The Hamlet Brand Book
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- Erin Shelton
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1 The Hamlet Brand Book
2 Background
3 CDP Brand Ownership
4 CDP Gallaher Cigar Brands Large Whiffs " Hamlet " Manikin " King Six Small Whiffs " Hamlet Miniatures " B&H Small Cigars " Sobranie Mild Cigars " Panatellas " Hamlet Special " Hamlet Reserve " Falstaff " B&H Panatella
5 CDP Gallaher Ltd. Gallaher Ltd., Members Hill, Brooklands Road, Weybridge, Surrey KTI3 OQU Telephone :
6 CDP Hamlet M Launched in 1963 " Royal College of Physicians and Surgeon Generals report implied cigar smoking to be healthier than cigarette smoking " Market opportunity - medium sized, mild, slim, pack of five priced equivalent to 20 cigarettes All four major brands launched similar products : Classic, Panama, King Edwards Hamlet,
7 CDP Gallaher Organogrom
8 The Market
9 CDP Market Decline " Total Cigar Consumer Sales Volume year to date shows a decline of 6% year on year " Hamlet's market share of the Large Whiff sector is fairly steady at 55% " Total RYO Consumers Sales Volume year to date shows a 1 1 % decline as compared to last year " Total Pipe Tobacco Consumer Sales Volume show a year on year decline of 14% to 15% Source : RAL Nov 1995
10 CDP Total Market Volume A M S N Total Market Volume M 125- i i n 110- s Source : RAL
11 CDP Share of Total Cigars Hamlet Cafe Creme King Miniatures Cafe Creme Mild Castella Edward I~ / Panatellas Coronets H.W. Slim Panatellas Panama Castella Classic Hamlet Source : RAL Nov 1995
12 CDP Trade Sector Shares Total Cigars - UK Consumer Sales /M ultiple CTNs Independant CTNs MIndependant G rocers EMM ult. Grocers & Dept. Stores MC o-ops S p e c is lis t licences MPubs O ff MO ther O n-licenced MS m all others Source : RAL Nov 1995
13 CDP Total Large Whiffs Share of Total Cigar Market " Total Large Whiffs Other Source : RAL Nov 1995
14 CDP Total large Whiff " Gallaher Large Whiff El Imperial UK Large Whiff " Wintermans Large Whiff Other Source : RAL Nov 1995
15 CDP HAMLET IS SLIGHTLY OUT OF LINE WITH THE VOLUME CORE OF THE MARKET Hamlet Profile % I Share of Weekly Consumption % % 65+ 7%
16 CDP PARTLY THIS IS ALL A MATTER OF NOW STATISTICS WORK Because Hamlet does so well against year old smokers, it can't also have a big profile against the year old group In absolute terms, Hamlet is still the biggest brand in all age groups, except for 65+ smokers where its alongside Classic It shouldn't be too surprising that the brand isn't as big everywhere HOWEVER, THERE IS CLEARLY SOMETHING ABOUT HAMLET THAT WORKS TOTALLY WHEN YOU'RE A YOUNGER SMOKERS BUT WEARS OFF THE OLDER YOU GET
17 CDP CHANGE IN TOTAL MARKET SIZE Cigarettes (million) 102,150 90,000 N Cigarettes o Cigars RYO (tones) 5,960 3,000 Cigars (million) 1,440 1,200 Source : TMA
18 CDP Forecasted Market Volume Projected Volumes projected with figures as a percentage of 1993 volumes.
19 The Brand
20 " Gallaher Percentage of Total Market Source : RAL
21 figures include media spend for Sobranie and King 6 3, ,500 2,000 1, These
22 Breakdown of Gallaher Large Whiffs Hamlet Manikin " King Six The breakdown of Gallaher"s share of the large whiff sector is shown. It can be seen that Hamlet accounts for approximately 97% of Gallaher's sales in this sector. Source : RAL Nov 1995
23 small and Large Whiff Shares of Total Market The highest rate of sales decline in cigars and tobacco is 14 to 15%. This is not the case in the small and large whiff sectors that form the greater part of the market. Source : RAL Nov 1995
24 Source : RAL Nov 1995
25 " Hamlet Miniatures B&H Small Cigars N Sobranie Hamlet Miniatures only accounts for 28.3% of the small whiff sector. It still represents the majority of sales in the sector for Gallaher. Source : RAL Nov 1995
26 Large Whiffs Small Whiffs Panatellas Source : RAL Nov 1995
27 " Hamlet Special Hamlet Reserve " Falstaff Source : RAL Nov 1995
28 The Consumer
29 40 of men aged 16+ in GB Cigarettes -24% M Cigars Source : General Household Survey
30 _ a0 C~ O T N M Ict LO (O I~ CO CO CO m CD C) m m m CI) m m C) C) Cn Cn T T T T T T T T T T T T Source : Henly Centre
31 15-19 " Source : Henley Centre
32 Creme All Smokers Larae Whiff Classic Hamlet Cafe Mean Age
33 Hamlet Share of Younger Smokers (%) Clearly other brands are active here - Cafe Creme - At the same time Hamlet's penetration of "heartland" smokers, has increased from 38.44% to 42.43% Source : TO
34 Penetration of Cigar Smoking % 14.55% % 14.85
35 But clearly there are different dynamics at work amongst the key age groups Older Younger Leaving the market Never entering the market WITH THE LACK OF TV WE HAVEN'T BEEN ABLE TO KEEP UP THE INTEREST IN CIGAR SMOKING FOR POTENTIAL RECRUITS
36 It isn't due to what we currently do, its due to what we have done " Huge brand awareness " Distribution Hamlet is the obvious choice for people coming into the market or for more occasional smokers of cigars You won't go wrong with a Hamlet WHAT WE SHOULD RECOGNISE IS THAT THIS IS THEREFORE A VERY PASSIVE BRAND CHOICE AS OPPOSED TO A REALLY ACTIVE DECISION
37 The majority of cigarette smokers are trying to give them up because of costs Once in the cigar world they can see that other brands have more of a value positioning, than Hamlet " Panama " Classic " For some, Cafe Creme
38 CIGA R SMOKERS Spend money more carefully now Budget when, shopping Outside the thinking for Hamlet this is a market dynamic that clearly invites new 96
39 The Advertising
