RYO PRICING. Old Holborn 50g RRP 7.73 Lowest retail price 7.41 UK bootleg 'street price F 'Eastenders' Belgium 1.80
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1 RYO PRICING Old Holborn 50g RRP 7.73 Lowest retail price 7.41 UK bootleg 'street price F 'Eastenders' Belgium 1.80
2 OVERALL UK RYO MARKET w z z0 O Duty Paid 0 Bootleg (GI Forecast) O Bootleg (Additional Potential) Source: Gallaher France, UK Pool/Forecasting Manager
3 SMUGGLED RYO AS % OF TOTAL CONSUMPTION REST OF SOUTH EAST GREATER LONDON SOUTH WEST EAST ANGLIA EAST MIDLANDS WEST MIDLANDS WALES Fm-IMPORTS YORKS/HUMBS NORTH WEST NORTH N. IRELAND SCOTLAND 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
4 NO. OF MALE SMOKERS ~ ] ~ RYO SMOKERS - CIGAR SMOKERS --~ PIPE SMOKERS - - CIGARETTE SMOKERS --~ ,, i M 1997
5 THE RYO MARKET
6 RYO SMOKERS BY CLASS ABC I mc2 o DE ytd
7 INCREASE IN RYO SMOKERS, % 70% 60% 50% 30% 20% 0%
8 RYO SMOKERS BY AGE o35-44 o45-54 " ytd
9 INCREASE IN RYO SMOKING, % 50% 40% 20% 0%
10 NOS. OF 'MOST OFTEN' SMOKERS 1200 T OLD HOLBORN -~- AMBER LEAF f GOLDEN VIRGINIA SAMSON DRUM M 1997
11 RYO BRAND SHARES -'MOST OFTEN' SMOKERS ] r OLD HOLBORN -GOLDEN VIRGINIA -~ SAMSON - DRUM - AMBER LEAF ~ ~ I - 0 ' M 1997
12 Halt Weaken Gallaher Imperial's share OBJECTIVES profitability decline STRATEGIC " "
13 OLD HOLBORN KEY ISSUES " Not attracting converts " Loyal users " Ageing
14 OLD HOLBORN " POSITIVES The definitive rolling tobacco Individual choice Discernment Stronger Flavour " APPEAL TO EXPERIENCED RYO SMOKERS " EXPLORE 'GRADUATION' POSITIONING
15 OLD HOLBORN New Packaging " Initial Research January 1998 " 2nd stage research March 1998 " Introduction July 1998 (?)
16 " Shift in emphasis required " Old Holborn losing share " Amber Leaf potential " NPD for 18-24s
17 BRANDS - DISTRIBUTION -GV OH AMBER DUMA SAMSON RYO -~- ~- CUTTERS - - -~
18 UK RYO VOLUME FORECAST (Duty Paid + Bootleg) OOTHERS " IMPERIAL OGALLAHER
19 UK RYO GROSS MARGIN (Duty Paid + Bootleg) p 25 w t -~- GALLAHER IMPERIAL OTHERS
20 THE LEADERS OLD HOLBORN " Old Fashioned " Downmarket " Dark, strong tobacco GOLDEN VIRGINIA 0 Market Leader Milder Younger Less Downmarket For Women For Students
21 GOLDEN VIRGINIA Marketing Support " Wrapper collection gift offers " The Virginian Magazine " Occasional poster advertising
22 RYO - SHARE OF 16-24'S i,,, 10 ~ OLD HOLBORN AMBER LEAF -~- GOLDEN VIRGINIA - - SAMSON DRUM YTD
23 OTHER COMPETITORS SAMSON, DRUM/DUMA - Losing share - Weaker brands CUTTERS CHOICE/SWAN - Gaining duty paid share - Little bootleg presence
24 ra * z )o * ~ * CONSUMER * * * *-* SALES # SHARES AMBER SWAN SAMSON DARK UK r CUTTERS -f-- DUMA GV ~c ,", * ti
25 AMBER LEAF " Gaining share of Duty Paid " Not chosen by bootleggers " Product liked by G.V. smokers " New packaging next month
26 AMBER LEAF KEY ISSUES " UK Distribution " Adoption by bootleggers " Awareness and trial " Brand Positioning
27 AMBER LEAF A Co-ordinated Approach " Trial through bootleggers and Duty Free " UK promotion/direct mail " Packaging changes " Media
28 AMBER LEAF From March 1998 " 50g pouch to be introduced " Probable delisting of 50g tin " 50 paper booklet with 25g (on-going) " 100 paper booklet with 50g (on-going)
29 AMBER LEAF UK Promotions March/April 1998 Free Tin Promotion " Featured on pack " Featured on papers in 25g/50g packs " Featured with `Free Papers' message on 25g/50g packs Distribution drive using Amber Leaf papers September 1998 Possible on-pack promotion
30 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'?.
31 PHIL Chart 1 RYO ADVERTISING ~-- GV -~- OH CUTTERS - - AMBER )K-- GV - SWAN '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 Page 1
32 Branded 25g Sampling Introduction -Papers OVERVIEW BELGIUM " " "
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