JOMC 172 Project 1 - Spring 2005 Page 1

Project 1 - Smokey

JOMC 172 Project 1 - Spring 2005 Page 2

Smokey Users

Current Smokey user base is broader than category’s user base.

• Significantly greater concentration among 45-54 age group (Index: 105 vs. 92)

SHARE SHARE VOLUME/OF OF USERS

USERS VOLUME INDEXCrimson 36.3 52.6 145

Gator 12.2 10.6 87Smokey 11.1 7.2 65

Tiger 7.5 7.8 104Bulldog 6.7 6.5 97

Rebel 5.5 4.7 85

All SmokeyAge Users Users

18-24 124 120 25-34 131 134 35-44 117 110 45-54 92 105 55-64 66 66

65 or over 53 49

• Higher concentration of medium & light users than other leading brands (lowest Volume/Users Index among top 6 brands).Source: MRI Product Summary

Source: MRI All Users / Smokey Users

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Smokey Users

Smokey’s core users are age 25-34.

• Only demo with index > 125.

• This group is more prone to medium/light usage.

All SmokeyAge Users Users

18-24 124 120 25-34 131 134 35-44 117 110 45-54 92 105 55-64 66 66

65 or over 53 49

AGE HEAVY MEDIUM LIGHT 18-24 133 105 93 25-34 102 111 135 35-44 123 105 109 45-54 97 106 96 55-64 75 85 80

65 or over 53 74 64

Source: MRI All Users / Smokey Users

Source: MRI Heavy Users / Medium Users / Light Users (Men)

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Ethnic UsersAbove average

usage by African-American and Spanish Speaking groups.

HEAVYALL USERS SMOKEY

USERS (men) USERS White 98 98 101 Black 113 131 95

Spanish Speaking 115 116 110

BrandsSpanish

TV %SOV

Bulldog 11.6Crimson 11.7

Eagle 4.3Gator 37.8

Pigg 1.9Rebel 14.9

Smokey 0.0Tiger 17.9

Wildcat A & B 0.0

•Heavy users (men) are more likely to be African American;Smokey users (adults) are more likely to be Spanish Speaking.•Other than Wildcat, Smokey is the only brand not using Spanish-language media.

Source: MRI All Users / Heavy Users Smokey Users

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Geographic Sales

Almost one-half (48.5%) of Smokey’s sales come from 27 “opportunity” markets.

• Criteria: Smokey sales > .5%BDI > 110

• These markets account for 32.4% of U.S. population and 37.3% of category sales.

Cume %Cume Brand

(DMA®) % pop. BDI Sales1 Denver 1.29 218 2.812 Phoenix 2.73 191 5.563 San Francisco-Oak-San Jose 4.98 183 9.694 Atlanta 6.86 167 12.835 Paducah-C.Gird-Harbg-Mt VN 7.22 167 13.436 Honolulu 7.60 166 14.067 Orlando-Daytona Bch-Melbrn 8.77 166 16.008 Austin 9.30 164 16.879 San Diego 10.25 159 18.38

10 Sacramnto-Stktn-Modesto 11.43 157 20.2211 Dallas-Ft. Worth 13.51 156 23.4712 Houston 15.22 152 26.0613 Hartford & New Haven 16.14 150 27.4414 Raleigh-Durham (Fayetvlle) 17.01 149 28.7515 Providence-New Bedford 17.60 144 29.5916 Charlotte 18.51 142 30.8817 Cleveland-Akron (Canton) 19.93 142 32.9018 Nashville 20.77 136 34.0319 Wilkes Barre-Scranton 21.31 135 34.7620 Tampa-St. Pete (Sarasota) 22.83 134 36.8021 Los Angeles 27.81 131 43.3222 Birmingham (Ann and Tusc) 28.45 125 44.1223 Las Vegas 29.01 114 44.7524 Miami-Ft. Lauderdale 30.40 114 46.3425 San Antonio 31.08 114 47.1126 Cincinnati 31.89 112 48.0127 Tulsa 32.35 112 48.53

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Seasonal SalesSmokey brand sales

mirror category sales patterns; higher sales periods are associated with summer and holiday weeks.

• Peak sales period is May - September, with peak sales during the last week of May (Memorial Day), late June, the first two weeks of July (week of July 4 is peak for the year), and early September (Labor Day).

• Additional sales spikes during the end of November, the end of December, and first week of the year (Winter holidays: Thanksgiving, Christmas, and New Year’s).

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Jan 5Jan 19Feb 2

Feb 16Mar 2

Mar 16Mar 30Apr 13Apr 27May 11May 25Jun 8

Jun 22Jul 6

Jul 20Aug 3Aug 17Aug31Sep 14Sep 28Oct 12Oct 26Nov 9

Nov 23Dec 7

Dec 21

Cat. % Sales Smokey % Sales

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Competitive Environment

Smokey brand is being outspent significantly by major competitors.

• Smokey fell from 3rd to 5th in ad spending in 2003.

• Largest % decrease in ad spending among leading brands.

Brands 2004 2003 % chg 04 Rank 03 Rank

Crimson 210.0 241.1 -12.9 1 1Gator 203.7 215.8 -5.6 2 2Tiger 147.4 135.0 9.2 3 4Bulldog 135.9 129.2 5.2 4 5Smokey 126.5 146.0 -13.4 5 3Rebel 123.7 122.2 1.2 6 6Eagle 90.5 93.4 -3.1 7 7Wildcat A & B 76.3 66.1 15.5 8 8Pigg 68.2 63.6 7.1 9 9

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Impact on Media Objectives

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Target Audience Objective(s): 1. Primary TargetDirect advertising toward men age 18-54,

with particular emphasis on men age 25-34.

Rationale: MRI indicates above-average usage by men (65% of Smokey users), age 18-54. Core users are 25-34.

All SmokeyAge Users Users

18-24 124 120 25-34 131 134 35-44 117 110 45-54 92 105 55-64 66 66

65 or over 53 49

Source: MRI All Users / Smokey Users

JOMC 172 Project 1 - Spring 2005 Page 10

Target Audience Objective(s): 1. Secondary TargetWithin the primary target, direct advertising toward

Spanish Speaking households.

Rationale: a. MRI usage indices are high in Spanish Speaking homes for the category, heavy users, and Smokey users. b. “Opportunity” markets (high BDI / % sales) correspond to major Hispanic markets (LA, Miami, Houston, Dallas-Ft. Worth, San Francisco, San Antonio Phoenix, etc.)

HEAVYALL USERS SMOKEY

USERS (men) USERS White 98 98 101 Black 113 131 95

Spanish Speaking 115 116 110Source: MRI All Users / Heavy Users Smokey Users