Product Design
Analysis of 100mm Cigarette Popularity in the West/Southwest.
Abstract
Strategic research report analyzing the popularity of 100mm cigarettes in Western and Southwestern USA. Concludes that the perception of 100's is both female and classy, and these images are likely to contribute to the above-average development among female smokers. States that the implication of such conclusions is that brand family considerations should come first in marketing strategy. Includes charts displaying the share of market of 100's/120's by sex within particular regions, the major user image associations with 100's, and top and bottom seven Winston regions in the USA.
Fields
- Author
- Whaley, Joan (RJR Marketing Research)
- Nordine, Richard C. (RJR Marketing Development)
- Recipient
- D.G. Fought
- Hall, Lawrence W., Jr. (RJR Marketing)Worked for RJR Tobacco Co. as a Sales Representative, MR Analyst from 1968- , Director of Marketing Development in 1980, Vice President of Brands Marketing in 1981, Vice President of Marketing Development in 1982, and for RJR International Inc. from 1977-1980. (Source: RJR Who's Who NMLRP)
- Kampe, Richard A. (President, RJR Tobacco Development Co.)Director for RJR Tobacco Co. 1987-1989, President for RJR Tobacco Development Co. 1987-1989, and Executive Vice President of Strategy & External Relations in 1989. (Source: R. J. Reynolds Summary - RJR Liability Notebook)
- *Lees, H.J. (use Lees, Harry J.)RJR, Employee Marketing[NM #43112]
- M.G. McAllister
- McKenna, Gerald W. (RJR Sales Promotion & Material Logistics VP 1994)Defense
- Monahan, Ellen N. (RJR, VP of Planning , 1987-89)
- Moore, Jerry R. (RJR Marketing & Development)
- Orlowsky, Martin L (LOR CEO (1997-present); RJR Sr. VP of Marketing (1985))M. L. Orlowsky was Senior Vice President of Marketing for RJR in 1985 and Executive Vice President of Marketing & Sales for RJR in 1986. (Source: R. J. Reynolds Summary - RJR Liability Notebook). Martin L. Orlowsky worked for RJR Tobacco Co. as Media Director in 1977, Director of Marketing Services in 1980, Group Director of Marketing Services in 1982, and Vice President of Brand Marketing from 1982 to the present. (Source: RJR Who's Who NMLRP)
- Osmon, Herbert E. (RJR, TI Communications)Director for RJR Tobacco Co. in 1987, Staff Vice President of External Affairs for RJR Tobacco Development Co. 1988-1989, and Staff Vice President of Public Policy in 1994.
- Mr. E.J. Packelman
- Mr. G. Novak
- Hypothesis
- Behavior TargetingCigarette's effect of enhancing/mitigating specific behaviors
- Keyword
- Behavior targeting
- Brand Specifications
- Market (B&W marketing term)
- Consumer acceptability (Consumer preference)
- Cost savings (Cost reduction)
- Named Organization
- *R.J. Reynolds Tobacco Company (Cigarette manufacturer (Camel, Winston, Doral brands))Cigarette manufacturer (Camel, Winston, Doral brands)
- National Family Opinion Research panel (outside marketing research group for RJR)
- Master Tobacco Settlement Agreement
- Brand
- Camel (RJR)
- Winston (RJR)
- Marlboro (PM)
- More
- *VIRGINIA SLIM
- Saratoga
- Eve
- Silva Thins
- Winston 100
- WINSTON KING SIZE
- Winston Lights 100
- Winston KS
- Winston Lights 85
- Marlboro 100
- Subject
- brand loyalty
- brand image
- Length (Design)
- marketing strategy
Document Images
rONFII)ENTIAL
S-1 RATEGiC RESEARCH
REPORT
FEBRUARY 9, 1982
ANALYSIS OF 100NM CIGARETTE POPULARITY
I N THE WEST/SOUTHWEST
LY: ' MS,-..JOAiV WHALEY
I'UBLISHED BY TIIE 1t:1RKETIIG DF1'ELOf'MEtiT DEa'ARl',ti1ENT
R.J. REY\OLDS TOIiACCO COMPANI", Wi\STO\-SALEM, N.C. 27102
:.T Fo..., 7iAg - ..'Cf
i
(~{L~ ~'JY
.
February 9, 1982
TO: Messrs. D. G. Fought
L.
R.
H.
14. W.
A.
J.
G. Hall, Jr.
Kamne
Lees
McAllister
Ms. G.
E.
~. W.
N.
R. McKenna
2Ionahan
Moore
M.
