1993-1997 Philip Morris U.S.A. R&D Strategic Plan

Product Design

1993-1997 Philip Morris U.S.A. R&D Strategic Plan

Date: 19920302/R
Length: 117 pages
2021522925-3041
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Abstract

Presents Philip Morris Companies Inc. [PM] five-year Research and Development [R&D] Strategic Plan for the Period 1993-1997. Lists PM U.S.A. mission statement, financial plan and strategic goals. Details Philip Morris U.S.A. and Philip Morris Europe's R&D programs and publications. Overviews the U.S. cigarette industry by volume and market share and indicates competitive intelligence reveals R.J. Reynolds, Brown & Williamson and Japan Tobacco "have adequate resources to compete with Philip Morris USA". Lists a series of U.S. and foreign patents and inventions by PM and it's competitors, and discusses the political and social ramifications facing the tobacco industry. Lists the immediate national and international strategic goals of PM, how they will be implemented and budget allocations for each project.

User-Contributed Notes

Fields

Rank: 1
Recipient: Carchman, Richard Allan, Ph.D. (PM Scientific Affairs, Research & Development VP)
Philip Morris Director and worked in Scientific Affairs. Reported to Cathy ellis.
Hypothesis: Behavior Targeting
Cigarette's effect of enhancing/mitigating specific behaviors; Design changes over time
Changes in cigarette design over the past half century.; Elasticity and Product Control; FTC machine testing and ratings
Design changes to achieve altered FTC smoke machine tar and nicotine ratings, with or without measured changes in human intake.; Introduction of new/unconventional products
Research and development of novel nicotine delivery devices and experimental tobacco designs.; Low-yield cigarettes
Modification of low yield products to assure that adequate levels of nicotine delivery are maintained, and effects of yield changes on toxicity and dependence.; Mainstream constituent yields
Modification of selected mainstream smoke constituents in response to health concerns.; Measuring human intake
Development of scientifically valid procedures for measuring tar and nicotine levels that more accurately reflect human intake.; Nicotine transport, transfer, and uptake
Design changes which alter nicotine delivery or effect how the product causes and maintains dependence, including transfer of nicotine from tobacco to smoke, and uptake into the body.; Perceptions of ETS
Design changes to reduce perception of environmental tobacco smoke among smokers and nonsmokers in response to public concerns about the dangers of ETS.; Product design targets (women/minorities)
Design changes targeting specific demographic segments such as women or minorities (slims/menthols/etc).; Sidestream constituent yields
Modification of selected sidestream smoke constituents in response to health concerns.; Smoke constituent testing
Development of methods for measurement of gas and particulate yields in mainstream and sidestream smoke.; Use of additives
Modification of tobacco products through use of additives and measuring effects on dependence, behavior, and toxicity.; Use of filters, paper, and ventilation
Modification of tobacco products through use of filters, paper, and ventilation, and measuring effects on dependence, behavior, and toxicity.; Use of tobacco processing/ blends
Modification of tobacco products through changes in tobacco processing and use of blends, and measuring effects on dependence, behavior, and toxicity.; Sensory targeting
Targeting of smokers through changes in sensory characteristics
Keyword: Attribute perception ratings; Brand differences; Delivery modification; Environmental Tobacco Smoke ETS; Flavor (Taste); Human testing; Ignition propensity; Impact (Throat grab); Low delivery (Reduced delivery); Market (B&W marketing term); Mildness (Attribute measure); Nicotine delivery (Smoke nicotine or nicotine yield); Patents; Per puff delivery
Per puff tar, per puff nicotine, and per puff CO; Perception of draw; Puff count; Secondhand Smoke (Sidestream smoke, SS); Smoke pH
Acidity/ baseness, scale from 0-14, 7 neutral; Tar/Nicotine ratio (Nicotine/Tar Ratio or T/N ratio)
Additive: Chocolate liquor; Cocoa (Chocolate) (Cocoa Shells, Extract, Distillate and Powder)
Composed of nearly 400 identified chemical substances as of 1967; glycerin; Licorice (Licorice Fluid Extract, Powder, and Root); Menthol; Propylene glycol
Smoke Constituent: Carbon dioxide; Carbon monoxide; Nicotine
Design Component: Adhesive; Blend density (Rod density); Carbonate filter; Carbonized filter; Cellulose acetate filter (CA filter, Conventional filter); Denicotinized tobacco; DIET (Dry ice expanded tobacco)
PM @expanded_tobacco especially during 1980's and early 1990's; Filter tow; Flax paper (Flax wrapper); New expanded tobacco (NET); Nicotine content (Tobacco nicotine content)
