LUND EXTENDS BRAND ARDOR OVER ALL PM TOBACCO LINES: MARLBORO VET WILL GROW OTHER BRANDS AGAINST CORE POSITIONINGS FOR EACH ONE

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The marlboro man may be tough, but the Marlboro woman is passionate. For more than a dozen years, Nancy Brennan Lund dedicated herself to building Philip Morris USA's No. 1 brand into the unstoppable force it has become. Now, she's turning her attention to the marketer's full portfolio, as Philip Morris' newly appointed senior VP-marketing, and plans to attack the job with her usual gusto.

"I'm known for my passion," said Ms. Lund, 46.

"She has a great sense of enthusiasm, a great passion for the brand," agreed Thomas Dudreck, exec VP at Philip Morris' lead agency, Leo Burnett USA, Chicago. "Whether she reacts positively or negatively, she responds from the inside of her gut. She has [an uncanny] sense of rightness."

MARLBORO GROWTH

Right is indeed the course she steered for Marlboro, which saw its share grow an astounding 10 percentage points to its current 37% under her watch. That growth was powered by line extensions -- including Marlboro Menthol, Marlboro Medium and Marlboro Ultra Lights -- along with continuity programs such as Marlboro Miles and promotions like "Party at the Marlboro Ranch."

"I've worked on Marlboro for 13 of my 14 years" at Philip Morris, said Ms. Lund, who started on the brand as assistant brand manager and worked her way up to group VP-Marlboro and new products. But she did work on another Philip Morris brand before joining the company -- at the now-defunct Wells, Rich, Greene, where she was an account exec on Benson & Hedges.

In her new post, she's responsible for all of Philip Morris' cigarette brands and faces the challenge of making them stand up to Marlboro, which keeps building share as that of sibling full-price brands erode. According to Philip Morris' first-quarter report, Marlboro's share jumped to 37.9% of industry shipments, up 2 percentage points, while Benson & Hedges, Merit, Parliament and Virginia Slims posted a 0.4% share decline to a combined 6.9%.

Not surprisingly, Ms. Lund takes issue with the notion that those other brands are troubled.

"Those brands have equities relevant to adult smokers and we will market and extend them in a very consistent way," she said, adding, "Virginia Slims, Parliament, Merit and B&H speak to different adult audiences and we will grow those against the core positioning of those brands."

Recently, Philip Morris broke new campaigns for Merit, Benson & Hedges and Parliament. Ms. Lund won't discuss plans for the other brands, nor would she discuss plans for Accord, the marketers' high-tech smoke-free cigarette in test.

LOOKING FORWARD

Whatever direction she takes, however, Mr. Dudreck is certain it will be forward.

"Nancy does not look in the rearview mirror," he said.

Nor, he predicts will she have any difficulty navigating the new tobacco marketing environment in the wake of the states' settlement with the industry.

"She's a change agent," he said.

Ms. Lund shrugs off the suggestion that there is a major marketing upheaval coming post-settlement.

"We always operated in a restrictive environment," she said. "We are really

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