Tobacco Documents Online

PROJECT DB MILITARY INTRODUCTION PLAN I. Overview II. Feasibility III. Opportunity Analysis IV. Marketing Objectives V. Positioning Statement VI. Financial Plan VII. Pricing Plan VIII. Name/Package Plan IX. Product Development Plan X. Advertising Plan A. Copy Plan B. Media Plan XI. Promotion Plan XII. Sales Plan XIII. Research Plan XIV. Public Relations Plan XV. Critical Path Summary Pages i

I. Overview Project DB is a new brand of cigarettes which offers smokers masculine user imagery with the permanent purchase incentive of a substantial price savings versus established virile segment brands. The Brand will.be manufactured in both 85mm and 100mm non-menthol styles at approximately 15 mg tar. The prime prospect is male, age 18-34 with primary emphasis on the 18-24 year old segment. This target has been identified because they are extremely image sensitive, peer-approval oriented and increasingly price sensitive. Project DB.has been developed to address all three of these key areas of need consistently expressed by target smokers. Project DB will be introduced into the military market, which represents 3.1% of total U.S. industry volume, on October 17, 1982. The Brand will be intensely supported during its initial introductory period, October 1983 - February 1984 with maximum media coverage.and specifically tailored promotional programs designed to blanket the - military environment. Spending for the Brand will be adjusted to sustaining levels for the balance of the year I Marketing Period (March - September, 1984) with marketing activity planned to ensure continuity of brand presence and support. The following chart details Project DB Year I Marketing support within the military environment: 1983 1984 0 N D J F M A M J J A S O N D DB Military Intro. Period DB Military Sust. Period Sustaining Drive Period The following summary will describe Project DB's military marketing opportunity and briefly overview the Brand's introductory marketing plan: 0 a A. Summary of Opportunity ~ w Project DB represents an offensive opportunity for RJR 4prr41At to generate incremental volume and share This will be accomplished through the introduction of a unique marketing variable -- a per- , p4~ nst % ~ p lntbbte~r+R* ig~~h~rn io~~ h4wtW~ eM e~l~y~nWSg• mlys~,as+~ The recent performance of generic cigarettes indicates "^%V.WTW-W' the price sensitivity demonstrated by consumers in response to recent manufacturers list price increases.

I. Overview (Continued) A. Summary of Opportunity (Continued) Generics have grown to representI.4$ of the total industry i as oflr"M,*1%3, versus.91$ for the prior year period. Consumers within the military market environment demonstrate even more intense levels of price sensitivity as generics ave g wn to representb.19$ of the milita•ry market as of hAV4,AS3, However , consumer research has shown that shoppers, in both the general and military markets, perceive generics to be of substandard quality and as delivering inconsistent and questionable product benefits. These perceptions are particularly evident among younger adult male smokers, who prefer brands which deliver image benefits as well as consistent smoking pleasure. The development and"intro- duction of Project DB will serve to address these key~+s expressed by the younger adult male smokers within the pf4P6N*X'4" military environment. • Additionally, recent rumors of potential dOmpetitive pricing actions have been circulating in vtrade and financia . The introduction of Project DB in the ary market will place RJR in a position of readiness to react to competitive efforts on a national basis-with a new product, rather than adjusting the price of a major established brand,~resultiog in a reduction of planned profit margins. B. Strategy Summary • Positioning - Project DB will be positioned as providing distinctive masculine user imagery and a high level of peer acceptance as conveyed through all visible brand elements. The Brand's point of difference -- its unique price point -- will act as a permanent incentive for continued purchase and usage. The Project DB product will deliver a taste as rich and smooth as competing virile segment brands. The taste not only will satisfy the product wants of the DB prospect, but will also enable him to feel confident in sharing that good taste with his friends. ~ ~~a g is a mal $a ge 18-34, with specifi asis placed ins the 18-24 year old . The prime prospect y,~,p1y~C can be further described as middle to lower income and extremely image sensitive. His needs for a sense of social belonging are satisfied by the image projected by Project DB, and thus reinforces his purchase decision. Because Project DB is accepted by his peer group, the Brand's lower price is viewed as a positive, real value which cn serves as a permanent incentive for continued purchase. w ~ 0 • Prime Prospect - The prime prospect tor Pr 4M ao ~

