A REVIEW OF COMPETITIVE ACTIVITY,EXTRA MILD LAUNCH& 1997 MEDIA PLANS
16TH DECEMBER 1996
MEDIA COMPANY
CIGARSCOMPETITIVE MEDIA REVIEW
1994 - 1996
COPMEDIA
COMPANY
TOTAL
EXPENDITURE
ALL
MEDIA
Hamlet
"
Competitors
COPMEDIA COMPANY SHARE OF VOICE
" Hamlet
Classic
" Cafe Creme
® K. E .Coronets
El H .W
COPMEDIA COMPANY
£m 4
COMPETITORS" USE OF MEDIA
1994
1995
1996 to Nov
RadioPress
" Posters
COPMEDIA COMPANY
1994 £1 .47m1995
£0.89m1996 (to Nov)
£0.99m
1995/1996 activity all press
HENRY WINTERMAN/CAFE CREME
" Oct-Dec 1995 - Cafe Society. 4 colour ads (mainly pages ) in every reviewsection/supplement except Guardian, Observer, Telegraphs and People.
"
April/Jun 1996 - another 'Cafe Society' campaign . Colour pages in wide range ofcolour supplements and reviews and programme journals, reviews and programmejournals . Spend £450k
"
Sept/Nov 1996 - 3rd 'Cafe Society' campaign . Spend £400kColour 25 x 4 coupon activity in June/July for Henry Wintermans Small Cigars - approx£90k.
Last Cafe Creme poster activity was August 1994 (£727,000) .
Only cigar, other than Hamlet, to use radio (December 1994 only)
COPMEDIA COMPANY CLASSIC
" 1994
£0.83m1995£1.84m1996 (to Nov)
£0.07m
Spend heavily biased to posters - 90% of total spend since TV ban .But noposters in 1996 .
" Advertising national, but Scotland upweighted (15% spend) . Granadaalso above average .
"
1995 activity = 3 national poster bursts and DPS in magazines - mostlyprogramme journals
"
1996 activity = coupon response only ('Imperial Cigar Range') .15 x 2 and 20 x3 in broad range of national newspapers on March 31,April 1 and'/2 pages in Sun and Mirror only in May.
COPMEDIA COMPANY KING EDWARD CORONETS
1994
£l .l Om1995
£0.87m1996 (to Nov)
£0.18m
Launch October 1994 ." National posters with Granada/Yorkshire/Anglia upweight (41
spend) ." 3 x colour pages in all popular newspapers plus Daily Express and
Mail on Sunday
1995 - one big national poster burst in February"
Scotland upweight"
No press
1996 - colour 15 x 2 (sports pages) every Sunday (Jan-mid May) inMail on Sunday, N.O.W., Sunday Mirror and Sunday Mail .
HAMLET
CIGARS
1997
Advertising Plans and Rationale
COPMEDIA COMPANY
PLANNING PRINCIPLES
COPMEDIA COMPANY TOWARDS THE MAXIMISATION OF BRAND
ADVERTISING PLANS HAVE BEEN GEARED
The basic Hamlet brand is in good shape- record brand share- 36 years worth of famous advertising- excellent distribution
0
But this is in the context of a declining cigar market
IN 1997 WE WANT TO TRY AND HELPHAMLET'S FUTURE SALES BY ADVERTISING
TOWARDS NEW INITIATIVES
COPMEDIA COMPANY
THIS IS BECAUSE MOST CIGAR SMOKERS ALREADYKNOW EVERYTHING THEY CAN KNOW ABOUT HAMLET
0 Important to keep this font of goodwill topped-up
But to maximise growth opportunities we need to bring in thenew
- Familiarise potential Hamlet smokers with the brand- Successfully establish Hamlet Extra Mild
TWO OBJECTIVES THAT APPEAR TO FIT TOGETHER
COPMEDIA COMPANY
OUR PRIMARY TARGET AUDIENCE NEXT YEAR WILL BETHE CORE CIGAR RECRUITMENT GROUPS
These are cigarette smokers looking to move away fromcigarettes and considering cigars as an alternative
CIGARETTE SMOKERS
YOUR CORE AUDIENCE ARE 25-34's
Source : TGI
18-24CIGARS11 .51
HAMLET10 .29
25-34 27.92 34 .7935-44 23.66 22 .0945-54 16.03 13 .9855-64 9.46 9.3465+ 7.52 2.92
COPMEDIA COMPANY
THERE IS SOME FURTHER EVIDENCE THAT ENHANCES THECHANCE OF HAMLET EXTRA MILD HAVING SPECIFIC APPEAL TO
THESE SMOKERS
SMOKES TRYING TO GIVE UP
THE EXTRA MILD PROPOSITION MIGHT BE OF PARTICULARRELEVANCE TO THESE SMOKERS
Source : TGI
18-24CIGARS9.85
HAMLET
5 .5725-34 23 .13 27.5635-44 25.89 28.6745-54 16.6 16.4355-64 10.22 10.4165+ 9.76 7.21
COPMEDIA COMPANY
A CLEAR TARGET AUDIENCE RATIONALETHEREFORE ARISES
Get Hamlet into the consideration of cigarette smokers whomight see it as an alternative to their current smoking pattern
0 The 25-34.ish group is key to this
Hamlet Extra Mild could be a more compelling proposition forthese smokers than traditional Hamlet
COPMEDIA COMPANY
PRACTICALLY, EXTRA MILD NEEDS i0 MAKEIT"S MARK IN 1997
" Advertising very important in generating awareness
" Advertising might not be available post 1997
COPMEDIA COMPANY ADVERTISING HAMLET EXTRA MILD
Pack shot, announcement launch
M Approach for 1997 is to return to the 'solace in the face ofadversity idea but executionally brand the advertising ExtraMild
Log ic- Impossible to establish another campaign idea- Any attempt likely to cause confusion- Simply doing pack-shots, likely to erode brand equity
We have felt able to change the line because "Happinessis . . . . ." already so famous . New line gives us added Extra Mildbranding
COPMEDIA COMPANY IN 1997 WE HOPE TO BE WORKING IN A FLEXIBLE CREATIVE AND MEDIA ENVIRONMENT
But then utilise different media when great creative workcomes along
Maintaining certain key building blocks- target recruitment smokers- top-up goodwill with existing smokers
Most print/radio media is very difficult for creative expressionsof the Hamlet idea - difficult to tell a story
Keen to use media and timing opportunities that help thecreative work
COPMEDIA COMPANY SUMMARY
HAMLET 1997
Proposition
Product
Audiences
Solace in the face of adversity
Hamlet Extra Mild
Smokers 25-34Existing Hamlet Smokers
Tone of Voice :
Appropriate to the audience
Media
:
Creatively, the most effective way ofreaching these people
COPMEDIA COMPANY
EXTRA MILD LAUNCH
COPMEDIA COMPANY EXTRA MILD LAUNCH
EXPENDITURE £'000S
6 Sheet Posters 662
Coupon Promotion 108
Trade Activity 19
Consumer Press Launch 360
TOTAL £1,149
COPMEDIA COMPANY EXTRA MILD LAUNCH
POSTERS6 SHEETS
"
Creative suitability for upright pack shot
Illumination desirable in Winter months
Dominate a medium (between 1 in 6 and 1 in 7 of all sites)
Proximity to point-of-purchase
Budget 9-662,000
Two-week campaign . December 2 - 15
6116 sites purchased, but approx. 30% were for one week onlyEffective weight = 5160+ sites
All men coverage/frequency
~
POSTAR
60% @ 17OSCAR
87% @37
COPMEDIA COMPANY EXTRA MILD LAUNCH
CONSUMER PRESSCOLOUR 25 X 4"
National press as support medium for 6 sheets
Smaller (but page-dominant) space sizes to secure regularfrequency, as well as mass coverage
Budget: £360,000
Two-week campaign period coinciding with poster burst
Use of regionals where we could not have posters (Manchester,Sheffield, Birmingham and some London boroughs)
All Cigar Smokers coverage/frequency
88% @ 6.4 OTS
COPMEDIA COMPANY EXTRA MILD LAUNCH
COUPON PROMOTIONCOLOUR 25 X 4
" Generate trial of Extra Mild by smokers of Classic
