Tobacco

Camel Inroads

Consumers helped create line extensions

WINSTON-SALEM, N.C. -- When R.J. Reynolds Tobacco Co. sought the opinion of adult Camel smokers for a potential extension of its most popular cigarette brand, the manufacturer hoped for about 6,000 responses. After receiving more than 10 times that many through www.camelsmokes.com and direct-mail samples, Reynolds was confident enough to introduce four flavors in a Camel Signature line this month, reported The Winston-Salem Journal.

The flavors are Frost, a menthol; Mellow, which features a sun-cured tobacco; Robust, with a burley taste; and Infused, [image-nocss] with a spicy taste, said the report.

Getting that many Camel smokers involved in this yearlong project was a real eye-opener, Brian Stebbins, a senior marketing director for Camel, told the newspaper. Only adult smokers registered at the Camel website could participate, Stebbins said. The smokers sampled four blends from each style, grading them for aroma, taste, pack designs and logos.

Offering smokers this kind of development role proved to be a powerful idea, Stebbins added. What was interesting is the appeal of the four different flavors was pretty well split among the respondents.

Because of the significant cost of introducing a new cigarette brand, tobacco manufacturers are relying increasingly on brand extensions to gain market share from a shrinking U.S. smoker base, the report said.

Reynolds said in February that its cigarette market share for 2006 was 29.8%, down from 33.8% in 2001 but just 0.5 basis points below its market share in 2005.

Analysts told the paper that Reynolds is the clear leader in product and packaging innovation with its three growth brandsCamel, Kool and Pall Mallespecially compared with Marlboro, the top-selling cigarette.

Also having their debuts this month are two menthol styles from KoolFlow and Groove, and Pall Mall's orange packaging. Counting Kool XL in November and Camel No. 9 in February, which is aimed at adult female smokers, Reynolds has introduced five products or packaging strategies in the past six months.

The Kool styles provide a bolder taste and packaging look for a menthol category that traditionally has had little innovation, said Paul Scott, a senior marketing director for Kool. Even though some companies have added menthol extension of popular brands, Kool has no plans to offer a nonmenthol blend, he told the paper.

Flow has more of a rich, minty flavor and a mellow, laid-back appeal, while Groove has a more pronounced taste, Scott said. We believe both appeal to adult smokers who enjoy nightlife, self-expression and are fashion-forward. There's a sense of music and motion in their packaging.

None of the recent Reynolds brand extensions appear to be a mass-marketing effort to gain market share, Pat Shehan, the owner of Tarheel Tobacco in Winston-Salem, told the Journal. They're more niche products, what some people call an occasional smoke, that are capable of making small inroads. Reynolds must be hoping over time they will add up to a big step.

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