H. L.
E. Orlowsky
Osmon
FROM: Mr. R. C. Nordine
SUBJECT: ANALYSIS OF 100MM POPULARITY IN THE WEST/SOUTHiJEST
The attached report, "Analysis of 100mm Popularity In The
West/Southwest," integrates our learning related to various
factors which contribute to the succe5s of 100mm brand styles
in the West/Southwest.
If you have any comment:i or questions, please advise.
5)~c'F-&
Richard C. Nordine
RCN:ls
cc: Mr. E. J. Fackelman
Mr. G. Novak
Attachment
EYl?CUTIVE SUl"tPtARY
Analysis__Of 10-0mm Ciqarette Ponularitv In The West/Southwest
The purpos.e of this report is to identifv the factors which
contr-ibute to the greater-than-natio-nal success of 100's in the
West/Southwest. The type of information revi-ewed includes: male
and female preferences, perceptions of 100's, performance of
different-types of-brands and the influence of brand family
versus length.
KEY CONCLUSIONS:
1. The above-average development of 100's in the West/Southwest
is due to an appeal which is broad in scope. Both female and'
male smokers are more likely to select 100's than are their
counterparts in the rest of the country. And the greater.
appeal of longer cigarette's-is not limited to certain types
of brands -- both "Stylish" and "Virile" types of 100's enjoy
above-average popularity in this area.,
2. The cause of the broader-scope appeal appears to be a two-
fold difference in the perceptions of 100's among smokers in
this area versus the balance of the U.S.
The perception of 100's as being "female" and "classy/
stylish" is held by an even greater proportion of smokers
than is found elsewhere. These images are likely to
contribute to the above-average development among female
smokers. For some men, the more prevalent "classy/
stylish" image may be a contributing factor in selecting
100's.
Male-oriented imagery is highly associated with 85's in
the West/Southwest as it is in the rest of the U.S. How-
ever, the extent of "male"' associations with 100's here is
sufficiently greater to play a part i:: t~~ m^re widespread
~~~ ~~
acceptance of these products among men.
3.' Brand name, not length, is clearly the key determinant in
smokers' choice in the West/Southwest (as it is elsewhere)
despite the popular-ityy of the longer configuration. How well
a brand family's 100mm styles perform in these markets is a
function of how well the brand family performs. Therefore, a
market with a high 100mm CDI does not necessarily represent
an opportunity for a specific brand family.
IPiPLICATIONS :
1. The identification of opportunity markets for a specific
style of a brand should consider first the potential leverage
of the brand familv in question and, second, the opportunity
for a given style.
2. In addres~`_~Ting a brand style opportunity, brand family consi-
derations should come first. Overall, tactical activities to
improve a 100mm style's position in key market areas should
be executed in the same context as the brand family's nation-
al marketing program.
.
J
ANALYSIS OF 100MM POPULARITY IN THE WEST/SOUTHWEST
BACKGROUND
Analyses-of sales data-have shown that 100mm cigarettes are more
popular in the West, Southwest and in Florida than they are
nationally. Brand Development Iridices (BDIs) for these areas
show that the popularity of 100's affects every brand family --
that is, the index for 100mm styles is greater than the index for
85mm styles-for every brand family.
These findings generated a number of questions:
A. Is the greater popularity--of 100's in these areas attribut-
able to both female and male smokers?
B. Are 100's preferred by a larger proportion of smokers because
longer cigarette"s are perceived differently in these areas?
C. Do the higher BDIs for 100's versus 85's for all brand
families suggest that length is the key choice determinant,
not brand family?
D. Do these market areas represent a significant opportunity for
the less-well-developed 100mm styles of RJR brand families?
1. Should these styles be supported by greater and/or -
different marketing efforts versus other areas of the
U.S.?
2. Are RJR 100's brand styles-competitive with regard to
product acceptability in the low-humidity Southwest
environment? .
Questions A, C and D have already been addressed in several memos
and reports. This report will review the key points from these
earlier documents and will address the remaining,question (B)
regarding consumers_ -perceptions of 100mm cigarettes.
ANALYSIS
A. Popularity of 100's/120's With Male And Female Smokers
The following table shows that longer cigarettes are more
popular with women and men in the two key Census Regions
studied.*
*WSC = Tex-Zrt-, Oklahoma, Louisiana, Arkansas
Pacific = California, Oregon and Washington
S-hare Of Market Of 100's/120's
'
Group
~ Total Smokers 41.7
Males 28.4
Females 55.5
Source: NFO Fall,'1980
51.8
38.1
67.7
Pacif ic
46.4
32.7
59.5
All types of 100/120mm brands perform better among both males
and females in the strong 100/120mm regions. Shown below are
the sex and regional penetration of "Virile" 100's -- CAMEL,
WINSTON, and Marlboro -- as well as "Stylish" 100/120's --
MORE, Virginia Slims, Saratoga, Eve, and Silva Thins.