"
November 4 - 10
0
Spend £108,041
"
Cover/frequency - All Cigar Smokers 74.9% @ 2.6All Classic Smokers 78.6% @ 2.9
COPMEDIA COMPANY EXTRA MILD LAUNCH
TRADE PRESSCOLOUR PAGE Execution" Wholesalers
CTNsIndependent GrocersOff-TradePetrol Stations
Sectors not coveredMultiplesLicensed Trade
Spend (including Free-House 1997 Yearbook) £18,685Insert activity in CTN and Convenience Store (Dec 13) fundedseparately
COPMEDIA COMPANY
POSTERSSites
HAMLET1996 MEDIA PLAN
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC£2 15
9C=r) 1,40at)
6,101=heets
£
3 257
662 922
PRESS
2 15Consumer
(Snooker)
(Pride '96)
4
10
Coupon Promo
0Trade (Page)
0<--->
£
32
7
108 19 360 526
CINEMA (60")£
814
RADIOTimelength
1~0"/40'0 30"
£
162 32
194TOTAL £2,456
COPMEDIA COMPANY
1997 MEDIA PLANS
COPMEDIA COMPANY THE MEDIA TASK FOR 1997
~ Continuation of Hamlet branding task, substituting the ExtraMild variant .Broad target market of All Male Cigar Smokers (bias C1 C235-54) requiring mass media, and also Classic Smokers (massmarket with slighter older bias .
Recruit switchers from among cigarette smokers . Identified asMen in the 25-34 age range, particularly those whoseopinions are likely to influence others . In demographic termsthey would be loosely classified as ABC 1 C2 .
COPMEDIA COMPANY A CHANGE IN MEDIA STRATEGY FOR 1997
The key task is establishing the Extra Mild variant - therebyexpanding Hamlet's total share of the market.
The greater share of the media budget should stillbe deployed in mass coverage media
BUT1997 may be the last year in which tobacco advertising isallowedExtra Mild is likely to be a more acceptable choice for theyounger men entering the cigar market either next year orthereafter .
Shift in emphasis 1997 vs 1996 towards gainingswitchers from among cigarette smokers throughthe media which have the closest relationship withthem .
COPMEDIA COMPANY THE ROLE OF MEDIA
POSTERS
Current cigar smokers SwitchersAll Men 25-34 Men
NATIONAL PRESS RADIO CINEMAMAGAZINES YMSP
COPMEDIA COMPANY 1997 BUDGET
£'000SMedia
2,680
Production
500
TOTAL
3,180
COPMEDIA COMPANY 1997 POSTERS
Posters to provide primary creative vehicle for reaching most currentcigar smokers
48 sheets recommended, now that pack recognition for Extra Mildestablished .Big, bold canvas for continuation of Hamlet branding message
Broadcast medium delivering mass audience, but roadside naturedelivers an audience which is biased to : -
" Conurbation biased
Hamlet users are heavy viewers of posters (TGI Index = 151 vs AllAdults)
" Men (110)" Under 55 (115)" ABC I (C2) (114)
CupMEDIA COMPANY 1997 POSTERS
Budget allocation £1 .68 million (63% total)
Recommended weight = 2500 sites per 2 week burst(2,000 "average" sites + 500 premium)
Heavier weight than conventional 2,000 site cigarette burst, in orderto ensure visibility
Site regionality broadly in line with sales, but conurbation biased,and south-east upweighted
Poster activity front-weighted"
Maintain momentum of Extra Mild launch"
Avoid possible tobacco ban
COPMEDIA COMPANY 1997 POSTERS
CURRENT PHASING"
1 st half January - 2500 sites committed
£535,000"
2nd half February - 2500 sites need approval this week
£565,000"
2nd half August - 2500 sites
budget £580,000
