re gti we t 0j E"q 'r no suiinci~ 4 about "lakitio wonew fiom 5atiWed Consumers Without w6fied coniumer~ :~2~ There can be no future for wi tw .. 791 ? rgj- . tt: R I t (A PIZ, BATCo document for Legal Services: Health Canada 22 October 1999 h4rkefisio Ooarefte~ i~ a+ + I+ + , nart A 54iencc *eV BATCo document for Legal Services : Health Canada 22 October 1999 I wh4t are me f"Ajor MON" ~041(4410 1"MANip 4t#j other 40'"~Owg'r prodwN cladreflei OMPOIC4 to M11gy ion w M er pfoduiN ", Saw. ft~.- Vt5 IS BATCo document for Legal Services : Health Canada 22 October 1999 NOW do bra",14 aid Value to were rroj"~W 10 COmmunicate wour imace to otheri . 4E- C ~ BATCo document for Legal Services : Health Canada 22 October 1999 iqaroffe mariell-" Tati4me"fal to"tf~" 4 Wtliumer decision aare Re brand~ are 4 not lik people W$ not OYIIU 0 Personal theq have a dMincl choice PC fjo n a 1 -19 Z-V 50cial forces plot) a much which varies occordina stronaer role for it to whom is as M. Z~ - f-,T -A0 21 'g WN PP. t I.- W v To ~mokarls relationship a brand depends ovi 7 ach ievino the best fit betucen hOiJ he would like to set himself how he likei to ~e icoi bu olliers BATCo document for Legal Services : Health Canada 22 October 1999 for 5moliori 60areffei UL) I VILI tire The moit ptirchaied bchavi ou r branded producf5 daily repeat purchj5e win lead too Woh level of brand logolty -4 rapid chanae in habitual brand bu4inq ratter"5 low interest purchase, repetiNve purchase are difficult how doe~ Drand work VI C-ita"al factors Cause reevaluation new brand 101AY14hes of self and 50cial imace 0 Can be wn 0i an PIOM040" 41 Of MMial fditOr -clionde indirect jo confacti they ca" offer "NE ~t hallat im life Oda -7, in socielief Which 00 the COnsumer ati altemative option throuch rapid izzonomic cha"de the proceii 00C5 im more stable it j~ veru hard to chance pemptior societies th4 iso lono term trend -'offerwa rdi " -, ~"- *of 'F"' Pat it can be done, I . . but it tako Preciijon, funds and time 3 BATCo document for Legal Services : Health Canada 22 October 1999 L oil% U III er ~,l I i4ac I I om Comumer satisfaction ii not quaratifeed for ever otherwise new brands would not have a chance :=ular qualitative ftk-ups will demonstrate tht- realitg of comumer rodu4t performamz Val" ~or M0,10Y N and falfe a~- 0, 77.' M , M right im4a g fit 7MW right 00105 7Z: rot nl- -r7. 3C C-7 BATCo document for Legal Services : Health Canada 22 October 1999 bftitid ro~,Ihotiltia ~rand Poiltionilia 4 Jh iterative prote~4 wntinuouilt4 update Positionino a relevaV11 the ba~ic laulich brand offer in iti relevant market wMellf Wifhoul foosino . . . the Pofftiovil"o to whom are we -;r how do I want 0410 to Commurlicate Cons4tefl(V MU brand to be Ren -marketing people 3hould ~fOcus on incremental diihnctive brand .. 7- ;r-; - A2, ImProvemeA 7Z. benefit /product A W-N U Character juper iorifq chanae; are radical COY10stenct) of brand PrMsitfon 7- ~zfi for Cor;~Umer preference Cr,% BATCo document for Legal Services : Health Canada 22 October 1999 CiCmCnN Of the MaActitto mix above the line t4pes of oulleti where media d4triNtioll the brand 4 available below fhe line -(MgrChand4i"#' FOW of ZA" -disifibution and tvical wn 05 of wer ubconi6mly by COt"UMeff itl 9e"9r4f pad ei the brand price tmaqe MufiflO the Fprfce if co"14tentu CO"fis(9111 with brand Valuti rodutt need to faurt conifsfe"44 ificatio" of P(oduif over time trade "tak Marketiq "On-dogreffe diverfificafton productj Whith fil the brand ima;e BATCo document for Legal Services : Health Canada 22 October 1999 branj PlOnyll"Ll pfocc~,j far;ef Cow amer bfand Fo5i tionina manager market' total offer comumer) 3 f BATCo