Secret Tobacco Industry Documents

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R E C f(v f 0TMMMC:ENRJR^I-FOX

LICENSINGcoRPORATMi

HUBERT A . NELSONPRODUCT SEA V ICES'

January 16, 1984

Mr . Frank A . SauuY3ers

Staff Uice President

C o r p o r a t e P G e l a t i i o n s a r a d ' C c c n u n i c a t i i o n s

Philip Morris Incorporated

120 Park Aven uehTewYork,N.Y ., 10017

D ear Frank :

; ( A % 1 ' 7 1 3 - %

It was a pleas ure to have met you last Wednesday . As we havediscusse d, Twentieth Century-Pbx would like to enter into ana eemerit' with Phili Morris for prod aL,2l aQ=mn_~~ +*tesin major moon pi nres praduced by Us .

Twentieth Century-Fox wpuld like to enter into an 18-mmnth agree-~that would offe r Philip Morris a uniqne publicity opportunity

vam tee ~a product lacement inn our feature f ilms . We would

the f'iral version of four feature film_s_ during the 18-mnth

p e ~ ' i ' ~ -. e woul o er your products exc~ vity for the periodooontract. You wnuld have script approvalifor the pl .acenent

of ' yowr products .

After tthe rel,ease of the films, your approval sole7 1y determines

that the exposuire is consis tent with our agreatnent . If ' ymiar e not

pleased with the length of v isual exposure, a negatiated refwnd' or

credit wrnsld be workedi out for that particula r project . In thehighly unli .kely situation of Fox being unable to satisfy youi, with

four fe ature films, your payment will be refunded on a prorated basis .

T`tve_Qg&t for tbe guaranteedplacement of Philip Morris cigarettes

in four inaj+ or, moti.on plctuire s prodixed by Ttaientieth Century-Fox wrnald

b e $ 1 0 1 0 , 0 I 0 ' 0 . .

According to the Mot .ion Pictwre Association of Anierica, Inc . (WAP,),

mrvie admissions for the fir st sewemmcmths of 1983 were 7 45 .7 million,,

up 20 .5 million over ttfe same periiod last year . Based on a maving

annual trend, it is projected that admissions f or 1983 will be 1 . 2

billion . Total box office gross for the first seven nronths of 19'8

were $2 .3 billion ; it is projected that box offi ce gross f or 1983 will

be $3'.7 billion. The 1983 gross will tflp 1982', which was a reoord

setting year, by approximately a quarter, bblliiion~dollars . Thesefigures are for U . S . releases only and do~nat reflect theatre admissions

in the rest of the world .

BOX 900. BEIYER LV' HILLS. CALIFORNIA W213 PHONE : (213) 2p33D17' . CABLE ADDRESS : CENTFOX, LOS ANGELES-TELEX'674B74



Mr . P'rank A . Saunders

' January 16, 1984

• Page Two

In 1982 the MPAA ccaYputerized the tracki ng a nd recording of films

released in the!U . S . for all identifiable distributors . A s a

result of this nrsw capability, the total count of films released

in 1982 by 64 distributors was 474 . Total U . S . box office gross

for 1982 'was $3 . 5 bi l l i o n . Based on these figures, the average

film gross was $7 .4 million . The average admission cost for 1982

was $2 .90 . Thus, the average admission per mavie for 1982'was

2 .6 million .

It should be noted that in 1982 there were 45 films that grossed

$8 million or mc>re an d there wexe 36 films that grossed $10 million

or mre. This should be kept in mindiwhen doing an a nalysis of

1982 imvie admissio n o n a c ost per thous a nd b asis .

If you desire, there cambe collatera l publicity opportunities

involving Fox stars which we can develop once a contract is executed .

In addition, we can a rrange appropriate screenings for you and yourr

wholesalers .

I look forward~ to further discussing this un ique opportunity with

you, for our Product Pl ; aceme nt Program c a n . as sist P hilip Nbrris i n

achieving its .mark eting objectives .

Sincerely,

Hubert A. N elsom

Product Services

HAN/han

cc : Chuc k Ashm a n

Tony Hoffma n



r

s e b r u a r y 1 0 . 1975

M r . Y . S c h e r a e r h o r n

9 r a a n & Yilttmnn Tobacco C n r p .

