Cash on the Pack
Nov 23, 2006, 17:28
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Philip Morris launches Parliament Reserve cigarettes in Moscow, which pack costs 200 rubles. Korea Tobacco & Ginseng came up with its Esse (120 rubles to 125 rubles) some time earlier. The ultra-premium segment suits well to promote the basic brand, analysts explain. Philip Morris launches its Moscow sales of Parliament Reserve in November, said a source familiar with the plans of the company. The cigarettes are already being made at Philip Morris Izhora (the Leningrad region). Parliament Reserve won’t be sold through traditional retail but delivered by mailing with a block of cigarettes chosen as a minimal consignment. Each pack will cost 200 rubles. Parliament Reserve is purely an image project, Fredrik Stahle, Philip Morris Sales & Marketing director in Russia, said when asked to confirm the data. Philip Morris is the cigarette leader here. It covers 26.7 percent of the market in terms of the volume, according to Business Analytica. It owns two factories in Russia - in the Leningrad region and Krasnodar. The key brands are Marlboro, Parliament, L&M, Chesterfield. The analysts speak of a few reasons when explaining the desire of tobacco major to introduce noncommercial product in Russia. One of them is that in time of Parliament's appearance, the demand for the premium segment wasn’t as strong as today and consumers don’t think Parliament premium any longer. So, the launch of Parliament Reserve could improve the company’s status in general. Besides, a pack is an ideal advertising carrier in the environment when tobacco companies don’t have many chances to advertise in Russia.
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