU CAN DRAW UP A LONG LIST OF MANY OTHERS: THE INFANT FORMULA CONTROVERSY, ALCOHOLIC BEVERAGES, PHARMACEUTICALS, AUTOMOBILES, INDUSTRIAL WASTE, AND COFFEE. IN THE LATE-1970'S THE ANTI-SMOKING CRUSADE WAS CENTERED PRIMARILY IN NORTH AMERICA, AUSTRALIA AND WESTERN EUROPE. THE TURNAROUND CAME IN 1979, AT THE FOURTH WORLD CONFERENCE ON SMOKING AND HEALTH HELD THAT YEAR IN STOCKHOLM UNDER THE PRINCIPAL SPONSORSHIP OF THE WORLD HEALTH ORGANIZATION. THE STOCKHOLM CONFERENCE PROVED TO BE A MILESTONE IN THE PUSH TO REDUCE CIGARETTE CONSUMPTION. THE CONFERENCE PROVIDED AN ASSEMBLY FOR ANTI-SMOKING ACTIVISTS AND REPRESENTATIVES OF ANTI-SMOKING CONSUMER GROUPS FROM AROUND THE WORLD. THE TARGET AUDIENCE AT THIS MEETING WAS HEALTH MINISTERS AND OTHER HEALTH PROFESSIONALS, 600 IN NUMBER, FROM DEVELOPED AND DEVELOPING COUNTRIES ALIKE. THE MESSAGE DELIVERED TO THEM WAS SIMPLE AND STRAIGHT FORWARD -- SMOKING IS THE MOST PREVENTIBLE CAUSE OF DISEASE AND MUST BE ERADICATED. NEVER BEFORE HAD THERE BEEN SUCH A GATHERING OF HEALTH PROFESSIONALS WHO WERE IN A POSITION TO DICTATE PUBLIC POLICY, AND THEY DID EXACTLY THAT. WITHIN ONE YEAR OF THE STOCKHOLM CONFERENCE VIRTUALLY ALL MIDDLE-EASTERN COUNTRIES HAD IMPOSED REGULATIONS REQUIRING WARNING LABELS ON PACKS. WITHIN THREE YEARS, THOSE SAME COUNTRIES HAD RESTRICTED OR BANNED TRADITIONAL FORMS OF CIGARETTE ADVERTISING. SIMILAR EFFORTS TO RESTRICT OUR MARKETING AND PRODUCT PROMOTIONS HAVE CROPPED UP AROUND THE WORLD WITH A HIGHLY COORDINATED DEGREE OF ORGANIZATION. IN THE FALL OF 1980, THE INTERNATIONAL UNION AGAINST CANCER SPONSORED A SERIES OF ANTI-SMOKING WORKSHOPS IN CHILE, BRAZIL AND URUGUAY. FORTUNATELY, A REPRESENTATIVE OF THE U.S. TOBACCO, INSTITUTE WAS ABLE TO ADDRESS THE GROUP AND REFUTE SOME OF THE ALLEGATIONS. BUT SHORT TERM REMEDIES LIKE THESE ARE NOT THE ANSWER TO OUR LONG-TERM PROBLEMS. WITH THIS AS BACKGROUND, IT IS UNDERSTANDABLE THAT I MUST PREPARE FOR THE REPERCUSSIONS FOLLOWING THE FIFTH WORLD CONFERENCE ON SMOKING AND HEALTH WHICH WILL TAKE PLACE IN WINNIPEG NEXT MONTH. WE CAN EXPECT NEW INITIATIVES IN LEGISLATION TO REDUCE CONSUMPTION AND ADVERTISING AND NEW PROPOSALS TO INCREASE EXCISE TAXES. BUT EXPERIENCE HAS SHOWN THAT WE CAN FIGHT BACK AND WE CAN DO SO EFFECTIVELY AMIDST THE MANY RECENT BATTLES THE TOBACCO INDUSTRY HAS HAD TO WAGE WITH PROPOSED ADVERTISING BANS, INCREASED EXCISE TAXES AND HEALTH CODES, WE HAVE HAD OUR SHARE OF VICTORIES. LAST YEAR, THE UNITED KINGDOM TOBACCO ADVISORY COUNCIL IN CONJUNCTION WITH A LOCAL PUBLIC RELATIONS FIRM LAUNCHED A CAMPAIGN CALLED: "TELL THE TAXMAN" WHICH LOBBYED AGAINST PROHIBITIVE EXCISE INCREASES. THE CAMPAIGN EMPHASIZED THE DISPROPORTIONATE TAX BURDEN PLACED ON SMOKERS AND RETAILERS OF TOBACCO PRODUCTS... THE STRATEGY INCLUDED THREE PARTS: ADVERTISEMENTS IN LOCAL AND NATIONAL PAPERS, A SERIES OF LOCAL PRESS CONFERENCES AND AN EFFORT TO COLLECT SIGNATURES PROTESTING THE TAX INCREASE. OVER 1.5 MILLION SIGNATURES WERE OBTAINED AND DELIVERED TO THE CHANCELLOR OF THE EXCHEQUER.

