Big Tobacco Markets Blacks by Mike Sawyer a tobacco and smoking foe

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.

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

Quote:

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.

________________________________________________________________________________

Kool 10 S

Today's Date: Wednesday, September 26, 2001
Date of Document: April 17, 1985

This Brown & Williamson (B&W) marketing document proposes that B&W start selling KOOL King cigarettes in packs of 10 cigarettes addition to the usual-size pack containing 20 cigarettes. The writer proposes B&W sell the smaller packs for about half the price of a full pack.

B&W's target market for this proposal is lower-income or unemployed young adult black males.

The B&W marketing employee says that a rationale for selling 10-packs of cigarettes is that it

"Will generate purchase when target audience suffers greatest financial need (just before the next pay check/government check arrives.)"

COMPANY: Brown and Williamson Tobacco Corp.
Type: Memorandum
Author: Forsythe, A.G.
Recipient: Lewis, L.R.; Gravely, L.E.
Subject: Marketing; Market Trends and Projections; Income; Ethnic Groups; Demographics; Consumer Markets; African Americans
Region: United States
Document date: 19850417
Site: Tobacco Documents Online http://www.tobaccodocuments.org/
Bates No.: 542004058/4061
Non-Bates ID# (Trial Exhibit Number, etc.): 166496-166496
URL: http://www.tobaccodocuments.org/view.cfm?source=snapBW&docid=166496&showImages=yes
Notes: The Brown & Williamson Tobacco Documents site is a bear to use. Best to view this on TDO.
No. of Pages: 4
Thanks to: Mirolsaw Kulowski of Poland (and Newark)

Quotes

To: Mr. L.S. Lewis

cc: Mr. R.D. Sharp

Mr. L.E. Gravely

Mr. D.N. Lapere

Mr. J.S. Woods

Mr. L.D. Johnson

From: Mr. A.G. Forsythe

Subject: KOOL 10's

Purpose

To recommend development of a KOOL Kings 10's plan for implementation in test or nationally as soon as possible. KOOL Kings 10's would be priced at the same price per stick so as to sell at about half the price of KOOL 20's. Since the focus of communication would be at POP, 10's would be targeted to KMDP and pack oriented outlets. Judgmentally, the cost (and risk) of 10's is minimal.

Rationale

--Per the just reported 1984 Black Smoker Study results from Larry Gravely, 10's match the smoking behavior/needs of KOOL's Black/young adult target audience.

--50% of Black smokers consume just ten cigarettes per day...

The research provides strong indication that a KOOL 10's represents a major need/opportunity for KOOL.

--50% of KOOL smokers indicated they would be very likely (30%) or somewhat likely (19.3%) to buy a KOOL Kings in a 10's pack at about half the price.

--25% of competitive smokers indicated they would be very likely (12%) or somewhat likely (13.2%) to buy KOOL Kings in a 10's pack at about half the price...

--Demographically, the skew for 10's was young, male, full taste, Kings, unemployed, and pack purchasers. This is consistent with the KOOL target opportunity.

10's represents an opportunity to be a market leader and innovator and re-establish its "in-brand" status.

--Rather than a follow-the-crowd 25's approach, this approach lets KOOL focus on its unique target audience needs.

--The capabilities exist to manufacture a 10's Box (preferred) or a 10's Soft Cup. Judgmentally, the opportunity exists to build a personality for a 10's pack positioned for active young adults -- the Action Pack.

KOOL Kings 10's matches the lower socioeconomic capabilities of the brand's target audience and re-establishes a branded price point well under a dollar.

--Protects against generics intrusion.

--will generate purchase when target audience suffers greatest financial need (just before the next pay check/government check arrives).

Makes trial easier and less costly, especially to lower income target audience consumers for whom trial is more risky...

Posted: Wednesday June 26, 2002

Title: 1990 (900000) New Marketing Ideas. Summary of Programs.

Company: R.J. Reynolds Tobacco Company

Document Date: 1989
Length: 23 pages
Bates No. RJR 507203449/3471

URL on TDO: http://tobaccodocuments.org/rjr/507203449-3471.html#images

URL on RJR site: http://www.rjrtdocs.com/rjrtdocs/image_display.wmt?SEARCH=3&ROW=1&DOC_RANGE=507203449+-3471&CAMEFROM=1&tab=

URL of doc in PDF Format: http://www.rjrtdocs.com/rjrtdocs/image_downloader.wmt?MODE=PDF&DOC_RANGE=507203449%20-3471&CAMEFROM=1&tab=

URL of this posting: http://tobaccodocuments.org/landman/507203449-3471.html#images

This 1990 R.J. Reynolds Tobacco Company (RJR) marketing document proposes an assortment of promotional gimmicks aimed at increasing sales of RJR brands.

