Development News PUBLISHED FOR SENIOR EXECUTIVES INTERESTED IN DEVELOPMENT

® KAE Development Limited KAE House, 7 Arandel Street, London WC2R SDR Telephone: (01) 379 6118. Telex: 21405 KAEMIN G. January 1986

1. RAFFLES - Ruffling the feathers

of the market p. 1

2. DURACELL - Durabeam p. 4

3. Development Comment p. 7

4. Trends from Abroad p. 8

5. Ideas from Abroad p. 10

6. New Product Monitor p. 11

****************** can be advertised and * * promoted, resulting in a market * A VERY SUCCESSFUL AND PROSPEROUS* which is declining at the rate of * 1986 TO ALL OUR READER FROM ALL * 2% per annum. * AT KAE DEVELOPMENT!! * * * Prior to 1984, Philip Morris was ****************** represented in the UK market only by . This brand had 1. RAFFLES - RUFFLING THE become the world's biggest seller, but had never attained that FEATHERS OF THE position in the UK and did not seem likely to improve its position or CIGARETTE MARKET its 2-3^ market share. A large part of the reason for this is that Marlboro is blended to suit the Introduction American taste and, despite a reasonable level of acceptance The cigarette market, in common among certain sectors of the UK with many others, has had its share smoking population, has been unable of product failures over the years, to convert the majority whose which is perhaps why the success of preference is for the Virginia Raffles is of particular interest. blend historically used in virtually all UK brands. Launching a new cigarette brand successfully is no easy task The development of a new cigarette particularly when one considers the for the UK market, therefore, amount of publicity and pressure to represented, for Philip Morris a discourage the smoking habit, high level of commitment to gaining coupled with the restrictions additional share of that market, a surrounding the methods by which commitment which has continued - 2 -

through the development and launch that the incompatibility of low tar programme and one which has and taste satisfaction has yet undoubtedly contributed greatly to been resolved. its success to date. Being positioned in the LTKS sector The market positioning of Raffles of the market meant that Raffles was carefully identified as one needed to be perceivedas a which was likely to prove 'quality' cigarette in order to successful. However, a compete with the already well- consideration uppermost in the mid established quality image of brands of Philip Morris was to avoid any such as John Player King Size and cannibalisation of their flag-ship Benson & Hedges. The declared brand, Marlboro. intention of Philip Morris was to create a brand which would The trend in recent years has been encourage "smokers to come out of to longer cigarettes, helped by the closet and enjoy their changes in the way in which duty is pastime". Raffles would be a high levied which has made them better quality cigarette, elegantly value for money. This longer- packaged and backed by extensive length sector now represents and distinctive advertising. An something in the order of 85^ of important part of this positioning sales volume and has itself was the need to appeal to women who segmented with the emergence of a have been less susceptible to the sector designated "longer than King pressures to stop smoking than men Size" (LTKS). There is fierce and now out- number them; women competition in this sector, most are particularly important in the major manufacturers having brand LTKS sector. representation in it; it is, however, a growth sector and it was The pack design for Raffles is here that Raffles was positioned. undoubtedly one of the most This places Raffles, without any controversial aspects of the brand particular heritage, in direct - not because it is incompatible competition with brands such as with the image and positioning, but Benson & Hedges Longer Length and because of its close resemblance to John Player Superkings both of the pack used by Imperial Tobacco which can capitalise on the image for its well established John and awareness built up by their Player Special sleek black with shorter (King Size) sister brands. gold lettering. This design undoubtedly fits with consumer The decision to~ make Raffles a low requirements in the market sector to middle tar cigarette was hardly into which the brand was launched: surprising since this is the level it is elegant, it denotes quality, of the main brands in the LTKS it appeals to women without sector. Low tar cigarettes have alienating men and vice versa and not, in the main, been very it has been seen to work successful because they have been successfully with JPS. unable to deliver in terms of 'taste' and the low tar sector has Imperial Tobacco, makers of JPS, remained static at around 15^ for were sufficiently outraged by the some years dominated by Silk Cut. similarity of the Raffles pack to The voluntary agreement by go to litigation and to do so on cigarette manufacturers to bring more than one occasion. Their case tar levels down is creating more was not, however, upheld despite activity within this sector but the fact that Raffles could be there are no indications as yet shown to be taking share from John - 3 -

