Defining the female market in South Korea
Declining sales in established tobacco markets in North America and Europe since the 1970s have led TTCs to target new markets worldwide, including Asian countries, where higher rates of population growth, lower awareness of smoking and health issues, and weaker tobacco control regulations offer substantial prospects for growth. Although the initial focus of TTCs was to gain access to these countries, and win a share of the substantial market offered by male smokers, the potential for longer term growth offered by females was quickly recognised. In a 1979 report by Terry Hanby (Marketing Services, BAT), on expected future patterns of smoking prevalence by continent and gender, the potential for growth through increased female smoking rates was identified: " [A]lthough in many countries male incidence of smoking is plateauing or even declining, female incidence appears to be more robust often showing continued positive trends" [
46]. Like the industry marketing campaigns beginning in the early twentieth century, marketing staff within BAT explicitly sought to link smoking with female emancipation as a symbol of equality and reliever of stress:
Our main postulated explanations for it are the increasing liberation of females throughout the world and the greater quantities of disposable income which they are obtaining. The first of these factors increases the degree of stress placed upon women in their day to day lives and/or makes them more interested in adopting traditionally male habits such as smoking as symbols of their equality. The second factor, personal income, gives them the freedom to indulge in the habit. This move to sexual equality is liable to continue in the future and lead towards an equalisation of male and female incidence of smoking and consumption. Thus, although male consumption may plateau or even decline, female consumption will continue to rise [
46].
By the early 1990s, these ideas began to be applied to Asian women. As many countries in the region, including South Korea, experienced rapid economic growth, it was anticipated by industry analysts that the changing role of women would offer TTCs an opportunity to remain globally competitive:
Long-term international-tobacco outlook: Bullish....
We believe that a combination of factors has created a large one-time opportunity for global competitors who can move quickly:...
Easing trade restrictions in key Asian markets, notably Japan, Thailand, Korea, and Taiwan, should fuel export growth of 18% per year between 1992 and 1996....
With rising social status and participation in the labor force, more Asian women have taken up smoking [
47].
In South Korea, the potential for TTCs to exploit rapid economic development and social change was immediately recognised. While Korean adult males had among the world's highest rates of smoking prevalence, there was a traditionally strong social stigma against female smoking. The country's significant economic growth from the 1960s, and integration into the global economy [
48], brought with it widespread social change. As observed by the
International Herald Tribune, smoking was once "taboo" for women in many Asian countries, but had become a sign of female emancipation [
49,
50]. In market research by PM Asia in 1990, it was observed that 14% of new smokers are female and that this market segment "should grow" [
51]. At this point, females were seen as a critical component of the youth market which was regarded as "the prime development target market" [
51] for foreign brands. BAT similarly recognised this potential, defining "starters" (new smokers) as young adults albeit skewed towards females [
52].
TTCs began to focus attention on better understanding the female market in South Korea in the mid-1990s. The desire to increase the number of female smokers grew as smoking prevalence among adult Korean males began to decline. BAT predicted that, as sales volume declined among older adult males, this would be offset to some degree by increasing female smoking [
53]. A 1995 Brown and Williamson (B&W)/BAT corporate plan stated that "Industry volume is expected to decline somewhat throughout the plan period due to the decline in smoking incidence of older male consumers. The rate of decline is partially offset by growth in female smoking incidence." In 1997, BAT research concluded that, while Korean society remained male-dominated, with men occupying an authoritarian role within the family, the traditional role of women was gradually changing [
50]. This was due to women entering the workforce and learning to drive at increasing rates [
54].
Creating "broad permission to speak" [55]: Overcoming social and regulatory barriers to accessing the female market
The National Health Promotion Law Enforcement Ordinance, adopted in 1989, bans all tobacco advertising, marketing and sponsorship targeted at women and children including both print and broadcast media. Despite this restriction, smoking rates among Korean females has generally increased (Table
2), with evidence of the highest rises among females (17–19 years) [
30,
31]. Documents describe the strategies used by TTCs to circumvent this restriction. First, advertising of each cigarette brand, if not targeted at women or children, remained permitted in print media up to sixty times per year under the Tobacco Business Law Enforcement Ordinance (Article 9) [
36]. Tobacco companies are also allowed to sponsor social, cultural, music and sporting events (other than events for women and children) using company names but not product names. A 1994 document describes how B&W adapted an international campaign for Capri/Finesse for use where targeting females is not permitted by using imagery of couples:[
56,
57]"Although obviously targeted to women, the campaign extension would also not be as overt in markets sensitive to female targeting" [
57].
