N/A, Presumed corporate author, Philip Morris; Found in the area of; Reuter, Barbara
This Philip Morris (PM) marketing strategy document carries some insights into how PM/Altria views its cigarette markets. For example, in discussing the Benson and Hedges (B&H) brand, it observes that "[relatively affluent, higher eduated smokers] have lower start rates and are quitting at faster rates than smokers with blue collar occupations," and, based on this information (which presaged the demise of the brand), PM planned to target future promotional efforts for Benson and Hedges cigarettes at younger adults, blacks and hispanics.
PM/Altria also notes that a decline in the number of young smokers could affect future sales, saying
"The principal risk facing Marlboro during the plan period is the projected decline in the number of young smokers. From a total of 28 million now, the 18 to 24 age category is forecasted to decrease to approximately 125 million in 1991. Start rates for young adults are expected to remain relatively stable, but at a much lower level than ten years ago...These trends make it important that Marlboro continues building share among young smokers..."
PM/Altria also admits in this document that (rather than discouraging youth smoking) it actually depends on peer pressure to sell its brands:
"...Long test markets are especially necessary for image products targeted toward young smokers where word of mouth (peer exposure) remains an important method to generate brand recognition and unit volume growth."