Player Special. Whether this the success of any new decision means that yet more brands product, the pack is vital will appear in the future clothed with the realms of cigarette in elegant black and gold or marketing. whether some new colour-coding for up-market cigarettes will have to v) The product was initially be found, remains to be seen! pitched on a psychologically significant price-point, at a Perhaps one of the most important time when the consumer was strategic decisions in the launch particularly sensitive about of Raffles was its launch price. the cost. This was pitched rather lower than other prestige brands in LTKS sector selling at 99p for 20. The Results price rose after the introductory period in test market to levels of So what does all the careful around £1.08 (£1.16 RRP) but this planning and development conducted still represented good value to the by Philip Morris add up to in terms consumer compared with main of achievement? competitors. The controlled test market in the South saw the Raffles brand share Summary rise to &% of the market and this success was continued after Thus, having established the need national launch. 1985 saw Raffles for a new cigarette within the UK - take the number one position in the a market which must have been LTKS sector in its original launch somewhat disappointing to them, in area and become the eighth best comparison to their worldwide selling brand nationally. dominance - Philip Morris approached the problem in a This represents for Philip Morris a commendably logical fashion. doubling of the share of the market which they enjoyed with Marlboro i) The taste of the brand was alone, without any significant loss specifically developed for the of share for that brand. UK consumer. ii) The brand was positioned KAE Comment within the expanding "longer than Kingsize" sector, with a The success of Raffles illustrates tar (and therefore taste) a great many of the features which level in tune with market characterise new product successes trends. and which are often patently missing from those products that iii) Philip Morris recognised the fail. Having recognised the growth importance of a "quality" limitations for Marlboro in the UK, positioning, and of the despite its worldwide brand necessity to include women leadership, Philip Morris set about within the target audience. tackling the problem with a high level of commitment and a clearly iv) The packaging and advertising thought through strategy. Care was were developed to be entirely exercised in identifying the most consistent with the quality appropriate market sector, the positioning of the product. requirements of the target market Although clearly important to in terms of both product and - 4

positioning in that sector and this doubled the size of the static was then followed through in a lavatory cleaners market and single-minded fashion through a achieved a 60^ share of the successful and controlled test- expanded total. This was achieved market to a national launch. The by taking a completely fresh look need for high promotional at the market and satisfying expenditure in order to ensure previously unfulfilled consumer success was accepted and the needs. expenditure well utilised. While success can never be guaranteed, the lessons which can be learned One company which has recognised from new developments such as the validity of this argument is Raffles undoubtedly show the value Duracell. It is interesting to of single-minded commitment and examine their first development careful planning. away from batteries which is providing a new area of opportunity *********************************** for Duracell. Background 2. DURACELL - DURABEAM Until two years ago Duracell was a one product company with Alkaline Historically, conventional wisdom batteries. The company had has suggested that in identifying determined that in the first potential development areas for new instance diversification should be products, growth markets are likely in areas close to their existing to offer the greatest opportunties. business where they could use the However experience has shown that brand values associated with their because growth markets attract a batteries. Other important great deal of attention, entry into considerations to the Duracell such sectors is usually a "free for management were distribution all" with too many products chasing profile and international insufficient sales. Therefore potential. Duracell have quite a companies that have decided that large salesforce in the UK calling they would prefer to be big fish in on a large number of different little ponds have often been more types of outlet. It was felt that successful in profit terms in their Duracell's salesforece had the developments than those chasing the capacity to carry more lines, and more fashionable growth markets. any new product which had a similar distribution profile could prove KAE have often encouraged their attractive as it would share the clients to consider "flat" and even battery overhead. International declining market areas, as such appeal was also important to sectors usually do not attract new ,Duracell as all other Duracell comers, existing suppliers within subsidiaries throughout the world the raarket are often complacent or shared the problem of being one dissillusioned about the sector, product companies, and therefore and are looking for new pastures Duracell's UK management recognised themselves, and therefore an that a product with international exciting new product can take share appeal would be beneficial to the relatively easily and even company on a world-wide basis. revitalise the sector. A classic example of this is the launch by Lever Brothers of "Frish", which - 5 -

