Tobacco Documents Online

........ J "'ql o

---

1984 KOOL OPERATIONAL PLAN TABLE of CONTENTS PAGES N I. EXECUTIVE SUMMARY II. MARKETING OBJECTIVES and STRATEGIES A. Advertising B. Target Audience/Media Music Sponsorship D. Promotion - National - Test E, Product F. Packaging G, Tan'a Deluxe Research J. Spending Principles K. Rec~mnended Budget 5 I0 14 16 17 22 33 34 35 41 48 51 54 III. SALES and SHARE FORECAST 55 IV. SITUATION APPRAISAL 57 V. EXHIBITS

1984 KOOL OPERATIONAL PLAN 6 EXECUTIVE SUMMARY Overall Narketi~ - Achieve 7.23% SOM, 43.4 billion unite in 1984 - Stop XOOL share decllne by 1986 Markotin Strata ins Continue the revitalization strategy begun in December, IDR2, with numerous strategic and executionel improve- ments discussed later. Reduce spending to minimum amount necessary to sustain reference trend until these improvements are developed and validated. The thrust continues to be use of the music campaign, music sponsorship, and ancillary pro- motion to revitalize KeeL product and mmoker images thereby increasing inflow from historical sources. We are not attempting to repositlon KOOL, but rather to ra-eetablleh its relevance to smoker groups historically most receptive to the brand. As Convince smokers that, at any tar level, KOOL is the epitome of smoking satisfaction and will satisfy their need for an attractive, contemporary image. This is possible because Keel provides the most menthol re- freshment for a taste sensation superior to any other cigarette, menthol or non-menthol.

- 2 - Advertising should symbolize both the best cigarette (quality} end a contemporary image of self-assurance, confidence and control (cool). B. Tar et Audience Prime targets are the young adults, males and females, in that order. 1984 REV weights are based on KOOLts 1975 demographic profile adjusted for the demographic ahlfts. 1984 XOOL Normalized REV Weights* l-Ill ZV-___~V Total Men 9..! 12_3_? 1l.._~5 Under 25 153 208 193 25-34 100 136 124 35+ 69 94 86 .ome____~n 6~2 9_! s_~3 Under 25 149 204 191 25-34 58 78 71 35+ 43 59 53 Total 77 111 100 *Detail of REV weight derivation in Exhibit C. Music S nsorshi Continue wltl. music events during 1984 to extend our advertising property with the objective of mass,trebly increasing KOOL SOM. Music events shall pay for them- salves and their format shall emanate directly from the creative strategy (young, contemporary, etc.). U

! N - 3- D. Promotion Primary role is to generate c~petitlve trial for total EOOL Family and to profitably generate incremental short term volume. Extensive testing will occur during 1984, lnolu~lng a relaunch program with incremental pro- motion support. Product Achieve significant preference over Salem and Newport among the franchise and primary inflow sources. Attmpt to reduce harshness on LIGHTS and ULTRA while retaining the Keel character. F, G. H. Initiate exploratory packaging to co~unlcate the epitr~e of m0oklng satisfaction across all styles, ~onaiatently with XOOLeo young and cont~porary creatlva objective. Changes 8hal~hoaover time as to reduce granchiJe ap- prehenaion~.o~Lrf'product changes. ~Tle Ten'...._8 Launch a 10-unlt pack in areas with no tax penalties for miler than 20-unit packs. Five styles (Parent, KS, and 100's; ~llds KS end LIGHTS KS and 100's). Minimize premium cost to consumer while mainta%nxng variable margin. Deluxe In conjunction with exploratory advertising and BBT-level spending, develop and test market strikingly improved KOOL packaging 1) as a replacement for current packaging, and 2) in box form as a line extension.

- 4 - F~ploretory creative tasting, ten'm packaging and role model mtudiem (1983). Information needs for 1984 fall into creative, promotion and line extension research. J. Remottrce Allocation Grams Media $ 47.6MM Promotion Ongoing 13.2 Testing 1.9 M&P 7.8 Total Advertising and Promotion $ 70.SNM X. S endin Prtnc£ lea Geographical allocation by family BDI! magazine list defined bF RZV weighted CPM; style allocation ts 30t Parent, 30t LIGHTS and 40% Family. S¸

- 5 - II. MARKETING OBJECTIVES - Achieve national MSA share of 7.23 with total volume of 43.4 billion units in 1984. Stop KOOL Family market share decline by 1986 or earlier. Consumption share trend in 1984 should index (94) or better to 1983 (consumption reference trend 94). Regain menthol category leadership long term. MARXETING STRATEGY Continue the revitalization strategy begun in December, 1981, with numerous strategic and eotecutionel improvements dis- cussed later. Reduce spending to minimum amount necessary to sustain reference trend until these improvements are developed and validated. The thrust continues to be use of the music cam- paign, music sponsorship, an~ ancillary promotion to re- vitalize KOOL product and s~oker imagery thereby increasing inflow from historical sources. We are not attempting to reposition KOOL but rather to re- establish its relevance to smoker groups historically most receptive to the brand. A. Adverttsin~ Objective TO creative an image that will motivate the adult target audience to start with or switch to the KOOL Family.

- 6 - s~ateg~ Convince mmokers that, at any tar level, KOOL is the epitome of smoklng satisfaction and will eatlafy their need for an attractive, contemporary image. This is possible beoause KOOL provides the most menthol re- fresh|Bent for a taste aensetlon superior to any other cigarette, menthol or non-menthol. Advertising should symbolize both the beet cigarette (quality) and a contemporary image of self-assurance, confidence, and control (cool). 8trots ic Pro err For the foreseeable future, KO05 will employ pan-racial music sy~boliBm/imagery to co~unicate the strategy. Executional~ In the main, executions to-date have been off-strategy. It is felt we do not have the optlmum combinatlon of visual aMmbollsm, copy, and layout. An exploratory is underway now and should continue to comRunlcate the product and imagery benefits of KeeL stated above in a meaningful and compelling way to the target audience. Specifically addressed will be: - 8moking satisfaction from KOOL'e superior menthol refreshment. Attractive, contemporary image to young adult Whites. Cool The Best

Creative Allocation Strateq~ 1., recommended. Allocation of styles to ads is arbitrary as no data exists on the co~unication effectiveness of "family" versus single style execution. In 1983w the allocation scheme was 20% Family, 30% Parent only, 301 LIGHTS only, and 201 ULTRA only Lv "*~ ~ (based on real dollars). In 1984, it is proposed /~ ,J .F"- that dollars allocate 40% Family, 30~ Parent only, ~1 /~ L./ 30t LIGHTS only and no ULTRA only. Tip-in teat indicated that pack/product notice was greatest st 40% unaided recall with the three pack "bay window" configuration in George d// Tenor Sex. The ad generated 27% more interest ,~/ in buying EOOL. J ~/~i,~! ~.~. v/.~' One camDalgn should be continued for all ethnic "r'~u s w t • ac mu~c~ans on ~k~ "'~-','~+ "~Ia,~ White m~,ic~an, on1 ~n ,net c ~.. To show KOOL am a brand for all people, more emphasis 1 , is needed on interaction of White musicians with EOOL ~,L imagery. - ~,'~ /. Recent TAT wor) indicates that visuals featuring ~'/,v. ~. % White musicians were leas likely to be associete~ ~" ~$ ~ with KOOL by Wh .re respondents than Black musicians V" exhibit. Blacks named KC~ as best brand fit with visuals more frequently ~an Whites did. • /As a creative ex .'ution, Tweed (Black pianist) < is highly interpretive among Blacks, rather than Whites.