Philip Morris Research Articles

IQOS Marketing Strategies and Expenditures in the United States From Market Entrance in 2019 to Withdrawal in 2021.

IQOS entered the U.S. market in October 2019, then received the Food and Drug Administration (FDA)'s modified risk tobacco product authorization (MRTPA) allowing use of "reduced exposure" claims in marketing in July 2020. A May 2021 court decision regarding patent infringement required IQOS' removal from the U.S. market in November 2021. Using 2019-2021 Numerator marketing data, this study characterized ad occurrences and expenditures-including allocation per ad content (headline theme, imagery) and media type and channel-pre- and post-MRTPA; exploratory analyses characterized the post-court to withdrawal period separately. The study period entailed 685 occurrences and $15 451 870 in expenditures. The proportions of occurrences across the three periods (pre-MRTPA, post-MRTPA, and post-court) were 39.3%, 48.8%, and 12.0%, respectively (p < .001); the proportions of expenditures were 8.6%, 30.0%, and 61.5%. Overall, 73.1% of ad occurrences were via online display; 99.6% of expenditures occurred in print. Per occurrences, prominent pre-MRTPA headline themes included "future" (40.2%), "real tobacco" (38.7%), "get IQOS" (35.3%), and "innovation or technology" (20.1%); post-MRTPA, prominent themes included "not burned or heat control" (32.7%), "reduced exposure" (26.4%), and "distinct from e-cigarettes" (20.7%). Visuals mainly depicted the product alone (pre-MRTPA: 86.6%; post-MRTPA: 76.1%), but increasingly featured women (pre-MRTPA: 8.6%; post-MRTPA: 21.5%). The most prominent media channel theme pre-MRTPA was "technology" (19.7%), but post-MRTPA included "women's fashion" (20.4%) and "entertainment or pop culture/gaming" (19.0%). IQOS leveraged MRTPA in ads, continued marketing post-court decision, and targeted key consumer groups (ie, women). Marketing surveillance of products granted MRTPA is needed, domestically and in other countries, to assess its use and impact. Philip Morris (PM) leveraged IQOS' MRTPA from the U.S. FDA, and continued marketing IQOS after its withdrawal from the U.S. market due to a patent-infringement-related court decision. Notably, IQOS marketing increasingly targeted key consumer groups (eg, women). Given IQOS' potential return to the United States, PM's use of FDA's MRTPA to promote IQOS as a risk reduction product in other countries, and FDA's MRTPA for other products, it is crucial to monitor products receiving MRTPA, their marketing, and their population impact, domestically and in other countries.

‘Cease and desist?’ The persistence of Marlboro brand imagery in racing video games

BackgroundSince 1972, Philip Morris (PM) has sponsored motorsports. Racing video games are a popular genre among youth and often emulate the branding of their real-life counterparts, potentially exposing youth to...

IQOS debut in the USA: Philip Morris International’s heated tobacco device introduced in Atlanta, Georgia

Following the Food and Drug Administration’s (FDA) April 2019 authorisation on their premarket tobacco product application,1 Philip Morris (PM) has officially launched its heated tobacco product, IQOS, in the USA...

Stakeholder Engagement Strategies After an Exogenous Shock: How Philip Morris and R. J. Reynolds Adapted Differently to the 1998 Master Settlement Agreement

This study contributes to understanding stakeholder engagement strategies by examining competitive responses alongside sociopolitical implications after a major exogenous shock—the 1998 Master Settlement Agreement (MSA) between the “Big Four” U.S. tobacco firms and 46 state attorneys general. We compare the different stakeholder engagement strategies of the two remaining U.S. tobacco manufacturers, Philip Morris (PM) and R. J. Reynolds (RJR), between 1998 and 2017. Implications for stakeholder theory from a relatively rare natural experiment highlight the importance of simultaneously managing multiple stakeholders, inclusive of domestic and international sociopolitical and value chain stakeholders over time, for sustained value creation. Although PM and RJR initially pursued heterogeneous strategies by re-configuring relationships with relevant stakeholders, each firm’s growth prospects for the first decade post-MSA were exacerbated by various stakeholders through withholding and selective engagement strategies. Implications for how multiple, simultaneous stakeholder relationships can serve as important resources for achieving or limiting sustained growth are discussed.

Revolution or redux? Assessing IQOS through a precursor product

BackgroundPhilip Morris International (PMI) currently claims that its heated tobacco product, IQOS, reduces health risk by reducing users’ exposure to harmful and potentially harmful constituents present in tobacco smoke. Given...

Explaining the discontinuation of a non-tobacco nicotine project at Philip Morris: obstacles to innovation.

This paper investigates the fate of the Capillary Aerosol Generator (CAG), a nicotine aerosol device resembling modern e-cigarettes, developed by Philip Morris (PM) in 1994. A debate has emerged as to why this product never made it to market. In Donovan et al. v. Philip MorrisUSA, Inc., the sides presented opposing views in their arguments. To explore the reasons for CAG abandonment, we searched the Truth Tobacco Industry Documents database for key terms including 'Capillary Aerosol,' 'Project LEAP' (the project under which theCAG was housed), and 'Tony Howell' (CAG inventor). The results show that regulatory, legal, and political concerns deterred CAG development. A lack of progress even after these concerns had abated seems to reveal a larger reluctance to innovate non-tobacco products-perhaps due to concerns about competing against tobacco cigarettes. We also explored additional explanations such as technological barriers and lack of consumer interest.

Philip Morris research on precursors to the modern e-cigarette since 1990

BackgroundUse of electronic cigarettes (e-cigarettes) is increasing rapidly. Chinese pharmacist Hon Lik is frequently cited as inventing the modern e-cigarette in 2003. However, tobacco companies have developed electronic nicotine delivery...

Can you refuse these discounts? An evaluation of the use and price discount impact of price-related promotions among US adult smokers by cigarette manufacturers

ObjectivesThe raising unit price of cigarette has been shown to be one of the most effective ways of reducing cigarette consumption and increasing rates of successful quitting. However, researchers have...

Tobacco product developments coinciding with the implementation of plain packaging in Australia

Australia's plain packaging legislation was passed in the lower house of the Australian Parliament on 21 November 2011, and was signed into law a few weeks later on 1 December...

Tobacco industry tangos with descriptor ban in Malaysia

Malaysia's 2008 Control of Tobacco Product (Amendment) Regulations (CTPR)1 prohibit use of misleading information or terms on cigarette packages. This measure marks another major milestone in Malaysian public health and...

Tobacco industry manipulation of tobacco excise and tobacco advertising policies in the Czech Republic: an analysis of tobacco industry documents.

The Czech Republic has one of the poorest tobacco control records in Europe. This paper examines transnational tobacco companies' (TTCs') efforts to influence policy there, paying particular attention to excise policies, as high taxes are one of the most effective means of reducing tobacco consumption, and tax structures are an important aspect of TTC competitiveness. TTC documents dating from 1989 to 2004/5 were retrieved from the Legacy Tobacco Documents Library website, analysed using a socio-historical approach, and triangulated with key informant interviews and secondary data. The documents demonstrate significant industry influence over tobacco control policy. Philip Morris (PM) ignored, overturned, and weakened various attempts to restrict tobacco advertising, promoting voluntary approaches as an alternative to binding legislation. PM and British American Tobacco (BAT) lobbied separately on tobacco tax structures, each seeking to implement the structure that benefitted its own brand portfolio over that of its competitors, and enjoying success in turn. On excise levels, the different companies took a far more collaborative approach, seeking to keep tobacco taxes low and specifically to prevent any large tax increases. Collective lobbying, using a variety of arguments, was successful in delaying the tax increases required via European Union accession. Contrary to industry arguments, data show that cigarettes became more affordable post-accession and that TTCs have taken advantage of low excise duties by raising prices. Interview data suggest that TTCs enjoy high-level political support and continue to actively attempt to influence policy. There is clear evidence of past and ongoing TTC influence over tobacco advertising and excise policy. We conclude that this helps explain the country's weak tobacco control record. The findings suggest there is significant scope for tobacco tax increases in the Czech Republic and that large (rather than small, incremental) increases are most effective in reducing smoking.

Through tobacco industry eyes: civil society and the FCTC process from Philip Morris and British American Tobacco's perspectives

ObjectiveTo analyse the models Philip Morris (PM) and British American Tobacco (BAT) used internally to understand tobacco control non-governmental organizations (NGOs) and their relationship to the global tobacco control policy-making...

Transnational tobacco industry promotion of the cigarette gifting custom in China

ObjectiveTo understand how British American Tobacco (BAT) and Philip Morris (PM) researched the role and popularity of cigarette gifting in forming relationships among Chinese customs and how they exploited the...

