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Marketing T O: Hispanic S0 okefs A Feasibility From A ' ;~base Pers~.ctive ~~ . &2Ql94 Q8L£Q8Iti0H f :. LI:OMllHNl: i"1'

Table of Contents Background I -: Analytic Objective Definition of Hispanics Net Findings: o Summary of Analysis Appendix • Profiles of Hispanic Smokers on the Database • Profiles of Hispanic/Non-Hispanic Direct Mail Responders • Brand Direct Mail Responder Profiles • Mailing/Response Overview 2 98L888It0z

Background • The -Hispanic population is currently 10% of the U.S.. population (22MM). - 6.5% of total U.S.. households. - Growing faster than any other ethnic group (71% growth since 1980). - Census Bureau predicts Hispanics will outnumber African Americans by 2010. • Approximately 17.2% of Hispanics are smokers. - Smoke an average of 13.2 sticks/day . Source: Strategy Research Corporation 1992 Donnelley Marketing Information Services 1990 3 L8LEB8Tti0Z N

Background • An issue exists regarding what language is the most effective for communicating to Hispanic smokers. - While Hispanics may be responding to English response vehicles, they may prefer/be more receptive to Spanish language vehicles. 4 88L~88tb4~ 61

Background Hispanic Smoker Efforts To Date • Name Gen. efforts have been in place to capture Hispanic smokers; however, relatively little has been done in Spanish language. - MAT VAN, Racing/Community Events and one Corporate Name Gen. effort offered Spanish language response device. - Have been successful in generating names/response. • In 1994, Spanish language materials are being incorporated in programs. - Marlboro Country Store (POS, Catalog, ROP Ad, 800#) - Marlboro Racing (Ad) 5 68LE88TV0Z

Analytic Objective What We Want To Learn • Are' Hispanic smokers on the Database similar to the general Hispanic market? • Do Hispanic smokers respond similarly to non- Hispanics on the Database? • Where do we go,from here? s OE.LE88 tti07

Definition of Hispanics • For purposes of this analysis, we are defining Hispanics as those smokers who have: - Indicated Hispanic on survey ethnicity question. -OR- - Been identified as a Hispanic via surname overlay on the Database. -OR- - Responded to a Spanish language response device or Spanish magazine. 7 I6LE88ItrOZ

Net Findings • Hispanics on the Database, including Direct Mail responders,,pre representative of the Hispanic market, overall. - Demographic/geographic. • Hispanics, respond at high rates, particularly among YAMS and Spanish Speaking Hispanics. Therefore, it is feasible to market directly to them. a -~nglish Speaking Hispanics are being included in current programs and are responding at almost the same rate as Non- HiVanacs (35% vs. 39%). o -- Spanish Speaking Hispanics are included in current programs to ao Iesser degree but are very responsive (67%). However, due to the small size of. Spanish Speaking Hispanics on the Database, it would not be cost effective to generate separate Spanish language programs or versions of programs at this time. 8 Z6LE88itrOZ

Net Findings • Opportunity-exists to: '~ Increase size of file (via existing name generation efforts). 4 »: Particularly via Marlboro and B&H programs. ~ Gain more learning. » » » » Best language for communications. Whether Spanish language can increase response rates among English Speaking Hispanics. How to reinforce loyalty without subsidizing purchase to this already high-loyal group. Impact on response from direct translation of existing materials vs. Hispanic oriented creative. 9 sbcseatvoZ

Summary of Analysis tr6LMTtr0O