Proiect SATURN THE OBJECTIVE OF PROJECT SATURN IS TO ACQUIRE AN UNDERSTANDING AND DEFINITION FROM A CONSUMER PERSPECTIVE ON THE ARRAY OF PRODUCT TASTE, SENSORY AND PHYSICAL CHARACTERISTICS THAT WOULD APPEAL TO AND CREATE PREFERENCE WITHIN VARIOUS SEGMENTS OF THE SMOKING POPULATION. Relative to virtually all other package goods sectors, the cigarette market is distinguished by the absence of unique product segmentation beyond physical shape, form and strength. i.e. filters, K.S., Slims, 100mm, etc. The most significant product specific diversion has occurred through menthols - currently a declining older female segment. Historically, strenath or tar level represented the primary means of product discrimination. Unfortunately, in today's market, this attribute has diminished in segmentation value. We have a situation today in which product differences between brands within tar segments are more perceptuallv driven than real - product uniqueness that is very dependent on image communications. An area of product investigation that has evaded a meaningful solution for some time lies in the area of reduced irritation BATCO CONFIDENTIAL- CATEGORY 1: MINNESoTATOBACCo LrnGA-nON BATCo document for Province of British Columbia 2 November 1999 and a better aftertaste. About 20% of smokers express a desire for this form of product improvement. While menthols deliver on these attributes, they do not represent a desirable prc:ducc option for the majority of smokers. An ability to tam into this forn of positive sensor-I modification would cater to t*-e expressed needs of a relatively large group of smokers. Phase I and Phase 11 of the consumer research exercise were able to answer the two main areas of investigation covered by SATURN: 1. To understand more fully the "why's" of new prcduc= acceptance as they apply to cigarettes. 2. To determine which new products (tastes cr aromas) have the greatest appeal to consumers. General conclusions are: I. it is difficult for smokers to accept new flavours which differ significantly from what they currently smoke. 2. The possible benefits which might convince consumers to adopt these flavours are mostly in the area of an "ameliorated" smoke. Future development for SATU-Rli resides in the prcduct area. The main parameters for deve-7cpment would be: BATCO CONFIDENTIAL- CATEGORY 1: MINNESOTA TOBACCO LITIGATION Lr- C, BATCO document for Province of BritiSh Columbia 2 November 1999 Zo.. 'ean taste gc~ng-in wJ::hcut Ics4ng tobacco taste. m. c no aftertaste or "fresh" aftertaste is acceptable. I;aht aromatics acceptable if smokers' body odouz is not significantly altered. rapidly dissipating smcke (cl- VISA). SATURN is not likely to lead to a specific market entry wizhin the next three years. However, 4t is to be pursued as an important learning exercise on consumer taste behaviour an-d product development. A3/Jc Febi-aar, .1 24th, 1989 LP Z CD BATCO CONFIDENTIAL- CATEGORY 1: MINNESOTA TOBACco LITIGATION BATC* document for Province of British Columbia 2 November 1999