Amber Leaf Briefing: November 1997 (submitted
by M&C Saatchi)
AMBER LEAF
Belgium
Introduction of 50g new design from January
1998.
Introduction of 25g pack from April 1998.
Free papers available (boxed) from April 1998.
Duty Free
Promotions, probably March/April/May using free
tin "kit"?
A CO -ORDINATED
APPROACH
Trial through bootleggers and Duty Free.
UK promotion/direct mail.
Packaging Changes.
Media.
KEY ISSUES
UK Distribution.
Adoption by bootleggers.
Awareness and trial.
Brand Positioning.
Gaining share of Duty Paid.
Not chosen by bootleggers.
Product liked by GV smokers.
New packaging next month.
STRATEGIC OBJECTIVES
Halt Gallaher share decline.
Weaken Imperial's profitability.
STRATEGIC OVERVIEW
Shift in emphasis required.
Old Holborn losing share.
Amber Leaf potential.
NPD for 18-24s.
1. RESEARCH BACKGROUND
Forthcoming legislation regarding the advertising
of tobacco products will virtually wipe-out the opportunity for
tobacco manufacturers to promote their products. As a consequence
of the impending legislation, the relationship between tobacco
manufacturers and independent store-holders has increased in importance.
The effectiveness of customer communications will, in the near
future, be highly dependent upon the strength of relationship
between manufacturer and store-holder.
Against this backdrop, Cognition has conducted
research amongst independent retailers in order to inform the
development of Gallaher's communications with independent retailers.
The global objective of this research is to aid the optimisation
of these communications, as a step toward maximising sell through
the independent sector.
2. RESEARCH OBJECTIVES
These can be summarised as:
1. To identify perceptions of Gallaher in
terms of broad corporate profile and how this is communicated/reflected
through direct marketing, specifically with the aim of enhancing
brand advocacy.
2. To understand the reaction of the independent
sector to direct marketing generally from manufacturers—specifically
direct mail and telephone communication—in order to pinpoint
detailed issues of best/preferred practise from the recipient's
point of view.
3. To evaluate perceptions of Gallaher's
direct marketing, specifically direct mail and telephone. Particularly,
in comparison with that of other tobacco companies, as well as
other manufacturers.
4. To investigate reaction to examples of
Gallaher direct marketing in order to identify details of best
practise.
5. To evaluate the contrast between face-to-face
and indirect communications. Particularly with reference to both:
— Grade C customers, in terms of assessing
the role of direct marketing as a substitute for sales visits.
— Grade A customers, for whom the direct
marketing is a support for sales force activity.
6. To identify opportunities and lessons
that can be taken from manufactures in other categories in terms
of direct marketing.
7. To investigate the rols of trade marketing
activities in Cash and Carry.
11. CONCLUSIONS
AND RECOMMENDATIONS
Gallaher's approach to contact and communications,
from the point of view of the independent retailer, focuses too
much on:
— Admonishment—the policing of
the gantry.
— Hard selling of new products—which
independent retailers believe are often inappropriate for their
customer base.
— Interference with the way the retailer
wants to arrange things in his/her own store.
Independent retailers would prefer the emphasis
to be on:
— Incentivising them to buy more Gallaher
product.
— Helping them sell Gallaher brands
in terms of practical guidance rather than interference.
— Feeling valued by Gallaher through
appropriate forms of contact—where possible with a single
contact with whom they can develop a long term relationship in
which exchange, gift-giving and promise making and keeping take
their place.
Direct mail can make an important contribution
in all these areas with a single document communication (along
the lines of the Gallaher Gazette). Indeed in terms of
specifics we would recommend that the Gazette's role be expanded
to be more along the lines of a trade press publication.
The material included should also be subject
to the filter of satisfying of the first four levels indentified
below:
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 4—BUSINESS INFORMATION
LEVEL 5—AL ELSE LIKELY TO BE REJECTED
The key issues to take out are that such a document
would:
— Be more likely to be retained. Thus
the information within it internalised as part of a retailer being
a brand advocate.
— Generate a greater stand out for
Gallaher direct mail versus the mass of other material received.
— Indirectly increase Gallaher corporate
profile and reconfirm them as a "blue chip" player.
— May go some way towards addressing
a sense of loss that some might be experiencing in terms of on-going
contact.
