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BAT Industries document for Province of British
Columbia 23 April 1999


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BAT Industries document for Province of British
Columbia 23 April 1999


7
f)e Mite smwh-
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f)(VIVI)l
Launch background
BELINDA goes ultra
low tar in Holland
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M-9- B.A.T Nld.,I.,,d BV.
At the beginning of 1982 in Holland the ultra low
tar segment
(0-5 mgs tar) accounted for 1~% of the total
cigarette
market. The trend of the segment was static and
the only
brand of note was PETER STUYVESANT EXTRA MILD (5
mgs) wbich
a c
held 85% se jmen t share . Positioned alongside it
was PETER
STUYVESANT ULTRA MILD (I mg) with a negligible 1%
segment
share -
BAT had no brand positioned in the ultra low tar
segment,
although it controlled 40% of the low tar segment
(6-10 mgs)
- which itself represented 11% of the total market
- with
BELINDA KS (9 mgs) and GLADSTONE EXTRA MILD (8
mgs).
In March 1982, however, new Government regulations
came into
force whereby it became compulsory for deliveries
and a
health clause to be printed on the pack. This was
expected
to sharpen consumer health concern and interest in
lor
delivery products and lead to a spate of new
initiatives in
the ultra low tar segment.
BELINDA background
BELINDA KS, after its highly successful launch in
a 25's
packing in the late sixties, had by early 1982
settled at a
2.5% total market share in its non-menthol version
and 1.3%
market share in its menthol version. At 9 mgs,
with its
female oriented, health reassurance image, it
appeared well
positioned to gain from the expected trend to
lower
deliveries.
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COJUMbia 23 April 1999


6
It was considered, therefore, that an ultra low
delivery line
extension represented a natural way to obtain
penetration of
the ultra low tar seament and develop the brand's
potential.
Launch strategies and mechanics
- Delivery Strategy
Following the launch of PHILIP MORRIS SUPERLIGHTS
at 4 mgs at
the time when deliveries on the packs were
introduced, it was
decided to position the BELINDA brand at 3 mgs to
give it a
competitive edge over PHILIP MORRIS SUPERLIGHTS
and PETER
STUYVESANT EXTRA MILD in terms of deliveries.
- Name Strategy
To reinforce the ultra low delivery image of the
brand, the
subname LIGHTS was employed. Research had
indicated that the
word LIGHTS had a stronger low delivery
association than
MILD.
- Pack Strategy
The launch of a new BELINDA version provided the
opportunity
to make cosmetic changes to the pack design. The
brand name
typography was simplified and moved to the top of
the pack,
whilst the BELINDA cameo was moved off-centre to
create a
more dynamic effect. Furthermore, a fresh blue and
white
colour scheme was used to distinguish the brand
from the
orange and white of the parent version and to
project a
"milder" imaqe.
Advertising strategy
Creative
For the launch a pack shot approach
was employed to gain high impact and
awareness. This was enriched by the
use of a feather as a symbol of
lightness represented at the foot of
the pack (see photograph opposite).
The copy platform was simple and
direct:-
NEW BELINDA LIGHTS
70% LESS TAR AND NICOTINE
The subcopy explained the fact that
the average deliveries of brands in
Holland was 15 mgs Tar and 1.1 mg
Nicotine, compared to BELINDA at 3 mgs
Tar and 0.3 mgs Nicotine.
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Columbia 23 April 1999


7
Media
Launch media concentrated on newspapers and
posters, whilst
continuity support majored on magazines. In
general only
lightweight support was used in view of the
established good
will and awareness of the BELINDA name.
Promotion strategy
In addition to the normal merchandising items,
counter
dispensers, mobiles etc., a newspaper coupon offer
was
employed to gain high trial. In return for one
empty pack of
any brand 5 mgs or below, consumers were offered
two free
packs of BELIND LIGHTS. In effect this allowed us
to
concentrate sampling on existing smokers of PETER
STUYVESANT
EXTRA MILD.
Distribution strategy
In order to facilitate distribution of the brand
by the Field
Force it was decided not to launch initially a
menthol
version of the brand despite the well-established
position of
BELINDA in the menthol segment.
Results and future developments
BELINDA LIGHTS was launched nationally in June
1982 and, by
December 1982, it had obtained an 11% share of an
expanded
ultra low tar segment.
Significantly, by the end of 1982 BELINDA KS had
increased
its total market share to 2.6% and BELINDA KS
MENTHOL to
1.4%.
Plans are now in hand to launch a menthol version
of the
LIGHTS version which is expected to gain a further
5% segment
share.
Consumer reactions to the modified pack design
have been
favourable and it is now planned to test the
viability of
bringing the pack design of the parent version
into line with
the LIGHTS version.
Finally, a new Advertising campaign has been
developed for
1983 (see photograph on page 5) in which the
LIGHTS and
parent KS version are brought together in the
cameo pack
shot. The objective here is to sharpen the overall
low
delivery image of BELINDA family by including the
LIGHTS
version alongside the parent version, as well as
to save the
costs which would be involved in promoting the two
versions
separately.
Conclusions
The launch of BELINDA LIGHTS represents a
relatively r1i
straightforward application of the line-extension
philosophy C)
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BAT Industries document for Province of British
Colurnbia 23 April 1999


