Daily Doc: PM, Jun, 1994: PM Marketing Marlboros in Vietnam

Daily Doc: PM Marketing Marlboros in Vietnam


Title: Vietnam Project Discussion Paper
PM, Jun, 1994
Bates #: 2504015075A/5110


July 23, 2000

Philip Morris made plans to market Marlboro cigarettes in Vietnam, noting that it was illegal to sell foreign cigarettes there ("Need to manufacture locally to properly market Marlboro in Vietnam"). They also noted that cigarette advertising was prohibited in Vietnamese media, that the smoking rate among Vietnamese men was a phenomenal 80%, that the overall smoking rate among adults was 40% ("one of the highest in Asia"-- a good thing, to Philip Morris) that the average per capita income in Vietnam was US $220 per year, that a pack of cigarettes sold for $1.00, and the average Vietnamese smoker smoked 11 "sticks" (cigarettes) per day. If one does the math, though, one finds the average Vietnamese smoker spending an amount almost equal to his annual per capita income on cigarettes each year... (about US $200).

Sounds like a good place to market cigarettes--if you're a cigarette maker!


CITATION
Title: Vietnam Project Discussion Paper
Type of Document: Market Research report, speech/presentation
Author N/A - found in area of Peter Schmidt's secretary's files Recipient: N/A
Date: 19940600
Company/Site: Philip Morris document site: http://www.pmdocs.com/
No. of Pages: 36
Bates No. 2504015075A/5110
URL: http://www.pmdocs.com/getallimg.asp?DOCID=2504015075A/5110
OR, for much EASIER VIEWING, see this document on Tac's new tobacco document beta site, which allows you to rotate and magnifiy all pages simultaneously: Here's th e URL: http://my.tobaccodocuments.org/tdo/view.cfm?CitID=2077536


QUOTES
Background

Operating Environment:
-- Imported cigarettes are not allowed to be sold legally in Vietnam.
-- Marlboro visibility and distribution are governed by the supply of Marlboro via other channels.
-- Cigarette advertising in media is prohibited according to law.
-- Market observations indicate that many cigarette companies are conducting branding type of advertising for cigarette brands at retail.
-- Need to manufacture locally to properly market Marlboro in Vietnam.

Retail Environment -- Market Observation
--Cigarettes are mainly sold through the following outlets:
-- Wholesalers (60-100 cases a day)
-- Sub-wholesalers (25-30 cartons/day)...
-- Unsophisticated push-cart retailers (5-18 packs/day)
(Loose sticks sales are available on all the push-cart retailers/subwholeslaters/retailers)

CONSUMER ENVIRONMENT
--Smoking incidence among adult population is around 40% (one of the highest in Asia)
-- Men at 80%
-- Extremely low among women
-- Average daily consumption of cigarettes at 11 sticks per day
-- Reported percapita income nationwide is around US $220 per annum...
-- Household income of adult smokers in HCM [Ho Chi Minh City] and Hanoi is around U.S.$100 per month.
-- Affordability of premium priced cigarettes is a concern to many smokers.


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Anne Landman, Regional Program Coordinator
American Lung Association of Colorado, West Region Office
Grand Junction, CO
(970) 245-2120
afoxland@gj.net
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