N4 ;-c, Re, * 12
At the present time, the Group's five identified
IFB drive brands (B&H, SE555, Lucky
Strike, Barclay and Kent) account for 17.9% of
BATCo's total sales volume and 27.6% of
contribution net of communications expenditure
(see Table IE opposite). A key feature of
this Plan is the increased focus, and hence profit
growth reliance, which is to be placed on
these brands. Recognition of this is reflected in
the strengthening of the role of the HQ
marketing function, both in temis of its influence
and control over brand management and in
its adoption of profit responsibility for the key
international brands.
Over the plan period, SE555 is expected to
supersede B&-H as the largest BATCo
international filter brand in terms of both volume
and net contribution. The relative
importance of this brand to BATCo's overall
financial performance is even greater if viewed
in terms of its impact at the UK PAT level.
1.4. UK International Rranefq
The overall product objective for Benson & Hedges
and SE555 is to achieve total product
superiority against directly competing
Intemational Brands in the market. For Players
Gold
Leaf, the objective is to achieve superiority
against the best premium local brand (or transit
brand where applicable) in the market.
1.4.1. Benson and Hedges
The prime objective for B&H is to grow the brand
in priority established markets, through
widening its appeal to younger/middle market/local
brand smokers, and by a disciplined
programme of image, pack, and product consistency.
In particular, BATCo is targeting B&H's share of
the IFB segment (excluding the USA,
Canada, Germany and Brazil as well as the UK and
Ireland) to grow from 3.3% in 1991 to
3.6% in 1996 (13.8% to around 16% of the UKIB
segment). This is in excess of the
Operating Company projections shown in this plan
of 3.3% and 15.1 % respectively The
growth projected for B&H in its key markets in
this plan is shown in Table IF opposite.
The principal strategies being deployed to achieve
this growth are:
i. Establishing a single, big, unique positioning
idea/image that is relevant to all the brand
versions, media, markets. and smokers.
ii. To ensure that product smoking characteristics
are superior to competitive international
brands. and to establish product consistency,
wherever appropriate, across all markets.
iii. Streamlining the family versions down to
Special Filter, Golden Mild and Special Mild
(including 100s of all 3) and Ultra Nfild in all
regions.
iv. Identifying an optimal descriptor for low
delivery versions, introducing Golden Mdd
Lights into France, Greece and priority markets in
Africa and test marketing of Ultra
Low smoke in France and Low Smoke in Switzerland.
v. Improving awareness of the brand and its
advertising, and concentration of me-dia
expenditure on the parent brand.
vi. Development of powerful sponsorsbip/TMD ideas
which relate to the target market and
build with the ATL theme, and investigation of
'alternative media'.
vii. To establish visual consistency across all
markets, i.e. design, colour standards, tipping
colour, dye print registration etc., and to
introduce an environmentally friendly pack.
viii. To maximise the potential of a low
sidestream offer.
BATCo document for Province of British Columbia 25
October 1999


Table IE BATCo rn Di,e Brawk
G rowth % CGR (%p.jL)
1992 92/91 JM 19%
Voluine (bms)
B&H* 17.3 16.1 17.2 2.8 19.9 3.4
SF555 12.4 15.2 17.2 13.2 22.1 7.8
Lucky Stnke 4.8 5.9 6.9 16.0 11.0 13.2
Barclay 2.7 3.3 3.7 11.4 4.7 7.2
Kew S. I 8.4%-L 8.91.1 6.9~~-. 12.2,0 16 7.9 L~ 2.
Others ~i If jAfv 24#1,11, '1-
-
6.
qjEj 5.3 763.8 3.7
Total BATCo W
.5
I ~ t - 1 269 5.9 344.2 4.4
-Excluding Germany
Contribution lp,; communi~tions orDenditure (Emn)
B&H _. . 113.4 111.9 117.3 4.8
SE555 91.7 130.0 136.3 4.9
Lucky Striket -5.4 -4.1 -3.7 DA.