in respect of the ultra low tar segment. The
results have
been positive and encouraging but unspectacular.
Long term
growth prospects are good.
Significantly, by the end of 1982 the ultra low
tar segment
had expanded to 3% total market share due to
increased
consumer interest in low deliveries and the impact
of intense
activity in the segment.
By the end of 1982 the low tar segment (6-10 mgs)
had
remained at 11% of the total market, losing sales
to the
ultra low segment but compensating by gains from
the mild and
full flavour segments.
The majority of competitive efforts in the segment
have to
date proved abortive with the notable exception of
PETER
STUYVESANT ULTRA MILD which, by the end of the
year, had shot
up to a 14% segment share, partly drawing sales
from the
PETER STUYVESANT EXTRA MILD version at 5 mgs whose
segment
share has now dropped to 45%.
The performance of PETER STUYVESANT ULTRA MILD
underlines the
strategic advantage of having the lowest delivery
brand an
the market, no matter how tasteless it might be,
at a time of
increased consumer health concern.
As a postscript, it is worth mentioning that in
October 1982
a 1 mg GLADSTONE ULTRA LIGHTS version was launched
in an
extended test market where to date it has achieved
similar
results to BELINDA LIGHTS. A national launch of
this version
is planned to take place shortly.
U.K. Tobacco Industry
advertising campaign
A major advertising campaign by the Tobacco
Advisory Council
with the backing of the U.K. tobacco industry
began on
January 27. It is aimed at drawing public
attention to the
excessively high levels of tobacco taxation in
Britain and is
featured in national, regional and trade
newspapers.
In addition, a campaign is being mounted to urge a
restriction of further increases.
The support of industry allies in the retail trade
has also
been forthcoming, because declining sales have
forced many
thousands of small retailers out of business.
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COlurnbia 23 April 1999


9
This year's campaign follows a
I similar campaign last year which
P-" llected 1.6 million signatures on
c0
a petition calling for moderation
Didyoutknow in taxation increases. (See
"Marketing News" February 1982).
that without the extra
111,500,000 tax 5mokers pay
each d2y, we could be faced with
an increase ofnearly 5p in theL
on basic rate incorne tax?,A
Didyouknow
th2twithout the extra
111,500,000 tax smokers pay
each d2y, we could
f2 ceanincreascinVAT
from 15% to 22%?
As a quite separate programme
BATCo, in association with RAT (UK
and Export), has been putting BAT's
views on advertising, and product
development to Members of Parliament
of all parties. These briefings
began last year and will continue
during 1983.
Below we publish an extract from
"Marketing" (the journal of the
Institute of Marketing) cn the
campaign.
Tobacco
men lobby
Treasury
2250AW'sympathy'dillve
The Tobacco Advisory Council is
ch,rig . [250~000 *Did y-
knnu' campaign to lobby both the
Treasury and the general public.
Th. rn' 'e follows he TAC's
successful three-we?k push last
year. which generated 1.6 million
sign tures fr.. sympathetic
smokers and non-smokers. How-
ever. the new national drive will be
much extended. and will cover a
number of matters besides the
obvious taxation argument.
'Taxation, and its punitive effect
on smokers. is just one of many
issues facing the industry.' %.i~
TAC chairman Sir James Wilson.
,It is our long-term 2irn to present
'he facts in an unemotional and
straightforward way.*
Freedm of "ce
The first ad of the campaign.
created by Ogilvy and Mather. uses
the catchline: *Did you know ...
hat without the extra E I 1.5m tax
m-okers pay each day. we could
face an increase in VAT from 15%
22%T. The questions and topics
w-ill change throughout the year.
and will include unemployment in
he industry. freedom to advertise.
, cdom or choice and freedom to
f,
smoke in public places.
The TAC estimates that ciga-
reitc sales have fallen by Tiber 15%
during the past two years. which
has led to thousands in the tobacco
industrv being sacked.
Patience Gould
BAT Industries document for Province of British
Columbia 23 April 1999
Sni.k- Parmg fl 1.5.


