PAPER 6 BOB BEXON
PROJECT PROPOSALS: I- SLIM CIGARETTES
2. TiiE 'AmELioRATED' CIGARETTE
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RO/MW-VETING CONFERENCE
NEW BRAND DEVELOPMENT - "POST-LIGHTS"
First of all I should point out that our market contains major
opportunities that, within the context of this paper, I nave chosen not
to cover. Things like price brands are really less a result of what
people want to smoke than they are a reaction to very specific
environmental pressures. It's not that they are not valid, it is simply
that they are not truly tied to the long term, evolution of smokers,
needs. Therefore, I'm going to pretend for the moment that these
powerful contenders don't exist. Moreover, I intend to be fairly
dogmatic about the overall direction of new development. Opportunities
Clearly exist for branUs which go "against the flow" of underlying
consumer needs. This paper reflects a view on the criteria of new
developments directly atzacmed to longer term consumer needs.
New orancl development. has the Chance to go all wrong for people like us
as we struggle in the wake of a major convulsion like light cigarettes.
There are fou: tempting out dangerous routes:
1. To necome product instead of brand developers - assuming that
technology holds some magic key to the future. Smokers have, do and
will always ouy brands. Forcing new brand development into a
premature marriage with product technology will quickly see us selling
what we can make instead of what people want to buy.
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2. To say "now the party's over" and in conjurction with a
product/technology orientec mentality abdicate today's market in
favour of some vague notion of designing for the "long term" - as if
the future could be separated from next week.
3. To succumo to the "what haven't we tried yet" school of brand
development, "has anyone tried a blue clot on the filter?"
4. To refuse to see the last convulsion - light cigarettes -.as a fact of
life instead of an opportunity thereby draining valuable time and
resources into smaller and increasingly less relevant niches on the
tar scale.
The real challenge of new orand development is the next convulsion - or
next se:ies of mini convulsions. In Canada, and I'm sure in many
developed markets, light brancs nave significantly changed the underlying
motivations of smokers. We must unde.-stanc these changes. To do so we
must uncemand wny the onenomnom occurred, in what context - what cnips
are ieft on the table and in what form, and then turn this understanding
of new needs into relevant, mauetaole brands. New brand development
cannot occur in isolation from the past.
LIGHTS-NECATIVE PRESSURE AND T@E NEED FOR "LESS"
Possibly more than in any other industry, our market development is
guided by negative pressures. Whether it is scientifically valid or not,
the simple marketing truth is that smokers believe that smoKing
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jeopardizes their personal well-being. The proportion of smokers who
agreed with the statement "smoking is dangerous for anyone" (versus heavy
users or people who were unwell) rose steadily from 48% in 1971 to 67% in
1976.
They did not indict specific brands, products or immoderate use. They
indicted smoking. Almost one in two (46%), when asked how many
cigarettes a day could be safely smoked, answered - none.
Pre-lights, these concerned consumers had a limited range of options open
to them - essentiality quit or cut down. By tne middle of the decade, the
majority of Canadians who smoked were trying or intending to try these
alternatives:
1976
"SMOKING IS DANGEROUS FOR ANYONE" 67%
INTEND TO QUIT 26%
INTEND TC CUT DOWN 33%
TOTAL INTEND TO MODIFY 59%
TRIED TO QUIT - PAST YEAR 41%
TRIED TO CUT DOWN - PAST YEAR 57%
Fortunately for the tobacco industry, neither of these two approaches
proved very successful for smokers. in 1976, altmough 41% had tried to
Quit and 26% were ready to give it another go, the actual rate of
Quitting "within the past 6 months" was fairly stable at a little less
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than 2%. Fewer than tnis mace it to a year. Despite the vast numbers of
smokers trying and intending to cut down, the claimed rate of daily usage
rose from 20.5 to 21.1 cigarettes a oay (1971-76). Our calculated daily
usage rose from 21.1 to 23.8 cigarettes per day (1971-76).
Very simply put - people who were smaKers increasingly wisned that they
weren't, in the face of mounting information an smoking and health - but
could not find a means of oealing with their concern.
Lignter brands were already availaole - they were milder things that old
women smokes - but the product solution was available for interested
smokers.
Althougn these brands snowea modest development in the early 19701 s, it
was not staggering and generally, was not well understood by the
Marketers:
1971 1972 1973 1974 1975
HICH DELIVERY 19mg + 41.2 40.8 39.9 38.9 37.6
MID DELIVERY 14-18 mg 38.2 37,4 57.8 38.5 39.1
LOW DELIVERY 10-13 mg 7.6 7.7 8.3 8.4 8.8
VERY LOW DELIVERY - 5 mg .3 .3 .3 .3 .3
MENTHOL 6.4 6.5 6.6 6.9 7.2
OTHERS 6.3 7.3 6.9 7.0 7.0
SMOKINS IS
DAN=- ROUS FOR ANYONE 48% 59% 56% 67.v 64%
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"Lights" in Canada was a brand not a orocuct revolution. The industry
tried filters, charcoal, tobacco olencs, advertising claims attempting,
generally unsuccessfully, to solve the health proolem in product terms
while virtually ignoring the paradoxical nature of the smokers' dilemma.
AlthougM they wished they weren't, they were and virtually every effort
forced them to give up the things tney continued to smoke for. Telling
smokers that you had a product was not the problem. Telling them they
could smoke it with nonour was.
In 1974-, manufacturers agreed to put tar and nicotine numbers on the
sides of packages. Smokers who wished to do so could now rate brands on
a scale of "Danger". Lightness, instead of being an absolute, became a
relative thing. Close on the heels of this key piece of information and
the even more important foundation of relative mildness tnat it created,
manufacturers began to introduce lighter brands instead of products.
"Lighter" was successfully be in language smokers could unoerstard
as "All the experience of Player's in a lighter cigarette - Player's
Lignt. 11
Altnougn we remain committed to making good products, it would De
incorrect to suggest that corporate success in this hard fought battle
has really had much to do with who made the best cigarette at a given
level of strength. Winning has been predicated on good orano marketing.
Companies with strong, clear, well defined trademarks and the courage to
introduce tiem in a way that was true to their essential nature won.
Comoanies with less relevant or inCistinct trademarks, and companies who
tried to twist the basic rationale for the trace-mark, lost - and lost
Badly.
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The comtercial success of light orands speaks for itself. New brands
were highly successful, and there were lots of them:
BRANDS LAUNCHED 1974 1984
1984 SHARES (12 MS. MAY)
ITL PLAYER'S LIGHT 11.7
EXTRA LIGHT 2.7
RJR EXPORT A MEDIUM 1.6
LIGHT 2.3
MILD .9
EXTRA LIGHT .4
ROTH- ROTHMANS SPECIAL MILD 2.8
EXTRA LIGHT .6
ITL - DU MAURIER SPECIAL MILD 2.7
LIGHT 2.5
ROTH- CRAVEN SPECIAL MILD 1.4
ULTRA LIGHT .3
MEJ4THOL SP. MILD .5
ITL - MATI%rEE EXTRA MILD 2.4
B&H - 2 EXTRA MILD & LIGHT 1@4
ITL - PETER JACKSON EXTRA LIGHT .5
ROTH- NO. 7 LIGHT .8
B&H - 8 & H LIGHT .9
ITL - CAMED EXTRA MILD .7
B&H - VISCOUNT #1 A;C lools .6 TOTAL EXTENSIONS
RY - VANTAGE 1.1
RJR - VANTAGE LIGHT .5
ITL - MEDALLION .9
B&H - AC'-ORD .6
RY - SELECT .5 TOTAL NEW C3 - 63
TOTAL 41.3
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Smokers 3egan to experience real praouct change. The sales weighted
average tar levels for tne market, essentially stable through the early
19701 s, dropped significantly.
