by Robert Powell
All the offices in Philip Morris USA’s new Center for Research and Technology in downtown Richmond measure 10 feet by 10 feet.
The spaces are small because the company wants to nudge its scientists, engineers and marketing people away from their desks and get them talking about new product ideas. The $350 million building in the Virginia BioTechnology Research Park in downtown Richmond is designed to “drive collaboration and innovation,” said Richard P. Solana, the company’s senior vice president of research and technology.
Solana talked about plans for the 450,000-square-foot center Thursday morning during a tour arranged for about a dozen journalists. The building, where 100 employees now work, eventually will house 500 workers. The center will focus on developing new tobacco products and finding ways to reduce the harm caused by smoking.
The U.S. cigarette industry generated $70 billion in sales in 2005, roughly the same total revenue as soft drinks. But the volume of cigarettes sold has declined by 2 percent a year for the past 20 years.
Philip Morris’ response has been an “adjacency strategy.” in which new products build on the strength of existing brands such as Marlboro. For example, the company is test marketing Marlboro Virginia Blend, a cigarette using Virginia flue-cured tobacco, and Marlboro Snus, a smokeless tobacco product.
Philip Morris expects the center to spark a host of new product ideas. The space is set up for creative brainstorming. Groupings of chairs and tables throughout the building are often accompanied by a white board, even in the company cafeteria and the break room. The interior is filled with glass and open space, and cubicle partitions are low so that employees on the same floor are always within line of sight of one another. Also, offices are grouped by projects rather than field of expertise so that employees working on a new product can quickly get together.
One third of the space is devoted to laboratories. Another section is used for market research. In some rooms, researchers behind one-way mirrors will watch groups of consumers discuss their product preferences, while in other rooms customers will fill out questionnaires.
Solana noted that some of the center’s work will involve “sensory research,” finding ways to make new products appealing to consumers. He noted that years ago Philip Morris developed the Accord, a battery-powered cigarette designed to reduce ashes and smoke, but it failed to gain acceptance among consumers.
The 56 –year-old Solana, who does not smoke, has two personal goals for the technology center: reduce the harm caused by smoking and ensure that Philip Morris remains a viable, growing company. He is confident the facility can achieve both goals. “Great ideas come from smart people working together,” he said.
