MEDIACOMPANY · COP MEDIACOMPANY 1994 £1.47m 1995 £0.89m 1996(to Nov) £0.99m 1995/1996activity...

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


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


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


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


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


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


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


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


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


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


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


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

MEDIACOMPANY · COP MEDIACOMPANY 1994 £1.47m 1995 £0.89m 1996(to Nov) £0.99m 1995/1996activity...

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