1973. 74 75 76 77 78 79 80 81 82 83
17.0 16.9 17.0 16.6 15.8 15.0 14.2 13.7 13.4 12.9 12.7
The rate of switching rose suostantially to the point where, in tne late
19701 s, almost I in 5 smokers claimed to have changed orands in the past
year, twice the pre-light norru.
Now, however, it would appear that the party is over. Virtually every
now and cranny in tne tar spectrum is filled. Although they continue to
grow, the rate of expansion of lignt brands is reducing. Retailers are
beginning to refuse to accept lower potential brands, the rate of
switchin; is down to a MUCII more normal level, every major trademark is
extended to at least two offspring. With Canadian smokers' need for
"less" apoarently sated. with cptions, it is easy to understand marketers'
tendency to look nervously at their hands wnen asked "what's next?"
Already we ri to see (and yes possioly participate in) some of the
more flamooyant but less relevant new brand development -that
cnaractezized our industry oefore it emoarkeu on marketing predicated an
the relentless logic of I'LigMts" as new brand developers look for novel
means of differentiating their brands.
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* The Canadian market is not seen uy Canadians as non-Canadian - there
are no international tiranas that are perceived as such despite their
increasing prominence in the rest of the world.
CAMEL - RJR - TEST KqWET - WITHDRAWN.
* The Canadian market is a uni-taste market. With the exception of
menthols, it is almost entirely flue cured Virginia. Stokers are
oared. Smokers have ccApromiseo on taste. Smokers try a lot of
American cigarettes-occasionally.
PLAYER'S SPECIAL BLEND - NATIONAL - FORECAST
FORECAST I.Zt
ACTUAL 0.5%
* All Canadian cigarettes cost the same and smokers are increasingly
under duress due to rising taxes. Fine cut volume is up. Price
segmentation works in a Ict of other places. A company has seen
saved in the USA oy generics - why not?
GEWRICb EIASTOS - ESTIMATED SHARE 0.=
And recently a couple of new ones:
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100m are growing in Canada - mayoe it's style, mayoe it's value for
money, mayoe it I s a little of botn - it must be because it I s loom:
ROTHMANS SPECIAL MILD 100's Snare unknown
RO EXTRA LIGHT IOU's Financial Prospects ...
ROTHM,1kf6 MENTHOL loss Douot fu I
SPORTSMAN NATURAL LIGHTM
ROTHMANS - MOTIVE AND PERFORAkNa - ANYONE'S GUESS.
And we have a few of our own on the books waiting patiently to oe
further developed:
* SPEARMINT???
* JPS???
Here's an approach capable of keeping product and pack developers hopping
For a decade. New things, different things, innovative things, new
paCKSgeS, purple cigarette paper, 120mm DrarxJs, polyvent gas trap,
charcoal filter, new smoking material - a staggering array of brands
struggling to be different. It would be foolish to indict these ideas.
Some of these entries will sell some will make money - some are viable.
But there is an important , difference between these entries and lights.
Smokers needec light Drands for tangible, practical, understandable
reasons. it is difficult to see broad needs answered to by these
introductions.
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POST "LIGHTS"
If these ideas are not broadly relevant, then wnat Is? It is possible
even now to see how smoktrsl reactions have been modified by the success
of lights, and, Ill not define specific orano options, at least isolate
the characteristics of products that have a geed chance of success. How
have lignts modified smokers' need for "less"?
1. In spite of their comercial success, lights have not moderated the
basic force that causes them. Smokers continue to be very concerned
with the a of smoking on their health. -they continue to indicate
that they intend and have attempted to change their behaviour with
respect to smoking. Lights have not reduced this either over time or
among smokers who have emoraced lighter brands. In fact, their
concern has increased in spite of the new alternative:
1984
SMOKERS U@
1976 1.984 MILD 0 TH.
"SMOKING IS DAI@@ROUS FOR
ANYONE" 67% 74% 79% 72%
INTEND TO QUIT 26 45 50 43
INTEND TO CUT DOW19 33 19 19 19
TOTAL INTENU TO MODIFY 59 64 69 62
TRIEU TO QUIT 41 43 44 43
TRIED TO CUT DOWN 57 59 61 58
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2. in spite of its commercial success, the new option of switching to a
milder brand does not surface as one equivalent to quitting or cutting
down either in smokers' intentions or their efforts. Smoking itself
continues to be isolated as a behaviour to oe avoided despite the
emergence of relevant new ways to smoke less.
1984 ALL SMOKERS
IN PAST
YEAR
TRIED INTEND
TO: TO.
QUIT 43Y* 45%
CUT DOWN 59 19
SWITCH MILDER 30 3
SMOKE SAWE 29
3. Although light brands have --learly es taol themselves as offering
more or less strength in terms of tar and nicotine, this
discrimination is only loosely related to "health". In fact, there is
very little differentiation of brands on an image statement "For
smokers concerned about their health". A arand like Medallion (1mg
K. S. ), positioned to be "synonymous with ultra mildness", condemned by
99.Z6 of Canadian smokers as "smoking air" manages to achieve only 5.9
on "health" on a 9 point scale.
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1983 114AGE RATINGS
LPaCHED LALACFED
PRE 1976 PRE 1976
SHARE STRONG HEALTH STRONG TH-
EXPORT A 7.9 8.0 3.1
PLAYER'S FILTER 6.6 7.4 3.5
ROTHAANS 5.5 6.3 4.6
du KAURI-E-R 11 6.1 4.1
EXPORT MEDIUM 4 5.6 4.4
NO. 7 1.7 5.6 .4.1
BELVE--@= 1.8 5.4 4.1
CRAVEN A 5.4 5.2 4.5
PLAYER'S LIGHT 11.7 4.9 5.0
EXPORT MILD .9 4.4 4.8
EXPORT LIGHT 2.3 4.3 4.9
MATINEE 3.2 4.3 4.8
du MAURIER LIGHT 2.5 4.2 5.2
ROTHMANS SPECIAL 2.8 4.2 5.3
PLAYER'S EXTRA LIGHT 2.7 4.1 5.4
du MAURIER SPECIAL 2.7 3.5 5.4
VANTAGE 1.1 3.4 5.3
KELVEDERE EXTRA MILD 1.2 3.o 5.5
CRAVEN A SPECIAL 1.4 2.9 5.7
SELECT .5 2.7 5.6
CRAVEN A ULTRA .3 2.6 5.9
MATINEE 'EXTRA MILD 2.4 2.5 5.9
VISCOLF4T .7 2.5 5.9
VISCOUNT #1 .6 2.4 5.9
ACCOR3 .6 2.4 5.8
MEDA-1-'-1ON .9 2.3 5.9
Light onnas have not, apparently, been the smoking and health panacea
that their success might lead us to expect. Wnen smokers are asked the
question outright, the inferences in the information are con even
among mild smokers.
