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STRICTLY CONFIDENTIAL

Lucky Tribe

Concept Review and Strategy Recommendation s

Prepared by SLAM

Presented 27 April 1999

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ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L

Contents

Section 1 . Situation Review and Objectivesa) The brief and remit of the reportb) Definition of the report outpu tc) Our approach and methodolog y

d) Initial observations & overall objectivese) Summary

Section 2. Brand Profil ea) Conception of Lucky Tribeb) Communicating the brandc) Key influencersd) Definition of the Lucky Tribe concept and its relationship to BAT

e) Summary

Section 3 . Background & Researcha) Summary of F1 teams' images, drivers and principal sponsors &

summary

b) Review of the F1 circuit & summaryc) Media overvie w

d) Sales & marketing programme for Lucky Tribe clothinge) Summar y

Section 4 . Review of Alternative Strategies, Leading to Our Recommendations

a) Analysis of consumer & media strategies and positioning statements

b) Recommended strateg y

Section 5 . Launching Lucky Tribe

Phase 1 : internal preparation

a) Objective sb) Activity

Phase 2 : preparing for the launchc) Objective sd) Target audiences

e) Spokespeople

f) Activity

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Phase 3 : launc ha) Objectivesb) Target audiences

c) Spokespeople

d) Activit y

Phase 4 : season 1a) Objective s

b) Target audiences

c) Spokespeople

d) Activity

Phase 5 : between seasonsa) Objective s

b) Target audiences

c) Spokespeople

d) Activit y

Phase 6: season 2

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Section 1 . Situation Review and Objective s

Our aim in this section is to clarify where Lucky Tribe is currently and set out

the task SLAM has been given .

1 .a . The Brief & Remit of the Report

SLAM, the youth division of Charles Barker BSMG Worldwide has been briefedby Jan Verlinden to :

"analyse the Lucky Tribe concept and recommend the most effective two-yearstrategy for the roll-out of Lucky Tribe . "

We were originally briefed by Jan Verlinden and Suzanne Meldrurr in November1998 and presented our proposals in the same month . Since then, changes tothe visual appearance of the BAR team have occurred, notably to the livery of

the car and uniforms of the pit crew, which necessitates us revisiting the natureof the concept and the plan of action .

The challenge, as agreed between Jan and SLAM, is to find a solution to the

premise :

"if there is neither a distinctive Lucky Tribe car nor (on race day at least) aneasily identifiable team behind the Lucky Strike car, how can the Lucky Tribeexist outside of BAR?-

1 .b. Definition of the Report Outpu t

In addition to answering the above question, the purpose of this document is to

enable a clear understanding of the Lucky Tribe concept, i .e . a profile of what

Lucky Tribe is and the potential it holds .

To facilitate this, we have first of all researched :

The relationship between Lucky Tribe, BAT & BA RCreative influences driving Lucky Tribe and its core brand va ues

F1 teams and the circui tConsumer media in target markets

We then go on to :Analyse a series of potential strategies, recommending one consumer and

one media strategy as the way forward

Advise on the evolution of Lucky Tribe between now and the end of 200 0

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The next stage will be to provide an overview of how to implement the

programme . This will include :

an overview of your sales and marketing capabilities in end markets

an analysis of central v local implementatio n

1 .c . Our approach and methodolog y

When we came to re-visit the concep- : of Lucky Tribe, in light of the changes tothe pit crew uniform and car design, we believed it necessary to go right back tothe origination of the concept, to look at what you were hoping to achieve .

We held several meetings with Jan Verlinden and Fiona Mollet ; we also met

with 141 and TMG .

We examined work undertaken by Bats Dcrland, including :

the brand muscles of Lucky Strik ethe creation of Lucky Tribe

the choice of nam e

the key infuencers as to its identit ythe first and current Lucky Strike F1 advertising campaign s

We also searched the Internet and recent print media to audit :the circuit sother F1 team s

the way Jacques Villeneuve is represented in the press

F1 web-sites, chat rooms and fan clubs on the Interne t

Finally, we commissioned our sister media buying agency, BJK&E media, to

research youth media in all target markets (i .e . the Lucky Strike target marketson the F1 circuit) :

Italy

France

Spain

Germany

-' BeneluxJapanIndonesia

BrazilU K

In short, we have wiped the slate clean and gone back to basics .

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1 .d . Initial Observations and Overall Objective s

In line with the original brief, we still believe Lucky Tribe is a sound device that,

given the right strategy, could :

• reflect the brand values of Lucky Strike (helping to differentiate the Lucky

Strike sponsorship from BAR and the 555 sponsorship )

• differentiate Lucky Strike in a crowded marke t

• add weight to the sponsorship of what is currently Jacques Villeneuve's

ca r

To do this, Lucky Tribe must emulate Lucky Strike's FREE THINKING MAN (i .e .

it should be confident in itself) as created by Bates Dorland

The objectives of the Lucky Tribe campaign should also reflect those of the

overall Lucky Strike campaign, but twist them to :

• add relevance in the arena of F 1

• satisfy the restraints a new brand hold s

The Lucky Strike objectives assigned to create the "free thinking man" brand

essence are :

1) Flex all muscles to a varying degree byReinforce living legend status (not currently applicable to Lucky Tribe)

Reference the original American drea m

w Have its finger on the urban pulse

Proving its playful min d

2) Tap into aspirations of the target market

p;- With purpose

i, Avoiding the trivia lBeing experimental and thought provokin g

3) Develop concepts that allow for :

Local market communications

Local market sophisticatio n

t4 Translatability

But Lucky Tribe must go beyond the objectives of Lucky Strike . We must create

a new brand that differs from Lucky Strike to:

• facilitate a greater emotive response from the target audienc e

• offer wide-ranging communications and licensing remits

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1 .f . Summary

The purpose of this report is to :

• "analyse the Lucky Tribe concept and recommend the most effective two-

year strategy for the roll out of Lucky Tribe . "

To do to this, we must recommend a solution to the premise :

• "if there is neither a distinctive Lucky Tribe car nor (on race day at least) an

easily identifiable team behind the Lucky Strike car, how can the Lucky Tribe

exist outside c f BAR? "

If Lucky Tribe is to be successful in raising awareness of Lucky Strike in F1 , it

must reflect the brand values of Lucky Strike .

Therefore, whatever Lucky Tribe is, it must :

• Reference the American Dream

• Be urban

• Be playful ;i .e . humorous, cheeky, audacious)

• Avoid the trivial (giving real added value )

• Provoke thought and be experimental

• Allow for end market translatabilit y

• Be emotive

• Offer wide-ranging communications and licensing opportunitie s

SLAM

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Section 2 . Brand Profile

This section will review the creative driving forces behind Lucky Tribe to

consolidate the concept from origination to today . It will analyse the image

Lucky Tribe should portray and ensure the brand manifests itself coherently and

effectively .

2 .a. Conception of Lucky Trib e

We understand the original brief for Lucky Tribe, as given to E-ates, was tocreate a unique Formula One team .

