Tobacco Documents Online

HARKET OVERVIEW Key Trends Industry Females have become more important tn the cigarette market because smoking Incidence has declined less among women than among men. SMOKING INCIDENCE 1965 1970 1975 1980 1985 1987 Total 42.6 36.2 33.9 33.1 28.9 27.3 Males 51.4 42.1 38.9 37.1 31.2 29.8 Females 34.3 30.7 29.2 29.5 26.7 25.0 DISTRIBUTION 1965 1970 1975 1980 1985 1987 Male 58 56 55 53 52 52 Female 42 44 45 47 48 48 I I )NVIA[ tll 3ZHfH Xq paanpo:[d - CX 37-K

MARKET OVERVIEW Industr~ Key Tren.ds The |mportance of ethnic groups ts rapidly increasing. In 1990, Blacks and Htspantcs will represent 18~ of all adults and 25~ of all younger adults. PCT OF ALL ADULTS 1980 1985 1990 Blacks 10.6 11.0 11.4 Hlspantcs 5.5 6.0 6.___~8 Total 16.1 17.0 18.2 PCT OF 18-24 1980 1985 1990 Blacks 13.3 14.4 14.7 Htspantcs Total 20.7 22.5 24.8 LII DZHfH Xq paanpoad CX 37-L

507~Z0 ~55Z MARKET OVERVIEW Industry Key Trends Smoking incidence is highest among downscale consumers and tt has also declined less among this grouP. Soclo-Economlc Status Smoking Incidence 1974 1980 1986 Lower 38 39 Middle 38 36 Upper 34 32 34 30 25 Education High School or Less 38 37 Some College Plus INI~)N~V~IAI 32 25 Source" Yanke|ovtch [|| CX 37-M

! ~07:~0 HARKET OVERVIEW Industry Key Trends The ctgarette market ts less educated than average and much more downscale than oEher produce caEegortes. The average smoker has Ehe same level of educatton as customers of Zayre, Hardee's, Aqua Velva, and Avon. • B&H smokers have same education as Sears customers. INI~NVIA~ ~ 111 : D~LHf~I ,(q paanpoad CX 37-N

5o7zb 1554 HARKET OVERVIEN INDUSTRY • HILL[S • U/NSTON • C~[L ATTENDED TUPPER~ARE . ~:ATRI PAPTV • O SAI,EH 9 ClC. HARK[I - / • • PII ! I.CO TV I IHSTJUIATIC SILAJ,oPo0 C~ERA ~ |[.[E HOLSOII REEl O • e IIEIllEEEII SEER • llg'ORTED JEER HAERET ,o v. SLIHS Igl)i~lSf.ll • VlDAI. SASSOOII SIIAI4POO • STF.~ & • • JAClL DANIEL°S • HER/T • ARAHIS • SEER O LICIIT BE[IL HAIILI[T O PO.DEROSA STEAK • • I|OUSE |[HSOil ~ FSTFIr LAUDrJ~ VAHTAGE • I~H • HOHTCOflERT VINE I)C~IF.ST IC WAR• CRI"DIT I~ANKL'T U• CAR CARD • CIIlVAS fECAL CR[[II FOILEIGH CAR• GOUIU~[T A)IERICAN • SrECIALTT [XrR[sS CARD STORE O O~ 3Sam CA/~IIA • • sotrf TV • -,, tl.l+ CX 37-0

MARKET OVERVIEW 507Z0 1555 Industry Marketing Relevance 1. With declining volumelsmokers, marketing resources will be staolel declining. 2. Each smoker will be more valuable and harder to reach. In 1965, 431 of adults smoked compared to 29~ tn 1985. This places a premium on... • Effective positioning • Targeted programs 3. R3R needs to be sensitive to the growing gap between well educated marketers/advertisers and the less educated smoker. INII NVIA[ UI DZHFH Xq paanpoad CX 37-P

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- 507Z0 f557 HARKET OVERVIEW Performance Factors Longer term trends tn the cigarette market are very stable. Examples: • WINSTON • Kool • SALEM • VANTAGE INI~NVIA 3&HFH Xq pa3npoad CX 37-R

507Z0 1558 14 12 10 6 4 2 0 1954 WINSTON CUMULATIVE SHARE 1959 1964 1969 1974 1979 INI 1984 III II CX 37-S

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