Barclay 15.3 17.4 19.8 13.5
Kent
O
b 24.3 25.2
6 331-PA"
793 26.2
,0 C'(' -
290, 3.8
-?
~
L
ers
Total BATC. .
?0 0 19iff'911' 110 15 0 .
~140 .
-3--e
oExcluding Gernuoy L61
Table I
Europe*
L.uLo Ameri-WH
Africa
AusLraiasiz
F. Est
Middle East
Indian Sub-,;oniinent
ToLai*
Key BATCo %farkets:-
South Affica -Volume (bn)
- Share (%)
Malay.sia - Volume (be)
-Sb.re (%)
Australia -Volume (be)
-Share (%)
Units I & rl - volume (be)
Renson & Hede- Sal- (bns)
Growth M
19" 1991 15"2 2z U9
3.3 3.3 3.4 3.9
0.2 0.2 0.3 15.4
4.7 4.8 5.0 5.1
5.0 4.5 4.2 -6.1
3.5 3.5 3.9 9.7
0.5 0.5 0.5 -1.0
0.0 0.0 n. a.
17.3 16 8 J7.2 2.9
_
'Excluding German,
2.7 2.9 3.1
8.3 9.1 9.6
2.2 2.1 2.1
11.7 11.5 11.3
3.6 3.0 2.7
10.3 8.8 8.0
1.2 1.1 1.2
1994 19%
3.6 3.7
0.3 0.3
5.6 6.0
4.2 4.3
4.5 4.8
0.5 0.6
0.0 0.0
18.6 19.8
CGR (%p.&.)
2.9
5.6
4.6
-0.7
6.6
3.0
2.7
3.4
7.4 3.5 3.8 5.3
10.4 10.6
-0.3 2.1 2.0 -0.4
11.2 10.9
-9.6 2.7 2.7 -1.9
8.0 9.5
6.8 1.3 1.4 4.1
E
N)
Ln
c0
U-1
NJ
U-1
BATCo document for Province of British Columbia 25
October 1999


13
The projected contribution and communications
expenditure for B&H are shown in Table I G
opposite.
The priority market in Asia is Malaysia, -here a
1992 re-launch of B&HSF is being actively
pursued. This will embrace new agreed brand
positioning; a new international campaign; a
revised TMD programme; substantially increased
spend levels; and a new improved
product. MTC will potentially act as a test market
for the new international
posit ioning/campaign.
In Australasia, the brand will be supported ATL by
allocating international me-dia spend to
the region for the first time, and the core brand
campaign will be introduced through the
international press.
1.4.2. State Express 555
The prime objective for SE555 is to continue
building market share in the key markets of the
Far East, targeting particularly the male,
educated, higher income, urban, smoker in the
25-35 age group.
BATCo's specific target is to increase SE555's
market share of the IFB segment (excluding
the USA, Canada. Germany, Brazil, UK and Ireland)
from 3.05F. in 1991 to 4.3% in 1996
(12.5 T. to around 19 % of the UKIB segment). This
is in excess of the Operating Company
projections shown in this plan of 3.7% and 16.99.
respectively.
The growth and share projections for SE555's in
its key maLrkets are shown in Table I H
opposite.
Th e principad strategies being deployed to
achieve this performance include:
i. Development of an advertising campaign based on
a 'core' brand idea, for subsequent
use as an image platform for the family. Harmony
and Quality are the two concepts
being tested.
ii. Development of consistent pack designs for the
full range of SE555 variant, and
ensuring that packaging standards are met in all
markets.
iii. Establishment of the international blend
standard of Virginia +5% Agrinion in all
markets, and development of the necessary blend
altematives to cover the range of
variants.
iv, Ensuring premium pricing policy in all
markets. on the basis of superior product.
V. Continued sponsorship of Snooker and Badminton,
and development of a T.MD product
appropriate to the brand imagery.
The projected communications expenditure and
contribution from SES55 over the plan period
is shown in Table 11 opposite.
