MARLOW R&D/MARKETING CONFERENCE SOCIAL CONCERN THE RELIEF OF SOCIAL CONCERNS SUCH AS VISIBLE SIDESTREAM SMOKE, EYE IRRITATION, ROOM HOUR IS A GROWING CONSUMER NEED. THE DEVELOPMENT OF PRODUCTS WITH ACCEPTABLE SMOKING QUALITY SHOULD BE A GROUP (DEFENSIVE) PRIORITY 0D 00 BAT Co LTD - MINNAOTATOBACCOLITIGATION MARLOW R&D/MARKETING CONFERENCE THE SPEC IF IC NEEDS OF FEMALE SMOKERS LOCATION PRIORITY USA CANADA GERMANY BRAZIL POTENTIAL NEED AUSTRALIA UK (COMMUNICATION RESTRICTIONS) SOME BATCO MARKETS Oz@ BAT Co LTD MINNESOTATOBACCOLITIGATION FREE WORLD CIGARETTE MARKET DELIVERIES HIGHLIGHTS 1975 1980 1982 1983 1984 SHARE OF MARKET 0-9 MG TAR 7Z 9 13 13 12 SWAT 17.8 17.0 15.6 15.4 15.6 NOTE: DATA EXCLUDE JAPAN, KOREA, ETC. MORE BANG FOR YOUR BUCK CHEAP CIGARETTES ARE FULL-FLAVOUR VENTILATION THRESHOLD? BAT Co LTD MINNESOTA TOBACCO LITIGATION MARLOW R&D/MARKETING CONFERENCE PERCEIVED PERSONAL REASSURANCE-BUT RETAINING SATISFACTION LOCATION PRIORITY CANADA AUSTRALIA USA GERMANY UK BATCO EUROPEAN MARKETS GROWING NEED BRAZIL MIDDLE EAST EXPORT MARKETS OTHER BATCO MARKETS co BAT Co LTD MINN I A I TOBACCO LITIGATION MARLOW R&D/MARKETING CONFERENCE VALUE FOR MONEY : PRICE-RELATED MOTIVATION ALL WAYS TO REDUCE PRODUCT COSTS MUST BE PURSUED BUT NOT AT EXPENSE OF SMOKING QUALITY LOCATION PRIORITY AUSTRALIA BRAZIL GERMANY UK BATCO MARKETS EMERGING NEED USA POTENTIAL NEED CANADA co BAT Co LTD I TOBACCO LITIGATION SMOKING QUALITY SATISFACTION AND THE PLEASURE OF SMOKING NICOTINE IMPACT- THE SIGNAL/THE REWARD GOOD MECHANICS- EASE OF DRAW, MOUTHFUL OF SMOKE EXTRA BENEFITS- TASTE, FLAVOUR, AROMA, GOOD AFTERTASTE AVOIDING NEGATIVES - IRRITATION, BAD BURN RATES, OFF-TASTE SUBJECTIVE ASSESSMENT IS THE KEY TO SMOKING QUALITY BAT Co LTD MINNELOTA TOBACCO LITIGATION CONSUMER PERCEPTION OF QUALITY WHAT DOES QUALITY MEAN? DOES THE PERCEPTION DIFFER AROUND THE WORLD? DOES IT DIFFER BETWEEN DEMOGRAPHIC/PSYCHOGRAPHIC GROUPS? MODEL SHORT-TERM - FIRST IMPRESSIONS, TOUCH, IMPACT LONGER TERM - HARSHNESS, IRRITATION, AFTERTASTE ENDS STABILITY, PACKAGING PHYSICAL QUALITIES - FIRMNESS, EASE OF DRAW, BURN-RATE COAL RETENTION, IMPACT/IRRITATION BALANCE., TASTE/AROMA LEVELS CONSISTENCY - NO NOTICEABLE CHANGES OVER TIME BAT Co LTD MINNE@OTATOBACCOLITIGATION MARLOW R&D/MARKETING CONFERENCE BRAND REASSURANCE MOST CONSUMERS WANT IMAGE DRIVEN, CONVENTIONALLY DESIGNED PRODUCTS THAT OFFER STRONG IMAGERY AND SMOKING SATISFACTION LOCATION PRIORITY : ALL MARKETS SMOKING PLEASURE AND-SATISFACTION THE DRIVING FORCE OF THE MARKET LOCATION PRIORITY ALL MARKETS co BAT Co LTD MINNFIOTATOBACCOLITIGATION MARLOW R&D/MARKETING CONFERENCE THE SIX CONSUMER NEEDS BRAND REASSURANCE SMOKING PLEASURE AND SATISFACTION VALUE FOR MONEY : PRICE-RELATED MOTIVATION PERCEIVED PERSONAL REASSURANCE BUT RETAINING SATISFACTION THE SPECIFIC NEEDS OF FEMALE SMOKERS SOCIAL CONCERN BAT Co LTD I TOBACCO LITIGATION