10
%F IN' AL &'s AL
The OPINION feature provides a forum in which
indi idual via- - be exessed on inarkering
issues Th y nay or may no( reflect Company
-ws. but r s hoped that the, wd/ -117-1-1e
though, and . response I- ,ad.,, wh~ may
h-a other op-D,,s.
Marketing organisation structures:
where do we go from here?
By Dav,d Gforne. Marketing Services Manager. R.A T
NLdefland BV
A Marketing organisation structure must take into
account
many key variables - including the local culture
and business
environment ' the nature of the business, the
diversity of the
product range, the size of the operation,
available human
resources, and (not least) personalities. Not
surprisingly,
therefore, any attempt to lay down an ideal,
modern marketing
structure is a hazardous enterprise. Even when
companies
'have the same type of business, as in BAT
operating
companies, opinions can differ considerably on
what
represents the best structure.
In the pre and early marketing days this question
was less
contentious, since the vast majority of companies
followed a
simple, functional line of development.
Le.f Prod-ion ri-ce gal..
A-rti-ng .-n. r-d rorce
In the above typical structure the embryonic, pure
Marketing
element appears under the guise of Advertising
which is
subordinated to Sales.
Then with the advent of the Marketing Concept, the
following
type of structure began to emerge:-
2. simple runct-al structure
Haritotin? Director
... .......
Ilere for the first time we find the sales
function
coordinated by a Marketing Director and the
inclusion of
Market Research as a key functional area.
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COIUMbia 23 April 1999


Later the need arose for increased functional
specialisation,
particularly in the large organisations, resulting
in the
following type of structurez-
3. rxt.nded run-1-1 S-t-
Karl- rand/Product Advertising merchandis-g/ Sale.
..... -1, Planning
Up to this point a fair measure of consistency
existed in the
development of Marketing structures. From hereon,
however,
important divergencies began to appear.
Oversimplifying,
this was due to several interrelated factors,
stemming from
the increasing complexity of the functional
system. In its
train came control and coordination problems, and
the
realisation that brand coherence was beginning to
suffer.
And this in turn led to the development of the
brand
management concept.
on the one hand, the need was recognised in the
larger
companies for even greater depth of functional
development
within a framework of improved coordination. On
the other
hand, it was recognised that with increasing
specialisation a
risk existed that a specific brand's activities
could lack
cohesion, and that the entrepreneurial spark could
be lost in
the bureaucracy of a large functional structure.
This led some companies to opt for a more
advanced, grouped
functional structure. Others, taking the bit
between their
teeth, opted for the then-fashionable brand
management
system.
For those companies which took the grouped
functional route,
I believe the following two basic structures
represent good
examples:-
A. Groupd Functional Struct- IS. .1-pd Funrli ...
I stru.t.r. 11
marketing Dir-tor --inq ir-t-
f I I I I
sal.. marketing ri-ing K.rk.ti.9 op .. ti-./
k Prod- A4-rt1*Ln9 merchandising Proactions/
R-earch Planhinq t-op- $-i.1
In Structure (4) the coordination of what we might
call the
pure marketing functions is achieved by linking
them up under
a Marketing Services Manager. In Structure (5) the
need for
both greater coordination and function development
is
achieved via the creation of separate Marketing
Planning and
Marketing Operations /communications units. For
the larger
companies I believe structure (5) has the
advantage over
structure (4), providing that a barrier is not
allowed to
develop between the planning and operational
phases of the
Marketing process.
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72
For those companies who chose the brand management
route,
believe the following basic structure represents a
good
example:-
Horketing Director
Br..d M-- ..I
Brand Gr-p IBrand Group 2 brand Group
3Merchandising/
Pr-ti-
Some key features of the above structure are the
following:
- the Market Research function is separated from
brand
management and reports directly to the Marketing
Director -
in recognition of its importance and in order to
protect
its objectivity.
-A minimum of two brand groups manage existing
brands, and
one new brands, in order to foster healthy
competition
among brand groups for scarce resources.
-A specialist Merchandising/ Promotional service
is provided
to brand management because of the detailed
mechanics
involved in these areas.
Other more complex structural variations include
various
layers of brand manaqers, plus specialist services
for media
planning, technical product development etc.
In the above structures, incidentally, I have not
touched on
the thorny question of whether Merchandising
should report to
Marketina Services/Brand Management or to Sales. I
believe
good cases can be made out for both alternatives.
On the one
hand, merchandising material must be conceived as
an integral
part of a brand's total communication i.e. it must
be linked
in closely with Advertising, Promotions etc. On
the other
'hand, it must be conceived as an intergral part
of Field
Force activities at the retail level i.e. it must
be
practical and useful to the end users - the Field
Force and
the trade.
My (Ywn view is that the Merchandising function
should report
formally to Marketing Services/Brand Management,
but that
mechanisms should exist to ensure close liaison
with the
field. For example, it often 'helps if the
Merchandising
Manager has worked previously in the Field Force
and if
within the Field Force area structure,
merchandisinq
supervisors/coordinators are interposed to act as
a link with
the central Merchandising services. Another idea
is to form
a Merchandising study group which meets on a
regular basis
and comprises reps from each area with some flair
for
merchandising, the group being chaired by the
Merchandising
Manager. In this way a channel exists for new
merchandising
ideas to flow quickly to the centre, and a forum
exists for
constructive criticism of the merchandising effort
by the end
users.
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COIUMbia 23 April 1999