1 6 0 0 Hill S t r t e t

tcuisville, Kentucky a 0 Z U 1

He : lrams felebrlty Samltna

[p2r Bill :

Per ultsruf eartimaest igatloo intoathe pwtteraof grow yetti ngiflree Tranpitn the

ca ll Cigan ttts la to th e hands of "m vle stars, cel ebrities, and th e in-cro ud"

on tAe Yest ¢oes0There am a nuNer of vyys this eeuld be approached :

I . Through our persqnal contacts d tha talent and entertaimmatfields, ee could probably provide Bro.n 8 Wlliareon vitb the

Phase and hm2 adJnsut of approxfirately 1 .000 approprLte

prrsonalitias ta whom a riling could be made by Brwn 6 Ylllieman .

Plthough our cmtacts t0ink the anH-slmking fanatfcs could beened-out of such a aalling list, va do NOi re mnd toie

a p p ro a c h h e c a u u t h e p o t e n t i a l r i s k o f a d v e r s e p u b l i c i t y v s u i d

appear to outeei yh th e pa ssible ben ef itss

l i s t o f t h e " i n ° t l i s c o t A e qu e s , p r i v a t e c l u b s , s i n 9 l e s b a r s ,

r a n t s , e t c . could be canpned and arrangmnts naa : to dls-

f r e e p a c k a 9e s o f T r a m e s a t s t r a t e g i c t i m e s .

IDe Fcadrv hvarda a a1eluled fur Ppril 9 . ik did not and W NOTsx b e d i s t r i b u t e d a t t h e P r a r ds C e r e n n n y , e g a i nmrend tlm t framp

o f p o zs i b l e a E V e ra e p u b l i c i t y . T b e re I s e b e n q u [ t a t t h e

n e .erly Hilton follmring the sv and it haE been bypatbesiaed ttatP r e m p s c o u l d p o s s i b l y b e s ' e l y ~ s a n n l e d t n e r e . H a u e a e r , C o n `i d e n t i a l

l r .ea tiga t ion (1PJN b1lnJjabae r en1eE tno t ilte banqnet i s a clo se d

f o r t h e n c a E e m y B o a r a o f C i r e c t o r s a n d o t h e r h i g h - n n k i n g l u m i -

no sampling wn u 1J be

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Mmywer.wmem.ua.d .

~I F . M. Sdeauerlwra

8rwn t Y1111a®n Tabacm fnN .

e . ebtinn nietum an! t .ltHtian pmluctiun stueios end 'sete' as

uell m tlnaMUl 'ep mtngs' mHaK1Y neve e concenera ClE

ta usoplempeWLer sbe1TrUps ttThtta 1 cltlbn~ 's/erent~ M~e

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essentielly ueayEtEetle Nfte sanpling enrm9 prips . electricians .

propbn and t l e 1 1 t e .

5 . T e m s u m a i l n t a u r l s L o f m A a v u r e b l e e s y o s u r e f u r t w w 8 M i 1 1 L r d s a n a n E l r a e p s

. It 1s s ugyesteE that yuur Legel aod Public p s latians

pep'r®astpmne ct aarv.sma6lMSlllemcw undoubeedlyslaMltataEailM-

such ffin wIM MM1m it ku bad Praiaus s .pe.lence . Ne have tlw

swees uT Mrte fuM fii.e elle 11M1en ibL M1as yreviouely werkeL, anE

cw pruride SM . to yau if yeu MSM1 :

sinyrely .

.tiM Pullets

rN03lLEO~~yi 6EIFGL.IaU6n ~ ~



AOIVISIONOFLOEWSTHEATRES,INC. • 2525 EAST MARKET STREET, GREENSBORO, NORTH CAROLINA 27401

June 8, 1979

TO: FILESUBJECT: SEDGEFIELD IDEA SESSIONS

June 6-7, 1979

The following paragraphswill summarize the discussions held atthe joint sessions in which everyone participated . A laterreport will document the ideas and suggestions which werediscussed within the individual groups but rejected for usein the general meeting .

The subjects discussed fall generally into three areas :

New ProductsMarketingCost Savings

Several of the suggestions arose from various groups and thediscussions following the individual ideas will summarize thegeneral feeling expressed by the various groups and my editorialcomments .

