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PHILIP MORRIS BATTISTONI CREATIVE PRESENTATION

t PHILIP MORRIS BATTISTONI CREATIVE PRESENTATION March 15, 1991 New York, New York

?at PHILIP MORRIS BATTISTONI CREATIVE PRESENTATION a March 15, 1991 Plb New York New York CA , I I

PHILIP MORRIS USA THE BIG OPPORTIINITY ON THE AMERICAN MARKET I I I i I I I I I I Cigarette marketers have overlooked a major opportunity on the American market: young adults in their twenties. There are currently 48 million people between 18 and 29. Numerically, this "baby bust" is much smaller than the baby boom, but constitutes an important generation that cigarette marketers--like others have overlooked. Ask people of this generation--as we have--if cigarette advertising is targeted at them, and they feel none are, except possibly Camel. An informal survey of fifteen twentysomething smokers yielded the following consensus on who these brands were for: Marlboro Virginia Slims Benson & Hedges Camel Kent Merit Salem Kool Newport Winston everybody/nobody in particular middle age never-beens yuppies young adults yuppies older people blacks blacks yuppies, blacks older people Among this group, there is a clear lack of any "brand empathy" except possibly to Camel. Even Marlboro, their preferred brand, is chosen by default; all the other brands emitted signals that the twentysomethings did not see as appropriate to themselves. I

t THE AMERICAN CIGARETTE MARKET THE CAMEL KIND OF THREAT I I I I I The Smooth Character--a.k.a. el Tipo Suave--is apparently very successful in attracting young adults that Philip Morris might otherwise have attracted. Camel's success cautions that other competitive brands may strike where Marlboro is weakest--among the young adults that Marlboro needs to sustain sales growth. Camel's example indicates that Philip Morris needs to win back Camel smokers now, so that as they remain brand loyal through life, the ensuing sales benefit does not accrue to RJR. ~ 0 0 c'i'rt ~ I X I

t THE TWENTYSOMETHING GENERATION ATTITUDES & LIFESTYLE I I I I I I I i A recent study showed that young adults spent 24 hours out of every week listening to music. To understand the values of this generation, it is essential to understand its music and the attitudes it reflects and instills. A good place to start is Madonna, whose appeal centers on men and women in their twenties; she has exceeded all other recording artists in sales to this group. Despite her myriad changes in look and image, and the complexity of the controversies she has provoked, the basis of her appeal is simple and constant. "I'm the boss around here," is her signature self- assertion, and regardless of the pleasure she chooses- -frilly feminine submission, sadomasochism, lesbian homoeroticism or sex-pot blondness--the choice is hers, and she is admired for it, and for her expression of it; the Chancellor of Boston University recently devoted a graduation ceremony to a diatribe against what he saw as the unabashed self-interest of young adults. What prompted his lecture: a graduating student told him that he admired Madonna more than anyone else because, "she can do what she wants." ] N N I I

t YOUNG ADULTS THE QIIEST FOR CONTROL Indeed, this sense of entitlement to control one's world goes well beyond Madonna and other pop stars. In a CNN poll, 58% of this generation agrees that "there is no point in staying in a job unless you are completely satisfied." As expressed by more than one pop star, common sense should tell you that if you don't take care of your own happiness, no one else will. In a Roper Organization survey, the baby bust asked what it wanted most from work: rapid advancement--read control--topped the list, followed by "happiness" concerns such as time off, with salary in sixth place. I I I i d ! W O 9 0 ~ C I

t YOIING ADULTS DISILLUSION WITH MATERIAL STATUS I I I I I I I In a key difference from the values of the preceding generation, money, per se, is not deemed an appropriate object of existence. In a report from the William Grant Foundation, the baby bust's financial prospects, in real dollar terms, are 25% worse than the generation that preceded it, a notion not lost on young adults. In spite of the usual optimism of youth, 65% see their material future as worse than the preceding generation's. ~ { ~a 0 w 0 a ( o I m N I

t YOUNG ADULTS LOOKING ELSEWHERE FOR FULFILLMENT I I I I This sense of futility regarding likelihood of financial success helps explain several key phenomena among young adults. Instead of focusing on income, they tend to look elsewhere for the opportunity to control their world. This generation is behind such social action groups as Act Up and Greenpeace, whose narrowly focused goals and pragmatic agendas satisfy their members' need for accomplishment. It is also a generation that places leisure ahead of work, with an emphasis on travel and seeing the world; CNN reports 60% of the twentysomethings intend to travel extensively. Dimmed financial hopes also manifest themselves in resentment--call it envy, perhaps--towards yuppieism. Status symbols of the 1980's have fallen far from favor, perhaps as the result of this generation's antipathy towards the icons of money: BMW's, Ralph Lauren apparel--or anything with a designer logo emblazoned on it, Rolexes and Godiva are dismissed as "pretentious," perhaps the ultimate pejorative for this generation. This generation, even were its circumstances different, is not at the point where it wishes to signal to others its arrival or accomplishments. 0 ~ 4~-h 0 m I

YOUNG ADULTS PROUD OF WORLDLINESS I I I I I I I Nevertheless, this generation prides itself on "knowing better," and members demonstrate coming of age by asserting their world-wise savvy. Political cynicism, aggressive anti-politician apathy, a predilection to shock with truthful bluntness (Madonna, Andrew Dice Clay, Howard Stern) , blithe acceptance of advertising for what it is all characterize this generation. When it comes to consuming, the desire to show off sophistication is perhaps even stronger than the baby boomers'.