Tobacco Documents Online

BRANDED GENERIC MARKET STUDY LtitrttL1b L Presented: February 14, 1991

BACKGROUND TO THE RESEARCH • The cigarette industry is no longer based on one price strategy. • Starting with the introduction of black and white generics in 1981, the industry currently accommodates at least five different price points. • The reduced price segment has grown to roughly 20% of total industry business. • This segment is very much dominated by a category of brands classified as "branded generic." Stt TTLTb

SACKGROUND TO THE RESEARCH (CON'TI . Lorillard's interest in the branded generic category has grown as exemplified by marketing programs for Heritage, Style and Old Gold. • Lori!lard's interest in the branded generic category will undoubtedly expand with new brand introductions and with variations on existing plans for established brands. 6btit iL.i6

1986 Ot.-b'EtLC6 BRANDED GENERIC SHARE OF MARKET - HISTORICAL ANALYSIS - 1987 ® 1988 1989 SOURCE: MSA, 12 MONTHS ENDING DECEMBER 14.7 1990

r 1986 jfgtttLTb BRANDED GENERIC PERCENT OF VALUE CATEGORY - HISTORICAL ANALYSIS - 1987 1988 1989 SOURCE: MSA, 12 MONTHS ENDING DECEMBER 1990

r RESEARCH OBJECTNES • Conduct an in-depth analysis of the dynamics operating within the branded generic category. • Explore these dynamics in strongly developed areas of the country. • Determine if other factors aside from price are helping to legitimize the category. ZgtitlLTb

ACTIONABLE IMPLICATIaNS. .. Results would provide: • Detailed, up-to-date background on the branded generic market. • Direction on how a branded generic might be best positioned. grtTtLj6

RESEARCH METHODOLOGY This research was conducted among approximately 500 branded generic smokers, 18-64 years of age divided among the following tar/fiavor groups. - Lo-Fi non-menthol - Low Tar/ULT non-menthol - Low Tar menthol 200 random full price filter smokers were added to this sample to provide contrast. Interviewing was conducted between November 30 and December 17 in very highly developed branded generic markets with shares ranging between 20.5 and 29.4. - Mobile, AL - Ft. Smith, AR - Little Rock, AR - Pine Bluff, AR - Evansville, IN - Kansas City, KS - Lenexa, KS - Wichita, KS - Louisville, KY - Baton Rouge, LA - Springf:eld, MO - Oklahoma City, OK trr,ttttt6

BRANDED GENERiCS MARi« i S 9SfrTiLtb

BRANDS UNDER INVESTIGATIDN Bristol/Lights Cambridge/Lights Doral/Lights Pyramid/Lights Viceroy/Lights Alpine Lights Belair Lights ~ American Filters Bucks Magna Malibu Montclair Players Richland Sterling menthol only limited information: (awareness, trial, overall rating) qSttI Ltb