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Case Details

Case Code: MKTG369
Case Length: 15 Pages 
Period: 2014-2017    
Pub Date: 2018
Teaching Note: Not Available
Price:Rs.400
Organization : Philip Morris International
Industry : Tobacco
Countries : US; Global 
Themes: Strategic Marketing Management/ Ansoff’s Matrix  
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

Philip Morris International: Planning for a Smoke Free Future

 

ABSTRACT

 
This case is about Philip Morris International (PMI), a leading global cigarette and tobacco company. It discusses the company’s strategy to venture into the ‘Heat but not burn’ (HnB) tobacco products category. PMI launched iQOS in 2014 in Nagoya, Japan, and Milan, Italy, as a pilot project. iQOS was a rechargeable electronic device that heated tubes of tobacco called HeatSticks, in contrast to conventional cigarettes in which tobacco was burned.

The case highlights the dangers of tobacco consumption and its effect on human health. It describes in detail PMI’s strategy to develop and commercialize what it called Reduced Risk Products (RRPs). iQOS was the first of four platforms of RRPs developed by PMI. The case also examines the challenges faced by the company. It ends with a discussion on whether PMI would be able to stay ahead of its competitors or not.
 
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Issues

The case is structured to achieve the following teaching objectives:
  • Discuss and analyze the global tobacco industry.
  • Study and assess the issues and challenges for a cigarette company relying on traditional cigarette products.
  • Evaluate the importance of venturing into the ‘Heat but not burn’ (HnB) tobacco products category.
  • Examine the challenges PMI could face in future and explore strategic options before the company
Contents
INTRODUCTION
BACKGROUND NOTE
DANGERS OF TOBACCO
REDUCED-RISK PRODUCTS (RRPS)
CHALLENGES
THE ROAD AHEAD
EXHIBITS

Keywords

Product management; Strategic marketing; Industry analysis; Ansoff’s product market matrix; Brand portfolio; Product portfolio; Category-based marketing; Multi-category approach; Reduced-risk products; Strategic options; Corporate social responsibility; Marlboro

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