TOBACCO STRATEGY REVIEW TFAM
PT AYFRS GOLD LEAF
REVIEW TO DECEMBER 1991.
1 . SLMMARY
% VAR
1990 1991 % VAR VS. YEAR
ACTUAL ACTUAL VS. '90 BUDGET BUDGET
Domestic 6096.2 6740.5 +10.6 -5.7 7147.6
Export 1837.2 2163.0 +17.7 +44.1 1501.-1
TOTAL 7933.4 8903.5 1 +12.2 +2.9 8649.0
(a) 0%---RALT PERFORMANCE.
Total PG--, sales in 1991 were 12.2% higher than
the previous year.
Compar-.-- zo the budget, sales were 2.9% higher.
Players C---Id Leaf volume growth continued in 199
1. Over the last four years
(1987/1911-7') the brand has grown by 22.6 %.
PGL's av---aze annual growth rate 91/96 is
expected to be 4.2%.
(b) DOMESTIC MARKFTS
In the domtstic markets, the brand is growing in
Bangladesh, Sri Lanka,
Pakistan a::d Zaire and is gaining share in
Nigeria whereas it is under
pressure -:- Malaysia and Cameroon. 1991 sales
performance is + 10. 6 %
over 1990 2.nd -5.7% compared to budget.
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(c) FXPOR-~.
BATUKE expo:-s for 1991 are 17.8% up on 1990 and
43.8% higher than
budget.
2. MAJOR 14ARKFT COMMENTS
(a) Sub-Con-Inent.
Pakistan:
PGL pnict is now slightly above U.K./U.S.
international brands. This
has imprc-,;ed PGL volume. Most of this
improvement is at the
expense c-LDunhill.
PGL saltl in 1991 are +0.2% over 1990 but -6.4%
compared with
budget. '-FGL market share of legal market
increased from 6.8 % to
7.2 % (19-~0/1991) due to the decline in the leeal
total market by -5.3 %
compared with 1990.
PGL Li!z-'-- test market continues. The brand was
launched in Karachi
and Lahc--.. during the last quarter of 1991; it
continues to be
supported by T.V., press advertising, promotions,
sampling, etc. The
bulk of tht trial is generated from the parent
brand.
Ban-ladem-
PGL is sz-ongly progressive. Its sales in 1991
were 32.4% higher than
1990 and ' 3.8 % over budget. PGL market share
increased from 9.5 %
to 12.6% -.1990/1991).
High pric!s of transit brands continues to help
PGL grow.
PGL Mile'Lights are planned to be introduced in
Bangladesh at the
end of 19z2.
Sri Lank--
PGL zrouzh continues in Sri Lanka. In 1991 PGL
sales were 12.4%
higher thza the previous year. Market share grew
from 22.3 % to
24.0% (1:--90/1991).
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The thrust on PGL drive brand was maintained
throughout the year
with an increased level of promotion and POS
presence.
PGL Mild continues to have weak sales. It is
planned to re-launch
PGL Milds in 1993 (to cater for the health
conscious smokers).
(b) Middle East.
PGL continues to be progressive. Its sales in 1991
were 13.6% higher
than previous year and 41.5 % higher than budget.
PGL main markets in the Middle East are Saudi
Arabia and U.A.E.
21.6 % of total PGL volume is sold in the Middle
East.
BATUKE is going to launch PGL Phase II design
(same pack design
that BATUKE has in the Middle East) in the Israeli
occupied
territories in April 1992.
(c) A fTi ca.
Njg~dK
PGL came under pressure from international transit
brands as a result
of which "it lost some volume in early 199 1.
PGL sales declined by -1.3 % in 1991 compared with
1990 and -28.1 %
under bud 2et. However, market share increased
from 12.7 % to
13.3 % (1990/1991).
Recent improvement in PGL performance can be
attributed to down
trading from exorbitantly priced transit brands
and improved coverage
during last quarter 1991.
Historically PGL communications spend in Nigeria
has been quite low
which will be rectified during the plan period.
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Cameroon:
PGL has been under pressure from the growing
Menthol segment in
Cameroon during 1991.
PGL Menthol test market started in the first month
of last quarter in
Yaounde. The brand will go national in February
1992.
zai[L
PGL is strongly progressive. Taking volume from
Ambassad and its
sales grew from 25.2mn in 1990 to 205.4mn in 1991
and is 32.0%
higher than budget.
