Marlboro Swot

MARLBORO
Applications of SWOT Analysis & Ansoff

Matrix
Anurag Gupta 22PGDM-BHU134
Ayan Dutta 22PGDM-BHU137
Mayuri Limbraj Birajdar 22PGDM-BHU146
Rohit Kumar 22PGDM-BHU161
Samadrita Banik 22PGDM-BHU166
Sourav Dey 22PGDM-BHU174
Diksha Kumari 22PGDM-BHU186
History
Malboro doesn’t require any introduction today. It is an American cigarette brand, currently
owned and produced by Philip Morris USA in the United States and by Philip Morris
International outside of the United States.
If we talk about the history of Malboro, It takes us back to the 19 th century. British
tobacconist Philip Morris established a store on Bond Street in London, United Kingdom, in
1846 to sell tobacco and rolled cigarettes. His brother Leopold and wife Margaret carried on
the business after he passed away from cancer in 1873. They expanded it and established a
factory on Great Marlborough Street in London, from which the company's name was
derived.
In 1902, Philip Morris established a subsidiary in New York to market several of its cigarette
brands. Although no cigarettes were marketed under the name "Marlboro" until 1923, the
mark "Marlboro" was registered in the United States in 1908. The brand was established in
1924. They were mostly sold in hotels and resorts and were initially billed as "America's
luxury cigarette."
Based on the tagline "Mild As May," it began to be promoted as a women's cigarette around
the 1930s. To appeal to a wider audience, the advertising for the cigarette focused mostly
on how ladylike the filter cigarette was. To achieve this, the filter had a printed red band
around it that said, "Beauty Tips to Keep the Paper off Your Lips," covering any lipstick
stains. But Philip Morris & Co. began marketing a product known as "Marlborough" as a
"ladies' favourite" as early as 1885.
Since more than 50 years ago, Philip Morris and other tobacco companies have used
ammonia in their manufacturing processes for a variety of purposes, including to enhance
specific flavours, increase the volume of tobacco, create reconstituted tobacco sheets, and
denicotinized.
But by the early 1960s, Philip Morris researchers had found a way to employ ammonia to
double the amount of free nicotine in cigarette smoke. Marlboro was able to produce
"milder, more aromatic, sweeter, and less harsh" cigarettes by adding ammonia to the
tobacco, which helped to increase its market domination. Marlboro subsequently employed
diammonium phosphate to free base the nicotine in tobacco, providing more efficient
delivery.
Due to a 2006 court ruling in United States v. Philip Morris USA, are no longer allowed to
use words like "Lights," "Ultra-Lights," "Medium," "Mild," or any similar designation that
may give the impression that they are safer than regular full-flavored cigarettes. Because of
this, Marlboro and other cigarette companies only use colour labelling; Marlboro Lights, for
example, are now known as Marlboro Gold Pack.
SWOT Evaluation
Strengths, Weaknesses, Opportunities, and Threats is referred to as SWOT. A SWOT analysis
is a tool for evaluating and comprehending the internal and external factors that could
result in opportunities or hazards for a company.
STRENGTH OF MARLBORO:
 Strong Brand Portfolio – Over the years Marlboro has invested
in constructing a sturdy logo portfolio. The SWOT evaluation of
Marlboro simply underlines this fact. This logo portfolio may
be extraordinarily beneficial if the organisation desires to increase into new
product categories.
 Successful tune file of growing new products – product innovation.
 Strong distribution community – Over the years Marlboro

has constructed a dependable distribution community which can attain majority of
its capacity market.
 Quality- Marlboro cigarette qualities are very mild, both men and women can
consume it as their slogan is “mild is may”. They have a white bud cigarette
which is very light and easy to smoke foe everyone
WEAKNESSES OF MALBORO
 Limited areas of sell

Marlboro has not sold to villages and rural areas where the most of the population
lives. Due to its high price. People’s purchasing power in villages are low so Marlboro
has to work in this area to cut the prize and the launch the product in low price .
 Research investment
Research is not able to compete with the leading players in the industry despite of
investing in research and development plans. Somewhere innovation is lacking
down. As a mature firm Marlboro should bring out with the products with tested
feature in the market. As e-cigarettes are in market that are less harmful than the
cigarette.
 Product range
There is lack in the choices given to customer as the product range is limited. this
gives the opportunity to the competitors in the market.
 Incorporation issue
There is integration of the parent company of Marlboro Philips Morris International
company that leads the company into lot of legal and functional crisis and affect the
company image in the market.
OPPORTUNITY OF MALBORO
 Increased Awareness of Foreign Brands in Various Countries: In emerging nations

like India, for example, where the number of clubs and pubs are increasing in the
city, a majority of people ask for the brand ‘Marlboro’ due to its universality in the
US, Canada and various other nations.
 Launch New Varieties:

Marlboro only deals in 4 varieties of cigarettes named light, ultra-light, medium and
mild. Marlboro should think of launching new products like new cigarette varieties.
Marlboro can also consider launching cigarettes that may be low tobacco to
decrease the rising health impacts of smoking.
 Improve its Digital Presence:

Being one of the top cigarette brands in the world, Marlboro should take the
opportunity of the booming digital era and build a stronger relationship with its
customers online using digital marketing strategies. Having a strong digital presence
creates a lasting impression and attracts new customers.
THREATS TO MALBORO
 Government Regulations:
Marlboro should monitor the fast-changing government regulations under the
growing pressure from protest groups and non-government organizations, especially
regarding the aspects of consumer health and labour safety.
Due to increase in taxes from the government, the price of cigarettes are increasing
day by day. Due to that consumers are unable to buy it and go for the local or
cheaper alternative despite of the low quality. This creates a problem for the
company.
 Competitors’ Low Prices:

The company may be challenged to control its prices as compared to its main
competitors. Other competitors have lower prices compared to them. Consumers
may opt to purchase cheaper products that may look and taste like Marlboro
cigarettes.
Due to increase in taxes from the government, the price of cigarettes are increasing
day by day. Due to that consumers are unable to buy it and go for the local or
cheaper alternative despite of the low quality. This creates a problem for the
company.
 The Subject of Litigation:

With tobacco being addictive and the single most prominent reason for preventable
demise globally, Marlboro is highly controversial, not short because of its record of
confusing scientific proof around the health effects of smoking. It has been the
subject of litigation and restrictive ruling from governments.
 Limited growth rate

As government has introduce several measures like tax increment and by making
mandatory to print graphic images on the packet to curb the sales of the cigarette,
this leads to slow down the growth of the Marlboro cigarettes. In India the annual
growth of the cigarette is became limited to 2.2% in term of the retail value for term
of five years from 2011-2015.
 Changing Habits:
The habits of consumers are continuously changing. They are becoming increasingly
more careful about their health after the Covid-19 outbreak and quitting smoking
due to its respiratory effects.

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MARLBORO

Applications of SWOT Analysis & Ansoff

 Successful tune file of growing new products – product innovation.

 Strong distribution community – Over the years Marlboro

 Limited areas of sell

 Increased Awareness of Foreign Brands in Various Countries: In emerging nations

 Launch New Varieties:

 Improve its Digital Presence:

 Competitors’ Low Prices:

 The Subject of Litigation:

 Limited growth rate

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