Consultants Research Market Associates Colquhoun BRAND EQUITY CHECKFORBENSON--& HEDGES IN CONJUNCTION WITH EXPLORATION OF THE GRATIS CATALOGUE LOYALTYS THE QUALITATIVE RESEARCH S REPORT Preparedfor:-Karen Rickards, Market Research Manager - Ctgarettes, Gallaher Ltd Prepared by:Colquhoun Associates JN9584/PROJECT COOPER/KC/GC June 1996 Unit 4, 8 The Crescent, Surbiton, Surrey KT6 4BN Tel: 0181 399 2141 Fax: 0181 399 7159 Mobile: 0850 256137 I BACKGROUND 1 II RESEARCH OBJECTIVES 3 III METHOD AND SAMPLE IV OVERVIEW 6 V MAIN FINDINGS 10 1. Components of brand imagery 10 1.1 Primary Signatures- 12 1.2 Secondary Signatures 14 1.3 Tertiary Signatures 14 2. What is the Benson & Hedges. Special Filter brand? =-, 16- 3. hint"Mapping 17 4. Other B=M Imagery 19 4.1 Regal Kingsize 19 4.2 Embassy No1 19 4.3 Dunhill 20 4.4 Rothmans 20 4.5 Marlboro Reds 20 4.6 Silk Cut 21 4.7 Superkings 21 4.8 Lambert & Butler 21 4.9 Berkeley 22 4.10 JPS. 22 5. Cigarette A, ,-- 6. The Midas Campaign in Summary 7. The E s in Dedii:-- 7.1 Golden Ingot 7.2 Golden Goose 29 7.3 Midas 31 7.4 ' Goldfish 32 7.5 Golden Fleece 33 7.6 Golden Tooth 33 7.7 Golden Syrup 35 8. Sponsorship 36 8.1 Formula One and Benson & Hedges 38 9 Loyalty Schemes 39 9.1 Attitudes to Collecting 41 10 The Benson & Hedges Promotion 43 10.1 The Gratis Catalogue 43 10.2 Leading Edge 10.3 Autumn Bonus/Winter Warmer 45 10.4 Go for Gratis 45 10.5 Attitudes to Gratis 46 APPENDICES,° - Appendix 1 Discussion Guide Appendix 2 Recruitment Questionnaire Appendix 3 Gratis Catalogue Pre Group Self Completion Questionnaire Appendix 4 Product Bank List Appendix 5 The 'Midas' Campaign a. Golden Ingot b. Golden Goose c. Midas d. Goldfish e. Golden Fleece- f. Golden Tooth g. Golden Syrup.:; Appendix 6 Competitor Advertising a. "Big isn't it?" - Marlboro . b. "Old, New, Borrowed, Blue" - Regal Kingsize c. Marlboro lights d. Embassy Nol Project Cooper: B&H Brand Equity Check The Summary Report BACKGROUND I Spectacular performance for the Benson & Hedges Special Filter brand in the 1980's turned to slow decline in the early 90's. Loss of share was attributed to a number of factors including a change in smokers' requirements, (influenced by enduring recession and continued pressure from the anti smoking lobby), a move towards cheaper brands and a desire for lower tar cigarettes. In addition, the Benson & Hedges 'Gold' symbolism, so relevant to the 80's was considered to have lost salience in the more politically correct, concerned 90's. Lost ground has not been replaced from traditional pools. Benson & Hedges Special Filter has always had a younger user profile but recent years have seen younger smokers turning to alternative premium brands in preference eg. (Embassy Nol, Regal King size (KS), Silk Cut and Marlboro Lights). Meanwhile those taking up smoking for the first time are less likely to start with the brand. Against this backdrop, drastic action was required to arrest decline. In 1995 Gratis, Benson & Hedges' promotional catalogue loyalty coupon scheme, was launched. Early feedback has been positive. The catalogue is perceived to be better than Imperial's Focus scheme but [still] leaves something to be desired where young smokers are concerned. Colquhoun Associates Page Number 1 Project Cooper: B&H Brand Equity Check The Summary Report The brand received tremendous marketing support concurrent with the launch of Gratis comprising; Advertising; the new press/magazine and poster campaign - 'Midas' Direct marketing activity to specific market sectors ('Leading Edge', 'Autumn Bonus' and 'Winter Warmers') Widespread dem activity accompanying the launch of Lights and Ultra Lights, Group collection schemes (Go for Gratis) Assorted localised promotional activity; club nights etc The launch of Gratis combined with this activity appeared to have arrested decline and market share had levelled off at the time at which research was conducted. Qualitative exploration is now required to evaluate Special Filter's standing in the context of the past year's activity and to assist in future planning and development for the brand towards 2000. In February 1996 Colquhoun Associates was invited to conduct research. This document comprises a summary of their findings, conclusions and recommendations. Colquhoun Associates Page Number 2 Project Cooper: B&H Brand Equity Check The Summary Report CTIVES OWE RESEARCH II The overall objective for this research was; TO EVALUATE SPECIAL FILTER'S STANDING IN THE CONTEXT OF THE PAST YEAR'S ACTIVITY AND THAT PLANNED FOR THE FUTURE Specifically research sought; e to investigate the overall image of Special Filter and its smokers amongst brand loyalists and (main competitor) other brand users n to explore imagery conveyed by the pack, Gratis, the advertising and various other marketing activities recently undertaken, and to understand what each contributes to overall image of the brand n to explore the relative standing of Special Filter compared with the rest of the market (vis premium sector) and its