STRATEGIC RESEARCH REPORT Febrasry.23,, 1986 Mr. M. L. Orlowsky Me. H. J. Lees YOUNGER ADULT SMOKERS: STRATEGIES AXD OPPORTUNITIES coPY LIST Mr. L. W. Hall, Jr. 4 Ms. S.A. MacKinnon Me. G. W. McKenna Me. J.T. Winebrenner bee: A. Me Curry Mr, J. R. Shostak J. Totterdale : Mr, E, J. Fackelman AL Lloyd Ms. E, N. Monahan J. Rucker Mr. J. R. Moore K, Neher Dr. J. L. Gonna. G. Bethea Mr. G. Novak Wr. G. T. Baroody J. Harden (2) Whaley ti 2 eas PUBLISHED BY THE MARKETING DEVELOPMENT DEPARTMENT R.J, REYNOLDS TOBACCO COMPANY, WINSTON—SALEM, N.C. 27102 pi TRIAL EXHIBIT sunt tom nee — 1am 12,579 Mr, G. Be Long FROM: Diane $. Burrows zane 26105 NTE ALATAMDD ABSTRACT FORM ' PROJECT NUMBE None TITLE: Younger Adult Smokers: Strategies and Opportunities ‘AUTHOR: cones 2/29/86 TYPE OF RESEARCH: SECTION MANAGER: ‘ABSTRACT? Younger adult smokers are shown to be critical to long term brand/company grovth in the past, present, and future. Younger adult performance of the six major brands of the last half century was analyzed to identify four common strategies/circumstances leading to their younger adult strength. ‘They capitalized on: HAHTTPHE EE Le. Changes,.in external factor: . 2.. Growth sectors among younger adult smokers. 32. Qut-of-touch competitors. Product ‘mildness, communicated positively. Key recommendations include: «3 Establishment of a separate younger adult smoker program/unit, with customized procedures/measures, inproved information resources, and a less competitor-centered focus. ss Attention to Blacks, Hispanics, fenales, social acceptability, pricing, and potentisl enhancement of product acceptability. SARETETTEREHTH TE KEY WORDS Younger Adult Smokers Kool Hispanics Pali Mall SALEM Wonen’ INSTON Newport Social Acceptability Marlboro Blacks Pricing egne Z6tos Signature os x PRR 29h . Date€) YOUNGER ADULT SMOKERS: ‘aman STRATEGIES AND OPPORTUNITIES TABLE OF CONTENTS PAGE MANAGEMENT. SUMMARY i = INTRODUCTION 1 = ae SECTION I: THE IMPORTANCE OF YOUNGER ADULT SMOKERS 2 Peeve SECTION Il: SUCCESSFUL “FIRST BRAND” STRATEGIES OF THE PAST 8 = SECTION III: KEY LEARNING ~~ SUMMARY/CONCLUSIONS 27 SECTION IV: IMPLICATIONS FOR RJR 33 = SECTION V: KEY TREND DETATL e Pricing 38 = ; Soctal Acceptability 40 — Bleck/Hispanic Younger Adult Suokers 42 — Fenale Younger Adult Smokers 4S — “Moving Up in the World" 49 = APPENDICES: si = Cc "98 260g