Total nicotine in the unburnt tobacco rod; Pressure drop (PD, Resistance to draw (RTD), Flow rate or Draft); RCB (Reconstituted cast blend)
Early PM @reconstituted_tobacco; Reconstituted leaf (RL)
PM @reconstituted_tobacco, c. 1970s-1980s; Woodpulp wrapper; Banded paper; Plug wrap (Plugwrap)
Operation/Project: Project ART (Denicotinized cigarette); Project Tomorrow (Fire Safe Cigarette); Project Grain; Project Table
Named Organization: Advanced Tobacco Products; Advantus Pharmaceuticals; ALZA; American Cancer Society; American Chemical Society; American Cyanamid; American Heart Association (Voluntary health organization that focuses on cardiac health)
Voluntary health organization that focuses on cardiac health and stroke. AHA occasionally teams with tobacco retailers to engage in promotions/fund-raisers (see http://www.smokefree.net/doc-alert/messages/247136.html and http://www.rawbw.com/~jpk/stand/Pictures.html).; American Lung Association
Voluntary health organization concerned with fighting lung disease, promoting lung health and advocating clean air, indoors and out.; American Medical Association (physicians group)
Professional trade group representing American physicians.; American Tobacco Company; Archer; Bandttabak Malchin; Block Drug; Bristol Myers; *British American Tobacco Company Limited BAT (See British-American Tobacco Co.)
Defense; Budd Larner; Brown & Williamson Tobacco Corp.
Brown & Williamson Tobacco Corp.; Center for Tobacco Products; CIBA-GEIGY Corporation (Parent co. of Habitrol mfg)
The parent company of Basel Pharmaceuticals in Summit, NJ. the distributor of Habitrol (TM) nicotine transdermal system ("the patch").; Coresta (Industry-affiliated Int'l scientific/research group)
An international organization whose objective is "to improve cooperation in scientific research and tobacco." Consists of 186 member companies/institute from 54 countries, including tobacco, paper and filter companies, and universities engaged in tobacco research.; Courtalds; Cygnus Therapeutics; Dancho IV Panel; Demauduit; Dexter; Diet Safety Commission; Duke University; Dynagen; Eastman Kodak Co. (Kodak) (Cigarette filter mfg from 1950s to 1994.)
Manufacturers of quality control equipment for cigarette packaging; Ecusta; EEC (European Economic Community)
European Economic Community; Elan; *EPA ( use United States Environmental Protection Agency); European Patent Office; Flavor Specifications Group; FTR, Fabriques de Tabac Reunies, (PM R&D facility in Neuchatel, Switzerland)
Fabriques de Tabac Reunies, Philip Morris Research and Development facility in Nuechatel, Switzerland. Many of the documents generated by this facility are in German or French language.; Gallaher Limited/Gallaher Tobacco Limited (Irish tobacco co controlled by American Brands)
Sells Benson & Hedges, Silk Cured and Berkeley cigarettes in the U.K. in 1991; Grey Advertising (Ad agency for KOOL cigarettes 3/94 to present)
Ad agency for B&W's Kool cigarettes from March 1994 to present; HKCP Panel; HKS; Hoechst Celanese; Hoffman LaRoche; Imperial Tobacco Co. (Determined optimum nicotine levels for cigarettes)
Did testing pre-1972? of U.K. smokers and concluded that the optimum nicotine delivery for the cigarette, and that stepwise reductions in delivery caused progressive rejection by consumers (see Project Wheat); INBIFO, Intitut Fur Biologische Forschung (Philip Morris' secret biological research lab in Europe)
"INBIFO" stands for Institut Fur Biologische Forschung, or Institute for Biological Research. It is located in Germany. Philip Morris acquired Inbifo on June 30, 1971. Its stated mission was "quantitative biological product evaluation" by using "comprehensive toxicological and physiological testing. Major activities are listed as: product evaluation and modifications, product ingredients and ETS-related technical knowledge and smoke components. Inhalation toxicology was a key feature of Inbifo. (Derived from Bates No. 2505235055/5088); ISO (International Standards Organization)
International Organization for Standardization - AN international federation of national bodies covering stadardization in all fields except electrical and electronic engineering standards. The largest non-governmental system of industrial collaboration on standards and technical regulations.; Jacobs Suchard Tobler; Janssen; Japan Tobacco Inc. (Japanese gov't -owned tobacco company)
Japanese government -owned tobacco company, until 1994.; Johnson & Johnson; KABI Pharmacia Inc. (Manufacturer of nicotine nasal spray in 1994)
Manufacturer of nicotine nasal spray in 1994; Kimberly-Clark Corp. (Specializes in the tobacco reconstitution process)