13
Basic organisation structures
Grouped functional, or brand management system,
which is
best? Frankly, I do not think there is a
definitive answer.
Much depends on the size, style and circumstances
of the
company. I do think, however, that the brand
management
system is the more difficult option to implement
effectively
since it requires a series of conditions to obtain
before it
can run smoothly.
Firstly, it requires a hiqh degree of corporate
commitment to
the concept - Since other departments tend to be
run on
functional lines this is sometimes lacking. For
example, it
is often difficult for senior managers in other
departments
to accept fully th e wide ranging responsibilities
and
authorities of a real brand manager.
Secondly, it requires a certain size of company
operation.
The system needs, in addition to the brand
managers, several
ancillary specialist services and this can lead to
an
elaborate structure which only a big company can
afford. In
this sense brand management can be seen as a sort
of overlay
on top of a functional structure rather than an
alternative
to it. Without such specialist back up, brand
managers can
become too tied down in detailed, specialist
mechanics, and
lose the broad vision required to direct their
brands.
Furthermore, it can be argued that only in large
companies
does the brand manacement concept become valid,
i-e in small/
medium size companies sufficient day-to-day
contact among
functional specialists exists to ensure coherence
of effort
around the brand.
T
1 hirdly, it requires commitment to the concepts
that a brand
manager's authority should be consistent with his
responsibility and that this responsibility should
be
all-embracing in respect to his brands. In my
experience
many brand management structures are wrecked in
practice on
the rocks of these concepts. So often brand
managers are
theoretically set up as mini-managing directors of
their
brands, whilst in practice they lack sufficient
authority and
sometimes sufficient responsibility e.g. for
profitability.
Fourthly, it requires a special kind of marketing
animal -
the brand manager - that elusive jack of all
trades with a
creative, entrepreneurial flair. In many countries
such
creatures are virtually unavailable or extremely
difficult/
expensive to recruit and once recruited are
difficult to
retain.
I firmly believe that the brand management system
has the
edge over the grouped functional system, at least
in the
large operatinq company, since it provides the
much-needed
brand cohesion and entrepreneurial input sometimes
lacking in
hierarchical functional structures. Nevertheless,
I believe
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COJUMbia 23 April 1999