But Special Filter and Silk Cut are provisionally planned for August"
All July and September are available as alternatives
COPMEDIA COMPANY REGIONAL 1997 POSTER LAYDOWN
** London & South-East upweighted *Source: OMNIMAS
Cigar* % Hamlet * % Sites ** No. SitesUsers Users
Scotland 7.3 8.9 8 .4 210North 4.5 4.7 4.8 120Yorks & Humberside 7.7 8 .7 8.0 200North-West 10.0 10.6 10.4 280West Midlands 10.8 13.5 13.2 330East Midlands 9.0 9.8 8 .8 220East Anglia 3 .1 2.3 2.4 60Wales 4.4 5.3 4.4 110South-West 9.7 8 .7 4.0 100South-East 23.8 18 .6 20.4 510Greater London 9.8 8 .7 12.8 320Ulster - - 2 .4 60
TOTALS 100 100 100 2500
COPMEDIA COMPANY 1997 POSTERS
Cumulative coverage/frequency - All Men
(SF 47% @ 18 18 - 34 Adults)" 1 burst 56% @ 18
" 2 bu rsts 70% @ 29
" 3 bursts 79% @ 39
COPMEDIA COMPANY 1997 CINEMA
The cinema medium is particularly appropriate demographically toour target market (ABC I C2 Male Smokers 25-34)
They are 41 % more likely than All Adults to be cinema-goers
They are 70% more likely than All Adults to be heavy cinema-goers (1 + per month)
Overall coverage is low, but we are reaching the right people in themost impactful medium
COPMEDIA COMPANY 1997 CINEMA
The televisual Hamlet ads are remembered best, even though theyhave not been seen since 1991
We need to talk to the next generation of potential cigar smokers,through the most powerful medium available - cinema" Televisual medium"
Captive Audience"
Sense of occasion/high attention levels
COPMEDIA COMPANY 1997 CINEMA
1996 ACTIVITYIn 1996, we advertised in 18 cert. only films (e .g . Seven, Eraser,Trainspotting and Casino)
60" commercial over 11 months
Spend £814,125
Average 125 screens per week (2,000 screens nationally)
Estimated 8 .1 m admissions
Approx. cover/frequency (ABC I Men 25 - 34) 21 % @ 3.5
COPMEDIA COMPANY 1997 CINEMA
1997 PROPOSED ACTIVITY
" 50" commercial
Year-round activity (start mid/end January subject to clientapproval), although school holiday periods will be light
Available budget = £875,000, but shorter timelength
E~
similar weight to 1996 can be purchasedfor 2780,000 net
COPMEDIA COMPANY 1997 CINEMA
1997 BUYING CINEMAContract with Cinema Media (80% screens) in place for£1,000,000 worth of screentime at a cost of £700,000(£682,500 net after commission rebate) . i .e . 30% discount
Pearl & Dean (20% screens) to be negotiated . Planned budget£100,000 (£97,500 net)
Await client approval - Cinema Media offer valid until 24/12/96
COPMEDIA COMPANY 1997 CINEMA
1997 PROPOSAL£875,000 budget - planned initial commitment £780,00050" commercialCover/frequency (ABC 1 Men 25-34) 23% @ 3.8January 18 cert . filmsSleepersBeyond the CloudsRumble in The BronxThe QuestYour Beating Heart
Many films are still uncertified
(Thriller - de Niro, Pitt)(Antonioni, Malkovich)
(Chan/Violence)(Martial Arts - Van Damme)
(French/Adultery)
COPMEDIA COMPANY 1997 PRESS
Potential entrants to cigar market from the ABC 1 C2 25-34 smokermarket can be communicated with through YMSP - a medium writtenby them, about them and for them
Probably candidate titles are more mainstream than cult, and olderrather than younger e.g .GQ, Esquire, Sports Mags, Q not Loaded, Sky, Arena
Opportunities to match the medium to the tone of the message
