Jump to:

Anne Landman's Collection

Project Db Military Introduction Plan.

Date: 20 Jul 1983
Length: 60 pages
502486716-502486775
Jump To Images
snapshot_rjr 502486716-502486775

Abstract

This R.J. Reynolds (RJR) marketing document shows how cigarette companies exploit young people's need for "peer acceptance" to market cigarettes. This RJR document notes that young males are "extremely image sensitive and peer-approval oriented" and shows how they planned to leverage those psychological needs and tendencies to market a new brand of cigarette to young men in the military. Project DB was an attempt to increase RJR's military market share by introducing a new brand with imagery targeting young adult males' need for "peer acceptance" and "masculine user imagery." The brand was to appeal to "middle and lower income males" in the military and was to be sold at a price competitive with generic cigarettes.

The document refers to "younger adult males smokers" as "a lucrative source of business."

It repeatedly refers to young males' "needs for a sense of social belonging," "peer acceptance," "peer approval" and "masculine" or "virile imagery." Following is sample language from the marketing document that will give you an idea of how cigarette marketing minds view their young "prime prospects":

"DB's imagery should, therefore, project the male target smoker as a part of a group of male friends who share the same interests, lifestyles and attitudes. The group with whom the target associates emanates a special kinship and social rapport. They enjoy a group friendship which spans enough mutual experiences and private jokes for these men to know each other well and appreciate each other's company. Because of their collective history, they are completely at ease with each other...

They group reassures and reinforces its member's sense of social belonging and well-being. They talk and listen to each other about their everyday wins and losses; they back each other up; they have been through something together; they have a good time together and basically see the world the same way. While their individual personalities may be different, collectively they form a balanced personality, compensating for each other's shorts and strengths. This group reinforcement mechanism will be positioned in DB's favor, acting as a peer endorsement for selecting a good cigarette at a substantially lower price. The group recognizes the real value which DB offers."

This document is an excellent example of the misuse (perversion?) of psychology to sell a deadly, addictive product to young, low-income males who decided to serve the U.S. in the military.

Fields

Quotes

Overview

Project DB is a new brand of cigarettes which offers smokers masculine user imagery with the permanent purchase incentive of a substantial price savings versus established virile segment brands. The Brand will be manufactured in both 85mm and 100mm non-menthol styles at approximately 15 mg tar. The prime prospect is male, age 18-34 with primary emphasis on the 18-24 year old segment. This target has been identified because they are extremely image sensitive, peer-approval oriented and increasingly price sensitive. Project DB has been developed to address all three of these key areas of need consistently expressed by target smokers.

Project DB will be introduced into the military market, which represents 3.1% of total U.S. industry volume, on October 17, 1982. The Brand will be intensely supported during its initial introductory period, October 1983 - February 1984 with maximum media coverage and specifically tailored promotional programs designed to blanket the military environment....

...A. Summary of Opportunity

Project DB represents an offensive opportunity for RJR to generate incremental volume and share for the Corporation. This will be accomplished through the introduction of a unique marketing variable -- a permanent price benefit -- into the marketing mix, while positioning the Brand against a lucrative source of business - younger adult male smokers...

B. Strategy Summary

• Positioning - Project DB will be positioned as providing distinctive masculine user imagery and a high level of peer acceptance as conveyed through all visible brand elements. The Brand's point of difference -- its unique price point -- will act as a permanent incentive for continued purchase and usage.

The Project DB product will deliver a taste as rich and smooth as competing virile segment brands. The taste not only will satisfy the product wants of the DB prospect, but will also enable him to feel confident in sharing that good taste with his friends.

Prime Prospect - The prime prospect for Project DB is a male smoker, age l8-34, with specific emphasis placed against the 18-24 year old smoker group. The prime prospect can be further described as middle to lower income and extremely image sensitive. His needs for a sense of social belonging are satisfied by the image projected by Project DB, and thus reinforces his purchase decision. Because Project DB is accepted by his peer group, the Brand's lower price is viewed as a positive, real value which serves as a permanent incentive for continued purchase.

...• Copy - A unique approach within the highly competitive virile segment has been taken in the development of the DB advertising campaign. The concept of belonging is central to the campaign; DB is a cigarette smoked by men who enjoy spending special time with their good friends. While each of these men possess individually different personality traits, together they possess a strong sense of group identity and belonging. The campaign will differentiate itself from every existing virile segment brand since it exemplifies group belonging and peer approval. As such, it is distinguished from Marlboro's romanticized independence, CAMEL's adventurous masculinity and WINSTON's proud bond of honor among men. Thus, the Project DB campaign will fill a void in the virile segment and will be perceived as unique, modern and as a realistic portrayal of the younger adult male smoker's lifestyle.

