Anne Landman's Collection
CONCLUSIONS - Creative/Positioning Strategy
Abstract
This Brown & Williamson marketing research and strategy document states, "KOOL should actively position itself toward the only growth in the smoking population -- females." (Page 2). It says, "As a percent of total starters and switchers-in for the industry, females show active growth, 1979-1982." (Page 3). The document suggests (on page 20) using ad copy "with subtle (classy) sexual undercurrents" to address the female smoker segment. It uses terms like like "young adult male starter pool" and "starter inflow," to refer to new young smokers. It says, "KOOL ("cool")/music association may continually reinforce our Black downscale image, e.g. all KOOL music is black music." and (on Pg. 21) and recommends "that we introduce KOOL Ten's in Black, low income and other value conscious neighborhoods and possibly college towns...Blacks..while not attracted to generics (on judgement, because they lack status, image and personality cues) ... probably would be attracted to lower price transaction of a recogized and acceptable brand name." It laments on page 39 that "KOOL does not have its fair share of starters...KOOL has the lowest starter rate in the competitive menthol set," and says (on page 34) that "The split of gains from starters...has traditionally shown KOOL to be highly dependent on starters for inflow source."
Overall, the document shows B&W strategizing to target cigarette advertising at low income African Americans, and young male and female "starters" as a way to sustain the brand sales into the future.
Fields
- Company
- Brown & Williamson
- Author
- Presumed corporate author, Brown & Williamson
- Recipient
- Presumed corporate recipient, Brown & Williamson
Document Images
CONCLUSIONS
Creative/Positionin9 Strate~
I.
The current music campaign is suboptimal and is not working to
revitalize the brand based on historical data for other success-
ful revitalizations.
KOOL Family starter inflow decreased during the revitalization
year, c~pared t~ Camel and Newport which rebounded nicely
during their revitalization campaigns.
Starter Inflow
%F.S.
Prior
Year Revitalization Post
('81-'B3) KDDL I 6.3 3.0 1.9"
('73-'75) Newport 6.6 11.4 11.3
('7B-'80} Camel 3.1 3.8 3,0
*Wave 34 now available
Switching-in data for KOOL shows a similar pattern and compares
poorly with Camel.
Switchers-ln
% F.S,
Prior
Year Revitalization Post
KOOL 6.1 7.6 3.2
Newport 11.9 7.0 13.0
Camel I 2.1 22.8 24.0 F
?
-2-
The ~ints previously mentioned indicate that a successful
revitalization campaign (properly positioned with relevant
creative) begins almost immediately to significantly change
the brand's inflow pattern (either starters or switchers).
This has not occurred with KDOL.
Switching Study share of smoker data shows KOOL continuing
to drop.
KOOL Share of Smokers
Index to
Year Before
1979 1980 1981 1982 1983
6.8 6.3 6.2 6.1 5.9
|93) (98) (9B) (97}
2.
)COOL should actively position itself toward the only growth in the
smoking population -- females. The REV weighted target audience
breakout reflects media pressure for females but, on judgment, the
brand is not currently positioned toward females either directly or
as a by-product.
Females now comprise 52% of total current smoker population
and 62% of current menthol smokers.
Current Smokers
1979 3982
Female
Male Female Male F~ale Index
Menthol 43 57 3B 62 (109)
Ind. 52 48 48 52 (lOB)
676060 99 P
- 8
Of six major competitive brands, only Newport has grown more
male from 1979 to 19B2, moving from 42~ male to 44%.
As a percent of total starters and switchers-in for the
industry, f~ales show active growth, 1979-1982.
Starters Switchers-ln
Male Female Male Female
]979 1982 1979 1982 1979 ]982 1979 1982
55.4 44.5 34.6 55.5 58,5 48.2 44.5 51.B
Females comprise a much greater percentage of total inflow in
1982 than they did in 1979 -- the 3982/]979 index for female
menthol inflow is (135).
Menthol
Ind.
Inflow Demographics
1979 1982
Female
Male Female Male Fe~al e Index
49 51 31 69 !(1351
47 53 39 61 i (115)
676060300
-4-
Females are much more active switchers at 17% of former
smokers than males at 12%; KDOL needs switcher flow more
than ever with the industry drop in starters in general and
female positioning could beef up our inflow.
Female starters as a percent of total former smokers index
significantly better from 1979 to Ig82 than do males.
Starters
1979 198Z Index
Male 5.g 3.6
Female 5.1 4.2
MLT and MUL, the two menthol growth segments have a strong
female skew. MFT, more male by at least 10% than the other
two categories, continues to decline,
Trend toward more female smoking population may be leveling out,
It is doubtful that it will reverse with the decrease in smoking
population forecasted and external social and health pressures.
Full taste segment decline coupled with decrease in industry
males makes f~ales much more important to KODL in the long term.
Female positioning also has the potential of reducing the KOOL's
dependence on its Full Taste style which ~s part of a declinin~
market segment.
676060301
?
