Interview by Ivaylo Lakov
Denys Strobykin's career at Philip Morris International (PMI) began nearly 20 years ago in the finance department of the company in Ukraine, after which he held various sales and marketing positions in Moldova, Poland, and Romania. He joined the team in Bulgaria as General Manager, after three successful years as Director of Marketing and Digital in Romania, where the team he led implemented numerous product and consumer engagement initiatives resulting in significant progress in transitioning adult smokers to PMI smoke-free portfolio. 10 years after PMI’s main smoke-free alternative IQOS was first introduced in the world, we are asking Denys about his plans for the company in Bulgaria.
Philip Morris International is celebrating 10 years anniversary since IQOS was first introduced in the world. What has been the greatest achievement so far?
Over the last ten years, we have consistently innovated and expanded our portfolio of smoke-free products driven by consumers’ needs and expectations and backed by science. The numbers speak for themselves: according to our most recent results, our smoke-free business accounts for 38% of our total net revenues. Total users of our main smoke-free alternative are estimated at 30.8 million, of which approximately 22.1 million have fully switched to our main smoke-free alternative and stopped smoking. Notable change is seen in Japan, the country where smoking rates have been significantly decreasing since 2014.
I am nothing but proud of the progress that we have made, of the change of mind, the transformation, and the disruption to the industry that we have achieved. Our 10-year anniversary is dedicated to celebrating together with IQOS community around the world the evidence that better alternatives to smoking cigarettes transcends geographical boundaries and cultural differences. We live in a dynamic environment that fosters innovation, driven by science and technology – a journey towards a better smoke-free future.
Tell us more about your career path before joining Philip Morris Bulgaria and what your personal goals are as a head of the company in Bulgaria?
I joined PMI in the first years of this century and I consider myself fortunate to have witnessed the company’s transformation firsthand. I saw the shift in the company focus from traditional business towards smoke-free vision and the mission of PMI to put an end to cigarettes one day. We all had to unlearn things from the past and learn new ones, explore new areas. We needed to understand better how to be consumer centric, how to do digital, how science supports our mission, how to run our own retail, how to disrupt a durable business model by doing something completely new and revolutionary.
The mission when it comes to the business in Bulgaria would be the same as my predecessors. This is the mission we defined many years ago to make sure that as many smokers as possible, who do not quit, transition to be smoke-free users. At the same time, focusing more inwards within the company, my personal objective would be to continue developing the organization as a source of talent within PMI. We have many bright people here; the organization is very dynamic and agile, and I believe we will continue to grow in the years to come.
How would you compare all these markets you worked in to the Bulgarian market?
My experience has taught me that every market is unique despite the similarities they may have. All the markets I’ve worked in are in Eastern Europe and they all had a Soviet influenced past. However, even if they may share some similarities, they differ. When I moved from Poland to Romania, I realized that everything I knew about the Polish consumers did not apply to the Romanian ones. Here in Bulgaria, I can already tell that some things are relevant only to the local consumers, while others that I saw in Poland and Romania are completely irrelevant here. Every market has its unique cultural demands and consumer behaviors and I’m excited to explore the specifics of the Bulgarian ones.
What plans do you have for the Bulgarian market?
In Bulgaria we still have a lot of work to do. Yes, we have made very good progress – 400,000 adult users here have already switched from cigarette smoking to IQOS. The cigarette smoking prevalence in Bulgaria, however is still the highest in EU, so there’s much work ahead of us. We are now working to expand the smokeless portfolio to facilitate this shift from smoking to smoke-free alternatives. We invest heavily in our efforts to explain the science behind our products, and we try to make this explanation simple and easy, as well as make the adults consumers understand and feel how bare scientific facts relate to their way of life. We also explore the sense of belonging within the growing IQOS community.
We introduce innovation practically every year, for example, last year we launched IQOS ILUMA which is the new generation of IQOS, offering a new induction heating technology. We are also trying to meet the expectations on the market for various price ranges that can satisfy more adults consumers and allowing every smoker to find the right smoke-free alternative for them.
Where is the company heading in the next ten years? What role will innovation play on this road?
PMI’s next phase of growth highlights our ambition for smoke-free products to account for more than two-thirds of our total net revenues by 2030. Our focus remains on transitioning the business from cigarettes to smoke-free alternatives, while also leveraging our capabilities to expand into new wellness areas to deliver innovative products and solutions that aim to address unmet adult consumer needs. This is a natural evolution for PMI that will further transform our business into a broader lifestyle, consumer wellness and health-related company in the future. It is an ambitious evolution that will not only deliver on our sustained commitment to achieving a smoke-free future, but also in the development and commercialization of scientifically substantiated products beyond tobacco and nicotine.
We believe that with the right regulatory framework and support from policy makers and civil society, cigarette sales in many countries can gradually end within the next 10-15 years. And this is what defines our overall strategy in all corners of the world where we operate, including Bulgaria.