I have the privilege of leading the team that is preparing for the launch of IQOS. Working on IQOS is exciting – about half of adult smokers are looking for an alternative and many haven't found a product that meets their requirements. IQOS has an opportunity to do just that, it is more similar to a cigarette from a sensorial experience but doesn't have the lingering smell that you would get from a combustible product.
One of the big challenges for IQOS is that it is a new brand in creating a new tobacco category. Most adult smokers in the U.S. are unaware of heated tobacco products. The team is focused on utilizing marketing that differentiates IQOS Heated Tobacco from e-vapor and traditional cigarettes. The messaging that we will utilize is very product focused. Much of our marketing will feature the tagline "Meet IQOS. Real Tobacco, No Ash, Less Odor". We plan to build awareness of IQOS in a responsible way by focusing our communications directly to adult smokers. Responsibility is critical because it is how we maintain our ability to market and sell our products.
IQOS is a product that was designed to completely transition adult smokers from traditional cigarettes to a heated tobacco product. Our goal is to responsibly transition our adult smokers completely from cigarettes to IQOS. We will use traditional direct marketing tactics like direct mail, email, Marlboro.com, and on-pack communications to reach these adult smokers. However, we believe that we will need to utilize some new channels to reach this audience and properly show them how IQOS works. One example of this is the IQOS store. The store is a new way of marketing for PM USA and it is really exciting. We have applied a responsibility lens to the IQOS stores. We will age verify all adults that enter the store and will only sell the product to adults that acknowledge they are a smoker. There are many other examples of new and different marketing approaches that we will try with IQOS. With each execution we are focused on responsibly reaching adult smokers.