Choice of Market about torches currently available, and whether there were aspects of torches that could be improved. In the assessment of which market One fact that Duracell discovered to enter, one obvious route to the about existing torches was that on Duracell management was products the whole, consumers were not which used batteries. The most particularly satisfied with popular battery operated items torches. Although it was not a included toys, electronic games, product that was particularly "top calculators, radios, personal hi of mind" most people owned torches, fi, and personal products such as and most people tended to use them shavers and torches. Toys, in an emergency - for such things electronic games and calculators as leaks in the roof, burst pipes, were major growth markets when losing the dog at night. Often the Duracell started their situation where the torch was used investigation, but it was already was difficult, people needed their clear that toys and games were hands free to tackle a job but very fashion - orientated and found they had to hold the torch in calculators were tumbling in price order to direct the beam, and if as the market became they put it down they knocked it oversubscribed. Radios and over and broke the lens. The on- personal hi- fi's were also price off switch was also a problem competitive, and developing fast because it was unreliable. Duracell with hi-tech companies investing started to address these problems, heavily in technology and design. making the lens directional, so it Personal products also had some could be angled to shine the light heavy-weight companies fighting for where required if put down on a share, these companies again surface. The lens was also investing heavily in technology. protected by a lid when not in use, Thus, although sharing a similar opening the lid switched the torch distribution profile to batteries, on, and the whole casing was made these markets were rejected by of a robust plastic which would not Duracell because of their crack easily if the torch was competitive and volatile nature. dropped, while, last but not least, the torch was attractively designed On the face of it the torch market in black with a yellow strip looked fairly unattractive because feature. Duracell conducted it was quite small, static, and the research, consumers confirming that products had not changed for it was a product they wanted to years. However, the main suppliers own. The final product came in two were companies Duracell knew well - sizes, home and pocket, also its competitors in the battery including batteries so, although market, Ever Ready, Vidor and Varta considerably more expensive than - and Duracell believed that they many other torches on the market it could bring something new to the was ready to work and the customer market which they viewed as "soft". did not have to buy the batteries as well as the torch. This approach Product Development has now been copied by other torch manufacturers. The Durabeam was also the first torch to be Duracell carried out a detailed advertised, and, as the comments assessment of the market and the below indicate, the advertising was products available. They also very effective in communicating to researched how and why consumers innovative design of the Durabeam. used torches, what appealed to them 6 -

people who camp etc. The torch has Trade Views a strong beam but can also be used as an area light making it very Consumers and trade buyers were versatile. This torch has also impressed by the care and attention sold well despite the fact it costs to detail. Retailers were £13.95 including batteries. complimentary: Conclusions "The Durabeam products were pretty well researched, well packaged, they got their distribution right Duracell have made a real success and sell aggressively". (Grocery of the Durabeam range - investing Retailer) the torches with the brand qualities of their batteries: "It is technically a better durable, well-designed, well product. It is more expensive but thought out and technically far can carry the cost". (Electrical superior products to competitors. Retailer) They have obtained wide distribution in the UK and have "We used to have Ever Ready torches also developed a global product, and they were fairly static. When the range of torches is now sold Durabeam came along we started to throughout Europe and Canada, with push them properly and sales have other countries to follow soon. grown" (Variety Store Chain) Duracell have continued to research "I went round with the reps when their products to see how they have Duracell had just launched their performed in the market place, and torches and I actually saw women as a consequence have completely coming into the shops with cuttings changed the torch packaging as from magazines asking for the research indicated that people torch, I've never seen that happen liked to see the product before before". (Wholesaler) they bought it. Results and Further KAE Comment Development KAE has been very impressed by the Undoubtably the entry of the thoroughness of Duracell's torch Duracell Duraheam, as the new development programme and feel that torches were branded revitalised other companies should follow their the market and sales grow, but the example and have a less blinkered major proportion of Duracell's view of the potential for few share came from sales taken from products in some of the less the existing suppliers. In value exciting market sectors. terms Duracell now have somewhere Duracell's attention to detail in in the region of 20^ of the market. development projects is also an example well worth following! However the company has not rested on its levels and a year ago launched the Work Torch. This is a *********************************** much larger, more robust torch for people who are out of doors a lot in the dark. It is ideal for people who work at night and have to walk in darkened areas, or - 7 -

