STRICTLY CONFIDENTIAL Lucky Tribe Concept Review and Strategy Recommendation s Prepared by SLAM Presented 27 April 1999 32135057 1 BAT-', t S C I O ' NW, 111 .+ ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L 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 SLAM 2 Lucky Tribe Concept Review and Strategy Recoin rendation s April 199 9 Report for Discussion 321350572 B.\TC& I S DU! r 'hilly 'lom . ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L 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 SLAM Lucky Tribe Concept Review and Strategy Recommendation s April 199 9 Report for Discussion 321350573 FAI'i i SnfU ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L 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 SLAM 4 Lucky Tribe Concept Review and Strategy Recommendation s April 199 9 Report tor Discussion 321350574 F, I\. Sn, ,, . =i,,Iq,li,,,. ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L 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 . SLAM 5 Lucky Tribe Concept Review and Strategy Reconune'uiation s April 199 9 Report for Discussion 32135057 5 BATA, l%P11.11 ?hd iy ?hUn: . ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L 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 SLAM 6 Lucky Tribe Concept Review and Strategy Reconiniendation s April 199 9 Report for Discussio-) 321350576 BATE, P S r, V , Philip 1lort.. ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L 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 SLAM Lucky Tribe Concept Review and Strategy Recoounencatwn s April 199 9 Report for Discussion 321350577 kd TI , 1'S r" 13 .hd i. .I .- ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L 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 .