Table 2
Smoking prevalence of Korean females by age (1980–2003)
20 – 29
| 1.4 | 1.3 | 1.5 | 3.8 | 3.3 | 7.2 | 4.8 | 5.7 | 5.3 | 8.1 | 4.5 |
30 – 39
| 2.7 | 1.6 | 1.4 | 3.9 | 0.7 | 5.2 | 3.2 | 2.0 | 2.1 | 2.6 | 0.8 |
40 – 49
| 9.2 | 4.1 | 3.3 | 3.7 | 0.8 | 1.8 | 2.8 | 1.1 | 2.6 | 3.1 | 4.5 |
50 – 59
| 28.4 | 16.4 | 11.3 | 6.0 | 8.2 | 2.8 | 4.8 | 2.4 | 1.7 | 7.6 | 4.1 |
60 +
| 47.2 | 32.5 | 29.5 | 12.1 | 7.1 | 10.4 | 10.4 | 0 | 3.4 | 10.5 | 4.5 |
Adjusted age
|
| 12.6 | 8.0 | 7.7 | 5.1 | 3.5 | 5.3 | 4.4 | 3.0 | 3.1 | 6.0 | 3.5 |
Second, TTCs focused on retail distribution on venues which tended to be frequented by females. Documents describe the sale of female brands in restaurants, coffee shops, "event lunches" [
53], bars, nightclubs and other popular gathering places for young girls and women. In a 1996 summary of the Korean market, BAT aimed to " [r]einforce positioning [of Finesse] as THE cigarette for independent Korean women" [
58]. A key tactic for achieving this was "to expand its coffee shop program targeted at reaching the female audience" [
58]. This expanded distribution through coffee shops was described as a means of exposing female smokers to
Finesse, based on research showing that "the majority of purchasing and consumption of cigarettes by Korean females is made in coffee shops" [
59].
Third, TTCs have used "trademark diversification" (TMD) to circumvent restrictions in order to promote selected brands to the female market. A 1999 BAT document defined TMD, sometimes known as brand stretching, as "the extension of a well-known trademark and its associated brand essence to a product or service unrelated to the one for which the trademark is traditionally associated" [
60]. Examples of such practices include the use of tobacco branding on clothing, footwear, toiletries and holidays. The purpose of TMD, for TTCs, has been to circumvent growing regulatory restrictions:
In a global environment of ever increasing restriction in the availability of traditional advertising media, parallel communications devices such as sponsorships and trademark diversification now represent the only major alternatives for tobacco marketers in a growing list of markets. Where traditional advertising media are available, their use should be maximized. However, in markets where these media are no longer available or are threatened in the foreseeable future, parallel communications should be seriously considered as part of a brand's marketing mix [
61].
In 1989, PM introduced the first consumer pack promotion in Korea for Virginia Slims which included a pocket size address book [
62]. In 1990, BAT considered whether TMD would offer an improved opportunity over print media to communicate the stylish and feminine proposition of
Capri/Finesse. A 1996 B&W report noted that, despite legal restrictions, KT&G had advertised its brand
Simple in numerous magazines aimed at female readers. Strategies included the coupling of cigarettes with bottles of Chanel perfume [
63], and the placement of advertisements in foreign language women's magazines available in South Korea.
Finally, TTCs used sports sponsorship to target certain age groups within the female market. In 1988, PM International noted that a tennis exhibition for Virginia Slims as a sponsorship would be acceptable, but cautions about associated perceptions noting "we have to be careful that we don't seem to be "targeting" females" [
64]. At the same time, the industry was careful about obvious "targeting" of females. In 1991, BAT aimed to create a Kent Golf Sponsorship program targeted at higher-educated, male and females aged 25 years or older with above average incomes. Golf and
Kent "were very image compatible...a creative natural fit for upscale sociability in a resort setting" [
65].
Developing products targeted at the female market
To capture the female market, TTCs undertook extensive research to develop products that would appeal to it. Findings identified female-specific styles and product preferences and specific types of packaging. For example, it was predicted that menthol flavoured cigarettes would increase slightly as a result of the growth in female smoking [
53]. It was also observed that, "for younger adults starting to smoke and women, both...naturally find a lighter taste much more palatable and easier to enjoy" [
66]. The marketing of "light" and "mild" cigarettes in South Korea, however, needed to take account of the unusual popularity of similar products among Korean males (Table
3). Market research found that light/mild and slim cigarettes were generally perceived by males in most Asian countries as too feminine [
67]. In 1990, PM conducted the Korean Cigarette Market Study, a major market study among smokers (n = 1200) to gather information related to brand development in the Korean market. The study found that Korean smokers generally preferred "lighter" cigarettes. Recognising this, PM marketed Virginia Slims [
68], originally developed for and targeted at female smokers in other countries, to Korean men using the tagline "For the Successful Man" [
69]. At the same time, a 1995 BAT study observed that the popularity of "lights" was influenced by changing taste preferences and perceived health issues [
66]. To appeal to females, TTCs saw "opportunities for super light and ultra light brands" [
51].
