Dr. Bernd Schweitzer Vorsitzender des Vorstandes der B -A-T Cigarettenfabriken GrrLbH. 6A~ ~AT 2 ;- g 35 Mr. U. Herter, B-A-T Industries p.l.c. Mr. D.P. Allvey, B-A-T Industries p.l.c. Mr. R.J. Pritchard, Brown Williamson Tobacco Corp. Mr. T.E. Sandefur, Brown Williamson Tobacco Corp. Mr. B.D. Bramley, British-American Tobacco Co.Ltd. Mr. A.M. de Castro, Souza Cruz Mr. D. Brown, Imperial Tobacco Ltd. IREC 18 th September 1992 -A. Dear David, WT-BORO Pan-EtiroDean Studv Please find enclosed the report on MARLBORO as discussed in the TSG's in February and September 1992. This report is an executive summary only. More details for the countries mentioned in the report are available in the market research departments of BATCF or BATCO upon request. With best regards, Yours sincerely, Dr. Bernd Schweitzer Encl. BODM32 "BAT Industries document for Province of British Columbia 26 October 1999 TSG REPORT HARLBORO PAN-EUROPEAN STUDY August 1992 N; C__ i"; N~ (-,n G-, a, "BAT Industries document for Province of British Columbia 26 October 1999 7"-545~ R?1~FaR7' JT_4.RZ_.B<:;1.Ra 1. OBJECTIVE Assessment of the strengths and weaknesses of Marlborc KE with specific reference to izs advertising and the rcle of the cowboy as a central motif. 2. bMTHOD 1 C. countries were-included in t-*-e study and a common methodology was applied in each case. Countries investigated were: France, Germany, Greece, Holland, I:aly, Spain, Switzerland, Hungary, Poland, Russia 010scow). I= each country six extended qualitative group discussions were held (average duration 2 % hours). The constitution of the groups was designed to allow ccatrast and comparison of a) regular smokers of Marlboro versus smokers of alternate International FF Brands and b) younger versus older smokers US-24 / 25-30 years). The fieldwork was conducted in june and July 1992. A!-' locations were invigilated by Rob Ferris (BAT Co.) and Rainer Wernitz (B-A-T CF). 3. ?--ORTING Fu:ly detailed reports to a com=cn format are available for each country involved in the study. "BAT Industries document for Province of British Columbia 26 October 1999 4. SUMMARY STRENGTVS / WEAKNESSES ANALYSIS Strengths Marlboro is the international brand, big and ubiquitous. It is the most American of the inter- national brands Weaknesses iThe monolithic nature of the bran--' brings associated fears of aggressi7e cultural chauvinism and "the big American capitalist machine". There is a fear of national values be-'.-.g debased by American values. social assurance comes from be- A mass brand is seen as contrary t:; longing to the smoking nejority the spirit of individualism. It can be seen as mindless and stereotypical Quality assurance comes from the idea that "so many people can' be wrong" and is supported by actual perception of good quality Primary theme,of freedom, inde- pendence and male competance is still contemporary, its consis- tency is reassuring in a changing world While the theme is powerful, the execution is becoming vulnerable. The cowboy is increasingly anachro- nistic. the rigid consistency of images is boring and there is growing disillusionment with the American dream. The advertising evokes direct Notwithstanding the power of direct emotion and vicarious sensory emotional appeal, the contemporary pleasure. It engages the gut trend in ad preference is toward more than the mind additional elements of humour,irony and intelligence, which are notably absent in Marlboro ads The advertising has motivational While these motives are powerful the sophistication, it focuses on vehicle is vulnerable. The cowboy is reward upon completion of a task an unrealistic clich6 (like a male and the experience of partici- model). His heroic aspect is often pating in a group with a common undermined by the perception that he aim is a solitary rural worker The craftmanship of ad execution is universally admired The cowboy and F1 sponsorship synergise on the theme of power and vitality. Fl contemporises Marlboro and defers the clear need to update the cowboys' historic/mythical status The synergy of cowboy and F1 themes is typically not perceived by females. F1 can only temporarily defer the accelerating perception that the cowboy is anachronistic and displays exaggerated machismo In the East, Marlboro is the At a latent level, the capitalistic symbol of all that is good in values represented by Marlboro create the West. Its perception is ambivalence. This is exascerbated by money and prestige (rather than the association of the brand with advertising) driven opportunistic black-marketeers 011 CO "BAT IndustrieS document for Province of BritiSh Columbia 26 October 1999 3 5. TOPLINE FINDINGS a) General issues Marlboro has become the archetvPal symbol of the International c4-crarette cc.