In Asia, ATL and BTL opportunities will be used to
build brand image and awareness. The
optimum positioning of SE555 will be reinforced by
the introduction of a premium line
extension. A Lights version will be introduced in
order to lower the age profile and to
capture the growing Lights segment. Sponsorship
and TMD activities will be supplied in
preparation for loss of traditional media.
ne key iniiia!ives to be taken in the Middle East
will be the maintenance of a strong in-
house sales operation throughout the region;
development of a special welcome kit for all
newly arrived sub-continental workers: and
introduction of a premium line extension.
CO
BATCo document for Province of BritiSh Columbia 25
October 1999


Volume (mns)
Share of IFB (%),
Sh-m of UKIB (%)o
Contribution (Lmn)
Sp.nd (Ema)
Contribution/miDe M
Spend/MWe (E)
Bertson & Heel- - Overall
Growth CGR (S
12 N I"t 12n am 12P4 122fi 12R-Lft
172&4 16772 17238 2.9 19642 19777 3.4
3.6 3.3 3.3 3.3 3.3
14.9 13.8 14.0 14.7 15.1
149.5 147.9 160.0 9.2
35.1 36.0 42.7 18.5
8.60 8.92 9.28 5.2
2.03 2.15 2.48 15.3
*Excluding US. rmads, Bmzd, Germany, UK and
Ireland.
Table IH SE555 : Sal- (bns)
Growth CGR (S p.a.)
1990 1"1 1"2 92/91 1"4 1M L" I - 1996
Europe 0.1 0.1 0.1 87.2 0.2 0.3 27.1
Latin Americ-AWH 0.3 0.4 0.5 28.1 0.5 0.6 10.8
Africa 0.6 0.7 0.5 -24.0 0.6 0.6 -3.9
Far East 10.6 13.3 15.3 15.9 17.3 19.9 9.5
Middle FAA 0.7 0.7 0.7 0.5 0.7 0.7 2.5
Indian Sub-continent 0.0 0.1 0.1 -56.1 0.1 0-1
-14.9
TOW J2_4 _IQ J7.2 13.2 -M 7.9
Key BATCo Markets:-
HK exports -Volume(bn) 5.2 8-2 9.8 18.2 11.5 13.3
10.1
- sh.m~ %) 11.4 13.3 13.4 13.9 14.3
SUTL Volurnaft) 2.8 1.8 2.4 34.5 2.7 2.9 9.0
Taiwan -Volume(bo) 1.0 1.4 1.3 -7.1 1.6 1.7 4.8
Table 11 SE555 - O,erall
Growth (%) CGR (% p.a.)
92/91 1"4 12g 1991-1996
Sales (mns) 12398 15179 17189 13.2 19986 22122 7.9
Share of IFB 2.6 3.0 3.3 3.5 3.7
Sbare of UKIB (90* 10.6 12.5 14.0 15.7 16.9
Contribution (Lmn) 99.3 140.9 154.2 9.5
Spend (Emn) 7.6 10.9 17.9 64.9
Contribution!mille (-Ir) 8.01 9.28 9.97 -3.3
Sp~nd/mille (E) 0.61 0.71 1.04 46.5
USA, Canada, Brazil, Germany, UK and Ireland
(-n
CD
00
(A
rQ
-14
BATCo document for Province of British Columbia 25
October 1999


14
In Africa, mLrketing initiatives -ill include
improvement of the quality of product,
packaging and communication prints to meet
international standards; use of international
print media to reflect the international character
of the brand; increased support behind the
brand; and the introduction of a SE555 Lights line
extension.
In the Western Hemisphere, availability of SES55
will be increased to US Asians outside the
Chinatown outlets, and brand awareness and image
will be reinforced by outdoor advertising
and by gift packs for Chinese festivals.
1.4.3. Players Gold Leaf
The prime objective for PGL is to defend its
dominant position in the Sub-coatinent and a
number of African markets. The growth projected in
its key markets in this plan is shown in
Table 11 opposite.