One idea was to use personal information (gleaned from RJR's massive database of 40 million smokers) to send each smoker a free gift on his/her birthday: a birthday card and a coupon good for three free packs of an RJR brand. The rationale was:

"Giving consumers a gift on their birthday can create a special relationship between a consumer and a brand that is not possible with any other promotion."

(The irony of helping a customer celebrate his birthday by helping contribute further to his death was apparently lost on RJR's marketing department.)

Other ideas included manipulating "young adult" customers into talking about the brand with their peers by introducing intriguing trivia, puzzles and guessing-game contests conducted through on-pack hints:

"This promotion will further encourage team involvement by consumers making CAMEL a frequent and exciting topic of discussion among target younger adult smokers..."

Perhaps the most twisted idea, however, was introducing a new brand targeted specifically at "inner-city blacks." This brand was to be more "potent" ("20+ mg tar"). Reasons for this include: "(e.g., Blacks drink malt liquor rather than beer)" and, "Blacks are less concerned with tar and nicotine levels." The cigarettes were to be sold in packs of ten, packed upside down in the package, and the package would "have an inner city look to it--possibly a graffiti look."

The rationale for targeting a ten-pack of cigarettes at African-Americans was,

"Blacks smoke fewer cigarettes per day and have less money, making a 10 pack an ideal configuration."

This idea was the basis for RJR's "Uptown" cigarette brand, which was strongly criticized during its test marketing period and ultimately was pulled from the market due to protests. You can read the story of the protests that brought "Uptown" down at http://www.onyx-group.com/Uptown1.htm

Quotes

Program: Special Occasion Promotional Tie-ins Objective

The objective of this program is for RJR core brands to provide promotions that are more directly tied in to special occasions, holidays or other relevant dates.

Description

• Promotions will be developed to correspond with special times of the year including:

-Christmas -New Years -President's Day -Valentines Day -Memorial Day -St. Patrick's Day -4th of July -Labor Day -Halloween -Thanksgiving -April 15 (taxes due) -Consumers' individual birthdays. Consumers' individual birthdays (both franchise and competitive smokers) will be honored with a special gift from the appropriate RJR brand. The consumer will be sent a greeting card which will include a birthday greeting, and a coupon good for three free packs of cigarettes.

Rationale/Benefits

More closely linking promotions with special times during the year will increase the relevance and appeal of our offers and provide a seasonal flavor to our promotions (as we do with our advertising) that is unique in the industry.

• Giving consumers a gift on their birthday can create a special relationship between a consumer and a brand that is not possible with any other promotion. • Date of birth information is available for nearly 40 million smokers via the Direct Marketing data base....

Program: SALEM Refreshest Olympics

Objective

The objective of this program is to develop a unique consumer participation special event to reinforce SALEM's refreshest positioning.

Description

The SALEM Refreshest Olympics will incorporate numerous consumer participation events that relate to SALEM's refreshest positioning and advertising. Events would revolve around symbols of refreshment such as water and ice. Teams of consumers will compete in a number of events for medals, ribbons and prizes. The Refreshest Olympics Trials will be held in numerous cities across the country. Winning teams from across the country will be flown to the site of the Olympic Finals where gold, silver and bronze medals will be awarded to the top finishers in each event.

Rationale/Benefits

• Younger adults enjoy being involved in unique activities with others. The SALEM Refreshest Olympics will provide a fun and exciting event. ° Developing the event to be oriented completely around the "refreshest" theme will provide strong and relevant support for the brand's positioning and advertising.

Program: CAMEL "Smooth Moves" Adventure

Objective

The objective of the CAMEL "Smooth Moves" Adventure is to increase the level of involvement by younger adult target smokers with the CAMEL brand and to reinforce CAMEL's Smooth Character advertising imagery through a unique and involving treasure hunt.

