Camel strives to stub out Marlboro’s lead

Throwing camels out of windows is the sort of behaviour likely to get you reported to the RSPCA. Setting them alight first will definitely land you in court. But that’s exactly what RJR Reynolds International is doing with its new, deliberately jokey, 40m pan-European advertising for its main Camel brand (MW July 12).

It is hoping that the cartoon-style imagery, created by McCann-Erickson, will reverse its fortunes in its battle with arch-rival Marlboro. But some industry observers believe the creative work, and especially the plight of the camel hurtling through the air, is an appropriate metaphor for the position of the brand itself. Camel has a desperate need to catch Marlboro, which is streets ahead in Europe and the UK.

The comic push is its most important to date. In Europe, Camel is the number two brand and the new campaign, which could see annual expenditure increase by 15m, is designed to cement that position. In the UK, Camel is little more than a bit player with 0.3 per cent market share.

If the new campaign ever sees the light of day in the UK – and no decision is expected until September – it will have to be so severely toned down to satisfy UK guidelines that its impact will be questionable. After ads earlier this year to relaunch its lights variant, which featured penguins, the company has gone the whole hog by putting camels in a series of awkward, comic positions.

It is a complete reversal of its traditional advertising – featuring rugged individuals in rugged territory – and moves the brand away from its all-American heritage – an area already occupied by Marlboro. The imagery was becoming less and less relevant to the 18 to 24 age group and especially women, say Camel insiders.

Marlboro and Camel compete for the comparatively minor end of the market – American Blend tobacco – which accounts for about 13 per cent of UK sales. But it is a growing sector and one that has seen high advertising expenditure. While Marlboro holds an estimated 3.5 per cent nationally, Camel accounts for just 0.3 per cent.

But many observers maintain Camel has to be more radical. They wonder if its relaunched lights, including a change in the 80 year-old packaging and the new advertising, are enough.

“Camel has been hit hard by Marlboro in most countries and is losing market share to Marlboro and other American blends internationally,” says one source. “The general trend is toward lighter cigarettes and when Camel launched its light version it would have expected a bigger impact on sales than it has had.

“This year is crucial in the UK. If RJR Reynolds does not see a market share increase as a result of all the extra activity, it will review Camel’s position in the UK. Marlboro has been very active, spending more than 4m, Benson & Hedges has spent 21m, while RJR is spending between 1.5m and 2m.”

RJR Tobacco (UK) managing director Mike Steinle denies that RJR is reviewing its position in the UK. He says the relaunch of Camel Lights in May, with a 1.5m ad campaign, has given the brand its highest Nielsen rating for more than two years – capturing just under one per cent of its core London and South-East market. RJR has pursued a UK strategy of concentrating its sales activity on London and other major cities.

“RJR will stay in the UK,” says Steinle. “Camel is our strategic brand and we therefore hope to expand it in the UK. In the last two years we have seen the American blend sector grow because of the work of Marlboro and Camel. Other brands are old but Camel Lights has an affinity with young adult smokers. There are a lot of players who would want to have a one per cent share of the London and South-east region, a 13bn cigarette market.”

But there is another reason why the RJR campaign, along with those of other manufacturers in the UK, is so important. If a Labour government is elected there will be a blanket ban on tobacco ads. We could be witnessing the final advertising throes as tobacco manufacturers jostle for positions which will be much harder to alter if a ban happens.

“This could be the last chance,” says one tobacco insider. “If a brand is to make its mark and establish a greater market share, it probably needs to do so before any tighter restrictions are introduced.”

Ironically, a ban could protect Camel from other manufacturers but only if it can capitalise and build on its existing market share before any ban is introduced.

Camel is under pressure. The revamp of its light variant in the UK has produced benefits for the whole brand – but that now needs to be sustained. Across Europe, RJR Reynolds is pinning its hopes on a bizarre collection of cartoon camels.

One is being thrown out of a window on fire, while another squeezes its hind legs into a pair of tight jeans and a third, despite wearing a brown paper bag on its head, is easily recognisable as a camel.

The humour is appealing. But RJR is hoping the campaign will drive the Camel brand into a position where it will be able to withstand an ad ban. That is why so much is riding on that falling camel.