AUGUST 1983
nDa you believe that low tar and TOTAL MILD OTHER
nicotine cigarettes, like ultra YES -W- -a- -3r
milc and extra light cigarettes NO 52 46 54
are less ha r-.Ttf to your health DON'T KNOW 9 10 9
than tar ano nicotine
than
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Clearly Lights have offered one solution to the smokers dilemma. But it
is a far more partial and imperfect solution than sales would lead us to
suspect.
Smokers remain prepossessed oy exactly the same concerns that brought
about the proliferation of successful lignter brands. They, presumaoly,
remain open to and neeg new ways of delivering LESS. The underlying
premise for we last convulsion is unchanged and incompletely satisfied
by LIGHTS. It is useful to consider lights more as a third alternative
to quitting and cutting down - a oranded hybrid of smokers' unsuccessful
attempts to modify their habit on their own.
IMAGE'S - POSITIVE VALUES
This alternative has not been achieved, regardless of how well these
orands have been marketed, without a heavy price being paid by smokers on
the positive emotional imagery-laden side of smoking.
Our market estaolished these introductions by trading on the image equity
that existed in major trademarks. The executional elements, by and
large, catterec away at creating correct product perception.
I'Lignt-lighter-lightest" weere achieved by insistdrrce on lighter
presentations - proouct story imagery - wnite packs - pale colours -
mildness dominated copy - common generic qualifiers, all struggling to
estaolish a precise place on a sliding, relative strength scale.
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The cost of this approach over time and over the number of variations on
the theme that have been attempted, has been a diffusion, if not
exhaustion of the imagM tnat these trademarks represented. The price
of getting smokers to understand one positioning element precisely has
been paid out of the brand personalities. Brand perceptions in tne
Caracian market have been largely collapsed into tne pragmatic and the
observaole. The ability of Smokers to differentiate brands on the more
emotional dimensions is substantially impaired.
LIGHT BRAND RATINGS (24) 1983
9 RANGE
FCR A SUCCESSFUL PERSON 5.5-4.5 NOT FOR A SUCCESSFUL PERSON
SKY.EM MORE BY YOUNGER SMOKED MORE BY OLDER
PECP@.E 5.8-4.3 PEOPLE
SM0VZ- DMORE BY MEN 5.8-3.1 SMOKED MORE BY WOWN
FOR A PERSON PARTICULAR FOR A PERSON NOT PARTICULAR
A9.r.si 11 PACK APPEARANCE 6.0-4.4 ABOUT PACK APPEARANCE
A PO-"ULA.R BRAND 6.8-2.7 NOT A POPULAR BRAN)
Branis in the new light market are obviously characterized by blandness.
Inis procleim is compounoeo by the fact that as manufacturers have
a to return to more of the relevant emotional imagery that
cigarettes depenc on, they have found themselves confined by the
relatively narrow range of imagery lighter products will presently
tolerate - outdoors, active, healthy, natural, boats, planes, water, neat
young people doing neat young tnings. Trying to solve the problem has
actually compounoed it ano t3rands are better differentiated today by
their grapnics than by the visual depiction of their image.
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The result is that smokers are bored. In a market where personality in
brand choice is such an important part of tne positives of smoking, they
are faced, increasingly, with a Oland, amorphous lump. Increasingly, we
see difference - any difference - as a thing causing smokers to sit up
and take note.
SOC: AL PRESSURE - TFrr NEW bEGATIVE
These effects of light introductions have been further obscured by the
emergence of new powerful pressures that have little to do with personal
health. what began as a small group of fanatics has ballooned into the
majo.- anti-smoking thrust:
* municipal by-laws define where a smoker can and cannot acceptably
"light up."
* He pays more and more for tnis procict because of taxation
policies that increasingly seem punitive.
* Media and individuals encouraged by media increasingly press him
cn passive smoking issues - personal confrontation.
* He sees non-smoking increasingly emerge as a positive marketing
platform for third parties life insurers - smoke-enders -
rent-a-cars - hotels, etc.
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BATCo document for Province of British Columbia 14 April 1999

* He faces the prospect of higher health care costs to defray his
purportedly greater share.
* etc.
* etc.
* etc.
Canadian smokers in 1983 thought second NW smoke was very (35%) or
somewhat (37%) harmful to the health of others. They had refrained
recently from smoking so as to not annoy non-s%okers (47%). A
significant minority (35%) claimed smoking was only barely acceptable.
Ten percent (11%) claimed it was not accectable at all. Asked what
restrictive action they would support:
M% supported rurther restriction of cigarette advertising.
39% supported a complete advertising ban.
29% supoorted restricting the sale of r-ooacco products.
711% supported increased advertising on the dangers of smoking.
A an amazing 2N supported taxation aimeo at making smoking
unafforcaole.
Social disapprocation forces smokers to accept the same self-deprecating
yoke they accepted with smoking and health. Even as they agreed with and
tried all the right health preserving strategies, they now have all of
the correct social responses. But there is the same quiet desire for a
smoking-relateC solution. Tney remain smokers who wish they weren't but
know they are.
BATCo document for Province of British Columbia 14 April 1999

"Do you think the tobacco industry should defend the
rights of smokers?"
YES 51%
NO 38%
DON'T KNOW 10%
These numbers will presumably increase with time. Social pressure,
combined with increasing prminence as smokers' rusnoers dwindle (either
in fact or in public admission), will force the smoker, only imperfectly
satisfied by light brands, towards an increasing self-perception that he
is not only a less healthy, but also a less wholesome individual.
And still, he will continue to smoke seeking less charged alternatives.
SO WHAT?
In broad terms, relying only on this wide information, it is possible to
see, in human terms, the beginnings of the type of needs driving the
majority of smokers. They do not emerge.from trLe "light" era with fears
that have been substantially allayed. In fact, the reed that created the
opportunity for lights has intensified. In a world where you couldn't
smoke and you couldn't not' smoke, lights offered a hybrid solution
between equally unsatisfactory alternatives - less smoke. But they were
a short-term solution, arguably more reassuring to smokers when they were
in the act of switching to a mild brand than they were ~ the smoker
had finally acclimatized and their new tar level represented the status
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quo. Lionts have stopped being tne alternative and have become an
alternative - perhaps an increasingly unreliable one as we publicly cut
our own tnroat with Barclay - like tar SquabZ)Ies.
The smoker faces this "relapse" in an environment of new unfamiliar
pressures, where much of the emotional pleasure has been stripped from
his oranz.