S. T. Jbsies

STJ :BM

Attachments



NEW PRODUCTS IDEAS

1 . Oriental Cigarettes

The idea behind this product was fourfold : Advantages included

pleasant room aroma, mild smoke, possibility of a longer burn

time with lower delivery, and possibility of advertising this

as a natural product .

2 . Flavored Cigarettes

All of the suggestions for this product generally parallel our

NFS and socially acceptable cigarette projects .

3 . Fruit Flavored Chewing Products

Several avenues were explored in this area with the idea being

directed toward younger chewers coming into the market. Many

people felt that younger chewers would be attracted to products

with less tobacco taste . For example, it was suggested that we

investigate the possibility of borrowing switching study data

from the company which produces "Life Savers" as a basis for

determining which flavors enjoy the widest appeal .

Another suggestion was that we manufacture a product in "bite

size", individually wrapped sections, with different flavors .

Another suggestion was to produce a chewing product in which

bubble gum is incorporated .

Another suggestion was to produce and market a chewing tobacco

product in which the tobacco would be surrounded by a flavored

sugar coating, similar to gum balls .

1 .



4 . Smokeless Tobacco Product

5 . Winery

This was a suggestion for a new venture as it was felt that

Lorillard currently has much of-the required technical expertise

in house .

6 . Multi-Purpose Cigarette

This suggestion arose from several groups, all of which were

related to giving the consumer a product in which he could

adjust the tar delivery, for example, by increasing or decreasing

the air dilution in the filter .

Another suggestion in this area was to mix for example, four

cigarettes with 10 mgs . tar delivery, and 16 cigarettes with

3 mgs. tar delivery, because many people feel that smokers in the

ultra low-tar category occasionally prefer a stronger smoke .

Several people suggested using a dual filter, the idea being

one segment could be detached thereby increasing the tar

delivery .

7 . Enrichment Technology

There was general agreement that we should continue our basic

research activity in this area .

8 . Chemical Treatment - Burn Retardance

There was general agreement that additional "know how" in this

area is required if we are to maximize the utilization and

economics of puffed tobacco .

9 . Old Newport

Many people felt that the reintroduction of the old Newport

with the "hint of mint" including the old package and tipping

XCJ

Gt

1 _ h

C . '

! . 4

~

2 .



C

C

when this product would be available .

12 . Premium Priced Cigar

would appeal to older smokers who left the brand ten years ago .

10. Encapsulated Filter Flavors

This was viewed as a means of incorporating non-traditional or

unstable flavors in cigarettes ._

11. Kent III Menthol

Several people noted that consumers had asked them if and

This suggestion arose from the fact that this is the only

growing segment in the cigar industry. We would act as a

distributor for this product and might perhaps couple it with

C ~.oreota}e_ - -smp-late advertising by using it, for example, with the name

Pierre Lorillard .

13 . Soft Plug Chewing Tobacco

Every group discussed this idea in some form. Advantages

included attractive packaging, convenience of carrying, and

possible sales in vending machines .

14 . Extruded Reconstituted Tobacco Products

Possible advantages include the use of flavor substitutions in

that extrusion methods generally do not require high temperatures .

15 . "Roll Your Own Cigarette"

This suggestion was based on two factors : ; (1) Economy for

the consumer; and, (2) Possible greater utilization of by-products

generated in cigarette manufacturing .

16 . 1 mg. Tar Product

Requirements/advantages include low gas phase ; easy draw ; and

high taste.1~.



17 . Light Chewing Tobacco

.

This product would be light in color and taste and should

appeal to the younger consumers .

It was suggested that we should investigate the possibility of

using puffed tobacco in a scrap chewing tobacco product .

Another suggestion was to investigate tobacco extenders including

for example, lettuce, kenaf and cellulose .

New Type Chewing Products

9 .

Ideas included chewing gum with added nicotine and either

tobacco or other added flavors .

Also discussed was a "chew stick" possibly manufactured from a

low densitv wood with added nicotine .

Kent Improvement

20 .

Ideas were generally similar to those discussed at the PDC

meeting recently .

Enriched Cigarette with Beneficial Effects

21 .

This would be a low-tar cigarette with added ingredients such

as apetite suppressants, sleeping aids, aspirin, etc .

Six-pack Carton

22 .

This could be with either cigarettes or scrap chewing products

with an economy motive .

100 mm . Hardbox Cigarette

23 .

This would be a new product designed to appeal to female smokers .

Colored Cigarette Papers/printed Cellophane

This idea arose in several forms including a mint green

cigarette paper on a menthol brand .

W2G"



It was further suggested that the economics of this idea could

be extended by designing labels of regional appeal and printing

the brand name on the cello overwrap . This approach was also

suggested as a means of producing a range of products with a

common name and advertising budget but with varying tar levels .

24. Economy

Reinvestigate the use of a 30's pack or perhaps packages of

less than 20 at a reduced selling price . Particular interest

would be expected in high cost areas .

25. New Small Cigar

This product would utilize a flavored foam type chewable filter .

26 . Tobacco Free Cigarette

Either tobacco substitute materials or cigarettes made from

laminated,.papers with encapsulated flavors were suggested .

27. Cigarettes with Demographic Appeal

Areas include race, nationality, age, regional preference, etc .

28. New Menthol Cigarette

This product would incorporate a potent cooling agent different

from menthol .

29. Non-flammable Cigarette

This product would utilize flavored filters and potentially

generate income from consumers leaving the market .

30. Ecology

Suggestions for a self-extinguishing cigarette and for a product

utilizing biodegradable filter and wrapping materials were expressed .



C

MARKETING/PACKAGING

1 . Chewina Tobacco

Develop ad campaigns to appeal to other than blue collar workers .

Areas discussed included leisure time activities such as fishing,

golf, etc .

2 . Metalized Mylar Film

Introducing a new scrap chewing or plug product utilizing this

film which has several possibilities for increased eye appeal .

3 . Improved tear tape tab

Discussion on this point brought out the fact that we now have the

capability to print the point of tear tape detachment on our labels .

Standardization of tear tape was also discussed .

4 . Old Gold

It was suggested that perhaps we could revitalize Old Gold Filter

by using the old 'gold label incorporating the coins and the "V"

in the design .

5 . Unable to Purchase

Developing means of taking advantage of "unable to purchase"

complaints .

6 . True

Building ad theme around "My TRUE Story" using light-hearted

approaches such as "I met my husband in the bowling alley when

I went to the machine to purchase my pack of TRUE's ."

1 rxM+

HT



COST SAVINGS

1 . 20's Pack Sampling

Many people feel our current 4's pack sampling is both inefficient

and uneconomical. -2 . Foil Reolacement

Purchasing showed samples of a gold printed paper with good color

match to our labels which have gold colors . Annual savings of about

$400,000 would result from its use throughout the factories .

3 .

4 .

5 .

6 .

7 .

8 .

9 .

A sample product in which this printed paper was

picked up in a Philip Morris test market area .

Thin Reconstituted Leaf

It was felt that this product would have greater

and physical strength than our current product .

Encapsulated Menthol in Cigarette Paper

High Speed Combiners

High Speed Packers

Primary Process Control

Also

and

Extensive training in experimental design and data analysis

was suggested . This should equip us to more efficiently design

projects and utilize the data generated .

used was recently

filling power

This suggestion dealt mainly with increased automation .

increased automation in cigarette, physical, mechanical

leaf labs was discussed .

Training

Expanded Tobacco

Increase levels of expanded tobacco in our products . Investigate Ov

possibility of expanding both other tobacco types or the partial

expansion of entire blends .



10 . Circumference Measurement

1 .

Primary request was for an instrument to accurately measure the

circumference of combined filter rods .

Secondary consideration was more accurate measurement of filter

rods made with porous plugwraps .

Wrapping Material Preparation/Conditioning

12 . Longer Brand Runs

13 .

Ideas included inventory leveling and cold storage particularly

for small volume brands .

Cigarette Paper Splice

4 .

It was sugg.ested that cigarette paper splice tape would be

%

.Qc :¢Qi

imprinted with a message ^ for example, yxe jacfe that would turn. . a c 3 : e . .

a negative consumerA into a positive consumer rase E+o+~•

State Tax

It was suggested that we should investigate means of helping

the jobbers in applying state tax stamps . ideas ranged from an: /

.