THE INDUSTRY'S EFFORTS WERE REWARDED WHEN THE BRITISH GOVERNMENT ANNOUNCED A SIGNIFICANTLY LOWER THAN EXPECTED EXCISE INCREASE. "TELL THE TAXMAN" WAS SUCCESSFUL IN THAT IT NOT ONLY ACHIEVED ITS PRIMARY OBJECTIVE OF DIMINISHING A TAX INCREASE BUT ALSO EFFECTIVELY DEMONSTATED THAT THE INDUSTRY CAN WORK CLOSELY TOGETHER WITH MEMBER COMPANY EMPLOYEES AND SALES REPRESENTATIVES AS WELL AS WITH LOCAL BUSINESS TO ACHIEVE POSITIVE RESULTS AND FOSTER A SOLID FOUNDATION FOR FUTURE INDUSTRY INITIATIVES. IT ALSO REINFORCES THE MORALE OF OUR PEOPLE. LATER THAT SAME YEAR THE TOBACCO INDUSTRY IN URUGUAY DEMONSTRATED HOW INDUSTRY-GOVERNMENT DELIBERATIONS CAN LEAD TO A SUCCESSFUL RESOLUTION WHEN IT ACTED AGAINST A PROPOSED BILL TO BAN CIGARETTE ADVERTISING. ABAL HERMANOS, WORXING THROUGH THE LOCAL CIGARETTE MANUFACTURERS' ASSOCIATION, MET THE STATE COUNCIL'S PUBLIC HEALTH COMMISSION AND, SUBSEQUENTLY, WITH THE HEALTH MINISTER IN ORDER TO DEFEND ITS RIGHT TO ADVERTISE. IN ADDITION, IT MADE PRESENTATIONS EXPLAINING THE DETRIMENTAL EFFECTS OF THE BILL TO THE MEDIA AND ADVERTISING AGENCIES. THIS LED TO THE ELIMINATION OF THE MOST ONEROUS SECTIONS OF THE PRSPOSED BILL.. AGAIN, IN 1982 IN [WESTERN] USTRALIA, A BILL TO BAN ALL FORMS OF CIGARETTE ADVERTISING AND PROMOTION WAS INTRODUCED IN THE LOWER HOUSE.. THE BILL WAS FIRMLY SUPPORTED BY A VARIETY OF AUSTRALIAN MEDICAL ASSOCIATIONS AND OTHER ANTI-SMOKING GROUPS. THE TOBACCO INSTITUTE OF AUSTRALIA IMMEDIATELY RESPONDED, CONTACTING GOVERNMENT OFFICIALS AND ALERTING NATIONAL TRADE ASSOCIATIONS IN MEDIA ADVERTISING AND PUBLISHING, AS WELL AS SPORTING ORGANIZATIONS. LETTERS TO THE EDITOR BEGAN TO FAVOR THE INDUSTRY VIEWPOINT, INDICATING THAT A PROPERLY INFORMED PUBLIC WAS WILLING TO FIGHT FOR WHAT WAS AT STAKE. ALTHOUGH IT WAS A CLOSE CALL, THE INDUSTRY WAS SUCCESSFUL IN DEFEATING THE BILL. BUT THE STORY DOES NOT END HERE. RIGHT NOW THE INDUSTRY HAS HAD TO MOUNT A MASSIVE LOBBY EFFORT SUPPORTED BY POLITICIANS, UNIONS, SPORTING ORGANIZATIONS AND MEDIA INTERESTS TO DEFEAT THE SAME BILL THAT HAS OUR INDUSTRY IS CLEAR -- WE CANNOT LET OUR GUARD DOWN. WE MUST CONTINUE TO BE VIGILANT. RECENTLY, ANTI-SMOKING GROUPS HAVE ALSO HAD SOME EARLY SUCCESSES AT ERODING THE SOCIAL ACCEPTABILITY OF SMOKING. SMOKING IS BEING POSITIONED AS AN UNFASHIONABLE, AS WELL AS UNHEALTHY, CUSTOM. WE MUST USE EVERY CREATIVE MEANS AT OUR DISPOSAL TO REVERSE THIS DESTRUCTIVE TREND. I DO FEEL HEARTENED AT THE INCREASING NUMBER OF OCCASIONS WHEN I GO TO: A MOVIE ANDSEE A PACK OF CIGARETTES IN THE HANDS OF THE LEADING LADY. THIS IS IN SHARP CONTRAST TO THE STATE OF AFFAIRS JUST A FEW YEARS AGO WHEN CIGARETTES RARELY SHOWED UP ON CAMERA. WE MUST CONTINUE TO EXPLOIT NEW OPPORTUNITIES TO GET CIGARETTES ON SCREEN AND INTO THE HANDS OF SMOKERS. THE PMI CORPORATE AFFAIRS DEPARTMENT IS HELPING. THE DEPARTMENT IS WORKING WITH DR. SHERWIN FEINHANDLER FROM HARVARD UNIVERSITY AND, MICHAEL DOWLING OF OGILVY AND MATHER TO DEVELOP AN INTERNATIONAL APPROACH TO THE PROBLEM AND ATTRACT NEW ALLIES, IN MUCH THE SAME WAY THAT WE CARVE OUT A MARKET SEGMENT FOR A NEW PRODUCT. WE MUST MUST SEIZE THE INITIATIVE AND MEET PROBLEMS HEAD ON INSTEAD OF WAITING FOR GROWING DIFFICULTIES TO ENGULF US... IT IS UP TO US TO EXPLOIT EVERY OPPORTUNITY. AWARENESS AND CREATIVITY ARE THE KEY COMPONENTS OF THE STRATEGIES EACH OF YOU MUST CARRY OUT. TO PUT IT DIRECTLY, NOW MORE THAN EVER WE NEED YOUR ACTIVE-INVOLVEMENT TO HELP US REACH OUT TO THESE NEW CONSTITUENCIES. THEY INCLUDE THE MEDIA PROPRIETORS, ECONOMIC DEVELOPMENT AND PLANNING OFFICERS, SPORTS ASSOCIATIONS, AND OTHERS...