Indeed, the subheading of Lucky Tribe, as determined by Bates USA is :

• "An Original Formula One Team "

When choosing the name, Bates defined a set of criteria to create the specificattributes assigned to the team . These were :

collective nou n

flex American Dream and Playful Mind brand muscle sconvey individual strength whilst operating as a collective name

emotional iivolvement (depth & meaning )

US sport team connotation (NBA, NFL, MLB, NHL - not motorsport)

positive statement about the tea m

'"non-irritable" (e .g . not appear flippant to commentators, media, etc .)

mix eploitaole (e .g . merchandise )

Bates recommended the team name is prefixed with "Lucky Strike", and from

the set of criteria, the names they put forward were :

• Trib e

• Warriors

• Teamworks

• Pioneers

• Liberators

"Lucky Strike Tribe" was chosen as the preferred name and, since then, "Strike"

has been removed .

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The name was chosen because it reflects :• a team - group of people with common objectives

• authenticiy• self confidence

• self esteem

• freedo m

The concept evolved to be described as follows :

"Lucky Tribe is a Formula One team that has been built around a uiique point ofview that goes beyond fast cars and famous drivers .

It's a gathering of highly skilled imaginative and dedicated individuals with

diverse backgrounds and skills who all have something to contribute to the

team .

It's a team in which no one member is more important than the next . Each isimportant, each with a job to do . And all are ready to challenge theodds . . . . . together . "

2 .b . Communicating the Bran d

From the work Bates has done, SLAM has begun to put together the key wordsand phrases to communicate Lucky Tribe .

• Team

• Authenticity

• Self confidence

• Self esteem

• Freedom

• Original• Collective

• American dream (everyone is born equal; everyone is capable ofgreatness )

• Playful mind (inquisitive, thought provoking, mentally challen(Jing)

• Individual strength (empowering )

• Emotional (emotive)

• US Sport

• Non' irritabl e• Mix exploitabl e

• Beyond fast cars and famous drivers• Highly skille d

• Imaginative (imagination)• Dedicated (dedication )

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• Diverse backgrounds (all encompassing)

• Contribute (contribution )

• No one member is more important than the nex t

These words are then broken down into two categories io provide a

communication matrix for the Tribe . The categories are :

• External communication (through which we embrace thE, emotional valuesof the brand )

• Brand guidelines (by which to primarily assess the strategy and,subsequently, communication and activities )

Brand guidelines

Team

Original

American dream

Playful mindIndividual strength

EmotiveUS Spor t

Nora-irritable

Mix exploitable

Beyond fast cars . . .

Imaginative

Dedicated

All encompassing

No one member . . .

SLAM

Lucky Tribe Concept Review and Stratecly Rec;oniinendaiions


External comms

Team

Authenticity

Self confidence

Self esteem

FrE-edom

Origina l

Collective

f-rnpowenng

Emotiona l

Beyond fast carsHighly skilledImaginationDedication

All encompassing

Contribution

No one member . . .

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2 .c . Key Influencer s

Examining the key influencers is also crucial to creating a successful and

coherent strategy and brand positioning . Perception is realitl and if the

elements the public sees do not match with the messages, Lucky Tribe will be

seen as having nc credibility .

Therefore the public perception of the key members of the Learn is THE key

influencer for Lucky Tribe . As the new Lucky Strike Fl advertising states :

"It's not about them & us . It's about as . "

Although we cannot discount the F1 circuit and other sponsors, we can relegatethem to the second division . They will influence the Tribe but they are notintrinsic to its identity .

In the meetings SLAM has had with BAT, the team and its involvement in the

Lucky Tribe concept has been discussed in depth . For the purpose of this

report we have taken it as a given that the team will not part,cipate in the roll

out of Lucky Tribc .

But we still consider that the attitude of the team is vital component of the mix

that creates the Tribe . If the team sees Lucky Tribe as credible, we have the

best endorsement available .

When looking at the public perception of the team, we looked specifically at the

press statements devised by BAT/BAR to position key BAR and/or Lucky Strike

team members . The only statement to refer to image is Jacques Villeneuve's .

As we have discussed at length with BAT, the Lucky Tribe must go beyond the

driver of the Lucky Strike car but, at the same time, the driver has been chosen

to embody the Lucky Strike brand. What he does and what the media write

about him has an impact on Lucky Tribe .

According to the press statements, Jacques was selected because :

"Experience, talent and image were the items that counted in oc.r analysis of

each driver reviewed . "

Phrases used to describe Jacques in media reports since he joined BAR are :

"Jacques Villeneuve will enjoy having a team built around him and he will be a

points to podium man ." The Express

"He's very quick and astute ." F1 Racing

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"a unique career patch, one which has made Jacques more successful for his

age than any other driver in the history of the sport ." F1 Racing

"Jacques has a lot of idiosyncracies which stand him apart form the rest of the

F1 crowd . The grunge fashion, the dyed hair, the belief that anyone who isn't amillionaire is a failure ." F1 Racing

"There is a softer side of him that contrasts starkly with the hard-man-on-the-track image." F1 Racing

"A life on the edge ." F1 Racing

"A rebellious attitude." Express on Sunda y

"He was into a lot of mischief, mainly with girls ." Express on Sunda y

"One driver who does not know how to fake optimism, so his blunt calling-a-

spade-a shovel approach . . ." The Times

"Villeneuve, who won the world drivers' title in 1997 said : 'The only reason to

race is to win ." The Mirro r

"Jacques Villeneuve fell in love with his latest fast car when it started behavinglike a fast woman ." The Sun

"He set the pit lane alight ." Motoring News

"New colours of Villeneuve put into spotlight ." The Independen t

"Jacques Villeneuve, the former world motor racing champion, is havingproblems with his latest 'girlfriend' ." Daily Mail

In order to create a coherent Lucky Tribe, we must ensure that all activity weundertake reflects the positioning of Jacques, as the focal point of the LuckyStrike team.

Just as importantly, we need to ensure that Lucky Tribe emulates the behaviourof Jacques without directly referencing Jacques .

The media directly assists in and influences the development of the team's

image . We felt it important, therefore, to briefly review coverage that the Lucky

Strike team, over and above Jacques, has received to date .



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However, the media coverage we have evaluated has concentrated on British

American Racing . In the media's eyes, the new team is BAR . None of the

cuttings we found referenced the Lucky Str ke team .

At present the team surrounding Jacque Villeneuve's car is non-existent in terms

of media presence. We infer that, as long as the brand does not clash with the

image of Jacques, Lucky Tribe will be coherent . This will be reviewed - to

gauge the global picture - following the S/S global media evaluation in May .

2 .d . Definition of the Lucky Tribe concept and its relationship to BA T

When BAT originally entered the F1 circuit through a 50%1o stake in BritishAmerican Racing (BAR), it faced a dilemma . The circuit is dominated by tobaccosponsorship and BAT had to create strong visibility for its three key brands :BAR ; 555 ; and Lucky Strike .