SOM Of "Virile" 100's By Sex Within Region
Group Total
U. S.
WSC
Pacific
Total Smokers 7.0 10.9 8.0
Males 6.3 10.9 7.7
Females 7.6 11.2 8.5
"Virile": CAMEL,
Source: NFO Fall, WINSTON,
1980 Marlboro
SOM Of "Stylish" 100's/120's Bv Sex U7ithin Reaion
Total
Group U. S.
Total Smokers - 1 . 6.2
Males 2.2
Females 9.9
Sex Within Reqion
Total '
U. S. WSC
WSC
2.9
12.0
Pacific
9.2
4.0
13.8
"Stylish": MORE, Virginia Slims, Saratoga, Eve, Sil'va Thins
Source: NFO Fall, 1980
B: Perceptions Of 100mm Ciqarettes
+ "Perceptions Amonq'Smokers In General
An'intensiv(~ two-year program of.qualitative research
provided considerable insight as to perceptions of 100mm
cigarettes. The following five key aspects were identified:
The appearance of the cigarette which conveys impressions
of being more feminine, graceful and more sophisticated
than shorter cigatettes
More value for the money
Milder, less harsh taste perceptions
Lower tar perceptions ,__
© Stylish and upscale package image
In the Fall of 1981, a quantitative study of smokers' per-
ceptions of 100's versus 85's was conducted. Although some
product imagery was included, the main emphasis of the study
was to determine user imagery associations. The results show
that the user image associated with the 100mm cigarette
configuration contains two key elements -- FEtiALE and CLASS.
("Class" here encompasses either or both socio-economic
status and stylishness.) A relationship with the FEMALE
and/or CLASS elements can been seen in every image in the
following table. All of the images listed are highly associ-
ated with 100's (versus 85's) by smokers of 85's and 100's,-
male and female smokers and younger and older smokers.
100mm - Major User Image Associations
Occupation
Fashion Model
Actress
Secretary
Career Woman
Homemaker ___
Ca rs
Cadillac
tiercedes
Jaguar
Tvpe Of Person Clothes
Stylish Latest Styles
Sophisticated Tuxedo
High Class
Distinctive
Elegant
Graceful
Woman Wi th Sex Appeal
Delicate, Soft, Feminine
.
"Stron.grtaste" and "hot." product imagery are highly
unassociat-ed with 100mm products. -
P.erceptions-Among Smokers In The West/Southwest
The study discussed above was analyzed tcs,determine percep-
tions_ of 100,mffciga.rettes among smokers in the West/Southwest.
Since both women and men in"this area are more likely to
prefer 100's, it is reasonable to expect some differences in
perceptions -- in either the.nature of the imagery or the
degree or both.
Results~show that differences do exist and that they are dif-
ferences in degree. Smokers in the West/Southwest agree with
smokers in other parts of the U.S. as to the nature of the
images they associate highly with 100's. The list below is
exactly the same as the one shown earlier. However, ari even*
larger proportion of West/Southwest smokers associate.a number
of the images with 100s (items asterisked). Since both these
FEMALE and CLASS-connotations are likely to appeal to women,
the fact that such perceptions are more widely held helps to
explain the greater popularity of 100's among women in the
West/Southwest.
100mm -- ;lajor User Image Associations
Among West/Southwest Smokers
Occupation
Fashion Model
*Actress
Secretary
*Career Women
Homemaker
Type Of Person
Cars
*Cadillac
Mercedes
Jaguar
Clothes
*Stylish *Latest Styles
Sophisticated Tuxedo
High Class
Distinct-ive
*Elegant
Graceful
*Woman With Sex Appeal
Delicate, Soft, Feminine
To the extent that some men select 100's for the "classy and
stylish" associations, the more prevalent perceptions of
these qualities are likely to account for some portion of
100's greater West/Southwest popularity among men. In ad-
dition, there is evidence that smokers in this part of the
country find it more acceptable for men to smoke 100mm ciga-
rettesy---As a group,~ they do not highly associate any of the
images listed below with 100's (they associate them with
85's). However, significantly more West/Southwest smokers do
-4-
make male=oriented associations (occupation, independent and
."real',' cigarette connotations) than do smokers-in ot-her areas
4
of the U.S.