Budget for YMSP has been reduced from £445k to £125k"
Fewer creative executions if DPS or"
Page Executions or"
Fewer titles per burst
COPMEDIA COMPANY 1997 PRESS
EXAMPLE COSTING" If "average" DPS = £6,500
2 bursts of 10 titles each
or3 bursts of 7 titles
" If "average" page = £4,000E-m4 4 bursts of 8 titles each
COPMEDIA COMPANY
HAMLETEXAMPLE MEN'S MAGAZINE SCHEDULE - APRIL ISSUES
Titles
Approx. U.KCirculation (000's)
Performance Bikes
75Max Power
275Penthouse
50Rugby World
41Four Four Two
78GQ
130Esquire
95Maxim
146
TOTALS
890(1,120,000 incl . 25% "overs")
Est. Cost as DPS
£38,000Est. Cost as Stitched-In Inserts
£50,000Est. Cost with Gummed Cards (DPS)
£83,000Est. Cost with Gummed Cards (Page)
£65,000
COPMEDIA COMPANY PLANNING CONSIDERATIONS
Costs and feasibility of a stitched-in insert depends on several factorsSize and weight of insert . All magazines will need an example of theinsert a month in advance of copy-dates, prior to carrying it/costing it .(i .e. mid January for April issues)
A single page insert does not necessarily cost less than a double-pageinsert
Bound-in inserts in saddle-stitched magazines an be a problem as theycan usually be sited in the centre spread only
Number of inserts already carried-Magazines can only carry a finitenumber
" Most magazines require 25% "overs", as up to '/4 of a print-run is notsold . Print-runs/circulations vary enormously by mouth (e .g . promotedcopies will have a bigger print-run)Therefore our circulation estimates are only an approximate guide
COPMEDIA COMPANY PLANNING CONSIDERATIONS
Gummed cards cost more than stitched-in inserts as advertising spacehas to be purchased in conjunction with the cards
Costs and feasibility will again depend on size and weight of card
Examples must be provided to the publication about 3 months prior tocover-date
But a planning rate would be approx. £40 per '000 (+ cost of space
COPMEDIA COMPANY RADIO
Why don't we use more radio? The numbers are good : -" Hamlet smokers index at 121 for listening to commercial radio
(1 + per week)"
Hamlet smokers are Heavy Listeners (Index 117)" Hamlet smokers like Rock Music (Index 177) and Classic hits
(133)
And there is the "Sonic Logo"
1;4
3 radio bursts in 1995 (March, May, Dec/Jan)
Example cost: -" 2 weeks, 30", 45% @ 6 OTH = £225,000
The problem is : -NOBODY REMEMBERS THE ADS
COPMEDIA COMPANY OTHER OPTIONS
The essence of Hamlet advertising is topicality
Cinema and, to a lesser extent, posters require prior commitment, butfunds should be available for short-term topical
National press and radio have necessary qualities of immediacy"
In 1996- Snooker in popular newspapers - February- February 29th - Radio- Gay Pride - Julian Clary
There is flexibility in cinema, poster and magazine budgets for
GOOD IDEAS
COPMEDIA COMPANY HAMLET 1997 MEDIA PLAN
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC£ (000's)
ALL CIGAR SMOKERSPosters48 sheets £535 £565 £580 1,680
2500 Sites per burst79% @ 39 All Men
SWITCHERSCinema50" commercial 23% @ 3 .8 875
ABC 1 Men 25-34
Young Men's Style PressColour DPS
27% @ 3.3 125ABC 1 Men 25-34
Media £2,680Production 500
TOTAL £3,180
1997 PRODUCTION COSTS
Cinema" £250,000
Posters" £200,000
- 3/4 Bursts
Press" £50,000
TOTAL" £500,000