Daily Doc: RJR, Dec 2, 1977: Targeting Cigarettes at African Americans
Daily Doc: Targeting Cigarettes at African Americans
Title: Black Market Analysis
RJR, Dec 2, 1977
Bates #: 500384796 -4797
February 14, 2001
This R.J. Reynolds document shows that RJR had an interest in targeting African Americans for their products. Here a marketing specialist recommends that RJR consider designing a cigarette just for this ethnic group:
"RJR's business among Blacks is underdeveloped.... Further, given their strong preference for menthol flavor, we probably need to devote more attention to Blacks than before in the development of our marketing plans...In fact, I even feel that a project designed to develop a cigarette for Blacks may be a viable business proposition."The document also reveals that a disproportionately large segment of African American smokers preferred menthol compared to caucasian smokers. The marketing company also noted that the incidence of smoking was dropping among caucasians but not among African-Americans, their interpretation of this being that it was a good thing, since it assured the industry of a solid cigarette market among African Americans.
CITATION
Title: Black Market Analysis
Type of Document: Letter
Author: GASPAR AP
Recipient: JOHNSON AH
Date: 19771202
Site: R.J. Reynolds Tobacco Document Site http://www.rjrtdocs.com/rjrtdocs/frames.html
Page Count 2
Bates No. 500384796 -4797
URL: The RJR Site does not support transfer of URLs. To see this document, go to the RJR site at http://www.rjrtdocs.com/rjrtdocs/frames.html, and enter as search criteria the phrase "Black Market Analysis."
Litigation Usage: None yet
Search Criteria: "Black Market Analysis" on the RJR site
QUOTES
Attached is Ms. Thale's excellent review of available marketing data concerning Blacks. The most salient points in her review are as follows:
1) Black population is big and growing. Although representing only 11% of total U.S. population, the absolute size is roughly 25MM and is expected to be around 28MM by 1982 (a growth of about 12% in five years)...
2) Within the last 30-40 years, Blacks have moved from a predominant concentration in the rural South to a position where about half now live in the North and West, principally in the central cities. Of particular interest to us, given RJR's weakness in metro areas, is the fact that in the top 10 metro areas Black account for nearly 1/3 of total population...
3) Incidence of smoking among Black young adults is higher than among whites...This difference becomes even more significant in light of the fact that about 2/3 of the Black population is under 35 versus only 57% of whites. Further, it should be noted that while smoking incidence among Blacks has remained essentially the same in the last five years (38%), the corresponding number for whites has dropped significantly (from 38% to 32%).
4. Nearly half of Black smokers (46%) smoke menthol. Even more amazing, 83% of the 18-24 age group smoke a menthol cigarette.
5. Based on the 1974 Segmentation Study, Black smokers seem to have more liberal values than whites...
6. RJR's business among Blacks is underdeveloped. The Company's share of Black smokers is only 28%...
The above findings indicate that a solid marketing program targeted against Blacks will go a long way to help us address RJR's weakness among young adults and in metro areas. Further, given their strong preference for menthol flavor, we probably need to devote more attention to Blacks than before in the development of our marketing plans...In fact, I even feel that a project designed to develop a cigarette for Blacks may be a viable business proposition.
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