Associated With 100mm More In West/Southwest
Than In Balance Of U.S.
How well a brand family's 100's perform in a market is a
function of how well the brand family performs in the market.
How popular the 100mm category is plays a very limited role.
The following two tables, in which WINSTON is used as an
example, demonstrate that brand family, not length, is the
key choice determinant. The.first table shows the BDI's of
each WINSTON stylL~, in the brand's top seven regions; the
second table-shows compara-ble information for WINSTON's
bottom seven regions.
Top Seven WINSTON Reqions
BDI For WINSTON CDI
Reqion Total King 100 Lts 85 Lts 100 100/120
Birmingham 149 143 160 150 162 104
Atlanta 148 147 143 162 142 98
~
Winston-Salem 142 144 123 161 130 90 0
Louisville 141 151 114 149 114 83 . u,
v
LittleJ-Rock 130 114 153 1.40 163 114 ~
Cincinnati 124 127 114 131 111 89 co
~
New Orleans 120 121 132 112 107 108 0
co
Source: MSA, 1980
Occupation - _ Type Of Person
Wealthy, Powerful Businessman Independent
Policeman Fun Loving
Politician
Musician Cigarette Characteristic
Sales Clerk
Student Authentic
Regular, Standard Type
In summary, the more widely held perceptions in the West/
Southwest of the 100mm configuration as both female and as
classy/stylish plus the apparently greater "permission" for
men to smoke these products have contributed to the relative-
ly greater popularity of 100's in these areas.
C. Brand Family Versus Length As Key Choice Determinant
It was noted earlier that all brand families in the top 100mm
markets have a much stronger development (BDI) in their 100mm
styles than in their 85's. This fact merely means that the._
reasons for smoker selection of 100's in these areas apply to
all brand families. It does not mean that these smokers
place more importance on length-than they do on brand name.
Bottom Seven WINSTON Reqions
BDI For WINSTON CDI
Region Total King 100 Lts 85 Lts 100 100/120
New-York 56 74 40 31 22 78
San Francisc
o 69 69 78 65 69 111
Los _
A-ngeles -- 70 72 84 49 72 128
New Jersey 71 $5 60 51 44 82
Philadelphia 76 85 72 62 53 80
Riverside 78 80 92 61 82 119
Minneapolis 80 73 65 109 92 89
Source:' MSA, 1980
The WINSTON example is typical of all brand families. If a
brand family is strong in a given region, then every style
does well. Conversely, if the brand family is poorly devel-
oped, then so is each style. The basic marketing issue in
every market relates to every style -- first and foremost,
smokers choose (or choose not) to smoke WINSTON 100 for the
same reasons they choose (or choose not) to smoke WINSTON 85
-- it is the appeal of the family as a whole.
D. Maximizing Performance Of 100mm Styles Of RJR Brand Families
1. Brand Family Considerations
As was seen above, a market that has high 100mm CDI is
not necessarily an opportunity market for a particular
100mm brand style. Opportunity analyses for brand styles
should consider first the potential leverage of the brand
famil in question andthen the opportunity for a given
st~
In addressing a brand style opportunity, as well as in
identifying one, brand family considerations should come
first. Overall, tactical activities to improve a 100mm
styles postioxi among 100's smokers in key market areas
should tre- executed in-the same context as the brand
family's national marketing program, e.g., it would not
be advisable to try to increase the degree to which a
brand's 100mm style is perceived as "female", if the
overall family is positioned as "male". ,
2. -Produc-t AcceptabilitY
-Since-RJR brands tend to benefit less than other brands
from the popularity of 100's in the West/Southwest, it
appeared possible that product quality.suffers from the
low-humidity environment and places the Company's 100's
at a competitive disadvantage. As arr initial step in
investigating-this possibility, a product acceptability
study was conducted on WINSTON 100's.
This study foundthat the WINSTON 100 product loses to
Marlboro 100 not because WINSTON is adversely affected by
aging but because Marlboro improves with age.
Specifically:
o Aged (2 1/2 months) WINSTON 100 achieved' a~ rity with
fresh (4 weeks) WINSTON 100
o Aged Marlboro 100 beat fresh Marlboro 100
e Fresh WINSTON 100 was at parity with fresh
100
o Aged WINSTON 100 lost to aged Marlboro 100
Marlboro
Due to the unusual nature of the findings (Marlboro
improved with age), it would seem advisable to conduct
further research on the relationship between product
quality and low-humidity before any major decisions are
made.
