Tobacco Documents Online

2 SUMMARY The Market 1. Hawaii is not one market, but a multitude of heterogenoue sub:narkets. Therefore, 2. it is often impossible to arrive at generalizations or to note specific patterns. It is difficult to obtain meaningful "reason why" information from the local population because: Orientals donft commit themselves, for,fear of offending. Polynesians are relatively inarticulate concerning motivations. Filipinos have difficulties expressing abstract ideas in English. Brand Preference Studies 3. I have obtained in Honolulu a special tabulation of data heretofore not available: cigarette "usage in the home" in Oahu, 1966, by income, education, and occupation, within ethnic group. Results will be forwarded, as soon as the IBM runs are pro- cessed by our Research Department. 4. The Hawaiian Newspaper Agency has not included the category of cigarettes in their new annual brand preference study. I have prevailed upon them to include the cigarette category in all survey work to be conducted after this summer. Smoking Patterns (Conclusions Based On Personal Observations) 5. Observed smoking incidence was high, particularly among the younger adults. 6. Observed cigarette brand loyalty, and exclusive devotion to a single brands appear lower than on the mainland. Exception: the two population groups in which Kool is strong (see #9 and #10 below). 7. Preference for menthols is relatively high. Preference for menthols, and especially for Kool peaks among these groups: Low income/education Young smokers Persons who work, or stay outdoors (in the heat) Heavy smokers Men 8. SALEM9s share of the menthol business appears somewhat better than average among: Middle and upper income Caucasians and Filipinos People who work in air-conditioned offices and stores Women Moderate smokers Older smokers 9. Koolts strength is very high among the laboring class. I believe this is probably strongly related to constant exposure to the heat. Also, there may be a tendency to 5 equate Kool with strength and masculinity; marq of the Kool smokers among laborers ~ had switched to the brand from a non-filter cigarette. v 10 ,:~j

3 10. Koo1QS share among young adult smokers is incredibly high -- probably some 70% of all brands. Kool is the "in" brand with this group. 11. Awareness of cigarette advertising in Hawaii is very low. Most smokers were unable to verbalize even the advertising of the brand they were smoking. Point Of Purchase 12. Probably because of their high rate of sales, Kool often has more facings in vend- ing machines and in supermarkets than SALEM. 13. At present, the Kool/SALEM ratio of posters in store windows is about even. How- ever, Mr. Savage states that he is about to lose the poster war, since his poster allotment for SALEM has been curtailed. Media 14. Mr. Savage would like to get back on Japanese language radio. I found that the younger generation of Nisei smokers cantt, or don't care to speak Japanese. 15• Mr. Savage strongly recommends promotion efforts in bowling, using such vehicles as sWep-bars, bowling programs, etc. It may well be advisable to explore the re- lative economics of the bowling media. 16. Comuunity Club Awards: Not as important as some people think, though undoubtedly soffion,rhat helpful to Kool. Mr. Savage would like us to get into the Hilo avail- abilityo However, he agreed with me that it might be more beneficial for us to have Kool disbarred from the program on Oahu, if that were possible. I believe this is possible on the basis that certain rules are followed pro-forma but not in fact. Copz 17• The "m,ainlandff art and copy of SALEM advertising does not appear to have any negative impact on the Hawaiian population, and is better remembered than other, cigarette advertising. 18. However, the national campaign might be notably strengthened and made more m"n- ingful by using local motifs in print and radio. Mr. Savage very much recommsnds such an approach. Product 19. In discussing with Mr. Savage the possibility of developing a more strongly menthol- ated SALEM formulation for the Hawaiian market, I asked him if that eventuality were to occur, whether it would be advisable to market only the modified product, or to sell both formulations side by side. Mr. Savage recommends the latter strategy.

