FORT LAUDERDALE, Fla. -- Commonwealth-Altadis Inc. has launched what senior vice president of consumer marketing Al Dejewski has described as "the first hard pack innovation in over 50 years" in the form of Glide Tec: a sleek new packaging design for the company's USA Gold cigarette brand that allows consumers to "slide up, light up," making the 20 cigarettes readily accessible with the slide of a thumb.
The colors of the American flag are front and center on the USA Gold Glide Tec pack.
"It's the most significant launch in packaging for USA Gold in Commonwealth-Altadis' history," president and CEO Kevin Freudenthal said during a press conference. "From a strategic position … we're launching innovation to create some excitement for adult smokers."
Innovation, differentiation and consumer awareness have been central, not just to the development of Glide Tec, but to Commonwealth-Atladis' strategy overall--especially when it comes to USA Gold. Since joining Commonwealth-Altadis last year, Dejewski said the company has been "maniacally focused" on understanding and aligning with the modern today's 21-to-39-year-old consumer.
"Commonwealth-Atladis is not one of the biggest manufacturers in the market, and that's something we're embracing … for the time-being," said Greg Moser, vice president of trade marketing. "As a challenger in the category, we need to look at the category differently and the way we approach consumers."
The company re-launched USA Gold last January with those consumer insights in mind, which Dejewski reported has led to an acquisition of new consumers over the last six months, with share gains within eight of USA Gold's top 10 markets.
Dejewski added that the newly announced Glide Tec packaging was "the logical next step in the brand-building effort for USA Gold."
While the Glide Tec packs have been available to wholesalers and retailers in four lead markets since April, this only represents a first step. Besides rolling out nationwide this summer, Dejewski promised a robust media and education campaign to support the innovation.
"Not only are we introducing Glide Tec in our core markets, but we're investing $100 million to drive that awareness across the adult consumer landscape," Dejewski said.
Initial response has been positive. "Adult smokers are surprised by the high-tech application and like raising the flag--and the convenience," Dejewski said, pointing out test panelists who specifically loved the patriotic imagery and the "raise the flag" slogan.
Freudenthal teased that while the day's news centers on USA Gold, there's "a pipeline of excitement" on its way.
"When we look at the U.S., it is about USA Gold," Freudenthal said, adding that instead of trying to grow nationally, the company has identified core markets to focus in on. "The results today are promising. We're going in 80% of the states that we've focused in on versus a year ago. We're creating momentum in the brand, and you can see that in the marketplace. Stay tuned, because there's more to follow."
Commonwealth-Altadis is promoting the new USA Gold Glide Tec packaging through fully integrated plans to reach a wider adult-smoker audience. It is all part of a larger ongoing brand rejuvenation with activities designed to drive customers to retail to purchase the brand. These include:
- Direct marketing campaign to 1.75 million adult smokers, with volume-driving value offers, followed by a series of conversion and retention mailers to competitive and current adult smokers, delivering equity-driving brand messaging and high-value coupons.
- The USA Gold website www.JoinUSAGOLD.com is logging thousands of adult smoker visits with new and interactive messages about the brand, coupons and other online promotions.
- USA Gold's Blaze New American Trails Sweepstakes program features five months of online sweepstakes, awarding nearly $100,000 in prizes.
- New full-color USA Gold packaging features packs that stand out at retail and communicate a contemporary brand essence and value.
- An adult-smoker engagement program is driving awareness of the new pack through intercepts at high-traffic retail locations in key markets. This direct-to-adult-smoker marketing includes offering promotional materials such as extra cents off with multiple pack offers and connecting adult smokers to local activities.
- New point-of-sale materials that communicate the brand's "Made the American Way" positioning and drives adult smokers to online campaigns that reward them with coupons and prizes. In addition, a full POS campaign supporting Glide Tec packaging highlights the convenience and innovation of "slide up, light up."
Commonwealth-Altadis is the Fort Lauderdale, Fla.-based USA Division of Imperial Tobacco Group. It offers a broad portfolio of signature brands including USA Gold, Montclair, Dutch Masters, Backwoods and Phillies and the Phillies Krome.
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