Whilst such a communication would be an effective
and valued form of contact with retailers it would be most effective
as part of a coherent contact and communications strategy which
included both telephone and face-to-face visits. The case of retailers
who had had in-house sales force contact withdrawn is illustrative.
Considered as a strategic manoeuvre, and in
so far as it has succeeded in making cost savings for Gallaher,
the withdrawal of in-house sale reps from a number of independent
retailers can be considered a success: the retailers continue
to "revere" and sell on the Gallaher brands whilst requiring
less input from Gallaher to achieve this loyalty. The only negative
impact of the change has been an emotional one: that of loyal
retailers feeling they have been abandoned and feeling that their
relationship with Gallher has suffered. In particular many now
feel the loss of a relationship in which facilitates gift-giving
and promise making and keeping, feeling that this has been replaced
either by nothing or by inconsistent and unpredictable contact.
The optimum contact strategy with independent
retailers would probably involve the following components:
— Regular direct mail meeting the specification
outlined above.
— Less frequent (perhaps quarterly)
face-to-face contact with a single individual focusing on incentivisation,
emotional relationship building, gift giving etc.
— Telephone contact preferably with
the main sales coantact—to follow up action points from
visits, keep the relationship warm and allude to the next visit
etc. and/or
— Discreet mystery shopping to police
the gantry.
The telephone contact could also be conducted
by a single "call centre" contact other than the face-to-face
sales contact but it is imperative that this contact is co-ordinated
within Gallaher through some form of contact management system
to ensure consistency and predictability in the relationship from
the perspective of the retailer.
DEVOLUTION
CIGARETTES
Both Scotland (index 90 despite Kensitas) and
Wales (87) are slightly weak areas for Gallaher.
Current movement towards devolution provokes
strong nationalistic sentiment.
Opportunity for nationalistic (but not jingoistic)
cigarette seems to exist).
May extend to areas of England as well—Yorkshire,
Cornwall, London.
STUDENT CIGARETTE
18-24s are a key target and a problem area for
Gallaher.
198 is intended to attack this area, but not
with a specific student focus, more with an urban venturer feel.
Several areas of potential could be investigated
for students:
— commodity, no frills brand (discussed
above);
— brand available only on campus;
— retro, kitsch styling, tapping into
60s/70s/80s style nostalgia (Abba, Jo Bogie etc).
WOMAN'S
CIGARETTE
Smoking remains marginally female in profile,
a bias which is slightly increasing (1989-52.2/47.7, March 1997—53.9/46.1).
Women are heavier smokers of certain niche brands,
but there are none which are overtly female in attitude and approach.
Gallaher, through Silk Cut and Berkeley, has
a strong female franchise.
Opportunity possibly exists for overtly female
targeted cigarette, (perhaps tapping into female cigar smoking
trend?)
Difficult to market, but a niche not yet filled.
MALE, LADDISH,
BLOKEY
Gallaher is strong amongst 18-34s and 18-24s
(although declining, hence 198).
However, amongst 18-24s Gallaher is stronger
amongst women (44 per cent m/o penetration) than men (36 per cent).
In addition, anecdotal evidence is that existing
Gallaher brands lack "maleness" appeal vs (eg) Regal,
Embassy and L&B.
198 is intended to address credibility issue
among all 18-24s, but is not intended to be overtly male.
Opportunity exists, therefore, for a male targeted
brand, perhaps co-branded with Loaded or with scantily clad women
on the cigarette paper!
Brainstorm began by remembering famous and memorable
"big" promotions over the years:
BA's "Go for it America": on one random
day, every seat on every BA flight was to be given away free.
Microsoft paid for the print run of The Times
on the day Windows95 launched.
Pepsi painted lots of things blue (inc Concorde)
the day they launched the new blue can.
Next, ideas for specific Gallaher "Big Bang"
promotions were brainstormed, in three broad areas:
COMPETITIONS
Golden Cigarettes inside packs, creating millionaires
across the country.
Passport to The World: collect coupons (possibly
with specific countries on them) to construct your own travel
plans.
Free flight in Space.
Win a tropical island.
Offer the chance to dive down to see Titanic.
Every pack of cigarettes is guaranteed to win
a prize. All smaller prizes could be branded, and linked to smoking:
lighters, ashtrays, cigarette cases, rolling machines, perhaps
even scissors for Silk Cut.
Offer the opportunity to have something named
after each of the winners.