74
it is not a system to be toyed with. Unless one is
prepared
to accept and meet the conditions set out above, I
think it
is better to settle for some form of Qrouped
functional
system. I suspect there are rany companies which
sport a so-
called brand managment structure but which in
reality pay
only lip service to the concept, and suffer
accordingly in
organisational effectiveness. The classic, pure
functional
structures have their weaknesses but they are
well-tried.
They have also the advantages of establishing
clear lines for
responsibility/authority and of providing a basis
of the
nurture of specialist expertise and experience.
For the
small/medium size company I believe they offer a
sounder,
safer option.
This conclusion has a traditionalist ring to it -
hopefully
it will stimulate a modernist reaction.
As a final point one wonders whether or not in a
restriction-ridden industry the wheel is turning
full circle
and that the Sales /Distribution side of Marketinq
must now
come much more to the forefront - not that it was
ever in the
background. In short the marketing structures
outlined above
may already be outmoded and may need recasting
around the key
activities of Sales, Distribution, Trade
Relations, supported
by Parallel Communications, Public Relations,
Merchanding,
Special Events and technical Product Developement.
After
all, cigarette companies are fast becoming,
through force of
circumstance, atypical in their marketing
operations which in
turn may require unorthodox, tailor-made solutions
to
their marketing organisation. Perhaps the time is
now ripe
to take stock and conduct a radical rethink of our
marketing
structures in order to anticipate the
organisational
imperatives of the late 1980's.
Note: David Grime's views, it is certain, will not
be shared
by all our readers. OPINION offers a forum for an
alternative viewpoint.
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15
dP
e PH R S N ANT T AVR
People diink the wodd of Rter Smyvesant
F r the PETER STUYVESANT tr.,.l a ew mpyl ne he.
.rld '; ER
be en coined "people think the ~4 STUYVESANT"
Both cigarett* and travel shar e th e ..So -rh to
enj Y
copyline.
Cigarette trademarks and
travel: what is the attraction?
Zhese days, at least in Britain, one can hardly
open up a
Sunday colour supplement without seeing an ad
urging us to go
on a holiday abroad - through SILK CUT, PETER
STUYVESANT or
MARLBORO.
It all began about two years ago in the United
States when
Reynolds advertised "CA14EL Expeditions". These
were
adventure 'holidays - a schooner voyage in the
Caribbean, a
jungle expedition in Ecuador, or a canoe/camping
trip in the
Maine wilderness. As reported in "Marketing News"
of June
1981 the whole-page colour magazine ads featured
the CAMEL
cigarette pack, and bore the obligatory health
warning. But
t'here the 'promotional' link appeared to end. The
holidays
.ere an open offer: no proof of purchase required.
C=)
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COIUMbia 23 April 1999


16
MEMO
M, AM
FRI*
holidays are 'th eme "c&tio a'
=.t.-n-21--programes of ons sort
involving d.. - or another -
They inc cookery tuition or a study of wines in
France,
;ailin liudeGreece, scubba diving in Malta, and
tennis in
.rtu g:l-in This too appears to be a
direct-booking
enterprise.
The holidays, by their nature and through their
visual
presentation in the ads ' were an extens ion of
the CAMEL
intp--national ad verti sing approa Ch in which a
rugged outdoor-
man is the dominant element, and the copyline
"Where a man
belongs" was used for both the cigarettes and the
holidays.
Then, later the same year, came PETER STUYVESANT
holidays in
Britain. But this one was built on a specially
created tour
operating company which was offering holidays on a
direct-sell basis, so cutting out the usual
retailer's mark-
up of ten percent. The venture into travel was
described as
..a serious entry into the quality end of the
market", with
holidays in such places as Hong Kong, Fiji,
Jamaica, Hawaii
and Greece.
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BAT Industries document for Province of British
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17
HOLIDAYS
THOSE
F*R
Imilm
AL'~.,GqNG SOFT.
,,--HOUDAYS THATARE ONLY--,
SUGHnY MORE COMFORTABLE
THANJOININGTHE FOREIGN LEGION.
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An--l-bit
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`0
The KARLS01to holiday brochure advertises their
adventure
ho li days which r.fl-1 the KhALBOR0 trade mark
ix~age of
moculine, ad ven t.r... a: tiv it Y.
The PETER STUYVESANT Travel enterprise is a trade
mark
diversification operation. For PETER STUYVESANT
cigarettes
the key-line "The international passport to
smoking
pleasure" has been consistently used. For the
travel
business a new copyline has been coined: "People
think the
world of PETER STUYVESANT".
Next an the scene in Britain was the introduction
of SILK CUT
mast erclas s holidays, from Gallahers. This is
another trade
mark diver s ification operation. There is far
less apparent
compatibility between the holidays offered and the
image of
the cigarette brand. SILK CUT as a cigarette has
been built
on a 'Mildness' platform: the holidays certainly
don't all
fit that description.
NJ
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BAT Industries document for Province of British
Columbia 23 April 1999