"Great taste", "enhanced taste", "taste breaKthroUgh", - the mainstay of
the new Drand developers low-tar-plus bag of tricks, do not seem like
major ootions although they are sure to please discreet groups.
Less - attenuation of the smoking experience - new innovative ways of
delivering perceptually less product appear far more promising - combined
with relevant, new, evocative imagery.
"Less szove-more emotion" should be a maxim against which, it would
appear, the real saliance of new brand concepts should be tested.
Not sumprisingly, this "its with what consumers claim to want in terms of
Drand improvement. They want physical and sensory attenuation of
smoK-iny. There is Salle evidence (and a wealth of qualitative evir,ence)
that they want more emotion.
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SALIANCE
9 LABEL OWN IDEAL EXf.-/VERY IMPT. NOT IMPT.
"HEALTH" VARIASL FS
STRONG 5.0 - .6 42% 17%
FOR SMOKERS CONCERNED 5.0 +1.1 51% 15%
ABOUT HEALTH
" SENSORY "VAR IASLES
- LOTS OF TASTE 7.1 + .3 56% 5X
- GOOD AFTERTASTE 6.3 + .9 54% 13%
- IRRITATING TO THE THROAT 3.7 - .8 6" 9%
- SATISFYING 7.5 + .3 57% 5%
"IMAGE" VARIABLES
- FOR MEN 4.9 + .1 6% 7Z%
- FOR YOUWZR SMOK04.5 4.7 + .1 .5% 75%
- FOR SUCCESSFUL PEOPLE 4.8 + .3 -
- PARTICULAR ABOUT PACK 4.0 + .8 9% 63%
- A POPULAR BRAND 6.5 13% 49%
In consumer terms, this view of the future can be summarized as follows:
I. The Das-,c need of smokers will be for less, as it has been. In order
that they may continue to smoke and in order that we may remain
competitive, we will have to conceive and MarKet an increasing array
of products that are credibly ano relevantly "reduced,'.
2. These p@roducts will have to oe sold as brano S. Images that return
emotional value to cigarettes in new and different ways will be
necessary both to re-establish a positive link between smokers and
brands and to increase the precision of our appeal. There is a good
possibility that this imagery will have to extend outside the
parameters of traditional tobacco areas. A pack design that does not
look like a cigarette pack may oe a strong asset for future orands.
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3. Relevant, distinct, well-managed trademarks will be an even more
scarce and valuaole commodity.
Lights leave us with one further legacy that is far more mechanical. It
is unlikely that smokers will relinquish the tentative foothold light
brands nave given them. We see almost no evidence of smokers Switching
to stronger brands. All previous convulsions in the market have
presented smokers with differences that were absolute filter versus no
filter, mentmal versus no menthol, King size versus regular.
LigntS have created a relative difference tnat has fragmented the market
dramatically. The days of offering an -innovation to very broad groups in
the market are gone. For the foreseeable future, even for highly
relevant concepts, a substantially larger number of discreet brands will
De requires to spread any innovation across the taT spectrum. New brand
developers are faced with the prospect of more, smaller launches - an
expensive, frus-.rar.ing resource-draining proposition.
CONCEPTS
This is not expected to be a popular position. It not only asks
tobacco-men, generally traditionalists (with good reason), interested in
selling satisfaction, to start selling what must look like carbonated
wine in cans, but it is also hard to imagine realistic means of providing
"less". In fact, it is probably not as difficult as it seems. The
rapidly expancing smokeless tobacco market is in fact an expression of
"less".
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Pipe tobacco, seen as not inhaled and therefore presumanly safer,
certainly less socially loaded is another tantalizing proposition.
However, there are also pragmatic options within the tailor-made market
that are less radical.
The following two summaries outline current ITL development projects that
are governed to varying extents (and with varying degrees of conscious
application) by these Principles. The first, "SLIMS- is a highly
specific, we expect low Potential Concept (2.0 share total) that directs
these rules against a very confined target. The second is a far less
evolved project we ourselves are still struggling to define, where the
application is suostantially more specific and where, if "cracked", gains
should be substantially larger.
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SLIM CIGARETTES
Slims were originally conceived as a small scale, tactical intrusion into a
,mall but growing 10Dnm segment.
1980 1981 1962 1983 1984(May)
loom 2.5 2.46 2.8 3.2 3.7
Our option in this arena was basically a lighter variation W. du Kaurier
Special mild with which we represented about 30% of the segment.
Our competitors had recently introduced a 10D= length into the highly
female 3-5mg segment which, while it was riot overly successful (about .3),
was enougn to indicate that we should at least look at possibilities in
tMis product area.
Very early irs the exercise, the difficulty of making a 100mm brand
financially viable in a uni-price market became obvious. Lower margins
m eant tmat the orand had to be more than 5CA net new, regardless of its
snare performarce, to make money.
Slims as a concept emerged from this basic problem. We assumec that style
and in-age oenefits were playing a significant role in the growth of lools.
Slims seemed capable of providing these benefits in conjunction with a cost
reduction that we could tolerate.
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The Canadian market currently has only one slim product (Contessa slim,
.1%). Canadian Woken' familiarity with slimmer brands is largely a
result of the unsuccessful attempt by Philip Mor:is and RJR to introduce
the 12an Plus ano more brands in Canada in the early 1970 1 and a result
of overflow advertising of Eve and Virginia Slims from the U.S.
These we assumed would define the parameters of the concept as essentially
imagery based. Propositions of this nature in Canada have historically
shown themselves incapable of achieving significant snare le;els. we were
therefore prepared for a minor introduction.
However, we agreed to attempt to establish a product rationale to support
the imagery. We assumed that if we could ascribe a motive for making the
brand slimmer that was product based rather than image based, we could, if
not expand the potential, at least offer it a degree of resiliarce and
longevity. As a result, a series of potential product claims revolving
around reduction (irritation, tar, etc.) were developed.
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STRENGTH FEMALE SEGMENT
IMAGE SHARE 7ffA-L ITL OPP'N
EXPORT A 8.1 3.0
PLAYER'S FILTER 7.6 2.8 8.7 2.8 5.9
MARK 10 FILTER 6.8 2.9
du KqURIER k.6. 2
EXPORT KED. 6.-1
NO. 7 6.0 1.2 20.2 12.1 8.1
ROTHMANS 5.8 3.7
Pr-TER JACKSON 5.7 1.3
BELVEDERE 5.7 2.1
PLAYER'S LIGHT 5.1 8.0
CRAVEN A 5.0 5.0
EXPORT MILD 4.5 .7
PLAYER'S X LIGHT 4.5 1.9 18.0 9.6
EXPORT LIGHT 4.4 1.7
MATINEE 4.4 3.7
ROTMAN SPECIAL Fizzes-,
du IAAURIER LIGHT
NO. 7 LIGHT 3.7 .7
du MAURIER SPECIAL 3.6 3.7 9.2' 4.4 4.8
ROTKAAN X LIGHT 3.5 .7
PETER JACKSON X LT. 3.5 .7
BELVEUERE X MILD 3.2 1.5
VANTAGE 3.2 1.9
CRAVEN SPECIAL 2.9 1.4
CRAVEN ULTRA [@7 @4
MATINEE X MILD 5
ACCORD 5 ,6 8.7, 4.4 4.3
VISCOUNT X MILD 2.4 1.4
MEDALLI014 2.3 .9
VISCOUNT #1 2.3 .5
TOTAL 74.4 41.7 32.7
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The initial wave of research suggested that the potential for slim products
was greater then we had anticipated. It also uncovered a credible, relevant
product rationale for smaller circumference cigarettes that promised a wider
appeal for a wicer tar spectrum than the Matinde trademark could effectively
command.