I. Overview (Continued) B. Strategy Summary (Continued) _ OV, * 6%, 1 Vk.%SO& c • Product -nitially, product development work has con- centrated on the rapid development of 85mm and 100mm products which meet consumer action standards using existing ble configurations. Concurrent develop- ment s have been directed toward identifying consumer testing prototypes with significant cost savings for in-market availability by January, 1984. • Name/Packa in - The product's name and modified we ge design package'have been recommended and approved as they work in tandem to: _ - create the image of a conventional, accepted, popular brand which is easily recognized and, attractive. communicate key product benefits of rich taste and fine quality. inform target smokers that the brand appeals . to their key needs of masculinity reinforcement and social acceptance. • Pricing cing - The Brand will establish a permanent price point between standard brands and generics which will offer military consumers substantial price savings versus standard brands, yet will also provide identical product quality, consistency and reliability to which smokers have come to expect in their current brands. • Copy - A unique approach within the highly competitive virile segment has been taken in the development of the DB advertising campaign. The concept of belonging is central to the campaign; DB is a cigarette smoked by men who enjoy spending special time with their good friends. While each of these men possess individually different personality traits, together they possess a strong sense of group identity and belonging. The campaign will differentiate itself from every existing virile segment brand since it exemplifies group belonging and peer approval. As such, it is distinguished from Marlboro's romanticized independence, CAMEL's adventurous masculinity and WINSTON's proud bond of honor among men. Thus, the Project DB campaign will fill a void in the virile segment and will be perceived as unique, modern and as a realistic portrayal of the younger adult male smoker's lifestyle.

I. Overview (Continued) B. Strategy Summary (Continued) • Spending - A total of $8.375MM is recommended to support Project DB during its Year I Marketing Period (October, 1983 - September, 1984): Of this amount, $5.615MM (67%) wil1 be spent during the Brand's initial introductory period (October, 1983 - February, 1984) to maximize military market coverage. A total of $2.760MM (33% of total) sustaining spending during the balance of 1984 (March-September) is recom- mended to ensure sufficient brand presence and impact. Additionally, an emphasis period is planned for May/ June, 1984 to provide incremental consumer awareness and product exposure during the sustaining period. Intro. Per. Sustaining Per. Zbtal 4ear I 10/83-2 84 3/84-9/84 eYrlin Media 2.1 MM 1.1 MM 3.2 Production .2 .1 .3 Fee .3 .1 .4 Total Advertising 2.6 1.3 3.9 Consumer/Trade 2.7 1.4 4.1 Promotion Total Brand Contr. 5.3 2.7 8.0 MDD Projects .3 - .3 Total Mktg. Expense 5.6 2.7 8.3 % Spending 67 33 100 • Media - During the October 1983 - February, 1984 introductory pe ir d, the Project DB media plan will focus the majority of its spending weight to provide mass coverage through the use of on-base newspapers. National military magazines will be used to rovide C additional message communication, taking va Sdv~+~ of the available four-color format. The mi itary out-of-home inventory will also be used during the introductory period to achieve heightened levels of awareness.__A total_of_65$-of_total Marketi_n_g_Year-I- media dollars will be spent during the introductory period. Media spending weight will be reduced during the sustaining period to provide limited reach with con- , t~i _o~ ~~, e~ w}cb4tdus frequency against the target. Media ~iy Sppnd%tryt~ e~w}cb4td -wi 1T l~e%' , however, during the Brand' s May - June emphasis period to provide incremental levels of W media presence and to support planned promotional efforts. a~ A total of 34% of Marketing Year I dollars are ° allocated to the sustaining period ~ . . ao ~ v%

I. Overview (Continued) B. Strategy Summary (Con inued) • Promotion - P motion emphasis will be skewed into the OctoFer 983 - February 1984 introductory period as it is critic to rapidly achieve substantial levels of awareness (i productotrial and follow=up purchase during this time o~ ~~hp period. A barrage of promotional programs, i cluding Da ~C sampling, couponing, Buy One Pack, Get One e and Bu One Carton, Get One Free are scheduled uring the intro uctory peri.od to support the Brand. During the sustaining period, promotion will be used t retail presence and impact, with incremental r grams scheduled for the May - June emphasis period to ensure continued consumer re-trial and purchase opportunities. • V*r