SILK CUT's Masterclass 'holidays are 'theme
vacations'
involving educational programmes of one sort or
another -
They include cookery tuition or a study of wines
in France,
sailing in Greece, scuba diving in Malta, and
tennis in
Portugal. This too appears to be a direct-booking
enterprise.
New in Britain are MARLBORO Adventure Holidays,
which all
contain some element of adventure - Green Star
holidays add
some spice to normal holiday life: Red Star
holidays are much
more active: and Black Star holidays are described
as "only
slightly more comfortable than joining the Foreign
Legion"
(e.g. dog sledging in Greenland, underwater
exploration in
the Red Sea, or an 'impossible' ski run down Mont
Blanc).
These holidays can be booked through local travel
agents.
This is a clear trade mark diversification, which
is very
much in keeping with the MARLBORO trade mark image
of
masculine, adventurous activity.
What's the magic of travel?
All the companies involved deny that they are
doing a 'me
too'. Each claims to 'have planned and researched
the scheme
well in advance. But the result is that a plethora
of
cigarette companies have (either promotionally or
as a
diversified activity) gone into the travel
business. What is
the big attraction?
At a time of world recession costly 'holidays are
not
attracting great numbers of people. Certainly the
holiday
industry in Britain, as elsewhere, is feeling the
pinch, and
the low L Sterling vis-a-vis some other currencies
is not
helping. Already meagre margins are being cut in a
notoriously chancy business, to help overcome the
problem.
if one was looking for a sure-fire profitable
diversification, the travel business would hardly
be a first
choice. The number of travel firms going out of
business
supports this view. And the opportunities for
things beyond
one's control - flight delays, hotel service and
weather
conditions among them - are enormous.
However in image terms the travel and holiday
business has a
lot to offer - There is glamour in faraway places
and the
promise of sunshine and adventure - The expertise
of travel
can be bought. In fact both the CAMEL and MARLBORO
operations are based on cooperation with the
Thomas Cook
company, the world's oldest and most experienced
travel
firm.
No doubt the wish of big-spending companies to get
in on the
travel act brings profit to Cooks - No doubt the
colour ads
and brochures provide means for attractive
publicity. r1J
But does it make sense for all the cigarette trade
mark (ZD
diversifiers to try and get in on the same act?
F\3
CZ-)
CD
00
CY\
BAT IndustrieS document for Province of BritiSh
Columbia 23 April 1999