salience, today e to evaluate all of the above to offer guidance on the most appropriate launch activities for Gratis II and ways in which the Company may continue to develop Benson & Hedges image towards 2000. Colquhoun Associates Page Number 3 Project Cooper: B&H Brand Equity Check The Summary Report III METHOD AND S Twelve, qualitative group discussions, listed in summary form on the page opposite, were conducted. Six were 'Groups in Depth' 1 and lasted two and a half hours. The remainder were conducted in the normal way and lasted two hours. Six groups were conducted with female respondents and six with male respondents. A socio-demographic spread spanning BC1C2D was represented across the sample. Fieldwork was conducted at five locations namely Newcastle and Leeds (heartland for Regal King size), Sheffield and Birmingham (heartland for Embassy Nol) and London. All respondents had bought and smoked at least forty cigarettes within the week prior to recruitment. All were 'non rejectors' of the Benson & Hedges brand and all were familiar with the Gratis scheme, prior to the group discussions.' There was a mix across groups of brand preference. Benson & Hedges Special Filter, Regal King size and Embassy Nol were all represented (although not in even proportion). A variety of lifestages and lifestyles were also represented. Respondents ranged in age from 18-50. Younger respondents (18-30) were categorised as either 'settled' or 'unsettled' via their response to an attitudinal and lifestyle battery listed in the recruitment questionnaire (shown in the Appendix 2 to this report). Middle aged respondents (31-40) were specified as 'parents of dependant children' (under 14). Criteria on lifestyle and lifestage were left unspecified in respondent groups with the over 40s. Colquhoun Associates Page Number 4 Project Cooper: B&H Brand Equity Check The Summary Report A range of coupon collecting activity was also represented. Respondents who were 40 or under were categorised as either 'actively collecting' cigarette coupons of their preferred brand, or 'not collecting'. Collecting criteria in the over 40s was left unspecified. Fieldwork was conducted by Kate and Gordon Colquhoun between the 11-21 March 1996. Respondents were paid an incentive of £10/hour to attend group discussions. A recruitment questionnaire and discussion guide is shown in the Appendices to this report. 'Groups in depth' is a technique which allows researchers to explore individual response in a private and confidential way, before convening respondents to group discussions where they are exposed to the normal forces of 'peer pressure' and 'group effect'. During 'Groups in Depth' two moderators work simultaneously conducting two paired, fifteen minute depth interviews each prior to convening all respondents to a normal group discussion lasting two hours. 'Groups in Depth' were recommended for use in some of the groups in this project as it was hypothesized, prior to fieldwork that younger respondents may withhold or alter response to 'coupon collecting behaviour' in a group environment, because it may be perceived to be 'less than hip' behaviour. a Respondents to the two hour group discussions were given a Gratis catalogue during recruitment and asked to read it prior to attending group discussions. Respondents to the two and a half hour groups were asked to read a Gratis catalogue in the fifteen minutes they had to wait either before or after attending fifteen minute depth interview which preceded group discussions. Colquhoun Associates Page Number 5 Project Cooper: B&H Brand Equity Check The Summary Report The problem appears to be as follows; Benson & Hedges traditionally is known for its assured, confident market leader status, its long pedigree of premium quality, it's 'gold standard' benchmark and its discerning, committed, understated, and elegant imagery. Benson & Hedges is not vulgar, does not struggle too hard and traditionally does not have to 'shout' about its leading position, thereby undermining itself by having to do so. The pack maintains and endorses all the traditional brand positives (listed above), as does the brand's ubiquity, popularity, market presence and historic advertising. However, recent activity such as; n New advertising, the Midas campaign o Revised pack and Gratis tear strip n New range extensions (eg. Sovereign, diluting imagery) n Sponsorship in niche areas eg. Ice Hockey n Promotional catalogue activity in very similar vein to Focus e Lost share; cumulatively, could detract in time from traditional strengths by diluting core brand imagery. The Advatioa in Summary The current advertising campaign was rejected by the vast majority of this audience (Loyalists and OBUs alike). Initial feelings of stupidity and ridicule (because they do not understand the executions' either in terms of ACTION, ALLUSION or MESSAGE COMN[UNICATION) convert quickly to brand negatives and rejection, especially upon realisation of the degree to which the messages are submerged.