Daily Doc: RJR, Jan 1, 1989: RJR: Seeking 'Replacement Smokers'
Daily Doc: RJR: Seeking 'Replacement Smokers
Title: Camel Y&R Orientation
RJR, Jan 1, 1989
Bates #: 507241613/1838
February 18, 2001
This R.J. Reynolds document from 1989 refers to young people as "the only source of replacement smokers." It acknowledges the importance of young people to the future of tobacco industry profits, saying
"[Younger adult smokers] are the only source of replacement smokers.It also reveals that younger smokers are important to the industry's future growth because they both exhibit strong brand loyalty (as many smokers do) and because young people increase their smoking rates as they age:
-- Less than one-third of smokers start after age 18.
-- Only 5% of smokers start after age 24."
"The value of FUBYAS [first usual brand younger adult smokers] compounds over time due to extreme brand loyalty and rate per day increases.This statement is particularly interesting in light of tobacco industry's long-time argument that cigarettes aren't addictive because smokers don't show tolerance for nicotine. Tolerance, or increasing the amount of a drug required for to achieve a "high," is a hallmark criteria defining substance addiction.
-- Of all smokers who chose Marlboro as a FUB in the mid-1970's, 41% still smoke the brand.
-- Rate per day increases 30% between ages 18 and 35."
The document also reveals RJR's admiration for the Jack Daniels Whiskey and Budweiser Beer ad campaigns, and considered them models for going after young people. Among many other things, they admired how Jack Daniels "not only reached YA consumers but converted YA's into walking billboards..." by selling promotional clothing like T-shirts and ballcaps [remember, you don't have to be 21 to wear a shirt!]. They also discuss how Jack Daniel's (JD) ads portrayed an "authenticity" and "mystique" that appealed to young people, and emphasized, importantly, how JD gave their product the air of being "illicit" (which we know appeals strongly to the rebelliousness of youth):
"JD has a mystique, some of which is accidental...But JD helps the mystique. Its distillery is advertised to be nestled in the foothills of the Cumberland Mountains in Lynchburg, TN, pop. 361, and in a dry county (therefore 'illicit')."They admired how Budweiser beer "went to work on younger adults," and noted that "the payoff was big."
Clearly young people are corporate America's battleground, and especially so for the alcohol and nicotine industries. How many parents know that these corporations are drooling over young people this way? How can a line truly be drawn in an ad campaign between appealing to a sixteen year old and an 18 year old?
CITATION
Title: Camel Y&R Orientation
Company: R.J. Reynolds Tobacco Company
Type of Document: Presentation
Author: N/A [presumed corporate author, R.J. Reynolds]
Recipient: N/A
Date: 19890101
Site: Tobacco Documents Online http://www.tobaccodocuments.org/
Page Count 225 (by
Bates No.'s)
Bates No. 507241613/1838
URL: http://www.tobaccodocuments.org/view.cfm?docid=TE12989&source=MNTE&ShowImages=yes
Litigation Usage: Minnesota Trial Exhibit TE 12989 Search Criteria: "litter" on TDO
(NOTE: The acronym YAS stands for Younger Adult Smokers. "Units" refers to cigarettes. "We sold one billion units" means "we sold one billion cigarettes." Most of the information in this posting can be found within the first 35 pages of the document.)
QUOTES
YOUNGER ADULT SMOKERS
STRATEGIC IMPORTANCE
1. Each year 1.0 MM new adult smokers enter the cigarette market -- 2.0 share points.
2. YAS are the only source of replacement smokers.
-- Less than one-third of smokers start after age 18.
-- Only 5% of smokers start after age 24.
3. First Usual Brand Younger Adult Smokers (FUBYAS) drive the growth of Marlboro and Newport.
4. The value of FUBYAS compounds over time due to extreme brand loyalty and rate per day increases.
-- Of all smokers who chose Marlboro as a FUB in the mid-1970's, 41% still smoke the brand. -- Rate per day increases 30% between ages 18 and 35.
5. RJR is substantially underdeveloped and declining in share of 18-20 years old smokers.
...Every year, P. Morris gains 1.3 share points due to their strength among YAS while RJR loses 0.6 points annually....RJR will lose a lot of business if its decline among YAS continues...about 14 points over 20 years.
BENEFIT
If RJR achieves YAS objective, its total share of smokers will begin to grow in 1995, reaching 20% in 20 years....In comparison to results under the current decline, benefits of a successful YAS program are:
Avoid major loss
Establish growth...
Cumulative 20 year gain of 572 billion units.
PURPOSE:
--To move from problem identification to what we can do about it. --To provide insights into actions which can improve RJR performance among FUBYAS.
...SUCCESSFUL MARKETING TO YOUNGER ADULT SMOKERS...
--Knowing the target, market trends, mindsets...Making it look right to YAS eyes, "Lifestyle Groups" YAS know...Cues and Symbols...
[Jack Daniels whiskey] is an example of a viable positioning, executed in a "non-standard" but authentic and unpretentious way, which not only reached YA consumers but converted YA's into walking billboards...
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