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
_,:= jA GET==DEF'I NITION
: M ARKET4'DYNha=4!'f
THE AGE WHICH SMOKERS TEND TO SWITCH TO CONCERNED AND SAVINGS
BRANDS I S 35-
,THE,..TENDENCY, TO SMOKE -THESE -
44 IN MOST CASES,,
BRANDS INCREASES WITH AGE ALL THE WAY TO AGES 60 PLUS
. .., ,; ,~ .
_! OF=ADOPTI 1N
..iDF':~ '4S 4''^w." .'~ , '
° NON'S APPEAL SKEWS YOUNGER THAN ITS COMPETITORS IN THE
CONCERNED SEGMENT
CENTURYOS APPEAL IS YOUNGER THAN T
HAT OF GENERICS
BQAND-DEyEt,QpMENT
BYAfiE
AGE GROUP m SASLIQII a .; KW, CEN TURY
18-20 6 7 46
21-24 22 22 20 91
~~ C25-29 50 38 33 95
30-34 78 63 611 74
35-39 ~116; 72 99 ~1 031
~ x 40-44 ' 90 ~ 110 121 11 08,
45-49 141 139 ~ 1 03 ~
50-54 153 174 171 97
55-59 151 207 181 48
60 PLUs 210 187 ]I9 11 75
SOURCE: 1984 TRACKER
157
118
141
16fU
TARGET DEFINITION
MARKET"'DYNAMICs"'`'
`
AGE OF
ADOPTM
, ., ,,..
e
DOES NOT
SEEM TO BE A N AG
THERE E OF ADOPTION WHICH HOLDS FOR ALI,.
~~,...,.
STYLISH SEGMENT BRANDS. Two SEPARATE CASES EXIST:
V" $LIMS,,AND, PLAYERS',.',APPEAR TO BE'SMITCHINdBASED BRANDS-
MITH ADOPTION AGES OF 18-24
MORE IS AN OLDER BRAND WITH FIRST SMITCHING OPPORTUNITIES
IN AGES 35-44 AND STRONGEST APPEAL IN AGES 55 PLUS
BRAND DEVELOPMENT
BY AGE
AG_ ESRQLiP Y- SLIMS
PlAYF
RS
lM MSTERL I NG
,
.
»~) ki., , ,
18-20 143 111 13 79 100
21-24 199 179 6 ` ' 96 107
25-29 144 158 50 104 123
30-34 105 108 71 89 101
35-39 86 142 i 108 ~ 113 63
~
40-44 63 65 ~ 116 ~ 113 97
45-49 68 83 ~ 117 ~ 111 99
50-54 72 78 ~ 126 ~ 98 70
55-59 74 28 162 108 155
60 PLUs 45 15 195 87 81
SOURCE: 1984 TRACKER
.
TARGET DEFINITIQN
IMRKET DYNAMICS
S!lMMARY ` .
EACH RJR BRAND NEEDS TO ATTRACT ITS SMOKERS AT THE FIRST
POSSIBLE OPPORTUNITY, WHETHER IT,IS A BRAND WITH A FUBYAS OR"
A SWITCHING STRATEGY
BRANDS WITH FUBYAS APPEAL TEND TO GROW LONG TERM BECAUSE
BRAND LOYALTY TRANSFERS THAT APPEAL TO OLDER AGE GROUPS
CHANGES IN WANTS SEEM TO TRI6GER SWITCHING AS SMOKERS AGE.
CAUSING THEM TO CHANGE SEGMENTS. THE BRAND THAT ATTRACTS
SUCH A~FIRST SWITCH SMOKER" HA:. AN EDGE IN CONVERTING THE
SWITCHER TO A LOYAL SMOKER
H. V.IRILE AND COOLNESS, SEGMENT~,,,BRANDS,,,.,APPEAl.:TO.FUBYAS>.
,.E...~. . , . , .
