Product Design
Virginia Slims Ultra Thin
Abstract
Discusses the possibility of Philip Morris introducing an ultra slim Virginia Slims cigarette and delineates "where the greatest volume potential lies." Determines that Virginia Slims and B&W's Capri cigarettes are vying for the same niche market. Discusses the appeal of Capri, noting that "Capri triers are primarily drawn to Capri by its thinness, "connoting potential health benefit." Determines that the Capri and Virginia Slims customer profile parallel each other both "demographically and psychographically." Discusses ways that the Virginia Slims ultra thin cigarette could capture Capri's market share, possibly in the value/cost arena; includes market share information for generics and branded generics, particularly the "generics leaders," Doral and Cambridge. Notes, however, that Slims smokers tend to be more image oriented than price conscious. Compares demographic and psychographic profiles for the branded generics smoker and the Virginia Slims/Capri smoker. Discusses whether smokers were concerned that they were getting less tobacco/cigarette while paying full retail price.
Fields
- Hypothesis
- Introduction of new/unconventional productsResearch and development of novel nicotine delivery devices and experimental tobacco designs.
- Product design targets (women/minorities)Design changes targeting specific demographic segments such as women or minorities (slims/menthols/etc).
- Keyword
- Brand switching
- Flavor/ Taste (Attribute measure)
- Market (B&W marketing term)
- Named Organization
- Brown & Williamson Tobacco Corporation (B&W)Subsidiary of BAT U.S., located in Louisville, KY.
- Philip Morris Incorporated (Philip Morris U.S.A.) (a wholly-owned subsidiary of Philip Morris Co., Inc.)A wholly-owned subsidiary of Philip Morris Co., Inc.
- *R.J. Reynolds Tobacco Company (Cigarette manufacturer (Camel, Winston, Doral brands))Cigarette manufacturer (Camel, Winston, Doral brands)
- Subject
- marketing
- Target/Women (Target Groups)
- Brand
- Barclay
- Benson & Hedges (PM)
- Cambridge (PM)
- Camel (RJR)
- Capri (PM)
- Carlton (ATC)
- Doral (RJR)
- ELAN
- Eve
- GENERIC
- GENERIC
- Kent (Lorillard)
- Kool (BW (1933-2003)/RJR (2003-present))First Menthol cigarette line, released in 1933. Premium priced brand.
- MAGNUM
- Malibu
- Marlboro (PM)
- Merit (PM)
- More
- New/NPB
- Newport (Lorillard)
- Parliament (PM)
- Players (PM)
- Richland
- Salem (RJR)
- Satin
- Vantage (RJR)
- Virginia Slims (PM)
- Winston (RJR)
Document Images
VIRGINIA SLIMS
ULTRA THIN
10/21/88
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VIRGINIA SLIMS ULTRA THIN
PHILIP MORRIS IS CURRENTLY CONSIDERING INTRODUCING AN ULTRA THIN CIGARETTE. THE
PURPOSE OF THIS DOCUMENT IS TO DISCUSS WHERE THE GREATEST VOLUME POTENTIAL LIES FOR
A VIRGINIA SLIMS ULTRA THIN.
DISCUSSION POINTS
- ULTRA THIN CATEGORY (AKA CAPRI)
- ULTRA THIN TESTING
- ALTERNATIVES
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CAPRI BUSINESS SITUATION
0 CAPRI WAS INTRODUCED INTO TEST MARKET IN JANUARY 1987 BUT DID NOT ACHIEVE TOTAL
NATIONAL DISTRIBUTION UNTIL JUNE 1988.
0 CAPRI'S MONTHLY SHARE PEAKED IN JANUARY 1988 AT .82, DURING WAVE V OF ROLL OUT.
- FEBRUARY-APRIL SHARES FLUCTUATED DUE TO PAYBACK.
0 CAPRI'S SHARE INCREASES MAY-JULY WERE TIED TO GEOGRAPHIC EXPANSION.
- AUGUST SHARE DECREASE REFLECTS PAYBACK FROM FINAL ROLL-OUT LOAD.
