STATE EXPRESS FILTER KINGS
LAUNCH INTO CANADA DUTY FREE
Brand
State Express Filter Kings
It will be the same product as the Canadian domestic version
ft will carry, Canadian domestic health warnings as well as special
'Duty Free' clausing.
2. Product Type
It is a Virginia product
Made in Southampton by SATUKE
Deiiverv levels are 16 mg tar 1.4 mg nicotine
3. Intended Markets
Canadian Duty Free outlets which cater for a significant number of Asian
travellers. This includes both airport Duty Free shops and Border shops.
Airport Duty Free Shops
Airpon Shop Operator
Montreal (Mirabel) UCS
Toronto T1 Allders
Toronto T2 Aliders
Toronto T3 OF Shoppers
Calgary OF Shoppers
Vancouver Aliders
Border Shops
British Columbia 4 outlets
Ontario 5 outlets
4. Invoice Price
Invoice price will reflect that of other mainstream imported international
brands .
Rothmans King Size C$35.50 per mille
CD
co
BATCo document for Province of British Columbia 14 April 1999

2 -
5. Price Category or Position
Mainstream price positioning
555 SEFK must be on price parity to the highest priced King Size
international brand.
6. Retail Price
3 must reflect that of other mainstream imported international brands.
On shelf (200) C$ 21.99
7. Manufacturer
The manufacturer will be BATUKE. Southampton. The brand will be available
in a 200's carton and supplied in a 5 mille case.
8. Brand Objectives
The reasons for launching SEW into Canadian Duty Free are as follows:
- To increase the 'intematonalism' of SEW by making the brand
available in an important travel market
- To mammise the avenue of Duty Free as a shop window to the
international traveller by increasing brand awareness and by
generating brand trial I amongst key consumers.
- To generate incremental sales volume and contribution by
making the brand available in a new market.
?00-1 - To support the local domestic markets of Canada and the USA
through brand distribution awareness and advertising.
- To focus SEFK as a direct competitor to other intemabonal
imported Virginia products such as Dunhill International
and Rothmans King Size amongst Asian consumers.
9. Target Consumers
Mainly males
30 years and older
Affluent
Far Eastern nationality
Ln
to
BATCo document for Province of British Columbia 14 April 1999

3 -
10. Brand Proposition
As per 18 guidelines
II. Marketing Rationale
SEFK is to be launched into Canada Duty Free to compliment the
following:
- The large influx of Asians who are now settling in Canada
- The recent launch of SEFK into the Canadian domestic
market.
- The size of the cur-rent Duty Free business due to the cross-
border traffic.
Timetable
July 1992 - SET approval to project
July 1992 - Confirmagon of packaging requirements
Aug 1992 - Production of packaging requirements
Oct 1992 - Production of product
Nov 1992 - Shipment
Dec 1992 - Launch into Canada DF market
This timetable will be subject to delay if imperial Tobacco, Canada do
not confirm packaging requirements by mid Julyl 992.
13. Volume Forecasts
Please refer to 5 year financial analysis
14 Research
- Duty Free demand will reflect domesbc market performance
- Launch will be undertaken on a selective outlet, minimum order
basis which will act as a controlled test market
- No formalised research will be undertaken.
15. Target Brands
Dunhill Intemabonal
Rothmans International
Rothmans King Size
U-J
CD
co
BATCO document for Province of British Columbia 14 April 1999

4 -
16. Support Plans
1993
- A 1 0% free goods offer will be made with all Duty Free operators
first. order (standard market practice)
- Media merch investment will be made in Duty Free shop signage
and promotional materials.
1994 -1997
- Continuing investment in DFS signage and promobons
- Level of investment El per Mille
17. Set-Up Costs
Key points are as follows:
- Canadian Duty Free product must:
Carry domestic health warning
Incorporate special "Duty Free" clausing
Artwork costs
El 000 - 03517 705327
Packaging costs
E3000 03517 705323
DGNISCRON-225
co
co
BATCo document for Province of British Columbia 14 April 1999