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Question. Are Younger Adult Smokers Important? (RJR,'85)

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From: anne@tobaccodocuments.org
Date: Sat, 09/11/04

Anne Landman, Research Specialist

Posting Date: Saturday, September 11, 2004

Question. Are Younger Adult Smokers Important? Company/Source: R.J. Reynolds Document Date: 04 Feb 1985 Length: 108 pages Bates No. 504447299/7406
`URL: http://tobaccodocuments.org/landman/504447299-7406.html` `PDF Format: http://www.legacy.library.ucsf.edu/cgi/getdoc?tid=xow65d00&fmt=pdf&ref=results`

This R.J.Reynolds document, "Are Younger Adult Smokers Important?," explores marketing techniques that have been effective at convincing young people to use particular products and brands.

Page 11 (Bates No. 504447309) states, "We can do it (others have)," and goes on to describe the success other brands have achieved among young adults, using as prime examples Jack Daniels bourbon ("the Marlboro of Bourbons") and Budweiser beer. It discusses the benefits of a product having a mystique, of the product's portrayal as a "status symbol" to the "target," and of giving the product an aura of being "hard to get." Promotional merchandise, "especially clothing," is a "major element of Jack Daniels' marketing program" because it "converts YAs [young adults] into walking billboards." The document further talks about what is important to FUBYAS [First Usual Brand Young Adult Smokers] and how these psychological needs can be leveraged, like the need to belong to their peer group, the need to fit in while also being different, a need for self-identity, a desire to "live on the edge," to be seen as successful, etc.

This document shows how marketers view consumers, particularly young people, which is not unlike how fishermen view various types of bait, nets, etc. In addition, this document links tobacco marketing techniques to alcohol marketing techniques. The two are still linked today. R.J. Reynolds is currently running a campaign that implements some of the ideas in this document in a current campaign to increase sales and consumption of flavored cigarettes that appear designed to appeal to young people, with names like :"Kauai Kolada" and "Twista Lime." One ad for these cigarettes shows a young woman in Hawaiian garb reclining on top of two giant packs of cigarettes (of the above flavors) with what appears to be an alcoholic beverage in a coconut in one hand, and a cigarette in the other. A number of people and groups have started lodging protests about the marketing campaign for exploiting Hawaii to market cigarettes, and for marketing cigarettes that appeal to youth.

Quotes: There are 2 distinct classes of YAS FUBYAS - Those younger adults who are already smokers but have reached the stage of choosing a Furst Usual Brand (First Usual Brand Younger Adult Smokers). Switchers - Younger adult smokers who have already chosen a first usual brand. ...FUBYAS, not switchers, have driven the success of the key brands of this centry. They are leading indicators of growth and decline. 2. Strong performance among FUBYAS smokers is CRITICAL to long term share in the total smoker market, for both brands and companies. Althought switching can be important in the near-term market, LOYALTY and thus FUB smokers, are the driving force over the long term. Brands/Companies which are OVERDEVELOPED among FUBYAS seem to gain SOM [share of market] EFFORTLESSLY, year after year, even if they suffer dramatic switching losses (e.g. Marlboro). Brand/Companies which are UNDERDEVELOPED among FUBYAS must constantly work hard to attract switchers -- to move these nearly immovable loyal smokers. QUESTION: Are Younger Adult Smokers Important to RJR? Younger Adult Smokers -- FUBYAS -- are a KEY CHALLENGE to RJR because --Despite strong switching performance year after year...RJR's total smoker share has not kept pace with PM. The total market gap traces directly to younger adult smokers and the long term impact of their brand loyalty. ...PURPOSE To build on the Younger Adult Smoker Opportunity analysis... to move from problem identification analysis to WHAT WE CAN DO ABOUT IT --Overall strategy --Relevant on-target positionings --Executional guidelines --How to REACH them and catch their interest. GOAL: To give INSIGHT into ACTIONS which can improve RJR performance among FUBYAS... SUCCESSFUL MARKETING TO YOUNGER ADULT SMOKERS WE CAN DO IT (Others have) Start with basic principles... Know the target inside out... Make it look right to YAS eyes We can do it -- others did! Two examples of Brands that Did It -- and How: Jack Daniel's - The Marlboro of bourbons Budweiser - Turning a big brand around ...JD rose from #9 among bourbons in 1974 to #2 by 1979 and has since run neck and neck with Jim Beam, long time market leader. JD's age profile also resembles Marlboros and suggests that the brand's growth may be a function of aging and brand loyalty, similar to Marlboro or Newport... JD targets younger adults...it's marketing strategy has enabled JD to do extremely well among well-educated, affluent 18-34 year old males, especially college males "by whom it is perceived as a status symbol" (Ad Age 8/4/80). JD DOES CUSTOM SELECT ITS BOOKS TO REFLECT BOTH ITS TARGET AND ITS IMAGE- -- YOUNGER ADULT - JD PUTS MORE "PAGES" IN ROLLING STONE THAN ANY OTHER BOOK (1982)- - THE LIKES OF GAMES, DISCOVER, AND MOTHER EARTH NEWS, WHICH OTHER BOURBONS RARELY TOUCH. -- "PREMIUM" - DOUBLE OTHER BOURBONS' EXPOSURE IN BIG BUSINESS (E.G. FORTUNE) AND EDUCATED UPSCALE (E.G. HARPERS, SPORTS ILLUSTRATED OR SOUTHERN LIVING. - Low EMPHASIS ON "TRADITIONAL" BOURBON VEHICLES LIKE SPORTS ILLUSTRATED OR SOUTHERN LIVING- - NO BLACK BOOKS. ---------------------------------------------------------------
Company:	R.J. Reynolds
Author:	Presumed corporate author, R.J. Reynolds
Recipient:	Presumed corporate recipient, R.J. Reynolds
Region:	United States
Type:	REPORT
Named Person:	Bogart, H. Rayburn, S. Dirksen, E. Daniels, C. Daniels, J. Yankelovich Simmons Jovan Maxwell Swing, E. Busch, A.
Subject:	target market Target/Low-Income (Target Groups) Target/Young Adults (Target Groups)

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