Youth and Marketing
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.
Fields
- Notes
Original document code was 1010.
- Company
- R.J. Reynolds Tobacco Co.
- Major Subject
- Advertising and Marketing
- Brand
- Target Market
- Adults
- African American
- FUBYAS
- Switcher
- Young adult
- African American
- Minor Subject
- Advertising and Marketing -media spending
- Advertising and Marketing -pricing
- Advertising and Marketing -strategy
- Advertising and Marketing -target market --adult (25+ years old)
- Advertising and Marketing -target market --FUBYAS
- Advertising and Marketing -target market --minority ---African American
- Advertising and Marketing -target market --young adult (18-24 years old)
- Brand -loyalty
- Brand -switching
- Cigarette -market share
- Advertising and Marketing -pricing
- Brand
- Camel (RJR)
- Century 25pkg
- More
- Now (RJR)
- Players (PM)
- Salem (RJR)
- Sterling
- Vantage (RJR)
- Virginia Slims (PM)
- Winston (RJR)
- Century 25pkg
Document Images
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TAR GT DEFINITION
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AVOID,,.DlfPLICATION;-0F R.JR .EFFORTS
CONCENTRATE BRAND EFFORT TO ACHIEVE MAXIMUM RESULTS
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HERE ARE; TMO BASIC;,~R
E
ASO.SS:FnR':T,EFININGtf;TARGETS'
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TARGET MARKET
4 4~= xEPRINCIPLES'
. ~ ,~.
SUMMARY~ . ..
M 1 J 't#S'
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THE FOLLOWING PRESENTS FOUR PRINCIPLES"MHICH SHOULD BE USED IN
F,INING,
DE, ,.TARGET,MAR,KETS,THEY.ARE BASED 6N.MARKET DYNAMICS AND''
t
ON BROAD MARKETING ISSUES
EACH RJR BRAND SHOULD ATTRACT SMOKERS AT THE FIRST
POSSIBLE OPPORTUNITY
1. ~.'.- .r p.
A BRAND'S CURRENT SMOKERS SHOULL BE INCLUDED IN ITS TARGET
TO ENSURE THAT MARKETING EFFORTS DO NOT ALIENATE THEM -'
I
S
MAXIMIZEAONG TERM LOYALTY
EXCLUDE, SMOKERS
WHOSE WANTS A,RE,NOT CONSISTENT WITH THE
BRANDI S HERITAGE
CONSIDER THE IMPACT OF MAJOR TRENDS/ISSUES THAT AFFECT A
BRAND, SEGMENT, OR MARKET DYNAMIC
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~ MARKETilDYNAMICS '
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~. _., . .., , .
BRAND,;.. ~S,}=,TARGET wIS `Ti;E "Ct3:lSL'MEit ° GROUP WHICH:"MILI` GENERATE''
IMPROVED PERFORMANCE
THE ABILITY TO ACHIEVE RESULTS DEPENDS ON MARKET DYNAMICS
APPROPRIATE TO THAT BRAND
CONSUMER SWITCHING
BRAND LOYALTY
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w
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4!r~ ~r e=} x ~d~4 4'; ~
ACROSS SEGMENT SWITCHES REFLECT CHANGES IN SMOKER WANTS --
THEY SVITCH ANO STAY.
., .,.,«, ,. ~t.;-:;: . °n
H
SWI TCH I NI'3.f OR V::TAGE
EXAMPLE
VS . '. '
TRADITIONAL
VIRILE
MODERATION
CONCERNED
STYLISH
COOLKESS
SAVINGS
TOTAL
155
159
100
~A,IN Sp q u; ,
-~...-
+.11
-.05
-.21
-.06
q .01
J
+.54 -.
f-0
:.jARGETDEFiNITION
`*''MAR ET`~DYNAM CS`~ +
v SHITCHIN"G
NET BUSINESS-OFTEN',COMES. FROM OUTSIDE`OF:`THE'BRAND~S~`SEGMENT-
SEGMENT IS LARGE BUT THE NET FLOW TENDS TO BE SMALL.., THE,GAIN.IN
, ,, . .
WITHIN SEGMENT SWITCHES REFLECTS SMOKER UNCERTAINITIES --
NEITHER BRAND FULLY MEETS SMOKER WAI~
, TS,r.ORkBOTH*D0~E0UALLYI4
THE LEVEI. 0F SWITCHING'.IHTERACTION BETWEEN A BRAND AND'' ITS
SOURCE: NFO: 1976-83 (NET GAIN), 1979-84 (GAIN INDEX)
MARKET~ DYNAMICS
JSHI CHING
THE MAJORITY OF NET GAINS (OR LOSSES) FOR A BRAND ARE NOT FROM
THE~BRANDI S'SEGMENT. THE SMITCNERSTHAT SMITCH AND STAY TEND T
0
CHANGE SEGMENTS. THE EXCEPTIONS ARE CAMEL. NOW AND CARLTON
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NET SWITCHING PERFORMANCE OF BRANDS
BRAND
GENERICS
" KooL"' ""::..