PHILIP MORRIS COMMISSIONED PROFESSOR MCINERNEY FROM THE UNIVERSITY OF REDDING IN THE UNITED KINGDOM TO PUBLISH A PAPER ON THE ROLE OF CASH CROPS. WE MUST CONTINUE TO BUILD UP IN THE PROFESSIONAL, LITERATURE A RESERVOIR OF CREDIBLE ARTICLES LIKE HIS WHICH THE INDUSTRY CAN CITE IN DEFENSE OF TOBACCO AS A MAJOR CONTRIBUTOR TO CASH-CROP ECONOMIES...

... WE ARE AN INDUSTRY UNDER FIRE. AND WE MUST DO A BETTER JOB OF INFLUENCING THE DECISION MAKERS WHO FAN THAT FIRE. WE CAN DO THIS DIRECTLY OR INDIRECTLY. WE MUST BE CREATIVE AND INGENIOUS IN THE PROCESS. THIS IS A NEW JOB FOR ALL OF US BUT ONE TO WHICH WE MUST APPLY OURSELVES WITH THE SAME ENERGY AND ENTHUSIASM WE APPLY TO OFFERING A NEW BRAND. WE CAN DIVERT THE DESTRUCTIVE TREND WHICH HAS, GATHERED INCREASING SPEED IN THE PAST FEW YEARS...

Company

Philip Morris

Author

Maxwell, Hamish (PM President c.1984)

Took over at time of Cippolone. Cleaned house. Carried company into a strong defensive position.

Region

United States

Malaysia

West Germany

Saudi Arabia

Australia

Sweden

chile

Brazil (Tobacco-growing country in South America)

After 1980, there was a tremendous growth in imports of tobacco to the U.S. from Brazil; American tobacco companies had improved Brazilian tobacco to import to the U.S.; because of a lack of price supports, Brazilian tobacco was cheaper (L. White, Merchants 1988).

Uruguay

Canada

United Kingdom

Named Organization

American European Community Assn

Cigarette Mfg Assn Uruguay

Food and Agriculture Org (FAO)

Harvard University

NY Society for Intl Affairs

Ogilvy Mather

Pacific Democrat Union

State Council Public Health Commission U

TI, Tobacco Institute

Tobacco Institute of Australia

University of Reading

Who, World Health Org

5th World Conference on Smoking + Health

Named Person

Dowling, Anne T. (Director, Corporate Contributions, PM (1989-93))

Feinhandler, S.

Freeman, O.

Hermanos, A.

Mcinerney

Morse, D.

Snyder, R.

Walter, I.

Xxdaniel

Type

SPCH, SPEECH, PRESENTATION

Litigation

Stmn/Produced

Subject

Corporate strategy

corporate intelligence

legislation

media advertising