Youth and Marketing
Camel Lights Marketing Background
Abstract
Marketing strategy for Camel Lights. Reviews success of test markets. Announces plan for bold national campaign trumpeting greatest satisfaction among low tar brands. Unveils "introducing the solution" campaign with threefold message conveying solution, newness, and pack (for product identification). Discusses plans for reviewing and fine-tuning campaign. Anticipates 45/55% male/female skew. Announces plans for sample 4-packs, stating that superior taste makes trial instrumental for success. Includes many charts and graphs.
Fields
- Notes
Original document code was 4119.
- Company
- R.J. Reynolds Tobacco Co.
- Marketing Type
- Packaging
- PrintAd
- ProdDesign
- Sampling
- Billboard
- Coupon
- Direct
- Target Market
- Adults
- Female
- Men
- Young adult
- Major Subject
- Advertising and Marketing
- Brand
- Minor Subject
- Advertising and Marketing -market share
- Advertising and Marketing -media spending
- Advertising and Marketing -point-of-sale
- Advertising and Marketing -print advertisement
- Advertising and Marketing -strategy
- Advertising and Marketing -target market --adult (25+ years old)
- Advertising and Marketing -target market --young adult (18-24 years old)
- Cigarette -design --low-tar
- Cigarette -sales
- Author
- William, Esty Company Inc
- Brand
- Camel (RJR)
Document Images
ANSERCARD INCREASES THE IMPACT/RECALL
OF THE It CARRIER" AD.
DAR $SORE.
"CANDID" CAMPAIGN P4C AVE. 33.
WINSTON LIGHTS ANSERCARD SPREAD 80
TESTING
FURTHER PROMOTION PROGRAMS WILL BE EVALUATED AND/OR
TESTED FOR APPLICATION DURING THE LAST QUARTER OF 19784
PROMOTION PROGRAMS WILL BE SELECTED BASED ON THE
FOLLOWING CIRTERIA:
1. EMPHASIZE IMAGE BUILDING/EXTENDING PRQGRAMS$
2. SECONDARILY, MAINTAIN THE CURRENT TRIAL/
CONVERSION LEVELS,
CAMEL LIGHTS
*1978 PROMOTIONAL FLOWCHART
M EM M 9B dAY SM M AUS. SEPI QGI M UL
OPPORTUNITY MARKETS
SAMPLE 4' S (WEEK !; -7 )
15~ OFF PACK ROP COUPON
- FIRST WAVE (WEEK 8)
- SECOND WAVE (WEEK 10) ~
X
NATIONAL
$1.00 OFF CARTON ANSERCARD (WEEK 12) x
4
30 CARTON FLOOR BASE DISPLAY (WEEKS 10-14) <
CCCD (WEEKS 1-12)
ONE-FOR-ONE OFFER (WEEKS 1-6)
~
TWO PACKS FREE WITH CARTON (WEEKS 1-6)
TWO SAMPLE 20'S PER CALL (WEEKS 1-3)
PACK DISPLAYS (WEEKS 1-6)
0 E--~
H
~
-
3
* ASSUMES Mi4RCH, 1978 INTRODUCTION. HOWEVERJ "WEEK-OUT" DATE COULD BE APPLIED TO ANY INTRODUCTORY
DATE,
oe1-o- s.Loos.
Srt1C1E.1.
FINANCIAL SUMMARY
(1978 vs, 1977)
CAMEL REGULAR
NET SALES DOLLAR DECREASE OF $8.6MM4
MARGINAL CONTRIBUTION DECREASE $.7MM.
FIXED COST DECREASE $,3MM.
SALES MERCHANDISING INCREASE $1,1MM.
OPERATING PROFIT BEFORE TAXES DECREASES $1,6MMI
CAMEL FILTER
NET SALES DOLLAR INCREASE OF $3e4MM,
MARGINAL CONTRIBUTION INCREASE $3.OMM.
FIXED COSTS DECREASE $.3MM.
SALES MERCHANDISING INCREASE $,2MM.
OPERATING PROFIT BEFORE TAXES INCREASES $3,5MM,
CAMEL
FINANCIAL STATEMENT
DIFFERENCE
1977 IM _$ _ %
VOLUME (BILLIONS) 24.3 22,8 (1,5) (6.2)
SALES 323,0 318,9 (4,1) (1.3)
VARIABLE COSTS 205.2 196.1 (13.2) (6.4)
MARGINAL CONTRIBUTION 117.8 122.8 +5 4.2
FIXED COSTS 19.9 19.2 (.7) (3.5)
OPERATING PROFIT BEFORE
ADVERTISING AND TAXES
97.9
103.6
+5,7
5.8
ADVERTISING AND PROMOTION 10.3 10.0 (.3) (2.9)
SALES MERCHANDISING 5.3 5.1 (.2) (3.8)
OPERATING PROFIT BEFORE TAXES 82,3 88.5 +6,2 +7,5
% NET SALES 25% 28%
CAMEL REGULAR
FINANCIAL FORECAST
($000)
1977 1978 DIFFERENCE
(000) PER M (000) PER M $ __% __
VpLUk (BILLIONS) 17,7' ~ ! 16.2 (1.4) (7.9)
`
SALES ;?35,874 13,29 !i227,286 14.03 , '(8,588) I!(3,6)
VARIABLE COSTS 149,139 8,40 141.264 8.72 i (7,875) (5.2)
MARGINAL CONTRIBUTION 86,735 4.89 ' 86,022 5.31 ! (713) 8)
FIXED COSTS 14.525 I 14,2561
.$2 .88 (269) ;(1,9)
OPERATING PROFIT BEFORE .
ADVERTISING AND TAXES 72,210 4,07 ; 71,766 4.43 (444) (.6)
ADVERTISING AND PROMOTION
SALES MERCHAND I S I NG
3.780
.... 4,900
.21
.30 ;
; 1,120 1
29,6
~
OPERATING PROFIT BEFORE
TAXES
$68
j $3, 86 ; ; $6.._.8....
% NET SALES 28% 30%
CAMEL FILTER
F I NANC IA_ FORECAST
($000)
VOLUME (BILLIONS
SALES
VARIABLE COSTS
MARGINAL CONTRIBUTION
FIXED COSTS
OPERATING PROFIT BEFORE
ADVERTISING AND TAXES
ADVERTISING AND PROMOTION
SALES MERCHANDISING
OPERATING PROFIT BEFORE
TAXES
1977
(000) PER M
6',5
85,900 13,22
L
32,953; 5.07
5,331
27,622
10,514
1,460
4,25
1,62
2
S1564g
19a
(000) PER 11
6,4
89,344 13,93
53.,44Q 8.33
35,904 5,60
5~05C
.Z9
30,848
10,000
1,700
4.81
1.56
.26
$2.41 I $19':148 I$2.99
I
DIFFERENCE
$ __ PER M_
( 3,444
(493)
I
~
2,951
~; (275)
(1,5).
4.0
(,9)
9.0
(5.2)
% NET SALES 18% 21%
CAMEL LIrHTS
1978 FINANCIAL PLAN
INCREMENTAL VOLUME
($000)
in
VOLUME (BILLIONS)
SALES
VARIABLE COSTS
MARGINAL CONTRIBUTION
FIXED COSTS
INCREMENTAL OPERATING PROFIT
($000) PF~6__M
2.1
29,505 14,05
17,787 8.47
11,718 5,58
~163 1.03
BEFORE ADVERTISING & TAXES $9,555 4,55
APPENDIX
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WILLIAM ESTY COMPANY, INC. °D
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