USC Tobacco Industry Monitoring Project Collection
BENSON & HEDGES ETHNIC MARKETING PROGRAM
Abstract
Demographic report to develop Benson & Hedges' 1982 marketing plans from A.J. Cohen, assistant brand manager. Marginalia indicates desire for a tighter recommendation and desire to use the report as background information. Finds market differences among Mexican, Cuban and Puerto Rican Hispanics and of other consumes of the same ethnicity residing in different parts of the U.S. Finds South Bronx to be most poor of all territories with no carton sales, 99% pack sales, and only in Stuveysant area were cigarettes sold individually. Single cigarettes were available for five most popular brands. Document finds most popular brands in Bronx to be Marlboro, Winston, Kool, Newport, Benson & Hedges, and Kent. Not methodology reported for market survey. Finds trend toward lights increasing. Newport is star among young smokers. Argues that two-for-one incentives, sampling and heavy advertising are reasons retailers cite Newport as an up-and-coming brand. Document details Marlboro is the only Phillip Morris brand with point of sales pieces tailored to Hispanics. Additionally, "macho" man with phrasing in Spanish is placed for Winston's. Argues signs target Spanish segment featuring special style of dominoes played by Dominicans. Document describes that cigarette outlets serve as fronts for games of chance which are popular in NY. Special promotional activities including "instant win" factors are reported to be popular in ethnic areas. Notes prominence of KOOL salsa festival. Distinguishes South Bronx from other areas of New York although market conclusions much the same. Document notes all cigarette companies except American Tobacco "currently have specific outdoor campaigns for major brands tailored to the Black market" (100488714). Union City New Jersey market describes cigarette sales in liquor, drug and stationary stores restaurants, groceries and candy store. Newport again the "surprise" brand taking off de to promotions and sampling. Houston has a high concentration of Black and Mexican accounts. Texas is termed "the convenience store capital" (1004887719). Describes variety of counter displays. McAllen, TX. Describes southernmost tip of Texas at border. Describes border crossing movements. Notes cigarette outlets are miles apart. 15% of retailers are family-owned groceries. Strong sellers in McAllen are popular brands in Mexico. Concludes Mexican shopper who relocate to US continue smoking these bands. Chicago, IL. Market check concentrated in Southside Black and Spanish neighborhoods. Limited floor space means pack sales are high. Phillip Morris visibility is high with strong Marlboro aimed in Spanish and Virginia Slims at Black neighborhoods.isplays in detail for each location. Describes importance of incentive and community festivals in Texas such as Juneteenth Day.
Fields
- Target Market
- African American
- Hispanic
- Young Adult
- Hispanic
- Strategy
- Yes
- Message
- None
- Subject
- African Americans
- brand image
- #18526 (Event Sponsorship)
- Hispanics
- Latinos
- marketing
- Popular Culture
- Urban Areas
- Young Adults
- advertising
- brand image
Document Images
PHILIP MORRIS U.S.A.
INTER -OFFICE CORRESPONDENCE
100 Park Avenue, New York, N.Y. 10017
To: W. K. Cutler
From: A. J. Cohen
Subject: Benson & Hedges Ethnic Marketing Program
Date: October 13, 1931
In order to gain personal insight on~the problems
and opportunities inherent in minority marketing and
aid in the development of Benson & Hedges'1982 marketing
plans for Blacks and Hispanics, I visited a demographic
and geographic cross-section of territories spanning the
Northeast, Midwest and',Southern, U.S.
These market checks provided the opportunity to
speak with the sales force, retailers and~con~sumers as
well as view firsthand'the current ethnic marketplace --
point-of-sale/outdoor visibility, brand awareness, trial,
image and sales trends for Benson & Hedges and competition~.
A summary of observations and initial recommendations
follow for your review.
Let's discuss at your earliest convenience.
AJC/jec
cc: T. R. Keim
~-~ ~,.
~I ~J-~ SU
~~~ ~~ w
Sc-, .
~
`
~
r<
~
L
ITINERAF.Y
DATE TERRITORY DEMOGRAPHICS
9'/21 South Bronx, New York Puerto Rican/Black
9/24 BedfordStuyvesant, New York Black/Puerto Rican
9/25 Union City, New Jersey Cuban
9/29 Houston, Texas Black/Mexican
9/30 McAllen, Texas Mexican
10/1 Chicago, Illinois Black/Mexican/Puerto
Rican
2
INTRODUCTION
The "ethnic" marketplace encompasses a variety of
market segments divided along both national heritage and
geographic lines.