3. DEVELOPMENT COMMENT iii) Shopping at Home Most of the schemes involving supermarket shopping by computer i) The Mega Merger - A New have been very slow to get off the Opportunity? ground, so one needs to consider with some caution Telecard's new Everyone seems to be in a state of scheme through Prestel, which will daze following the incredible rush start in Kensington, Chelsea, of major bids recently. Will Hammersmith, Pulham, Wandsworth and Argyll succeed with Distillers or Camden. Deliveries for orders over Imperial with UB or Hanson with £35 will be free and shoppers will Imperial or GEC with Plessey? What be able to choose from 3,500 is certain is that the scene will branded food, drink and household never be the same again whether items. these bids succeed or not, because managers feel under pressure to One day this approach is bound to pull off other big deals. There become very popular; whether are usually also all kinds of new Telecard has the resources and opportunities arising from such expertise to make it work is an bids. We have talked about the unknown factor. We wish them well. trend towards disposals in the past: a large acquisition or merger iv) Old Product/Brand Development (if indeed there ever is a real merger in practice) can lead to a Beecham's success with Horlicks, number of businesses which do not Ribena and Lucozade shows what can fit easily within the larger be done when a company looks at its organisation, important changes can current resources and decides to lead to important new rejuvenate its brands. Brylcream, opportunities. if it succeeds, will certainly he the best example yet of such ii) Exciting New Savoury Snacks rejuvenation.

The recent announcement that Yet why did Beecham get into that Hunters Poods will sell . and state? Would Mars have accepted distribute Bahlsen's savoury the ownership of such great brands biscuits and snacks through outlets without trying to develop and other than retail grocers could redevelop them all the time? The boost the volume of the innovative Mars approach to old product snacks which have been so popular development is rare; most companies on the Continent for some time. have great resources in brands Pizzy bites, sesame seed products, allowed to smoulder in the Salzbrezel and Salzletten are just background. We have even done some some of the products which could research ourselves on many such obtain wider distribution. brands which show high consumer awareness without having been We believe that this market is keen advertised for many years. on variety, so trial is no problem, though repeat purchase obviously Every Chief Executive should look is. British consumers will have at his Brylcreems and Ribenas at much more opportunity of initial least once a year and ask the trial of interesting products than question: "Are we optimising our ever before. resources?" v) Independent Grocers and Self its own exclusive cigar under the Medication Halberd label. Are no product categories immune from own label? A recent research report showed We suspect that the answer is no. that almost 80^ of independent This is the real world and grocers are asked by members of the acceptance of it can lead to public about what they should buy opportunites to suppliers as well for minor ailments. This is not as to retailers. surprising, especially in the case of convenience stores with long vi) R&D In Electrical opening hours. There must be Manufacturing increasing scope for pharmaceutical manufacturers to market their A recent BEAMA survey found that products more strongly to the the average R (S D expenditure by independent retailers. small and medium sized UK electrical manufacturers was only vi) Self Diagnostic Kits £3,000! Half claimed to spend nothing on R & D at all. The self-diagnostic kit market is one which is still in its infancy While it obviously makes sense to in the UK, though the pregnancy kit use other companies' R&D and sector is well established and manufacturing where relevant, this Unilever's recent achievement of is surely an amazing finding and brand leadership within just a few may explain some of the problems months from entry shows what can be that we have in this country with done with a technically superior regard to innovation which even in product. the case of electrical appliances is much more than just design. In the US, home diagnosis kits are estimated to be worth $800 million If the same study had been carried currently and include, in addition out in Japan or Germany, we believe to pregnancy testing kits, the that the findings would have been following: vastly different. We hope that the survey results will make at least Ovulation test kits some of the medium sized manufacturers think about the Blood pressure monitoring kits implications.

Diabetic testing devices (blood *XX »X********x****»***»******»***»» glucose) Diabetic testing devices (urine) 4. TRENDS FROM ABROAD We will never reach the same kind of sales volumes in this country, but nevertheless we continue to believe that this is an important Keeping Tabs on Patents opportunity area. v) Luxury Own Label Products Many people in Westem Europe and North America are finding it Now that own label Champagne is increasingly difficult not only to almost taken for granted, one secure the protection of their own should not be surprised that the technical developments but to keep Spar Landmark group has introduced track of developments in other countries. This is necessary not intelligence. This new machine is only to remain informed as to what the fastest of its kind in the is going on but also to avoid world as well as having the largest inadvertently infringing foreign memory capacity. This development patents, through not being aware of was undertaken on the instructions their existence. Accordingly, the of the Japanese State Institute for president of the German Patent New Computer Technology as part of Office in Munich has begun to the first phase of a ten year compile an universal patent development programme, begun in register. This ambitious project 1982. According to "Japan Computer is designed to cover patents on all Industry Scan", the new machine can products, registered anywhere in handle 200,000 logic steps per the world. The only problem that second. This means that the he has at the moment, apparently, machine is five times bigger than is that he lacks either the space one developed in the previous year. to store the register or the people The new machine is known as the Co­ with the technical expertise to operative High Performance compile it properly! However, he Sequential Inference Machine. hopes to be "half-way there" by 1995. Robots about the House