~easy opening hot melt adhesive to giving the Pitney-Bowes

operators premiums such as Kent umbrellas .

15. Three Week Shutdown and 4-day work week

After considerable discussion it was generally agreed that the

negatives outweighed the positives on both of these suggestions

in that extended vacations would reduce our capacity and the

four day work week would be inconsistent with our third shift

expansion .



16 .' Standardization

There was general agreement that further efforts toward increased

standardization of cigarette components would result in greater

efficiency and economy. -17 . Shrink-Wrap

It was suggested that we investigate the possibility of palletizing/

shrink-wrapping shipments to U . S. Possessions, thereby eliminating

carton overwraps .

3 .



1990 NEW MARKETING IDEAS

SUBMITTED BY :

ADVERTISING AND PROMOTION RESEARCH

MARCH 6, 1989



Program: Marketing Highly Targeted New/Established Brands ExclusivelyThrough the Mail

Objective

T h e o b j e c t i v e o f t h i s p r o g r a m i s t o d e v e l o p a u n i q u e m a r k e t i n g s t r a t e g y f o r m a r k e t i n g h i g h l y

t a r g e t e d n e w a n d e s t a b l i s h e d b r a n d s b y u s i n g d i r e c t m a i l a s t h e e x c l u s i v e m e d i u m f o r

i n t r o d u c i n g , a d v e r t i s i n g a n d p r o m o t i n g t h e b r a n d._Descri tion

• N OW, M ORE and potential new brands which are highly targeted, w ith a n older and more

f e m a l e t a r g e t , w i l l n o l o n g e r u s e m a g a z i n e s , n e w s p a p e r s a n d O O H t o m a r k e t t h e i r b r a n d s t o

t h e i r t a r g e t . I n s t e a d t h e y w i l l u t i l i z e t h e c o m p a n y ' s s m o k e r l i s t a n d d i r e c t m a r k e t i n g

e x p e r t i s e t o d e l i v e r m o r e r e l e v a n t a n d i m p a c t f u l a d v e r t i s i n g i n a m o r e c o s t e f f e c t i v e •

ma nner .

• T h i s n e w m a r k e t i n g s t r a t e g y w i l l a l s o i n c o r p o r a t e t h e p r i n c i p l e o f c u s t o m i z e d

c o m m u n i c a t i o n u s i n g m i n d s e t s e g m e n t a t i o n t o i n c r e a s e t h e r e l e v a n c e a n d a p p e a l o f e a c h o f

these brands .

Ra tionale

• Direct mail is a more personal and direct medium for reaching consumers . U s i n g d i r e c t m a i l

w i l l e n a b l e t h e c o m p a n y t o p r e c i s e l y c o n t r o l t h e t y p e a n d f r e q u e n c y o f m a r k e t i n g

commu nication with the consumer . F u r t h e r , t h i s s t r a t e g y w i l l e n a b l e t h e b r a n d t o i n c r e a s e

i t s r e l e v a n c e t o t h e c o n s u m e r b y c o n s i s t e n t l y i n c o r p o r a t i n g c u s t o m i z e d c o m m u n i c a t io n

using mindset segmentation .

M a r k e t i n g b r a n d s d i r e c t l y t h r o u gh t h e m a i l f r e e s u p c o r p o r a t e r e s o u r c e s w h i c h c a n b e

a p p l i e d t o o t h e r b r a n d s a n d r e d u c e t h e d e m a n d f o r s c a r c e c o m p a n y r e s o u r c e s s u c h a s O O H

inventory .

• N OW and M ORE a re RJR's two most targeted brands . F u r t h e r , t h e i r t a r g e t s t e n d t o b e o l d e r

and more fema le . B o t h o f t h e s e g r o u p s a r e m o r e i n t e r e s t e d i n a n d r e s p o n s i v e t o m a t e r i a l s

s e n t i n t h e m a i l v e r s u s o t h e r d e m o g r a p h i c g r o u p s .

