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case study "Premier"

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Information about case study "Premier"
Marketing

Published on February 15, 2014

Author: hiranust

Source: slideshare.net

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RJR’S Eclipse Rising from Premier Ashes

Group Members Aliza Mehmood Hafiz Wajid Ali Hira Farooq Gohar Shaheen Madiha Ali Maryam Bashir

Premier Cigarette

A cigarette that would satisfy smokers without threatening their health or irritating others around them.

Target market Sophisticated Upscale Urban Educated Older(over-25)smokers

Premier Composition • Complex product to make and to use.

Product

Price • Due to complexity and development cost RJR priced it about 25 to 30 cents more per pack (about 25%)than other name brand cigarettes.

Place • • • • • The company introduced the brand in Phoenix and Tucson Arizona St.louis Missouri

Promotion RJR launched an expensive campaign. Premier ads contain lots of copy and “just the facts”. They used the Tag line ,”The Cleaner Smoke”. Encouraged smokers to try Premier for one week. Sales promotions offered two or more packs for the price of one.

Tag Line

Premier Qualities Cigarette did not burn like a traditional cigarette. Cigarette did not emit any “side-stream” smoke. Packages carried instruction booklets that described the cigarette and explained how to light it properly.

Premium’s Failure Smokers didn’t buy it. They did not like the taste. They disliked the difficulty they had in lighting and smoking the Cigarettes. Rather than sticking with premier for a week, smokers decided quickly against the brand. After only 5 months consumers complaints that it smelled like burning lettuce and smoldering tennis shoes.

Eclipse

Eclipse • Despite premier’s costly failure , continued to pursue its dream. • They spent $200 million on research and development to produce a better smokeless cigarette. • As secondhand smoke became a issue so in 1995 Company announced to introduce a new version called “Eclipse”.

Target Market Adult smokers(over 35) People who want to enjoy smoking but who’d rather not smell like a smoker. People who didn’t want to expose friends and relatives to secondhand smoke.

Target Share • It would capture a 2% share of nations 46 million smokers. • RJR’s top brand Camel had just a 5% share. • Virginia Slims , a strong Philip Morris brand had a 2.4% share.

Eclipse Composition

Eclipse Qualities • Cigarette does not burn down. • The tobacco taste simply goes away once the hot air has burn down its work. • The smoker inhales and exhales smoke, but upon exhaling smoke quickly disappears. • It produces little side steam smoke.

First Test Market Result Reynolds tested the cigarette in 20 states involving 12,000 smokers. It claimed that Eclipse scored well with smokers and their non smoking friends.80% of both groups say that it was a breakthrough. Many smokers said that taste was as good as regular cigarettes. Smokers said that it was reasonable trade off because it was about 90% less secondhand smoke than standard cigarettes.

Cont.. In mid -1996 Eclipse entered in the Chattanooga,tennesse where the smokers were under societal pressure because of secondhand smoke. The company mailed smokers a 15-minute video in which a female smoker told the Eclipse’s advantages. Reynolds offered a free carton of Eclipse to the discovery group of 50-100 people.

Eclipse

Price • RJR Eclipse 10% per pack above the price of Premium brands.

Promotion • Eclipse spends about $110,000 on measured media in Chattanooga. • Ads showed a steaming teakettle with the copy “imagine a cigarette that smells like this”. • Later the ad copy contained lines such as “The smoke disappears .Your girlfriend doesn't.”

Second Test market • In mid-1997 , Reynaldo's added a test market in Lincoln , Nebraska.

Price • RJR priced Eclipse comparably to other premium brands.

Place • RJR limited distribution to about half of the tobacco sellers in Lincoln because the product required explanation.

Promotion Newspaper ad showed a lone smoker at a table of friends with the taglines: “Smoke that disappears .Taste that doesn’t.” “Less secondhand smoke .More firsthand pleasure.”

Cont... Billboards encouraged consumers: “ Enjoy smoking without smelling like smoke”. “Smoke on your couch, not on your porch”. “Smell like your cologne .Not your Cigarettes.

Results • In 1998 RJR announced that Cigarette do not meet expectations. • Some Consumers liked Eclipse flavor and others panned taste . • Consumers complained that it was so difficult to light the Cigarette.

International Market • RJR tested the brand in Germany with the name HI-Q . • RJR licensed the technology in Japan and Sweden to the Reduced-smoke cigarette tobacco companies . • In Japan the cigarettes were called “Airs”. • In Sweden the cigarettes were called “Inside”.

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