TOBACCO STRAT1FGY IRF-VTFW TEANI
STATE FXPRFSS 555
RFVIEW TO DECFMBFR 1991.
SUMMARY
191 Jan,
1990 Dec. % VAR % VAR 1991
MARKET ACTUAL ACTUAL VS. '90 VS. BUDGET
BUDGET
Domestic 1078.4 1238.6 14.9 22.0 1015.1
Export 11309.7 14624.3 29.3 8.2 13511.9
TOTAL 112387.1 15862.9 28.0 9.2 14527.0
OVERAL~ BUSINESS
There has been an impressive growth of 28 % over
1990 contributed mainly
by the export market.
DOMESTIC BUSINESS
The total domestic growth was 14.9% over 1990. The
highest growth in
percentage terms was in Bangladesh (229.3 %)
followed by Malaysia (32.6 %)
and Indonesia (12.6%).
FXPORT BUSINESS
The export business contributed 92.2% of total SE
555 sales and has shown
an impressive growth of 29.3 % over 1990. The
biggest contributor to this
z~
growth was Hong Kong exports (66.3 % growth over
1990).
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BATCo document for Province of BritiSh Columbia 25
October 1999


ANALYSIS - MAJOR MARKETS
Bangladesh
The tight control on transit cigarettes has led to
an increase in their price to
Tk. 70.00 per pack increasing the gap to around
Tk. 25.00 compared with
domestic SE 555. This has led to a favourabIe
increase of 229.3 % over 1990
and 221.4% over the budget figures achieving a
market share of 1.05%.
2. Hon-, Kone
Hong Kong exports contributed 54.77 % of total SE
555 sales during 1991
and on growth parameters showed a 66.3 % increase
over 1990. The market
share figures went up from 11.4% to 13.3 % in 199
1.
The market was buoyant during December 1991 in
response to the Chinese
New Year festivities in February 1992.
Indonesia
The year ended with a market share of I - I % for
SE 555 and showed a
growth of 12.6 % over 1990. The increased prices
of Kreteks have continued
to help the white cigarette segment. The growth
has been in the international
segment which reached 14.1 % share of the white
segment. However the
growth has been highest in the USIB segment which
accounted for 80 % of the
Inter-national se2ment in 1991 compared to 70% in
1990.
4. Thailand
The brand has been in the market since September
1991 and has a share of
imports of 12.8 %. The brand itself showed an
increase of 9.8 % in
December. The volume over the September - December
peniod was 43.6
million. The hiehest share of 38.1 % is held by
Marlboro with a volume of
136 million. Kent & Lucky Strike have 4% and 10%
share of imports
respectively.
Malavsia
Malaysia showed an increase of 32.6 % over 1990
and closed the year with a
market share fieure of 1.7% gaining 0.4 mns.
points from 1990.
The price for the brand has been held at MS 2.00
in 1991 and has recently
been increased b% . 10 c. and future sales would
indicate the effect of the price
increase.
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110
BATCO document for Province of British Columbia 25
October 1999


Ghana
There has been a drop of 0. 3 % over 1990 brought
about mainly by the
increase in price. The market share figure
remained static at 11.6%.
K1 :Y ISSUFS
Advertising
Crea6ve execudons were presented and discussed in
a regional marketing
meeting in Kuala Lumpur. As a reminder, the two
copy routes were:
A) SE555 is the smoothest and most satisfying
cigarette (key benefit).
SE555 can deliver this because of its unique blend
of the finest Virgin ia and
Oriental tobaccos, which results in a high quality
and smooth smoking
experience (reason why).
Creative executions: "Silk"
B) SE555 is perfect balance (key benefit).
SE555 offers the perfect balance of smoothness and
satisfaction
with its unique blend of Virginia and Oriental
tobaccos with a distinctive pack
design graphic, the three fives within the perfect
symbol of balance, a circle
(reason why).
Creative execu6ons: "Spinning top", "Planet"
As a result of discussions carried out during this
meeting, further creative
development work will be carried out on the
"perfect balance" route aiming at
an expression of inner calm, equilibrium, harmony,
being at ease with
oneself, more than a literal visual of balance.
Once this material is reviewed and approved
internally, it will be researched
in Taiwan and several cities in China. This is
expected to take place in
March.
2. Packaging and Product
Line extension pack designs and blend for SE555 Li
ghts, International and
100's are well underway and almost finalized.
These designs will be
researched in a TOT through the 2nd quarter 1992.
Un
A new crest is currently in the design process to
have ready available in case CD
the Royal Warrant usage is terminated. U-
co
CD
BATCo document for Province of British Columbia 25
October 1999