THEIR COMBINED SOM AMONG 18 YEAR OLD SMOKERS IS OVER HOZ
THEY RETAINED ALL THIS BUSINESS OVER TIME, THEIR SOM WOULD
APPROACH HOS. SINCE THEIR SHARE OF SMOKERS IS MORE THAN 60%
(WITHOUT HAVING NET SWITCHING GAINS), THEY MUST RETAIN ABOUT
70% OF THEIR SMOKERS LONG TERM. THIS REDUCES THE POTENTIAL
FOR OTHER SEGMENTS
3 As SMOKERS AGE THEIR WANTS CHANGE, CREATING SWITCHING
OPPORTUNITIES FOR BRANDS IN OTHER SEGMENTS. THE KEY AGES OF
FIRST OPPORTUNITY ARE:
V SLIMS/PLAYERS: AGES 1H-Zy
MODERATION BRANDS: AGES 21-29
MORE/CONCERNED/SAVINGS BRANDS: AGES 35-44
THERE ARE FOUR KEY PRINCIPLES WHICH SHOULD BE USED IN DEFINING A
BRAND PS TARGET.,,MARKET#,,.'CERTAINLYF,+~ ,,THERE MAY BE- EXCEPTIONS JO THE '
. . ,} ,. .a.,, - : .,.,. .-.~.
RULE, HOWEVER IF ANY OF THE PRINCIPLES ARE NOT FOLLOWED, THERE
SHOULD BE SOLID DOCUMENTED REASONS FOR DOING SO
>
1pRGET'MARKET
KEY PRINCIPLES
F I RST OPP(1RTUN I TY.
EACH R.IR BRAND SHOULD CONSIDER THE AGE OF ADOPTION
APPROPRIATE TO ITS SEGMENT IN CHOOSING ITS TARGET MARKET
AS DESCRIBED EARLIER, THE KEY FUBYAS SEGMENTS ARE VIRIL'E AND
COOLNESS OTHER SEGMENTS RELY ON BRAND SWITCHING FOR THEIR
T..~ w. r FOR D ID BRANDS u.r. nw.
GF~OMTH (Ht USE OF THE PRINCIPLC rVK f~Jf~ DKRI~UJ i~C6YJ:
, ~:~FUBYAS: CAMEL, WINSTON (?).-'AND SALEM',
AGES 18
24: (?)
STERLING
-
, ,,.. ,. t
AGES 21-29: VANTAGE
AGES 35-44: MORE, NOW, CENTURY, AND DORAL
k,
kD
CLEARLY, ThE TARGET MAY BE EXPANDED FOR VARIOUS REASONS BUT THE
AGE OF FIRST OPPORTUNITY IS A'PRIME PROSPECTa GROUP IN
ESTAISL I SH I NG BRAND GROliTH
~
.
~.
, ~.
` TARGET MARKET .
j~EY PRINCIPLES
~RANQ LOYALTY
41
.
IN ORDER TO GROW, A BRAND MUST MAXIMIZE THE BRAND LOYALTY OF ITS
CURRENT SMOKERS. LOYAL SMOKERS CAN PPODUCE VOLUME GROWTH AS RATE
PER DAY INCREASES
IN ADDITION, ALL SUBGROUPS OF A BRAND"S' RANCHISE SHOULD BE
INCLUDED IN EVALUATING PRODUCT, ADVER7ISING,.ETC.IN.ORDER THAT
,.
LOYAL BEHAVIOR IS NOT UNDERMINED BY CHANGES IN MARKETING
ELEMENTS
I
TARGET MARK T
KEY PRINCIPLES
ja=l i 1~RAND~HERIT~t6EI
'
EACH RJR BRAND SHOULD EXCLUDE SMOKER GROUPS FROM ITS TARGET
IF THE BRAND0 S HERITAGE IS NOT COMPATIBLE MITiI THEIR MANTS
IN APPLYING THIS PRINCIPLE. IT IS IMPOfTANT TO NOT OVERLY
RESTRICT A TARGET -- THE INTENT IS TO EXCLUDE OBVIOUS
NON-PROSPECTS. FOR EXAMPLE, VANTAGE MAY~CHOOSE TO TARGET FULL
"` FCl1VOR/VtR1l.E SMOKERS SINCE IT IS CHANGING' MANTS' THAT PRODUCE THE
MOST VALUABLE.SMITCHERS "- THOSE WHO SMITCH AjZ STAY-
POTENTIAL RESTRICTIONS FOR THE TARGETS OF RJR BRANDS ARE THE
FOLLOWING:
WINSTON: NON-MENTHOL
CAMEL: NON-3!FiTHOL, MALES
SALEM: MENTHOL
VANTAGE: UNIQUE FILTER NON-REJECTORS
NOW: Low TAR
z CENTURY/DORAL: ?
STERLING: ?
TARGET'' M R~K T
KE_Y_PgINCIPLES'
;
Y"BRANV _ISSUES
KEY SSUESRFOR`EACHBRAND MUST BE~IDENT4 M% t~a ~ ,;, .
