Jump to:

Lorillard

Lorillard Newport Brand Review

Date: 1970 (est.)
Length: 15 pages
03301916-03301930
Jump To Images
snapshot_lor 03301916-03301930

Document Images

Text Control

Highlight Text:

OCR Text Alignment:

Image Control

Image Rotation:

Image Size:

Page 1: pld20e00
IAR I L1ARD NEWPORT BRAND REVIEW ~~. -&
Page 2: pld20e00
SALES DATA \ Industry sales in 1969 dropped -2.59e from 2 to r"! / bi11;.3z units. The only category to show a gain was menthols, aizich no-ta equals the non- filter segment. 'rae most recent data on menthols trom Auaits ana 5urveys snow SaLem .n the lead with a 7.47`% share of total market, but 1Koo1 is climbing fast and is at A 6.0°,~ share. Newport is currently at 1.3% sh.;re. The brand shares of the menthol market are as follows : Salem -- 31.29; Kool -- 25.69. Belair -- 8.2% Newport -- 5.4% Shipmznts for the brand during 1968-1969, 1969-1970 and 1970-1971 are: 1968-1469 1969-1970 1970-1971 Forecast _ Units Units % Units % SIiillions) Bi11i_ons ), Change (Billions)_ Change , King 4,144 3,269 -21.1 2,740 -16.2 100's 715 589 -17.6 720 +22.2 Box 739 571 -22.7 540 - 5.4 Total 5,598 4,429 -20.9 4,000 - 9.7
Page 3: pld20e00
-•, ~ '. TOTAL Ti}1]ZKET ]3Y CATEGORY %: ChanIge in1. Vn] 1968~19ti9Share of Market vS vs' 1957 1967 1968' 1969 1967 I, 19(tiS Total :-iarket 100.0 1:00.0 100.0 100.0' Filter 34.9 52.6 53'.9 55.1 +3.5 -0•-`+' Menthol 6.5 21.2 21.7 22.3 +3.5 +0.6 Non-Filter • 58.6 26.2 24.4 2'2.& -6.3 -10.U Source: 1.957 - Wuotten 1967-1969 - Audits & Surve} s C . ~z _ . ~ ~.~', 6/ 2 4/ 7 C ~ ~ ,.
Page 4: pld20e00
L,H;NTHOL MARKET SHARE OF TOTAL MARKET . SHARE 0: MENTHOL MARKET M/A ~ 1/A 10 1957 1967 1968 1969 1970 1957 1967 1968 1969 1970 Newport 0.2% 1.8% 1.7% 1.5% 1.3% 3.4% 8.3% 7.8% 6.7% 5.4` Stilem 1.0 7.2 7.3 7.3 7.4 25.2 32.5 33.7 32.7 31.2 Kool 2.9 4.6 4.9 5.5 6.0 47.9 22.2 22.3 24.7 25.6 Belair - 1.9 1.7 1.8 2.0 - 9.1 7.9 8.1 8.2 True - 0.8 0.9 0.7 0.7 - 3.6 3.9 3.1 3.0 Pall Mall - 0.6 0.7 0.7 0.6 - 3.3 3.4 3.1 2.G k'inston - 0.6 0.9 0.8 0.8 - 2.7 4.1 3.6 3.3 Source: Audits and Surveys f jf;I0EC0
Page 5: pld20e00
NEWPORT SHIPMENTS There seems to be some evidence that the sharp decline in Newport durieg 1968-1969 (the period during which the blend, tip and package changes occurred) has begun Co It.VC'i VL'i, jllipiileliia iui the ~aLC..~;... ),...~ ..... were off more than the fiscal year 1969-1970. Sec following tables and chart. It should also be pointed out that Newport still has more than SOJo of its business in the top ten~ markets and close to 70`/, in the top twenty. -4 ~
Page 6: pld20e00
TREND IN NEik''1'~")'~ il' ;A'~',1'ti[1:NTS 1957- S Units 7, Change (Billions) 1957 0.9 1(.158 1959 4.6 + 70.4 1960 5.8' + 26.1 1961 7.3' + 25.9 1962 8.4 + 15.0 1963 8.5 + 1.0 1964 7.9 - 7.1 1965 8.7 + 10.1 1966 8.6 1967 7.7 • - 10.5 1968' 7.0 - 10.2 1969 4.9 - 30.0 Est. Fiscal 1969-70 4.429 , - 20•9* * Vs. Fiscal 1968-69 at 5.598 ~:
Page 7: pld20e00
NEWPORT Marketing Objectives Stem sales decline by establishing a new franchise with current and potential menthol smokers. Marketing Strategy Revise current product to broaden appeal by achieving smoking characteristics of the market leader, Salem, but wit4an addediproduct benefit to set it apart from competition and provide a believable superiority claim,. ~
Page 8: pld20e00
i i _ i • < '\ `t:4 REPOSITIO G OF NEWPORT Feature Recent Changes (1968 - 1969) Coal Now Action Package Strengthened design; made more Reduce strength somewhat without Color change accomplished masculine altering basic design ip Tip Changed from white to cork Tip which goes with milder taste:, Change back to white tip acceptable to Salem smokers Nicotine Dropped from 1.3 - 1.4 mg. Same level as leaders, especially Raise to 1.4 mg. to 1.1 mg. - Salem Taste (tobacco) increased; may have upped "harshness" with taste Smooth, balanced taste with sama Greensboro lab acceptability as Salem Menthol Increased 1 Advertising Claim "Hint of Mint" dropped in Build in a reason-why relating i,j Existing ingredient,or 1963 ingredient neGr additive Advertising Execution Adopted "Men of the Sea;" Add women. Show activity -- Creative development became more masculine. people enjoying themselves Also dropped girls; reduced and their cigarette image of interacting, active people. Mt.oCCo
Page 9: pld20e00
?:,,~E~~RC;i t',i S0: L~:F'JIll!!•`1'IO1JS 1:. Pre-test.netio cony dlrection(s) lieasul•e;nent object~ves: - cornpr^hension - r'21 p1r.'in(`- - inLCt'~'S~ TS.ming: 7-10 d:iy:s 2. Prof ile study :ir.-,ong menthol smol:ers Tieasur,ment objeetives: -, current pc:.(cer.tion ol" bi•or,ci; (I'leyrport, yalcIr,, Kool) - benc}unar': mc;, sur+~rner. ~ - ~ <, ; r:;;'. whii.ch to n;e,.sare j)rcJu,-t advertising T'iAninf;: 6 weel:s Iiew produrt :~~'o;-mul,:tion Jicesurc:mer.t objcctives: 3 Timing: 6 weeks consumcr :.lc-:cpl',.~:,cc Newrort, >. ? em and Kool Scr 5. :a n) of mt•r formulation ~
Page 10: pld20e00
CREATIVE STRATEGY The primary objective of Newport advertising will be. vT 7- _,. r; ) that Newport offers ainew freshriess experience that is superior to~ all competition. This objective will be achieved by exploiting the brand's exclusive product difference. Secondary support will be provided by the brand's q!uality tobaccos and pure white filter tip. In execution~,,the advertising will.be contemporary and innovative, in,line with the promised consumer benefit. Where appropriate,graphics will include Newport's traditional association with water. Copy will be vernacular, simple and believable.

Text Control

Highlight Text:

OCR Text Alignment:

Image Control

Image Rotation:

Image Size: