Tobacco Documents Online

0IIA- 1 C.j August 10, 1982 TO: Mr. D. H. Murphy FROM: Joseph Tan SUBJECT: NOW - PERCEPTIONS BY SEX The purpose of this analy:c(s is to identify reasons for NOW's predominantly female composition. BACKGROUND From the last Business Analysis, it was recognized that NOW emerged with a distinctly higher female skew versus both its primary competitor, Carlton, and the total Concerned segment. NOW is part of the Concerned segment as well as the "lowest" subsegment of the Concerned segment. ("Lowest" in tar delivery, within the lmg and 2mg range.) Both the Concerned segment and lowest subsegment have an inherent feminine skew as shown below. SEGMENT/BRAND PROFILE ~ Male Female (%) (%) T.,.1ov „o 1Itl1C-A V v • Total Market lndeX vs, Concerned Segment Concerned 41 59 126 -- Lowest Subsegment 38 62 132 105 Brands NOW 25 75 161 129 Carlton 39 61 128 103 Barclay 48 52 110 88 Also, switching data shows that while the Concerned segment as a whole lost female smokers in 1981, NOW's share of female smokers increased slightly.

Mr. D. 11. Murphy August 10, 1982 Page 'Cwo An initial search for an explanation via recent consumer data did not turn out any meaningful explanation for the brand's female bias. For instance, the brand's awareness data :;howti equal level of awareness between males and females and the trial and purchase pattern skews female, which is normal for brands in the Concerned segment. Although data on user perceptions and product perceptions does show an inherent skew towards women, it does not offer an explanation for this formation. This prompted us to hypc,thesize that NOW's development of a predominantly female franchise is a historicnl one, having its roots from the brand's introduction. C(INCLUS ION Data confirms.that NOW's female skew is historical and is based on both the brand's introduction and consistent marketing since. The introductory plan intentionally positioned NOW as a female brand and the consistent marketing, advertising, and promotion efforts applied over the years since 1976 have helped to self-generate and consolidate NOW's female franchise as shown below: NOW USAGE BY SEX 1978 1979 1980 1981 Male 35 36 33 25 Female 65 64 67 75 FINDINGS 1. NOW was originally conceived in 1975/76 as a lowest tar candidate to compete in the rapidly emerging low tar segment and was tailored to appeal to women (the prime prospects) who are identified as: Prime Prospect 1978 1979 1980 1981 1982 Sex Female Female Female Female/Males Female/Males Age 25 yrs + 25 yrs + 35 yrs + 25 yrs + 35 yrs + Income $15M + $15M + Upper Upper Upper I- Female smokers represented the bulk of smokers in the Concerned segment and still coi)tinue to do so.

Mr. 1). 11. Murphy August 10, 1982 Page Thre e 2. Pre-introduction studies of the brand name and package test supports the brand's female skew. Besides being able to evoke more female connotations, the NOW name also generated better "likely-to-smoke" score among female smokers. Results of the package test indicate a preference for the "chrome" package design and was selected for its ability to reinforce brand's sophis- ticated and upscale imagery. 3. While initial advertising was intended to communicate lowest tar, this was changed relatively early on and focused heavily on imagery to establish the desired user imagery dimensions of a sophisticated, upscale woman. These advertising campaigns effectively molded the user perception for the brand. Even though the advertising was again changed in 1978/79 in the face of imminent consumer confusion with specific tar delivery, the new advertisements which adopted a more product intensive posture was not designed to alter the brand's user imagery. 4 . Until rec~ently, the historical media strategy seeked to achieve optimal reach of the prime prospect via female focus magazines and publications that offer the best reach of the prime prospect. However, with the change in 1981 to reflect the revised prime prospect definition (see Table I), the media strategy now adopts a slightly more dual audience media impact, however, with an under- lying female emphasis. This will improve NOW's media exposure among male smokers but probably will-not alter the existing user perception of the brand since the advertising is designed to communicate that NOW is the ]owest tar cigarette. 5. The brand's historical promotional activity has been consistent with the rest of the marketing efforts and has always concentrated its activity among the prime prospect - females, 25 years + to generate trial, purchase and eventual conversion. Tan ting Development Department JPT/ph cc: Mr. Mr. Ms. Mr. Ms. MDIC H. A. D. D. L. E. R. E. S. J. Osmon Cox Loredo Johnson Breininger