Specializes in the tobacco reconstitution process and in helping the tobacco companies control their nicotine; Klemtner Advertising; LecTec; Lederle Labs; Lewis Grace; Liggett & Myers Inc. (Pioneer in the generic cigarette business)
Cigarette manufacturer; Pioneer in the generic cigarette business; L&M is the manufacturer of Chesterfield, Decade, Dorado, Duke of Durham in 1958, Eagle, Eve, L&M, Lark, Pyramid and Stride cigarettes; Lorillard Inc. (American cigarette manufacturer)
American cigarette manufacturer; Manchester Tobacco; Marion Merrell Dow Inc. (Markets Nicoderm brand nicotine patch)
Markets Nicoderm brand nicotine patch; Ministry of Finance; MTI; Natl Inst of Standards & Technology; NCAA; Occupational Safety and Health Administration (Held hearings in 1994 to ban smoking in workplaces)
OSHA opened hearings in September 1994 on a proposal that amounts to a virtual ban on smoking in every workplace in the nation; Operations Task Force; Operations Tehcnology Assessment Commission; Packaging Engineering Group; Packaging Evaluation Commission; PH Glatfelter; Philip Morris Europe SA; Philip Morris Incorporated (Philip Morris U.S.A.) (a wholly-owned subsidiary of Philip Morris Co., Inc.)
A wholly-owned subsidiary of Philip Morris Co., Inc.; Philip Morris International Inc. (A subsidiary of Philip Morris Cos (1994))
A wholly-owned subsidiary of Philip Morris Companies in 1994; Planning Commision; Planning Strategy Task Force; Product Opinion Lab; R.J. Reynolds Tobacco Co. (Cigarette manufacturer (Camel, Winston, Doral))
Cigarette manufacturer (Camel, Winston, Doral); Reemstma (German cigarette group)
A privately-owned German cigarette group in 1991. One of the biggest international tobacco marketers in 1994.; Roper Organization (Consumer Research/Public Relations Org.)
Interested in finding out what drives consumer behavior; surveys consumers on their prime areas of concern; assists corporations with reputation-building and public image based on its findings.; Rothmans International; Salthouse Torre Norton; Schoeller Hoechst; Shook, Hardy & Bacon (Tobacco Industry law firm)
Tobacco Industry law firm based in Kansas City, KS.; Sudler Hennessey; Sunshine JR Stores; Supply Chain Group; Tabak AS Kutna Hora CSFR; U.S. Supreme Court; United States Congress; United States Food and Drug Administration; United States Tobacco Company (Producers of Copenhagen/Skoal chewing tobacco)
Producers of chewing tobacco; University of Minnesota; USA Today; Vezifa; Viscofil Consolidated; Wake Forest University; Wall Street Journal; Warner Lambert; World Intelectual Property Organization; Celanese Corporation (Sold materials for cigarette filters)
sold materials for cigarette filters
Brand: APOLLO SOYUZ; Barclay; BATTISTONI; Belair (BW); Benson & Hedges (PM); BOND; BOND STREET; CABIN; Camel (RJR); Capri (PM); CASTER; CHEROKEE; Chesterfield (Liggett); Dakota (RJR); DIANA; Doral (RJR); Eve; F6; Favor; GENERIC; HELIKON; Horizon; JUWEL; KARO; Kool (BW (1933-2003)/RJR (2003-present))
First Menthol cigarette line, released in 1933. Premium priced brand.; L&M; Lark; Magna (RJR); Marlboro (PM); Merit (PM); Mila Schon; MILD SEVEN; Monarch; MULTIFILTER; MURATTI; Newport (Lorillard); Next De-Nic; Now (RJR); Pall Mall (ATC); Parliament (PM); Philip Morris; Premier Brand Cigarettes ("Smokeless" cigarette by RJR in the early 1990s)
"Smokeless" cigartte marketed by RJR in the early 1990s. Stationary furnace devices such as this operate by separating the combustion material (carbon) from the aerosol generating material (mostly glycerol) such that the inhaled by-products yielded upon smoking are the distilation products (glercerol and water) rather than combustion products (nicotine + smoke constituents). This is one reason why this product failed in market. Flavoring is derived from tobacco, nicotine, the paper roll and sprayed dried extract. Addition flavor of primarily rasberry ketone and chocolate was also added to enhance tobacco taste and give rise to a "pleasing aroma" in the smoke. This added flavor was a major reason that Premier failed in market as the taste was very different from conventional cigs.; PRESTIGE; Raleigh (BW); RED & WHITE; Salem (RJR); SAVANNAH; Select; SEVEN STARS; Sterling; Style (LOR); Superslims; Vantage (RJR); Viceroy (bw); Virginia Slims (PM); Winston (RJR)
Subject: additives; Blends (Design); Density (Design); Filters (Design); Low Yield Cigarettes (Products); nicotine technology; Paper (Design); Pressure Drop (Design); Reconstituted Tobacco (Design); secondhand smoke; Sensory Effects—Impact (Effects); Sensory Effects—Taste (Effects); Smoke Constituents; Smoke Delivery/Transport (Measures); Smoke Nicotine (Measures); Smoke pH (Measures); Smoothness/Harshness (Effects); T/N Ratios (Measures); Tar (Measures); Test/Consumer Preference (Testing); Test/Smoke Condensate (Testing); Test/Smoke Constituents (Testing); Tobacco Type (Design); Transfer to Smoke (Measures)