The danger was, and still is, that these brands would either be drowned or theventure would be seen as a "me too" exercise . As the original PR briefconfirms, both of these are contrary to the brand identity of Lucky Strike .

It was out of this necessity to exercise differentiation that Lucky Tribe was

conceived .

As the original PR brief states :

"Launching Lucky Strike in Formula 1 is not ideal unless we exploit the presencein F1 differently compared to other tobacco brands . Therefore we must askourselves :

'How can we make the arrival of Lucky Strike in the Formula 1 competition in a

highly differentiated and unique way in order to :

Maximise the PR coverage of ire Lucky Strike F1 team to the core Lucky

Strike target audience (irrespective if F1 fans or not) and position the

team as a professional contender in the sport,-

- Create a clear difference between 555, BAR and Lucky Strike activities." '

Therefore, the reality of Lucky Tribe must attempt to satisfy these criteria . Itsrelationship with BAT and BAR is that it is a device, created by the twocompanies, to help position Lucky Strike in Fl .

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How we communicate the relationship 10 the media and consumers will be

discussed in section 4 . But internally, as a group, we must all be clear as to the

purpose of Lucky Tribe .

Primarily, we need to decide whether the concept has negative connotations if itis linked directly to BAT in the outside world .

Is it desirable to say ?

"Lucky Tribe is a marketing concept created by BAT to attract supporters to

British American Racing and the Lucky Strike car- "

Is it necessary to be more candid? Wi I Lucky Tribe be more attractive if it is :

a British American Racing owned concept ?

a World Investment Co . owned concept and license?t'a a TMG owned range of clothing ?

This depends on the reality of Lucky Tribe and the strategy we adopt .

The more concrete the reality is, the easier it becomes for BAT to own Lucky

Tribe. The more obtuse the strategy is, the more we get wrapped up in havingto explain why BA T is venturing in this direction .

2 .e . Summary

The strategy must reflect

through embodying :

team

authenticity

self confidence

self esteem

freedom

the criteria used by Bates to determine the nam e

We must use the phrases designated tD external communications to embrace the

emotional values of the bran d

We must use the phrases designated to brand guidelines to assess the strategy,

communication and activities for Lucky Trib e

The key infuencer is identified as the public perception of the team itself .tea from the coverage we have evaluated, the Lucky strike team does not

exist, except in the form of Jacques Villeneuve (will be reviewed )

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presently, as long as the Lucky Tribe communication and mage do notclash with Jacques' representation in the media, the trand will be

coherent .

BAT has created Lucky Tribe to :

differentiate Lucky Strike in F1 - from other teams, BAR and 555

maximise PR coverage of the Lucky Strike F1 team

We must devise a concrete reality for Lucky Tribe to facilitate the correctpositioning of Lucky Tribe by the media .


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Section 3 . Background & Researc h

In order to have a clear understanding of the Formula 1 circuit and the

consumption of the sport in target markets we have reviewed the nedia in each

market - both generally and in, the case of lifestyle magazines (with a male

bias) more closely . We also looked at the sales and marketing strategy for

TMG's merchandise to understand the restrictions (if any) this places on Lucky

Tribe's roll-out .

3 .a . Summary of F1 Teams' Images, Drivers and Principal Sponsor s

• McLaren

McLaren's first Formula 1 victory was in Belgium in 1968 with Bruce McLaren

at the wheel . Since that day they haven't looked back, with the team winning

116 Grand Prix in 476 performances . This makes McLaren onE of the Most

successful F1 teams of all time .

McLaren has won 8 Constructors World Championship titles, the first of which

was in 1974, when it also won the first of its ten Drivers World Championship

titles . They are the only team to have won four consecutive Drivers and

Constructors Championships (1988-1991) .

Whilst Ferrari has been the most successful team with 119 wins to date, it has

been racing for 16 years more than McLaren, has been in 12- .7 more Grand Prix

and has only achieved three more wins .

All of this adds up to make McLaren the Manchester United of F1 . They are the

team to beat, with their car being faster and more reliable than its rivals . It has

two excellent drivers in Hakinnen and Coulthard, who are open viewed as the

golden boys of F1 .

The team comes across as being clinical, aggressive, and prof€ssional . Ron

Dennis is seen as a disciplinarian .

Principal sponsor is West .

• Ferrari

Probably the most famous car racing team ever to exist -- with a fully integrated

sponsorship package . The brainchild of the late, great Enzo Ferrari, the

characteristic red is unmistakable whether it is on a F1 car or one of the latest

road vehicles .


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The passionate Italians follow the team avidly across the world expecting the

team to win every time the car gets on the circuit . This, alongside the history of

Ferrari, makes them the people's favourite wherever they go especially in

Germany because of Schumacher .

They also have two very different drivers in Schumacher and Irvine .

Schumacher is amazingly talented, stopping at nothing to win a race . He comes

across as cold, fccused and determined not something you would necessarily

associate with Ferrari .

Irvine, on the other hand, is a self confessed playboy who loves nothing more

than women, helicopters and his homeland of Ireland . A good looking man who

is popular on the circuit as well as with women !

Ferrari gives F1 fiair, character and excitement, but their popularity may be on

the wane if they fail to win the championship again this year . The fans are

becoming bored of waiting, frustrated that even with (arguably) the best car and

driver on paper, the team has failed to win the drivers' championship for 20

years .

Principal sponsor s Marlboro .

• Williams

Williams launched their new 1999 car, the FW21, in January of '99 and hope

that it will bring them the success that eluded them last season . Last year, for

the first time in a decade, the Williams team failed to clinch a Grand Prix victory .

This is something that owner and Managing Director Frank Williams will not

tolerate . Knighted in this year's Honours List, Williams is one of the industry's

success stories .

Despite being accused of negligence in the death of Ayrton Senna Williams has

made his team into one that can never be ruled out . He is considered as one of

the best brains in the business .

But this season's drivers are not the best on the circuit . Italian Alex Zanardi, the

1998 Champ Cars champion, and Ralf Schumacher, in the shadow of a more

focussed and experienced elder brother, have yet to cut the mustard .

Principal sponsor is Winfield .

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• Arrows

In 1996 Tom Walkinshaw, the man who steered Benetton to the world

chamionship, assumed control of Arrows . But success still eludes hem .

Arrows Grand Prix has been competing in F1 since 1978 and have alwaysstruggled due to lack of funding . They were saved this year b' Prince MalikAdo Ibrahim without whom they wouldn't be racing . They are now at thebeginning of a very long rebuilding process .

One of the smallest teams on the circuit and, with the lack of a manufacturerengine this season will be a struggle .

Principal sponsor is Repsol .

• Prost Grand Prix

For Prost Grand Prix, the 1998 season was abysmal .

This year, Prost has enlisted the help of ex Ferrari/ Arrows car designer John

Barnard . And Peugot has worked hard on creating a much superior engine .

1 999 could be the year they come into their own .

Prost took over the team in 1996 and changed the team name from Ligier to

Prost GP . Ligier was always seen as the plucky underdog, and Prost has done

very little to change the image . The team is very popular with serious F1

supporters, especially in Prost's native France .