• The CAMEL Smooth Moves Adventure will involve consumers solving the mystery of the lost Golden Camel. The "Archeologist" CAMEL will lead the expedition to find this lost treasure and collect the reward. Clues in the form of puzzles, riddles and logic problems will be contained in each pack of CAMEL via a pack insert. Consumers will solve each individual clue and then put that information together with information from the other available clues to determine the mythical location of the lost Golden Camel. Approximately 50 clues will be available in total. Four to five new clues will be arriving at retail each month with all the clues distributed by the end of a year. At the end of the year consumers will send in detailed descriptions of the location of the lost Golden Camel based on the information provided in the clues. Those correctly identifying the precise location will split the large reward offered for the treasure's safe return. The value of the reward will be based on the equivalent value of the gold in the lost Camel (specific value to be determined).

Rationale/Benefits

• Younger adult smokers enjoy games, riddles and puzzles.

The CAMEL Smooth Moves Adventure will leverage this interest in a unique and involving way.

• This promotion will create excitement and on-going interest in the brand as consumers solve individual clues and make progress toward solving the mystery. • This promotion will further encourage team involvement by consumers making CAMEL a frequent and exciting topic of discussion among target younger adult smokers. • In addition to each pack insert being a clue to the mystery, these inserts will also be a fun and challenging exercise even for those who do not wish to become fully involved in the adventure and attempt to solve the mystery.

Program: CAMEL "Rough Rolled" Cigarettes

Objective

The objective of this program is to reinforce the uniqueness of the CAMEL brand to younger adult smokers through the introduction of a line extension that is visually unique. Description CAMEL "Rough Rolled" cigarettes will be a line extension for CAMEL which will be a rough, uneven cigarette that will be uniquely different and create an unmistakable visual identity for those who smoke it. To support its masculine heritage, this line extension will be introduced in only a full flavor 85mm box style. The product will be targeted to younger adult smokers who desire to make a statement with the cigarette they smoke, even after it is out of the pack. The product will be positioned as a real cigarette With real tobacco taste, for those who really enjoy smoking.

Rationale/Benefits

• Younger adults are attracted to product and images that allow them to make a statement about themselves. CAMEL Rough Rolled cigarettes will enable the younger adult smoker to use a product that is unique and a cigarette that makes a statement about the user even when it is out of the pack because of its clear visual difference.

Program: CAMEL's Convenience Store Parking Lot Program

Objective

The objective of this program is to provide CAMEL with a unique and impactful alternative media form that will reach target younger adult smokers where they tend to purchase their cigarettes most often.

Description

CAMEL will dominate the parking lots at convenience stores through the use of an innovative approach-- providing and maintaining parking space markings, curbs and direction arrows that include the brand's logo, name or cigarette facsimile. See attachment for example program.

Rationale/Benefits Younger adult smokers tend to buy their cigarettes at convenience stores. The CAMEL convenience store parking lot program is a unique way of providing CAMEL with continuous advertising presence at a key retail outlet type. Further, this program can be tied in effectively with the national Pack Action Program on CAMEL. • The store owner will appreciate CAMEL providing a service that he would otherwise have to pay for (i.e., relining the parking lot periodically).

Program: Inner-City Black Targeted Brand

Objective

The objective of this program is to develop and introduce a distinctive cigarette brand targeted at the inner-city Black smoker.

Description

This brand will leverage the Black consumers' desire to use products which:

--are distinctive and are associated primarily with Blacks, and

--are more "potent" (e.g., Blacks drink malt liquor rather than beer).

This brand will incorporate many distinct features which will appeal to the Black smoker.

--Product Description

--menthol with strong tobacco taste

--20+ mg. of tar

--cork tipping -

--larger circumference

--shorter filter

Rationale

--Black smokers primarily smoke cork tipped full flavor menthol cigarettes.

--Blacks are less concerned with tar and nicotine levels.

--The larger circumference and shorter filter will provide a distinctive look and feel. Will also and provide support to the more "potent" delivery benefit.

--Packaging Description --soft pack and/or box with 10 cigarettes per pack.

-T-he cigarettes will be placed in the package with the filter end down and the tobacco end up.

--The packaging will have an inner city look to it--possibly a graffiti look (see attachment for a potential package design).

Rationale

-Blacks smoke fewer cigarettes per day and have less money making a 10 pack an ideal configuration.

