STRUCTURED CREATIVITY GROUP PRESENTATION

Anne Landman's Collection

STRUCTURED CREATIVITY GROUP PRESENTATION

Date: N/A
Length: 14 pages
102690336-102690350

http://tobaccodocuments.org/landman/102690336-0350.html

Abstract

This paper from British American Tobacco Company discusses the current tobacco marketing scenario, key constraints, challenges, opportunities and pressures on the industry.

Under a section entitled "Future Market Trends, Directions, Constraints and Opportunities"

we find this stunning passage of prediction for future competition for the cigarette market:

"8. Competition with Cannabis, glue sniffing and possibly hard drugs--heroin and cocaine. We must find a way to appeal to the young, who want to protest so that the product image, and the product will satisfay this part of the market. The Cigar and Pipe market has an 'old' image. Cigarettes will follow as something 'My father and Grandfather did' unless we are careful."

From a section entitled "Current and Future Development of Consumer Needs, Attitudes and Segments," we find a passage that appears to be a warning that putting too little nicotine into a cigarette brand can permit a smoker to cut down ("cut down to a low purchase level) or even quit smoking:

"...4. High on the list of consumer needs is nicotine, which I believe to be the main motivator and sustainer of smoking behavior. Without nicotine in sufficient quantity to satisfy the needs of the smoker, the smoker can (a) give up altogether, (b) cut back to a low purchase level, (c) keep switching brands."

Fields

Notes

Copy is very poor. There is no magnification function on the CDC web site. Printing and blowing the copy up a couple of times on a copy machine can help legibility. (fileset_code WAS INVALID IN OLD DATABASE: SNAPCDC)

Quotes

Future Market Trends, Directions, Constraints and Opportunities

I predict:

1. Slow growth in the low delivery market unless/until legislation and/or taxation makes high tar and middle tar unattractive to customers.

2. Increase pressure from anti-social, nuisance aspects cause futher restrictions or where it is permitted to smoke. This would not be stopped by e.g. low sidestream products, even if all products were low sidestream--there is still exhalate!

3. Because of...a new generation of low delivery products of which Barclay is the first, there will be products with high tests to tar ratio, which may be compensatable.

4. With restrictions on maximum permitted delivery levels, the classic Virginia product will decline due to lack of tests, to be replaced by modified Virginia...moving steadily towards West Atlantic and U.S. blended style of product.

5. Increasing use of flavour additives and novel filters...

6. Increasing use of expanded tobacco...

7. More attention to pack design and product display in consumer outlets and to the trade. This may be the only form of product communication available to use in the future.

8. Competition with Cannabis, glue sniffing and possibly hard drugs--heroin and cocaine. We must find a way to appeal to the young, who want to protest so that the product image, and the product will satisfay this part of the market. The Cigar and Pipe market has an "old" image. Cigarettes will follow as something "My father and Grandfather did" unless we are careful.

9. Additional constraints on delivery to include Cyanide, Acreolin, Acetaldehyde, Heavy Metals, Nitrosamines, Nitric Oxide and Benzopyrene.

10. Nicotine classified as a scheduled poison and sold "on prescription only" to registered users.

11. Increasing use of novel filters by competition...

12. Restrictions on product names (?), parallel advertising, promotion of sport and pack designs to follow advertising bans...

Current and Future Development of Consumer Needs, Attitudes and Segments

...4. High on the list of consumer needs is nicotine, which I believe to be the main motivator and sustainer of smoking behavior. Without nicotine in sufficient quantity to satisfy the needs of the smoker, the smoker can (a) give up altogether, (b) cut back to a low purchase level, (c) keep switching brands.

7. Consumer attitudes may be segmented into those who only believe health problems affect other people, "If i give up I can still be run over by a bus," "My father has smoked 40 a day for 60 years and is still mowing the lawn," "If I give up I will put on weight," "With all the pollution around in the atmosphere smoking can make any difference," etc. These hard core will probably be the main source of consumers who either do no worry, do not believe or deliberately wish to project a hard image.

The worried/concerned smoker shows little brand loyalty and is likely to give up anyway. The target market is therefore the hard core and those that can be recruited to join it...

Current and Future Product Trends, Needs and Opportunities

1. As suggested earlier, high on the list of product requirements is an adequate leve of nicotine to sustain the smoking habit. Smokers have a nicotine threshold below which it is ineffective...

2. Many studies of smokers indicate that a large number will compensate for reduced delivery by increasing the amount fo smoke taken from a cigarette with lower delivery. It is also true that most smokers will take less smoke from a cigarette with higher delivery than their usual brand. Clearly it is easier (less effort) to take less smoke form a cigarette than to take more smoke...

Company