Marlboro Miles
Investors interpreted the price slash as an admission of defeat from the marlboro miles brand, that Philip Morris could no longer justify its higher price tag and now had to compete with generic brands. Since the Marlboro man was an image that stood since 1954, it was considered one of the biggest marketing icons, investors reasoned that to see the Marlboro icon give into a price war, the marketing itself must be ineffective. As a result of plummeting stock value in major American brands, 1993 marked a slight decrease in U.S. ad expenditures. Companies began investing in promotions rather than advertising. In 1983 in the U.S, the average expenditure on marketing was 70% advertising and 20% on promotions, by 1993 it had made a complete turn around, to 70% on promotions and 20% on advertising.