...I. OVERVIEW (continued)

B. _Strategy Summary_ (Continued)

--_Spending_ - A total of $8.375MM is recommended to support Project DB during its Year I Marketing Period (October, 1983 - September, 1984). Of this amount, $5.615MM (67%) will be spent during the Brand's initial introductory period (October, 1983-February, 1984) to maximize military market coverage. A total of $2.760MM (33% of total) sustaining spending during the balance of 1984 (March-September) is recommended to ensure sufficient brand presence and impact...

• Competitive - Currently all virile segment brands rely on their rugged, masculine user imagery, to appeal to their smokers. DB will fill a void in the marketplace because its "peer-approved" image will distinguish it from Marlboro's image of fantasy and romanticized independence, CAMEL's adventurous, individualized masculinity and WINSTON's proud bond of honor and pride in achievement. DB will project the target smoker as part of a group of male friends who share the same interests, attitudes, preferences and lifestyles. The Brand's additional price benefit will be attractive to all virile segment smokers who are demonstrating price sensitivity by modifying their consumption habits and purchase behavior of their current brand rather than switching to generics for price relief...

B. Demographic Profile -- The demographic profile of the military skews male, younger and less educated than the general market. Over 90% of active military is male, 32% are aged under 25, and 52% are under 34, thereby suggesting a strong desire for products offering a masculine image in this market. In fact these demographic skews most closely replicate that of the Virile category but to a greater extreme...

The DB brand must be perceived as providing distinctive masculine user imagery and a high level of peer acceptance, as conveyed through all visible brand elements. The brand's point of difference -- its unique price point -- must act as a permanent incentive for continued purchase rather than as DB's primary entree to this smoker group. The target's need for peer approval/acceptance is central to the brand's positioning. The establishment of DB as a cigarette which is accepted by one's friends/peers is essential in counterbalancing the peer rejection pressure'which would likely result from the brand being positioned solely on its price differential. As well, a "peer approved" image for DB distinguishes it from Marlboro's romanticized independence, CAMEL's adventurous masculinity and WINSTON's proud bond of honor, pride in achievement. DB's imagery should, therefore, project the male target smoker as a part of a group of male friends who share the same interests, lifestyles and attitudes. The group with whom the target associates emanates a special kinship and social rapport. They enjoy a group friendship which spans enough mutual experiences and private jokes for these men to know each other well and appreciate each other's company. Because of their collective history, they are completely at ease withi each other...

They group reassures and reinforces its member's sense of social belonging and well-being. They talk and listen to each other about their everyday wins and losses; they back each other up; they have been through something together; they have a good time together and basically see the world the same way. While their individual personalities may be different, collectively they form a balanced personality, compensating for each other's shorts and strengths. This group reinforcement mechanism will be positioned in DB's favor, acting as a peer endorsement for selecting a good cigarette at a substantially lower price. The group recognizes the real value which DB offers. Their choice of DB as their cigarette fits with the authentic, real relationship and values which the group shares. The DB product must stand for and will deliver a taste as rich and smooth as its competitive brands. This taste not only will satisfy the product wants of the DB prospect, but also will enable him to enjoy sharing that good taste with his friends.

C. Prime Prospect -- The prime prospect for DB is mid-lower income male, 18-34 year old smokers, emphasizing the 18-24 year old smoker group. He is attracted to DB because its image satisfies his need for a sense of social belonging and well-being. His initial choice of DB as his brand is made primarily because these imagery characteristics are attractive and compelling. Because DB is accepted by the group, the brand's lower price is viewed as a positive, real value. The lower price serves as an incentive for continued purchase once the image has attracted him to the brand.

Company
R.J.Reynolds Tobacco Company
Author
Presumed corporate author, R.J.Reynolds Tobacco Co.
Recipient
N/A
Region
United States
Named Person
Liggett Tobacco Co.
Philip Morris Tobacco Co.
RJR Tobacco Co.
Type
MARKETING DOC
Operation/Project
Project DB (New brand to market to military)
Project DB was an attempt by the R.J. Reynolds Tobacco Company to increase military market share by introducing a new brand with a "virile image" that would attempt to "satisfy [young males'] need for a sense of social belonging and well-being."
Subject
marketing
marketing strategy
market segment
young adult male smoker
peer influence
advertising message

Document Images

Text Control

Highlight Text:

OCR Text Alignment:

Image Control

Image Rotation:

Image Size:

Page 1: vqd88d00
PROJECT DB MILITARY INTRODUCTION PLAN Pages I. Overview II. Feasibility III. Opportunity Analysis IV. Marketing Objectives V. Positioning Statement VI. Financial Plan VII. Pricing Plan VIII. Name/Package Plan IX. Product Development Plan X. Advertising Plan A. Copy Plan B. Media Plan XI. Promotion Plan XII. Sales Plan XIII. Research Plan XIV. Public Relations Plan XV. Critical Path Summary
Page 2: vqd88d00
I. Overview Project DB is a new brand of cigarettes which offers smokers masculine user imagery with the permanent purchase incentive of a substantial price savings versus established virile segment brands. The Brand will be manufactured in both 85mm and 100mm non-menthol styles at approximately 15 mg tar. The prime prospect is male, age 18-34 with primary emphasis on the 18-24 year old segment. This target has been identified because they are extremely image sensitive, peer-approval oriented and increasingly-price sensitive. Project DB has been developed to address all three of these key areas of need consistently expressed by target smokers. Project DB will be introduced into the military market, which represents 3.1% of total U.S. industry volume, on October 17, 1982. The Brand will be intensely supported during its initial introductory period, October 1983 - February 1984 with maximum media coverage and specifically tailored promotional programs designed to blanket the military environment. Spending for the Brand will be adjusted to sustaining levels for the balance of the Year I Marketing - Period (March - September, 1984) with marketing activity planned to ensure continuity of brand presence and support. The following chart details Project DB Year I Marketing _ support within the military environment: 1983 1984 O N D J F M A M J J A S O N D DB Military Intro. Period. DB Military Sust. Period Sustaining Drive Period Cl The following summary will describe Project DB's military marketing opportunity and briefly overview the Brand's introductory marketing plan: A. Summary of Opportunity Project DB represents an offensive opportunity for RJR to generate incremental volume and share for the Corporation. This will be accomplished through the introduction of a unique marketing variable -- a permanent price benefit -- into the marketing mix, while positioning the Brand against a lucrative source of business - younger adult male smokers. The recent performance of generic cigarettes indicates the price sensitivity demonstrated by consumers in response to recent manufacturers list price increases..
Page 3: vqd88d00
I. Overview (Continued) B. Strategy Summary (Continued) • Promotion - Promotion emphasis will be skewed into the October 1983 - February 1984 introductory period as it is critical to rapidly achieve substantial levels of awareness, of the DB proposition, product trial and follow-up purchase during this time period. A barrage of promotional programs, including sampling, couponing, Buy One Pack, Get One Free and Buy One Carton, Get One Free are scheduled during the introductory period to support the Brand. During the sustaining period, promotion will be used to maintain retail presence and impact, with incremental programs scheduled for the May - June emphasis period to ensure continued consumer re-trial and purchase opportunities.
Page 4: vqd88d00
I. Overview (Continued) B. Strategy Summary (Continued) • Spending -.A total of $8.375MM is recommended to support Project DB during its Year I Marketing Period (October, 1983 - September, 1984). Of this amount, $5.615MM (67%) will be spent during the Brand's initial introductory period (October, 1983 - February, 1984) to maximize military market coverage. A total of $2.760MM (33% of total) sustaining spending during the balance of 1984 (March-September) is recom- mended to ensure sufficient brand presence and impact. Additionally, an emphasis period is planned for May/ June, 1984 to provide incremental consumer awareness and product exposure during the sustaining period. Intro. Per. Sustaining Per. Total Year I 10/83-2/84 3/84-9/84 endin ' ($M'~ ( ~) Media 2.1 1.1 3.2 Production .2 .1 .3 Fee .3 .1 .4 Total Advertising 2.6 1.3 3.9 Consumer/Trade 2.7 1.4 4.1 Promotion Total Brand Contr. 5.3 2.7 8.0 MDD Projects .3 - .3 Total Mktg. Expense 5.6 2.7 8.3 % Spending 67 33 100 • Media - During the October 1983 - February, 1984 introductory pe ir od, the Project DB media plan will focus the majority of its spending weight to provide mass coverage through the use of on-base newspapers. National military magazines will be used to provide additional message communication, taking advantage of the available four-color format. The military out-of-home inventory will also be used during the introductory period to achieve heightened levels of awareness. A total of 66% of total Marketing Year I media-dollars will be spent during the introductory=, period. Media spending weight will be reduced during the sustaining period to provide limited reach with con- tinuous frequency against the target. Media spending will June be concentrated, however, during the Brand's May - emphasis period to provide incremental levels of ~ media presence and to support planned promotional efforts. O ~ A total of 34% of Marketing Year I dollars are. allocated to the sustaining period. a a+ ~ N O