As a result, tne concept of Betamax changed in two major areas:
1. Slim cigarettes would be markered as a new segment instead of as an
emoellisrvnent on a single brand.
2. I.T.L. would, initially, market three different options in order to
increase the precision of our appeal:
a) antind 13-14 mg - du maurier Slim
b) around. 8-9 mg - du Kaurier Slim Light
C) around 3-4 mg - Katinde Slim
Tnese slim entries were defined as follows:
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POSITIONINS S-IMS
There is 11tUe question that a slimmer product, oy its physical
dimensions, clearly communicates style-fashion-distinc*@ive-female imagery.
These image benefits along with the "feel of the product" appear to
constitute powerful motivators for women. However, tnere is slim hope that
large rwsmoers of women will adopt these brands if image benefits represent
the onlv reason for their existence, and the only exclanation of wny the
cigarette is slim.
It is, tnerefore, critical that the segment be estaolisneo in smokers,
minds on a product/smokina experience claim that is directly attributable
to the reduced circumference.
This is not to say that tne iadge and tactile benefits are not important.
These will, in all prooaoility, represent a large part of the real reason
for purcnase if tne brains are successful. The product claim should,
however, "deflect" smcYKe.-s away from the uncomfortaole position of
acknowledging that their orano selection is based solely, or ever
primarily, on image considerations.
Tnerefc:e:
1. Brands introduced unier these two projects will stress that tne basic
reason for tne manufacture of slim circumference cigarettes is to
provide a product Ounefit. The benefit will be that, because they
contain a little less tobacco, slim Cioarettes-deliver lower tar but
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provice ootm taste and ease of draw comparable to orands of relatively
nigher Deliveries Slim products will, in essence be positioned against
I-lignts" as an innovative means of achieving lower tar smoking.
2. Proouct decoration - package format - package design and communications
will all attevt to tastefully project - out in no way emphasize - tne
imagery that is already at work in the product dimensions. We will not
struggle to tell tne sw*er what she already knows through overt,
V
special, unicrue or "abnormal" treatments of any marketini element. The
only 11special" element of these brands will be their slimmer circum-
ference.
3. Tne nain use of imagery will be to place relatively greater emphasis on
one or more of the image aspects of slims (i.e. a brand is distinctive/
fasnionaole as opposed to more for women).
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PROJECT VHS
Project VHS covers the introduction of slim brands under the du Maurier
trademarK. VHS will involve two options - a "parent" orand at around 13 mg
of tar and a lighter "extension", to oe introduced simultaneously at 8-9 mg
of tar.
BASIC NAGE AtC POSITIONING VERSUS au MAILAIEW
Brands under project VHS will oe developed as extensions of the du maurier
trademark. They will have their own ioent-ity as opposed to claiming direct
derivation from any one of tnc three existing du Maurier brands.
VHS will present the fasion, style and distinctiveness of slim products as
a logical extension of the Uu Maurier tracemar-K's "contemporary class and
quality" image. -
Tne project will not attempt to represent Itself in any executional area as
overtly anj directly female. A more direct female position will ne
reserves for the Matinde option.
du Meurer Siims representation of "contemporary class and quality" must
remain quiet and tasteful and at all costs avoid any sense of
pretentiousness.
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N
TARGET MARKETS
The primary target for the higher delivery entry will De smokers of King
Size and 100 an brands 14 mg of tar and nigher. The primary target for the
miiaer component will De smokers of King Size anc 100 mm brands in the 9-13
mg range.
In demographic terms tne brands will focus on females unUez 35 years of
age. If the simultaneous introduction allows for any greater precision
between tne two entries, tnen the higher tar entry should compromise in
favour of the younger half of this group while the lower tar entry
cmpromises in favour of the older half of it.
PRODUCT
Tar Circum- Filter Tipping
Level Lenoth ference* Length Length
13 mg 84 an 23 mm 20 an 24 MM
14 Mg 100 mm 23 mm 25 mm 30 an
8 mg 84 mm 23 an 20 an 24 mm
9 ing 100 an 23 mm 25 an 30 mm
Standard 1. T. L. circumference is 25 mm.
If ventilation is required for these products it should be invisible. Care
should oe taken to ensure that puff number and ourn rate are comparable to
non-slim products of similar tar levels.
In terms of suojective criaracteristict, the taste of the product should De
du Maurier basecl, flue cured, V, rginla. The products should deliver per
t
puff taste and smoking mechanics that compare favourac)ly with those of
non-slim orancls about 2 mg of tar higher tnan the individual slim ratings.
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Any "decoration" on the prowct itself will 0@ subtle, tasteful ano
normal".
NAmE
The best names for the oranos within VHS are the most obvious - du Kaurier
Slim (13 mg) and du maurier Slim Light (B mg).
our oasic thrust in the project is to "normalize" slim products in order to
maxe their powerful imagery and tactile benefits accessible to smokers in
the context of everyday use. within this framework these names achieve two
things:
First: they relegate the concept of "Slim" to a role where, l1ke "lights",
it represents simply one more categorical way of making cigarettes.
S'ecord: it positions triese brands as essentially "Ou mauriers" which have
been modifieC to provide the benefit of siimness instead of the
other way arourc.
PACKAG114G
In terms of graphic design the package should be clearly identifiable as a
direct derivative of the du maurier trademark. It snouid not, however, be
directly referenced to any other specific brand currently within the
trademark*.
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N
It snoula avoid fancy-special-unique-elegant treatments. Instead the
design must' fin* a balance that allows the pack to be "ordinary" enough for
everyday use wnile at the same time subtly reflecting the fashion-style-
distinctive components of slims within du maurier I "Quality contemporary
class" framework.
Although the. design should be attractive to females it should not De
intentionally or overtly feminine.
Pack designs must reflect the two appropriate tar levels within the project
(13 mg and 8 mg) and, although they should bear a "family resemblarce*,
they must effeczively differentiate the light from the non-light version.
COMMUNICATIONS
The can.- unicatim of this proposition should avoid platforms whicn are
either clinical or scientific. It should, instead, be articulated within a
context that reinforces the fashion/style/distinctive image of slim
cigarettes as a credible extension of du maurier I quality contemporary
clas@; image.
As with packaging, creative should have a female appeal, but not be overtly
or uniquely feminine.
Creative should include Cues which suggest the better feel of the product
in the hand.
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PROJECT 13ETAMAX
CONCEPT
Betamax is the matinde entry into the slims arena. The orand will oe
di from the ou Maurier entry in two Key characteristics.
