LD Family

Август 8, 2022

Содержание

2. LD Family – Customers’ Off-Takes Decline of LD family: -24% October YTD YOY LD 2007 LE
3. LD Family – Customers’ Off-Takes Acceleration of the decline over the last 2 years Source: Megapolis
4. SKU performance – OFF-TAKES/ Oct’07 YTD Volume Decline in 2007 across all sub-Families 2007 YTD off-takes
5. LD Mid-Price SOM trend LD Mid-Price is a segment leader but under pressure since mid’06 YG
6. LD MP WD trend Small decline of LD MP (within 2 pp) WD due to LD
7. LD Mid-Price Regional Performance Highly regional Strong in Moscow, South & Central areas Very weak at
8. LD Pricing LD price positioning: low end of MP (12 rbls MRP), after NEXT re-positioning into
9. LD Pricing Aggressive MRP taken increase, above other MP brands Next Repositioning to 9 RUR as
10. LD Performance Summary No.1 Mid-Price brand and No.4 largest brand in Russia but volume under pressure
11. Line Extensions
12. LD Metallic Line – Performance Continues decline in 2007, for both lines Gold and Platinum GOLD
13. LD SS Line – Performance Replacement of SL is finished Acceleration of decline in 2007 ?
14. LD SSlims Line – Performance Promising Start of LD SSL in Retail but unlikely to reach
15. LD Standard – Performance up-date After long decline, LD Value reached the plateau @90 MMU monthly
16. LD MP vs Value lines SOM LD Standard replacement is completed in retail But SOM dynamics
17. LD Families Performance Summary Appeal of Metallic line is dependent on the LD position in the
18. Programs Q3’2007 LD NCP “SUMMER MOTION 2007” RESULTS
19. Objectives, GEO, Timing, Mechanics Objectives: To support loyalty to the LD brand family / Stimulate Trial
20. Communication Support Pre-printed OPF POSM (for retail outlets + KRA outlets equipment + X5 retail group
21. Weekly Statistics – Number of Entries (10 POP’s) The Overall result was in line with 2006
22. Results - Hard KPI’s vs. other JTI NCP’s Average industry redemption rate 4% achieved; Investment/POP for
23. Key Learnings & Recommendation Program targets (1 200 000 entries) were too optimistic/ over-estimated Free of
24. Programs Q4’2007 LD Round corner re-launch Nov-Dec’07
25. LD – RC launch support (Nov-Dec) LD Round corner launch support Nov-Dec’07 Shipments of non-promo RC
26. LD – Round Corner Launch Campaign Awareness/ image Press: mass press with high coverage, 34% TA
27. Retail Visibility materials Mini display Retail Visibility Dominant Visibility flight: Multi Facings; POSMs Nov’07 to Feb’08
28. CCC 1 -2 -1 contacts: brand information + GWP CCC 1-2-1, GWP in main ABC stratum
29. 2008 Brand Objectives and Support
30. 2008 Strategic Focus / Opportunities LD Objective: Consolidate the dominant position in Mid-Price to fuel Winston
31. Key LD Brand Initiatives 2007-08 LD Barrier-to-Entry Brand assessment Results on Dec 18, 2007 LD BASE
32. LD Support Plan Maximize the investments behind BTL programs Franchise Retention Conversion of SOB Value smokers
33. LD Program Details (1) - Jan-Feb’08 Round-Corner launch Support – 2nd Follow-up flight Support OBJECTIVE: to
34. LD – CCC Support in Q1 2008 CCC mechanics and gifts Gifts for Jan-Mar’08 Lighter with
35. LD Program Details (2) – Value Conversion Value Conversion Program (delayed due to production) Objective: drive
36. LD Program Details (3) - NCP National Consumer Promotion Objective: Franchise retention and SOB conversion (Value
38. Скачать презентацию

Слайд 2

LD Family – Customers’ Off-Takes
Decline of LD family: -24% October YTD

YOY
LD 2007 LE is 14,8 bl sticks, vs 20.6bl in 2006 (-28% YOY)

Source: Megapolis Off-Takes

Слайд 3

LD Family – Customers’ Off-Takes
Acceleration of the decline over the last

2 years

Source: Megapolis Off-Takes

Слайд 4

SKU performance – OFF-TAKES/ Oct’07 YTD
Volume Decline in 2007 across all

sub-Families
2007 YTD off-takes @ -24% YOY
LD Base decline @ -23% YOY, but largest in absolute terms

Source: Megapolis Off-Takes

Слайд 5

LD Mid-Price SOM trend
LD Mid-Price is a segment leader but under

pressure since mid’06
YG and Peter I are the only brands with positive long-term dynamics
If include LD Value, SOM @ 4.4% ? No.4 biggest brand in Russia