Sludge Monster According to Robotronics Age News Letter, the market for electronic KAE Development News readers might home-helps in Japan will be worth be amused to know that somewhere in $2000 million by 1990. These the world there exists a gadgets will take over a great deal publication which rejoices in the of traditional housework. For title of "Sludge News-letter"! It example, they will he able to can be easily identified by its control the flow of hot water into distinctive brown logo and bio­ a bath and ensure that it reaches degradable paper. To be raore the correct quantity and specific, this publication is temperature. They will also be concerned with developments in the able to prepare complete meals. treatment of sewage in Austrialia, Additionally, it will be possible and this month brings news of a to phone up and check whether the wonderful new development from robots have shut the windows and Southern Cross Laboratories PTY switched off the hot plates on the Ltd. It concerns the creation of cooker! Presumably, future an accelerating chemical, which is generations of robots will be able essentially a mixture of bacteria to tell whether their owners have and enzymes which speeds up the been out drinking, or whether they process of degradation of organic have spent the evening with another waste products. The new product is robot! said to reduce smell and to prevent pipes from becoming blocked by The Smallest Factory in the grease and scum. World High Speed Computer The Japanese watch manufacturer, Citizen put on a special exhibit at The Japanese electrical company NEC the International Industrial Robot has developed a new machine which Show in Tokoyo. This was described can handle Prolog, which is a as a matchbox factory, measuring 10 programming language for artificial cm X 5cm x 5cm. This mini factory 10 -

was protected by glass and as 'simulating and hearty' contained mini robots which turned from the caffeine content we out wrist watches, with complete presume. Made from Assam tea accuracy, 24 hours a day and 365 and fresh milk, the sweets are days a year. The only supervision individually wrapped. needed was someone to put in component parts at one end and take 6. Instant coconut milk powder is away the finished watches at the available from the other. Philippines, made from dehydrated fresh coconut milk, *********************************** maltodextrin and sodium V caseinate. (Due to an advanced spray-drying technology they 5. IDEAS FROM ABROAD claim). The manufacturer says the product retains the taste, aroma and colour of the fresh 1. An American company is milk. introducing a new range of frozen VIP gourmet vegetables 7. Also seen at the Anuga packed in special microwavable Exhibition, Bur from the USA containers for putting is vegetable toast, described straight into the microwave as toast slices with 9 oven. A tab is lifted on the vegetables (carrot, onion, top of the box for water to be celery, red and green peppers, added then closed for cooking. garlic, tomato, cabbage, There are at present 14 parsley and broccoli) in each different varieties. slice.

2. An extension to Kraft's 8. What is thought to be the pourable dressing range in the first furniture polish/ USA is a mushroom dressing cleaner in mousse- is variety, which comes in being introduced in the USA by regular and reduced calorie Grow Groups Trewax. It is versions. We hear that Kraft described as giving paste wax is also test marketing a protection, adding life to creamy ranch-style pourahle wood and cutting frequency of dressing. cleaning.

3. Pocket sized disposable 9. From Australia comes Rico toothbrushes are available in Garlic .in foil sachets, which - the USA which can be bent to is a natural crushed pure any angle to reach difficult fresh garlic in ready to use areas in the mouth. form.