IFIED AND THOROUGHLY
UNDERSTOOD IN TERMS OF ITS IMPACT ON THE MARKET DYNAMICS OF
THAT BRAND'
.
..
., .
FOR,,:E . :.., ..~ ~<. ,._ .,
ACH BRAND THERE ARE MAJOR MARKET.~FOR...CES THAT AFFECT ITS
CHOICE OF STRATEGIES AND ITS TARGET MARKET CLEAR ANALYSIS OF
SPECIFIC CAUSES BEHIND THESE FORCES ARE NEEDED. FOR EXAMPLE
COOLNESS BRANDS ARE DECLINING IN SHARE AMONG WHITE FUBYAS. THE
TARGET DEFINITION.,...
CAUSES OF THIS TREND'ARE NOT KNOWN AND COULD AFFECT SALEM'
IF NO COOLNESS BRAND IS CURRENTLY PROVIDING ACCEPTABLE
IMAGERY AND MARLBORO IS ATTRACTING COOLNESS FUBYAS PROSPECTS
BY DEFAULT -- THEN SALEM MAY WANT TO INCLUDE MARLBORO IN ITS
TARGET, AT LEAST FOR ADVERTISING AND SPENDING DECISIONS
IF SOCIAL UNACCEPTABILITY OF SMOKING IS CAUSING MENTHOL
PROSPECTS (EG PREPS?) TO NOT SMOKE, THEN SALEM MIGHT
CHOOSE TO TARGET:
BLACK FUBYAS
SWITCHERS IN AGES 21-29
jAR GMAR_KET
KEY-PRINCIPLES
BRAND ISSUES (CON'D)`.
~ SOME OF THE ISSUES THAT AFFECT'THE SELECTION OF k1:TARGET FOR ONE
OR MORE RJR BRANDS ARE THE FOLLOMING CLEAR DOCUMENTED ANSWERS
4
SHOULD BE SUPPLIED TO QUESTIONS RELATED TO BRAND TARGETS
DECLINING SHARE OF COOLNESS/MENTliOL.BRANDS AMONG WHITE
FUBYAS.
~DE,CI~IM,I[i6,4,SNARE-,OF..,,..MODERATIOII~AND~CONCERNEDABRANDS4iWoTHErO40-4"-4tsr
. ,
TOTAL MARKET
SMOKER RESISTANCE TO 'FUNNY FILTERSe
u
WINSTON `BAGGAGE~ AMONG,,FUBYASq,;,, ~,; , .,., ;,
:
PERCEPTION OF KOOL AND NEMPORT AS BLAC~KyBRANDS
IN EACH OF THE ABOVE CASES THERE ARE MANY HYPOTHESES WHICH CAN
EXPLAIN THE TREND HOWEVER, HARD ANSWERS ARE NEEDED SINCE A
BRAND'S FUNDAMENTAL EFFORTS HINGE ON WHICH HYPOTHESES ACTUALLY
ARE CORRECT
4
TARGET-MARKET
.,1
DEFINING THE TARGET
THE KEY PRINCIPLES ARE: TO ATTRACT AT FIRST OPPORTUNITY,
MAXIMIZE BRAND LOYALTY, BE CONSISTENT WITH HERITAGE, AND ADDRESS
KEY ISSU~ . THE~L~D AN~U
FUTURE SWITCHERS TO THE BRAND
BRAND,,'S{`TARG
IN APPLYING THE PRINCIPLES TO PRODUCT EVALUTION, POSITIONING,AND
ADVERTISING/PROMOTION TARGETS, THERE ARE SEVERAL SPECIFIC
CONSIDERATIONS:
EACH BRAND 'COMPETES AGAINST''1TS PRIMARY COMPETITOR IN ITS
SEGMENT. THEY VIE WITH EACH OTHER FOR THE PROSPECTS
AVAILABLE. THUS, WE SHOULD USUALLY TEST AGAINST THE SEGMENT
LEADER
QUITE OFTEN BRANDS IN A SEGMENT 'COMPETE FOR' SMOKERS IN A
DIFFERENT SEGMEY.T/CATEGORY IN THIS CASE, THE KEY GROUP IS
SMOKERS WHO ARE LIKELY TO SWITCH, NOT THE SEGMENT/CATEGORY AS
A WHOLE. RECENT SWITCHERS TO THE SEGMENT AND/OR POSITIVE
ATTITUDES TOW:,::U Tb:c BRAND SHOULD BE USED TO APPROXIMATE THE
TARGET