document for Legal Services : Health Canada 22 October 1999 a"640"~ I would like to a~u 57 R wo F 6:4, 5. nn- *,-, " ~ 7 3a ^ CL BATCo, document for Legal Services : Health Canada 22 October 1999 (ml H.,0 0"f 16, he ion "met aW hiff neeed~ kworette delivers who f do we need ~haf do we lino w , 3 ou to know about The three benefits to the (0mumer. cons=er phwlcal rational emottonal ~ a ~,UtX,,iful tnarld MU.'r --t. COMMerphOical needs deliver all Mice bonefil" bellet Ilion ik dirm competitor I t t z!F flavour Produ sou N7, Q71- -5; - filtration k performance 77T oral f"I . . . . .. - .. . ~j stimulation 44 BATCo document for Legal Services : Health Canada 22 October 1999 coniumer rational need; Coniumcr .mclional need; how W4 rationalize their decision ielf moil cioarefte comurneq C'M640r; preffige are ver4 cotiservalive f" perf0flality 0 What is acicept4ble to them 4nd their circle of triendi deiiqn and marketing ftxfore a bow MWt h"e --;-;E reas,m for wlation that A The co"wer (~n ratio, - social nalite to hit" self1his qroup ran il, the beft V41uc tar and -:4-. m4 ftnd 4 low to r IV r4 clet, 0 and it 40f a 000d tafte It) 401 more lr~-f t~T 7 It der ---- 50mewhere, he N4', oil - Fter ar young./mature nust be o it the M I q U01 04 whL4 should 1 P-30 for '111 I~iat advviDivia C a avieric purchaier C) BATCo document for Legal Services : Health Canada 22 October 1999 chorkizi In Consumer needs.- ~Iefeteyur~ are often ~Iimulated bu Industru actIVI'lu filter filter low tar local consublerf are not identical -.m- 4p coniur"ers low for have dMinct needi 7: Ora low to. r. 7-,-,~-- *7~-.:~-~-. ''. IL-FM. . . . . . -1 . - , .-- g. what influeylce~ AESR - )U"Iers choice W BATCo document for Legal Services: Health Canada 22 October 1999 Thmas we need to Constimeri can not fell us what their needs arc W11h Ono precision 1 io we need to undentand: We Can understand 1heir needi by inference from Their behaviour, attitudes, and evaluationi, of brand$ and qroduc4 zjtA Pro dud g~ M' W - -OVM, ; . - isIributioti 4~ %-; -F i .'., C C-* Q'i BATCo document for Legal Services : Health Canada 22 October 1999 averoad 6.011t) iftformallon area coillumptioll behaviour l9nq1h of time wurce of WIN regular Furcha~c brand lboi4z if fcoular previous br4nd no 10116er fre4wefu&) of roular brand marketed purchze de;rge of purchase of involivet"C"I Willi 01her brandi reoular Df4od 01 Information area information area allitudct allifudef to - smoker profile imokitiq and bectilh 449 'at 4,-, -. , i I - .., . --. 9,. - -2. M . Z:7 R - - - i . Z.:; - life 44;( CI -t- BATCo document for Legal Services : Health Canada 22 October 1999 Informallo" area Informaliorl area MIU-43, fjojutt bland hedith ,;U0IIIU imokinq gua Ii ty Frot'lem'AdIfecl, eniou"Iffed brand adiort faie" awarentf~ deafte Of created diaqm4 of d4tow COMIUMer Foof ible f freng M 0 f, 'Jarj "fory 1wtqUaqC for wok"Coo 6;MUaUV" 'PQ informalion arca wl;r- ;::z, .511 t., M"." 40(b duralion of ;4 *Af Out -of- Ixk purdfafef 411414f4 Penetration Ilf 011 U-1 BATCo document for Legal Services : Health Canada 22 October 1999 thit thinO 40C n®J to know ili cach area Il Whal comelu~ion ca*l 4je 'Iraw 5-6 from th i~ information lieu whl&h help Ut Io caLk k1g fo di~icietifiale I;lc &o%unicr in(ormation arca ~r"Ohgr profile aae location It )Make in different ord"44 1141ye' di4pO)jbfe trom older people Ito choite income u ~Q,~ than in the ~pecialitj trade YOUR* people are pit with hich Mor front to -diwofable isicome can iWilch afford hialier prices "'04 M. w K7 k 7 z7M 7t~ C. CN BATCo document for Legal Services : Health Canada 22 October 1999 10formahon area in(ofmallon irea Inforymallon area