4 DETAILED REPcRT The Market 1. One of the "old hands" with whom I talked early on sW visit, said: "No one can figure this market; nothing makes sense and nothing hangs together." After talking to hundreds of people on Oahu, I was ready to agree that it is not easy to obtain meaningful information and to arrive at generalizations appliable to the entire area. 2. Hawaii is not one market, but a multitude of beterogenous submarkets. Therefore, it is often impossible to arrive at generalizations or to+note specific patterns. Behavior patterns are shaped not only by the usual socio-econcmdc differences, but additionally by ethnic differences, and by variant degrees of acculturation. For example, a third generation Nisei often does not understand Japanese, whereas his parents speak that language; he tends to be better educated than his father, work- ing in an office, whereas his father is working with his hands; he behaves somewhat, yet not exactly, like an island-native, middle class Caucasian. 3. It is difficult to obtain "reason why" information from the local population. a. Orientals - although quite articulate, they work very hard at being non-comaittal, for fear of offending you. When they think they know what you are after, then they will tell you what they think you want to hear. A typical discussion goes somewhat like this: Observer: What brand of cigarettes are you now smoking? Oriental: SATM Observer: Do you usually smoke only SALR24 or do you some- times smoke other brands? Oriental: (trying to cover all bases) Sometimea I smoke Belair, and Spring, and Xarlboro, and Ladol menthol, and Pall Mall menthol. Observer: Do you ever smoke Kool? Oriental: I smoke Kool all the time, it*s-the best brand on the market. b. Polynesians (Hawaiian, and Hawaiian mixtures) - are most friendly, but relatively inarticulate and quite unspecific. A typical discussion goes somewhat like this: Observer: What brand of cigarettes do you like? Hawaiian: Pulls pack out of pocket, studies it, then says Mool„. Observer: How long have you been smoking Kools? Hawaiian: Oh, about one or four Tears. Observer: Well, how long? Hawaiian: Oh, IQd say more like five years. Observer: What do you like about these Kools? Hawaiian: (after two minutes of intensive deliberation) I don't know. Observer: Isntt there arqthing you particularly like about Kool? Hawaiian: Yeah, I like them a lot. c. Filipinos - - They usually can tell you the brand they smoke, how,long, etc., but have difficulty describing in English, what they like about a brand. -.6 v 0 .j

5 Saoking Patterns (Based on Personal Observation) 4. I talked to many different people all over Oahu, and believe I have obtained a reasonably accurate cross section of the local civilian population. For example, I interviewed the entire office staff of a bank, workers in pineapple and in sugar cane fields, the technicians of a radio station, a construction crew, waiters, taxi drivers, housewives, store clerks, residents of a welfare housing project, and people in bowling alleys, pool halls, service stations, etc. Additionally, I observed brand selections in supermarkets, discount stores and from vending machines. As a result, the following overall impressions emerged: 5. Incidence of smoking is high, particularly among younger adults, and among the labor class. 6. Observed brand loyalty, and exclusive devotion to a single brand (with the exception of the two main Kool smoking groups) appear lower than on the mainland. There is a great deal of experimentation and switching going on. 7. Preference for menthol and especially for Kool peaks among these groupst Low income/education 7oung adult smokers Persons who work or stay outdoors Heavy smokers Men 8. It is almost impossible to elicit stated reasons for type and brand preferences. However, based on my observations, and to some extent on intuition, I believe the following applies: a. Regardless of age, preference for a menthol cigarette is related to climate. The more likely a smoker is to work or to be outside in the heat, the more likely he is to smoke a menthol brand, and especially Kool. Also, there may be a tendency to equate Kool with strength and masculinity. Many of the laborers that I talked with had switched to Kool from a non-filter cigarette, some five to ten years ago. One laborer may have best expressed the strength image of Kool when he said: "Man, when you got a Kool, you really got some- thingH" b. Among young adult smokers, the share of Kool is incredibly high - - probably around 75%. Kool is the "in" brand with this group. Although I could get absolutely no reading why this should be so, my feeling was that this was a fad, a kind of daring thing to do: "When youtre smoking Kools, youtre with it". 9. SALEM4s share of the menthol business appears somewhat better than average among: Middle and upper income Caucasians and Filipinos People who work in air-conditioned offices and stores Women Moderate smokers Older smokers ~ v ~ ,~

