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Note to MIr B D Bramlev TSRT >1
(aEC'D - 14 FEB 1992
).2
I UCKY STRIKE. BARCLAY AND KENT IN BATCo's MARKETS
Proeress Rer)ort
The following are the salient points:
LUCKY STRIKE
a) New Communimflons Proeramme
The "Nothing Else" campaign which started in the
Netherlands in November has
helped double awareness after one advertising
burst. The level of awareness at
10% remains low but has jumped dramatically.
The campaign starts in Switzerland on February 23
and in Belgium (as far as the
restrictions allow) on February 28. It will be
tested in Spain in March.
b) 20s HLB in the Netherlands and Finland
This new version priced at parity with MARLBORO in
the Netherlands and
available only in tobacconists and larger petrol
stations is performing to plan. The
decision whether to withdraw 25's will be taken in
April.
STOY launched a 20s KS HLB version this month at
parity with MARLBORO
c) Price RelatiAties
The price increase in Spain was higher than
expected. The gap between LSF and
FORTUNA increased significantly and the gap with
CHESTERFIELD increased
marginally. 411
The simulated test market in Singapore will take
place in the Second Quarter after
the expected duty and manufacturers increases in
the budget have been absorbed by
the consumer. There is a possibility that PMI will
not increase MARLBORO's
price which would narrow the relativity.
LSF in Belgium will be raised to parity with
MARLBORO on March 1. On the
same date BAT Switzerland will increase LSFs price
to Sfr3:00 to match
CHESTERFIELD, leaving it 10 centimes below
MARLBORO.
d) Product Imarovement
An OMEGA panel and a consumer pre-selection test
in Spain has screened three
blends down to one. This is basically the General
Export blend with 15% local
leaf. A consumer product test of this blend versus
current and versus
"lARLBORO amongst own franchise arid a MARLBORO
franchise is taking place
ffiis month with results due end Ma,,h.
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BATCo document for Province of BritiSh Columbia 25
October 1999


-2 -
LUCKY STRIKE FILTER scored better than MARLBORO on
sensory and
physical attributes in a product space mapping
study in November in Switzerland.
17 his is not a measure of consumer preference but
is an excellent result.
STOY is reducing the Oriental content to 18% in
line with Brand Integrity.
e) Ne~ EC Health Warninus on-oack
These were adopted on January I across all brands
in Belgium and France.
f) Distribution
BAT Espana has hired 20% more salesmen to improve
the brand's total
distribution.
g) Honz Kon2/Araentina
The Total Offer Test using the Biker campaign is
in the field in Hong Kong.
Nobleza-Piccardo is urgently evaluating the
opportunity to relaunch the brand.
h) Lights
Share of Lights in Luxembourg remains steady at 0.
1 %. Lights in Singapore
launched one price tier above the Parent last
November is performing to
expectations.
i) The Resoonse to MARLBORO Medium
BATCo's European and certain Far Eastern companies
expect PMI to roll out
MARLBORO Medium this year. PMl has reduced
deliveries of MARLBORO
Lights in many European markets. In Switzerland
PMI has changed MARLBORO
Gold's name to MARLBORO Lights. BATCo has
requested an urgent response
from the Brand Owners who are testing options in
Japan.
WINSTON Medium has already been launched in Hong
Kong as a spoiler.
j) Team LUCKY STRIKE Suzuki
BATCo is funding the 250cc two rider team on its
own in order to deepen the
Group's exploitation of the Suzuki Sponsorship.
One rider is Spanish, the other
Dutch.
The 500cc riders are both American. BWI funds the
500cc sponsorship.
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BATCO document for Province of BritiSh Columbia 26
October 1999


-3-
PARCLAY
a) The BiL-est Market in 1991
BAT Nederland sold more BARCLAY in 1991 than any
other Group market. The
brand's market share in January 1992 was 6.3% in
the Netherlands.
b) The mode to 5m2 tar
BAT Benelux launched Ultra Lights in early January
and then launched the 5m.-,
Parent with the new EC Health Warning. In January
the Family share was 6. 1 %
with Ultra Lights gaining 0.8 %. Market share for
1991 was 5. 1 %. No consumer
or trade complaints have been received so far.
STOY will launch Ultra Lights and change the
Parent's deliveries in the Second
Quarter. A menthol Ultra Lights version will also
be launched.
c) Arsentina
The launch has not been successful and an urgent
analysis of the reasons is being
carried out. Executives from Nobleza-Piccardo
wi.11 visit Holland this month to
learn at first hand about BAT(N)'s success.
d) Communications
Grey Advertising has been appointed to handle the
BARCLAY account in
BATCo's markets. BATCo will develop the
advertising direction in conjunction
with BATCF and BWI. The copy strategy will be
developed by early March.
e) Formula One Snonsorshin
BATCo, BWI and BATCF have contributed to the 2
year deal with Eddie Jordan
Racing. The exploitation programme has commenced.
Ile first GP race is in
South Africa on March 1. The main sponsor is
SASOL, the South African oil
company.
f) SpALin
It is a major priority for BAT(E) to test market
BARCLAY in 1992. Plans are
being finalised.
g) Ime Version
The opportunity and consumer need for this version
is being rethought by BATCo.
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BATCo document for Province of British Columbia 25
October 1999


-4- 0
KEN'T
a) Market Position/Re-examination
KEN7 dropped share in Hong Kong in 1991 to 11. 1
%. The brand has a good
image in Malaysia and Singapore but is not
dynamic. A re-examination will be
undermkea with B&W to derive testable strategies
in the Far East as soon as
possible.
b) One AdvertisinL, Aeencv in the Far East
Grey has been appointed to handle the KENT account
in the Far East including
China.
C) Parent Deliveries in Nfalavsia
MTC is working with BW1 to reduce the deliveries
of the Parent style to conform
with Brand Integrity.
d) Re--ional SDonsorship
7 be golf proposal which was to be manage-d by IMG
was cancelled for 1992
because the players available for the cost were
not thought to warrant high TV
cDver. BATCo will work with BW1 to establish a
regional sponsorship in 1993.
e) Li2hts
The next shipment to Hong Kong which will get to
the market in June will contain
product at 9.5mg tar enabling a Low Tar rating to
be put on pack. KENT Parent
and MARLBORO Lights are in the Low to Middle Tar
category.
BATCo has noted that BATCF will cancel the Lighr-s
test market in Munich
because the offer lacked an unique promise. The
pack design red colour was not
liked. BATCo has no plans to examine the potential
for KENT in W. Europe
unless BATCF and BW1 agree a major re jig of the
marketing mix for Li.ghts.
jo~~-
I G HACKING
14 February 1992
cc: Messrs.J Rembiszewski
I A Ross
M Norsworthy/G J Burgess
Un
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BATCo document for Province of British Columbia 25
October 1999