-nmodit.1 Characteristicall'y Marlboro is referred to in terms of a small clique of similarly dominant brands of their class e.g. Coca Cola, Ray Bans and Levi's. In some cases consumers use the word Marlboro as a slang for a cigarette. The brand is typically taken to be a yard stick against which other FF brands are compared (irrespective of whether this comparison is positive or negative). Marlboro segregates from other International brands by being the most overtly American. The ubicuitous Presence of Marlboro relieves the consumer of the uncertainties of brand choice and Provides social and aualitv reassurance The practical fact that Marlboro is more readily available wherever you are, makes it a convenient brand.By the same token the continued reinforcement of its social presence reassures the smoker of its broad acceptance. The fact and perception that ON "BAT IndustrieS document for Province of BritiSh Columbia 26 October 1999 4 Marlboro is the number one selling brand implies an inbuilt guarantee z.iaz the product is of highest people can't be wrong"). quality ("So many ?erceived product performance in fact appears to support this. Consistency of the Marlboro Theme is Dositivelv endorsed. Consistency of execution is showina clear evidence of wear out The underlying themes represented by Marlboro (e.g. - freedom, independence, open spaces) create a general empathy which still strikes a note in the modern world. Marlboro's consistant projection of such values is a great strength, however, the vehicle through which this is done is beginning to lack a contemporary relevance. The cowboy is a summarisincT motif of "American values" He is a concentrated symbol out of which people can immediately unpack a complex set of associations. By using him, Marlboro capitalises on the historical investment in selling the American dream of freedom and independence via Western (cowboy)-films. This investment appears to be reaching the end of its life cycle as Europeans begin to adopt a more realistic perception of contemporary America. U-1 CD "BAT Industries document for Province of British Columbia 26 October 1999 5 For the younger generation the cowboy is becoming an anachronism, increasingly isolated, not adapted to todays society, incapable of change and potentially-a target for ridicule. Marlboro nroduces ambivalent consumer reaction on the issue of conformity versus individuality By definition, to smoke Marlboro is an act of conformity. It reduces the scope for expression of individuality and differentiation from others (in fact competing International brands find success in their promotion of individuality e.g. Camel). Nevertheless, conformity in relation to Marlboro is still positively interpreted in terms of the common sense in going with the biggest and the best. Even thoucrh the advertisinq is universally verceived as a clich6, consumers do not readily imacrine alternate avvroaches and acceDt the continuation of the clich6 as sulDnortina the key brand motif of continuity, tradition, securitv and authenticity The paradox for Marlboro is that consumers typically consider the cowboy to be boring, worn out, outdated and going nowhere. But at the same time there is an acknowledgement that to change will undermine the very theme that he stands for (e.g. stability in a changing world). r1 Q Url "BAT Industries document for Province of British Columbia 26 October 1999 6 - Marlboro advertisinc with the cowbov is beainninc tD show a mismatch with contemporarr e=ectations of advertisina Marlboro is firmly locked into the gravitational force of the cowboy which is its traditional strength. There is clear evidence in Europe of the emergence of a consumer trend desiring advertising of a more intelligent, humorous, ironic and playful style. This was evident in references to other commodity advertising and also, in relation to cigarettes, the Silk Cut and Lucky Strike (sonst nichts) campaigns. IrresDective of brand lovalty, consumers can universallv acknowledae the comretence of imaqe craftsmanshiv renresented bv Marlboro ads The outstanding aesthetics and filming execution together with the music in Marlboro films and ads receives a general approval and promotes vicarious pleasure, irrespective of whether the viewer identifies with the brand. Consumer reactions indicate that these ads convey a strong mood/ emotion in addition to the rational message. C-D "BAT Industries document for Province of British Columbia 26 October 1999 7 Marlboro advertisina involves the consumer at the direct behavioural level and not sinolv in ter-is of rational appeal The advertising is motivationally sophisticated, it links smoking to a reward on completing a task, to participating in a group which has a common aim and a hedonic world populated by rich flavours and textures which the brand seeks to own. Top of mind associations with Marlboro are aenerallv Positive, but in-depth Probina does reveal a neaative undercurrent At the subconscious level, Marlboro has a dark side represented by fears of American Imperialism, erosion of national values, aggressive capitalism, male dominance and extreme right wing values. Even the cowboy can be associated with the idea of suppression of nature and the native American Indian. The brand is sometimes associated at rumour level with KU KLUX KLAN affiliation. b) Specific results from subarouiDs - Countries The countries in the study fell naturally into a Western/Eastern division in terms of sharply contrasted perspectives of Marlboro. In the East (Hungary, Poland, Russia) Marlboro enjoys the "BAT Industries document for Province of British Columbia 26 October 1999 8 the possession of money, notably in Moscow, is as likely to be associated with illegitimate sources (black marketeers) as it is with legitimate businessmen, b) the cowboy can contradict the status of high prestige, guaranteed Western-style quality and