USC Tobacco Industry Monitoring Project Collection
Guidelines for Target Definition
Abstract
Guidelines for target definition. States priorities to attract smokers at first possible opportunity, whether FUBYAS or switchers, and to maximize long-term loyalty. Examines market dynamics and switching behavior. Categorizes brand type: Coolness, Virile, Concerned/Savings, Moderation. Profiles smoker according to brand. Studies market dynamics from age of adoption, through moderation, to switch to savings/concerned. Does not define age range for FUBYAS; 18-24 is used as a range distinct from FUBYAS.
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THE FOLLOWING PRESENTS FOUR PRINCIPLES VH]CH SHOULD BE USED IN
DE~I~NING~TARGET ~ARKETS. ~HEY,ARE BASED,ON, flARKET DYNAHICS AND-
OH ~ROAD HARKET]NG ISSUES.
e EACH R JR BRAND SHOULD ATTRACT SHOKERS AT THE FIRST
POSS |BLE OPPORTUN|TY,
SRAH~'S CURRENT SHOKEBS SHOYLL DE INCLUDED IH |T$ TARGET
ENSURE THAT, I~RKETING EFFORTS DO NOT,ALIENATE THEH "-
EXCLUDE SHOKERS WHOSE WANTS ARE NOT CONSISTENT VITH THE
~RAND* S HERITAGE,
N CONSIDER THE IHPACT OF HAJOR TRENDS/|SSUES THAT AFFECT A
BRAND, SEGHENT, OR HARKET DYNAH]¢.
APPROPRIATE TO THAT BRAND~
• CONSUHER SI~ITCHIHG
BLAND LOYALTY '"
III I
., ........ ~.~. ~ ,',. ..,... .... ,...... ,..
THE LEVE~" OF S'ITCHING INTERACTION" N IRA O AND" ITS
SEGMENT iS LARGE BUT THE NET FLO~ TENDS TO )E SMALL-. ~HE.GAIN.
NET BUSINESS OFTEN~COHES"FROH OUTSIDE OF.THE BRAND S. SEGHENT,
I ~ITHIH SEGHENT S~iTCHES REFLECTS SMOKER UNCERTAINITIES ""
NEITHER BRAND FULLY HEETS SHOK~R ~ANTS,..OR.BOTH~DO~EQUALLY~ ........
..
t ~CROSS SEGHEHT SII~CHES REFLECT CHAHGES IN SHOXER
~AHTS ""
THEY S~ITCH AND STAY,~ ~, , ,,.~ ~
-
~HITCHING FOR VA::TAGE
........... ,~ ,,~,.. ...... ~..~ ............. . ,~,~, .~IHDEX~OF." .~'~*~*"~
TRADITIONAL ~1 +.11
~o~eR~o. 155 -.05 - "
Co.cz~.zo 159 -.21
ST~C~S. 81 -.06 " "
~.
TOTAL 100 ~-5~ " :~
Souec[: NFO: 1976-$3 (NET GAIN), 1979~8q (GAIN INDEX)
T.E .AJORXTY OF NET GAINS (OR LOSSES) FOR A $RAND ARe NOT FROH
CHANGE SESNENTS. THE EXCEPTIONS ARE CA~L~ ~0~ AND CARLTON.
NET Si~ITCHIN6 PERFORIIANCE OF BRANDS
HORE
VANTAGE
HINSTON
V, SLI~S
CAHEL
CARLTON
SALER
B&H
RERIT
~E~PORT
.07
• ql .11 .30
• 3q .11
-.33 .0l -.3q
• 30 -.Ol .3.._.._J_~
• 25 [~ -.02
-.16 .10
-.15 .07
.o5 -.]s
• 01 .08 .07
• 0! .05 .oq
SOURCE:
NFO, 1980-83
~ IT II I I III
CH'DRAND NEEDS TO TRACT SMOKERS AT THE FIRST POSS|BLE
OPPORTUNITY~ AND THEN, MAXIMIZE THE LONG TERM" LOYALTY OF THE
~ , .
• SMOKERS |T ATTRACTS.
AT t~HAT AGE ~)O SMOKERS ADOPT BRANDS |N EACH SEGMENT? |S IT A
Yz~LE ,~NO COOLNESS DRANDS ARE ADOPXED DY 18-20.S~OKERS AS T.E~R
FIRST USUAL BRAND. AgOUT 86~[ OF ALL 18 YEaR OLD SHOKERS CHOOSE A
THE KEY GROWTH BRANDS -- ~ARLDORO AND NEWPORT, ARE ttELL
WHOSE SHO~ERS WERE ]8 WHEN THESE DRANDS WERE POPULAR
AHONG
FUBYAS.
~5-~9 ?1 q5 100 77 19
50-5g 107 75 q~ 100 83 19
55-59 106 10~ 36 9~ 62 12
60 PLUS 99 95 30 92 62 17
21-2q 68 " ~
25-29 96
30-3q ~
35-39 106
qO-~ ]07 86
~5-~ 123 97
50-5q 101 89
55-59 85 62
60 PLUS 106 53
SOURCE:
