A Century Later, Camel Gets a Makeover

The iconic Camel cigarette pack has undergone its first makeover since it hit store shelves almost a century ago, as R.J. Reynolds Tobacco Co. tests new ways to market its biggest brands in a lagging market for smokes.

Though the enduring image of the Camel has not changed in the updated packaging, the animal is surrounded by a fresh look _ rounded graphics to highlight the oasis scene, larger and clearer pyramids in the distance, darker lettering emphasizing the Camel name, and color-coded ribbons to identify the style.

The box also touts the brand's history: "Since 1913."

"The challenge was taking something that was an iconic brand _ a sort of flagship _ and giving it a more modern look and feel," said David Howard, a spokesman for the Winston-Salem-based tobacco company. "The challenge is to do that while respecting and not losing site of the rich heritage of the brand."

Camel packaging has seen no significant changes since its inception, but R.J. Reynolds, the largest subsidiary of the nation's second largest tobacco company, Reynolds American Inc., has spent the past several years expanding on the Camel name with alternative offshoots of the standard style.

The new Camel pack, shipped to stores last month and expected to be on 80 percent of store shelves by late March, fits nicely into that campaign, said Wake Forest University marketing professor Michelle Roehm.

"Will it drive new sales dependent of itself? That's debatable," Roehm said. "But I've been impressed with what they've done. They've looked at this brand that has been kind of sitting there _ a stable brand that's not necessarily lighting the world on fire _ and used it in reaching out to new audiences."

Promotional experiments by R.J. Reynolds, which also produces brands such as Kool and Pall Mall, have long been met with criticism from anti-tobacco groups.

The company dropped its Joe Camel cartoon character in 1997, after a decade of contention with activists and government leaders who said the character was meant to appeal to children.

More recently, R.J. Reynolds has been defending its Camel No. 9 packaging and advertisements as anti-smoking advocates argue that its chic style is aimed at young women. And R.J. Reynolds again came under fire last year when its ads appeared next to a cartoon-like Rolling Stone segment on independent rock music.

R.J. Reynolds said in November that it would not buy ads in newspapers or consumer magazines in 2008.

Matthew Myers, president of the Washington-based Campaign for Tobacco-Free Kids, said the new Camel packaging underscores the industry's move to build its packaging into a standalone advertising tool.

"Now that Reynolds is not marketing in magazines, its clear that they're turning to the package to update the image and make their product more attractive," Myers said.

He also said that the color-coded labels to identify the brand's varieties _ such as filters and lights _ will serve to convey the same information even if Congress bans the words. But Howard, the R.J. Reynolds spokesman, pointed out that past packages have used colors to identify styles and that the hues help consumers know what they're buying.

Meanwhile, R.J. Reynolds is also testing new ways to market its products.

The company is dropping its buy-one-get-one-free and similar promotions, as the company tests whether it can build its market share without overspending on promotions. The company will test the plan throughout March in 25 states in the South and along the Eastern seaboard, with the get-packs-free promotions ending with stock being shipped Monday.

R.J. Reynolds will continue to offer cents-off promotions during its test period but hopes it can reinvest other promotional savings into the industry's sectors with more growth potential, such as niche cigarette brands and smokeless tobacco.

Cigarette sales across the country have fallen steadily in recent years amid soaring tobacco taxes and health warnings. And the tobacco industry has adjusted to expand its footprint in smoking alternatives and brand development.

Roehm, the Wake Forest marketing professor, said the R.J. Reynolds strategy will be watched by competitors eager to grab customers who won't be able to get cigarettes at R.J. Reynolds' previous promotion levels. But she said loyal customers will likely stick with the brand.

"It can be risky in the short-term _ sacrificing some switcher business," Roehm said. "They may take a short-term sales dip, but it could be very healthy over the long-term."

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On the Net:

R.J. Reynolds Tobacco Co.: http://www.rjrt.com

Campaign for Tobacco-Free Kids: http://www.tobaccofreekids.org