@10 M: J L '-::-een DATE: 30th Nov 1989
FW-kl: R Brentnall
SZ.&TECT: 555's - British C@Iunbia
Further to my recent short visit to Vancouver on Friday 17th
%ovember, the local :.-perial team and Richard Ward, Duty Free Export
Manager, have provable,-' mxh assistance and information towards the
coM.ilation of this report.
I have deliberately made conservative judgements on the sales
potential for 555's as entry into the market will be difficult for
two key reasons.
- There is no tr,:e Virginia segment at present with most first
generation Oriental sm-kers now happily converted to a modified
Virginia taste.
- Exposure and corrLuucation opportunities for any new brand in-
store will be severely limited and all additional display will
have to be paid for.
Nevertheless it wou:d appear that from a modest base of 3% of the
local market - 6.5 trillion in the first year - to 10% in Year 5 - 28
trillion, a nett net": contribution of E345,000 could be achieved by
Year 5.
Pack design would have to be dramatically altered to accommodate the
requirement of Bill C-51 (similar design to the Hong Kong packI.
The assumption is rade that production wvxxld be from Southampton
therefore carrying :he all-irqportant KIE legend. The other issue
wotild be the question of L-peerial's willingness to handle the brand
in that region and at what cost (I have made the assumption of a 10%
RCO).
Attached are the fo-'.'owing:-
Appendix A: Backgrazid
Appendix B: British Coltz*ia - Market Potential
Appendix C: 3555's Potential
Appendix D: Launch Costs
Appendix E: Pricing
Appendix F: 555's Pricing and Contribution
Appendix G. Zcperial View of Original 555's Launch
Appendix H: Market Shares
Appendix I: IrVerial Tobacco Limited - West Region
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BATCo document for Province of BritiSh Columbia 14 April 1999