Source: www.us-marlboro.com
Author: staff

In conformity with the recently revealed marketing strategy, Phillip Morris USA has been focused on developing and introducing new extensions of company’s flagship brands Marlboro, L&M and smokeless products, said Michael E. Szymanczyk, chairman of Altria Group, the owner of Philip Morris.

Altria also is eager to increase its leading position in the constantly growing market of snus, smokeless tobacco products, originating from Sweden.

The top tobacco company across America will launch new snus variety under its best-selling brand, Marlboro, according to the chief executive of Altria Group based in Henrico County, VA.

In addition, Philip Morris USA will attempt to expand its presence on the market of menthol cigarettes, by introducing a menthol extension of the mainstream discount brand L&M, Szymanczyk said during the Barclays Consumer Conference.

And in the nearest future, Altria plans to launch another smokeless tobacco product, using its subsidiary, in order to capture more customers who prefer oral tobacco items. Altria CEO declared that they are currently working on the introduction of new variety of Copenhagen moist snuff with wintergreen flavor. According to industry analysts, the introduction of additional variety will contribute to approximately 9 percent increase of Copenhagen market share, from current 23% to almost 32%.

According to Szymanczyk, U.S. Smokeless Tobacco and Philip Morris have joined forces to boost the sales of snus, smokeless tobacco items, selling as the extension of Marlboro brand.

Snus resemble tea bags in appearance and are used for chewing and sucking with a flavorless gum, giving a shot of nicotine and a herbal flavor.

Philip Morris USA has begun test-marketing Marlboro brand snus in three cities: Dallas, Indianapolis and Phoenix.

Snus that were created in Sweden are cured by steam instead of fire as in other tobacco products, and thus, contain less nitrosamines and other toxic substances. The products have been predicted to grow in popularity as they provide nicotine shots but not smoke.

Altria’s subsidiary Swedish Match, responsible for production of snus, said that although it is concerned by the possibility of FDA regulation on snus, it would try to convince the Food and Drug Administration that snus can be used as smoking cessation toola and they are less hazardous than conventional cigarettes.

Philip Morris recently launched a new extension of Marlboro brand – Marlboro Blend No. 54, full-flavor menthol cigarettes, advertised as having a richer and stronger menthol taste. According to sales reports, the new Marlboros have been drawing specific attention of smokers, since the sales have been 10% up in comparison to the anticipated ones.

However, Szymanczyk said the company will introduce more menthol varieties of the most popular brands, as menthol is the only market segment, where Altria is not leading. He admitted that they will soon launch L&M Menthol cigarettes later in 2009 to boost its shares in menthol sector.