19
REPORTS OF WEEMENNE
a COMPETITORS' M M M 0 M
MEN WOMEN
No ACTIVITIES SERNMEMEM
Generics go
up in smoke
Generic producti. or no-name
housebrarids. havebec- stuples
for many -iori-presnd =Per,
mit I ,hoppers. But perhaps the
,.ssttown - and best-selling -
generic product is cigarettes.
Last yew. no-name cigarettes
a-ed ou t nearly a one per cent
c
share of America's 650 billion unit
market. This means roughly
S130. in sales, and promoters of
-narne smoke. argue thitt more
bu irtes. will be b1- their way -
up to three per cent of the entire
market - when federal excise
tsae, .. cigarette, we doubled
this month.
Of courge, manufacturers of the
ruiti.ntilly-itdvertimd brands say
this is so much -tihe. They rniiir~-
tain that when the economy turns
around perhaps one of them
yearsi smokers who switched to
the cheaper generics wiH return to
th branded ranks.
%rtairJy there is . great deal of
CTN. J....ry 14. 1983 (U.K. ..,ketJ
brand loyalty in cigarettes. Many
of the 60 million adult smokers in
this country fplus hundreds of
thousands of under-age closet
stookersl wns,der their brand
speciaL
This month. Uggett & Myers -
best know,ii for Chesterfield and
I
other brands - is promoting its
own generics with an unprece-
dented 33m ad campaign in 55
US sirsolters, No-naine trend
major market., for seven weeks.
The ads will push 110 different pri-
viiw-label and generic brands
manufactured by its Gary
division-
Even if the carnpaign, created
by the Bloomi agency ofTexn and
featuring the line "narine-b and
quality without the name-br-rd
doesn't exactly burn up
oeco Row. It stil.1 may be Ug-
gett & Myers' best hope. In the
branded area. the company brings
up the mar. with less than a three
ejent share of the cigarette mar-
Whilip Morris and R J Rey-
r
nolds each have 33 per cent of the
mwket4 they often spend up to
SIOD. on . brand.)
With nowhere to go among the
heavyweights. I.1gget and My.,'
very survival probably depends on
the sisecess of piv.t. label..
which within two yews should
have a ctimbined volume larger
than all its braridedcigarettes. C3
Aromatic pipe blends and roll-your-own tobaccos
gain ground
ACCORDING 1. . -y -Hrd
au. b) I l`Ip,.nk-' C ... cil.
it'eeeaen~ "-,"gly I.Y.1 1.
their "'ttethitsM and .Itt.mg
passixie".
And althe ah fme n-
I_ been 1: king -- the pip. 1.
-1 yen. these whis have
prefer the smenalk brand. which
. takirts . In-asing here f
zt~et .1. less tl*v -vaumed
rw per
e- r he pip,
_Iar.
'it' snaJority of the
nation's 1.3 .1111inis pilarns.. k"p
be r Brilkh
ends. %wh Coadnr. St. Bruva.
G.id Illock" ,
Thr.g.,Nulne,.nd
H,d , I-
Virgins.
in the is ramths: onber. Just
~esr. pipe lobarce le, dipped by
Just . ' sce.rdi~g I .
-7 Tsn '""
ffilu- Iird b) lutp,ri-I
T...
And. h,y say,
Independent retailers Wdy held
round SS to 60 per ern, at the
besii- 1. his -ar. it 6 1. his
&"a that the CT44 trotle can
conlitive to expkAt the potential.
The r*- Is--- upervaerls-
and other price esll~ to it, w .
nalt uw cilteretle as a eut priee
evininodhy .. a,,- e--. -
Se. the oppartuniI7 -slnzzr
_T.1~ keep -ir CHI, an the pip.
C
-rk,,. ne, I- " larklitt ad
displaying lt-sellin. brands. but
b~ being We 1. --ease ad
... I,. - ..d -nX., pip.
mkc in rind the - suitable
hl,.d.
TI. -, ad- -- I.
,,, pip. end I. prvrir, z Ithl,r.
aretnalk- brands.
But bv telling I hent wroething a(
.1 ter hlvnds. a trial -0- can
-ften *ad .. -.1., 1. onx.
Th- I. .. d-M he. he
X-h a- I,. the ..,k,1 1. 1.
tirternall, pip, ..bstees, We, .1
which wm up by . fifth in 1" 1.
Leading brands In his -ar are
Clan. Helland House. Lensinert &
Battler end Isarkune Rift.
Set. f head ralling Ib- in
the United I(Lingdeen u,ere veloW
of aroand L361 adifien in 1"2,
~fth the leading brands
nd .=d!!
laki.. 1. It shure
sesarket.
And sithatigh other brands
-.1 far I- the. Is pe, -1 a,
.. -rk.,. they ." -h.hil.
conicnders in a r.pidly elui.ging
of d...nd --i wi,.des.
A, sales n( eilt.r.
have decli-d. sales .1 h--d-
-11itig tub-. h.. risen.
There was a 10 per cent Increase
in 1901 and she main reason lithe,
- .-n, I. -h
up is 30 per
cem cheaper - -. though this
sterur has - -aped ..y
Les.1.1- Incresan.
Should It. ch...11.1 get.
pe..Ilse cigarettes In his sesi
Budget. . larger than .-triv 'is.
I. I.-Hoe -auld b-131 htind-
milling brand..
A 1- y- " hand relled
dtr-- - htnogh. a(
eh-P -.- 1. 1h.
(-.red -iety. Class 10udi.
.led -.y people rr- .k-
Pl" turthed.
a up Ow
S.- neakers rolled .%,I, -n
-catilanutily
"iter'" .. hatew ., '.
-k ad b..Zhl 1.11.,-des
at
f- -4-1
This Int.g. I.
rapidly being sh.k.. ff and -
young smolters are joining the
ran 1~ 2.5 rnlifi.. er
zn= f-rnky.
00
1-4
BAT Industries document for Province of British
Columbia 23 April 1999