Page 5: vqd88d00
II. Feasibility (Continued) C. Marketing (Continued) • Positioning (Continued) virile segment brands. The younger adult male target smoker has demonstrated a critical need for peer acceptance and approval, yet is becoming increasingly price sensitive. Positioning DB as a masculine brand with appealing imagery will provide the incentive for initial trial of the Brand. The price advantage will solidify the target's decision to purchase DB on a continuous sustaining basis. • Competitive - Currently all virile segment brands rely on their rugged, masculine user imagery. to appeal to their smokers. DB will fill a void in the marketplace because its"peer-approved" image will distinguish it from Marlboro's image of fantasy and romanticized independence, CAMEL's adventurous, individualized masculinity and WINSTON's proud bond of honor and pride in achievement. DB will project the target smoker as part of a group of male friends who share the same interests, attitudes, preferences and lifestyles. The Brand's additional price benefit will be attractive to all virile segment smokers who are demonstrating, price sensitivity by modifying their consumption habits and purchase behavior of their current brand rather than switching to generics for price relief.
Page 6: vqd88d00
III. Opportunity Analysis (Continued) B. Demographic Profile (Continued) Total Total Virile Enlisted Military $ $ $ Education Non-College 62.2 66.8 82.7 College 37.8 33.2 17.3 Occupation White Collar/Officer 61.6 53.9 13.5 Blue Collar/Enlisted 33.4 46.1 86.5 C. Brand Performance R. J. Reynolds' long term leadership role in the military market is being challenged due to a 1.10 share drop between 1981 and 1982. Philip Morris' SOM is 31.2 versus R. J. Reynolds' 31.8 SOM. The only manufacturers which exhibited growth between 1981 and 1982 were Philip Morris and Liggett & Myers with 1.06 and 2.13 share point changes respectively. Company Share of Market December YTD, 1981 Versus 1982 rZilitary Danestic 1981 SOM 1982 SOM S are Point Change 1981 SCM 1982 SOM are Point Cie RJR 32.91 31.81 (1.10) 33.07 33.55 + .48 ~ Philip M4rris 30.10 31:16 +1.06 31.83 32.85 +1.02 Amexican 11.87 11.21 (.66) 9.47 8.79 "(.68) B&W 13.75 12.56 (1.19) 14.01 13.37 (.64) Iprillard 7.99 7.75 (.24) 9.05 8.55 (.50) L&M 3.38 5.51 +2.13 2.55 2.87 +.32 Philip Morris' continuing strength in the military is solely attributable to its performance in the Virile category -- namely Marlboro. A review of the top ten brands illustrates dominance of the Virile category, representing almost 40% of the total market. Marlboro ranks first with 18 share points and a 1.39 share point increase between 1981 and 1982. This is a higher gain than it achieved nationally.
Page 7: vqd88d00
III. Opportunity Analysis A. Overview The military market represents 3.3% of all cigarettes sold in the United States, translating to a volume of 21.3 billion units in 1982. For R. J. Reynolds, this market is responsible for 3.1% of total sales or 6.8 million units. A 1.2% volume decline between 1981 and 1982 was witnessed for the military industry. However, R. J. Reynolds suffered more severely than average with a 4.5% decline during this period; 7.1 versus 6.8 SOM. Sales Volume (Units In Billions) December YTD 1981 Versus 1982 1981 Volume 1982 Volume $ Volume Change Total Industry U.S. 626.50 622.30 +1.0% Tota1'RJR U.S. 207.18 208.78 +2.5% Total Military 21.50 21.25 (1.2%) Total RJR Military 7.07 6.76 (4.5%) B. Demographic Profile The demographic profile of the military skews male,__ ~oun ~er and less educated than the general market. Over 90% of active mi itary is male, 32% are aged under 25, and 52% are under 34, thereby suggesting a strong desire for products offering a masculine image in this market. In fact,these demographic skews most closely replicate that of the Virile category but to a greater extreme. Smoker Profile Total Total Virile Enlisted Military $ $ ~ Sex Male 51.8 64.9 91.1 Female 48.2 35.1 8.9 Age 18-24 17.0 22.3 32.1 25-34 25.3 28.3 20.2 35-49 28.4 27.4 19.7 50+ 29.3 21.9 27.9
Page 8: vqd88d00
