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( r c THE DEMOGRAPHICS, PSYCHOGRAPHICS AND, ACTIVITIES/INTERESTS OF TRUE SMOKERS, COMPETITIVE SMOKERS, AND SMOKERS IN GENERAL l ~ ~ Q N Ma Cp W 0 JuLY, 1986 PREPARED BY: DFS DORLAND # 68173 RESEARCH JC/cs

J Tv: From: Subjecr: r„rm r?" &r.r Dancer Fitzgerald Sample, Inc. Client Memo Andy Pasheluk Date: 7/21/86 Chris Nunes Analysis of True Sm okers Based on Simmons and Va1s Data As an aid to F'87 planning, this forwards an analysis of True smokers based on Simmons and Vals data recently completed by our Research Department. Background As part of F'87 planning, DFSD has completed an analysis of True and competitive smokers based on Simmons/Vals data designed to improve the targeting of media and promotion programs to key prospects next year. This information augm ents 1985 switching data which confirms that True's primary target audience for 1987 should remain the same as in 1985-86. The 1985 Simmons/Vals data base on line at DFSD was utilized for this analysis and includes 19,159 adult respondents (18+) who were interviewed from- August 1984 to June 1985. Demographic profiles based on Simmons data and Psychographic profiles based on crosstabs with the Vals segments have been provided for the following smoker groups: 1. Total Smokers 2. Heavy (30+ cig/day) vs. moderate (20-29 cig/day) vs., light smokers (10-19 cig/day) 3. Lo Fi vs. Low Tar vs. ULT smokers 4. True Smokers 5. Marlboro and Marlboro Lights smokers (opportunity target based on switching study) 6. Vantage, Merit and Benson & Hedges sm okers (com petitive Low Tar/ULT families) 7. Now, Carlton and Barclay Smokers (competitive ULT smokers)

, Page 2 IMPLICATIONS Overall, this analysis appears to provide support for exploring the following m arketing opportunities previously discussed!; 1. Tie-In Promotions: Simmons/Vals data indicates heavy smokers (30+ cig7day), including True smokers are heavy users of beer, wine and coffee. An opportunity exists to attract heavy smokers by pursuing tie-in promotions within these product categories. 2. Male-Oriented Promotions: Simmons indicates the bulk of heavy smo ers are m en. An opportunity exists to build incre- mental True volum e, which traditionally skews female, by targeting m ale-oriented promotions to heavy male smokers. 3. True Sweepstakes/Contests: The Simm ons data indicates True smokers generally enter contests and sweepstakes more frequently than competitive sm okers. An opportunity exists to reach True smokers in a unique way with travel-oriented contest/sweepstakes which tie into the "Journalist" cam paign. This suggests that the Overseas Press Shop promotion would appeal to True Smokers. 4. Adults 50+ - Simm~ons data indicates that over 35% of True smokers are in the 50+ age group, which is higher than Vantage, Merit, B&H, Carlton and Barclay. The Switching Study indicates a-similar level. An opportunity exists to broaden reach of the Parent True franchise by targeting specific publications' to this group (50 plus, etc.). 5. True Gold Franchise Study: analysis of Simmons/ Vals data indicates there are differences between low tar and' ULT smokers. Subsequently, it is conceivable that demographic/ psychographic differences will exist between True Gold'and Parent True smokers. The True Gold franchise study now in- progress should help better identify the differences between these two smoker groups. Andy, you will notice there are other implications highlighted in the analysis which are som ewhat more subjective and hypothetical in nature. For this reason, we have chosen not to highlight them here. However, we look forward to having your reaction to these areas as well. Best regards, qt!LLI CN/pr cc: J. Daghlian T. Bohan D. Cimine C. Boudreau K. Curren S. Strohm I. Weinblatt E. Meyer H. Westphalen M. Jeary B. Tucker S. Benson M. McDonald B. Lynch

TABLE OF CONTENTS PAGE NO. INTRODUCTION ........................................ 1 Background ....................................... 1 Purpose ........................................... 1 Method ........................................... 1 SUMMARY OF FINDINGS ................................. 2-5 CONCLUSIONS AND IMPLICATIONS ........................ 6 DETAILED FINDINGS ................................... 7-26 f I Total Smokers ............................... 7-12 II Heavy, Moderate and Light Smokers .......... 12-13 III Menthol and Non-Menthol Smokers ............ 14 IV Lo-Fi, Low Tar and ULT Smokers ............. 15-16 V True Smokers............................... 17-18 VI Marlboro and Marlboro Lights Smokers....... 19-20 VII Vantage, Merit and Benson & Hedges Smokers. 21-23 VIII Now, Carlton and Barclay Smokers ........... 24-26 c TABLES APPENDIX Descriptions of VALS Segmentation Procedure and VALS Types

