STRICTLY CONFIDENTIAL
Lucky Tribe
Concept Review and Strategy Recommendation s
Prepared by SLAM
Presented 27 April 1999
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Contents
Section 1 . Situation Review and Objectives a) The brief and remit of the report b) Definition of the report outpu t c) Our approach and methodolog y d) Initial observations & overall objectives e) Summary
Section 2. Brand Profil e a) Conception of Lucky Tribe b) Communicating the brand c) Key influencers d) Definition of the Lucky Tribe concept and its relationship to BAT e) Summar y
Section 3 . Background & Researc h a) Summary of F1 teams' images, drivers and principal sponsors & summar y b) Review of the F1 circuit & summary c) Media overvie w d) Sales & marketing programme for Lucky Tribe clothing e) Summar y
Section 4 . Review of Alternative Strategies, Leading to Our Recommendations a) Analysis of consumer & media strategies and positioning statements b) Recommended strateg y
Section 5 . Launching Lucky Tribe
Phase 1 : internal preparation a) Objective s b) Activit y
Phase 2 : preparing for the launch c) Objective s d) Target audiences e) Spokespeople f) Activity
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Phase 3 : launc h a) Objectives b) Target audiences c) Spokespeople d) Activit y
Phase 4 : season 1 a) Objective s b) Target audiences c) Spokespeople d) Activit y
Phase 5 : between seasons a) Objective s b) Target audiences c) Spokespeople d) Activit y
Phase 6: season 2
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Section 1 . Situation Review and Objective s
Our aim in this section is to clarify where Lucky Tribe is currently and set out the task SLAM has been given .
1 .a . The Brief & Remit of the Report
SLAM, the youth division of Charles Barker BSMG Worldwide has been briefed by Jan Verlinden to :
"analyse the Lucky Tribe concept and recommend the most effective two-year strategy for the roll-out of Lucky Tribe . "
We were originally briefed by Jan Verlinden and Suzanne Meldrurr in November 1998 and presented our proposals in the same month . Since then, changes to the visual appearance of the BAR team have occurred, notably to the livery of the car and uniforms of the pit crew, which necessitates us revisiting the nature of the concept and the plan of action .
The challenge, as agreed between Jan and SLAM, is to find a solution to the premise :
"if there is neither a distinctive Lucky Tribe car nor (on race day at least) an easily identifiable team behind the Lucky Strike car, how can the Lucky Tribe exist outside of BAR?-
1 .b. Definition of the Report Outpu t
In addition to answering the above question, the purpose of this document is to enable a clear understanding of the Lucky Tribe concept, i .e . a profile of what Lucky Tribe is and the potential it holds .
To facilitate this, we have first of all researched : The relationship between Lucky Tribe, BAT & BA R Creative influences driving Lucky Tribe and its core brand va ues F1 teams and the circui t Consumer media in target markets
We then go on to : Analyse a series of potential strategies, recommending one consumer and one media strategy as the way forward Advise on the evolution of Lucky Tribe between now and the end of 200 0
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The next stage will be to provide an overview of how to implement the programme . This will include : an overview of your sales and marketing capabilities in end markets an analysis of central v local implementatio n
1 .c . Our approach and methodolog y
When we came to re-visit the concep- : of Lucky Tribe, in light of the changes to the pit crew uniform and car design, we believed it necessary to go right back to the origination of the concept, to look at what you were hoping to achieve .
We held several meetings with Jan Verlinden and Fiona Mollet ; we also met with 141 and TMG .
We examined work undertaken by Bats Dcrland, including : the brand muscles of Lucky Strik e the creation of Lucky Tribe the choice of nam e the key infuencers as to its identit y the first and current Lucky Strike F1 advertising campaign s
We also searched the Internet and recent print media to audit : the circuit s other F1 team s the way Jacques Villeneuve is represented in the press F1 web-sites, chat rooms and fan clubs on the Interne t
Finally, we commissioned our sister media buying agency, BJK&E media, to research youth media in all target markets (i .e . the Lucky Strike target markets on the F1 circuit) : Italy France Spain Germany -' Benelux Japan Indonesia Brazil U K
In short, we have wiped the slate clean and gone back to basics .
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1 .d . Initial Observations and Overall Objective s
In line with the original brief, we still believe Lucky Tribe is a sound device that, given the right strategy, could : • reflect the brand values of Lucky Strike (helping to differentiate the Lucky Strike sponsorship from BAR and the 555 sponsorship ) • differentiate Lucky Strike in a crowded marke t • add weight to the sponsorship of what is currently Jacques Villeneuve's ca r
To do this, Lucky Tribe must emulate Lucky Strike's FREE THINKING MAN (i .e . it should be confident in itself) as created by Bates Dorlan d
The objectives of the Lucky Tribe campaign should also reflect those of the overall Lucky Strike campaign, but twist them to : • add relevance in the arena of F 1 • satisfy the restraints a new brand hold s
The Lucky Strike objectives assigned to create the "free thinking man" brand essence are :
1) Flex all muscles to a varying degree by Reinforce living legend status (not currently applicable to Lucky Tribe) Reference the original American drea m w Have its finger on the urban pulse Proving its playful min d
2) Tap into aspirations of the target market p;- With purpose i, Avoiding the trivia l Being experimental and thought provokin g
3) Develop concepts that allow for : Local market communications Local market sophisticatio n t4 Translatability
But Lucky Tribe must go beyond the objectives of Lucky Strike . We must create a new brand that differs from Lucky Strike to:
• facilitate a greater emotive response from the target audienc e
• offer wide-ranging communications and licensing remits
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1 .f . Summar y
The purpose of this report is to :
• "analyse the Lucky Tribe concept and recommend the most effective two- year strategy for the roll out of Lucky Tribe . "
To do to this, we must recommend a solution to the premise :
• "if there is neither a distinctive Lucky Tribe car nor (on race day at least) an easily identifiable team behind the Lucky Strike car, how can the Lucky Tribe exist outside c f BAR? "
If Lucky Tribe is to be successful in raising awareness of Lucky Strike in F1 , it must reflect the brand values of Lucky Strike .
Therefore, whatever Lucky Tribe is, it must :
• Reference the American Drea m
• Be urba n
• Be playful ;i .e . humorous, cheeky, audacious)
• Avoid the trivial (giving real added value )
• Provoke thought and be experimental
• Allow for end market translatabilit y
• Be emotiv e
• Offer wide-ranging communications and licensing opportunitie s
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Section 2 . Brand Profile
This section will review the creative driving forces behind Lucky Tribe to consolidate the concept from origination to today . It will analyse the image Lucky Tribe should portray and ensure the brand manifests itself coherently and effectively .
2 .a. Conception of Lucky Trib e
We understand the original brief for Lucky Tribe, as given to E-ates, was to create a unique Formula One team .
Indeed, the subheading of Lucky Tribe, as determined by Bates USA is :
• "An Original Formula One Team "
When choosing the name, Bates defined a set of criteria to create the specific attributes assigned to the team . These were : collective nou n flex American Dream and Playful Mind brand muscle s convey individual strength whilst operating as a collective name emotional iivolvement (depth & meaning ) US sport team connotation (NBA, NFL, MLB, NHL - not motorsport) positive statement about the tea m '"non-irritable" (e .g . not appear flippant to commentators, media, etc .) mix eploitaole (e .g . merchandise )
Bates recommended the team name is prefixed with "Lucky Strike", and from the set of criteria, the names they put forward were : • Trib e • Warriors • Teamworks • Pioneers • Liberators
"Lucky Strike Tribe" was chosen as the preferred name and, since then, "Strike" has been removed .
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The name was chosen because it reflects : • a team - group of people with common objectives • authenticiy • self confidence • self esteem • freedo m
The concept evolved to be described as follows :
"Lucky Tribe is a Formula One team that has been built around a uiique point of view that goes beyond fast cars and famous drivers .
It's a gathering of highly skilled imaginative and dedicated individuals with diverse backgrounds and skills who all have something to contribute to the team .
It's a team in which no one member is more important than the next . Each is important, each with a job to do . And all are ready to challenge the odds . . . . . together . "
2 .b . Communicating the Bran d
From the work Bates has done, SLAM has begun to put together the key words and phrases to communicate Lucky Tribe . • Team • Authenticity • Self confidence • Self esteem • Freedom • Original • Collective • American dream (everyone is born equal; everyone is capable of greatness ) • Playful mind (inquisitive, thought provoking, mentally challen(Jing) • Individual strength (empowering ) • Emotional (emotive) • US Sport • Non' irritabl e • Mix exploitabl e • Beyond fast cars and famous drivers • Highly skille d • Imaginative (imagination) • Dedicated (dedication)
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• Diverse backgrounds (all encompassing) • Contribute (contribution ) • No one member is more important than the nex t
These words are then broken down into two categories io provide a communication matrix for the Tribe . The categories are :
• External communication (through which we embrace thE, emotional values of the brand )
• Brand guidelines (by which to primarily assess the strategy and, subsequently, communication and activities )
Brand guideline s External comms
Team Team Original Authenticity American drea m Self confidence Playful mind Self esteem Individual strength FrE-edom Emotive Origina l US Spor t Collective Nora-irritable f-rnpowenng Mix exploitable Emotiona l Beyond fast cars . . . Beyond fast cars Imaginative Highly skilled Dedicated Imagination All encompassing Dedication No one member . . . All encompassing Contribution No one member . . .
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2 .c . Key Influencer s
Examining the key influencers is also crucial to creating a successful and coherent strategy and brand positioning . Perception is realitl and if the elements the public sees do not match with the messages, Lucky Tribe will be seen as having nc credibility .
Therefore the public perception of the key members of the Learn is THE key influencer for Lucky Tribe . As the new Lucky Strike Fl advertising states :
"It's not about them & us . It's about as . "
Although we cannot discount the F1 circuit and other sponsors, we can relegate them to the second division . They will influence the Tribe but they are not intrinsic to its identity .
In the meetings SLAM has had with BAT, the team and its involvement in the Lucky Tribe concept has been discussed in depth . For the purpose of this report we have taken it as a given that the team will not part,cipate in the roll out of Lucky Tribc .
But we still consider that the attitude of the team is vital component of the mix that creates the Tribe . If the team sees Lucky Tribe as credible, we have the best endorsement available .
When looking at the public perception of the team, we looked specifically at the press statements devised by BAT/BAR to position key BAR and/or Lucky Strike team members . The only statement to refer to image is Jacques Villeneuve's .
As we have discussed at length with BAT, the Lucky Tribe must go beyond the driver of the Lucky Strike car but, at the same time, the driver has been chosen to embody the Lucky Strike brand. What he does and what the media write about him has an impact on Lucky Tribe .
According to the press statements, Jacques was selected because :
"Experience, talent and image were the items that counted in oc.r analysis of each driver reviewed . "
Phrases used to describe Jacques in media reports since he joined BAR are :
"Jacques Villeneuve will enjoy having a team built around him and he will be a points to podium man ." The Express
"He's very quick and astute ." F1 Racin g
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"a unique career patch, one which has made Jacques more successful for his age than any other driver in the history of the sport ." F1 Racin g
"Jacques has a lot of idiosyncracies which stand him apart form the rest of the F1 crowd . The grunge fashion, the dyed hair, the belief that anyone who isn't a millionaire is a failure ." F1 Racing
"There is a softer side of him that contrasts starkly with the hard-man-on-the- track image." F1 Racin g
"A life on the edge ." F1 Racing
"A rebellious attitude ." Express on Sunda y
"He was into a lot of mischief, mainly with girls ." Express on Sunda y
"One driver who does not know how to fake optimism, so his blunt calling-a- spade-a shovel approach . . ." The Time s
"Villeneuve, who won the world drivers' title in 1997 said : 'The only reason to race is to win ." The Mirro r
"Jacques Villeneuve fell in love with his latest fast car when it started behaving like a fast woman ." The Sun
"He set the pit lane alight ." Motoring News
"New colours of Villeneuve put into spotlight ." The Independen t
"Jacques Villeneuve, the former world motor racing champion, is having problems with his latest 'girlfriend' ." Daily Mail
In order to create a coherent Lucky Tribe, we must ensure that all activity we undertake reflects the positioning of Jacques, as the focal point of the Lucky Strike team.
Just as importantly, we need to ensure that Lucky Tribe emulates the behaviour of Jacques without directly referencing Jacques .
The media directly assists in and influences the development of the team's image . We felt it important, therefore, to briefly review coverage that the Lucky Strike team, over and above Jacques, has received to date .
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However, the media coverage we have evaluated has concentrated on British American Racing . In the media's eyes, the new team is BAR . None of the cuttings we found referenced the Lucky Str ke team .
At present the team surrounding Jacque Villeneuve's car is non-existent in terms of media presence. We infer that, as long as the brand does not clash with the image of Jacques, Lucky Tribe will be coherent . This will be reviewed - to gauge the global picture - following the S/S global media evaluation in May .
2 .d . Definition of the Lucky Tribe concept and its relationship to BA T
When BAT originally entered the F1 circuit through a 50%1o stake in British American Racing (BAR), it faced a dilemma . The circuit is dominated by tobacco sponsorship and BAT had to create strong visibility for its three key brands : BAR ; 555 ; and Lucky Strike .
The danger was, and still is, that these brands would either be drowned or the venture would be seen as a "me too" exercise . As the original PR brief confirms, both of these are contrary to the brand identity of Lucky Strike .
It was out of this necessity to exercise differentiation that Lucky Tribe was conceived .
As the original PR brief states :
"Launching Lucky Strike in Formula 1 is not ideal unless we exploit the presence in F1 differently compared to other tobacco brands . Therefore we must ask ourselves :
'How can we make the arrival of Lucky Strike in the Formula 1 competition in a highly differentiated and unique way in order to :
Maximise the PR coverage of ire Lucky Strike F1 team to the core Lucky Strike target audience (irrespective if F1 fans or not) and position the team as a professional contender in the sport,-
- Create a clear difference between 555, BAR and Lucky Strike activities."'
Therefore, the reality of Lucky Tribe must attempt to satisfy these criteria . Its relationship with BAT and BAR is that it is a device, created by the two companies, to help position Lucky Strike in Fl .
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How we communicate the relationship 10 the media and consumers will be discussed in section 4 . But internally, as a group, we must all be clear as to the purpose of Lucky Tribe .
Primarily, we need to decide whether the concept has negative connotations if it is linked directly to BAT in the outside world .
Is it desirable to say ?
"Lucky Tribe is a marketing concept created by BAT to attract supporters to British American Racing and the Lucky Strike car- "
Is it necessary to be more candid? Wi I Lucky Tribe be more attractive if it is : a British American Racing owned concept ? a World Investment Co . owned concept and license? t'a a TMG owned range of clothing ?
This depends on the reality of Lucky Tribe and the strategy we adopt .
The more concrete the reality is, the easier it becomes for BAT to own Lucky Tribe . The more obtuse the strategy is, the more we get wrapped up in having to explain why BA T is venturing in this direction .
2 .e . Summar y
The strategy must reflect the criteria used by Bates to determine the nam e through embodying : team authenticity self confidence self esteem freedom
We must use the phrases designated tD external communications to embrace the emotional values of the bran d
We must use the phrases designated to brand guidelines to assess the strategy, communication and activities for Lucky Trib e
The key infuencer is identified as the public perception of the team itself . tea from the coverage we have evaluated, the Lucky strike team does not exist, except in the form of Jacques Villeneuve (will be reviewed )
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presently, as long as the Lucky Tribe communication and mage do not clash with Jacques' representation in the media, the trand will be coherent .
BAT has created Lucky Tribe to :
differentiate Lucky Strike in F1 - from other teams, BAR and 555
maximise PR coverage of the Lucky Strike F1 tea m
We must devise a concrete reality for Lucky Tribe to facilitate the correct positioning of Lucky Tribe by the media .
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Section 3 . Background & Researc h
In order to have a clear understanding of the Formula 1 circuit and the consumption of the sport in target markets we have reviewed the nedia in each market - both generally and in, the case of lifestyle magazines (with a male bias) more closely . We also looked at the sales and marketing strategy for TMG's merchandise to understand the restrictions (if any) this places on Lucky Tribe's roll-out .
3 .a . Summary of F1 Teams' Images, Drivers and Principal Sponsor s
• McLaren
McLaren's first Formula 1 victory was in Belgium in 1968 with Bruce McLaren at the wheel . Since that day they haven't looked back, with the team winning 116 Grand Prix in 476 performances . This makes McLaren onE of the Most successful F1 teams of all time .
McLaren has won 8 Constructors World Championship titles, the first of which was in 1974, when it also won the first of its ten Drivers World Championship titles . They are the only team to have won four consecutive Drivers and Constructors Championships (1988-1991) .
Whilst Ferrari has been the most successful team with 119 wins to date, it has been racing for 16 years more than McLaren, has been in 12- .7 more Grand Prix and has only achieved three more wins .
All of this adds up to make McLaren the Manchester United of F1 . They are the team to beat, with their car being faster and more reliable than its rivals . It has two excellent drivers in Hakinnen and Coulthard, who are open viewed as the golden boys of F1 .
The team comes across as being clinical, aggressive, and prof€ssional . Ron Dennis is seen as a disciplinarian .
Principal sponsor is West .
• Ferrari
Probably the most famous car racing team ever to exist -- with a fully integrated sponsorship package . The brainchild of the late, great Enzo Ferrari, the characteristic red is unmistakable whether it is on a F1 car or one of the latest road vehicles .
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The passionate Italians follow the team avidly across the world expecting the team to win every time the car gets on the circuit . This, alongside the history of Ferrari, makes them the people's favourite wherever they go especially in Germany because of Schumacher .
They also have two very different drivers in Schumacher and Irvine . Schumacher is amazingly talented, stopping at nothing to win a race . He comes across as cold, fccused and determined not something you would necessarily associate with Ferrari .
Irvine, on the other hand, is a self confessed playboy who loves nothing more than women, helicopters and his homeland of Ireland . A good looking man who is popular on the circuit as well as with women !
Ferrari gives F1 fiair, character and excitement, but their popularity may be on the wane if they fail to win the championship again this year . The fans are becoming bored of waiting, frustrated that even with (arguably) the best car and driver on paper, the team has failed to win the drivers' championship for 20 years .
Principal sponsor s Marlboro .
• William s
Williams launched their new 1999 car, the FW21, in January of '99 and hope that it will bring them the success that eluded them last season . Last year, for the first time in a decade, the Williams team failed to clinch a Grand Prix victory . This is something that owner and Managing Director Frank Williams will not tolerate . Knighted in this year's Honours List, Williams is one of the industry's success stories .
Despite being accused of negligence in the death of Ayrton Senna Williams has made his team into one that can never be ruled out . He is considered as one of the best brains in the business .
But this season's drivers are not the best on the circuit . Italian Alex Zanardi, the 1998 Champ Cars champion, and Ralf Schumacher, in the shadow of a more focussed and experienced elder brother, have yet to cut the mustard .
Principal sponsor is Winfield .
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• Arrows
In 1996 Tom Walkinshaw, the man who steered Benetton to the world chamionship, assumed control of Arrows . But success still eludes hem .
Arrows Grand Prix has been competing in F1 since 1978 and have always struggled due to lack of funding . They were saved this year b' Prince Malik Ado Ibrahim without whom they wouldn't be racing . They are now at the beginning of a very long rebuilding process .
One of the smallest teams on the circuit and, with the lack of a manufacturer engine this season will be a struggle .
Principal sponsor is Repsol .
• Prost Grand Pri x
For Prost Grand Prix, the 1998 season was abysmal .
This year, Prost has enlisted the help of ex Ferrari/ Arrows car designer John Barnard . And Peugot has worked hard on creating a much superior engine .
1 999 could be the year they come into their own .
Prost took over the team in 1996 and changed the team name from Ligier to Prost GP . Ligier was always seen as the plucky underdog, and Prost has done very little to change the image . The team is very popular with serious F1 supporters, especially in Prost's native France .
They are a team that appears to be a real unit, working for each other against the big boys .
Principal sponsor is Gauloises .
• Minard i
Another minnow amongst the big fish, they have very little chance of gaining a podium place this season .
Team owner Giancario Minardi, on the other hand, claims his team is better prepared than ever .
But, with second-rate engines and two drivers (Gene and Badoer) that are relatively new to F1 , it may be a long, unrewarding season for them .
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Principal sponsor is Telefonica .
• Jorda n
Jordan is a fast growing team with a great deal of charisma and two excellent drivers . They should have a good season in 1999 .
Eddie Jordan is a charismatic, passionate and emotional man whom the British public admires greatly . He has vast sponsorship backing, which has enabled him to upgrade his cars and pay for good drivers .
And with Damon Hill as the lead driver Jordan is the most popular team in the UK .
The team is cohesive, well organised and enthusiastic . They are seen as the extroverts ; their parties are renowned on the circuit .
Principal sponsor is Benson & Hedges, who has devised the "Buzzing Hornets" to maximise the promotion of its F1 sponsorship .
• Stewart
Jackie Stewart has an almost God -like status :n the world of Formula 1
Other than BAR, Stewart is the youngest learn in the championship, now in its third season . BLt its lack of success to date is, it appears, is beginning to concern Ford .
Rubens Barichello and Johnny Herbert are both very popular d-ivers on the circuit and with ,he media . Herbert's arrival will, they hope, give them the boost they need .
Stewart is seen in the same light as Prost, he is an ex-F1 driver who was not only very talented, but is also very popular . However, he may oe retired by Ford if the team doesn't perform this season .
Principal sponsor is HSBC .
• Benetto n
A team that had great early 1 990s, but has lost form over the last two years . They were at the top when Michael Schumacher won bE :ck to back championships in 94 & 95, but, after his move to Ferrari, thincs have gone drastically downhill .
SLAM 19 Lucky Tribe Concept Review and Strate April 199 9 Report for Discussion 321350589 B.\rc. l:S VW r Ph ihp NI-11 ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L They are no longer seen as a major player and this season could decide the team's future . And following the departure of David Richards and arrival of Luciano Benetton s son, Rocco, at the helm, their season will be in- eresting . Home to one of the most sophisticated engineering resources, the team has to justify the investment it has received over the past few years . Through an enthusiastic pair of drivers in Fisichella and Wurz, there could be a few pole positions . Principal sponsor is Mild Seven . • Sauber A team that will struggle this season because of a lack of money . They attract very little press coverage as they have never won a Grand Prix, never had a fastest lap and never had a pole position . Hopes rest on no . 1 driver Jean Alesi but his success rate has suffered recently . He is regarded as moody and has not been on top form for a while . However, the car is drastically improved this season so it is a team to watch . Principal sponsor is Red Bull . • Summary The teams with the highest profile are Ferrari and McLaren, because they have excellent drivers and win most races . The teams with tobacco companies as principal sponsors are : • McLaren / West • Ferrari / Marlboro • Williams / Winfield • Prost / Gauloises • Jordan / B& H • Benetton / Mild Seve n Plus, of course, BAR and Lucky Strike & 55 5 B&H has used the Buzzing Hornets to maximise its sponsorship of Jordan No other team presently has different sponsors for each car it race s SLAM 20 Lucky Tribe Concept Review and Strategy Reconuriendation s April 199 9 Report for Discussion 32135059 0 Ndrtb rs UN J Plnbp",-m ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L 3 .b . Review of the F1 Circui t • Melbourne - Australi a The first Grand Prix of the season always generates a huge amount of hype but, invariably, it never delivers the goods . The drivers are rusty after a long break and the engines are not quite at their peak . Furthermore, Australian's do not have any real connection with Formula 1 . They do not have a team that originates from their shores, nor do they -Jo not have a driver in the championship . This combines to make the grand prix a minor event in the Australian sporting calendar . The track itself is relatively new and runs clockwise around the lake in Albert Park . The authorities have to fight against the environmental activists' who protest about the pollution being inflicted on the wildlife in the Park . Having said that, it is the first race of the season and, therefore, one of the most important . Activity for Lucky Tribe is limited because of the name being registered in the tobacco category . • Interlagos - Brazi l In the years when Ayrton Senna was at the pinnacle of F1 , Interlagos was seen as the circuit with the most support for one man . Supporters would come in their tens of thousands all chanting the name of their hero . It was, a carnival to celebrate a man whom they believed to be the best driver in the world . Since the tragic death of Senna, Interlagos has been a slightly mi ted venue on the F1 circuit . The Brazilian's no longer have a real challenger in the race, with Rubens Barlchello still awaiting his first win and BAR's Zonta being inexperienced . Halving the track to 4 .325km has cut down what was once a very lengthy track . Many of the fast corners and more challenging aspects of the track have disappeared but the first corner is still one of the most dangerous, as all the cars attempt to funnel through without contact . Adding to the tension, this is the best place on the track to overtake, making accidents frequent . It is still a massi\,e event for the sport-loving Brazilians and one of the biggest GP's in the world . SLAM 21 Lucky Tribe Concept review and Strategy Recomniendation s April 199 9 Report for Discussion 321350591 ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L Very important for Lucky Tribe because it's a key market for Lucky Strike . Will be difficult to centre attention on the Lucky Strike team if Zonta becomes the face of 555 as originally planned. • Imola - San Marin o Most famous for the death of Senna and Ratzenburger, this race will always have a dark cloud hanging over it . Even though the magic may have left this circuit, it is still illuminated by the red chequered flags of Ferrari . Enzo Ferrari named this track after his son who died whilst still very young and so holds a special place in the hearts of =errari fans . Although the crowds gather in numbers, one almost feels a sense of mourning as opposed to the carnival spirit that many courses have . A very tough course that pushes the cars' endurance all the way, with pit stop strategy playing even more of a crucial role than usual . There have been some safety changes made to the course since the accidents, making it slightly slower . The track is a "B-f3-Q" for brakes and wears out transmissions, which leads to a greater number of retirements . Stamina is the key to success at Imola . Important market for Lucky Strike but the benefits of making this circuit one of the key ones for Lucky Tribe is dubious. Can we really compete against Ferrari? Is money better spent concentrating on other races ? • Monte Carlo - Monac o One of the most famous, glamorous and high-profile of all the Grand Prix circuits . The track goes straight through the city in Europe, with boats, buildings and helicopters in abundance . The whole weekend is a huge spectacle of wealth and glitz . The track is ridiculously dangerous with F1 cars racing on normal streets with very sharp corne-s . Accidents occur on a regular basis but the drivers commonly refer to it as one of their favourite courses because it poses the biggest challenge . There is not a lot more that needs to be said other than the peoplb of Monaco are probably outnumbered on F1 weekend by the world's rich and fE .mous . How we use Monte Carlo is a big question . Any activity in the principality itself will most probably be drowned . SLAM 22 Lucky Tribe Concept Review aid Striwegy Reconmitmdat on s April 199 9 Report for Discussion 321350592 HA IL ro I S t)' U' Ldp, 11-1, ALL INFORMATION CONTAINED ON THIS PAGE Si RICTLY CONFIDENTIA L The race has to feature in the Lucky Tribe calendar because of its status . • Barcelona - Spai n Not renowned for i t ' s passionate love affair with F 1 , Barcelona is usually very wet when the GP comes around . In years gone by it would be terribly dangerous in the wet as the tires would not grip and serious accidents would abound . However, with the introduction of Bridgestone tires this season, the governing body may have cured the situation . A key market for Lucky Strike and, with no crowding of activity or allegiances to other teams, the Barcelona Grand Prix could have real opportunities for Lucky Tribe. Especially as a warm up for Montreal. • Circuit Gilles Villeneuve - Montreal, Canad a Jacques Villeneuve is practically a decor-God among Canadian F1 fans . Following in the footsteps of his father, he has made F1 a very popular sport in his own country . However, the track is one of the worst in the world (built on the Expo '67 site) and has little charisma or carnival spirit . The bumps all over the course are like no other in the world and cause havoc with the cars engineering . The result of this is that many of the cars are forced to retire . Definitely an interesting Grand Prix for Lucky Tribe because, although Canada is not a key market for Lucky Strike, we can't afford to ignore the one race that Jacques will dominate (off the track at least) . But, at the same time, we have to ensure that Jacques is not positioned as the centrepiece of Lucky Tribe . • Magny Cours - Franc e The track is located in a very poor and rural area . President Mitterand wanted the area to be a site of technical excellence for French Motor sport, helping to bring wealth to the region . Now it houses some of the very best in French Motor sport in the neighbouring industrial estate . The circuit is very modern and beautifully equipped, however the traditionalist F1 fan would say that it has no soul . High profile teams at this race are Prost and Sauber (through Alesi) . Big opportunity for Lucky Tribe because of Jacques' nationality . SLAM 23 Lucky Tribe Concept Review and Strategy Reconim,euidation s April 1 99 9 Report for Discussion 321350593 B.\TC, . LS COI I Philip Marc:- ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L • Silverstone - Great Britai n This is the home track for many of the teams in F1, which usually means that the post race parties can grab as muci of the headlines as the actual Grand Prix itself . On a more professional note, Silverstone is steeped in tradition and, like Belgium, is known as one of the more challenging circuits . The corners are slower today than some years ago, yet Becket's sweepers and Bridge Corner are still some of the driving highlights of the year with drivers clearly enjoying the challenge they offer . Silverstone is principally the home of Damon Hill . Close behind him are Coulthard, Herbert and (the adopted) Irvine . Combined, this results in Jordan, Ferrari, McLaren and Stewart all fighting for attention with Jordan inevitably winning . With no real market for Lucky Strike in the UK, it is questionable how effective Lucky Tribe activity could be. Having said that, Silverstone is the home of BAR and the circuit must figure in the programme . • Al Ring - Austri a One of the newest tracks on the tour, replacing the decrepit Osterreichring, but sadly lacking some of the qualities of the former - to the frustration of some of the traditionalists . With Benetton's talented Alex Wurz being Austrian, and with the Al Ring finally receiving the funding it so badly needed, the chances are that F1 will become popular again in a country that was once so passionate . However, Austria is nearing the bottorn of the pecking order for Lucky Strike, so Lucky Tribe activity may be limited. • Hockenheim - German y A Grand Prix that is key for Ferrari because of the 150,000 Germans cheering on Michael Schumacher . The German public love F21 Schumaciier is held in the same regard as Villeneuve is in Canad a A combination of flat out straights aid simple chicanes make this one of the easier courses in the championship . SLAM 24 L,rcky Tribe Concept Review and Strategy Reconuuendation s April 199 9 Report for Discussion 321350594 -TO, r1 (rl, •em,, 11,11 . ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L Very important for Lucky Strike, considering the strength of the German market . Lucky Tribe must capture the imagination of the German public; it must break through the barrier caused by Schumacher 's nationality . • Hungaroring - Hungar y Good viewing for spectators in a well-established and much iked venue . The hills surrounding Budapest make for a great vantagepoint for viewirg the action . The track is tight, twisty and bumpy so tyres need to be changed more than on other tracks . Not that important for Lucky Tribe because Lucky Strike's presence is low . • Spa Francochamps - Belgiu m The experts say that this is one of the best tracks in the world because it has regularly been hone to some of the greatest Grand Prix ever raced . With the track sweeping through the forested Ardennes Hills and a mix of high-speed corners, Spa is not only a picturesque venue, but also devastatingly exciting . The people of Belgium look forward to the Grand Prix but, because they do not have a driver or a constructor, they are rarely as high spirited as the Italians, for example . With no hurdles to overcome in terms of national allegiances, and its situation at the heart of Europe, the Belgian GP is key for Lucky Tribe . • Monza - Ital y Located in Northern Italy, Monza is located in Northern Italy, 12 miles from Milan city centre and come race-day is full of the fanatical Tifosi . Everythirg around and on the circuit revolves around one team, Ferrari . The track is ultra fast and known as an engine-breaker : Ferrari always make a special effort at this, their home circuit . Indeed, the most famous race in recent years was in 1988 when Senna crashed to allow Ferrari to take the first and second positions, just mon-hs after the death of Enzo Ferrari . The same conditions apply to this Grand Prix as at Imola. I't is an important market for Lucky Strike but the benefits of making this circuit one a target for Lucky Tribe are dubious . Can we really compete against Ferran? Is money better spent concentrating on other races ? SLAM 25 Lucky Tribe Concept Review and Strategy Recommendation s April 199 9 Report fnr Discussion 321350595 BAT<',' l S r`OJ, Plulip Von :. ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L • Nurburgring - Germany/Luxembour g Germany's second Grand Prix was once called the Luxembourg G .-and Prix, but this season it has reverted to its previous name, the European GP . Once again the German crowd will be cheering at the top of their voices for the golden boy of German F1, Michael Schumacher . The Germans are the most devoted F1 fans in the world and this will be seen at the Nurburgrir g . The same conditions apply to this Grand Prix as at Hockenheim . It is very important for Lucky Strike, considering the strength of the (German) market . Lucky Tribe must capture the imagination of the German public; ~t must break through the barrier caused by Schumacher's nationality. • Sepang - Malaysi a New to the circuit this season, Sepang is the most state of the art circuit in the world and it is widely accepted that reason for its introduction is because of the ensuing ban on tobacco sponsorship and advertising in Europe . Investors have built a huge complex for the Grand Prix comprising of restaurants, bars, shops, gyms and even its own airport . Moreover, it has been built on very flat ground making it exceptional rn terms of viewing . The heat will be a problem for the drivers, as they will never have experienced anything like it on the circuit . Although Malaysia is not a key market for Lucky Strike (that honour goes to 555), neighbouring Indonesia is. Lucky Tribe activity should, therefore, be focussed on Indonesia- 0 Suzuka - Japan The grand finale to a long, hard season and, if the drivers are close in the championship, the tension can be almost unbearable . Added to this, the drivers have a great deal of respect for the course . The Japanese are passionate about F1 and, with Takagi and Honda in the midst of the sport, they can have a lot to cheer about . Japan is also one of Lucky Strike's most important markets so this Grand Prix will provide a fitting end to the season . SLAM 26 Lucky Tribe Concept Review and Strategy Recommendanon s April 199 9 Report for Discussion 321350596 w~ri'n 1'S Dl U v 'qdI . , 11- . ALL INFORMATION CON1AINED ON THIS PAGE STRICTLY CONFIDENTIA L Summary Italy is a problem because of Ferrari's domination Germany is a problem because of Schumacher Primary circuits are : • Interlagos • San Marino • Barcelon a • Magny Cours • Hockenhei m • Spa Francochamps • Monz a • Nurburgrin u • Malaysia (for Indonesia) • Japa n Secondary circuits are : • U K • Monaco • Australia Non-circuits are : • Austria • Hungary 3 .c. Media Overvie w The media overview we have compiled reviews the major global players with whom we could form media partnerships . Securing these partnerships would give a tremendous boost to generating awareness for Lucky Tri ae . Part one is an adaptation of a previous report compiled by Charles Barker BSMG Worldwide for BAT . A full copy of this report is available on request to BAT employees . Part two is an analysis of male bias lifestyle magazines targeted at ASU30 . This has been commissioned from an external media agency will be forwarded as an appendix to this report . We also recommend an analysis of the Internet, which is proliferated with F1 sites and offers a prime communications route . SLAM 27 Lucky Tribe Concept Review and Strategy Recommendation s April 199 9 Report for Discussion 321350597 BAri'e Cl ['(ll, PlsIry •Iorr ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L Part One : Media Group s Overvie w It is clear that ro one group is truly international and that, in the case of individual countries, the suitability of media outlets varies greatly In addition, there is little evidence of the kind of cross media/cross-group effort proposed . Although some companies (Time Warner and NewsCorp . for example) have set up separate companies to market, plan, and promote integrated programmes and campaigns across their companies, cross media efforts are in their infancy . At the same time, the potential for targeting young people on air international scale is huge, and with the advent of cable, digital and new media broadcasting, the possibilities are even greater . Indeed, young people are traditionally early adopters of new media capabilities and consequently a very receptive audience . (MTV, the world's most extensive and successful global network, is a good example of this . ) Thus, we face bo-h a tremendous opportunity as well as a significant challenge . Because this is rew territory, securing the buy-in and commitment of media companies may well be a difficult and delicate task . Moreover, some media groups may be I,kely to be reluctant to associate themselves with tobacco companies . Hence, we most have a very good proposition, away from the issue of tobacco and smoking . Summary of Media Group s Market Youth Media Outlet International BB C Disney NewsCorp Time Warner Viacom European BBC (West, East, Bertelsmann Central ) Canal + CM E Country Specific Spain TVE, Minimax, Telecinco Japan NH K SLAM 28 Lucky Tribe Concept Review and Strategy Recommendation s April 199 9 Report for Discussion 321350598 ALL INF ORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L World's Top Four Media Media Owner Turnove r Time Warner - - ~ -- - -~- ---- $20 .9bn Magazines, music, cable networks, film, TV production an d distribution, homc videos, studio stores, theatres, theme park s Disney $18.7bn Filrn production and distribution, terrestrial and cable TV, radio , home video, theme parks, resorts, merchandise Bertelsmann $ 14 .3bn Film production and distribution, satellite and terrestial TV , consumers and trade magazines, book publishing News Corp $10 .2bn Newspapers, magazines, terrestrial TV, cable and satellite TV , film book publishing , sports stadium, sports team s Publishing House s Lagardere Hachette print media : 14 youth magazines in France and number 1 magazine publisher in Spain (with 71 % of the consumer magazine market) . Bauer Verla g Based in Germany, one of Europe's largest publishers . It has titles in its home market and several Eastern European countries . Emap One of europe's largest magazine publishers , with nearly 100 consumers' magazines in UK and 50 in France . Titles in the UK include FHPJI, C, NewWoman. This is an important group tor the ASU30 market . Springer Verla g Publishing operations in Germany, Austria, France, the Netherlands and Eastern Europe . It is self-proclaimed aim is to adapt its newspaper and magazine titles to a younger generation . VNU Based in Netherlands, operations spread across Benelux, France, Italy, Spain, Germany, UK and US . Its consumer section publishes several magazines aimed at ASU30 . Bertelsmann Largest media company in Europe, it has interests in 33 magazines n Germany ; 12 in France ; 8 in Spain ; 5 in Poland ; 4 in the UK and 2 in Italy . SLAM 29 Lucky Tribe Concept Review and Strater}y Reconu 'endation s April 199 9 Report tor Discussion 321350599 k>i,l11-ti I ;1,11 Fh11i,,11•irr ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L 3 .d . Sales & Marketing Programme for Lucky Tribe Clothin g When SLAM was originally briefed on Lucky Tribe, we were advised that a seeding launch was the preferable route . The reason for this was two-fold : to allow time for the team to become comfortable with the concept to create a real (as opposed to a marketing) concep t The merits of this approach are discussed in the following section ; its inclusion here exists solely as a reference to our original concerns regarding the existence of a merchandising programme . The potential problem was that a range of clothing being launched so soon after the emergence of Lucky Tribe would destroy its credibility . Since then, SLAM has met with TMG to understand what plans they have formulated for the launch of the clothing . Plans for the Spring Summer 99 and Autumn Winter 99/2000 collections are confined to Spain, Germany and Benelux . The range is very limited (to staple items like t-shirts and polo shirts) . There will be no ATL or BTL support . The Spring Summer range 2000 is more extensive and the designs are more "street", but by no means cutting edge (which they aren't intended to be) . It is hoped this range will be supported by advertising and promotions, which will be in line with the Lucky Strike marketing plan . The proposed budget is f500k . The majority of the money will be spent on fieldwork, in-store concessions and outdoor ad sites . The distribution will increase for the SS 2000 collection and is expected to include the UK, Portugal and Italy . In terms of the UK, Way-In a- . Harrods and Kendal's in Manchester were quoted as potential outlets , On the grounds that activity in 1999 will be limited to a few items in a few stores, SLAM suggests the current campaign for the clothing range is not considered in terms of the recommendations for Lucky Tribe . The clothing range does not pose a threat to the concept - whether we adopt a seeding launch or not . As discussed in the next section, we could even make the clothing range central to Lucky Tribe's strategy . SLAM 30 Lucky Tribe Concept Review and Strategy RecommendFltlon s April 199 9 Report for Discussion 321350600 B .\TC, US (Ill, Pliilp, ?l .,:. ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIAL 3 .e . Summar y The teams with the highest profile are Ferrari and McLaren, because they have excellent drivers and win most race s B&H has used the Buzzing Hornets to maximise its sponsorship of Jordan No other team presently has different sponsors for each car it races . Italy is a problem because of Ferrari's domination Germany is a problem because of Schumacher Primary circuits for activity are : Interlagos San Marino Barcelona Magny Cours Hockenheirn Spa Francochamps Monz a Nurburgring Malaysia (for Indonesia) Japan We recommend targeting international media companies to form media partnerships The clothing range does not pose a threat to the concep t SLAM 31 Lucky Tribe Concept Review and Strategy Reconunendatlo'i s April 199 9 Report or Disc!issioi 32135060 1 B A I'('., U, CCU I P11111, 11,t . ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L Section 4. Review of Alternative Strategies, Leading to Our Recommendation s The purpose of this document is to suggest the way forward for Lucky Tribe . In order to do this we have analysed possible strategies and recommend the one that will launch and build a brand that is credible with the target audience . Currently, Lucky Tribe is an abstract commodity that must becorre concrete in order to develop an emotive identity and secure a following . To do this, we not only have to plan the route it will take from here, but explain hoof it came into existence . To benefit all parties involved in the F1 sponsorship, the successful strategy must : • be mix expioitable (through having many licensing opportunities) • maximise PR coverage of the Lucky Strike F1 Tea m • remain true to Lucky Strike's brand positionin g • assist in BAT's and BAR's overall corporate communication s And we must position Lucky Tribe as different to any other teams or team activity . We must not be seen to he replicating Marlboro, VVest, Mild Seven, Gauloises, etc . After examining the research and requirements, SLAM has identified three possible routes to take Lucky Tribe . There are no doubt many more, but the three explored here are, we consider, the most viable : 1 . Lucky Tribe : the team behind Jacques Villeneuve's car 2 . Lucky Tribe Clothin g 3 . Lucky Tribe : the inclusive members only clu b The Team Behind the Ca r Positioning Statement : An Original Formula 1 Team (Bates Dorland , Since its conception, Lucky Tribe has been the team behind the Lucky Strike car. Here we examine the merits of Bates' original positioning statement in light of the FIA ruling on the car livery and pressures of the team to build it race-winning car . SLAM 32 Lucky Tribe Concept Review and Sir,itetly Recommendation s April 199 9 Report for Discussion 321350602 ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L "Lucky Tribe is a Formula One team that has been built around a unique point of view that goes beyond fast cars and famous drivers . It's a gathering of highly skilled imaginative and dedicated individuals with diverse backgrounds and skills who all have something to contribute to the team . It's a team in which no one member is more important than the next . Each is important, each with a job to do . And all are ready to challenge the odds. . . . . together. " This strategy satisfies : Easy to explain how the brand came into existence Be mix exploitabl e Maximise pr coverage Remain true to Lucky Strik e Assist in BAT's and BAR's overall communications programmes Be different to all others in F 1 On the positive side, this strategy offers many licensing opportunities, could lead to an abundance of PR coverage and will remain close to the Lucky Strike brand strategy . But for this strategy to be successful, we very much require the team to be operating as a unit and be prepared to endorse our activity . This i3 essential for PR if we expect the media and consumers to buy into the concept . We need to explain how Lucky Tribe has come into existence and where the name came from . We can invent a coherent story but all iriernbers of the Tribe would need to be on-message at all times . This leaves us with a tenuous media strategy that will require much policing . Hence, we have a problem . The team is very busy and we will most likely not have any access to it either to brief them or use them in profile-building activities . Winning races is more important than taking part in a marketing concept . The more the team wins, the More supporters it will attract . We must also consider the effects of the visual identity of the car and the fact that the Lucky Strike team - the "Lucky Tribe" is not now visible on race day, in front of the world's cameras . So, for the majority of media aid consumers we want to target, the Tribe will not exist . SLAM 33 Lucky Trine Co icept Review ana Strategy Recon-anendation s April 199 9 Report for Disc .ession 321350603 R r,, r I M0, Ad"1 I,, . ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L Lastly, we cannot control personnel issues at Bracknell . This is a new team and is almost certain to have teething problems . If the team shows signs of disunity half way through the season, the reality of Lucky Tribe goes up in smoke . Journalists and the consumer market we are aiming for are very cynical and likely to reject the concept of a team forging such a bond in a s sort space of time . Any cracks or inconsistencies that appear will add to the likelihood of rejection . We therefore recommend not pursuing this strategy at this present moment in time. Too many things that we have no control over could go wrong . Lucky Tribe Clothing The one tangible item we have is the clothing range ; the clothing range is Lucky Tribe . While TMG currently has no confirmed sales and marketing clan the clothing range could easily become the central element to the launch of Lucy Tribe . Fashion is a key element of our target audience's lifestyle and we could embark on a fashion campaign . The key elements of this strategy would be product placement -3nd magazine fashion shoots . We would despatch clothing to non-F1 personalities who embody Lucky Strike's muscles, encouraging them to wear the range . And we would liaise directly with fashion stylists to secure coverage in shoots . The Tribe can then be extended to become the people wearing the clothes . This strategy satisfies : Easy to explain how the brand came into existence Be mix exploitabl e Maximise pr coverage Remain true to Lucky Strik e Assist in BAT's and BAR's overall communications programmes Be different to all others in F 1 This strategy is attractive because it is tangible evidence of Lucky Tribe's being . However, it is difficult to find an all-encompassing positioning sta' .ement to link the clothing to the F1 team without being open that this is a range o f SLAM 34 Lucky Tribe Concept Review and Strategy Recornnrendation s April 199 9 Report for Discussioi, 321350604 R .,TCh LS Et ❑ ,?l ipSinrt . ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L merchandising . Once we do this, we are in danger of limiting the appeal of the Tribe . While a range of clothing inspired by the Lucky Strike team is desirable to a section of our target market, a bigger section will only be attracted to the clothing if it is Subtle and fashionable . And we are at the mercy of (very difficult) fashion journalists and stylists . Secondly, we have to satisfy a market that does not like brands that are purely commercial . Our research shows that, as well as buying into brand values, the 18--30 year-old market is increasingly looking for brands that : a) have their roots in creativity b) offer added valu e This is one area this particular strategy for Lucky Tribe could face difficulty . Another potential problem area is physically linking the clothing range to F1 . The advertising can be successful in this but the PR would struggle . It's not impossible but a tough call . Convincing the media to extend coverage beyond fashion will also be difficult because that is the only story . Finally, there is an abundance of F1 clothing available . This covers everything from team ranges for McLaren, Ferrari, Williams, BAR to drives ranges for Michael and Ralf Schumacher and Ayrton Senria . While (on a positive note) Lucky Tribe clothing is not official merchandise, we believe the concept could be lost if everything is pinned on the c othing range . The clothing range (given the distribution) should be successfu, but the strategy for F1 should be more wide-reaching . Lucky Tribe is the embodiment of Lucky Strike in F1 and we suggest the clothing range is not strong enough to communicate this on its own . Inclusive Members Clu b Positioning statement : "Lucky Tribe the only formula one team " Every club and well-known driver has a tan club but the Lucky Tribe would be different . It would be a lifestyle club, tapping into the consciousness of the ASU30 market . SLAM 35 Lucky Tribe Concept Review and Strategy Recommendrit on s April 199 9 Report for Discussion 