I. Overview (Continued) B. Strategy Summary (Continued) • Product - Initially, product development work has concentrated at 14- 5 mg. tar, on the rapid development of 85mm and 100mm products which meet consumer action standards using existing blends and physical configurations. Concurrent development efforts have been directed toward identifying and consumer testing prototypes with significant cost savings for in-market availability by January, 1984. • Name/Packaging - The product's name and modified wedge design package have been recommended and approved as they work in tandem to: create the image of a conventional, accepted, popular brand which is easily recognized and attractive. communicate key product benefits of rich taste and fine quality. - inform target smokers that the brand appeals to their key needs of masculinity reinforcement and social acceptance. • Prioing - The Brand will establish a permanent price point between standard brands and generics which will offer military consumers substantial price savings versus standard brands, yet will also provide identical product quality, consistency and reliability to which smokers have come to expect in their current brands. • Copy - A unique approach within the highly competitive virile segment has been tak_en in-the development of the DB advertising campaign. The concept of belonging is central to the campaign; DB is a cigarette smoked by men who enjoy spending special time with their good friends. While each of these men possess individually different personality traits, together they possess a strong sense of group identity and belonging. The campaign will differentiate itself from every existing virile segment brand since it exemplifies group belonging and peer approval. As such, it is distinguished from Marlboro's romanticized independence, CAMEL's adventurous masculinity and WINSTON's proud bond of honor among men. Thus, the Project DB campaign will fill a void in the virile segment and will be perceived as unique, modern and as a realistic portrayal of the younger adult male smoker's lifestyle.
Page 9: vqd88d00
III. Opportunity Analysis (Continued) C. Brand Performance (Continued) Category Share of Market December YTD, 1981 Versus 1982 Military Danestic 1981 SQM 1982 SQM Share Point Change 1981 SCx'i 1982 SCM Share Point Change Ful.l Flavor 49.84 47.67 (2.17) 50.14 48.81 (1.33) Low Tar 42.27 44.91 +2.64 42.08 43.96 +1.88 FFLT 31.86 33.98 +2.12 31.77 33.18 +1.91 ULT 10.41 10.93 +.52 10.31 10.78 +.47 80-85mm 52.26 51.31 (.95) 57.00 56.08 (.92) 100mn+ 39.85 41.27 +1.42 35.23 36.69 +1.46 Non-Menthol 64.55 65.05 +.50 63.68 64.07 +.39 Menthol 27.56 27.52 (.04) 28.54 28.70 +.16 Zbtal Boac 9.09 10.37 +1.30 11.54 12.92 +1.38 D. Summary The military market represents substantial volume each year for R. J. Reynolds. However, R. J. Reynolds' strength in this market is being challenged by competitive Virile (e.g., Marlboro) and generic brands. Demographic profiles and brand performance in this market support strong potential for a brand offering strong Virile image supported by a discounted price.
Page 10: vqd88d00
II. Feasibility A. Production Manufacturing has confirmed that sufficient capacity is available to produce introductory and sustaining quantities of Project DB throughout the Brand's Year I military marketing period with Phase III production to begin 8/22. Due to usage of an existing blend in product development efforts, no incremental capital expenditures for additional equipment or machinery are necessary. B. Financial Preliminary Payback and ROI estimates are in accordance with RJR corporate guidelines, and verify the financial feasibility of the project. DB RJR Objective Return on Investment (10 yrs) 15.0% Payout -- C. Marketing Project DB represents a unique opportunity to generate incremental corporate share and volume within the military market based on: • Consumer Wants - In the MDD strategic planning presentation o Externa Influences Affecting the Cigarette Industry,'the emergence of a "smart shopper" was described as a key future influence of the consumer packaged goods industry. Consumers are now demanding product value at significant cost savings. This is particularly evident in the military retail environ- ment where goods are available at a substantially reduced price versus the general market. Project DB will deliver against both these needs by offering smokers a quality, good tasting product in a conventional package with the added benefit of considerable price savings versus standard brands.-. - .. . , • Product - DB is a full:flavor low tar, 85mm and 100mm prc.~uct offering smokers smooth, rich tobacco flavor, branded quality and consistency comparable to that which smokers have come to expect in their cigarettes. • Positioning - DB is positioned as a brand which offers smokers masculine user imagery with the permanent purchase incentive of a price savings compared to established

Text Control

Highlight Text:

OCR Text Alignment:

Image Control

Image Rotation:

Image Size: