FROM: B. Hartley TO: Distribution
    July 22, 1993
    RE: RBH NEW BRAND LAUNCH - OXFORD CIGARETTES
    0
    RSH recently launched a new cigarette innovation under the brand name "Oxford".
    It is currently in test market in Z locations, London, Ontario and Quebec City. The
    offering is designed to allow a single cigarette to be extinguished and relit without
    the negative side effects (i.e. burnt taste) normally associated with refighting. To
    accomplish this, the filter "twists" into -a new position for the 'second" smoke,
    presumably ensuring a fresh taste. In addition,, a snipper is included to cut the
    burnt end off as is a cardboard tube to extinguish and store the cigarette between
    smoking occasions. All of these items come in a metal carry ing/storage tin which
    includes 10 cigarettes and sells for between $2.55 and $3.00 at retaiL Oxford 'is
    offered in both full flavoured and Light versions.
    Consumer information collected through both qualitative groups and the CMA
    indicates that Oxford does not appear to be a significant threat. While awareness
    levels are relatively high, post-trial reaction is quite negative. Based on tracking in
    London/Quebec City, the following levels of awareness and trial were achieved in
    the first month of the launch.
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    BATCo document for Legal Services : Health Canada 20 October 1999

    




    % of Total TM Smokers (n = 97)
    Oxford Trident (Alta)
    Awareness 49%  54%
    Trial 20%  27%
    Purchase 9%  2916
    These numbers are similar to those seen one month after the Trident launch in test
    market. Several factors help explain this. Regional feedback indicates that RBH
    has put significant effort into the Oxford launch. Extensive displays are being
    used, as are demonstrations. The brand has achieved very high levels of
    distribution in the test market cities. In both Quebec and the Atlantic the product
    is gaining exposure through radio news broadcasts. In addition, the brand was
    launched in a tin format, which the Trident exercise showed us has potential to
    heighten interest in and of itself.
    in spite of the apparent success of the launch from an awareness perspective, post
    trial reaction does not bode well for its future. Post-trial satisfaction levels were
    reported as below:
    Level of Satisfaction Among Those Who
    Have Tried Oxford
    In = 48)
    M)
    Totally Satisfied 0
    Very 25
    ot ery 40
    Not At All 35
    Among those who were aware of the brand, only a handful of consumers indicate
    that they would be interested in buying it. ~A
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    BATCo document for Legal Services : Health Canada 20 October 1999

    




    Likelihood To Purchase Within the Next 6
    Months M
    Very Likely 4
    Fairly Likely 12
    Not Very Likely 16
    Not At All Likely 57
    Base = Those aware of Oxford
    When asked why they would not be interested in buying Oxford, the following
    reasons were given;
    Prefer own brand  34%
    Do not like/enjoy Oxford - 38%
    Too strong - 14%
    Dislike the gadgetry involved - 16%
    Burn too long - 9%
    Price - 9%
    These results are corroborated by the findings of qualitative research held in
    London in mid June. Generally, the novelty was appealing but the mechanics
    seemed inconvenient. The concept appealed to a few smokers who were often in
    situations where they were not able to finish their cigarettes, but more as a novelty
    item than as a smoking behaviour to which they were likely to commit long term.
    In terms of pricelvalue, Oxford's lower absolute price point was a bonus for some.
    The fact that a premium is paid for Oxford (i.e. $2.75 on average for 10 cigarettes
    vs $5.50 for 25 regular lights) was, however, not recognized by smokers in the
    groups. Among those who have tried the brand, the CMA tracker indicates that
    most people thought it actually offered less value than regular cigarettes (see
    below).
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    BATCo document for Legal Services: Health Canada 20 October 1999

    




    How Would You Compare the
    Value of Oxford to Regular
    Cigarettes? (%) I
    Better Value  10
    Equal Value  35
    Not as Good Value 50
    Base = Those who have tried
    In conclusion then, as a novelty item, Oxford does have limited appeal. Trial has
    been fairly high and we will monitor it closely - it should drop off quickly if indeed
    the appeal is based on novelty. In terms of long term viability, Oxford does not
    appear likely to succeed. Feedback indicates that there have been very few repeat
    sales of the product at both whole sale and retail. We will continue to monitor
    Oxford's success and will forward additional information as it become available.
    Please feel free to call me if you have any questions or comments.
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    BATCo document for Legal Services : Health Canada 20 October 1999