STATE F3CPRF',q 555
MARKET MARKET 1991 1991 1991
DOMESTIC 1990 SEL&RE, % 1991 SHARE % VAIL% VS
VAIL% VS BUDGET
1990 BUDGET
MA.LAYSIA 241.2 1.3% 319.9 1.7% 32.6%/ 16.9% 273.6
GHANA 190.6 11.6% 190.0 11.6% -0.3% 31.9% 144.0
DiDONESLA 198.6 1.2% 212-3 1.1% 12.6%, 32.7% 160.0
SINGAPORE 96.7 2.7% 96.4 2.7% -0.3% 10-9% 8&9
HONG KONG 90.1 1.3% 53.8 1.0% -40.3% -40.0% 19.7
MAURITIUS 93.2 6-8% 87.1 6.6% 4.7% 9.4% 79.6
MA.LAVFI 71.3 7.1% 80.1 &4% 12.3% &1% 7CI
BANGLADESH 41.0 0.3% 135.0 1.0% 229.3% 221.4% 42.0
BARBADOS 24.1 14.2% 21.9 18.3% -9.1% -&a% 23.8
CYPRUS(GREEK) 23.3 1.9% 21.4 1.7% 4L2% 7.0% 20.0
JCENYA 11.1 0.2% 11.4 0.2% 7-7% 44.3% 7.9
SIERRA LEONE 13-2 1.0% 5.6 0.3% -57.6% -44.0% 10.0
TRINIDAD 3.8 0.4% 3.3 0.4% -7-9% 6.1% 3.3
BRA771 0-2 - 0.2 - 0.0% 0.0% 0.2
TOTAL DWIESTIC 1078.4 1238.6 14-9% 22.0% 1015.1
FXPOWr,rDUTY FREE
BATIJKAE 5296.7 5434.2 2.6% -13.4% 6424.2
FAS EAST 4170.3 4147.0 -0.6% -22-9% 3377.3
EUROPE 45.0 50.3 12.2% 23.2% 41.0
MIDDLE EAST 597.2 621.4 4.1% 14-9% 340.3
AFRICA 215.0 309.4 43.9% 97.4% 163.1
W. HEMISPHERE 269.2 30" 13.6% LD% 299.8
CMA - 5224.1 11.4% 969&9 13.3% 66.3% 34.3% 6472.0
HONG KONG 297.0 265.5 -10.6% 3.3% 253.7
SINGAPORE 278-2 142.7 -".7% -".5% 25&9
CYPRUS(GREEK) 104-9 17.6 -83.2% .2.2% 1&0
AUSTRALIA 3&.9 19.7 49.2% -21.2% 25.0
MAURITIUS 1&4 13.6 -17.1% -9-3% 15.0
PANAMA 15.4 2.4 -77-9% -622% 9.0
MACAO 10.7 &6 -19.6% -3.3% 9.1
SRI LANYA 6-2 4-9 -22.6% -30.4% L9
SOUTH AFRICA 12.0 L3 -30J% -21.0% 10.5
BRUNE 4.6 4.0 -13.0% -13.0% 4.6
BANGLADESH 2.2 7-0 - - 1.9
KENTA 0-9 0.4 -55.6% -69.2% 1.3
BARBADOS 0.8 1.5 97.5% 114j% 0.7
MALAWI -.- 0.7 &5 .1114.3% - 0.0
TRINMAD 0.0 0.5 -W.0% 1.0
SIERRA LEONE 0.0 0.0 0.0
BRUNTI (D/F) 0.1 0.1 - 0.1
TOTAL LXPORTIDUTY FREE 11309.7 14624.3 29.3% 9-2%
13311-9
GRAND TOTAL I239Ll 15862.9 ZLQ% 9.2% 14327.0
SRAILE OF WTIITES
SHARE OF UJIPORT SEGMENT
C)
Co
BATCO document for Province of BritiSh Columbia 25
October 1999