32135060 5 NIT( \ . I \ I>I I.I . :+I0,I, . ♦ l..,, ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L Recruitment to the club would be through lifestyle media partners, Grand Prix events and the Internet . Key communication would be through the Internet, the GPs and printed newsletters, calling members to action . Through the network of supporters, we could organise parties, screenings of the races, illustration :. of team solidarity on race day, etc . All communication would reflect the link back to the team, helping to build the concept of the team behind the car (i .e . helping to build the profile of the original Lucky Tribe) . Through the club, we can slowly create a solid profile for the team, making thetas part of Lucky Tribe . Added value would extend the club beyond the realms of F1, to include events and activities away from the Grand Prix . Membership would be free and open to all F1 fans . We would attract supporters of other teams to Lucky Tribe with exclusive offers . Lucky Tribe would also be used as a media relations tool . Through the Tribe, we would be in a position to set up media partnerships and invite journalists to become members - offering those who do exclusive promotional and editorial packages . Lucky Strike, through the database created by Lucky Tribe members, would offer more than any other F1 team . This strategy satisfies : Easy to explain how the brand came into existence Be mix exploitabl E Maximise pr coverage Remain true to Lucky Strik e Assist in BAT's and BAR's overall communications programmes Be different to all others in F 1 We believe this strategy provides more arms and legs than any other . We also don't have to explain where it has come from because the concept, in itself, is not unusual. It is what we do with it that will make it stand out from the crowd. As well as providing an (ever growing and) exclusive database, the strategy enables BAT to communicate to its corporate audience in a more light-hearted (but responsible) way . It also offers endless merchandising and licensing opportunities . SLAM 36 Lucky Tribe Concept Review and Strategy Recommendation s April 199 9 Report for Discussion 321350606 HAD ,IS ro. 1 P1i1 I ry Mon:. ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L We urge BAT to prescribe the club as only available to those 18 years of age . And to set in stone a policy that will not allow end markets to either sample tobacco products or brand any Lucky Tribe events with branding other than Lucky Tribe to ensure clear, effective and uncluttered communication . We recommend BAT adopts this strategy because the opportunity for roll-out is so great. SLAM 37 Lucky Tribe Concept Review and Strategy Recommendation s April 1999 Report for Discussion 321350607 ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L 5 . Launching Lucky Trib e While more research is required into the media, BAT's sales and marketing capabilities and end market sophistications, we have put together a plan to show how we envisage the concept rolling out . • Phase 1 : Preparation Objectives . Prepare for the successful communication of Lucky Tribe lo all relevant BAT & BAR employee s Q':> Prepare for the implementation of the programm e Activities Analyse BAT's capabilities in end market s a> Recommend preferred route for implementation : central vs . loca l ~, Provide detailed, finely tuned global PR and advertising plans for phases three and four Explore potential media partners for phases three and four (to include print and broadcast media in all target markets ) w. Brief all members of central brand marketing, CORA, sponsorship and licensing teams as to the two-year strateg y Extend two-year strategy to include year three of the currert deal Write all internal communication material s Plan launch event • Phase 2 : Preparing for the Launc h Objectives Secure understanding of the concept internally (at BAT & BAR) at central and local leve l Secure understanding of the concept by all incumbent : communications agencies Secure media partners Brainstorm activities and media relations angle s Target Audience s 'k> BAT employees ~2 BAR employees q:> Incumbent & potential communications agencies . Global media/publishing group s SLAM 38 Lucky Tribe Concept Review and Strategy Recommendation s April 199 9 Report for Discussion 321350608 ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L Internal Spokespeopl e Lucky Strike Central Brand Marketing dept . Central Corporate & Regulatory Affairs dept . r Central Sponsorship dept. Media Spokespeopl e q> Lucky Strike Central Brand Marketing dept . ~'> SLA M Activities `?y Brief heads of local brand, CORA and sponsorship depts and provid e communications packs for distribution to relevant parties Q, Brief all re;evant members of BA R Brief design agencies to pitch for web-site design (anc commission design) Begin negotiations with media partner s Prepare all media briefings / media relations materials Prepare launch event Secure exclusive incentive for joining Lucky Tribe -- such as x sets of VIP travel and tickets to all F1 races until the end of the seaso n • Phase 3 : Launc h Objectives Q> Position Lucky Tribe as the inclusive, members only, adult club Q> Generate awareness of Lucky Tribe in all target market s q> Launch the Trib e Target Audience s q;. F1 supporting AU30 u> BAT business partners All target medi a Spokespeople the Activities '4> Brand Jacques' balaclava with log o u;, Launch web-site through live Internet link-ups across the worl d q> Hold media promotions in target markets to win tickets to miss, open air- screenings of the race (TV broadcasters ) don't give tickets to race away everyone wins same prize to encourage all encompassing them e full hospitality at the race SLAM 39 Lucky Tribe Concept Review and Strategy Recomrneneation s April 1999 Report for Discussion 321350609 Rn Ti'nI ID, U , I Ipn In ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L 1:> Hold launch event for F1 media at Grand Pri x Hold launch event for consumer media at local screening s • Phase 4 : Season 1 Objectives Build on the launch through offering more incentives to join Begin lo attract wider consumer and business awareness Stage events for all priority race s Target Audience s F1 supporting consumer over 18 All other consumers over 18 BAT business partner s ?-; Potential licensees Third parties for promotions G;, All target medi a Spokespeople Tbc Activity Bill-posting in all major cities (just using logo) before major race s Logo appearing on footpaths, etc . in major connurbations before major races Increase size of LT logo on car livery/transportation/uniforms Distribute 1copies of printed newslette r More screenings if the launch ones are successful 1 x event a- every target race for more serious supporters Increase activity targeting potential third partie s Increase media relations through press trips to races, events, sell-in of exclusive angles, etc . • Phase 5 : Between Seasons Objectives Review impact of first six months' activity Maintain interest from consumer s Secure partners for season 2 Target Audience s F1 supporting consumer over 18 All other consumers over 18 BAT business partner s Potential licensee s SLAM 40 Lucky Tribe Concept Review and Strategy Recommendation s April 1999 Report for Discussion 32135061 0 111 1, II S Dill, P1111111 I'll, . ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L Third parties for promotions All target medi a Spokespeople Lucky Strike Central Brand Marketing dept . SLAM Activities Analyse media evaluation s Carry out quantitative and qualitative research in all target markets Liaise with third parties V. Plan season 2 Utilise web-site and newsletter to leak stories about season the LS team in year three q:> Maintain media contacts through offering exclusive team stories, advertorials, etc . • Phase 6 : Season 2 Season two will continue in the same vein as season one but the audiences and activities will depend on the research conducted between seasons . SLAM 41 Lucky Tribe Concept Review and Strategy Recommendation s April 199 9 Report for Discussion 32135061 1 ndn51 I S ❑I U I =edq, nlnm