Source: ACNielsen, Oct’07`

Слайд 6

LD MP WD trend
Small decline of LD MP (within 2 pp)

WD due to LD Regular WD
LD RC distribution building still in progress

Source: ACNielsen, Oct07`

Слайд 7

LD Mid-Price Regional Performance
Highly regional
Strong in Moscow, South & Central areas
Very

weak at Urals and FE
Decline in all regions, with the strongest decline in weak areas

Source: ACNielsen, Oct’07

Medium

Stronghold

Low

62%

20%

18%

Слайд 8

LD Pricing
LD price positioning: low end of MP (12 rbls MRP),

after NEXT re-positioning into Value as of Jun’07
LD MRP increase in Nov’07 – 12.5 rbls
NEXT performance to be monitored
Changed relativities to SOB:
Wider gap to key Value: Alliance (from 2.7 rbls Oct’06 to 3,1 rbls July) and Yava
Strong narrowed gap to Peter I from 1.2 rbls Oct’06 to 0.4 rbls

Source: ACNielsen, Oct’07`, Urban + Rural

Слайд 9

LD Pricing
Aggressive MRP taken increase, above other MP brands
Next Repositioning to

9 RUR as of Jun’07 => could potentially escalate the issue
New JTI to provide for 50% of possible NEXT gains, LD being at 31%

Key SOB for NEXT @ 9 RUR

Source: ACNielsen, Urban+Rural BPTO 2006

Слайд 10

LD Performance Summary
No.1 Mid-Price brand and No.4 largest brand in Russia

but volume under pressure (-24% Off-Takes Oct YTD’07)

Слайд 11

Line Extensions

Слайд 12

LD Metallic Line – Performance
Continues decline in 2007, for both lines

Gold and Platinum
GOLD is on strongest decline (-32% YOY) but still the largest of 3 SKUs
LD Metallic strong in LD strongholds

Source: Megapolis Off-Takes

Слайд 13

LD SS Line – Performance
Replacement of SL is finished
Acceleration of decline

in 2007 ? to be monitored

Source: Megapolis Off-Takes

End of Slims shipments Jul’07

End of Slims IMS Aug’07

Слайд 14

LD SSlims Line – Performance
Promising Start of LD SSL in Retail

but unlikely to reach Slims level
SOM decline of total sub-family continues
Still low in distribution (41%)

Source: ACNielsen, Oct’07`

Слайд 15

LD Standard – Performance up-date
After long decline, LD Value reached the

plateau @90 MMU monthly
Full replacement of Soft pack is completed
Shows some growth YOY in the last 3 months due to the volume drop in the base period’06

Source: Megapolis Off-Takes

Слайд 16

LD MP vs Value lines SOM
LD Standard replacement is completed in

retail
But SOM dynamics is in line with decline trend of MP sub-families

Source: ACNielsen, Oct’07`

Слайд 17

LD Families Performance Summary
Appeal of Metallic line is dependent on the

LD position in the region
Promising start of SSL but still decline of the total SS+SSL family over time
Flat performance of LD Standard after re-launch, with low GM vs other SKUs

Слайд 18

Programs Q3’2007
LD NCP “SUMMER MOTION 2007” RESULTS

Слайд 19

Objectives, GEO, Timing, Mechanics
Objectives:
To support loyalty to the LD brand

family / Stimulate Trial and attract new consumers to LD
GEO:
National, Redemption centers in 70 main ABC cities (except Far East):
Timing:
Jun – Aug - shipments
July 02 – Aug 31 – active phase – Redemption centers were available
Sep 10 – Oct 03 Grand prize draws
Mechanics
Buy 10 packs of LD with promo OPF
Bring 10 OPFs to Redemption center
Get participant questionnaire and guarantied Prize
Fill in questionary and give back to promoters to participate in Grand Prizes and Automobiles Draw
Or
Fill in questionary and send it to PO box “LD”
WIN Grand Prizes or Automobiles
Total number of prizes
Guaranteed Prize – 1 200,000
Grand Prizes – 60
Automobiles - 15

Guarantied

Grand Prizes

15 Opel Zafira

Слайд 20

Communication Support
Pre-printed OPF
POSM (for retail outlets + KRA outlets equipment +

X5 retail group equipment)

1-2-1
fGLH CCC promoters have been announcing the program within the boost dedicated to LD only (2 weeks)
During promo f JTI CCC promoters have been announcing the program within standard matrix and fGLH promoters during work in Redemption centers
Hot Line
8 800 200 02 03 was available from 04 Jun till 15 Oct
WEB
The web site dedicated to the program has been created at www.ld-game.ru and www.ldgame.ru