Win your weight in gold, or sovereigns.
Create a new millionaire every month for the
next 25 years.
Pay off lots of mortgages.
Every single smoker in the country gets a holiday
if they collect enough tokens available in Gallaher packs (enough
tokens to equal four weeks worth of smoking, promoting brand switching
and loyalty, as well as creating a big event).
HEDONISM
Organise the Millennium for people, giving each
winner their dream celebration, or arranging a party in every
town.
Or, a few select winners get flown out to a
Pacific island to see in the Millennium first.
Buy the QE2 when it is decommissioned, for one
large party, attended by competition winners.
Perhaps rally hugely against the ban: encouraging
those who smoke to fight for their right to enjoy themselves and
their freedom, sponsoring National Smoking Day, getting the ban
front of mind.
Sponsored bars and pubs (Gold Bar for B&H
. . .), especially good as an escape for when even other bars
begin to become no-smoking environments.
Encourage smokers to go out for a night on the
tiles and send Gallaher the bill.
Arrange a high-profile festival in Hyde Park,
giving away tickets in packs of cigarettes.
GIVING SOMETHING
BACK
Creat nation-wide building projects—giving
something back to the community.
Sponsored parks in urban areas (Benches and
Hedges).
Vouchers in packs to pay for the tax on your
next pack.
Smokers of Gallaher brands get a free pint in
any branch of a big pub chain. Possibility of some sort of membership/loyalty
scheme.
Pay for branded smoking rooms in otherwise no-smoking
offices—opportunity to make them feel luxurious and special
as a reward for smokers.
Likewise, invest in a rail franchise and run
smoking trains (even use old steam engines).
If your car doesn't have a cigarette lighter,
Gallaher will pay for one to be installed for you.
Sponsor Gay Pride. (If at same time as Ad Ban,
use the slogan "Rights for Fags"?)
Pay pavement artists to draw ambient ads for
Gallaher brands. (And buskers to sing about them?)
OTHER
Organise a Smokers' Demo is Hyde Park before
the Ad Ban comes into effect.
Advertise and market products in well-known
holiday destinations where the ban has no jurisdiction: Balearic
Islands, Amsterdam, Florida etc.
Advertise using billboards on the outside of
foreign embassies in UK (this is not UK territory so should not
be affected by the ban).
Start a cool pirate radio station a la Radio
Carolina, running (amongst others) radio ads for Gallaher brands.
Project logos of all Gallaher brands onto the
ground from the sky late one night, all over the country. This
would be especially effective on New Year's Eve.
Begin using the Internet as an advertising medium.
Issue special coins in packs, collectable before
the ban is in place, redeemable against packs of cigarettes once
the ban is in place.
Organise screenings of uncut films.
Silk Cut to sponsor Elastoplast.
First ads in space/projected onto the moon.
Hire a large high-profile (possibly by railway
line, or in view of big hotel, or near a festival) and plant purple
flowers in shape of Silk Cut mortice.
GALLAHER/TMA
AWARENESS OF
COMMUNICATIONS BAN
CAMPAIGN
Objective:
To heighten awareness of the implications of
a communications ban amongst opinion formers and smokers in order
to put pressure on the Government to reduce the severity of the
ban ie save direct marketing, point of sale and promotions.
We need a rallying cry in order to mobilise
opinion formers and smokers into action.
Possible Routes
1. Undermine Jowell, position her as the
Minister of Bans, undemocratic and rash/hasty decisions. Undermine
other supporters eg Branson (cite connections with Rizla/Virgin).
2. Claim the right to a voice: berate the
Government for not allowing Tobacco companies a say.
3. Arm smokers and opinion formers with
the facts eg £9 billion pa in cigarette tax versus £625
million pa spent on Health, evidence proving that ad bans do not
reduce consumption, smokers have to sign a document saying they
are 18 before they receive anything from their brand.
4. Fly the flag for freedom of speech. Put
forward a campaign against censorship and pro freedom of speech.
Domino theory—who's next?
5. Inform smokers of what the ban will mean
in real terms to them. Eg No free gift promotions, white "own
label" packaging, no coupon collection schemes, no brand
relationship whatsoever.
6. Underground campaign to present the other
side of the argument to journalists and influential contacts.
Targeting
Ads for Opinion formers, PR for smokers/consumers.
Timing.
Research concepts first.
Pre or post White paper?
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