In addition~ to the frequently touted differences
between Mexican, Cuban and Puerto Rican Hispanics, signifi-
cant differences also exist in the type of outlets and
brand preferences among consumers of the same nationality
who reside in different parts of the U.S. -- i.e. Blacks
in New York vs. Blacks in Houston, Mexicans in Chicago:vs.
Mexicans in Texas.
In other words, observations fromleach market reflect
local conditions, available outlets, traditions, etc. which
may vary as much from each other as the Hispanic and Black
smokers as a whole vary from the Anglo mainstream.
Iniorder to account for these similarities and
differences and provide a realistic market appraisal,
this report £ollows the format outlined below:
Part I - Observations by Geographic Concentration.
Part II - Ethnic Marketplace Composite Overview.
Part III - Recommendations for Benson & Hedges Ethnic
Market Programs.
3
I. Part I provides a market summary for each of the locations
visited.
SOUTH' BRONX, NEW YORK
BACKGROUND
The South Bronx appeared to be the most economically
deprived of all territories visited. The population is
predominantly Puerto Rican, followed by Blacks and a scatter-
ing of elderly whites.
99% of cigarettes sold are pack sales; carton sales
are virtually non-existent. In addition, this territory
and Bedford Stuyvesant were the only areas where single
cigarettes were being sold at ten cents apiece. Single
cigarettes were available for the five most popular brands.
Due to pilferage problems there are no carton racks
and~very few paid counter displays. Floor displays are
very rare. Temporary set-sells are a]lmost.never self-
service, appearing behind counters amidst boxes and cans
of food, paper products, etc. Very often they are torn
and/or carrying competitor's brand~s. A few security displays
(RJR & B&W) were seeni, but generally the advertising had
been rippedloff and they were filled with candy, cornbs,
matches, etc.
Cigarettes are primarily so1d~in bodegas (neighborhood
grocery), candy stores, luncheonettes and drug stores.
Due to frequent robberies, supermarkets do not sell cigarettes.
In fact, many outlets bring their cigarettes home each
evening. Retailers are mostly Spanish, Arab and Oriental
in the independent outlets. White retailers are generally O
older, long, time business owners. ~O
SALES GO'
Q?
The most popular brands are Marlboro, Winston, Kool, ~
Newport, Benson & Hedges and Kent. ~
As is typical for inner city markets, low tars are not
in demand and ultra low tars are not a factor. The only
U.L.T. brands that sell at all are Barclay and Carlton, and
only when they offer the Buy One, get one free promotion.
Marlboro and Benson & Hedges are well received in th~is
market. All packings of Benson,& Hedges sell, but the Gold
is the most popular. However, a trend towards the Lights
is occurring.
O
Newport is the up-and'-coming star among the youngest
smokers, cutting into the Kool, Winston and Marlboro
franchises. Retailers don~'t attribute this to any specific
outstand'ing program of Lorillard but cited the two-for-ones,
incentives, sampling and heavy advertising as potential factors,
A spiraling effect seems to be evident. As more
young people turn to Newport, their friends and~new smokers
change to the brand. In additioni, retailers have heard from
several smokers that Kool is too harsh and are switching to
Newport for smoother taste. A_smooth and refreshing smoke
rather than lower tar are key considerations inithis switch.
OUTDOOR
Philip Morris has a: very limited presence in this
territory. A few Marlboro and Virginia Slims billboards
were seen throughout the day.
Reynolds overpowers this area featuring More Lights
100's and~W'inston. Winston boards were in Spanish using.
Puerto Rican models, all promoting the Box packing.
B& W ha s a strong, showing for Barclay Menthol varying
its subject with both Black male and~female models.
Lorillard has outdoor board's for Newport Red "Nuevo
Newport Rojo - Tobaco Enriquecidol- Sin P.Zenthol, "'
"New Newport Red - Enriched Tobacco - without Menthol,"
with Latin model types. Kent has a scattering of boards
using its "'Hungry for taste - Low Tar Kent" copy.