They are a team that appears to be a real unit, working for each other against

the big boys .

Principal sponsor is Gauloises .

• Minard i

Another minnow amongst the big fish, they have very little chance of gaining a

podium place this season .

Team owner Giancario Minardi, on the other hand, claims his team is betterprepared than ever .

But, with second-rate engines and two drivers (Gene and Badoer) that are

relatively new to F1 , it may be a long, unrewarding season for them .

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Principal sponsor is Telefonica .

• Jorda n

Jordan is a fast growing team with a great deal of charisma and two excellent

drivers . They should have a good season in 1999 .

Eddie Jordan is a charismatic, passionate and emotional man whom the British

public admires greatly . He has vast sponsorship backing, which has enabled

him to upgrade his cars and pay for good drivers .

And with Damon Hill as the lead driver Jordan is the most popular team in theUK .

The team is cohesive, well organised and enthusiastic . They are seen as theextroverts ; their parties are renowned on the circuit .

Principal sponsor is Benson & Hedges, who has devised the "Buzzing Hornets"to maximise the promotion of its F1 sponsorship .

• Stewart

Jackie Stewart has an almost God -like status :n the world of Formula 1

Other than BAR, Stewart is the youngest learn in the championship, now in its

third season . BLt its lack of success to date is, it appears, is beginning toconcern Ford .

Rubens Barichello and Johnny Herbert are both very popular d-ivers on the

circuit and with ,he media . Herbert's arrival will, they hope, give them the

boost they need .

Stewart is seen in the same light as Prost, he is an ex-F1 driver who was not

only very talented, but is also very popular . However, he may oe retired by Fordif the team doesn't perform this season .

Principal sponsor is HSBC .

• Benetto n

A team that had great early 1 990s, but has lost form over the last two years .They were at the top when Michael Schumacher won bE:ck to backchampionships in 94 & 95, but, after his move to Ferrari, thincs have gone

drastically downhill .

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They are no longer seen as a major player and this season could decide the

team's future . And following the departure of David Richards and arrival of

Luciano Benetton s son, Rocco, at the helm, their season will be in- eresting .

Home to one of the most sophisticated engineering resources, the team has to

justify the investment it has received over the past few years .

Through an enthusiastic pair of drivers in Fisichella and Wurz, there could be afew pole positions .

Principal sponsor is Mild Seven .

• Sauber

A team that will struggle this season because of a lack of money . They attract

very little press coverage as they have never won a Grand Prix, never had a

fastest lap and never had a pole position .

Hopes rest on no . 1 driver Jean Alesi but his success rate has suffered recently .

He is regarded as moody and has not been on top form for a while .

However, the car is drastically improved this season so it is a team to watch .

Principal sponsor is Red Bull .

• Summary

The teams with the highest profile are Ferrari and McLaren, because they haveexcellent drivers and win most races .

The teams with tobacco companies as principal sponsors are :

• McLaren / West

• Ferrari / Marlboro

• Williams / Winfield

• Prost / Gauloises

• Jordan / B& H

• Benetton / Mild Seven

Plus, of course, BAR and Lucky Strike & 55 5

B&H has used the Buzzing Hornets to maximise its sponsorship of Jordan

No other team presently has different sponsors for each car it race s

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3 .b . Review of the F1 Circui t

• Melbourne - Australi a

The first Grand Prix of the season always generates a huge amount of hype but,invariably, it never delivers the goods . The drivers are rusty after a long breakand the engines are not quite at their peak .

Furthermore, Australian's do not have any real connection with Formula 1 . They

do not have a team that originates from their shores, nor do they -Jo not have a

driver in the championship . This combines to make the grand prix a minor event

in the Australian sporting calendar .

The track itself is relatively new and runs clockwise around the lake in Albert

Park . The authorities have to fight against the environmental activists' who

protest about the pollution being inflicted on the wildlife in the Park .

Having said that, it is the first race of the season and, therefore, one of the

most important .

Activity for Lucky Tribe is limited because of the name being registered in thetobacco category .

• Interlagos - Brazi l

In the years when Ayrton Senna was at the pinnacle of F1 , Interlagos was seen

as the circuit with the most support for one man . Supporters would come in

their tens of thousands all chanting the name of their hero . It was, a carnival to

celebrate a man whom they believed to be the best driver in the world .

Since the tragic death of Senna, Interlagos has been a slightly mi ted venue on

the F1 circuit . The Brazilian's no longer have a real challenger in the race, with

Rubens Barlchello still awaiting his first win and BAR's Zonta being

inexperienced .

Halving the track to 4 .325km has cut down what was once a very lengthytrack . Many of the fast corners and more challenging aspects of the track have

disappeared but the first corner is still one of the most dangerous, as all the cars

attempt to funnel through without contact . Adding to the tension, this is the

best place on the track to overtake, making accidents frequent .

It is still a massi\,e event for the sport-loving Brazilians and one of the biggest

GP's in the world .

SLAM 21

Lucky Tribe Concept review and Strategy Recomniendation s

April 1999

Report for Discussion

321350591


Very important for Lucky Tribe because it's a key market for Lucky Strike . Willbe difficult to centre attention on the Lucky Strike team if Zonta becomes theface of 555 as originally planned.

• Imola - San Marin o

Most famous for the death of Senna and Ratzenburger, this race will always

have a dark cloud hanging over it .

Even though the magic may have left this circuit, it is still illuminated by the red

chequered flags of Ferrari . Enzo Ferrari named this track after his son who died

whilst still very young and so holds a special place in the hearts of =errari fans .

Although the crowds gather in numbers, one almost feels a sense of mourningas opposed to the carnival spirit that many courses have .

A very tough course that pushes the cars' endurance all the way, with pit stop

strategy playing even more of a crucial role than usual . There have been some

safety changes made to the course since the accidents, making it slightly

slower .

The track is a "B-f3-Q" for brakes and wears out transmissions, which leads to a

greater number of retirements . Stamina is the key to success at Imola .

Important market for Lucky Strike but the benefits of making this circuit one of

the key ones for Lucky Tribe is dubious. Can we really compete against Ferrari?

Is money better spent concentrating on other races ?

• Monte Carlo - Monaco

One of the most famous, glamorous and high-profile of all the Grand Prixcircuits . The track goes straight through the city in Europe, with boats,

buildings and helicopters in abundance . The whole weekend is a huge spectacle

of wealth and glitz .

The track is ridiculously dangerous with F1 cars racing on normal streets withvery sharp corne-s . Accidents occur on a regular basis but the drivers

commonly refer to it as one of their favourite courses because it poses the

biggest challenge .

There is not a lot more that needs to be said other than the peoplb of Monacoare probably outnumbered on F1 weekend by the world's rich and fE .mous .

How we use Monte Carlo is a big question . Any activity in the principality itself

will most probably be drowned .

SLAM 22Lucky Tribe Concept Review aid Striwegy Reconmitmdat on s


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ALL INFORMATION CONTAINED ON THIS PAGE Si RICTLY CONFIDENTIA L

The race has to feature in the Lucky Tribe calendar because of its status .

