RESTRICT-ED K0--.-JP1fe Opt,
MARKETING POLICY COMMITTEE
Wednesdav. 21st Aoril 1976 at 2.30 o.m.
Present: Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
P. Sheehy (Chairman)
I.B.D. Bluett
B.P. Garraway
N.W. Goddard
C.H. Stewart Lockhart
P.L. Wright
In attendance: Mr. B.G. Pearson (Secretary)
Also attended: Mr. P.L. Short
Mr. W.L. DeWitt
M.47 International Brands
Mr. Short gave a presentation on the
trends and developments of international
brands. A booklet is available.
A general discussion followed on'120 mm.
brands which revealed the fact that, despite
growth in some areas, there is no firm
evidence, based an repeat sales, that the 120 mm.
segment is established on an international
basis. The future, therefore, for international
development remains uncertainv although active
steps are being taken to develop DU MAURIER
120 mm. outside Brazil.
There was a discussion on (a) genuinely
low tar brands and (b) "perceived" low tar
brands (i.e. those with an image of low tar
but with satisfying taste). "Perceived" low
tar brands are developing in certain areas of
the worldv e.g. the U.K., U.S.A., Europe and
Australia. So far, brands have been marketed
on a local basis and no major international
breakthrough has been achieved. It was stressed
that there may well be a longer term opportunity
for international development within this sector.
The I.B.Us will, therefore, consider brands,
both Virginia and U.S. types, which although
not necessarily yielding the lowest tar
deliveries, should have the concept: "low tar
with taste".
Mr. Short will consider whether advertising
for B&H Special Filter or any other major brand
can utilise a phrase such as "The fastest
growing King Size Virginia cigarette".
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The meeting then reviewed the progress
of international brands for the half year to
March 1976 and 3-year strategies 1976/79,
including B&W International Operations. A
booklet is available, together with supplementary
information an the progress and plans for
individual brands.
The proposed strategies were approved
subject to the following considerations:-
1. It was agreed that the relatively high
level of planned expenditure on B&H Luxury Blend
and Luxury Mild in relation to projected
sales should be reviewed again in October, in
the light of the study to be undertaken
immediately within Europe in Duty Free areas
and within Associated Companies.
2. Some doubt was expressed on the
effectiveness of the B&H Special Filter
"Celebration" campaign for certain areas of
the world. However, it was pointed out that
the reaction to this theme by Associated
Companies has been generally favourable,
bearing in mind the fact that the theme itself
is readily adaptable for local market needs-
3. A feeling was expressed that both B&H
and State Express advertising could concentrate
more on the "house" characteristics of these
brands, as in the case of Dunhill. It was
pointed out that the house connection is already
advanced within the advertising, to the extent
that it is credible, and that we should avoid
replicating the Dunhill House concept,
particularly as Dunhill is able to validate
the claim via Dunhill shops and their merchandise.
Nevertheless, it was agreed that the I.B.Us
concerned should consider this matter further
and put forward further proposals, if these
can be agreed with the relevant Associated
Companies.
4. The matter was raised concerning the
generally held belief that local manufacture of
an international brand tends to foster transit
of that brand into the country concerned.
Experience has suggested that the effect
may vary from country to country. Mr. Sheehy
suggested that a study should be undertaken
on this issue.
5. Consideration will be given to passing
over responsibility for DU MAURIER to B&W
International. Furthermore, B&W will also
consider the merits of test marketing DU
MAURIER in the US.
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6. Perhaps the most important issue of all
is the fact that, with U.S. type cicarettes,
it was not felt that the strategies and plans
for either B.A.T. Brands U.S. or B&Id
International
Brands would enable us to achieve a substantial
position vis-a-vis competition.. Special
reference was made to ~he fact that strategies
for U.S. brands, especially, did not satisfy
Group needs for Europe. More investigation
is needed which concentrates an promising
future prospects, e.g. (a) a major U.S. type
brand, with a U.S. base providing a distinct
advantage and (b) international development
of a brand with "perceived" low tar but with
taste.
Further ideas will be produced at the October
meeting.
M.48 U.K. Market
The UK Market status report dated
'15th April was tabled. A copy is available.
Competitive activity and a likely tax/
price change may lead to a longer time required
than originally plannad before a full
evaluation is possible.
M.49 Next Meetinq
The next meeting will be on
Wednesday, 20th October 1976 at 2.30 p.m.
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BATCO document for Province Of BritiSh COIUMbia 27
October 1999