Tobacco Industry Lifestyle Magazines Targeted to Young Adults

Purpose This is the first study describing the tobacco industry's objectives developing and publishing lifestyle magazines, linking them to tobacco marketing strategies, and how these magazines may encourage smoking. Methods Analysis of previously secret tobacco industry documents and content analysis of 31 lifestyle magazines to understand the motives behind producing these magazines and the role they played in tobacco marketing strategies. Results Philip Morris (PM) debuted Unlimited in 1996 to nearly 2 million readers and RJ Reynolds (RJR) debuted CML in 1999, targeting young adults with their interests. Both magazines were developed as the tobacco companies faced increased advertising restrictions. Unlimited contained few images of smoking, but frequently featured elements of the Marlboro brand identity in both advertising and article content. CML featured more smoking imagery and fewer Camel brand identity elements. Conclusions Lifestyle promotions that lack images of smoking may still promote tobacco use through brand imagery. The tobacco industry still uses the “under-the-radar” strategies used in development of lifestyle magazines in branded Websites. Prohibiting lifestyle advertising including print and electronic media that associate tobacco with recreation, action, pleasures, and risky behaviors or that reinforces tobacco brand identity may be an effective strategy to curb young adult smoking.

"A good personal scientific relationship": Philip Morris scientists and the Chulabhorn Research Institute, Bangkok.

BackgroundThis paper examines the efforts of consultants affiliated with Philip Morris (PM), the world's leading transnational tobacco corporation, to influence scientific research and training in Thailand via the Chulabhorn Research Institute (CRI). A leading Southeast Asian institute for environmental health science, the CRI is headed by Professor Dr. Her Royal Highness Princess Chulabhorn, the daughter of the King of Thailand, and it has assumed international significance via its designation as a World Health Organization (WHO) Collaborating Centre in December 2005.Methods and FindingsThis paper analyses previously confidential tobacco industry documents that were made publicly available following litigation in the United States. PM documents reveal that ostensibly independent overseas scientists, now identified as industry consultants, were able to gain access to the Thai scientific community. Most significantly, PM scientist Roger Walk has established close connections with the CRI. Documents indicate that Walk was able to use such links to influence the study and teaching of environmental toxicology in the institute and to develop relations with key officials and local scientists so as to advance the interests of PM within Thailand and across Asia. While sensitivities surrounding royal patronage of the CRI make public criticism extremely difficult, indications of ongoing involvement by tobacco industry consultants suggest the need for detailed scrutiny of such relationships.ConclusionsThe establishment of close links with the CRI advances industry strategies to influence scientific research and debate around tobacco and health, particularly regarding secondhand smoke, to link with academic institutions, and to build relationships with national elites. Such strategies assume particular significance in the national and regional contexts presented here amid the globalisation of the tobacco pandemic. From an international perspective, particular concern is raised by the CRI's recently awarded status as a WHO Collaborating Centre. Since the network of WHO Collaborating Centres rests on the principle of “using national institutions for international purposes,” the documents presented below suggest that more rigorous safeguards are required to ensure that such use advances public health goals rather than the objectives of transnational corporations.

Philanthropy, politics and promotion: Philip Morris’ “charitable contributions” in Thailand

The efforts of members of the tobacco industry to portray themselves as responsible corporations via ostensible commitment to improved labour practices and public philanthropy have attracted growing criticism. This is...

Keeping Public Institutions Invested in Tobacco

Increasingly through the 1990s, tobacco control advocates questioned the practice of public institutions investing in tobacco company stocks. The questioning was framed in at least three ways. First, is it ethical to fund public expenditures with profits from a product that causes addiction and disease? Second, is it sound social policy to derive public income from a product that increases healthcare costs and reduces worker productivity? Finally, is it sound fiscal policy to invest in an historically profitable industry facing multiplying legal and regulatory challenges? While the tobacco industry preferred to restrict discussion to the fiscal question, and offered an affirmative answer, its position was weakened by depressed stock prices brought on by actions of the industry as much as by tobacco control activism. As part of a campaign to restore its credibility as an investment vehicle with public fund managers, Philip Morris (PM) commissioned a report from the influential investment managers/advisors Wilshire Associates. However, Wilshire had only recently conducted such a study for the Washington State Investment Board (WSIB), assuring the board that the value tobacco stocks added to an investment portfolio – if any – was too small to be measured. Nonetheless, within a year, Wilshire produced a report for PM which appeared to laud the investment value of tobacco and to dismiss tobacco-excluded investment alternatives. This paper examines how Wilshire produced apparently diametrically opposed reports for clients with different interests. It reveals a pattern of potential conflicts of interest among tobacco companies, financial analysis firms, investment authorities, and institutional fund managers. It demonstrates substantial violations of two generally accepted ethical principles of business consulting: veracity and transparency.