Competition, pred'ominantly Reynolds and Lorillard,
are very visible at bus stop shelters,subway station out-
door entrances and bus exteriors. Philip Morris appears
to be missing opportunities for high visibility inner city
pedestrian traffic.
P.O.S.
RJR has recently committed toistrong, p.o.s. support
for Winston with several pieces specifically aimed at
Puerto Rican consumers. In New York there are metal
signs, store hour decals, 3-dimensional vaccuumiformed
sig,ns, posters and set-sells featuring a young Puerto
Rican couple with El rsorro (fort iniPuerto Rico), palm
trees or a map of Puerto Rico in the background. The same
subject is coordinated at outdoor.
5
In all cases, the Winston man looks extremely "macho"
with his woman a few steps behind gazing.fondly at him.
Copy is in Spanish -- "Para Quien lo quiere todo;" "For
those who want it all."
Winston. Box is always the featured packing.
Although not seen during this market check, our South
Bronx sales rep said Winston has metal signs and posters
with Dominican models playing dominoes. This sign is
targeted to this specific Spariish segment by featuring a
special style of dominoes only played by Dominicans.
American has a few set-sells and posters for Carlton
in Spanishi-- "Carlton es mas bajo;" "Carlton is lowest."
Retailers andiconsumers seem to like these campaigns.
The general consensus about advertising using,Spanish models
and'/or copy is that it creates interest and identification
among Hispanic consumers,but by itself will not induce trial
by a customer loyal to another brand. However, it might
very well have an affect on new smokers and those looking
to switch brands. In addition, it tends to facilitate
per^ianent and temporary placement opportunities.
Marlboro is currently the only PhiliplMorris brand with
p.o.s. pieces tailored to Hispanics.
. The sales force is pleased with our Marlboro_Hispanic
p.o.s. but would like a: greater variety of items andSpanish
support for other Philip Morris brands,particularly Benson
& Hedges and Merit. Random comments included:
Bump up the copy line on metal signs and department
markers.
Provide some Marlboro Menthol support pieces.
In general,,place more emphasis onithe Spanish
copy for ethnic market p:.o.s. items.
Reinstate ethnic set-sells and/or header cards
which could, be used with generic displays.
Outdoor and p.ol.s. support specifi:cally targeted at
Black consumers for Kool, Newport, Barclay, Salem, More,
Virginia Slims and Benson & Hedges were visible throughout
the South Bronx. These items will be discussed in detail
in the Bedford!Stuyvesant section which follows.
6
PROMOTION
Due to economic conditions, consumers are especially
price conscious. Retailers say promotions almost always
sell out, especially free packs and'lighters. They
believe conversion occurs when placed onithe more popular
brands such as Winston, Camel and Newport but not on the
marginals such as Barclay, Carlton, Triumph, Eve, etc.
Besides free packs and lighters, playing cards are
considered'ipopular. Key chains, combs, books, etc. have
limited perceived value.
Games of chance enjoy special favor inithis community.
Numbers, dice and slot machines aboundiwith many cigarette
outlets serving as fronts for these activities.
Lotto is particularly popular. RJR has capitalized~
on Lotto's popularity with a recently introduced hanging
marker which displays Lotto results. This piece has a high
perceived'lvalue among those accounts featuring, the game.
Instant winner contests suchias "The Pepsi Challeng,e"
are currently succeeding in increasing trial and creating
repeat business.
Retailers believe that "the instant win factor" is
important to a promotion's success in ethnic areas. Coupons,
entry forms and self-liquidators generally have very limited
impact.
Current promotions include Barclay Menthol -- two for-
one, Camel Lights -- two-for-one, Newport Red -- two-for-
one, Eve Lig,hts 101©'s -- two with free lighter.
Community festivals and cultural events are well-
received in New York and particularly by the Hispanic com-
munity. Obvious advantages include the opportunity to
reach a large targeted'.market segment in a very positive
setting. Sampling, switch-selling and incentives all aid
in enhancing and extending brand awareness.
Kool is currently an active supporter of a"'Salsa
Festival." This event took place last month; the reaction
was favorable.
The Hispanic World's Fair, Puerto Rican Dav Parade,
Hispanic Day Parade, Spanish Caucas, Salsa:Rengue and Casa
Blanc a Night Club Entertainment C'omplex are a few of the
various types of opportunities available for increasing
awareness among Spanish consumers. The sales force would
be a valuable resource for learning more about potential
events.