1. It will offer a product that is commparaole with the smoking
cnaractezistics of current 3-5 mg brands.
2. Compared to du maurier it will stress relatively more of the female
attributes of slim product although the central thrust will remain
a "product story".
BASIC IMAGE ArO POSITIONING VERSUS MATINEE
The brand will oe an extension of the Matinde trademark as opposed to
claiming direct ce:ivaticn from either one of the two existing matinde
brands. In most executional areas, however, it will draw heavily on
Matinde Extra Mild's positioning and design characteristics for its
direction.
In conjunction with Ene oas product story, Betamax will exploit the
female characteristics of slims. As is the case with matinde Extra Mild,
the female appeal should be implicit but not overt.
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Given the entry of the du maurier image and the "reduction" of the
projected aetamax product to a 3 mg level, a direct adaptation of the
current matin6e Extra Mild imagery would De very appropriate.
TARGET MARKETS
Tne primary target for Betamax will oe current smokers of 3-5 mg orands.
In demograpnic terms the target is females between the ages of 25-49 with
primary emphasis placed un tMe uwer 35 portion of triis group.
PAOUUCT
A starting point for product development is:
PRODUCT
Tar Circum- Filter Tipping
Level Length ference Length Lenoth
3 mg 84 mm 23 mm 25 mm 30 mm
4 mg 100 own 23 mm 25 mm 30 mm
Care snoulu De taken to ensure that puff numbers and burn rate do not
differ significantly from tnose of non-slim products in the 3-5 mg range.
in terms of subjective characteristics, the product taste should De Katinde
DaseC, flue-cured, virginia. A menthol version of Dow lengths will also
be developed.
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The products should caiiver per puf f taste ano SMOking Mechanics that
compare favouraDly with those of oranOs 1-2 mg higher than the slim
procucts tar ratings.
The tipping colour will be white.
Any decoration on the product itself will be subtle, tasteful and "normal".
NAME
The brand will De called matinde Slim(s).
PAC-OGINIG
The initial wave of development appears to have left us close to a
realistic pack expression. Any further development will be a refinement of
the Des: of these initial- prooes.
CO.MMj4 I Cr
As with VHS, the primary oojective of Setamax advertising creative will be
to position it as a brand which delivers specific PrDOUCt benefits as a
result of reduced circumference - a little less tobacco which gives lower
tar wnile maintaining the taste and ease of draw of relatively higher
delivery orancs.
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unlike VHS, creative for Betamax must ensure tnat tnese benefits are seen
to oe.aeliverea specifically in relation to the veEX mild level of smoking
(3-5 Tj) that matinde Dest represents.
Clinical or scientific platforms are to be avoided. The product claim
should be articulated within a context that exploits the "more for women"
image area of slim products. Given that VHS will offer elements of
"contemporary claSIS and rjuality" and given that the revised product
specifications for Betamax are in line witn tne Matinde Extra Mild product
position, the "active woman" posture currently used for matin6e Extra Mild
is an acceptable platform.
Althougn the sales potential for the orand appears to be in excess of a
category "B" launch, Betamax -nay be communicated witnin the same
"advertising dollav as Matinde Extra Mild. The increased precision of
appeal and tne reduced tar entry point makes this advantageous from ooth a
strategic and communications point of view.
Creative should not, nowever, restrict itself to slashes and two pack ads.
The Matin6e Extra Mild creative can and should form an integral part of
communicating what Betamax is all 80out.
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Betamax work proceeded largely as outlined. The higher tar options posed
prczlems. When the smoke cleared, we found that although their concerns
were very similar to the mathematically minded smokers in the ultra-low
area, the language and level of understanding of light brands was
significantly less. In order to get them to recognize the product benefit,
we virtually had to explain now light brands were currently Deing made.
The exercise of bringing them to understand what we were doing reauirea
significantly more communication than we could hope to effect through our
ova ilaole channels.
The higher tar project was simplified significantly. The lack of need for
a direct orand comparison allowed us to explore a wider range of imagery
options.
The final position was defined as follows:
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PROJECT VHS
ORIGINAL NEW ALTERNATIVE
Concept
Because it is slim, it Because it is modern and
is also mooern ano distinctive, it is also
distinctive. slim.
Product USP
Slimness gives you a "Slimness MaKes it milder".
lighter cigarette witn
tne saw taste.
Brand/
TrademarK Derivation
A direct generic off- Derived from du maurier
Shoot Of du maurier but done either as a new
Red and/or Light or du Maurier (du M X) or an
Special. endorsation (X by du m).
Treatment of Slims
Integral part of name. A prominent, but reduced
component on the pack (like
the treatment of "filter" on
Export A or king size an
Rothmans).
imagery
Contemporary, distinctive, Contemporary, distinctive,
classy - non-feminine. classy, non-feminine - casual
(not "nightlife", not t7ra-ol-
tional/classic).
Taroet Stren2th
Slightly milder than Slightly milder than
du maurier du Kaurler Red/
parent. du Maurier Light.
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ORIGINAL NEW ALTERNATIVE
Taste Level
In product and communi- Not specified in communication.
cations, equivalent to ProCuct should target for same
parent. as du maurie Red/du maurier
Light.
Actual Tar
Kings: 8-9 and 12-13 Same.
100 : 9-10 and 13-14
Taroet
Females under 35 pre- Females and upmarket males
sently smoking 10-i2 under 35 years of age smoking
and 15-17 mg K. S. and 13 mg+ ano 10-12 mg K. S. and
100 mm brands. 100 mm orancis.
Both oranCs are virtually developed at this point and are scheduled for
first introduction in tne fall.
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SENSORY IMPROVEWNT
"Less" can, and we assume must, be offered to smokers in ways other than
tar reduction/healtn improvement.
The following project, 11CRAWFORDII in our vernacular, looks to capitalize on
what appears to oe a significant and increasing need among Canadians with
respect to the suojective quality of smoking.
IICRAWFORUII began as an exploration of how we could make snort term tactical
gains in the menthol segment.
Menthol Drands account for a slowly declining 6.3% of the Canacian market.
ITL Is corporate weakness and opportunity can. be clearly seen by looking at
the performance of our oranas relative to the distrioution of menthol
uusiness.
1963
TAR SEWNT CAMEO % ITL
13 mg 1.8 1.4 78%
9-12 mg 3.5 .8 23%
-5 mg 1.0 - -
TOTAL 6.3 2.2 35%
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After the initial extension of Cameo Extra Mild in the mid 19701 s, we were
forced, oy Priority pressures on our resources, to eliminate further
marketing effort on menthols. Competitive activity and the natural
evolution of the segment left us tehinc and in the early 1960's we began to
consider means of improving our performance at the lower tar levels.
Faced with virtually no current information in menthol perceptions ano
motivations, we decided to begin by reviewing menthols on an overall Oasis.
This qualitative work on the Perception and role of menthol was
coincidental with a major project on brand images in Canada. That exercise
produced some startling evidence on how Smokers saw brands, what they
thought they had ano what they claimed to want.