L'Oliviour j1h tudc I btatid hcallh 1"formalion area lln(ormilhoti area informahon area ~0"olser profile "7'7" 'i M K Z CI, --14 BATCo document for Legal Services : Health Canada 22 October 1999 40uIr Owdid"C9 Pot at tot w1rd 40""Ma r- "T 5- r4a C4/&*sI4V MOW "t, 2) 4F for sifaf BATCo document for Legal Services - Health Canada 22 October 1999 Wfiat are The of market wometitation 1, ~0"64 r4k~ gz K~- T -2~ BATCo document for Legal Services : Health Canada 22 October 1999 Market I I s a Major part Ill Whu - there is an increased . , I - -.: ". .. . ; e there is in improved Wndirild"dino Of .--abilitq to idetllifL) con sumer needs, decision market oapflworluni he5 Processes and consumer ~Uand acirl sustainable competitive advat,144C the ciadrefte market if ---Off Z-;t 0 ae 590mented markets - 'I. there 4 a dearer facm , - 1 Nn the world '-I: -P, . for Marketinq Itraleafei t is bo Ili - and implemodable induOro ~iafed ,action Pla"f WIF5 u~ conantrate ai well as consumer ~Oarw of 1! he u Me wiour~e~ difined , Fl- - BATCo document for Legal Services : Health Canada 22 October 1999 how iridutry )fcMcMr~ flic Markcl 1 tar fgvcl full NdvourAmild/ lowtdf. affra low tar alwayi correirond to thii dafiification 0A Virg/Twult/ blend type - . . - :;~ " - - , . . a150, the daifification is Product driven Kmiec 4,M 5.~ ,k4 ON 7d , 5-- hw/low International, brand Local 7L, BATCo document for Legal Services: Health Canada 22 October 1999 how IN ~Onwmcr Ould ~Comcnl ~hg "lit Let 049 >ex tfadc off offitoje to 1"lloyation life staoc 2Z ~7w !IF IRW -7, tit i5 C> BATCo document for Legal Services : Health Canada 22 October 1999 slep~ ill hat~xt identify baiei for 50mifitino the market 5eled Ike target dMiop Proff ie~ of conwmer5 41 resulti"o A~. 44 develop f0jitionima for evelop market each target !Y1 Matw attractivenefi lop marketing mix ~--7 7 for each taract market 7d BATCo document for Legal Services : Health Canada 22 October 1999 'a"04tiotif atij wmmetjf~ 1~ w-4. 54- 0-MRIN I BATCo document for Legal Services : Health Canada 22 October 1999 Q~N -f -eo -0e, IKE 7 X\ )V tj 6 i NnWmer 6 N.A .. 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Cz U1 rc 42 rz LU BATCo, document for Legal Services : Health Canada 22 October 1999 FUNCTIONS OF THE CIGARETTE DESIGN OPTIMISATION OF TASTE REALZATION OF SMOKE FIGURES 7'A R NIC077ME 0 (CO) k-2. CONSIDERATION OF FUNCTIONALITY e.g. MECHANICS (DRAW EFFORT) PUFFNUMBER COAL 1ASH RETENTIoN A CHIEVMENT OF PHYSICAL PROD U FIRMNESS ENDS STABILJ7-Y ESTHETICS OWDEA MVW 4.1.0 BATCo document for Legal Services : Health Canada 22 October 1999 V i- W 0 q: U U. z C.) LU IL LU La LL, Z rL- a ~V~ -22 A= 0 0 07, (Y*, BATCo, document for Legal Services : Health Canada 22 October 1999 r 0 M 0 cn ~ (1) IM . M 62 E E- o CL r- 0 i : r. w (D = CL a 7E aa 10 0 cc LU in *-# - ----------- GI CL 0 Q .. w . ca r- CL - x U) LLI 0 0 06- CL 0 C-I 01% BATCo document for Legal Services : Health Canada 22 October 1999 CD cn z W! ul Z ~ z -- ~ (nM CL . w a z a 1 a: P < 1 ?-- M) LU i z GO (J c a .. LU W U) .4 -1 a: z z œL < Z; z (5 < 1 >Ii < a z 0 ~O L < 5: 0 W … . (n CL z c~1 0 w cn U) CO 9 . 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UP LU 0. : - rr 40 0- A0 tu 0 CL W ~0-- - Ui - , : I , cr. 0 - 03 LLI 9L -< I- -IL .0 ..... .. .. Cr_ D 10 U1 LUF LE LLI 0 to. ".:. - .- 'W ~., V : :!a. .0 a 2 .1 .. :, 0 0 C: BATCo document for Legal Services : Health Canada 22 October 1999 (3) clo = od jr 0 Q (3 >- (D (D Jr CU LU LL-;!---CU a 0 .jj CY) 1 - a) .-- t' 1- E '2~ 0 0 C CD M C036 U2 JM!