-5-
8,
The revised creative strategy which broadened KOOL to the "epitome
of smoking satisfaction" is more appropriate for the brand and
should be retained. This revision widens KOOL's inflow opportunity
and begins to re-establish our credibility in the non-menthol
segment for both starters and switchers-in.
SwYtchfng gafns from ~FT/PIains at 2.8% of former smokers
outnumber gains from MFT at 2.2%.
Switching gains fro~ total Non-menthol at 3.1% of former
smokers are only 79% of total Menthol gains at 3.9%. but
Non-menthol gains are increased over the previous year.
With Non-menthol/Menthol gains index at only 79 for KDOL.
fOOL is still pulling more heavily from Non-menthol than
Menthol vis-a-vis competltors. Historical data for KDOL
shows that we have this leverage.
KOOL
Non-Menthol/Menthol Gains Index
(% F.$. Base)
Salem Newport
1982 I 79 47 73J
1981 104 78 43
]980 126 120 61
]979 110 110 62
67G060302
-6-
KOOL is pulling close to fair share of total Non-~enthol
switchers and better than fair share from NMFT/PIains in
19B2. These indices are the best of the four-year period.
KOOL Family
Fair Share Gains
(% F.S, Basis)
Non-Menthol NMFT/Plains
I~Z (94) (113)
F# t; (73) (B])
As a percent of total gains in 19B2, NMFT provided 30.5% of
gains.
Losses to Non-menthol decreased as a percent of former smokers
1981 to 1982.
IgBZ Image Study data indicates that KOOL is perceived as being
closest to Marlboro and Winston -- two major non-~enthol
competitor$,
The young adult male starter pool for menthol has dropped 29%
since 1979 and we must source young male starters where they
are -- in the non-menthol se~ent.
KOOL losses to menthol outnumber losses to non-menthol by two
times, although gains from each segment are about equal.
As a percent of total gains, Marlboro and Winston contributed
nearly 20% in ]gB2.
KOOL image vis-a-vis den~graphics of competitive menthol smokers
(older females) suggests we have no choice but to reach out to
non-menthol switchers and starters.
676060303
-7-
4.
The kDOL Family strategy worked against the target audience for
Lights and Ultra, but neither style is an effective low-tar
offering at present.
Lights and Ultra are both significantly overdeveloped against
their segments for males and smokers under 35. KDOL Lights
smokers under Z5 are an exception with a segment index of only
(so)
Current Smoker KOOL Index to Segment
Lights Ultra*
Males (139) (132)
Smokers ~25 (BD) (164)
Smokers 25-34 (161) (146)
*Caution: Small absolute base
KOOL Ultra is not pulling its fair share of starters compared
to segment or its most viable competitor, Salem Ultra,
Ultra Starter Pair Share Index
I(OOL
Salem
MUL
3982 ]gB1
--
: (187) (167)
I
;(117): (116)
676060304
n
-8-
KOOL Ultra fair share of switching-in n~nbers are good --
better than Salon in its introductory year (1981) and 1982.
Switching-out appears too high, however, against
Salem.
Ultra Introduction
Switching In/Out Fair Share
Switching-ln Switchin~-Dut
KOOL (460) (51)
Sale~ {332) (36)
The KOOL Lights/Super Lights switching-out fair share (not
including the switching between the two) is very high com-
pared to competitor brands in 1982. Quitter fair share shows
a similar pattern.
Lights Switching/Out and Qu.itting
Fair Share
Switchinq~out Quitters
KOOL 18D i]7
Salem B4 128
Newport 71 86
676060 05
- g-
KOOL Lights/Super Lights switching-in and starter data for
1982 is generally strong vis-a-vis competitors. Newport
does best, however, on starters.
Lights Switching/In and Starting
Pair Share
Starters Switching/In
KOOL 163
Newport I272 i I 83
676060306
- 10 -
lo
Although current male smokers under 25 have slipped for KOOL and
the menthol segment, this group is stable or slightly improved
for the industry and non-menthol. Young adult males under Z5 are
an appropriate and reachable target audience for KODL -- end are
not incongruous with positioning toward females under 25 -- given
the subtle, sexual soft sell of a Newport which draws both sexes
effectively.
The young adult male starter pool is equal (as percent total
starters) in 19B2 to the pool in 1979. The young adult male
starter drop occurred only in the menthol segment, Fifty-six
percent of 1982 full taste starters under 25 are male -- an
increase of 3% over 1979 numbers,
Males still comprise 50) of total current young adult full
taste smokers.
The fair share index of young male (total industry) switchers
is 115 for 1982 and slightly better than in 197g. Other male
switcher groups in Ig82 don't index as well in this category.
Fair Share Switching Index
Industry Males
• 25 25-3~ 35+
1982 115 94 ID1
1979 112 gl 114
Indexed to menthol, KDOL remains heavily skewed male (]53) and
under 25 (127).
Fifty-eight percent of current KDOL Smokers are still male and
32% are males under 35 (with essentially no change from 1981).
676060307