the association with businessmen and other influential parties. This is specifically money-driven given the significant price differential of the brand. The potential role of advertising (which has relatively good awareness) is insignificant compared to the power of this variable. The downside of Marlboro in the East is a) that prestige image through beeing seen as an incongruous rural worker and c) the Americanism of the brand can invite local ambivalence regarding the negative features of capitalism which is still a residual concern in these markets. Within the Western markets, attitudes reflect material economic development. The trend is from less developed markets (Greece, Italy) where the perception of Marlboro is accepting, uncritical and highly aspirational, to the more developed markets (Germany, Switzerland, Holland) where the brand get its strength from being perceived as the brand for everyone (the contrary of exclusivity). "BAT Industries document for Province of British COIUMbia 26 October 1999 9 T-n these latter markets however, considerably more cynicism applies to the core values represented (A.mericanism, capitalism, materialism). Gender Given the apparent.dynamism, aggression and machismo of Marlboro it is perhaps surprising to note the substantial representation of female franchise. The study reveals two bases of explanation a) females are passive in early brand choice, typically sharing the brand of their partners/social peers b) the ubiquity and normality of Marlboro is appealing because it does not provoke strong differentiation from the group and females in general favour social conformity. Ace The relatively younger consumers are clearly more advertising literate and accordingly influenced. While the older smokers effectively dismiss the advertising as irrelevant to a habit which is by now seen as rational/taste quality driven, the younger smokers are still inclined to be aware and critical of the growing anachronistic nature of Marlboro advertising. There is an opportunity with these smokers to promote the more contemporary advertising lexicon of intelligence, irony and humour. "BAT Industries document for Province of British Columbia 26 October 1999 10 - Smokers and non-smokers of Marlboro Quite simply, Marlboro smokers of whatever age behave as per the description of the older smokers in the foregoing section. Marlboro smokers typically rationalize their brand choice in terms of taste quality and convenient availability. Their attitudes to Marlboro advertising are not significantly more positive than the Non-Marlboro smokers. c) Supplementary issue Sponsorship in the eyes of the consumer, Marlboro sponsorship (notally Fl) is a compensating function bringing some of the brand values into the contemporary arena. We know that the cowboy draws strength from his mystical symbolic status as an archetype of a free, independent and powerful culture, but this archetype is beginning to lose relevance and appears to be incapable of contemporising without loss of credibility. The significance of Fl is that it allows the cowboy to remain untampered and seperately brings in up to date images of power, success and dynamism. At the same time, Fl diverts the clear Americanism of the cowboy to a more truly international theme and from a historical mysticism theme to a more realistic representation N) NJ crl\ "BAT Industries document for Province of British Columbia 26 October 1999 of todays values. :n essence the Fl-sponsarship has a strong synergistic relationship to the cowboy. This was very well felt and understood by male respondents,-females in contrast have problems perceiving this linkage. In the less economically developed markets Fl is apparently more influential, possibly related to the history of low level above line advertising in such markets. 6. CONCLUDING COMENT The themes represented by Marlboro retain popular relevance, but the execution is in trouble. Having ridden to glory on the back of the cowboy (a ready made American Myth), Marlboro is now saddled with a stubborn anachronistic clich6. As with all Western films the cowboy cannot don a business suit and go to the city, he has to stay as he is, an increasing loner. The cowboy is further trapped by the changes in ad preference toward desire for intelligence, humour and irony, all of which are directly contrary to his basic, serious and heroic nature. The abortive "Red is Marlboro and Marlboro is Red" and the temporary fix of Fl sponsorship indicate that Philip Morris recognize this dilemma. Marlboro smokers and non- smokers alike increasingly see the cowboy as a boring clich6. "BAT Industries doCUrnent for Province of British ColUrnbia 26 October 1999 Mr. Dr. Schweitzer -------------------- ~P-4JV--E7U.Ra~P-E'AJV .57W.D-Y on the basis of discussions with Mr. Harter the following allocation of costs has been agreed: COUNTRY COST COST (DM) ALLOCATION Germany 41.400,- B-A-T CF Italy 27.783,- Greece 19.0001- Moscow 30.400,- Poland 29.200,- 147.783,- Switzerland 54.929,15 BAT CO Holland 35.235,32 Hungary 17.400,- Spain 32.050,53 139.615,- France 22.864,- B&W 25.292,45 48.156,45 Total 335.554,45 This breakdown will be provided to Financial Department in order to recover costs accordingly. M-, 27/08/92 W/Za cc "BAT Industries document for Province of British Columbia 26 October 1999