• Barcelona - Spai n

Not renowned for i t ' s passionate love affair with F 1 , Barcelona is usually very

wet when the GP comes around . In years gone by it would be terribly

dangerous in the wet as the tires would not grip and serious accidents would

abound . However, with the introduction of Bridgestone tires this season, the

governing body may have cured the situation .

A key market for Lucky Strike and, with no crowding of activity or allegiances to

other teams, the Barcelona Grand Prix could have real opportunities for LuckyTribe. Especially as a warm up for Montreal.

• Circuit Gilles Villeneuve - Montreal, Canada

Jacques Villeneuve is practically a decor-God among Canadian F1 fans .

Following in the footsteps of his father, he has made F1 a very popular sport inhis own country .

However, the track is one of the worst in the world (built on the Expo '67 site)

and has little charisma or carnival spirit . The bumps all over the course are like

no other in the world and cause havoc with the cars engineering . The result of

this is that many of the cars are forced to retire .

Definitely an interesting Grand Prix for Lucky Tribe because, although Canada is

not a key market for Lucky Strike, we can't afford to ignore the one race that

Jacques will dominate (off the track at least) .

But, at the same time, we have to ensure that Jacques is not positioned as thecentrepiece of Lucky Tribe .

• Magny Cours - Franc e

The track is located in a very poor and rural area . President Mitterand wanted

the area to be a site of technical excellence for French Motor sport, helping to

bring wealth to the region . Now it houses some of the very best in French

Motor sport in the neighbouring industrial estate .

The circuit is very modern and beautifully equipped, however the traditionalist

F1 fan would say that it has no soul .

High profile teams at this race are Prost and Sauber (through Alesi) . Big

opportunity for Lucky Tribe because of Jacques' nationality .

SLAM 23Lucky Tribe Concept Review and Strategy Reconim,euidation s


321350593

B.\TC, . LS COI I Philip Marc:-


• Silverstone - Great Britai n

This is the home track for many of the teams in F1, which usually means thatthe post race parties can grab as muci of the headlines as the actual Grand Prixitself .

On a more professional note, Silverstone is steeped in tradition and, likeBelgium, is known as one of the more challenging circuits .

The corners are slower today than some years ago, yet Becket's sweepers andBridge Corner are still some of the driving highlights of the year with driversclearly enjoying the challenge they offer .

Silverstone is principally the home of Damon Hill . Close behind him areCoulthard, Herbert and (the adopted) Irvine . Combined, this results in Jordan,

Ferrari, McLaren and Stewart all fighting for attention with Jordan inevitablywinning .

With no real market for Lucky Strike in the UK, it is questionable how effective

Lucky Tribe activity could be. Having said that, Silverstone is the home of BAR

and the circuit must figure in the programme .

• Al Ring - Austri a

One of the newest tracks on the tour, replacing the decrepit Osterreichring, but

sadly lacking some of the qualities of the former - to the frustration of some of

the traditionalists .

With Benetton's talented Alex Wurz being Austrian, and with the Al Ring finally

receiving the funding it so badly needed, the chances are that F1 will become

popular again in a country that was once so passionate .

However, Austria is nearing the bottorn of the pecking order for Lucky Strike, soLucky Tribe activity may be limited.

• Hockenheim - German y

A Grand Prix that is key for Ferrari because of the 150,000 Germans cheeringon Michael Schumacher .

The German public love F21 Schumaciier is held in the same regard asVilleneuve is in Canada

A combination of flat out straights aid simple chicanes make this one of theeasier courses in the championship .

SLAM 24L,rcky Tribe Concept Review and Strategy Reconuuendation s

April 1999


321350594

-TO, r1 (rl, •em,, 11,11 .


Very important for Lucky Strike, considering the strength of the German market .

Lucky Tribe must capture the imagination of the German public; it must breakthrough the barrier caused by Schumacher 's nationality .

• Hungaroring - Hungar y

Good viewing for spectators in a well-established and much iked venue . Thehills surrounding Budapest make for a great vantagepoint for viewirg the action .

The track is tight, twisty and bumpy so tyres need to be changed more than on

other tracks .

Not that important for Lucky Tribe because Lucky Strike's presence is low .

• Spa Francochamps - Belgiu m

The experts say that this is one of the best tracks in the world because it has

regularly been hone to some of the greatest Grand Prix ever raced . With the

track sweeping through the forested Ardennes Hills and a mix of high-speed

corners, Spa is not only a picturesque venue, but also devastatingly exciting .

The people of Belgium look forward to the Grand Prix but, because they do not

have a driver or a constructor, they are rarely as high spirited as the Italians, forexample .

With no hurdles to overcome in terms of national allegiances, and its situation at

the heart of Europe, the Belgian GP is key for Lucky Tribe .

• Monza - Ital y

Located in Northern Italy, Monza is located in Northern Italy, 12 miles from Milancity centre and come race-day is full of the fanatical Tifosi . Everythirg around andon the circuit revolves around one team, Ferrari .

The track is ultra fast and known as an engine-breaker : Ferrari always make aspecial effort at this, their home circuit . Indeed, the most famous race in recentyears was in 1988 when Senna crashed to allow Ferrari to take the first and secondpositions, just mon-hs after the death of Enzo Ferrari .

The same conditions apply to this Grand Prix as at Imola. I't is an important

market for Lucky Strike but the benefits of making this circuit one a target forLucky Tribe are dubious . Can we really compete against Ferran? Is moneybetter spent concentrating on other races ?

SLAM 25

Lucky Tribe Concept Review and Strategy Recommendation s

April 199 9Report fnr Discussion

321350595

BAT<',' l S r`OJ, Plulip Von :.


• Nurburgring - Germany/Luxembour g

Germany's second Grand Prix was once called the Luxembourg G .-and Prix, but

this season it has reverted to its previous name, the European GP .

Once again the German crowd will be cheering at the top of their voices for thegolden boy of German F1, Michael Schumacher . The Germans are the most

devoted F1 fans in the world and this will be seen at the Nurburgrir g .

The same conditions apply to this Grand Prix as at Hockenheim . It is very

important for Lucky Strike, considering the strength of the (German) market .

Lucky Tribe must capture the imagination of the German public; ~t must break

through the barrier caused by Schumacher's nationality .

• Sepang - Malaysi a

New to the circuit this season, Sepang is the most state of the art circuit in the

world and it is widely accepted that reason for its introduction is because of theensuing ban on tobacco sponsorship and advertising in Europe .

Investors have built a huge complex for the Grand Prix comprising of

restaurants, bars, shops, gyms and even its own airport . Moreover, it has been

built on very flat ground making it exceptional rn terms of viewing .

The heat will be a problem for the drivers, as they will never have experienced

anything like it on the circuit .

