Lights Cigarettes in the USA

Executive Summary

Marlboro Lights, a Line Extension

Philip Morris launched Marlboro Lights to preempt a proposed surtax for cigarettes with tar deliveries above 15 mg.

A Lights Line Extension Had Advantage Over a Freestanding Brand Considering:

■ Philip Morris's strategic plans to build a global/ international trademark of the Marlboro family.

■ Marlboro Red’s strong image and rapid growth in the market.

■ Philip Morris's plan to transfer Marlboro Red’s franchise to the Lights version if the surtax was approved.

■ Absence of electronic media to build a new trademark.

Given these advantages, Philip Morris was able to define a product mix that, while unique in its proposition and different from its parent, benefited from the parent's strengths and supported the family modernizing and broadening the line without sacrificing equity.

Key Elements in Marlboro Lights Success Were:

■ The parent: strong and healthy enough to support a line extension.

■The strategy: "Parent is first, the line extension is second." The Lights version would not hurt the parent.

■ Product differentiation, but consistent with the family. Marlboro Lights featured as a relative of Marlboro Red, not as a substitute.

■ The brand evolved as the market required it. More specifically, tar content decreased as consumers traded down in tar but in steps to facilitate this downgrading.

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