Table 3
Percentage share of foreign brand market in South Korea (1994–1998)
1 | Mild Seven Light | 39.0 | 45.3 | 26.6 | 24.9 | 31.8 |
2 | Virginia Slims | 19.6 | 18.8 | 26.0 | 32.9 | 20.2 |
3 | Marlboro Light | 11.0 | 9.0 | 12.8 | 10.3 | 7.5 |
4 | Marlboro Medium | 4.0 | 4.5 | 7.9 | 8.6 | 6.5 |
5 | Dunhill Light | 2.5 | 5.3 | 5.2 | 5.4 | 8.1 |
6 | Marlboro Led | 3.9 | 3.4 | 4.2 | 3.9 | 4.4 |
7 | Virginia Super Slims | 1.8 | 0.1 | 2.0 | 2.5 | 5.4 |
8 | Finesse | 3.9 | 3.1 | 3.4 | 2.5 | 3.9 |
9 | Philip Morris Super Light | 1.7 | 1.4 | 2.1 | 1.8 | 1.4 |
10 | Salem Light | 0.8 | 1.4 | 1.5 | 1.2 | 2.0 |
Cigarette size was also identified as a characteristic that would appeal specifically to females. Based on a survey of Korean smokers aged between 18 and 54 years (450 male and 50 female), PM assessed the importance of different product themes and attributes by gender. Male participants rated thicker circumference cigarettes higher than female participants, and women rated cigarettes with less smoke and no smoke higher than men [
70]. Brown & Williamson International (then BAT's American subsidiary) similarly aimed to develop brands for Korean females who favoured extra length and value-for-money [
71].
Based on industry research, brands deemed to have feminine characteristics were developed and introduced in Korea from the late 1980s. BAT launched several brands, each aimed at a specific age group, led by
Finesse (sold as
Capri in other countries "with a female imagery campaign" [
72]), "considered primarily (but not exclusively) for females" [
73]. Marketed to "feminine, young, modern" [
74] women,
CAPRI/FINESSE is the U.S. International superslim cigarette offering the female smoker a statement of contemporary feminine style and a quality product. CAPRI is a fashion accessory. Target smokers are sophisticated, young adult females 21–35. The total CAPRI/FINESSE proposition projects a top quality image and makes the female smoker feel more like a woman [
73].
Finesse combined the growing worldwide popularity of "light" cigarettes with distinctive "superslim" dimensions:
Capri/Finesse is targeted to the largest group of prospective superslim smokers, women. Prior to the introduction of superslims, brands positioned primarily to women held a small share of the world market...Capri/Finesse can be effective against those brands.
Finesse smokers were described as younger (under 30 years of age), well-educated, more likely to be single, and having above average family incomes. As described by BAT, "Smoking Capri/Finesse makes a woman feel good about herself as a woman and allows her to make a style statement" [
57]. Importantly, it was emphasised that this group represented a good share of starters and switchers [
51]. South Korea, along with Italy and Japan, were projected as the largest markets for
Capri/Finesse given high levels of support from consumers for a superslim product [
75]. Volume gains for Finesse were expected to result from an increase in overall female smoking incidence [
76].
By the late 1990s, BAT noted that improvements in taste and quality were needed to appeal more broadly to women. A 1997 BAT General Consumer Survey (GCS), a large, quantitative study (n = 500), investigated female-specific smoker usage, attitudes, behaviour, and brand images through face-to-face interviewing in places where females commonly smoked. The results indicated that, despite continued social stigma towards female smoking, female smokers were moving away from imported cigarette brands and showing signs of "maturity" [
77]. Korean women wanted "to hear more about taste, quality, and a mild taste" and
Marlboro Lights performed poorly on taste-related attributes [
77].
In contrast with BAT, PMI targeted the female market with a single brand, a "light" version of
Virginia Slims, the flagship female brand for the company worldwide. A 1989 PM report,
Korea Market Management, recognized that the market for
Virginia Slims Light (VSL) was growing at an impressive rate. To ensure continued growth, the company aimed to: (a) keep VSL in line with the trend towards lower tar and perceived product strength; and (b) introduce an ultra low version of the brand. At the same time, PM planned to launch a super slim product that would gain market share from
Finesse, recognised as the only imported brand with a high share of female smokers (16%): "Since Finesse has a higher appeal to higher income female, a well-refined image for a Super slim brand with an acceptable product may have a chance to gain smokers from Finesse" [
78]. By the mid 1990s,
Virginia Slims and
Super Slims together had become the second largest import brands behind Japan Tobacco's Mild Seven [
79].