Although Malaysia is not a key market for Lucky Strike (that honour goes to555), neighbouring Indonesia is. Lucky Tribe activity should, therefore, befocussed on Indonesia-

0 Suzuka - Japan

The grand finale to a long, hard season and, if the drivers are close in the

championship, the tension can be almost unbearable . Added to this, the drivers

have a great deal of respect for the course .

The Japanese are passionate about F1 and, with Takagi and Honda in the midstof the sport, they can have a lot to cheer about .

Japan is also one of Lucky Strike's most important markets so this Grand Prix

will provide a fitting end to the season .

SLAM 26Lucky Tribe Concept Review and Strategy Recommendanon s


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ALL INFORMATION CON1AINED ON THIS PAGE STRICTLY CONFIDENTIA L

Summary

Italy is a problem because of Ferrari's domination

Germany is a problem because of Schumacher

Primary circuits are :

• Interlagos

• San Marino

• Barcelon a• Magny Cours

• Hockenhei m

• Spa Francochamps

• Monz a

• Nurburgrinu• Malaysia (for Indonesia)

• Japa n

Secondary circuits are :

• U K

• Monaco

• Australia

Non-circuits are :

• Austria

• Hungary

3 .c. Media Overview

The media overview we have compiled reviews the major global players withwhom we could form media partnerships . Securing these partnerships would

give a tremendous boost to generating awareness for Lucky Tri ae .

Part one is an adaptation of a previous report compiled by Charles Barker BSMG

Worldwide for BAT . A full copy of this report is available on request to BAT

employees .

Part two is an analysis of male bias lifestyle magazines targeted at ASU30 . This

has been commissioned from an external media agency will be forwarded as an

appendix to this report .

We also recommend an analysis of the Internet, which is proliferated with F1

sites and offers a prime communications route .



321350597

BAri'e Cl ['(ll, PlsIry •Iorr


Part One : Media Group s

Overvie w

It is clear that ro one group is truly international and that, in the case of

individual countries, the suitability of media outlets varies greatly In addition,

there is little evidence of the kind of cross media/cross-group effort proposed .

Although some companies (Time Warner and NewsCorp . for example) have set

up separate companies to market, plan, and promote integrated programmes and

campaigns across their companies, cross media efforts are in their infancy .

At the same time, the potential for targeting young people on air international

scale is huge, and with the advent of cable, digital and new media broadcasting,

the possibilities are even greater . Indeed, young people are traditionally early

adopters of new media capabilities and consequently a very receptive audience .

(MTV, the world's most extensive and successful global network, is a good

example of this . )

Thus, we face bo-h a tremendous opportunity as well as a significant challenge .

Because this is rew territory, securing the buy-in and commitment of media

companies may well be a difficult and delicate task . Moreover, some media

groups may be I,kely to be reluctant to associate themselves with tobacco

companies . Hence, we most have a very good proposition, away from the issue

of tobacco and smoking .

Summary of Media Group s

Market Youth Media Outlet

International BBC

Disney

NewsCorp

Time Warner

Viacom

European

(West, East,

Central )

Country SpecificSpainJapan

BBCBertelsmannCanal +CM E

TVE, Minimax, Telecinco

NH K



28

321350598

ALL INF ORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIA L

World's Top Four Media

Media Owner

- - ~ -- - -~- --

Turnove r

Time Warner -- $20 .9bnMagazines, music, cable networks, film, TV production an d

distribution, homc videos, studio stores, theatres, theme park sDisney $18.7bnFilrn production and distribution, terrestrial and cable TV, radio ,home video, theme parks, resorts, merchandise

Bertelsmann $ 14 .3bnFilm production and distribution, satellite and terrestial TV ,consumers and trade magazines, book publishing

News Corp $10 .2bn

Newspapers, magazines, terrestrial TV, cable and satellite TV ,

film book publishing , sports stadium, sports team s

Publishing Houses

Lagardere

Hachette print media : 14 youth magazines in France and number 1 magazine

publisher in Spain (with 71 % of the consumer magazine market) .

Bauer VerlagBased in Germany, one of Europe's largest publishers . It has titles in its home

market and several Eastern European countries .

EmapOne of europe's largest magazine publishers , with nearly 100 consumers'magazines in UK and 50 in France . Titles in the UK include FHPJI, C,NewWoman. This is an important group tor the ASU30 market .

Springer Verla g

Publishing operations in Germany, Austria, France, the Netherlands and Eastern

Europe . It is self-proclaimed aim is to adapt its newspaper and magazine titles

to a younger generation .

VNUBased in Netherlands, operations spread across Benelux, France, Italy, Spain,

Germany, UK and US . Its consumer section publishes several magazines aimedat ASU30 .

Bertelsmann

Largest media company in Europe, it has interests in 33 magazines n Germany ;

12 in France ; 8 in Spain ; 5 in Poland ; 4 in the UK and 2 in Italy .

SLAM 29Lucky Tribe Concept Review and Strater}y Reconu 'endation s

April 199 9Report tor Discussion

321350599

k>i,l11-ti I ;1,11 Fh11i,,11•irr


3 .d . Sales & Marketing Programme for Lucky Tribe Clothin g

When SLAM was originally briefed on Lucky Tribe, we were advised that aseeding launch was the preferable route .

The reason for this was two-fold :to allow time for the team to become comfortable with the concept

to create a real (as opposed to a marketing) concep t

The merits of this approach are discussed in the following section ; its inclusion

here exists solely as a reference to our original concerns regarding the existence

of a merchandising programme .

The potential problem was that a range of clothing being launched so soon after

the emergence of Lucky Tribe would destroy its credibility .

Since then, SLAM has met with TMG to understand what plans they haveformulated for the launch of the clothing .

Plans for the Spring Summer 99 and Autumn Winter 99/2000 collections areconfined to Spain, Germany and Benelux . The range is very limited (to stapleitems like t-shirts and polo shirts) . There will be no ATL or BTL support .

The Spring Summer range 2000 is more extensive and the designs are more

"street", but by no means cutting edge (which they aren't intended to be) . It ishoped this range will be supported by advertising and promotions, which will be

in line with the Lucky Strike marketing plan . The proposed budget is f500k .

The majority of the money will be spent on fieldwork, in-store concessions andoutdoor ad sites .

The distribution will increase for the SS 2000 collection and is expected toinclude the UK, Portugal and Italy . In terms of the UK, Way-In a- . Harrods andKendal's in Manchester were quoted as potential outlets ,

On the grounds that activity in 1999 will be limited to a few items in a fewstores, SLAM suggests the current campaign for the clothing range is notconsidered in terms of the recommendations for Lucky Tribe .

The clothing range does not pose a threat to the concept - whether we adopt aseeding launch or not . As discussed in the next section, we could even make

the clothing range central to Lucky Tribe's strategy .

SLAM 30

Lucky Tribe Concept Review and Strategy RecommendFltlon s


321350600

B .\TC, US (Ill, Pliilp, ?l .,:.

ALL INFORMATION CONTAINED ON THIS PAGE STRICTLY CONFIDENTIAL

3 .e . Summary

The teams with the highest profile are Ferrari and McLaren, because they haveexcellent drivers and win most race s

B&H has used the Buzzing Hornets to maximise its sponsorship of Jordan

No other team presently has different sponsors for each car it races .

