APPWIX A
BACXGROUND
Appendix G summarises the local L-_Perial view of
the 555's launch in
1982. '1983. Apart from tar-,e-:ting Chinatown
only, the brand was
premium-priced.
Whilst today the Oriental p=.:'at_,cn has
increased, no true Virginia
cigarette is being offered to this rarket.
Overall market shares are 503-, Regular Size, 40%
King Size, 10%
100m.. The latter segment is growing at
approxiirately 1% per annum.
Appendix H summarises the toc !e7 brands.
Kev changes to market conxiizi=ns are the
introduction of Bill C-51
and its restrictions on pra-_r_::ion and d-,splav
plus pack printing
req--ii,rerents; a change from and taxes to VAT at
both wholesale
and retail levels - details s-zill unknown; a
general decline in
w-a;'Ung in Canada of which Cclum.~:ia has the
lowest incidence
of smoking (currently at 30% t:f the adult
population).
Ir=erial Tobacco LirutL--'
Appendix I illustrates the Wes,: Region team - 10
salesmen now report
to Saunders and Hoskins. Five cf these salewnen
are of Oriental
backg=und. An office and ware~house, including
bond, constitute the
Regional Distribution Centre a= Vancouver.
With all sales being chzvmelled through 10 major
wholesalers, the
sales force's role is to ersure producz is
purchased by retailers
and good in-shop presence is -aintained. They take
orders at retail
level which are passed back t-- the appropriate
wholesaler.
The "basic ter-as offered b~y ir-perial are 20
days or 2j% discount and
12 davs credit. In additicn. a 1'~ Partners in
Progress rebate is
given annually on the total invoice value less any
losses. This sum
is calculated natlonally and from the subsequent
pool rebates are
paid proportionate to share of purchase.
Distribution
In the Vancouver area t-here aze 10 rajor
wholesalers and 700 outlets
comprising of smoke shops, su?ermarkets,
convenience stores, small
"~~,Poppa outlets", Food /Drugsrores, Gas Bars
(Petrol stations).
Superrarkets account for 901, of all retail sales
by carton; Drug and
Food stores 20% of overall bus=ess with greatest
growth in the Gas
Bars.
A launch for 555's should be undertaken on 3 key
locations in the
Vancouver area - Downtown Vancouver including
Chinatown; North and
West Vancouver and Richmond. The Oriental
population has segmented-
in the poor and the more affluent - both target
smokers of 555's and
will be resident in the areas noted above. An
initial 500 key
outlets uould be targetzed.
04
c0
-J
Ln
C)
-4
BATCO document for Province of BritiSh Columbia 19
April 1999


Pack Reauirerents
A new design for 553's KS would be required to
conform with C-51
plus a Tax Stamp tear-off strip. The pack, carton
and case rust
have LIPC coding.
Retail Promotion
C-!l has restricted actVity to non-branded,
non-them at point of
sale but communication of Country of Origin Ue
MIE) could be
allowed and may benefit 555's.
Price prcnotion by the retailer will still be
allowed and
ccrrunicat ions of prices permitted but not
branded.
The use of display units (unbranded, will be
allowed and will be
essential to gaining comser display space at tire
of launch. This
space wi.11 have to be rented and is costing rcre
year b~ year.
Branded giveaways are not permitted.
LM
C)
Ln
CD
_Ij
Ln
C=)
CD
BATCO document for Province of BritiSh Columbia 19
April 1999