Press
16 national issues, 61 publication
Metro
Moscow, St.Petersburg, Yekaterinburg, Novosibirsk, Samara – July-August (2 months)
RWS
Moscow and St.Petersburg - July-August (2 months)
Direct Mail
Direct mailing announcing Promo to 312 M participants of 2005 LD promo

Слайд 21

Weekly Statistics – Number of Entries (10 POP’s)
The Overall result was

in line with 2006 Y results
Weekly number of entries has been growing from week 1 to week 7 with 10% growth every week in average (same as 2006)
Promo duration 9 wks vs. 14 in 2006

Слайд 22

Results - Hard KPI’s vs. other JTI NCP’s
Average industry redemption rate

4% achieved;
Investment/POP for retention programs (0,30-0,60$/POP) is at par with CCC (0,45$/POP);

* - assumption based on previous years results

Слайд 23

Key Learnings & Recommendation
Program targets (1 200 000 entries) were too

optimistic/ over-estimated
Free of charge SMS (instant win mechanics) is one of the key attractions, making enter easier for SOB
Optimal length of retention-aimed program is close to 12-15 weeks (3-4 mnths); shorter then that working towards only trial
RECOMMENDATION:
Exploit current promo mechanics further considering key learnings and research findings
Period of the program 3 months to ensure continuous retention and conversion
Free SMS as the key registration channel
Visual Execution should be perfect and in-line with Image communication

Слайд 24

Programs Q4’2007
LD Round corner re-launch
Nov-Dec’07

Слайд 25

LD – RC launch support (Nov-Dec)
LD Round corner launch support Nov-Dec’07
Shipments

of non-promo RC product as of Aug 2007 (varies by SKU / region)
Announcement campaign in Press, Metro, POSM
BTL support: CCC, 1-2-1 GWP in retail

Packaging Change of LD Base family
RC Format: from CPB to Round-Corners
Minor design fine-tuning: Logo clean-up, logo colors fine-tune, whiter background

Слайд 26

LD – Round Corner Launch Campaign

Awareness/ image
Press: mass press with

high coverage, 34% TA Coverage (3+), JAN-FEB’08 – TBC
32 issues (Za rulem, Antenna, KP, Avtomir etc.)
Budget: 400 M USD
Metro in 7 cities, Nov’07 + Dec’07 (Moscow, St.Petersburg, Yekaterinburg, Novosibirsk, Nizhniy Novgorod, Samara, Kazan), JAN-FEB’08 (MOW, STP) – TBC
337 sides Nov’07 and 391 sides in Dec’07
Budget: 550 M USD
Retail Visibility
Dominant Visibility flight:
Multi Facings;
POSMs
Full new JTI coverage
Cycle from Nov’07 to Feb’08
Branded Displays in mass KRA «Pyaterochka»
Retention/ Conversion
CCC 1-2-1, GWP in main ABC stratum cities (37)
Target: 1/ LD SOB; 2/ franchise
Target contacts: 427 000

Слайд 27

Retail Visibility materials
Mini display
Retail Visibility
Dominant Visibility flight: Multi Facings; POSMs
Nov’07 to

Feb’08
Branded Displays in mass KRA «Pyaterochka»

Mobile hard poster

Слайд 28

CCC 1 -2 -1 contacts: brand information + GWP
CCC 1-2-1, GWP

in main ABC stratum cities
Target: 1/ LD SOB; 2/ franchise
Target contacts: 427 000 (NOV’07 – MAR’08)
Target contacts for NOV’07 – DEC’07 = 200 000

gift x 2 packs

1 pack free x 3 packs

gift x 10 packs

Conversion pattern

1 carton free x 1 carton
(only for period 17.12.2007 – 28.12.2007)

Слайд 29

2008 Brand Objectives and Support

Слайд 30

2008 Strategic Focus / Opportunities LD
Objective:
Consolidate the dominant position in

Mid-Price to fuel Winston Growth
Fix the Structure ? achieve superior performance of all Product mix elements
Packaging Up-grade: RC on the market; further evaluation – during Brand Audit
Product improvement
Pricing
Maximize potential of Brand extensions ? TBC based on brand Audit
Leverage on Premium profile of LD Gold, Platinum, S. Slims
Assess role of LD Standard
Rejuvenate Brand Image with relevant TTL
Further evolve brand image

Слайд 31

Key LD Brand Initiatives 2007-08
LD Barrier-to-Entry Brand assessment
Results on Dec 18,

2007
LD BASE brand Mix Re-development:
Product re-development
Stage 1. Blend Fine-tuning towards smoother cleaner taste ? IMPLEMENTED
Stage 2. New blend development – PAM test - AA3 is in progress
New communication development & Packaging modification / re-design
Pending Brand Assessment results
Both to be ready by Q3’08
? Full brand Mix re-launch – as of Q3 2008 on the market

Слайд 32

LD Support Plan
Maximize the investments behind BTL programs
Franchise Retention
Conversion of SOB

Value smokers
Maximizing SS development
3 Support cycles are planned
Nov’07 – Feb’08: Round-Corner launch support (cont from Q4’07)
March-Jun’08: Retention NCP program
Sept – Nov’07: LD Base Brand Re-launch

Слайд 33

LD Program Details (1) - Jan-Feb’08
Round-Corner launch Support – 2nd Follow-up

flight
Support OBJECTIVE: to drive the awareness of LD Base Round Corner pack, to enhance the LD Quality perception
Retail Visibility: Continuity of the Nov’07 to Feb’08 cycle
National coverage / All JTI universe
POSM / Multi-Facings
Press / Metro / (Feb’08): 2nd flight of ROUND CORNER ANNOUNCEMENT
Press: National Mass titles with Male audience
Metro: 7 largest cities
Visual: the same as in NOV-DEC’07
CCC: Round Corner announcement and conversion amongst franchise and SOB smokers
Standard mechanics: GWP for 2-5-10- packs
Switching Pattern: Male Value & MP SOB smokers ? LD Base; Female Value & MP SOB smokers ? LD SS; if SS is rejected, LD Base Franchise ? LD Base Retention offer;
GEO: all CCC cities with focus on Strongholds
Timings: Jan’07 – Feb’08

Слайд 34

LD – CCC Support in Q1 2008
CCC mechanics and gifts
Gifts for

Jan-Mar’08

Lighter with torch

Ash tray

Mug

Matches

Lighter

Ash tray

Mug

Matches

Free pack

Слайд 35

LD Program Details (2) – Value Conversion
Value Conversion Program (delayed due

to production)
Objective: drive the conversion from Value brand (key LD SOB) into LD Base
3 cycles (in line with Brand support cycles):
Jan-Feb’08: RC announcement (delayed)
Objective: LD Base Round Corner pack up-grade announcement; Confirmation of Product invariable quality
1/ GLH Value brands: In-pack inserts with LD info into all GLH Value brands (LD Std + St.George / Troyka / others)
Rationale: 1/ GLH Value brands are key LD SOB; 2/ Value brand smokers trust their brand manufacturer ? Program will look like “News” from Liggett-Ducat factory
2/ non-GLH Value brands:
CCC amongst Values smokers with Brand info / GWP

1st draft of RC announcement insert

Слайд 36

LD Program Details (3) - NCP
National Consumer Promotion
Objective: Franchise retention and

SOB conversion (Value and MP)
Timings:
Shipments Apr 2008
Promo participation May – July 2008
Mechanics: Deco Pack with on-pack Promo announcement
Concept / Mechanics: tbd – briefing process is started
Promo Offer in all LD Mid-Price, but not Std
Support at:
Retail Visibility: national coverage
CCC: NCP info to SOB Value smokers
Info In-Pack insert in GLH Value brand (announcement only)
Direct Mail to Value SOB smokers (LD DB) – appr 50’000 smokers
Press announcement / post-PR: mass press announcements
Current status
In development (agencies have been briefed)
To be finalized in Dec’07

LD Family

Содержание

LD Family – Customers’ Off-TakesDecline of LD family: -24% October YTD

LD Family – Customers’ Off-TakesAcceleration of the decline over the last

SKU performance – OFF-TAKES/ Oct’07 YTDVolume Decline in 2007 across all

LD Mid-Price SOM trendLD Mid-Price is a segment leader but under

LD MP WD trendSmall decline of LD MP (within 2 pp)

LD Mid-Price Regional PerformanceHighly regionalStrong in Moscow, South & Central areasVery

LD PricingLD price positioning: low end of MP (12 rbls MRP),

LD PricingAggressive MRP taken increase, above other MP brandsNext Repositioning to

LD Performance SummaryNo.1 Mid-Price brand and No.4 largest brand in Russia

Line Extensions

LD Metallic Line – PerformanceContinues decline in 2007, for both lines

LD SS Line – PerformanceReplacement of SL is finishedAcceleration of decline

LD SSlims Line – PerformancePromising Start of LD SSL in Retail

LD Standard – Performance up-dateAfter long decline, LD Value reached the

LD MP vs Value lines SOMLD Standard replacement is completed in

LD Families Performance SummaryAppeal of Metallic line is dependent on the

Programs Q3’2007LD NCP “SUMMER MOTION 2007” RESULTS

Objectives, GEO, Timing, MechanicsObjectives: To support loyalty to the LD brand

Communication SupportPre-printed OPFPOSM (for retail outlets + KRA outlets equipment +

Weekly Statistics – Number of Entries (10 POP’s)The Overall result was

Results - Hard KPI’s vs. other JTI NCP’sAverage industry redemption rate

Key Learnings & RecommendationProgram targets (1 200 000 entries) were too

Programs Q4’2007LD Round corner re-launchNov-Dec’07

LD – RC launch support (Nov-Dec)LD Round corner launch support Nov-Dec’07Shipments

LD – Round Corner Launch Campaign Awareness/ imagePress: mass press with

Retail Visibility materialsMini displayRetail VisibilityDominant Visibility flight: Multi Facings; POSMsNov’07 to

CCC 1 -2 -1 contacts: brand information + GWPCCC 1-2-1, GWP

2008 Brand Objectives and Support

2008 Strategic Focus / Opportunities LD Objective:Consolidate the dominant position in

Key LD Brand Initiatives 2007-08LD Barrier-to-Entry Brand assessmentResults on Dec 18,

LD Support PlanMaximize the investments behind BTL programsFranchise RetentionConversion of SOB

LD Program Details (1) - Jan-Feb’08Round-Corner launch Support – 2nd Follow-up

LD – CCC Support in Q1 2008CCC mechanics and giftsGifts for

LD Program Details (2) – Value ConversionValue Conversion Program (delayed due

LD Program Details (3) - NCPNational Consumer PromotionObjective: Franchise retention and

Похожие презентации

LD Family – Customers’ Off-Takes
Decline of LD family: -24% October YTD

LD Family – Customers’ Off-Takes
Acceleration of the decline over the last

SKU performance – OFF-TAKES/ Oct’07 YTD
Volume Decline in 2007 across all

LD Mid-Price SOM trend
LD Mid-Price is a segment leader but under

LD MP WD trend
Small decline of LD MP (within 2 pp)

LD Mid-Price Regional Performance
Highly regional
Strong in Moscow, South & Central areas
Very

LD Pricing
LD price positioning: low end of MP (12 rbls MRP),

LD Pricing
Aggressive MRP taken increase, above other MP brands
Next Repositioning to

LD Performance Summary
No.1 Mid-Price brand and No.4 largest brand in Russia

LD Metallic Line – Performance
Continues decline in 2007, for both lines

LD SS Line – Performance
Replacement of SL is finished
Acceleration of decline

LD SSlims Line – Performance
Promising Start of LD SSL in Retail

LD Standard – Performance up-date
After long decline, LD Value reached the

LD MP vs Value lines SOM
LD Standard replacement is completed in

LD Families Performance Summary
Appeal of Metallic line is dependent on the

Programs Q3’2007
LD NCP “SUMMER MOTION 2007” RESULTS

Objectives, GEO, Timing, Mechanics
Objectives:
To support loyalty to the LD brand

Communication Support
Pre-printed OPF
POSM (for retail outlets + KRA outlets equipment +

Weekly Statistics – Number of Entries (10 POP’s)
The Overall result was

Results - Hard KPI’s vs. other JTI NCP’s
Average industry redemption rate

Key Learnings & Recommendation
Program targets (1 200 000 entries) were too

Programs Q4’2007
LD Round corner re-launch
Nov-Dec’07

LD – RC launch support (Nov-Dec)
LD Round corner launch support Nov-Dec’07
Shipments

LD – Round Corner Launch Campaign

Awareness/ image
Press: mass press with

Retail Visibility materials
Mini display
Retail Visibility
Dominant Visibility flight: Multi Facings; POSMs
Nov’07 to

CCC 1 -2 -1 contacts: brand information + GWP
CCC 1-2-1, GWP

2008 Strategic Focus / Opportunities LD
Objective:
Consolidate the dominant position in

Key LD Brand Initiatives 2007-08
LD Barrier-to-Entry Brand assessment
Results on Dec 18,

LD Support Plan
Maximize the investments behind BTL programs
Franchise Retention
Conversion of SOB

LD Program Details (1) - Jan-Feb’08
Round-Corner launch Support – 2nd Follow-up

LD – CCC Support in Q1 2008
CCC mechanics and gifts
Gifts for

LD Program Details (2) – Value Conversion
Value Conversion Program (delayed due

LD Program Details (3) - NCP
National Consumer Promotion
Objective: Franchise retention and