Italy is a problem because of Ferrari's domination

Germany is a problem because of Schumacher

Primary circuits for activity are :Interlagos

San Marino

Barcelona

Magny Cours

Hockenheirn

Spa Francochamps

Monz a

Nurburgring

Malaysia (for Indonesia)Japan

We recommend targeting international media companies to form mediapartnerships

The clothing range does not pose a threat to the concep t

SLAM 31

Lucky Tribe Concept Review and Strategy Reconunendatlo'i s

April 1999Report or Disc!issioi

32135060 1

B A I'('., U, CCU I P11111, 11,t ..


Section 4. Review of Alternative Strategies, Leading to Our

Recommendations

The purpose of this document is to suggest the way forward for Lucky Tribe . In

order to do this we have analysed possible strategies and recommend the one

that will launch and build a brand that is credible with the target audience .

Currently, Lucky Tribe is an abstract commodity that must becorre concrete in

order to develop an emotive identity and secure a following . To do this, we not

only have to plan the route it will take from here, but explain hoof it came into

existence .

To benefit all parties involved in the F1 sponsorship, the successful strategy

must :

• be mix expioitable (through having many licensing opportunities)

• maximise PR coverage of the Lucky Strike F1 Tea m

• remain true to Lucky Strike's brand positionin g

• assist in BAT's and BAR's overall corporate communication s

And we must position Lucky Tribe as different to any other teams or team

activity . We must not be seen to he replicating Marlboro, VVest, Mild Seven,

Gauloises, etc .

After examining the research and requirements, SLAM has identified three

possible routes to take Lucky Tribe . There are no doubt many more, but the

three explored here are, we consider, the most viable :

1 . Lucky Tribe : the team behind Jacques Villeneuve's car2 . Lucky Tribe Clothin g3 . Lucky Tribe : the inclusive members only clu b

The Team Behind the Ca r

Positioning Statement : An Original Formula 1 Team (Bates Dorland ,

Since its conception, Lucky Tribe has been the team behind the Lucky Strike

car .

Here we examine the merits of Bates' original positioning statement in light of

the FIA ruling on the car livery and pressures of the team to build it race-winning

car .

SLAM 32Lucky Tribe Concept Review and Sir,itetly Recommendation s


321350602


"Lucky Tribe is a Formula One team that has been built around a unique point ofview that goes beyond fast cars and famous drivers .

It's a gathering of highly skilled imaginative and dedicated individuals with

diverse backgrounds and skills who all have something to contribute to the

team .

It's a team in which no one member is more important than the next . Each is

important, each with a job to do. And all are ready to challenge the

odds . . . . . together. "

This strategy satisfies :

Easy to explain how the brand came into existenceBe mix exploitabl eMaximise pr coverage

Remain true to Lucky Strik e

Assist in BAT's and BAR's overall communications programmesBe different to all others in F 1

On the positive side, this strategy offers many licensing opportunities, could lead

to an abundance of PR coverage and will remain close to the Lucky Strike brandstrategy .

But for this strategy to be successful, we very much require the team to be

operating as a unit and be prepared to endorse our activity . This i3 essential for

PR if we expect the media and consumers to buy into the concept .

We need to explain how Lucky Tribe has come into existence and where the

name came from . We can invent a coherent story but all iriernbers of the Tribewould need to be on-message at all times. This leaves us with a tenuous mediastrategy that will require much policing .

Hence, we have a problem . The team is very busy and we will most likely not

have any access to it either to brief them or use them in profile-buildingactivities . Winning races is more important than taking part in a marketingconcept . The more the team wins, the More supporters it will attract .

We must also consider the effects of the visual identity of the car and the fact

that the Lucky Strike team - the "Lucky Tribe" is not now visible on race day,

in front of the world's cameras . So, for the majority of media aid consumers

we want to target, the Tribe will not exist .

SLAM 33Lucky Trine Co icept Review ana Strategy Recon-anendation s

April 199 9Report for Disc .ession

321350603

R r,, r I M0, Ad"1 I,, .


Lastly, we cannot control personnel issues at Bracknell . This is a new team and

is almost certain to have teething problems . If the team shows signs of disunity

half way through the season, the reality of Lucky Tribe goes up in smoke .

Journalists and the consumer market we are aiming for are very cynical and

likely to reject the concept of a team forging such a bond in a s sort space of

time . Any cracks or inconsistencies that appear will add to the likelihood of

rejection .

We therefore recommend not pursuing this strategy at this present moment in

time. Too many things that we have no control over could go wrong .

Lucky Tribe Clothing

The one tangible item we have is the clothing range ; the clothing range is Lucky

Tribe .

While TMG currently has no confirmed sales and marketing clan the clothing

range could easily become the central element to the launch of Lucy Tribe .

Fashion is a key element of our target audience's lifestyle and we could embark

on a fashion campaign .

The key elements of this strategy would be product placement -3nd magazine

fashion shoots . We would despatch clothing to non-F1 personalities who

embody Lucky Strike's muscles, encouraging them to wear the range . And we

would liaise directly with fashion stylists to secure coverage in shoots .

The Tribe can then be extended to become the people wearing the clothes .


Easy to explain how the brand came into existenceBe mix exploitabl e

Maximise pr coverage

Remain true to Lucky Strik e

Assist in BAT's and BAR's overall communications programmes

Be different to all others in F 1

This strategy is attractive because it is tangible evidence of Lucky Tribe's being .

However, it is difficult to find an all-encompassing positioning sta' .ement to link

the clothing to the F1 team without being open that this is a range o f

SLAM 34Lucky Tribe Concept Review and Strategy Recornnrendation s

April 199 9Report for Discussioi,

321350604

R .,TCh LS Et ❑ ,?l ipSinrt .


merchandising . Once we do this, we are in danger of limiting the appeal of the

Tribe .

While a range of clothing inspired by the Lucky Strike team is desirable to a

section of our target market, a bigger section will only be attracted to the

clothing if it is Subtle and fashionable . And we are at the mercy of (very

difficult) fashion journalists and stylists .

Secondly, we have to satisfy a market that does not like brands that are purely

commercial . Our research shows that, as well as buying into brand values, the

18--30 year-old market is increasingly looking for brands that :

a) have their roots in creativity

b) offer added valu e

This is one area this particular strategy for Lucky Tribe could face difficulty .

Another potential problem area is physically linking the clothing range to F1 .

The advertising can be successful in this but the PR would struggle . It's not

impossible but a tough call .

Convincing the media to extend coverage beyond fashion will also be difficult

because that is the only story .

Finally, there is an abundance of F1 clothing available . This covers everything

from team ranges for McLaren, Ferrari, Williams, BAR to drives ranges for

Michael and Ralf Schumacher and Ayrton Senria .

While (on a positive note) Lucky Tribe clothing is not official merchandise, we

believe the concept could be lost if everything is pinned on the c othing range .

