Buried inside this mostly-dull 195-page Philip Morris (PM) marketing report is some important information that should be noted by public health groups and authorities:
In noting the decline of smoking rates in the U.S., PM lists the major factors that have proven particularly effective at decreasing the demand for cigarettes: "the declining social acceptability of smoking, increased smoking restrictions, particularly in the workplace [and] rising excise taxes and prices..." Confirming that higher cigarette prices effectively decrease smoking rates, the report also says that lower-priced (discount) cigarettes help "keep some consumers in the marketplace" who otherwise would have quit.
The document also describes PM's opposition to fire-safe cigarettes:
"Anti-smoking groups endorse the 'self-extinguishing', or 'Fire Safe', cigarette as a way to...cause all cigarettes to look and taste the same. Such mandates could cripple the competitive advantage of leading brands and intensify the erosion of the overall cigarette market."
PM describes its strategy to fight fire-safe cigarette legislation on Page 150, Bates No. 2051363574:
"ISSUE: Efforts by anti-smoking groups to mandate a 'fire safe' cigarette could destroy the competitiveness of leading brands and increase the cost of manufacturing cigarettes. STRATEGY: ...PM-USA will expand coalitions among the fire prevention community and public policy makers to diffuse support for 'fire-safe' legislation at the state and federal level..."
PM also considered nicotine-replacement therapy aids (like the patch and gum) to be direct competitors. To fight the incursion of these products into the nicotine market, PM planned to develop a "proprietary alternative smoking product" called "Beta," which would "be marketed in direct response to such products as nicotine-releasing skin patches and chewing gum." [Page 37, Bates No. 2051363461]
The report also reveals the extreme importance of smoker databases to cigarette companies' continued ability to promote smoking--something public health authorities have largely ignored. As legal restrictions tighten on advertising and promotions, cigarette companies increasingly turn to huge databases of information that they gather on smokers to continue actively marketing cigarettes to large numbers of people:
"The marketing environment is likely to become more restrictive during the plan period, including additional restrictions on outdoor and event sponsorship. This necessitates creating alternative avenues of reaching the consumer. Developing a smoker name database will enable us to effectively reach a large number of smokers..."
Smoker databases are of such importance as promotional tools that PM girded itself to deflect any legislation that might restrict the company's ability to gather personal information on smokers:
"As the database becomes more critical to our marketing plans, it becomes essential that we protect it from legislated restrictions..." [Page 107, Bates No. 2051363531]
The document also makes it clear that PM fights restrictions on event sponsorship at least in part because these events provide the company with venues in whcih they can gather personal data on smokers (the company refers to gathering smoker information as "name generation.") The says PM should "Increase [the company's] presence at major events and use as source for name generation."
Also of interest to health authorities should be the information on Page 145 (Bates No. 2051363569) that describes PM's strategy to divert health department funds away from tobacco control and towards "support[ing] other health programs (pre-natal care, half-way houses, etc.)" (areas which don't threaten cigarette sales):
"Long Term Goals
• Counter ASSIST Program in 17 states: - Work with grass roots organizations to divert state health department funds, equivalent to the amount of ASSIST funding, to support other health programs (pre-natal care, half-way houses, etc.).
(Note: ASSIST was a widespread public health effort in the early to mid 1990's in the U.S. to reduce smoking rates in 19 states)
PM's plans also included efforts to eliminate public health restrictions on tobacco that were already in place:
"Rollback Program:
- Particularly in localities, introduce legislation to reinstate marketing activities, such as sampling and couponing, that have been banned or restricted.
- Pass state preemption."
The report also refers to African Americans as an "important volume opportunity" while simultaneously describing how to fight the idea that the industry targets minorities in their promotions,
This and much more information within this document shows that far beyond simply making and selling cigarettes, Philip Morris actively worked on a number of fronts to fight efforts to reduce the many public health threats the company poses.