APPMIX A
BhCAGROUND
Appendix G mr-rarlses the local L-perial view of the 555's launch in
1982/1983. Apart, frcn targetting Ci@natown only, the brand %as
premium-priced.
14dlst today the oriental population has increased, no true VirgimA
cigarette is be2ng offered to this market.
overall market shares are 50% Regular Size, 40% King Size, 10%
10(k=. The latter segment is growing at approximately 1% per amum.
Appendix 'i summarlses the top 187 brands.
Key changes to market conditions are the introduction of Bill C-551
and its restrictions on promotion and display plus pack printing
requirements; a change frcm duty and taxes to VAT at both wholesale
and retail levels - details still urJmown; a general decline in
Waking in Canada of which British Columbia has the lowest incidence
of smking (currently at 30% of the adult population).
Drperial Tobacco Lirruted
Appendix_ I illustrates the West Region team - 10 salesren now report
to Saunders and Hoskins. Five of these salesman are of Oriental
backgro@. An office and warehouse, including bond, constitute the
Regional Distribution Centre at Vancouver.
with all sales being chamelled through 10 major wholesalers, the
sales force's role is to ensure product is purchased by retailers
and good in-shop presence is maintained. They take orders at retail
level which are passed back to the appropriate wholesaler.
-he basic term offered by Imperial are 20 days or 2J% discount and
12 days credit. In addition a 1% Partners in Progress rebate is
given annually on the total invoice value less any losses. This sm
is calculated nationally and frcm the mtse*jent pool rebates are
paid proportionate to share of purchase.
Distribution
In the Vancouver area there are 10 major wholesalers and 700 outlets
comprising of mioke shops, mvermarkets, ootwenionce stores, small
'Mama/Poppa outlets", Foodlonigstores, Gas Bars (Petrol stations).
supermarkets account for 90% of all retail sales by carton; Drug and
Food stores 20% of overall business with greatest growth in the Gas
Bars.
A launch for 5521's should be undertaken on 3 key locations in the
Vancouver area - Downtown Vanoower including Chinatown; North and
West Vancouver and Richmond. The Oriental population has segmented
in the poor and t@* more affluent - both target smokers of 555's and
will be resident in the areas noted above. An initial 500 key
outlets would be targetted.
Ln
co
r1i
CZ)
BATCo document for Province of British Columbia 14 April 1999

Pack Bffr
A near design for 555's KS would be required to conform with C-51
plus a Tax Stamp tear-off strip. The pack, carton and case mist
have UPC coding.
Retail Promotion
C-51 has restricted activity to non-branded, non-theme at point of
sale but communication of Country of Origin Ue MIE) could be
allowed and ray benefit 555's.
Price promotion by the retailer will still be allowed and
camunications of prices permitted but not branded.
The use of display units (unbranded) will be allowed and will be
essential to gaining Counter display space at tire of launch. This
space will have to be rented and is costing more year by year.
Branded giveaways are not permitted.
L-4
C:)
LrI
co
r%;
CD
rII_'
co
BATCo document for Province of British Columbia 14 April 1999