The clothing range (given the distribution) should be successfu, but the strategyfor F1 should be more wide-reaching .

Lucky Tribe is the embodiment of Lucky Strike in F1 and we suggest theclothing range is not strong enough to communicate this on its own .

Inclusive Members Clu b

Positioning statement : "Lucky Tribe the only formula one team "

Every club and well-known driver has a tan club but the Lucky Tribe would be

different .

It would be a lifestyle club, tapping into the consciousness of the ASU30market .

SLAM 35Lucky Tribe Concept Review and Strategy Recommendrit on s

April 199 9


32135060 5

NIT( \ . I \ I>I I.I . :+I0,I, . ♦ l..,,


Recruitment to the club would be through lifestyle media partners, Grand Prixevents and the Internet . Key communication would be through the Internet, theGPs and printed newsletters, calling members to action .

Through the network of supporters, we could organise parties, screenings of theraces, illustration :. of team solidarity on race day, etc .

All communication would reflect the link back to the team, helping to build the

concept of the team behind the car (i .e . helping to build the profile of the original

Lucky Tribe) . Through the club, we can slowly create a solid profile for theteam, making thetas part of Lucky Tribe .

Added value would extend the club beyond the realms of F1, to include events

and activities away from the Grand Prix .

Membership would be free and open to all F1 fans . We would attractsupporters of other teams to Lucky Tribe with exclusive offers .

Lucky Tribe would also be used as a media relations tool . Through the Tribe,

we would be in a position to set up media partnerships and invite journalists to

become members - offering those who do exclusive promotional and editorialpackages .

Lucky Strike, through the database created by Lucky Tribe members, would

offer more than any other F1 team .


Easy to explain how the brand came into existence

Be mix exploitabl E

Maximise pr coverage

Remain true to Lucky Strike

Assist in BAT's and BAR's overall communications programmes

Be different to all others in F 1

We believe this strategy provides more arms and legs than any other . We alsodon't have to explain where it has come from because the concept, in itself, isnot unusual. It is what we do with it that will make it stand out from thecrowd.

As well as providing an (ever growing and) exclusive database, the strategy

enables BAT to communicate to its corporate audience in a more light-hearted

(but responsible) way .

It also offers endless merchandising and licensing opportunities .



321350606

HAD ,IS ro. 1 P1i1 I ry Mon:.


We urge BAT to prescribe the club as only available to those 18 years of age .

And to set in stone a policy that will not allow end markets to either sample

tobacco products or brand any Lucky Tribe events with branding other than

Lucky Tribe to ensure clear, effective and uncluttered communication .

We recommend BAT adopts this strategy because the opportunity for roll-out isso great.



321350607


5 . Launching Lucky Tribe

While more research is required into the media, BAT's sales and marketing

capabilities and end market sophistications, we have put together a plan to

show how we envisage the concept rolling out .

• Phase 1 : Preparation

Objectives

. Prepare for the successful communication of Lucky Tribe lo all relevant

BAT & BAR employees

Q' :> Prepare for the implementation of the programm e

Activities

Analyse BAT's capabilities in end market sa> Recommend preferred route for implementation : central vs . loca l

~, Provide detailed, finely tuned global PR and advertising plans for phases

three and four

Explore potential media partners for phases three and four (to includeprint and broadcast media in all target markets )

w. Brief all members of central brand marketing, CORA, sponsorship andlicensing teams as to the two-year strateg yExtend two-year strategy to include year three of the currert deal

Write all internal communication material s

Plan launch event

• Phase 2 : Preparing for the Launch

Objectives

Secure understanding of the concept internally (at BAT & BAR) at centraland local leve lSecure understanding of the concept by all incumbent : communicationsagenciesSecure media partnersBrainstorm activities and media relations angle s

Target Audience s'k> BAT employees

~2 BAR employees

q:> Incumbent & potential communications agencies

. Global media/publishing groups



321350608


Internal SpokespeopleLucky Strike Central Brand Marketing dept .

Central Corporate & Regulatory Affairs dept .r Central Sponsorship dept .

Media Spokespeopl eq> Lucky Strike Central Brand Marketing dept .~'> SLA M

Activities

`?y Brief heads of local brand, CORA and sponsorship depts and provid ecommunications packs for distribution to relevant parties

Q, Brief all re;evant members of BA RBrief design agencies to pitch for web-site design (anc commissiondesign)Begin negotiations with media partner s

Prepare all media briefings / media relations materials

Prepare launch eventSecure exclusive incentive for joining Lucky Tribe -- such as x sets of VIP

travel and tickets to all F1 races until the end of the seaso n

• Phase 3 : Launc h

Objectives

Q> Position Lucky Tribe as the inclusive, members only, adult clubQ> Generate awareness of Lucky Tribe in all target market sq> Launch the Trib e

Target Audience sq;. F1 supporting AU30

u> BAT business partners

All target medi a

Spokespeoplethe

Activities

'4> Brand Jacques' balaclava with log ou;, Launch web-site through live Internet link-ups across the worl dq> Hold media promotions in target markets to win tickets to miss, open air-

screenings of the race (TV broadcasters )

don't give tickets to race away everyone wins same prize toencourage all encompassing them efull hospitality at the race

SLAM 39Lucky Tribe Concept Review and Strategy Recomrneneation s


321350609

Rn Ti'nI ID, U , I Ipn In


1:> Hold launch event for F1 media at Grand Pri x

Hold launch event for consumer media at local screening s

• Phase 4 : Season 1

Objectives

Build on the launch through offering more incentives to joinBegin lo attract wider consumer and business awarenessStage events for all priority race s

Target Audience sF1 supporting consumer over 18

All other consumers over 18

BAT business partners

?-; Potential licenseesThird parties for promotions

G;, All target media

Spokespeople

Tbc

ActivityBill-posting in all major cities (just using logo) before major race s

Logo appearing on footpaths, etc . in major connurbations before majorraces

Increase size of LT logo on car livery/transportation/uniforms

Distribute 1copies of printed newslette r

More screenings if the launch ones are successfu l

1 x event a- every target race for more serious supporters

Increase activity targeting potential third partie sIncrease media relations through press trips to races, events, sell-in of

exclusive angles, etc .

• Phase 5 : Between Seasons

ObjectivesReview impact of first six months' activityMaintain interest from consumer sSecure partners for season 2

Target Audience sF1 supporting consumer over 18

All other consumers over 18

BAT business partners

Potential licensee s

SLAM

Lucky Tribe Concept Review and Strategy Recommendation s


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Third parties for promotionsAll target media

Spokespeople

Lucky Strike Central Brand Marketing dept .SLAM

ActivitiesAnalyse media evaluation s

Carry out quantitative and qualitative research in all target marketsLiaise with third parties

V. Plan season 2Utilise web-site and newsletter to leak stories about season the LS teamin year three

q:> Maintain media contacts through offering exclusive team stories,advertorials, etc .

• Phase 6 : Season 2

Season two will continue in the same vein as season one but the audiences and

activities will depend on the research conducted between seasons .



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