=: C (n cf) 0 a: ? . r-C) - ~ AW-1 a ~ ' . (.) - . ........... ....... ...... . . ....... ca ... ....... ne ca: CO CI) ............. . . ... N .. ...... ... ------- 7" ,D Cc . . ID . "0 ....... ... LU 0 CL . . ....... ...... . . . Cj) L 'j, U z - ~_ LLI U) < LLJ z z rI LU Z ~fg; cr_ C:5i C( j C< Uj ~e L LU C 2 U) 02 4-d 0 0 > 0 U) L) U BATCo document for Legal Services : Health Canada 22 October 1999 E ®M ;i .0 c lm s¯ Co = g U… CL) E E 0 E - 0 M …c r_ E X E m U 0 0 z e -c-ej :: …- E -0 ck M 0 4) 0 x Co e Co C 43 M (a m CL E E Co 16. E CL E CL LU cz -e- ~- > - - 1 ~ ui - IZ 12-1 It- Cr c~ = a- 1 -r C2 ui BATCo document for Legal Services : Health Canada 22 October 1999 .2 0 f c i 0 L- -t: a ci i ci j I i C,4 E 0 r= ~.2 1 1 0 1 (13 j eu L- I CD C 0 0 -0 -00- 8 M E i 1 0- lu .. la M 1 M. r- 1 0 C 0 M 'in 1 0 16. 'c M C (j L. tu ci. '‚ 0 M 0 ci Ve, j.~ E - ~ 0 4) U) la ,e E Z … Ob Ob 4 *0 0 0 BATCo document for Legal Services : Health Canada 22 October 1999 cn 0 0 0 U) C4 0 C; C 0 … tn 0 0 cm 0 > r_ > E EM 0 1 … cm 4- LOD E = 0 Ca CD IZ 0 a) ci ƒ- CI) N M 0 CD M 2 CD CD =.O = 0 . D '02 Fq L Co 2 ….. l… Il… l… l… BATCo document for Legal Services: Health Canada 22 October 1999 CONSUMER (PANEL TESTING) E. K8hn PRODUCT POLICY H. Sommer TOOL BOX P. Dobson i H. Koene P. Henning QUALITY F. T6dter PRODUCTION A. WeIB/Serfin Factory too 95023K KZVCH 23.ZI.95 N., BATCo document for Legal Services : Health Canada 22 October 1999 L~3 Tf IDENTIFICATION OF NEEDS INPUT: BRIEFING FROM MT ' (jCT DEVFLOPME PROD NT, V 22 -A! 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D 00 … 1 1 1 1 1 1 1 1 … 1 1 1 Z Z Co z LLI > 0 LU LLI > cn < z -.1 :D LLI LL BATCo document for Legal Services : Health Canada 22 October 1999 I PD Briefing Outline Product performance Project environment Project team members (responsibil.ity) - Marketing - Product development - Others (e.g. finance, leaf, etc.) Product Costs Material costs / %0 cigs. Productivity Timings Launch date Decision date Lead times (materials, equipment) CP-Test result Test cigs. ready for cpt Development time Project start Sales Forecast - First 6 Month !ro- Yearly Volumes 1995 ~B!-A- -gT 9!025A 25.01.95 SCAW BATCo document for Legal Services : Health Canada 22 October 1999 ..... . CD Cn IN ft-, k~ I I LU LU: ANI 4 BATCo document for Legal Services: Health Canada 22 October 1999 Elements of Product Policy Taste Type as preferred by source of business consumers e. g. blend types/Blended, Virginia, Air-cured, others or charcoal filter, menthol, Kreteks; market trends/ dynamics 0-1 Quality Level o high taste Q and phys. 0 level branded Consistency o maintain agreed and fixed Q levels product and deliveries I Diversity of Products o have best testing options for potential segments available, (e.g. deliveries) Legal Aspects compliance with law, regulations etc. (tobacco products) compliance with internal rules (AMGP) refers also to Environmental Aspects (internal rules "Road Map") Variable Costs best value for money relationship for materials/processes used high costs Making Costs additional investment in PMD and to be SMD equipment?! justified number of blend/product variants by high benefits old brands: new brands number of materials used League Tables minimum requirement no extrem negativ position (smoke yields, smoke yield indices) B A-T; S-1311C 07.11.94 ScICH BATCo document for Legal Services : Health Canada 22 October 1999 e .. , - '. .3 r. I- L INPUT: BRIEFING MTj 40 P BRIEFING FEASIBLE!? PD - CONCEPT -T--DEVELOPMENT-.,,!,.,,~ ..,.PRODUC , , -to F. 0 IV "91F,. F5 SELECTION OF CANDIDATES FOR CPT BYPDANDMT 7 CPT COST CALC., PRODUCTION IMPLICATIONS, LEAD TIMES ETC. - CPT-RESULTS FIRSTPRODUC77ON PRODUCTUAIWEVANCE 1994 (d 94:1*c 31.194 S04.4 N11 CN BATCo document for Legal Services : Health Canada 22 October 1999