0 CAPRI'S YTD NATIONAL SHARE HAS BEEN STABLE FOR Tin10 MONTHS AT .44.
CAPRI
MONTHLY SHARES: JANUARY - AUGUST 1988
JAN FEB MAR APR MAY JUN JUL AUG
1988 1988 1988 1988 1988 1988 1988 1988
REGION 1 0.64 0.16 0.13 0.29 0.42 0.48 0.55 0.33
REGION 2 0.60 0.14 0.16 0.26 0.60 0.36 0.47 0.42
REGION 3 0.36 0.18 0.26 0.41 0.38 0.57 0.73 0.44
REGION 4 0.97 0.28 0.16 0.31 0.37 0.52 0.76 0.46
REGION 5 1.31 0.54 0.23 0.49 0.42 0.62 0.61 0.46
REGION 6 1.15 0.65 0.14 0.25 0.26 0.67 0.59 0.42
REGION 7 1.02 0.59 0.42 0.71 0.51 0.76 0.65 0.68
TOTAL U.S. .82 .33 .21 .39 .43 .55 .62 .45
SOURCE: MSA
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CAPRI SWITCHING
0 21% OF CAPRI'S IN-SWITCHERS CAME FROM VIRGINIA SLIMS, WITH LIGHTS MOST SEVERELY
AFFECTED. HOWEVER, ONLY 9% OF LIGHTS LOSSES WENT TO CAPRI.
NEXT LARGEST CONTRIBUTOR TO CAPRI WAS SALEM, 13%.
1987 CAPRI SWITCHING
% GAINS
B&H
CARLTON
DoRAL
EVE
KENT
MARLBORO
MERIT
MORE
NEWPORT
PARLIAMENT
PLAYERS
SALEM
SATIN
VANTAGE
VIRGINIA SLIMS
WINSTON
NEw/NPB
MENTHOL
11%
0
6
6
6
0
0
0
6
0
0
28
0
0
22
0
17
TOTAL
10%
3
3
3
5
8
3
3
3
3
3
13
3
3
21
8
10
SOURCE: PM SWITCHING STUDY
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CAPRI DEMOGRAPHICS
0 DEMOGRAPHICALLY CAPRI AND VIRGINIA SLIMS HAVE SIMILAR CUSTOMER PROFILES
CAPRI
SKEWS 18-34
BETTER EDUCATED
$30M+ HHI
SKEW A,B, COUNTIES
REGION 5,7
VIRGINIA SLIMS
SKEWS 18-34
BETTER EDUCATED
$30M+ HHI
SKEW A COUNTY
REGION 3,5
SOURCE: 1988 TRACKING STUDY
0 CAPRI SMOKERS SEEM TO BE MORE VALUE DRIVE THAN PRODUCT LOYAL
- 31% OF CAPRI'S VOLUME WAS SOLD ON PROMOTION ACCORDING TO THE LAST COUPON
REDEMPTION REPORT.
- 4% OF VIRGINIA SLIMS VOLUME SOLD ON PROMOTION.
SOURCE: PM COUPON REPORT
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CAPRI PSYCHOGRAPHICS
0 NOT SURPRISINGLY, THE CAPRI SMOKER IS SIMILAR TO THE VIRGINIA SLIMS SMOKER
PSYCHOGRAPHICALLY.
