1. JOMC 172Project 1 - Spring 2005Page 1 Project 1 - Smokey

2. JOMC 172Project 1 - Spring 2005Page 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) 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

3. JOMC 172Project 1 - Spring 2005Page 3 Smokey Users Smokey’s core users are age 25-34. Only demo with index > 125. This group is more prone to medium/light usage. Source: MRI All Users / Smokey Users Source: MRI Heavy Users / Medium Users / Light Users (Men)

4. JOMC 172Project 1 - Spring 2005Page 4 Ethnic Users Above average usage by African- American and Spanish Speaking groups. 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

5. JOMC 172Project 1 - Spring 2005Page 5 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.

6. JOMC 172Project 1 - Spring 2005Page 6 Seasonal Sales Smokey 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).

7. JOMC 172Project 1 - Spring 2005Page 7 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.

8. JOMC 172Project 1 - Spring 2005Page 8 Impact on Media Objectives

9. JOMC 172Project 1 - Spring 2005Page 9 Target Audience Objective(s): 1. Primary Target Direct 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. Source: MRI All Users / Smokey Users

10. JOMC 172Project 1 - Spring 2005Page 10 Target Audience Objective(s): 1. Secondary Target Within 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.) Source: MRI All Users / Heavy Users Smokey Users