----------------------------------------------------------------------------------------

Quotes:

BACKGROUND:

Reversing RJR's declining trend among younger adult Black smokers is key to the company's long-term growth potential. As a result, a Black YAS Initiative will be launched into lead market in 1989 with the objective of reversing RJR's declining share among Black YAS. All marketing resources will focus behind SALEM and against inner city Blacks. This is because SALEM is an acceptable choice for Black YAS and currently accounts for approximately two-thirds of RJR's share of Black YAS. Additionally the focus will be against inner city Blacks since the majority of Blacks, 60%, live in urban inner city areas.

The program will be comprised of new, creative promotion, and field marketing events on a local basis against inner city young adult Black smokers. The advertising agency, LKP, completed their first creative exploratory resulting in six different creative approaches/campaigns...

SUMMARY OF FINDINGS/KEY HYPOTHESES:

...The ingoing hypothesis that the new creative for SALEM is more appealing and relevant to younger adult inner city Black smokers than is the current "Refreshest" campaign seems to be correct for two of the campaigns - "Smokin'" and "Fresh On The Scene."

The strength of the "Smokin'" campaign was the visuals, particularly the "Heroes" and "Percy's Palace" executions. The strength and appeal of these executions was a result of the way the models portrayed these Black smokers in a positive situation with which they could relate -- when one dresses up, goes out on the town, and has a good time. The models were dressed fashionable, the way people they admire would dress, but not too far out of their reach. There was action and color in the visuals which appeared to enhance respondents' positive emotional reaction to these executions. They also liked one way the male model had "center stage" and was in charge with his girl (female model) on his arm.

....The groups' reaction was also consistent with our ingoing hypothesis that the new creative uses language that is relevant and exciting with "Fresh on the Scene" by far the strongest copy as discussed above. The only concern with this copy is that respondents are expecting SALEM to taste different, but better. If they discover the same light tasting, minty product, they may be disappointed since "Fresh on the Scene" promises something new. Other copy that was not as strong but also liked by respondents included "Smokin' at Heroe's," "Word. Smooth" and "Fresh like Lamont." All utilized language that was more relevant to these respondents because it was language they used. (A glossary of slanguage used by these target smokers is included in Attachment II)...

INNER CITY BLACK CREATIVE EXPLORATORY (MRD #88-12121)

Six focus group sessions were conducted in Chicago, Illinois December 19 and 20. All groups were comprised of 18-24 year old (with the majority being 18-20) downscale inner city Black smokers of Newport and Kool. There were 4 male focus groups and 2 female groups.

Smokers were recruited to be representative of inner city Blacks via screening from designated zip code areas identified as having a 70% or greater Black population density. Smokers were downscale with annual household incomes less than $20,000 and had no more than a high school education.

HYPOTHESES EXPLORED

Hypotheses explored included:

New creative for SALEM is more appealing and relevant to younger adult inner city Black smokers than is the current "Refreshest" campaign.
New creative communicates that SALEM is a brand for younger adult Black smokers.
New creative uses language that is relevant and exciting.
New creative is impactful and would be intrusive in the inner city Black environment.

DETAILED SUMMARY OF FINDINGS:

1. Lifestyle/Language Exploratory

A. Clubs

Virtually all respondents liked to go to clubs. Most preferred to go with friends versus a date. This is most likely due to the fact that these consumers do not have a lot of money as well as problems with their own self esteem which makes dating stressful. Sometimes they like to dress up when they go to clubs, but most of the time they like to go casually dressed...

B. Language

Younger adult inner city Black smokers definitely have their own language. They have specific words/phrases (i.e. slanguage) they use to describe a certain type of person or situation. For example:

Black YAS Slanguage

A very masculine person            He's on, sexy

A person you respect                  He's cool, straight, strapped

A person who has status             A suit

What's "in"                                  It's going on, it's on, it's happening, it's fresh

A complete list of Black YAS slanguage used in the focus groups and their meaning is included in the Attachment II...

ATTACHMENT II

Younger Adult Inner City Black Smokers Slanguage

Word/Phrase Meaning

Strags Women (uncomplimentary)

Kool was "first big kick" Kool used to be big popular brand

Squares Cigarettes

Straight Good, cool

Hang at To hang out at some place

A suit A respected man, a person who has status

Word Profound, heavy

Fresh Image - Hip, with it, sexy, bad

Product - cool, mint, light

When you want to cool out Have a good time

He's cool/straight/strapped A person you respect

It's going on, 'withit', happening Something that's in

You're a free agent Single or no date

He's on, sexy A very masculine person

You're out of here To leave

I ain't the one Not someone's girlfriend

Won't give him the play To flirt

Cooling out Relaxing

PHYSICAL MOVEMENT MEANING

"Respondent" snapping fingers OK

------------------------------------------------------------------------------------------------------------------------------------------------------

Notes
ACRONYMS: YAS stands for Young Adult Smokers. BYAS stands for Black Young Adult Smokers. This document was cited in a deposition of an RJR employee, Lynn Beasley, in the Mangini case.

