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Il vincitore
Il vincitore della Seconda Edizione del Premio Internazionale Giovanni Barezzi è Jeff Guiler
Chi è Jeff Guiler
45 anni, canadese, proveniente da Montreal, è Vice President Marketing di Imperial Tobacco Canada la principale società canadese di produzione di sigarette.
Commisione esaminatrice
| Brian Ace |
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Presidente Cartiera del Maglio |
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| Armando Cafiero |
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Direttore Generale Assocarta |
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| Marco Fedeli |
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Professore di Marketing ed Economia Aziendale Università degli Studi di Genova |
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| Dayton h. Matlick |
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Chairman SpecComm International Inc. – Usa ed Editore di Tobacco Reporter |
Motivazione
Il lavoro di Mr Guiler è un caso concreto di applicazione delle più avanzate tecniche di analisi e di ricerca in tutte le fasi del processo strategico e operativo necessarie per la gestione di un brand leader in un mercato difficile.
Il felice studio delle problematiche di marketing, branding, design, produzione e le acute decisioni nelle relazione con i fornitori, ha portato a soluzioni innovative ad alto valore aggiunto per il cliente e rivoluzionari nella cigarette industry.
In particolare il lavoro di Mr Guiler è da considerarsi un’esemplare elaborazione della capacità del packaging della sigaretta di determinare la decisione di acquisto dei clienti, aumentando contemporaneamente l’immagine di marca e la differenziazione dagli altri brand.
Va infine rimarcata l’eccellenza nelle soluzioni industriali [velocità di produzione] e lo sviluppo in soli 18 mesi di un progetto globale dall’ideazione all’immissione sul mercato.
Nell’insieme il progetto è da considerarsi un contributo di rara efficacia per lo sviluppo di logiche manageriali sostenibili ed efficienti.
Sintesi dell'elaborato premiato
The du MAURIER Signature Pack
Shaping Our Future BY DESIGN
Introduction
On June 13, 2005, Imperial Tobacco Canada (ITCAN) launched the new
du MAURIER Signature Pack, a distinctive eight-sided chamfered hinge-lid package.
The goal of this remarkable new design was to differentiate the product from those of its competitors and reinforce du MAURIER’s position as Canada’s leading premium cigarette brand.
The Signature Pack is a premium package design that sets du MAURIER apart from the rest of the brands on the Canadian market. It is constructed of durable high-grade card stock, providing protection for the cigarettes within. It features a hinge-lid for effortless access. The beveled edges allow it to slip easily into a pocket or bag, making it both convenient and functional.
The du MAURIER Signature Pack is produced in the King Size 25 format, in a total of five variants. Most hinge-lid packs in Canada hold 20 cigarettes. The vast majority of Canadian consumers expect the 25-cigarette format. The hinge-lid packs of 25 cigarettes, feature two separate asymmetrical foil-wrapped bundles to ensure freshness, and also provides the consumer with added protection for the product contained within the package.
This submission outlines the market factors that led to the development of the du MAURIER Signature Pack and the numerous challenges that were overcome to bring the new package from the drawing board to consumers in just 18 months, and make it a Canadian success story.
1.0 About the du MAURIER Brand
du MAURIER, sold almost exclusively in Canada, is the single most profitable Brand owned by British American Tobacco p.l.c. (BAT), responsible for about 6% of BAT’s total profit. In Canada, du MAURIER has been the sales share leader since 1998, representing 20% of total domestic cigarette sales, while its nearest competitor brand represents 10%. Consumer research confirms that Canadian smokers consider du MAURIER the highest quality brand whether or not they smoke it themselves. The trademark is unique is its artful balance between sophistication and mass appeal as THE premium brand.
1,1 The regulatory environment
du MAURIER competes in the most highly regulated market in the world, where public smoking in bars, restaurants and workplaces is widely prohibited, and all forms of advertising and nearly all forms of communication about tobacco products are illegal. Recent legislation will prohibit the display of all tobacco products in many markets by 2008.
1.2 The competitive environment
The market for cigarettes is declining in the face of historical industry trends, such as an aging population, consumer health concerns, the diminishing social acceptance of smoking, and the resurgence of illicit trade results in decline in the legitimate market. At the same time, the Canadian market, once dominated by premium brands, has been affected by the introduction of price competition among Canadian cigarette manufacturers since 2003. Growth in the “Value For Money” category has come at the expense of the premium category and has created highly competitive market conditions. The value segment grew from 27.3% in 2004 to 39% in March 2005. Thus, while du MAURIER’s share of the premium segment grew by 0.5% in 2004, its total market share has decreased by more than 5% in favour of value brands.
While du MAURIER occupies an enviable position in the marketplace, no brand can afford to rest on its laurels in today’s fiercely competitive market for tobacco products. It is evident that higher-priced premium brands such as du MAURIER must meaningfully differentiate themselves from “Value For Money” products and provide consumers with a perceptible value-added component if they are to retain their market share. Given the current ban on cigarette advertising and severe limits on promotional activities, manufacturers must find other meaningful ways of communicating brand awareness. Enhancements to packaging and other product details provide consumers with tangible touch points that effectively express the brand’s identity.
1.3 Brand Positioning
du MAURIER is THE premium, popular brand that reflects aspirations of the quality of life, and offers a product that balances rich taste and smoothness.
1.4 Innovations to tipping, design and retail merchandising
The Signature Pack’s introduction capped a series of steps that had already served to refresh and reposition the brand. Innovations in tipping, pack design and retail merchandising all shared attributes with new pack structure and combined to reinforce du MAURIER’s positioning as an updated, innovative, modern classic.
2.0 Package structure and development
Product structure is thus a key means of communicating du MAURIER’s identity to adult consumers. Just as structure/design played a preeminent role in the Apple computer company’s wildly successful IMac and Ipod, so it assumes much greater importance in today’s market for tobacco products.
The multi-disciplinary team working on the project had an ambitious mandate: develop a pack structure that:
• sets itself apart from other premium brands
• preserves the du MAURIER image, and
• presents adult consumers with a clear choice between the du MAURIER premium brand and “Value For Money” brands. Thus justifying another benefit of paying more for this premium brand.
2.1 Design criteria
• Communicate immediate premium quality cues
• Make a proud statement reflecting the confidence of a deserving market leader
• Make an active statement reflecting experiences of substance
• Remain consistent with the business situation, strategy and objectives
2.2 Design options
Dozens of design options were initially considered, most with the potential to fulfill the mandate; but pack structure ideas ran into roadblocks when it came to high-speed production feasibility.
The eventual solution was to involve Original Equipment Manufacturers or OEMs at the design stage. The Operations and Marketing teams came up with 15 prototypes that fit du MAURIER design criteria and could be feasible for high-speed production (minimum 300 packs per minute).
The Marketing team tested the 15 prototypes in research, which required 40 of each prototype. Seeing as there was not a machine on the market to produce these prototypes, they were all hand made.
The research indicated that there was one option that had much more appeal than all others, and would be used on an every day basis by consumers. This option was then refined based on all of the consumer feedback to maximize the potential and the functionality of the packaging concept.
Upon completion of the fine tuning, a detailed extended usage test was then conducted with franchise and non-franchise smokers. Once again, building the stimuli was a real test as no machine was readily available to manufacture the innovative research packages. The solution was to identify a specialty manufacturer capable of assembling a machine in time to deliver the complex mix of stimuli packs, and secure an agreement that made prototype testing and, eventually, production possible within a very tight timeframe.
2.3 Consumer research
The beveled-edge Signature Pack emerged the clear winner in consumer research, producing some of the most convincing results in recent memory. They signified that the Signature Pack design was taking a major leap in addressing unmet consumer preferences and needs.
Very Strong Franchise Loyalty Statements
• 88% rated new design as high appeal – like a lot
• 89% agree the new pack is an improvement versus the current
• 92% say the structure “fits du MAURIER brand very well”
• 97% of franchise smokers are ‘happy’ or ‘indifferent’ about the change
• 89% say du MAURIER should definitely change to this new pack”
Overwhelming Call to Action standards for Franchise
• 89% of franchise “definitely likely to tell others” about the change. Strong word of mouth
• Franchise smokers are now not willing to switch out of du MAURIER if new pack structure design is implemented. “Not likely to switch” – net gain +17%
• In fact, if both old and new packs were in market, the majority of franchise would choose the new pack on a regular basis – 89%
Overwhelmingly Positive Appeal Amongst Non Franchise
• 97% rated new design as high appeal – like a lot
• 97% agree the new pack is an improvement versus the current
• 86% say the structure “fits du MAURIER brand very well”
• 95% say du MAURIER should definitely change to this new pack”
Overwhelming Call to Action standards for Non Franchise
• 85% non franchise “definitely likely to tell others” about the change. Strong word of mouth
• Strong competitive trial implications - 78% of all competitive smokers indicated that “they definitely will try” du MAURIER in this new structure.
2.4 Management risk
Giving the go-ahead to the Signature Pack required a willingness to take major risks and make significant investments. Based on the above research, ITCAN management committed to press ahead with the project. The decision was a testament to the entrepreneurial spirit of a leading organization.
3.0 Execution
Once the direction was set, it took determination and passion of many of the ITCAN employees to capitalize on the opportunity. The distinctive eight-sided chamfered hinge-lid package progressed from testing to mass production on the shop floor in just 18 months. The obstacles were enormous. Manufacturing capabilities had to be reconfigured, calling for new machinery that required major investment. Legal experts drew up contracts and patents for the new packaging and machinery.
The production challenges were numerous. For example, the requirements called for hinge-lid packs of 25 cigarettes with two separate asymmetrical foil-wrapped bundles. Canadian consumers expect the 25-cigarette format, presented in two bundles to ensure freshness. The standard bundles of 12+13 did not fit the Signature Pack. The innovative solution was a split of 11+14.
As noted, ITCAN’s existing equipment did not have the capacity to manufacture the new package, so the company turned to an original equipment manufacturer (OEM) to design and deliver high-speed packer complexes.
When ITCAN decided to bring the new package to market a year earlier than originally planned, the OEM’s new high-speed machines could not be ready for shipping before late 2005, too late for the June 2005 launch. The solution was to order two lower-capacity machines from the specialty manufacturer that could be delivered more quickly. More complex negotiations were conducted with the OEM to allow the niche manufacturer to produce the patented Signature Pack until delivery of the high-speed machines.
Challenges also arose when the inner foil had to be folded in an unusual configuration at the rate of 180 packs per minute. ITCAN’s Product Engineering group worked closely with suppliers and the BAT technical group to iron out the challenges with foil folding.
4.0 Market Response/Measurement of success
At this point we only have three weeks of sales information. Sales to date show the new Signature Pack gaining over 1% market share in 3 key banners and the total du MAURIER market share has flattened out.
5.0 Conclusion
The Signature Pack is a revolution in pack structure and design in the tobacco industry. Its powerful statement stands as proof of inspired design and pack structure can achieve. It also demonstrates how a radical new structure can be successfully produced commercially, at 300 packs per minute, and in a short 18-month timeframe, given the creativity and determination of an impassioned, committed and very well integrated work team.
Relazione del premiato
It is a great honour for me to be here this evening to accept the Giovanni Barezzi Award on behalf of all the employees of Imperial Tobacco Canada, especially those who worked so hard on the du MAURIER Signature pack.
• I would like to first thank Cartiera del Maglio for making this award possible and the Examination Panel for their kind consideration of our submission.
• Literally hundreds of Imperial Tobacco Canada employees worked on this project. I thank them all for their dedication, commitment and focus. They are truly what make Imperial Tobacco Canada a winning organization.
• Two people deserve a special mention.
• First my thanks go out to Luis Barros, Vice President of Operations at Imperial Tobacco Canada. He drove the project from an operations point-of-view with the attitude that everything is possible. He also engaged the many external suppliers to jump on board with us and to help us make our vision a reality.
• Second I would like to thank Bram Koster, the overall project manager. The genesis of this project came from him and his leadership and vision saw it through to a successful end. He counted on the support from colleagues in almost all of Imperial Tobacco Canada’s departments, from finance to the corporate affairs and legal teams.
Introduction
• Now as I begin to talk about the pack, I can’t underplay how much of an impact the introduction of this pack was in the Canadian marketplace. In some circles it is seen as the biggest innovation in the Canadian tobacco market in many many years.
• How the du MAURIER Signature pack came to life is certainly a story of innovation and flawless execution. But most importantly it is the story about people working together to achieve a common goal.
• Let me begin by setting the stage for you with a little history of the du MAURIER brand.
• du MAURIER has always been THE premium brand in Canada. It is the best selling brand in Canada and accounts for 40 per cent of Imperial Tobacco’s revenue. You can appreciate how important it was for us to maintain this leadership position.
• However, other than improvements to the pack graphics, tipping design and continual improvements to the product itself, there had been no great changes to the brand in the past few decades. And external pressures forced us to take another look at du MAURIER to ensure that it continues its long tradition of excellence.
• The first pressure we faced was in pricing. Traditionally there was no difference in pricing across the board in the Canadian tobacco market. In 2003, this changed with the introduction of value for money cigarettes. This offered consumers lower priced options causing considerable switching out of the premium segment.
• In addition, restrictions on tobacco marketing in Canada limited our options. As you may be aware, Canada is one of the most highly regulated tobacco markets in the world. In 1997, federal legislation was passed that prohibited tobacco companies from advertising and from using brands to leverage sponsorships.
• In sum, we needed to differentiate ourselves. We needed to give consumers something that provided added-value.
• This left us with one way to develop and grow our brands – the pack itself.
• Therefore, we went to consumers to assess their reaction.
• From the first focus groups to the final quantative research, we had very positive feedback. Among du MAURIER, smokers 88% said they liked it a lot and 89% said du MAURIER should definitely change to the new pack. This was even more significant among non du MAURIER smokers of whom 97% said they liked it a lot and 95% said du MAURIER should definitely change the pack.
• These findings showed us that the change would not alienate existing du MAURIER smokers and had the potential to stem the downtrading to value-for-money brands that was largely responsible for the trademark’s five percent market share decline. What’s more is that the survey results clearly showed that our consumers were excited about a potential change.
• This pack is unique. There is really nothing else like it in the world. At the same time, it successfully captures the delicate balance between sophistication and mass accessibility in the most profitable segment of the market.
• We are at the point now where consumers are asking when we will be introducing the pack in other brands!
How did we do it?
• When you think that it took only 18 months to progress from testing to mass production, the passion and determination of the hundreds of Imperial Tobacco Canada employees becomes clear. So how did we go from the drawing board to the market in record time?
• First and foremost it was thanks to the collaboration between the different teams not only at an internal local level, but also internationally with involvement from Globe House, our world-wide head office in the UK, external design agencies and two European machinery suppliers.
• I’ll stop here to single them out by name. From a design standpoint we worked with Pigeon Branding and Keating Identity and from the machinery side we couldn’t have succeeded without the hard work of the folks from CME and Focke.
• They rallied to face the challenges, dismissed doubts and overcame obstacles.
• I would like to highlight three of these challenges and how our team pushed forward to overcome them.
Challenge One – Great design options that could not be manufactured
• As we began to look at design options for the new pack, it became clear that although we had some great designs, production was just not feasible.
• We solved this issue by looking for equipment manufacturers internationally to come up with prototypes that fit the du MAURIER attributes and were feasible for high-speed production.
Challenge Two – Produce 5,000 “stimuli” prototypes of the Signature Pack needed for consumer research
• Given the huge leap for consumers in going from current slide-and-shell packs to the new Signature Pack, the Marketing team wanted to test a wide range of variants.
• These were produced by hand to go through the first round of testing.
• From there the Signature Pack was identified as the leader.
• When the original equipment manufacturer that originated the pack concept and held the Canadian patent couldn’t do it in time, the solution was to identify a specialty manufacturer capable of assembling a smaller machine in time to deliver the 5000 stimuli pack. And speed up the launch date.
Challenge Three – Produce hinge-lid packs of 25s with two separate foil-wrapped bundles
• Almost everywhere else on the planet, hinge-lid packs hold 20 cigarettes. Still, Canadian consumers expect the convenience of the 25s format presented in two bundles to protect product freshness.
• The standard bundles of 12 plus 13 did not fit the Signature Pack but abandoning the two bundles was not an option. Again, teamwork involving both internal and external resources resulted in an innovative solution: a split of 11 plus 14.
Launch and Results
• We had such confidence in the success of our new pack that we took the bold move of gearing the whole organization for a complete replacement of the old packs for the new Signature Packs rather than arrange extension.
• We launched the new pack in selected major retail chains in the province of Ontario on June 13, 2005. This is by far our largest market, representing over 40 percent of our sales.
• We saw a market share increase of 1.8 percent within the premium segment. And we have been able to sustain this increase even after rolling out to all stores in the province.
• With the product in all stores in Ontario, we have seen share for the Signature Pack continue to grow in the premium segment.
• We decided that in order to leverage the full impact of the Signature Pack and overcome the fact that we are not allowed to do any kind of advertising, we needed to also redesign and refit our in-store displays to mirror the look of the pack. It is pretty staggering to think that we retrofitted close to 2,000 locations with new displays. It really brings the whole look and feel together into one cohesive unit.
• From an internal perspective, we brought all Imperial Tobacco employees together for a company day to launch the product. It was a special moment for all our employees when the suspense was broken with the unveiling of the Signature pack. It excited our most important ambassadors – our employees.
• We are rolling out the pack in the rest of Canada now.
• Needless to say there is already strong word-of-mouth buzz and we are confident it will succeed in the rest of Canada just as it did in Ontario.
Conclusion
• We at Imperial Tobacco Canada are extremely proud of this accomplishment and are delighted to receive this prestigious award. Thank you.
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