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Anne Landman's Collection

Segmentation Analysis Summary of Findings.

Date: 11 Oct 1991
Length: 86 pages
513865980-513866065
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Abstract

The most interesting section of this 80+ page R.J. Reynolds marketing document is from Pages 78-86, where it discusses how to turn "smoking negatives" into "product opportunities." The report lists the negative feelings that smokers experience, like alienation, isolation, loneliness, powerlessness and social rejection--and explores "product positionings" that the company could use to leverage these feelings into "marketing opportunities."

Examples:

"Self indulgent behavior/i.e. smoking enjoyment...increasingly difficult given secondhand smoke issue and social unacceptability...

--Restore belief that smokers smoke for pleasure...Depict smoking in guilt free situations (e.g. bars) to alleviate guilt...Associate with other indulgent products such as coffee, etc."

In a section on Page 83 (Bates No. 513866062) entitled "EMPOWERMENT LOSS," the paper discusses smokers' feelings of powerlessness:

"Ever-changing world creates feelings of being small, weak, unable to cope with changes...due to lack of power and control and personal feelings of helplessness. Smokers, in particular, are strongly affected by this trend given expanding restrictions, rising taxes/prices and decreasing social acceptability of cigarettes converging to impact the largely downscale (and thus less powerful smoker population. Smokers are overwhelmed by these dynamics and (in view of second hand smoke issue) readily relinquish power."

The paper then discusses how to turn these feelings of powerlessness and helplessness into an effective ad campaign for cigarettes (A goal is to "counter the antis story that smokers are powerless/addicted" ):

"Application:

General Opportunity for products which offer empowerment: Dimensions Power, Force, Might, Vigor, Pep, Fortify, Effort, Strength, Performance, Vitality, Potency, Activity, Ability, Fuel. Empowerment, Taking control, Taking on the system, David and Goliath, Not becoming a number.

RJR Applications:

• Counter the Anti's story that smokers are powerless/addicted. Emphasize Choice and smoking benefits: pleasure/stress relief/enhanced mental acuity.

• Continue to chip away at second-hand smoke issue..."

With great irony, the paper points out that smokers are "not joiners," saying the company needs to find some way to get smokers to "act together." It then suggests basing an ad campaign on the theme, "It's YOUR choice."

Fields

Quotes

Private Indulgence to Avoid Social Criticism

--Search for personally indulgent pleasures without criticism and without the social watchfulness which creates guilt about the indulgence.

--Frustrations, in general, and pressures for physical improvement and "Living Right" creating rebound for private indulgence. People like to snack a lot, drink, be a couch potato...without feeling criticized or watched.

--Self-indulgent behavior, ie., smoking enjoyment, by smokers increasingly difficult given secondhand smoke issue and social unacceptability

Applications

Provide permission, availability, justification for indulgence.

RJR Applications

Company

--Restore belief that smokers smoke for pleasure... --Develop lines of goods and services for smokers (e.g., airlines, insurance, etc.) to alleviate "penalties" paid by smokers.

...Depict smoking in guilt free situations (e.g. bars) to alleviate guilt.

--Depict smoking pleasure. --Associate with other indulgent products such as coffee, etc. --Market brands around pleasure, not just moderation...

CAMEL

Utilize CAMEL Regular.

--Support it -- it's our double-stuffed Oreos.

New Products

Guiltless products (a la Healthy Choice/Snackwells) positioning as return to smoking enjoyment given reduced negatives.

--Explore cigarette configuration vis-a-vis oral gratification.

WEAKENING RELATIONSHIPS

People feel emotionally isolated, because relationships are troubled, breaking down and fragmented. They cannot maintaint he kinds of friendships, families and romantinc involvement they want to have, and feel puzzled, frustrated and angry about it.

People are seeking warm, meaningful, close relationships but don't know how to achieve them.

Relationships for smokers to non-smokers is impeded. Smokers are a new minority group, huddled together in limited geography where smoking is not prohibited.

APPLICATIONS

Facilitate interaction with others. Getting close with others, staying close with a loved one...

DIMENSIONS

Association, connection, involvement, friendship, camaraderie, love, bonding, intimacy.

RJR Applications

--Explore sociability brand positioning... --Marlboro and Newport capitalize on this trend via peer influence.

Programs

Relationship marketing programs tap trend as does personal selling/conversion. Must maintain relationship after conversion process complete (see recognition and individuality). • In relationship programs, must -- to maximum extent possible -- personalize brand contact (e.g., brand manager, "personal banker", etc., to facilitate one-to-one relationship. • Incorporate sociability dimension into relationship programs -- e.g., Saturn franchise party.

EMPOWERMENT LOSS

Ever-changing world creates feeling of being small, weak, unable to cope with changes. Can't control changes, so must adjust...

Feeling small due to lack of power and control and personal feelings of helplessness.

Smokers, in particular, are strongly by this trend given expanding restrictions, rising taxes/prices and decreasing social acceptability of cigarettes converging to impact the largely downscale (and thus less powerful smoker population. Smokers are overwhelmed by these dynamics and (in view of second hand smoke issue) readily relinquish power.

Application

General Opportunity for products which offer empowerment. Dimensions Power, Force, Might, Vigor, Pep, Fortify, Effort, Strength, Performance, Vitality, Potency, Activity, Ability, Fuel, Empowerment, Taking control, Taking on the system, David and Goliath, Not becoming a number.