CAPRI SMOKER DESCRIPTION
OF CAPRI WOMEN
ASPIRATIONAL
CLASSY
YOUNG
STYLISH
SUCCESSFUL
AGGRESSIVE
VIRGINIA SLIMS SMOKER DESCRIPTION
OF SLIMS WOMEN
ASPIRATIONAL
ATTRACTIVE
YOUNG
GLANIOROUs
INDEPENDENT
SOURCE: CAPRI IN-DEPTHS
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CAPRI PSYCHOGRAPHICS
0 CAPRI IS AN EVEN MORE FEMININE PROPOSITION THAN SLIMS. FEMININITY OF CAPRI
IS REINFORCED BY THE:
- PRODUCT THINNESS
- PACKAGE DESIGN
- PACKAGE GRAPHICS
0 CAPRI TRIERS ARE PRIMARILY DRAWN TO CAPRI BY THE PRODUCT'S THINNESS, BUT
OTHER REASONS FOR TRYING THE PRODUCT WERE ITS:
- LIGHT GOOD TASTE
- THINNESS, CONNOTING POTENTIAL HEALTH BENEFIT
- DESIGN OF PACK
0 ON THE OTHER HAND, THINNESS WAS GIVEN AS THE MAIN REASON FOR REJECTING THE
PRODUCT, NOT TASTE.
SOURCE: CAPRI IN-DEPTHS 4/13/87
CAPRI SUNIARY
0 CAPRI BUSINESS HAS STABILIZED AT .44 YTD AFTER THE SUMMER LOAD. SHARE IS
EXPECTED TO REMAIN STABLE UNTIL YEAR END LOAD, BECAUSE SHARE INCREASES HAVE
ONLY COME WITH GEOGRAPHIC EXPANSION.
0 THE ABILITY FOR CAPRI TO BUILD SHARE COULD DEPEND HEAVILY ON FUTURE
PROMOTIONAL SPENDING LEVELS AND B&W'S COMMITMENT TO PROMOTION FOR THE BRAND.
0 THE CAPRI AND VIRGINIA SLIMS CUSTOMER PROFILE PARALLEL EACH OTHER
DEMOGRAPHICALLY AND PSYCHOGRAPHICALLY.
0 CAPRI'S GAINS HAVE COST VIRGINIA SLIMS AN ESTIMATED .10 SHARE, PER SWITCHING
STUDY AND TEST MARKET STUDIES.
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ULTRA THIN TESTING
0 CAPRI'S STRONG HOLD ON THE ULTRA THIN CATEGORY HAS NOT SUCCESSFULLY BEEN
CHALLENGED TO DATE.
0 THE ORIGINAL ELAN CONCEPT (IMAGE, "ME T00') PURCHASE INTEREST SCORED BELOW
CAPRI.
0 ELAN ULTRA/L.S. SCORED BETTER THAN ORIGINAL ELAN BUT CAPRI STILL PRODUCED HIGHER
"DEFINITELY BUY' SCORE.
ELAN (ORIGINAL)
SLIMS COMPETITIVE
POSITIVE INTEREST 41 41
DEFINITELY BUY 10 11
PROBABLY BUY 31 30
ELAN ULTRA/L.S. CAPRI
SLIMS COMPETITIVE COMPETITIVE
47 46 50
20 19 25
27 27 25
0 RESEARCH SHOWS THAT INTEREST IN ELAN WAS DRIVEN IN PART BY THE VIRGINIA SLIMS
PARENTAGE. To MOST, THE VIRGINIA SLIMS NAME PROVIDED QUALITY ASSURANCE AND SENSE
OF FAMILIARITY.
0 BARCLAY DROPPED THEIR ULTRA THIN TEST PRODUCT AFTER 4 MONTHS ... SHARE TOPPED AT
.4-.5 (LOAD) THEN DECLINED TO .2 BEHIND STRONG PROMOTIONAL, MEDIA SUPPORT
0 WE BELIEVE RJR IS CURRENTLY INVESTIGATING ULTRA THIN.
SOURCE: 2/3/88 ELAN IN-DEPTHS
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ALTERNATIVES
0 ONE OPPORTUNITY NOT YET EXPLORED FOR THE ULTRA THIN IS A VALUE PROPOSITION.
0 BECAUSE A HIGH PERCENTAGE (APPROXIMATELY 31%) OF CAPRI'S VOLUME IS SOLD
PROMOTIONALLY, A VALUE PROPOSITION COULD PRESENT A REAL OPPORTUNITY TO TAKE
CAPRI'S SMOKERS.
0 Two VALUE OPTIONS EXIST:
- DECREASED COST
- VALUE ADDED
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