The principal brand strategies underlying the
projected 4% p.a. growth include:
i. Establishment of a core proposition and brand
personality replicable across all major
markets.
ii. Development of a communications campaign which
exploits the brand's heritage, and
which features consistenidy and forcefully the
brand identifier (Sailor's Head).
iii. Development of a merchandising manual.
iv. Establishment of a 'best quality' core blend,
plus blend guidelines for Lights, Menthol
and 100s variants.
v. Development of packaging to international
standards, including Mild Ligbts, Menthol,
and 100s variants.
vi. Improvement of quality and PQRS quality
standards, including wrapping material
printing. to intemational levels.
vii, Aggressive expansion into new markets after
its quaJity has been satisfactorHy
improved.
Projected performance of the brand overall is
shown in Table I K opposite.
In the Sub-continent the key initiatives for PGL
include a limited increase in cornmunication
spend only to cover media inflation; special
emphasis on quality improvement; the
introduction of PGL Mild/Lights in Pakistan,
Bangladesh and Sri Lanka to take advantage of
the emerging trend towards Mild brands; and the
test marketing of PGL in Bangladesh using
the proposed brand positioning. advertising
campaign, and merchandising material, in order
to evaluate the effectiveness of the PGL package
before extending it to the remaining
markets.
In Africa, PGL's position in the premium segments
in Nigeria and Cameroon wi.11 be
defended. Support levels will be increased
substantially.
In the Middle Ew, PGL phase Ill pack design will
be launched in a twin ten version. Over
time, it is inzended to reposition the brand from
its current positioning in the low-price
segment into the mainstream price segment.
1.4.4. John Player Special
1 PS's offer -ill be standardised world-wide, to
avoid further fragmentation. No further
development or support expenditure will be
incurred by the centre. CO
BATCo document for Province of British Columbia 25
October 1999


Table 11
PGL Sal-(bns)
Growth CGR (% p.a.)
Utin Ameri
aAVH 19" 1991 12L2 92/91 1994 1"6 jVj_1 9b
c 0.1 0.1 0.1 -5.2 0.1 0.0 -4
9
Africa 1.5 1.2 1- 3 3.7 1.6 1.6 .
5
0
Far East 0.4 0.3 02
' -10.9 0.2 0
2 .
-4
7
Middle Fast 1.7 1.9 2
0 5.0 2.4 .
2.6 .
5
9
Mian Sub-continent 4.6 5.5 6.3 5.7 6.2 .
3
9
Total 8.2 8.6 9.1 5.0 10.0 10.6 .
4.2
Key BATCo Markem.
Pakistao - Volu~ (bn) 2.2 2.2 2.3 5.6 2.4 2.7 4
1
-Share (1.) 6.8 7.2 6.9 6.8 7.2 .
Bangladesh - Volul- (bn) 1.3 1.7 1.7 5.7 7
1 I
s
-Share (%)
9.0
12.2
12.6 .
11.6 '
11
8 1.2
Sri Lanka - V-1,im-- (bo) 1.2 1.3 1.4 8.3 1.6 .
1.8 6
9
-Share (1) 22.7 23.7 25.5 28.2 30
4 .
Nigeria - Volu-_ (ba) 1.2 0.9 0.9 6.9 1.1 .
1.1 6
5
-Share (1) 12.8 12.2 12.8 15.4 15,4 .
Table I
PGL - 0,erall
CGR P.3-
1991-1995
Gromb %
1990 1991 1992 92191 1994 1996
Sales volume (mn) 8202 8643 9073 5.0 9967 10642
Share of IF B (%)- 1.7 1.7 1.7 J. 8 1
8
Share of UKIB (%)- 7,0 7.1 7.4 .
7.9 8
1
Contribution (E.) 21.1 26.5 33.3 .
2 S.9
Spend (E=) 1.7 1.8 3.2 82.1
Contribuiionimill. (r) 2.57 3.06 3.67 19.9
Sp-od/mille (L) 0.20 0.20 0.36 80.0
Excluding Zaire
'Excluding the USA, Canada, Brazil. Germany, UK
and Ireland
4.2
r-j
rQ
BATCo document for Province of British Columbia 25
October 1999