3. UPDATING OF GOLD T FAF STRATFGY PLAN.
Completion
Date
A. The role of the central IBM function in PGL.
In the case of PGL the central IBM function will
be only
responsible for the development of: End '92
Brand Positionine.
Communication Package.
New Pack Desism.
Thereafter Operating Companies will have to work
in
accordance with IBM euidelines.
B. Brand Positioning.
Brand positioning has been discussed with
sub-continent
countries. Feb. '92
Qualitative consumer research to check out current
position
in Pakistan, Bangladesh and Sri Lanka.
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C. Communication
Develop a new PGL advertising campaign based on a
single
big original idea which exploits brand heritage.
Jun. '92
Centre to provide advertising campaign. Jun. '92
Feature brand identifier (Sailor Head) forcefully
in all
brand communications. Ongoing
Improve brand/advertising awareness. Develop
merchandising manual. Jun. '92
D. Product.
To ensure PGL product enjoys distinct preference
over
competition in all major markets. End '92
Establish a "core blend" to be followed in all PGL
markets. Mid. '92
Develop blend guidelines for the development of
Lights,
Menthol and 100's variants. End '92
E. Pack Design.
Review the existin-, "International Pack Standard"
and
amend it as required. End '92
Develop Milds/Lights, Menthol and 100's variant of
the
brand. End '92
Develop packaging standards for the international
standard
pack. End '92
F. Oualltv Improvement.
Raise PGL PQRS quality standards to "Excellent"
over the
plan period. Gradual
Improve wrapping material printing to
International
standards. End '92
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G. PGL Test Market.
To conduct PGL test market in Bangladesh using the
proposed brand positioning advertising campaign
and
merchandising material to evaluate the
effectiveness of
PGL package before expanding its use to other key
markets. Sept. '92
H. New Markets.
Aggressively locate new potential markets for PGL
after its
quality has been improved. Ongoing
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PLAYERS Goy n Y FAF
DOMESTIC MAPJCE:T MARKET 1991 1991 1991
1990 SHARE 1991 SHARE % VAR-% VS VAR.% VS BUDGET
1990 BUDGET
PAKISTAN 2157.0 6.8% 2161.5 7.2% 0
2% -6
4% 2310
0
BANGLADESH 1280.3 9.3% 1695.1 12.6% .
32
4% .
13
8% .
1490
0
SRI LANKA 1173.9 22.3% 1321.2 24.0% .
4%
12 .
-2
9% .
1361
2
NIGERIA 917.4 12.7% 905.4 13.3% .
-1-3% .
-28
1% .
1260
0
MA.LAYSIA, 310.8 1.6% 244.1 1.3% -21.5% .
-7
5% .
264
0
CAMEROUN 138.2 4.3% 116.3 4.2% -15
8% .
-28
2% .
162
0
ARGENTINA 51.7 0.2% 57.9 0.2% .
12
0% .
28
4% .
45
1
SINGAPORE 39.7 1.1% 32-9 0.9% .
-17
1% .
8
9% .
30
2
ZAIRE
KENYA 25.2 0.7% 205.4 7.0% .
715.1% .
32.0% .
155.6
0.0 0.7 - -99.0% 69.5
TOTAL DOMESTIC 6096.2 6740.5 10.6% -3.7% 7147.6
FXPORT/DUTY FREE
RATTTK&E 1822.7 2146.8 17.8% 43
8% 1493
3
MIDDLE EAST 1691.6 1922.3 13
6% .
41
5% .
1359
9
AFRICA 113.4 224.2 .
97.7% .
7--
97 .
113
4
FAR EAST 17.2 -8.0 . .
-EUROPE
0.5
8
4 21.0
PAKISTAN
9.2 .
11.3
22
8%
88
3% 0.0
6
0
CA.MEROON 4.1 2.8 -
-31.7% .
180
0% .
1
0
ARGENTINA 1.2 2.1 75.0% .
90.9% .
1.1
TOTAL EXPORT/DUTy FREE 1937
2 2163
0
. . 17.7% 44.1% 1501.4
GRAND TOTAL 7933.4 8903.5 12-2% 2.9% 8649.0
N.B. LICENCE BUSINESS IN SUDAN IS NOT INCLUDED IN
THIS REPORT DUE To UNAVAILABILITY OF DATA-
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BATCo document for Province of British Columbia 25
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