c INTRODUCTION k ~. _.. ... ......~..,... ..-:~.,

-1- r t t E ( BACKGROUN'D In order to make effective marketing and media decisions for the True brand, the Agency utilizes all available sources of category, brand and user information. Last April, 1985 DFS' Dorl;and Research put together a brand profile analysis using Lorillard brand switching data which proved to be helpful in providing concise brand profile information. Another data source available to the Agency, but not yet fully utilized is Simmons/VALS. DFS Dorland Media uses Simmons data for media purposes, but the Agency has not utilized Simmons/VALS data for its demographic, product usage and attitudinal/lifestyle information which can provide a richer understanding of smokers in general, as well as brand users. PURPOSE The purpose of conducting this analysis is to... • gain a better understanding of smokers in general and by the amount and types of cigarettes smoked, e.g. lo-fi, low tar or ULT and menthol and non-menthol cigarettes. • develop a more comprehensive profile both demographically and psychographically of the True smoker in order to target our marketing efforts most effectively in 1987. • investigate the key similarities and differences between the True smoker and competition which could yield valuable marketing and promotional opportunities for the True brand, especially Marlboro which is a,.major source of business for the True brand as indicated in the June 1985 Brand Switching Study. This data may provide insights as to ways to approach Marlboro smokers through any specialized promotional efforts. METHOD The'1985 Simmons/VALS d'ata base, which is on line at DFS Dorland, includes 19,159 respondents and is projectable to the population. aged 18 years and older. A personal interview was conducted to obtain demographic information and a self-administered questionnaire was left with the respondent to record product and attitude data. The interviewing process for the entire sample was conducted from August, 1984 to June, 1985.

( SUMMARY OF FINDINGS c

-2- SLTMMARY OF FINDINGS I GENERAL SMOKING CATEGORY Smokers, in terms of their demographics, are equally male and female, tend to be younger to middle aged with about two-thirds of all smokers between the ages of 18 to 44 years and downscale in terms of education, employment and household income when compared to non-smokers. In terms of their psychographic profile, smokers represent a wide range of lifestyles from the very affluent Achiever segment to the lower socio-economic Sustainer group. And while psychographically smokers are, overall, similar to the population as a whole, smokers have a somewhat higher concentration of Emulators and Sustainers' lifestyles than do non-smokers. There are some differences in the profiles of the heavier versus lighter smoker. The heavier smoker tends to be ritore male, middle aged with higher household incomes. The heavier smoker profile also has a higher concentration of Achievers (24%), hard-driving~ individuals who are affluent and successful. Heavier smokers also are the heaviest consumers of coffee. In contrast, lighter smokers tend to be more female, either very young or old with lower household incomes. TAR LEVEL The most pronounced profile differences, however, are noted by tar level categories. Lo-fi smokers, on one extreme, have a young, male, downscale profile. In contrast, the ultra low tar smokers' profile is to the other extreme skewing older, more female and more educated and upscale. The low tar smoker profile is more moderate falling in between lo-fi and ultra low tar profiles. Low tar smokers are equally male and female and young, to middle ages. These three profiles are briefly summarized below. Lo-fi smokers: • Slightly more male (56%) • Younger with over half under age 35 Downscale in terms of education and! incomes • High concentration of Sustainers (19%), Emulators (16%) - and a sizable proportion of Belongers (30%) • Least active overall, but interested in hunting, fishing • and motorcycling. Heavy consumption of beer

-3- Low Low Tar Smokers: • Equally male and female . Young to middle age • Downscale in terms of education and household incomes, but better educated with higher household incomes than lo-fi smokers. • High concentration of Emulators (14%) and sizable proportion of Belongers (35%) with some Achievers (19%) • Overall, average in activities, but more involved than lo-fi smokers • Above average consumption of beer, coffee and liquor Ultra Low Tar Smokers: • Skews more female (61%) • Older • More upscale in terms of education, occupation, household incomes • Skews A/B Counties; Metro Central City • High concentration of Achievers (27%), Societally Conscious (14%) and sizable proportion of Belongers (30%) ~ • Much more active indexing above average on most activities/ hobbies, sports attendance, domestic and foreign travel. 9 Heavy consumption of coffee, liquor, and wine

TRUE SMOKER PROFILE Overall, True Smokers are representative of the ULT category in terms of demographics and lifestyle. Like other ULT smokers, True smokers are... r • more female (61%) • older with 60% between the ages of 35 and 65, • better educated, • with higher household incomes. The only notable demographic characteristic is that True smokers are more concentrated in the Northeast and less in the West versus the ULT category in general and the population as a whole. .Psychographically, the True profile consists of a substantial number of Belongers (36%), the middle class, traditional value group, Achievers (23%), hard driving, successful, affluent individuals, and an above average number of Experientials (14%), who are attracted to what is new, different and unusual. It is interesting to note this concentration of Experientials among the True franchise. We can hypothesize that Experientials may be attracted by True's unique laser cut filter. Product usage and leisure activities of True smokers were investigated to explore possible product tie-ins and promotional ideas. This analysis reveals that True Smokers appear to be fairly out-going and active with above average interest in community affairs, live theater, classical concerts and foreign and d'omestic travel. However, participation in sporting activities or sports attendance is fairly low due to the female skew of the True franchise. True smokers are more apt to have hobbies like gardening or cards. They also tend to buy state lottery tickets and enter contests and sweepstakes. Consumption of distilled liquor, wine, beer and coffee is fairly high.