Z 11,r-ERNATIONAL -LYSIS OF COM.PETITIVE CIGARETTE ADVERIT:SING 1973 - 78 VOL V FUTT-RE 'r3TL.-=,TI0NS IOR -=;';f BRZ-,NDS CD 0% BATCo document for Legal Services : Health Canada 22 October 1999 C-1-ID'ETITIVE" ANALYS--S FUTURE :-1-C-LICATIONS FOR BAT BRANDS The conapet4t-%re analysis serves to indicate the presen s=_==us of the wcrld cigarette markets in terms or ad-Vert-ising trends and expenditure levels over the period 1972-1977 and attempts for the first time to =ut this data together into a specific format. In order fcr the analvsi~ to have any value, however, T=---,. have atter-==ed to extraDOlate some actionable factors which have a direct relation to BAT brands -7. the future. These are listed as follows: LACK OF A UNIVERSAL BRAND BMT have nct established a universal brand over t-e sia-me period like the major international Virginia ccrmaetitive b-ra-ds. Dunhill, Rothmans and Peter Szuvvesant have adoDted singular, worldwide advertising themes and have established them consistently over a number of years. Benson & Hedges Special Filter have during this ti~me not only changed their advertising content but have mounted specific campaigns in their 4, ndividual markets. Although in sales terms the br;nd has been successful it is still argued that the brand has failled -to establish an authoritative world i=age. SZ.;'K have been more successful in this regard, whereas JPS is still in a development stage and BAT have the difficult problem. of not owninc the marcUe worldwide. nICTION: Althou=h time is not available to establish a wor~d brand with the same authority as t inia competition consideration should ,~e major Virg- be given to project BAT brands with a consistent worldwide advertising approach. HEALTH & Com-MUNICATIONS RESTRICTIONS jor BAT-brands are Tt 4 s argued that none of the ma I in ; good pos_4t_4cn to face the restrictions of ;-4carette advertising content e_jther over the med'um terrm or the point where total bans begin C) 7 a to be imloosed. ..i 01% BATCo document for Legal Services : Health Canada 22 October 1999 (a) MEDIUM TERM '.s advert i -=Jnc =--strictions becin to affect -~,e content mcre and more, the major Virginia ill remain relatively unaf--ected. -ommet-tion w~ Dunhill has a s-mple pack presentation and both Rothmans and -12tuyvesant have well- established imagery which the brands could shift into gradually. T 4.he danger for BHS? and 7PS in particular is that both brands will have to begin tai~oring their advertising themes to individual country codes which could lead to a greater fragmentation of brand presentation than exists at the moment. ACTION: in addlitLon to the universal approach suggested above, consideration should be given to - ins the vro'ecmion of BAT brands away from ,nov- zhe current image./thematic platforms and firmly the direction cf packaging/product benefit advertising; (vide &BM's, UK campaign for SEFK) . (b) TOTAL BAN Given the current status of BAT adver--ising an=roaches it is obvious that no zronerties or form of symbolism, exists or is in the process of being developed which can be utilised in advertising in ~he event of a total ban. ACTION: TBL are currently developing advertising prc=csais to cover the medium I 16, lerm and total ban point for BES7, JPS and SZFK. This exercise will also cover the possibility of corporate advertising approaches and will be presented at the beginning of October. -J~!b CD 01% BATCo document for Legal Services : Health Canada 22 October 1999 HOUSE- EXTENT'_70NS qa-.-e no knowledge of curren,: BAT develczment projectS thfs aze-= mav- be cz=Ietely cover=-C. it _S zhat the he=-='- issue and the zrobal:le ad_-=r_icn of Tar and Nicc=-ne Leaq* .ue ta!:Ies w--- an increase in --he low tar/"l-ight" sector of the gazetze mazke-=s. Mer-4t nave apparently had a woz d c successful wcrldwide launch (aca-n, using a consistent ' lk Cu t 'n - advertisl.ng t~heme). S-L - lave been act4ve - especial-,.v in the Middle and 'Far East. Ilt is noz-4ceable t1hat US cL.z-=re==e mamufactirers are beginning to deploy the major-4-y of t,-,e--:- advertising rz,.onies aga_~nst their -lignt" brands. It is a-so conceivable -hat Vz-==age and Now =!us other US "14zh~" I-=an-d - -X s mav be 4v n wo=:dwide introduc~icns if es=ab~ .?Ae=i seen to a s-:=Zng footho_~a. 21 AT dc not c,_-=e_ntIv own a low -:-== brand. The house in .0 extens cns c= B&H Special and Luxury Mild I the.-ir resent do not qua7j-~Y. ACT:ON: Cons-deratiOn s.-OU-1d Ze g-ven to the fcllowinS: (a ) t:je development C-"- a B.A.T worldwide low tar --ran-4 (includinc a.- evaluation cf Jchn ild) . Plaver Extra M~ (b) the re_fornu_-,F_t_Jo.- of e4-;-er Luxury or .1. Smecial Mild into the Ilow tar sector and a higher proocrtion of available adve=tissing monies ;ut-acainst it. Cc) the adczt-'on of a ta-jlcr-made low tar adver=-Is-~nq approac~, for any of t-nese brands instead of revisions to existing cam-paigns. THI- '~'STABL-ISF=-M' 0"' PROMCT__-MN.rLL "7---::ICL7-S 40 -he of acce=table =r=motional vehicles will' be maramounz tc. cic.azette brands during =,e next 2-3 vears. Dun-,,_411 and klarlbcrz have es=ahlished -individual ve--4cies _~Zr promctins tne brand name. Few otner cigarette brands have done so and run the risk of oostpcninq this t~hev are face~- w4=~, a total ban. It exerc- se unt_~_' . is suggested that the esta--lishment c--- prcmnotional. vehicles should be done as nart of (c--- ?1-.4 Ilip Morriss :nte=national and --he _'ion s--mbc-) or in ra=a:-el wit--. (Marlbc--c & C) cou.nzzy store promcticni --neme adve=tising. _--t wi- Cr% be d_~fficult to esta]cI_4sn veh;cIes zu~ckly wl--.-;ch are not -.:rder-,;r_4t=en zy therie adver-tising. co BATCo document for Legal Services : Health Canada 22 October 1999 ~__ ccnce=7:s fcr BA-7 '--rands which h-ave Any Fromc~-cn=_ S-e-jF-finalised (cf Benscn & .;_~ecaes and pu!:14s"ing) or a=e n the process of deve-z-=ment f:~r tl'e shoul: a be c4ven media suDLort nc-w ,=:, as quicitly as possible) in ;~rder to invest them wtzh a s=eciffic -A-ent-ty and a f A 2 , pedicree in the event c --an. W OTHER CONS ID ZRA -jT 01, _-- rina_',-I%,, there are twc ad"""--=1 Dcints wh~ch were noted ::=Or. the analysis whic.- _zze not beinc ta!:Ied as a--tiona!:Ie factors, but which shc-.-:--' rece-ve c-ons-4der- I ==-on: a) are u . nderstccd, --uz the recu-4re-nent !or ort'Lln= imRact in the z-,ne remnaininc *---or cicarette advertisers snculd be stresse-- .n za=s of :PM and additiona- ---req,-,-ncv the deci-s-on by BAT to pull out cf the boack paces in ~~nteznational media (Time and 14'ewsweek a,:e now totall--, dominated bv the 3 majc=, 'V-'=gJ=4a compe-_-=~=S) makes economic sense zut the value of _4=act and qual-ity of presentation could now Die treated As an overridinc factor. Double-=ace s-n=eads and back pages s:.o-ald now be mace a prima_ry media object.- ~ve. (b) WHAT TYPEE OF ADVERTISING : THEM.F. v UNCQMPRCM-I-c:.NG v RZS?0NSZB_'--- The majority cf ad-Vertilsing a==r-.azhes examined were an a st=-=-~c Winston (post-1976) have adopted a ve=v hard, i inc, uncomDromisinc a=nroac- wb~Lc:a is verv azzest- -2fi -- le-Tr, to maintain i-_ in but it will be ~ 'cu",- for th I -h c2imat the present te. Ihere is 1-4tt--- evidence cl it yet but tlae responsible a=proach !cr M; x --t which talks seriously about --he product without any frills and gives s=ec-~f-4c, factual re-=scns whv the nroduct is cco,~ :zav be a incizatcr for the futuze. Cigarette advertis4_nc in the ma4 appeals d-4--ec-t-Y to the senses an--' emoti;ns of t~e smoker t::-rc:-zc* .. the medium cf added -value: Mez.-it is beg4r.=~ng to appeal reason. %0 BATCo document for Legal Services : Health Canada 22 October 1999