4. In Holland a shoe repair paste 10. A ready-mixed breakfast drink named Marathon is available in from France contains milk, white, brown, black ' and sugar, chocolate malt, transparent colours. It is wheatgerm, honey and for repairing worn training concentrated egg, for heating shoes as well as rubber, before serving. It is called leather and synthetic shoes. P'tit Dej and comes in 1 litre paper packs. 5. Seen at the Anuga Exhibition and made in West Germany were 11. Plastic pellets that melt in tea flavoured sweets offered boiling water into malleable 11 -

putty have been introduced in such pasta shapes as planets, moon the USA. They can be formed bases, astronauts and spaceships as into any shape and when cool well as through appropriate they harden into a hard and packaging design and advertising tough plastic that can be (£21 million was spent on marketing carved, drilled, sanded and in the first year). The Heinz planed. brand was obviously most relevant and the brand extension exercise 12. Stick Type Creap sounds as was treated as a major new product. though it should be in the insect house at the zoo, but Following a successful area test is in fact a creamy powder for market. Smiths launched Crispy coffee from Japan. It is Tubes nationally in the middle of packed in 3g stick packs. 1984 with heavy TV support. Smiths identified a potential opportunity ************************************ for a more adult savoury snack than New products worldwide are most of those on the market and met available at low cost from KAE's it through extruded hollow tubes subsidiary, IIS Ltd, Tel: Haywards made from potatoes. Within a year Heath (0444) 459718 the product had become Smiths third ************************************ most important savoury snack and has led to a number of other snacks being positioned for adults rather 6. NEW PRODUCT MONITOR than children.

This issue covers two recent food Consumer Trial products - Heinz Invaders and Smith's Crispy Tubes. Both were in the Supermarketing Top Twenty list Housewives Claiming to Have Ever announced last March, Heniz Bought - Base 906 Invaders being rated fifth and Smith's Crispy Tubes tenth. Invaders Crispy Consumer research through BMRB was Tubes carried out for KAE in August 1985 % % with a national sample of 906 housewives, while Stats MR All 18 20 conducted retail audits in 1727 With Children 43 45 grocery outlets, also in August Without 1985. Finally, we carried out Children 6 6 trade enquiries ourselves in 15-24 26 26 December 1985. 25-34 37 43 35-44 35 35 Background 45-54 9 11 55-64 7 4 65+ 4 4 Heinz launched Heinz Invaders nationally in February 1984 and AB 20 23 claimed that it had settled at Cl 17 18 around ^0% of the canned pasta C2 20 24 market by the end of 1984. Heinz D 18 19 had spent some £50,000 on pre- E 16 13 launch research and seem to have found a way of appealing LN/TVS 16 23 particularly to children through AG/CNT 16 14 - 12 -

Invaders Crispy Tubes Recent Buying % Housewives Claiming to Have Bought in Last Month - Base 906 HR/TSW 19 23 YKS/TT 22 17 Invaders Crispy Granada 22 18 Tubes Scotland 20 18 % %

Acorn Family All 11 12 With Children 27 30 A 7 13 Without B 21 20 Children 3 2 C 18 19 D 17 8 15-24 18 18 E 23 22 25-34 23 28 F 19 17 35-44 20 23 G 24 27 45-54 6 6 H 6 19 55-64 3 2 I 15 17 65+ 2 1 J 19 22 K 14 21 AB 9 13 Cl 8 11 Source: BMRB/Development News C2 14 15 D 12 12 Both products seem to have achieved E 10 9 high levels of claimed trial and both seem to have a similar LN/TVS 10 14 demographic profile, with strong AG/CNT 9 7 bias to housewives with children HR/TSW 14 13 and very litle trial among YKS/TT 11 10 housewives over 44. While such Granada 14 12 targeting is perfect for Heinz Scotland 9 13 Invaders it may be a little disappointing for Smiths who Acorn Family clearly would not want to limit their market to households with A 5 6 children. B 12 12 C 10 14 Heinz Invaders seems to have D 13 6 achieved good trial levels in all E 13 12 groups except those over 44 or F 14 11 households without children and in G 19 19 Acorn Groups A and H (Agricultural H 6 9 and Multi-Racial Areas I 6 10 respectively). Crispy Tubes only J 10 13 real weakness in Acorn Groups was K 5 9 in Groups D and A (Poor Quality Older Terraced Housing and Source: BMRB/Development News Agricultural Areas respectively). Buyers in the last month again show the bias of both products towards housewives with children. Heinz Invaders also seems to have - 13

