UICC GLOBALink Presents...
The Tobacco Reference Guide
by David Moyer, MD.


Chapter 29 The tobacco Industry

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The tobacco Industry: Philip Morris

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Marlboro cigarettes are the best-selling packaged product in the world, and the

Marlboro cowboy is the most widely recognized advertising image in the world.

Marlboro sales were $15 billion worldwide in 1993.

New York Times magazine, March 20, 1994, p. 36 and Washington Post National

Weekly Edition, July 11, 1994, p. 19

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Marlboro cigarettes are the world's best-selling consumer product, but the U.S.

Marlboro market share dropped steadily from almost 30% in 1988 to 22% in 1993 as

discount "generic" brands costing a dollar a pack less increased their market share to

more than 30%. In April 1993, Philip Morris announced a plan to reduce Marlboro

prices by 20%. The same day, in anticipation of lower future profits, Philip Morris

stock dropped by 23%, reducing its market value by $13 billion in one day.

Kiplinger magazine, June 1993

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On April 2, 1993, Philip Morris cut the retail price of a pack of Marlboros by 40 cents.

The move cost the company $2 billion at the time, but a year later, the Marlboro

market share had risen from 22 to 27 percent, its highest point ever.

New York Times magazine, March 20, 1994, p. 73

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Philip Morris cut Marlboro prices by 40 cents a pack in April 1993. One comment

was: "Virtually all new users of Marlboro start as teenagers or younger. It's that market

that they're trying to expand and addict before the Federal Government increases the

tax" (New York Times, April 3, 1993, p. A1). Another media comment was: "Philip

Morris' new motto should be, 'sell'em cheap, hook'em young'."

SCARC, April 28, 1993

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