RJR 1975 Marketing Plans Presentation
Hilton Head, South Carolina
September 30, 1974
"Our paramount objective in 1975 and
ensuing years
is to reestablish RJR's share of market growth in the domestic cigarette
industry." ... "First, let's look at the importance of the young adult in
the cigarette market. In 1960, this
young adult market
, the
14
to 24 age group, represented 21% of the population. As seen by this
chart, they will represent 27% of the population in 1975, they represent
tomorrow's cigarette business, as this
14
-24 age group matures, they will account for a
key share
of the total cigarette volume --
for at least the next 25 years
."
"Both Philip Morris and Brown & Williamson, and particularly their fast growing
major brands, Marlboro and Kool, have shown unusual strength among these
younger smokers. In the
14
to 24 age category Philip Morris has a 38% share and B&W a 21% share." ...
"Our two major brands, Winston and Salem, show comparative weakness against
Marlboro and Kool among these younger smokers. Winston is at 14% in the
14
-24 age group versus Marlboro at 33%." ... "This suggests slow market
share erosion for us in the years to come unless the situation is corrected
."
"Thus,
our strategy becomes clear
for our established brands:
(1) direct advertising appeal to the younger smokers
while (2) being true to the brand's basic product attributes (e.g., taste for
Winston, refreshment for Salem) and (3) without alienating the brand's
current franchise."
For Winston we've followed this strategy in developing the new "candid"
advertising campaign which broke September 16. It is especially designed
to appeal to young adults with:
-
simple straightforward copy
-
believable people with character
-
strong product sell with real taste emphasis
... "Each of our major special events is
directed against young adults.
NASCAR, with Winston, reaches 8 million spectators with 63% of these
under 35 years of age. Our participation takes 2 forms: (1) the Winston
Cup/Winston West series with 55 races primarily in the southeast and
California, (2) the modified sportsman with 60 races in the northeast and
mid-west. Thus,
NASCAR gives Winston national coverage.
" ... "For Camel filter, we have developed a new strategy. While Camel cannot
match the media dollars spent by Marlboro, the brand will have pinpointed
efforts against young adults through its sponsorship of sports car racing and
motorcycling.
Sports car racing reaches 300,000 spectators -- 85% under 35 years of age --
and is primarily on the east and west coasts."
"Motorcycling, a new special event successfully tested in 1974, will-have 26
races reaching 400,000 spectators with an estimated 90% under 35 years of
age. This event will be in the major population centers such as Chicago,
Los Angeles, San Francisco, and Houston. Since special events are a
relatively new and different type of activity for us, I would like to review
the nature and extent of our promotional activities in them."
"First, we have heavy involvement at the event site, permanent billboard
advertising, and brand exclusivity at concession stands. We sell our
branded, event-related items, such as Winston hats, shirts, and jackets.
We have tie-in banners and posters with strong brand identification and brand
commercials over the public address systems. We have strong press
outreach through wire services local press and special interest
publications. For example, at the Winston Western 500, the
race with heavy mention of Winston was in newspapers
having a circulation of 10 million and on a 2-hour radio program reaching 30
million people. Our sales force works retail store tie-ins to the event
with product displays and posters."
"Our Winston #1 and Camel filter GT cars are displayed in shopping centers in
major markets. The Winston #1 car has received outstanding acceptance
recently on the streets of New York. Lastly, we use newspaper and program
advertising for image association between the brand and the sport. You might
logically ask "what does all of this mean in terms of sales?" Our
research indicates that among racing fans Winston's share of smokers is 67%
greater than among non-racing fans."
"Other programs have been developed to reach young adults where they work, play
and where they purchase their cigarettes. Free-on-package trial
inducement promotions are being used in high traffic, young adult package
outlets such as convenience stores. Seven million trial units will be sold in
1975. We will have permanent counter displays in 35,000 outlets catering
to young adult package purchases."
rjr/501477369-7394
cigarettes and ...
Bryan