relative strength in the C2D profiles than canned foods, so classes and in Acorn Group G direct comparisons between Invaders (Poorer Council Estates), while and Crispy Tubes would not be there are weaknesses in Groups A, correct, but even so surely it is K, H, I (Agricultural, High Status possible for a major savoury snack Retirement, Multi Racial High to do better than 50^ in Multiples Status Non Family Areas). Crispy and 56^ in Co-ops? Tubes seems to have a weakness in the Midlands as well as in Acorn Trade Research Groups A and D as in the case of initial trial. Heinz Invaders Sterling Grocery Distribution "Sales were quite good, but now they have slowed down... obviously Invaders Crispy much slower than Heinz Spaghetti... Tubes have not really increased our total Heinz spaghetti sales... Invaders only sells when advertised - take GB 77 43 that away and sales drop right off". (Small Chain) Major Multiples 93 55 Minor Multiples 85 30 "Don't compare with Heinz All Multiples 91 50 Spaghetti... there is a small market for them because of the Co-ops 84 56 children... not very successful Independents 39 17 going on the figures... future depends on advertising levels". London 87 53 (Small Chain) TVS 76 48 HTV/TSW 72 32 "Not bad... Heinz Spaghetti Central 80 39 obviously more popular but our Anglia 74 49 total Heinz pasta sales are Granada 74 51 slightly up, but marginally". Yorkshire 80 40 (Small Chain) Tyne Tees 70 39 Scotland 70 32 "Sales versus Heinz Spaghetti are 1:20... haven't taken from Heinz Source: Stats MR/Development News Spaghetti but other brands have gone down... Not really successful Heinz Invaders has achieved we only sell 2 cases per store per excellent sterling grocery day... I think it will die as they distribution - one of the highest market new things". (Major Chain) levels we have recorded recently for a new product. 39^ in "Sales not bad but could be better Independents is also repectable, since advertising has stopped... especially as so many companies our total Heinz pasta sales are seem to have almost given up in slightly up... I am not really sure this sector. if successful". (Medium Chain)

Crispy Tubes, on the other hand, "Not as good as when they first has clearly scope to do much came out on TV... sales versus better. It is true that savoury Heinz Spaghetti around 1:4... our snacks have much wider distribution total Heinz pasta sales have only - 14

increased marginally.... has been people like a change". (Medium backed with the right marketing". Chain) (Major Chain) "Quite good really but people might "Sales not too bad but have slowed get fed up... successful because down... our total Heinz pasta sales it's a new idea, but I think people have gone up but not by a lot... will go back to more established reasonably successful". (Medium savoury snacks, i.e. Crisps etc". Chain) (Major Chain)

"Not too bad... total Heinz pasta "Good to middling sales... holding has increased slightly... I would their own... successful if we look think successful... might improve at sales versus other snacks... further but needs more will probably be a stayer". (Small advertising". (Symbol Independent) Chain)

"I don't know how long we will "Not bad... better this time of the continue to stock it... sales just year, possibly beause people buy aren't good, and the soup... forget savoury things for Christmas... I it!" (Co-op) think it's successful". (Small Chain) "Sales not going very well... we are thinking of stopping it in our "Reasonable sales... we always sell small stores... we need the more around this time of the space... not really successful". year... I suppose it's successful (Small Chain) because it's different". (Small Chain) Crispy Tubes New Product Norms "Not bad... about the same as the other snacks... quite successful We have now recorded 228 new because it's a bit different". products so can make some (Small Chain) comparisons.

"Not too bad... better than I had Average Invaders Crispy thought... people like the (228 Tubes change... sort of successful - Products) yes". (Co-op) % % %

"People like something a bit Grocery unusual... it's made its mark now, Sterling so it will probably stay". (Symbol Distri­ Independent) bution 43 77 43

"Reasonably good sales... holding Housewife its own... successful, I think". Trial 16 18 20 (Medium Chain) Recent "Fairly good., successful... Purchase 8 11 12 steady sales... they are unique". (Major Chain) The Heinz sales and distribution muscle has clearly worked well for "Quite good but not outstanding... Heinz Invaders, resulting in - 15 -

reasonable trial and recent purchase levels. The most recent trade enquiries, however indicate a mixed picture and there remains a question-mark as to whether it will become a major long term product. We happen to believe that it will because of the Heinz branding strength.

Smiths Crispy Tubes, on the other hand, should do well in the long term if it can obtain more distribution: current stockists seem reasonably happy with it, while trial ^d repeat are both above average.

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