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Essay / Research Paper Abstract
This 3-page paper discusses a global strategy for U.S.-based cigarette maker Philip Morris and how it is making inroads into Indonesia. This is an article review of "Philip Morris expands in Indonesia," which was published in the March 15, 2005 issue of the Wall Street Journal.
Page Count:
3 pages (~225 words per page)
File: D0_MTphiind.rtf
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Unformatted sample text from the term paper:
of profit). But sometimes, pushing certain types of products doesnt work so well because of cultural differences or preferences. In such cases, companies will need to rely on already existing
companies within the countries in order to push for success. U.S.-based cigarette company Philip Morris found this out in Indonesia the hard
way. After years of trying to sell its Marlboro brand in Indonesia (which is the worlds fifth-largest cigarette market), PM decided on another strategy -- the acquisition of PT Hanjaya
Mandala Sampoerna, which is one of Indonesias top cigarette makers. Its believed that Sampoernas distribution network, and brand name, will help benefit Philip Morris, and help provide the U.S. cigarette
maker with another channel of distribution in a country it hasnt been wildly successful in. In the March 15, 2005 article "Philip
Morris expands in Indonesia," published in the Wall Street Journal, reporter Timothy Mapes points out that this particular acquisition represents a shift in strategy for Philip Morris. Typically, PM doesnt
have much of a problem with brand awareness or product sales -- but Indonesians, who prefer clove-scented cigarettes called "kreteks," was a hard market to begin with.
Marlboro itself is the best-selling brand in the world -- the "Marlboro Man" represents the mystique of the American West, rugged, bold and adventurous. But
the symbolism was lost in the Indonesian market, not because Indonesians dont appreciate ruggedness or boldness -- but because of the Indonesian markets preference for the clove-scented kreteks. About 92
percent of the sales of Indonesian cigarettes are of the kreteks, with Philip Morris brands accounting for half of the remaining eight percent.
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