RJR Applications Company • Counter the Anti's story that smokers are powerless/addicted. Emphasize Choice and smoking benefits: pleasure/stress relief/enhanced mental acuity. • Continue to chip away at second-hand smoke issue and communicate industry perspective to smokers. • Let smokers know how Company is working to support them -- they are empowered through Company. We work for smokers --> We fight for smokers. Company that champions smokers should benefit. Tie/Brands to R JR corporate equity/logo.

Smokers not joiner-type personality; need to find ways to get them to act together...

Empower smokers to select brands based on positive reason. Emphasize it's YOUR choice. Provide concrete product information to empower smokers to make "rational" brand choice. --Link products to other issues (green movement)... --Link brand to a benefit image -- in lieu of taste image-- to create more positive smoker self-perception.

Marlboro: On trend based on imagery of masculine power, control, and escapism in Cowboy.

CAMEL

-Exploit this trend via activeness and evergy implicit in Lust for Life positioning.

DORAL: Vicarious activism picked up by DORAL smokers through positioning DOARL as activist brand. Smokers Rights mialing provides need to "fight city hall."

...Develop non-cigarette products for smokers that reinforces that smokers are OK people.

Company
R.J. Reynolds
Author
Presumed corporate author, R.J. Reynolds
Recipient
Presumed corporate recipient, R.J. Reynolds
Region
United States
Type
REPORT
Named Person
Arnett, R.
Subject
addiction
marketing research
marketing strategy

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Page 1: cdo13d00
• S (5 0 ~~ T li V/ ~ T 0 T LL T 0 2 2
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• • • Key Dynamics ~ Brand Loyalty ~ Smoker Adaptation to Category Complexity 4* Perceptions of Price and Quality ~ Smoker Aging ~ Smoking Negatives and Social Controversy t86S 98EtiS
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• • • Brand Loyalty El While not yet fully reflected behaviorally, smokers see greater choice and product parity, resulting in decreased attitudinal loyalty. 0 The mix in marketing spending in the category has played a key role in these changes. Z86S 98£iS
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Brand Loyalty F~ Behaviorally, smokers remain extremely loyal to their CUB in terms of recent purchases. El Attitudinally, brand loyalty has slipped somewhat since 1985. 0 Still strong compared to other categories. El This translates to increased occasional use and accelerated switching rates. E86S 988ZS
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Brand Loyalty TOTAL INDUSTRY 0 Bedrock behavioral measures of loyalty to CUB have been flat. 1985 1988 1989 1990 Behavioral % requirements satisfied by UB (TPT) 96 95 93 94 Average number of brand families in considered set (bought in past year) 3.0 3.1 3.0 2.9 SOURCE: TPT'S/SMART '6865 98£IS
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Brand Loyalty TOTAL INDUSTRY 0 However, the attitudinal strength of that loyalty has softened. 0 A large proportion 'now have acceptable substitutes for their CUB. 1985 1988 1989 1990 Attitudinal Preference share to . usual brand/style (chips) 82 75 74 71 UB far better than any other - 49 3 8 UB best, but found substitutes - 30 3 8 SOURCE: TPT'S/SMART S86S 98EZS
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Brand Loyalty TOTAL INDUSTRY 1:1 Occasional use and switching have both increased. 1988 1989 1990 Occasional Use Buyers 25 ~ 29 29 Sticks 10 c~> 11 ~ 12 Net Switching Rate 8 8 ~ 10 SOURCE: DIARY 9869 98£TS
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, . 0 Brand Loyalty SHARE OF REQUIREMENTS TO USUAL BRAND El WINSTON, SALEM and Marlboro are softening slightly. 0 CAMEL and Newport are improving. 1985 1988 1989 1990 Total Industry 96 95 93 94 WINSTON 96 94 92 93 SALEM 94 94 95 91 Marlboro 96 95 93 93 CAMEL 90 1* 91 c:~ 92 ~ 94 Newport 95 92 82 96 + SMALL BASE SIZE Lg65 98£tS
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Brand Loyalty SHARE OF PREFERENCE BY USUAL BRAND F~ WINSTON, SALEM and Marlboro show largest declines. El CAMEL and Newport fare better than category overall. 1985 1988 1989 1990 T otal Industry 82 75 74 71 W INSTON 76 c4> 69 65 63 S ALEM 81 1* 74 77 70 M arlboro 78 ~ 74 71 66 C AMEL 72 ~ 67 66 ~> 68 N ewport 78 ~ 68 60 L~> 72 L7 Purchase and preference share tracking together. 8869 98£iS
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Brand Loyalty STRENGTH OF PREFERENCE BY USUAL BRAND ^ An opportunity exists to target brands - or parts of brands with weak preference. 1990 SMART Preference Share Brands In Considered Set Brand Newport 72 2.7 SALEM 70 3.0 CAMEL 68 2.9 B&H 68 3.3 Kool 66 3.1 Merit 66 3.2 Marlboro 66 3.2 Virginia Slims 64 3.0 VANTAGE 64 3.3 A/O Savings 64 3.2 WINSTON 63 3.2 DORAL - 52 3.1 6969 98£tS

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