20
Advon-ng Age, Jan..ry 3,1983
BOGOTA-Under a decree issued last month by the
adminisira.
tion of nonsmoking. teetotaling President
Belisario Betancur. all cigaret
and liquor tv commercials in Colombia will be
virtually banned as of Jan.
1. Such advertising will only be permitted
starting at 11 p.m.. acco.pan-
ied by warnings about the dangm to health posed by
smoking and drink-
ing.
Aduertising Age. January 17, 1983
ToKyo-Japan Will 2110W all licensed tobacco shops
in major
urban areas to begin selling U.S. cigarets and
other foreign brands later
this year for the first time.
-RJ Reynolds is lauriching
Mair. Sp.6.1 Mild to add to t,
More cigarette range. The cream
colo-d 120mm cigarettes are
availacle in filter and menthol and
cost Ll 16 ror Z() The launch is
bei ng supprirted h~ an advertising
th uRhSJIP/BBD0andin.c.n.
surner competition.
Advertising Age, January 17, 1983
R,J *REYNOLDS TOBACCO, Winston-Salem, N.C., is
testing 12-unit
vending packs an four of its 6garet brands in
Tarnpa, Fla.. and Detroit.
The new packing, priced at roughly 85t. is
designed to stimulate vending TR-January. 1983
purchases. The RJR brands include Winston, Salem,
Carnel ~d Vantage.
New low tar CIr rette
expands Fre. market
Advertising Age. January 10. 1983 Seita has
introduced a n-v
THE CAMEL SCOREBOARD, a listing of sports results
that runs in cigarette to the French market.
newspapers as an advertisement from R.J. Reynolds,
was picked up by an Gauloi-ses legeres offer the
smoker
additional 50 papers in the fint week of 1983,
bringing the ad's total to 125
newspapers. Biggest addition: New York Daily News,
the nation's largest
general circulation daily, whose rival, the New
York Post, also carries the
"Scoreboard.- A "Swreboard- variation. "Camel
Vinyl Preview," focus-
ing on capsule reviews of new rock record albums,
also is running as a
spread in the monthly RockBill starting this
month.
Advertising Age. January 10, 1983
Lofillard to kcxo/ver
the U.S. with Satin
By JOHN J. O'CONNOR 3tyl- A 1% share translates to
$160 million at the factory level
New YOR-Buoyed by the on a natioral share basis.
success of Satin women's ciga- Before Satin took
off. Loril-
rets in a pair of test markets, lard had watched
minimarket
Loews' Lcirillarill divisim is in- probes with
brands such as Her- 3.
troducing nationally the smoke itage. Maverick and
Bistro end
with the satiny filter. at a time in
disappointment during the
hen
federal excise tax hike last year and a half.
Rebel, an-
:
Me pack has made life any- other minimarket probe.
re-
thing but smooth for the cigaret mains alive in
four markets. the
industry. company said. reduced tar and nicotine
levels of
If Satin. a 100mm, 10mg tar With flagship brand K
nt
8.9 mg and 0.69 mg. respectively.
regular and menthol cigarot
that Lorillard is backing with continuing to
decline. Loril-
lard's share of the American The Cauloises brand
familv ac-
the heaviest ad and promotion market dropped from
9 2% in counts for 40 percent of total ciga-
'pending in the company's his- 1981 to 8.9% last
year. according rette -sales in Fran-
tory. can duplicate on a national to analyst John
C. Maxwell Jr. Cauloises are made of a blend of
scale hat it did in Denver and
au
Mil~' kee (AA, May 31), it of Lehman Broe. Kuhn
Loeb
Ads by MCA Advertising C* ar-
20 tobacco varieties. must of which
would put the company on a rying the message,
"Spoil your- are grovvn in France. The-se are
growth track onto again. If with Satin,- will run
as cirie. dark lobaccus that have undergune
According to Lorillard, Satin two, three and
four-page inser- several processes-drying in the
1
regi ster d a 1.4% share in test
a Lions in national magazines. The
pen air. natural fermentation and
after 12
weeks. Over the last six
months it has maintained a media mix also includes
heavy
support in Sunday supplements. roisling-to provide
the specific
combined 1% share with both newspapers and
outdoor.# taste. traditionaliv characteristic of
the finished product.
11-i
C)
r%J
CD
C:)
BAT Industries document for Province of British
Columbia 23 April 1999


ILA
40
1
I
.P.
q.
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M---- T Industries document for Province of
British Columbia 23 April 1-z W**