Tne combination of these insights significantly altered the direction of
the project. Although the initial concept of a new menthol option remained
a development priority, this new input suggested that there were larger
V
things at stake. It was summarized as follows:
PROJECT CRAWFORD
POSITION #1
*ERE DID WE STARr?
1. Crawford's objective is to improve our ueclining snare of smokers moving
from non-mentnol to menthol orands.
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2. Based on this onjective, the exploratory phase of Crawford has focused
on understanding the motivation for smoking menthol and their current
perceptions in order to lay the ground work for a better menthol/
mentnal-like alternative.
A MAJOR CAP
3. There is a significant need among smokers for a product tMat reduces or
eliminates tne unpleasant things that occur in their throat and oral
cavity as a result of smoking. Tnirty-seven percent (37%) of smokers
claim "less --tation" is an extremely important quality in their
cigarette. Twenty-eioht percent (28%) of smokers maKe "better
aftertaste" -, n. a Si no le biggest product improvement. They want this
moclerat.ion to a oreater degree than taste, lowtar or any otne: sircle
product attrioute.
4. Non-menthol smookers nave not identified any brands Oat respond directly
and acceptanly to I concerns. The only standing perception is trat
lower tar Drancis are less irritating. The attribute in these oranas is
paid for wiv-) taste and satisfaction. In spite of their desire for
improvements in aftertaste, smokers do not perceive significant
aftertaste C.-fferemes among existing Drands.
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5. This need for a "Cosmetic" improvement is broad and, in effect, without
distinct demographic skew in terms of age, sex or current tar level. It
tends to ce focused in English Canada, specifically in Ontario and
British Columoia.
"COSMETIC" CONCERNS - MENTHOL
6. Menthol does deliver these "cosmetic" improvements and cin develop a
market position as a result of them.
- Tne Dasic value of mentnolation is its ability to moderate or soften
certain aspects of the smoking experience. It reduces the oral and
upper respiratory rJrawuacks of cigarette smoking, according to R & 0
and according to qualitative responses from Canadian smokers.
- It appears that tnis reauction of "cosmetic" problems is tne primary
motivation for the use of menthol cigarettes in the marke: today.
- The potential in the market for a well-desionen menthol product
positioned as a solution to these "cosmetic" proolems is reflected in
the 30% share achieved by menthols in the U.S. market on precisely
this platform.
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Al
11. As a result, non-mentnol smokers presently reject mentnols ou: of nano
DaseO on:
Taste: smokers-say they do not like the taste of menthol. Minere is a
reason to believe that these taste objections refer less to the
actual taste of menthol than to an unacceptable rea ",-tion in
tobacco taste wnich is projected by smokers into a reduced
satisfaction. Smokers we could define as real "seekers" or
"cosmetic" improvement rate rich tooacco taste and satisfaction
to be more important than the market in general.
Irritation: non-menthol smokers finO current menthols provide toc much
coolness. By definition, unbalanced menthol does proauce lower
tobacco irritation, put it replaced it with its own form. of
irritation - menthol "burn" - a cure worse than the oisease.
THE U.S. APPROACH VALID IN CANADA?
12. Wnereas our menthols force smokers to pay for the desiraole sensations
of coolness (irritation reduction) and freshness (aftertaste
improvement) with the loss of non-mentnol sensations that tney fino
necessary to smoking satisfaction - American mtenthols more selectively
eliminate/reduce negatives, allowing the smoker to experience the
attributes he finds desirable.
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SO WHAT I WRONG WIrri MENTHOLS IN CANADA?
7. In Canada, menthols are not widely triouont of as acceptaole solutions.
They are not perceived to deliver "Cosmetic" improvement. Their use,
even on an occasion oasis, is declining.
8. Erosion of regular/occasional menthol use can probably be attributed to:
a) the rate of introduction and growth of low tar productc. which have
successfully competed with menthols for the position of a less
intense smoking experience - assistea by
0) tne witridrawal of meaningful menthol suobort levels required to
reinforce their credentials as acceptable solutions - at a time
when
c) menthol brands "non-prodLxt" images mad narrowed to an unacceptable
level of older femininity closely tied to what has so elegantly been
descrioed as "morbidity" - illness related use.
9. more importantly, current %Canadian mentnol oroduct design and tne
Smoking exoerierce they provide severely limit the potential for wide
acceptance.
10. Present Canadian menthols are "unbalanced". In Canada, menthol-related
sensations are tne dominant characteristics and tne more desirable
tobacco cnaracteristics are obscured or lost altogether.
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-7
13. The validity of vie "balance', American procuct concept in Canada is
reflected in smokers, positive response to two concepts:
a) "The coolness of a menthol that lets the full tooacco taste come
through without the taste of menthol"; and
b) "A fresh new taste experience that outshines menthol - it not only
tastes fresher when you smoke it, it even leaves you ;ith a clean
fresn taste".
WNTHOL SMOKERS - THE SAKE BUT DIFFERENT
14. Menthol smaxers are motivated in their orancl selection by the same
desire for an alleviation of the "cosmetic" problems of smoking that
appeals to non-mo-nzmol smokers. They are differentiated from
non-menthol users in terms of what they consider to be positive
sensations in smoxing and their importance. Masking of tobacco flavour
for current mentnol smokers is significantly less of a negative, indeec
it is a positive.
15. However, they also express an interest in further reduction of
"cosmetic" negatives.
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PRODUCT DEVELOPMENT IMPLICATIONS
0
i6. As a result, test products produce two responses:
a) alternative flavours (spearmint) which furtner extend tobacco
masking appear to nave a reasonable likelihood of success against
menthol smokers. They are judged to have a little more than fad
appeal to non-mentnol smokers.
b) Balanced products have a reasonable potential against non-menthol
smokers whereas they are a step backwards for menthol smokers.
ETC.
17. menthols appear to imply an important smoking and health moderation -
not surprising in light of the reasons for their selection.
WN-PRODUCT IMAGES - TRA0EK4RKS
18. The range of non-proauct image attributes exoluited by menthols is
narrow and unflattering. They are older female and strongly associated
with occasional use during illness.
19. drancis are not well differentiated.
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20. As a result, Cameo, or virtually any existing menthol trademark, is not
appropriate for this new development project. There appears to oe no
major liability in using a non-atenthol trademark. du Maurier,
Player I s, matinde and Sweet Caporal were tested among smokers as
potential parents for this concept. In very preliminary work, smokers
perceived no significant incompatibility.
So WHAT?
The size and performance of the menthol segment in Canada today does not
reflect the complete potential of our industry to market products with
"cooling-refresning" attrioutes. It reflects the potential for menthol
Brands at the extreme. level of moderation, -To a significant segment of the
market, meentnol effects are highly desiraole out are inaccessible in
today's prcdu=zs.
Tne expicratozy work on Crawford indicates that there is a meaningful
OoDortunilly for a ID concept which uses menthol/menthol-like additives
to selectiveiv recuce or eliminate undesirable "cosmetic" aspects of
cigarette smoKing, while leaving the positives intact.
