How brand equity metrics drive brand strategy
David Haigh
On Friday 2 April 1993, Philip Morris cut the price of Marlboro cigarettes by 20%, to compete with generic cigarette manufacturers selling budget and supermarket own-label brands at low prices. The marketing and financial media immediately ran hysterical headlines announcing the death of the Marlboro brand specifically, and premium branding generally.
Philip Morris' share price went into freefall, dropping by 26% in one day and cutting $10 billion off the Philip Morris market cap. Investment analysts slashed the share price of Coca-Cola, Tambrands and many other branded manufacturers.
But 'Marlboro Friday'...