BEDFORD-STUYVESANT, NEW YORK
BACKGROUND
Bedford-Stuyvesant, another economically depressed
territory is primarily Black; Hispanics comprise the next
largest demographic segment.
Like the South Bronx, pack sales predominate and~self-
service displays for cartons and even packs are rare
due to limited counter space and pilferage problems. Set-
sell placement is generally in non self-service locations.
Cigarettes are primarily sold by independent ma and
pa grocery stores. Supermarkets, liquor and drugstores
appear to be underrepresented in cigarette sales compared
to the general marketplace. Cigarettes are also sold from
"pot joints," store front operations throughout the territory.
Common to Bed-Stuy andthe South Bronx, some outlets
have 6 foot high or floor to ceiling plexiglass where no
items are self-service. The interaction in these outlets
occurs by way of a small cubbyhole indirectly angled between
consumer and retailer. Posters and metal signs provide
the sole product visibility.
SALES
The most popular brands according to the retailers are
Kool, Newport, Marlboro, Winston and Benson & H'edg,es.
Although~Benson & Hedges continues to be a strong performer,
Newport's surge is what most retailers in this area:are
talking about.
Newport seems to have become very popular among young
Black smokers as the "in" cigarette in the New York area.
In addition, switchers from Kool cite the cooler more re-
freshing taste as the reason.
All Benson & Hedges packings sell, the Green is strongest
followed by the Lights Menthol,,Gold and Lights Regular. ~
Retailers say customers won't even steal the ultra low 0
tars. 7
Gn
OUTDOOR X
~
All of the cigarette companies except American Tobacco ~
currently have specific outdoor campaigns for major brands ~
tailored to the Black market.
Philip Morris is well represented, with a strong showing
for Marlboro (generic) and Virginia Slims (Black).
8
RJR has 30-sheet and mini billboards featuring Salem
Doin' It Smooth. The subject: B.lack male raodels playing ppol,
More 120's is using upscale Black male, female and couple
shots with a white backgroundand large regular and menthol
packs.
B&W has Barclay Menthol boards using black male and
female models elegantly attired, their cigarette being lit
off camera.
Lorillard has Newport boards with a young casual black
couple relaxing in the grass andanother with 2'couples splashing,
around in the water. Branding is in electric orange.
P.O.S.
RJR has metal signs for Salem Doin' It Smooth,with: the
same creative as outdoor. Both packing,s of More 120's are
supported with metal signs and posters featuring in-
dividual male and female models..
B&W is not supporting Barclay Menthol at p.o.s. with
pieces featuring Black models. A pack shot with the 99% tar
free tagline and~yellow starburst announcing the free pack
is featured on permanent counter displays and posters.
Kool isv.ery visible at p.o.s. There are dig,i,tal:
clocks featuring a young Black couple having,fun iin -
an urban setting; the same subject is reinforced inisquare
and horizontal metal sig,n~s and posters. Metal sig,ns of a
sophisticated Black couple enjoying themselves at a: city
plaza,and another with a Black couple about to go out on the
town are abundant_. The above scenes feature the family of
Kook packings.
Several two-sided department markers advertise Kool
N
packings on one side andBarclay onithe other. Roomifor ~
personalized, changeable messages appear on the bottom. 0
kl~;b
Lorillard! has a showing, of metal signs for Plew- ~
port with a young Black couple relaxing and having fun. A ~
bright green background and orange letters make it pop. ~
N
Philip Morris' current Black ethnic brand is Virginia
(J~
Slims. These items along with Benson & Hedges and Virginia:
Slims Lights pieces from previous periods are highly
visible throughout the neighborhood. An overall evaluation
of Benson & Hedges temporary and permanent p.o.s. will follow
the individual territory observations.
9
PRObSOT I0N
The same in-store promotions were available in
Bed-Stuy as observed in the South Bronx.
Kool continues to promote its Jazz Festivals
around the country. These events seem to enjoy high
awareness and immense popularity.
Greater involvement in Black social and cultural
events such as Harlem Day, Martin Luther King Day, etc.
provide opportunities to heighten awareness, particularly
among younger smokers.