It is unlikely that this opportunity can be exploited oy any one crand.
The "selective reduction or elimination of undesiraole "cosmetic" aspects
of cigarette smoking will mean different things to different smokers. What
do they want reduced? By how much? What must Oe left intact? Flow Much
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traueoff will they accept? Ideal product movement is not focused in any
one agLF, sex, or tar group - and we know these groups already select
different attributes with different levels of importance in their present
prooucts.
These conclusions led to the following project definition:
POSITION #2
2. Positioning
Crawford will oe positioned as a cigarette which alleviates the
undesiraole sensory aspects of cigarette smoking. The main conditions
it will address are dryness, irritation and aftertaste.
3. Target Grouo
All of our information at this point indicates that smokers' interest
in the Crawford concept is not Skewed to any one tar level or
demographic group. As a result, the target group for Crawford is
defined as the greatest number of interested smokers who are likely to
provide an opportunity for executional consistency.
... /49
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BATCo document for Province of British Columbia 14 April 1999

Crawford will initially aim for an introduction of one oranci at two
lefels of strength. An upper strength level will be targeted at under
35 year old males and females currently smoking high, hign light and
mid tar brands. A milder "companion" will be targeted at male and
female smokers of mid I ignz, special and traditional low brands.
The primary emphasis in terms of executional direction will be the
higher tar smokers. The Milder option will derive from this central
design direction. If a milder derivative of the higher tar option
turns out to be less appropriate than other unrelated concepts at the
lower tar level, a separate Development project will be isolated to
meet the needs of this group of smokers.
It should be noted Oat tnis approacrk leaves other significant gaps in
the market opera. There is little doubt that the Crawford concept is
also relevant to a meaningful number of smokers currently using brands
under 5 mgs and existing mentnols. These development options will be
pursued as separate pro4eczs (Projects Jazz and mellow - see chart).
J
4. Product
The Crawfora product will use menthol or menthol-like additives to
achieve the Oesired improvement. It will contirmie to explore along two
paths - a "better" menthol cigarette - and a new taste (spearmint). As
opposed to existing cigaretzes that use coolants, however, the final
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BATCo document for Province of British Columbia 14 April 1999

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0 Smokers - 35 years old Smokers + 35 years o1d-@j
I Male Female Total male Female Total
High I I - I I T--
Highlight 6.6 1 4.4 1 3.3 1.7 5.0 16.0
Mid I I
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Total 7 7.0 1 14.9 .7 4.3 10.0 24.9 1
0
0 Chart expre se smokers who wanted Im 'ed aftertaste as a percentage of the total market
S
Project Crawford: Project low: I Project Jazz:
Cr 1
Males and females - 35 years All smokers of non-menthol Current menthol smokers
of age smaking brands 13 mg brands - 5 mg
and up and all smokers of
> 9-13 mg'-brands - non-menthol 2.8% of all smokers 1.3% of all smokers
i5.8% or all smokers 10.4% or all smokers who 4.8% of all smokers who
expressed a desire for expressed a desire for
(O 59.1% of all smokers who Improved aftertaste Improved aftertaste
40 expressed a desire for
to improved artertaste
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product must deliver the positive effects of the coolant with as little
.0
reduction as possible in the desirable attributes a smoker experiences
in his current cigarettes - in effect, a good smoke foremost that also
delivers the benefits of cooling additives.
The necessity of maintaining strong rm-mentnol smoking Characteristics
in the face of the moderating influences of the cooling additives may
necessitate the use of "tastier" tobacco blends than current flue-cured
virginia tobaccos and/or flavorings and casings. The possibility of
this product design consideration is not excluded under Project
Crawford.
The likely tar levels of the two options are 13-15 mgs and 9-11 mgs.
King size and regular lengths will be required at both tar levels.
5. Corwminications
Communications must also express the basic proouct benefits and
characteristics without creating rejection by being too reminiscent of
either current menthol products or current menthol imagery. A ranoe of
conceptual approaches will be developed with the two-folo objectives of:
a) Correctly and credibly establishing the product's characteristics.
0) Validating the product concept in non-product image terms for a
target that is distinctly younger and more male than current menthol
brands.
... /52 CD
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BATCo document for Province of British Columbia 14 April 1999

Development work after this focused an brand development. Product/
technorogy was relegated to exploratory work as we attempted to
understand the need are completely as wall as how to express it.
The situation was akin to that of a premature light brand. How do you
tell smaken that this brand is better for their health when they have
absolutely no framework or vocabulary with which grapple with the
problem? "All cigarettes have aftertaste - except this one?"
The real crux of the problem is now to tease out the subtle interplay of
communications elements. Some of the early, rough, unsuccessful attempts
follow. Significantly many of the pre-light strategies emerge in this
new context. Significantly product technology and what is possible is
not at stake.
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BATCo document for Province of British Columbia 14 April 1999

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We realized three critical facts in terms of the concept:
1. We did not need to explain how we achieved the product benefit.
2. "Freshness, clearness, were not credible oenefits. Smokers were
not interested in the idea when it was *smake this cigarette to
make your mouth feel clean". This was a benefit not related to
smoking. More pleasurable smoking because of the elimination of
negatives was motivating.
3. We needed a means of expressing the problem that raised it
obliquely within the context of enhanced pleasure.
The following concepts were far more successful to a point where numbers
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point acceptably across.
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The following was required of any potential products:
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1) A reduction on some scale of tne side effects experienced by smokers.
2) Good tobacco taste.
3) Absence of identified menthol taste at the beginning... and over time.
we have learned that in a purely qualitative sense:
1) The use of detectable levels of spearmint is not viable.
2) The use of obvious levels of conventional menthol is not viable.
3) Tne use of "low" levels of menthol can achieve perceived product
benefits in the area we are looking for provioed the level does not
mask the smoking pleasure - real tobacco taste - of the product.
4) While some respondents may be able to detect a low level of menthol,
others may not.
5) A modified recipe (Al.e. an A.M. S. ) might enhance the smoking
characteristics sufficiently to permit a low level of menthol to
achieve certain sensorial improvements.
(if you boost the =adng. experience, you have greater latitude in
allowing menthol to address irritation and harsnness (aftertaste)).
This may be more difficult to achieve with a conventional flue-cured
cigarette.
... /55
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BATCo document for Province Of British Columbia 14 April 1999

6. We must De very careful as to what is done with the smoking
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satisfaction side of the equation.
7. "Crawford" product candidates cannot have a detectanly non-t=acco
pack aroma or sidestream.
8. Some of the test cigarettes were perceived by the respondents to be
cry/stale and have a fast burn rate. It remains to ue determined if
this was a function of the menthol load or the cigarettes themselves.
9. Mien mantnol levels are at tne "SUO - level", respondents
appear less likely to identify sensorial improvements in aftertaste
ani/or harshness than when menthol levels are at/ur around a threshold
level.
The project remains in active development. Its fate is currently in the
hands of R&D who are working towards reasonaole produce alternatives.
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BATCo document for Province of British Columbia 14 April 1999