Avoiding “Truth”: Tobacco Industry Promotion of Life Skills Training

Purpose To understand why and how two tobacco companies have been promoting the Life Skills Training program (LST), a school-based drug prevention program recommended by the Centers for Disease Control and Prevention to reduce youth smoking. Methods We analyzed internal tobacco industry documents available online as of October 2005. Initial searches were conducted using the keywords “life skills training,” “LST,” and “positive youth development.” Results Tobacco industry documents reveal that since 1999, Philip Morris (PM) and Brown and Williamson (B&W) have worked to promote LST and to disseminate the LST program into schools across the country. As part of their effort, the companies hired a public relations firm to promote LST and a separate firm to evaluate the program. The evaluation conducted for the two companies did not show that LST was effective at reducing smoking after the first or second year of implementing the program. Even so, the tobacco companies continued to award grants to schools for the program. PM and B&W’s role in promoting LST is part of a public relations strategy to shift the “youth smoking paradigm” away from programs that highlight the tobacco industry’s behavior and toward programs in which the industry can be a partner. Conclusions Individuals and organizations responsible for developing and implementing tobacco control and youth smoking prevention programs should be aware of PM and B&W’s role and motivations to encourage the wide-spread adoption of LST in schools.

Fiscal versus social responsibility: how Philip Morris shaped the public funds divestment debate

Calls for institutional investors to divest (sell off) tobacco stocks threaten the industry’s share values, publicise its bad behaviour, and label it as a politically unacceptable ally. US tobacco control...

DISPARITIES IN GLOBAL TOBACCO HARM REDUCTION

In “Origins of the WHO Framework Convention on Tobacco Control,” Roemer et al. present a compelling argument for a unified global approach to tobacco control.1 However, the Framework Convention on Tobacco Control will not benefit nonsignatory countries, which tend to have few or no existing tobacco control measures in place. Indonesia is the only Asian country that failed to sign the treaty. Significantly, Indonesia is also one of the largest tobacco markets in the world, with smoking rates in excess of 60% for adult males and 20% for 10-year-old males.2 Altria, the parent company of US cigarette giant Philip Morris (PM), recently acquired Sampoerna, Indonesia’s second-largest cigarette manufacturer, and appears poised to exploit the virtual absence of tobacco industry regulation in that country. In the United States, where more rigorous tobacco control measures are in effect, PM appears to be making some progress toward reducing the harms associated with tobacco use. Positive initiatives such as harm reduction, youth smoking prevention, and adult cessation programs are part of a strategy employed by PM in the United States in response to public health initiatives. PM recently announced plans to construct a US$300 million facility in Richmond, Va, to develop “reduced exposure” tobacco products and introduced Marlboro UltraSmooth, a cigarette with a carbon filter designed to reduce toxic gas phase smoke constituents, in test markets. In Indonesia, more than 90% of cigarettes smoked are kretek, or clove cigarettes. These often unfiltered cigarettes contain a blend of ground clove buds and tobacco and deliver significantly higher levels of tar, nicotine, and carbon monoxide than a conventional US cigarette and much higher levels still than Marlboro UltraSmooth (Table 1 ▶). TABLE 1— Smoke Chemistry Data for an Indonesian Kretek (Clove Cigarette), a Conventional US Cigarette, and Marlboro UltraSmooth Unfortunately, it is difficult to reconcile PM’s expressed commitment to harm reduction with the company’s investment in a product with such questionable health implications in a country with little or no regulation of marketing and sales to minors. PM’s actions in Indonesia cast serious doubt on the company’s purported reforms. PM’s involvement in the Indonesian tobacco market emphasizes the need for public health advocates to pressure multinational tobacco companies to support the principles of the Framework Convention on Tobacco Control. We welcome this momentous initiative. Nevertheless, a truly unified global tobacco control treaty must also have the capacity to prevent transnational tobacco companies from continuing to undermine public health in the developing world.