Phillip Morris: Changing Marketing Strategies As a Result of New Governmental Laws and Regulation Regarding Smoking

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Introduction By the middle of 20th century being a smoker was a synonym of being cool, modern and chic, and a cigarette became a symbol of a good and successful life, largely promoted through movies and advertising. As the time passed, the negative health effects associated with cigarettes had become apparent, the society became aware of harmful effects of smoking, it's addictiveness, the toxicity of tar; Western governments have shifted away from undisguised support of the tobacco industry towards an emphasis on population health interests, and in the 1990's, the future of the largest tobacco company in the world, Philip Morris was put under a question. The company desperately needed a new image and a new business strategy. The year 2013 became one of the most challenging in company's history in the terms of revenue, with a negative growth rate of 1.32%. Could that be the sign that after more than a century of success, the business needs some major changes to be able to stay in the game? Background The history of the company traces back to 1847, when Mr. Philip Morris had opened a single shop on Bond Street in London for selling tobacco and ready-made cigarettes. After his death the business was taken over his wife wife and his brother, therefore the company continued operation as a family business. In 1881 the company went public and in 1894 it left the control of Morris family. In 1902 it incorporated in New York and the ownership was split 50-50 between the British and American partners. The year 1919 became a critical point in the history of the company: first Philip Morris logo was introduced, through the acquisition the company was now owned by American shareholders and incorporated in the state of... ... middle of paper ... ...olio. There are many things that can be done to improve the current situation of Philip Morris, get back on the track of constantly increasing revenue growth rate, but will the company be able to take actions before everything goes out of their control? In such environment only the big players will survive. Bibliography: Website Title: Philip Morris International 2013 Interactive Annual Report Article Title: 2013 Annual Report Date Accessed: April 11, 2014 Website Title: Public Health Law Center Article Title: Smoking Regulation Date Accessed: April 11, 2014 Website Title: Forbes Article Title: FDA Regulates Tobacco, And Phillip Morris Cheers Publisher: Forbes Magazine Date Accessed: April 11, 2014 Website Title: International Business Times Article Title: Philip Morris International (PM) Unapologetic As It Lobbies[…] Date Accessed: April 11, 2014

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