Company:

R.J. Reynolds Tobacco USA

Author:

Hunter, CS

Recipient:

Creighton, FV

Subject:

marketing research
target market
Target/ethnic (targeting ethnic markets)
Target/Low-Income (Target Groups)
Target/Young Adults (Target Groups)

Region:

United States

Litigation:

MINNESOTA 1RFP93; TEXAS COURT ORDER 19970811; WALLACE 1RFP1

Type:

Marketing Research Report

Operation/Project:

Quotes

Program: Special Occasion Promotional Tie-ins Objective

The objective of this program is for RJR core brands to provide promotions that are more directly tied in to special occasions, holidays or other relevant dates.

Description

• Promotions will be developed to correspond with special times of the year including:

Rationale/Benefits

Program: SALEM Refreshest Olympics

Objective

The objective of this program is to develop a unique consumer participation special event to reinforce SALEM's refreshest positioning.

Description

Rationale/Benefits

Program: CAMEL "Smooth Moves" Adventure

Objective

Rationale/Benefits

• Younger adult smokers enjoy games, riddles and puzzles.

The CAMEL Smooth Moves Adventure will leverage this interest in a unique and involving way.

Program: CAMEL "Rough Rolled" Cigarettes

Objective

Rationale/Benefits

Program: CAMEL's Convenience Store Parking Lot Program

Objective

Description

Program: Inner-City Black Targeted Brand

Objective

The objective of this program is to develop and introduce a distinctive cigarette brand targeted at the inner-city Black smoker.

Description

This brand will leverage the Black consumers' desire to use products which:

--are distinctive and are associated primarily with Blacks, and

--are more "potent" (e.g., Blacks drink malt liquor rather than beer).

This brand will incorporate many distinct features which will appeal to the Black smoker.

--Product Description

--menthol with strong tobacco taste

--20+ mg. of tar

--cork tipping -

--larger circumference

--shorter filter

Rationale

--Black smokers primarily smoke cork tipped full flavor menthol cigarettes.

--Blacks are less concerned with tar and nicotine levels.

--The larger circumference and shorter filter will provide a distinctive look and feel. Will also and provide support to the more "potent" delivery benefit.

--Packaging Description --soft pack and/or box with 10 cigarettes per pack.

-T-he cigarettes will be placed in the package with the filter end down and the tobacco end up.

--The packaging will have an inner city look to it--possibly a graffiti look (see attachment for a potential package design).

Rationale

-Blacks smoke fewer cigarettes per day and have less money making a 10 pack an ideal configuration.

----------------------------------------------------------------------------------------

Notes
For document researchers, the "Uptown" cigarette project was also referred to within RJR's documents as "UT".

----------------------------------------------------------------------------------------

Company:

R.J. Reynolds Tobacco Company

Author:

R.J. Reynolds (corporate author, inferred)

Recipient:

R.J. Reynolds Tobacco Company

Subject:

target market
Target/ethnic (targeting ethnic markets)
Target/Low-Income (Target Groups)
Target/Young Adults (Target Groups)
marketing
marketing research
marketing strategy

Region:

United States

Named Person:

RJR

Operation/Project:

Uptown cigarettes

Type:

REPORT

Posted by Mike Sawyer a tobacco and smoking foe and discussed at the Selma, Alabama City Council in October of 2003, by Mike Sawyer

MARKETING RESEARCH REPORT. INNER CITY BLACK CREATIVE EXPLORATORY
Document Date: 16 Jan 1989 Length: 35 pages Bates No. 507119955/9990 URL on TDO: http://tobaccodocuments.org/landman/507119955-9990.html PDF Format (from RJR site): http://www.rjrtdocs.com/rjrtdocs/image_downloader.wmt?MODE=PDF&SEARCH=0&ROW=1&DOC_RANGE=507126208+-6228&CAMEFROM=1