Philip Morris International is undergoing a significant transformation influenced by digitalization, advancements in artificial intelligence, and shifts in consumer behavior. Roman Ivanov, Director of New Products at Philip Morris Ukraine, discussed these changes during the NV event “Great Digital Transformation.”
Traditionally viewed as an offline business, Philip Morris is now increasingly focusing on digital interactions with consumers and product development. Ivanov noted, “Our consumer is becoming more demanding. On one hand, people do not want excessive communication, calls, or SMS, but at the same time, they expect their favorite brand to be available with the best offer at the right moment.”
A key aspect of this transformation is the company’s evolving product portfolio. Philip Morris’s strategy for a smoke-free future involves a gradual phase-out of cigarettes in favor of innovative nicotine products, necessitating new technological solutions. This shift is making the business more complex and reliant on digital tools.
In Ukraine, the ecosystem for Philip Morris’s new products includes e-commerce platforms and chatbots on Viber and Telegram. These digital solutions also aid in optimizing internal processes. The company’s call center handles approximately 2.7 million calls annually. The implementation of a CRM system and auto-dial technology has resulted in an estimated saving of 8,000 working hours each year.
Personalized communication is another focus area, utilizing artificial intelligence to determine the optimal timing and channels for customer interaction, whether through SMS, messaging apps, or phone calls. Ivanov explained, “Different people perceive information differently and at different times. AI allows us to take this into account.”
AI is also employed to identify target audiences, optimize marketing campaigns, and plan distribution, including selecting locations for product sales. “We no longer communicate ‘to everyone, everything, at once.’ We know precisely where our consumer is and how to engage with them,” he added.
Ivanov emphasized the importance of omnichannel availability, stating that the company’s products are accessible through both offline stores and online channels, with all sales points integrated through data exchange. “This makes the business more resilient. Diversification of channels is critically important, especially in the context of Ukraine,” he remarked.
Despite the active integration of AI, the company does not view it as a universal solution. “It is not a panacea but a tool. We use it where it truly enhances the customer experience,” Ivanov clarified. He cited the example of a shopping cart generator on the website, which allows users to input or dictate a list of products, with the system automatically creating an order.
While AI is being actively implemented, the company does not plan to fully replace human workers. Call centers, in particular, remain a vital component of customer service. “If a person is calling, it means they need live assistance right now, and it is our agent’s responsibility to provide that service,” Ivanov concluded.
Philip Morris International is adapting its business model in response to digital advancements and changing consumer preferences. The company is focusing on a smoke-free future while enhancing customer engagement through digital tools and artificial intelligence.