MARLBORO
NOW
MORE
VANTAGE
WINSTON
V SLIMS
CAMEL
CARLTON
SALEM
B&H
MERIT
NEWPORT
SOURCE: NFO, 1980-83
<:~~rt ..?JARGET. DEE,jNI?ION
NET' GA1NS OF BRAND VS.
TOTAL ITS SE6 OTHER SEG.
1.55
7
-.53
.43
.41
34
-.33
.30
.25
-.16
-.15
.05
.01
O1
.36
.07
-.15
.08
.05
156
.~y~1'g+r,.k,.~ ,u.,,..
-.y2
-55
.07
ft
.30
.23
-.34
.31
-.22
.20
.07
.04
..:;TARGET:-DEFINjTIONS,
,' PIR1tRC.1 ' UiNRPI ll.J
BRAND': LOYALTY DRIVES 7i4E,Lali"vER=~TERMa'SUCCESS OF' MAJOR BRANDS AND
COMPANIES If A BRAND APPEALS TO FUBYAS, THEN BRAND LOYALTY:
TRANSLATES THAT STREIIGTH TO OLDER AGE GROUPS
~
PROVIDES $ ~;
, ,.. . ,.. ~. _,OM R ,..,.. 6R01RH ,, IIS,,R~1TE;xPER,;DAY:.INCREASES ..,
SMOKERS MAY REMAIN LOYAL FOREVER UNLESS THEIR WANTS CHANGE AND/OR
~
POORrPRODUCT/MARKETItiG "'PORf~TNEI R~ USU11L, 1BRAAID `sCAUSESPAV SMOKER TO
SWITCH AMAY
SEGMENT SWITCHING IS PROBABLY CAUSED,BY CHANGING MANTS, NOT THE
, ,.. , . ~ ; : . . .
MARKETI1i CHED TO HERS, A
:. , G OF THEry BRAND SWITCHED ` # 4T TOµ CAPTURE SWITC
BRAND SHOULD BE AT THE RIGHT PLACE (POSITION) AT THE RIGHT TIME
~QGET
DEFINITION
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r,
~fsip,~&~ ~,
g~
u~L KETrv DYNAMICS.;,
.
: ~,
EK Y ISS!lE,..
EACH BRAND NEEDS TO ATTRACT SMOKERS AT THE FIRST ~"
POSSIBIE
OPPORTUNITY AND THEN, MAXIMIZE THE LONG TERM LOYALTY OF THE
SMOKERS IT ATTRACTS
1
AT WHAT AGE DO SMOKERS ADOPT BRANDS IN EACH SEGMENT? IS IT A
-FUBYAS°SEGMENT' OR A` SNITCHING' BASED 'SEGMENT?'
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!iTgRGETODE t-l N'I T I 011 `
~~Rx{~~~ ,--.
-HARKET DYNAMICS
.
AGF~'IYOFV ADOPTION
BRAND°"INJHESE-SEGMENTS (19g3".. SDS)~
FIRST USUAL BRAND. A30UT 86% OF ALL 18 YEAR OLD SMOKERS CHOOSE A
{
VIRILE AND COOLNESS BRANDS ARE ADOPTED BY 18-20_SMOKERS AS THEIR
,DEVELOPED AMONG'FUBYAS-
THE KEY GROWTH BRANDS -- MARLBORO AND NEWPORT, ARE WELL
r- _y ,It :
NSTON AND KOOLt HAVE. THEIR .STRONGEST APPEAL IN ~1GE,,GROUPS
M ~ . .., . ..:
WHOSE SMOKERS WERE 18 WHEN THESE BRANDS WERE POPULAR AMONG
FUBYAS
A('E GROUP W1NLSIQK
,.+# ! 18-20 41
21-24 53~
25-29 76
30-34 103
35-39 132
40-44 145
45-49 127
50-54 107
55-59 106
60 PLUs 99
SOURCE: 1984 TRACKER
~
102 270
j , 94,. 188
133 144
139 118
84 90
73 67
71 45
75 44
104 36
95 30
159
142
321
292
1187
I
'. -YOM FIARKETs-, DYNgMICS',.,.
" ` AGE OF° ADOPT ION
MODERATION;$EGMENT.-BRANDS ARE NOT LIKELY TO BE FIRSTASUAL"
BRANDS. THE AGE AT WHICH SMOKERS TEND TO BECOME INCREASINGLY
INTERESTED IN MODERATION BRANDS IS 21-29. -
MERIT'S LARGEST BDVS ARE IN AGES 21-34.
VANTAGE'S APPEAL IS HIGHEST IN AGES 30-39
.
BRAND DEVEL0PMEI.T
BY_AGE
; A6E" 68QSIP,
vaNaGE_
W. ~dfs.~°* 'R':...~
gu
18-20 61, ,..,.-.
21-24 68 120
25-29 96 135
30-34 115 150
35-39 129 106
40-44 107 86
45-45 123 97
50-54 101 89
55-59 85 62
60 PLUS 106 53
,
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