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PLAN OUTLINEfCONTENT P age VI. Resource Allocations and Implementation 75 A. Strategic Goal 1 75 B . Strategic Goa12 77 G. Strategic Goa13 79 D. Strategic Goa14 80 E. Strategic Goal 5 81 F. Resource Allocation Summary 83 VII. Implementation Appendices Appendix A Export Product Development Accomplishments Appendix B Technology Review Appendix C PME R&D Accomplishments iv

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Executive Summary The 1993-1997 PM U.S.A. R&D Strategic Plan contains seven major sections. The first section is the PM U.S.A. Mission Statement and Goals. This is followed by an Internal Analysis section. The 1993 R&D Major Programs are described and reasons for changes between the 1992 and 1993 plans are presented. Resources allocated to the Major Programs are shown. Major PM U.S.A. R&D accomplishments are summarized, including an outline of patents and publications. The status of technology at PM U:S.A. R&D is discussed. Next accomplishments and major objectives of PM Europe R&D are described. This section closes with a summary of PM U.S.A. R&D strengths indicated by the Internal Analysis. Section Three is an External Analysis. A summary of the domestic market and a detailed analysis of our four major competitors -- R.J. Reynolds, Brown &Williarnson (and BAT), and Japan Tobacco - are discussed. Next, non-traditional competitors (nicotine patches) are described. Competitive technology from a variety of sources is then summarized. The status of suppliers of importance to R&D issues such as flavors, filter tow, packaging materials, paper, and adhesives is discussed. A summary of relevant political and social issues is followed by a discussion of the strategy of a number of anti- smoking groups. The next section is entitled R&D Issues and describes strategic issues arranged by strategic goal. These issues raise many questions. The search for answers to these questions is the basis for the PM U.S.A. R&D Programs, 1993 Commitments and 1993- 1997 Operational Plan. A description of resource allocations in the next section and implementation in the final section concludes the Plan. Resource allocations are presented for R&D Major Programs. Resource allocations for all 1993 R&D activities by PM U.S.A. R&D cost center are given in the appendix. To provide a concise plan, much of the supporting documentation and information have not been included. This information is available for review in the PM U.S.A. R&D Library. Several changes were made to the PM U.S.A. R&D planning process during this planning period. A decision was made to move the time line for developing the Strategic Plan forward in the year to present the Plan in July. This goal was established to provide planning information prior to, or at least simultaneously with, the budgeting process. In general, the target dates were met. The new goal is to have R&D Strategic Planning accomplished on a July to July calendar year, and R&D Operational Plans prepared by September. In this way, Operational Plans may be reviewed prior to finalizing the budget. Finally, as mentioned in the 1992-1996 R&D Strategic Plan, both the Strategic and Operational plans for R&D should be living documents, not dust collectors. To this end, a significant effort was made to provide tools to facilitate the modif cation of the R&D Operational plan as needed, and to encourage a quarterly revision in conjunction with the R&D Quarterly Progress Report and Quarterly Planning Meeting.

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