40 " Hamlet has no product advantage " Hamlet has no price advantage Hamlet has no packaging advantage " Hamlet has no distribution advantage ADVERTISING REQUIRED TO TURN AN AVERAGE PRODUCT INTO A BRAND
41 " Cigar smoking is a small, personal luxury " A reward for when you deserve one HAPPINESS IS A CIGAR CALLED HAMLET
42 SOLACE IN THE FACE OF ADVERSITY. When the little things in life get you down, shrug your shoulders, have a quiet smoke and rise above it all
43 CONSISTENCY " Proposition " End Line " Music " Construct " Spend, albeit at low weights INGENUITY BEING MORE IMPORTANT THAN INVESTMENT " Topical Opportunities " A brand idea that goes beyond advertising
44 Hamlet is the clear brand leader " 58% Market Share of a 430m market 62 % unprompted advertising awareness Yet...outspent by at least one competitor every year since 1963
45 Hamlet has based a lot of its success on being the brand that young cigar smokers first try : Large Whiff Classic Hamlet % 6% 13% % 17% 26% INDEX % 25% 26% % 19% % 17% 10% % 16% 7% Source : Omnimas
46 CIGAR SMOKERS Spend money more carefully now Budget when ~ shopping Outside the thinking for Hamlet this is a market dynamic that clearly invites new 96
47 We have to step up our presence against younger and potential cigar smokers If we don't do this now, we will probably lose a whole generation of smokers, hastening the decline of the market and our brand Cinema offers us a very powerful tool in bringing in new cigar smokers It meets our overall brief for Hamlet and it's advertising "Ensure people keep thinking about cigars..., [creating] advertising that is a talking point" Mike Imms : April 95
48 .,. N!II~II~'I " Of people trying to give up cigarettes 8.27% smoke cigars m Of these people 73.64% smoke Hamlet 0 It's vital for us to maintain this level of success Source : TGI
49 In this we have been quite successful. Classic's early share growth is now stable and has not hurt us In terms of penetration we have in fact increased our share of smokers amongst the key age groups Hamlet Penetration 93 Of Cigar Smokers M And we are keeping up the pressure against established smokers with our support of King % 50.47% % 42.52% % 37.48%
50 Hamlet Share Of Younger Smokers % 47.35% % 47.79% Clearly other brands are active here - Cafe Creme Source : TGI
51 Penetration Of Cigar Smoking % 14.55% % 14.85% Clearly our lack of TV makes it harder for us to maintain and recruit at the same time. At the moment the flow of new people into the brand is under pressure A continuing waning of interest here spells severe problems for Hamlet's future Source : TGI
52 We might well find our advertising and marketing options increasingly limited in the future We will be carrying on our poster presence next year, against the broad base of cigar smokers Radio and selected press will support this and pick up some of our younger audience objectives But we feel that we need to increase our presence against younger smokers
53 Discretely targeted environment - "Alcohol route" - 42% coverage 18-30s - "18+ films - 22% coverage 18-30s 0 'One to One' involvement with the medium Hamlet 'moment' works at its best in a televisual medium and will help establish a Hamlet pedigree for our key recruitment market Achieves objective set by Mike Imms research : "Create advertising that gets talked about"
54 POSTERS - smokers Good audience coverage against bulk of cigar PRESS - Allows us to target broad or narrow, driven by the appropriateness of our execution RADIO - Gives us added presence against younger elements CINEMA - Added presence against younger audience
55 POSTERS - Need very broad appeal PRESS - Can adopt the language of the chosen publication RADIO - Needs to have special appeal to younger audience CINEMA - Opportunity to bring a classic expression of the Hamlet idea to a younger audience
56 1. Recruit people in a way that makes Hamlet a more active choice. Giving us a greater chance of keeping them longer 2. Maintain the value of the brand for more mature smokers
57 This means making people buy into the Hamlet proposition and the whole tradition of Hamlet Re-energising the Hamlet moment for a new audience " Media selection " Creative treatment New recruits shouldn't simply wander into Hamlet as the generic cigar but go into it as the brand for them
58 Keeping the classic Hamlet moment alive for current smokers N Reminding them that Hamlet is worth it Keeping Hamlet ahead of Classic in terms of perceived popularity, stature and reputation
59 We believe it should be with the younger recruits " More long-term profits " If we recruit them in the right way we won't need to worry so much about value later " Existing smokers may need fresh propositions to keep them in the Gallaher fold " We may not have the use of advertising for that much longer to help in our recruitment Investment in active conversion should be a bigger job than maintaining what's there
60 Use the unique features of each medium as a way of creating a fresh expression of the Hamlet moment. " Understanding the way that different medium work " The differing audiences that they attract " The role that we expect the differing medium to play between recruiting and maintaining
61 Keep Hamlet awareness high Giving Hamlet a big brand feel, without being able to use the main awareness medium Keep the classic Hamlet idea alive and contemporary Keep the brand and its advertising as part of our target audience's lives HAVE PEOPLE TAKING ABOUT 0 HAMLET ADVERTISING, IN THE PUB
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