• T h e c o s t t o m a r k e t a b r a n d t h r o u g h t h e m a i l i s m u c h l e s s e x p e n s i v e t h a n o t h e r t r a d i t i o n a l

m e d i a w i t h t h e e x c e p t i o n o f O O H i n t e r m s o f d e l i v e r i n g r e c a l l e d a d v e r t i s i n g i m p r e s s i o ns t o

t h e i n t e n d e d t a r g e t . O O H , h o w e v e r , p r o v i d e s o n l y p a r t i a l a d v e r t i s i n g m e s s a g e

c o m m u n i c a t i o n .

T r a d i t i o n a l m e d i a f o r a h i g h l y t a r g e t e d c i g a r e t t e b r a n d h a v e a l o t o f w a s t e . M o s t o f t h e

a d v e r t i s i n g i m p r e s s i o n s g o t o n o n - s m o k e r s , t h e m a j o r i t y o f s m o k e r s r e a c h e d a r e n o t i n t h e

b r a n d ' s t a r g e t a n d t h e r e c a l l o f a d v e r t i s i n g i n m a g a z i n e s , O O H a n d n e w s p a p e r i s s i g n i f i c a n t l y

l o w e r t h a n f o r d i r e c t ma i l . A t t a c h e d i s a n a n a l y s i s o f t h e r e l a t i v e c o s t s o f u s i n g d i r e c t m a i l

v e r s u s o t h e r m e d i a f o r m s t o d e l i v e r r e c a l l a d v e r t i s i n g i m p r e s s i o n s t o t h e i n t e n d e d t a r g e t . As

t h e a n a l y s i s s h o w s , d i r e c t m a r k e t i n g i s t h e o p t i m a l v e h i c l e t o f u l l y d e l i v e r a b r a n d ' s



a d v e r t i s i n g m e s s a g e t o t h e t a r g e t i n a c o s t e f f e c t i v e m a n n e r .



I 50725 5775

Reiative Media Efficiency of Delivering Recalled Advertising To Target Smokers

Assuming target size to be 5% of smokers

MEQ I 9 DELNERY COST1 SMOKING INCIDENCE

% RECALLING

ADVERTISING

% HITTING COST

TARGET COMPARISON2

MESSAGE

QUALITY~

OOH $ 1 . 3 9 2 8% 29% 5% $ 3423 6 P a r t i a l

MAG.

G e n e r a l $3 . 5 5 2 8% 21 % 5% $ 603. 7 4 Complete

T a r g e t e d $24 . 5 1 2 8% 2 1 ° k 1 2 .5%a $ 3334. 6 9 Complete

NP $20 . 7 3 28% 21% 5% $ 7051 . 0 2 Complete

MAI L $ 2 0 5 . 0 0 9 0 % 65 % 80% $438. 0 3 Complete

.ICOST TO REACH 1000 ADULTS FOR GENERAL MEDIA AND COST TO REACH 1000 HOUSEHOLDS FOR DIRECT MARKET ING .

2COST TO REACH 1000 TARGETED SMOKERS (ASSUMING 5% OF SMOKERS) WHO CAN RECALL THE ADVERTISING .

1 , 1 1

' 3BAS ED ON TARGETED MAGAZ INES PROVIDING AN INCREASE IN REACH OF 2 . 5 T I M E S .

4THE AB4 LITY OF THE M EDIUM TO DELIVER A COMPLETE ADVERTISING MESSAGE .



Program: Factory Fresh Product

Objective

T h e o b j e c t i v e o f t h i s p r o g r a m i s t o p r o v i d e c o n s u m e r s , p a r t i c u l a r l y f r a n c h i s e s m o k e r s , a w a y

t o g e t f a c t o r y f r e s h c i g a r e t t e s t h e r e b y p r o v i d i n g a u n i q u e b e n e f i t f o r R J R b r a n d s a n d a l s o

i n c r e a s i n g t h e l o y a l t y o f o u r s m o k e r s .

Descri tQ ion

• A l l R J R b r a n d s w i l l o f f e r c o n s u m e r s t h e o p p o r t u n i t y t o o r d e r t h e i r c i g a r e t t e s , v i a a n 8 0 0

n u m b e r , d i r e c t f r o m t h e f a c t o r y , w i t h a g u a r a n t e e t h a t t h e y c a n ' t b u y f r e s h e r p r o d u c t

anywhere .