6 10. Kool is perceived as having more menthol than other brands. The strength of menthol attributed to SALEM varies greatly - - there doesntt appear to be a uniform position- ing of this brand in this regard. Belair and Spring are considered lightly mentholated. 11. Awareness of cigarette advertising, or at least the ability to describe it, is very low in Hawaii. About the only cigarette advertising that smokers were able to describe was that of SALEM and of Benson & Hedges 100. Almost no one I talked to could remember current Kool advertising, although a few people,surprisingly, cited the penguin. Point Of Purchase 12. Probably because of their high rate of sales, Kool often has more facings in vend- ing machines and in supermarkets than SALEM. 13. Since outdoor advertising is prohibited in Hawaii, store windows are the battle- ground on which the war of reminder advertising is fought. There is a constant struggle not to get 'tw3.ped out" (overpasted) by competition. At present, the Kool/SALEM ratio of posters in store windows is about even. However, Mr. Savage states that he is about to lose the poster war, since his poster allotment for SALEM has been curtailed. Media 14. Mr. Savage regrets the cessation of our advertising on Japanese language radio, and recommends resumption as soon as possible. Perhaps Japanese language radio has some merits for cigarette advertising on the outer islands; I do not know enough about that situation to evaluate it. However, on the Island of Oahu, the current generation Nisei do not speak Japanese, or do not speak it well. A good proportion of the younger people decry the fact that their parents forced them to study a few years of Japanese - - and dontt want to listen to it any more than they have to. In contrast, the older people who do listen to Japanese language radio, have a relatively low rate of smoking incidence. 15. Mr. Savage strongly recommends promotion efforts in bowling, using such vehicles as sweep bar posters, bowling programs, etc. Apparently bowling has become an is- portant recreational activity in Hawaii; large, modern bowling alleys are in evidence all over, and league play seems to have grown steadily. A substantially high proportion of Orientals in their 20's and 30+s, engage in bowling activities, and these people are above average in smoking incidence. Thus, it mmsq well be advisable to explore the relative economics of the bowling media. (Literature attache1i). j /Ii~ W~~-e,^ /

7 16. Community Club Awards a. The people at KGU, the Co®enunity Club Award Station in Honolulu, could tell me absolutely nothing about the proportion of the populatton reached, nor anything about the socio-economic characteristics of persons responding to the program. Their only coment was that "business is good", and then suggested, on that basis, that we buy participation in the program on the Hilo station. b. My own observations indicate that the program has only moderate penetration. the people familiar with it tend to be lower middle/middle class, Oriental. some people save wrappers for friends, relatives, etc., without being aware of the program by name or purpose. c. I believe that the program has been somewhat helpful to Kool, but strongly doubt that it was primarily responsible for the brandts substantial growth on Oahu. d. Although the Coamnunity Club Award People do not accept Kool wrappers from organizations connected with young people, the latter nevertheless collect such wrappers and trade them with adult groups for wrappers of bread or other items. The Club is aware of this, but I was told Mde do everything nice and legal. What goes on between the Clubs is none of our business." Here is a verbatim excerpt from a tape-recorded group discussion with six Nisei smokers. The respondent is Mr. Dennis Shimata, age 23, an IBM operator: Moderator: (After discussion of the Coununity Club Award program): What about you, Dennis?M ' Mr. Shimata: "I save Kool wrappers for nW little niece. She goes to a&_hnnl_- T_ c_ln"tt k_n_rw eyAetl_y rrlhnt snheel_ i_t i_s_ Itts A pre-school and each child assembles with this paper, with the understanding that for so many of these iteas that they bring in, they get credit. Itts more like an initiative program for them." Moderator: "The kids bring in cigarette wrappers?" Mr. Shimata: "Cigarette wrappers and whatever they need." 17. When I discussed this situation with Mr. Savage, indicating the obvious grounds for protesting against the program, he stated that he would welcome such a move.

8 COPY 18. The "hnainland" art and copy of SALEM advertising does not appear to have any negative impact on the Hawaiian population, and is better remembered than other cigarette advertising. A number of national advertisers use special print and radio campaigns in Honolulu. Apparently, the main purpose is to make the appeal more msaningful in the consumerts own frame of reference, and to capitalize on the inhabitants' urimistakable pride in being Hawaiians. Several contacts mentioned the example of Lucky Lager, which used to be the best selling beer in Hawaii. Then Schlitz bought out a small local brewer, named Primo. Using a strong local-oriented advertising campaign, with appeal to the islanders' home-pride, Primo soon displaced Lucky Lager as the leading brand. Some examples of "localized" print advertising by national advertisers are attached. It should also be noted that a number of local disk-jockeys and other personalities have extremely strong followings. It might be worthwhile to explore the possibility of using one of these personalities as the local SALffiM spokesman. Mr. Savage feels strongly that a supplementary local effort should be made, although he admits that he is not conversant with the relevant economic considerations, upon which such a decision must be based. Product 19. While discussing the Hawaiian-market problem with Mr. Savage, the speculation of a stronger mentholated formulation of SALEM was raised. He believes, that if such a product should be made available, it should be sold side-by-side with the regular product. 20. In speaking about the possibility of a special SALEM blend for the Hawaiian market, I asked Mr. Savage whether such a blend ought to be so identified and ad- vertised, (i.e., something on the order of nSAIEN Hawaiian Green"). Mr. Savage was most enthusiastic about such a possibility, stating that such overtly ex- pressed interest in the area would appeal to the local sense of pride, and contribute strongly to a favorable reception. .J