• T h e o p p o r t u n i t y t o o r d e r f a c t o r y f r e s h c i g a r e t t e s w i l l b e f l a g g e d o n a l l R J R c a r t o n s f o r a 6

mon th period . F o l l o w i n g t h a t p e r i o d , t h e o f f e r w i l l c o n t i n u e t o b e m e n t i o n e d o n a l l c a r t o n s ,

b u t i n a l e s s i n t r o d u c t o r y f a s h i o n .

• T h e p r o d u c t s w i l l b e g u a r a n t e e d t o b e t w o w e e k s o l d o r l e s s w h e n t h e y a r e s h i p p e d , a n d w i l l b e

a t t h e c o n s u m e r s ' h o m e o n e w e e k f r o m t h e t i m e o f t h e i r o r d e r .

• A m i n i m u m o r d e r o f 5 c a r t o n s w i l l b e r e q u i r e d w i t h R J R t o p a y t h e s h i p p i n g . The consumer

w i l l p a y t h e s a m e p r i c e p e r c a r t o n t h e y w o u l d i n t h e i r o w n s t a t e .

• T h e f i v e c a r t o n s h i p m e n t w i l l s e n t i n a s t u r d y , p o l y - w r a p p e d b o x t o e n s u r e f r e s h n e s s .

Rationaie/Benefits

• P r o d u c t f r e s h n e s s i s a k e y a r e a o f s m o k e r i n t e r e s t . Currently many RJR products are

d e f i c i e n t t o c o m p e t i t i o n i n t h e i r p e r c e i v e d f r e s h n e s s. F a c t o r y d i r e c t s a l e s f o r R J R b r a n d s

e n a b l e t h e m t o p r o v i d e a c o m p e t i t i v e a d v a n t a g e i n t h e a r e a o f p r o d u c t f r e s h n e s s .

• O f f e r i n g f a c t o r y f r e s h p r o d u c t s h o u l d a l s o p r o v i d e g r e a t e r p u r c h a s e l o y a l t y t o t h o s e

consumers who order their product in this way . A l s o , t h e 5 c a r t o n m i n i m u m w i l l h e l p

c r e a t e c o n s u m e r l o y a l t y b y t a k i n g t h e m o f o u t o f t h e p u r c h a s e c y c l e f o r a n e x t e n d e d p e r i o d o f

t i m e.-



Program : Sneciai Occasion Promotional Tie-ins

Objective

T h e o b j e c t i v e o f t h i s p r o g r a m I s f o r R J R c o r e b r a n d s t o p r o v i d e p r o m o t i o n s t h a t a r e m o r e

d i r e c t l y t i e d I n t o s p e c i a l o c c a s i o n s , h o l i d a y s o r o t h e r r e l e v a n t d a t e s.

Descri tp ion

• P r o m o t i o n s w i l l b e d e v e l o p e d t o c o r r e s p o n d w i t h s p e c i a l t i m e s o f t h e y e a r i n c l u d i n g :

-Christmas -Memorial Day -Halloween-New Years -St. Patrick's Day -Thanksgiving

-President' s Da y -4th of July -April 15 (taxes due)

-Valentines Day -Labor Day

• C o n s u m e r s ' i n d i v i d u a l b i r t h d a y s ( b o t h f r a n c h i s e a n d c o m p e t i t i v e s m o k e r s ) w i l l b e h o n o r e d

w i t h a s p e c i a l g i f t f r o m t h e a p p r o p r i a t e R J R b r a n d . T h e c o n s u m e r w i l l b e s e n t a g r e e t i n g

c a r d w h i c h w i l l i n c l u d e a b i r t h d a y g r e e t i n g , a n d a c o u p o n g o o d f o r t h r e e f r e e p a c k s o f

c i g a r e t t e s .

• B r a n d s w i l l o f f e r s p e c i a l e d i t i o n p a c k a g e s t o c o m m e m o r a t e k e y e v e n t s i n A m e r i c a s u c h a s

e l e c t i o n s , w i n n e r s o f s p o r t i n g e v e n t s , e t c.

Rationale/i3enefits

• M o r e c l o s e l y l i n k i n g p r o m o t i o n s w i t h s p e c i a l t i m e s d u r i n g t h e y e a r w i l l i n c r e a s e t h e

r e l e v a n c e a n d a p p e a l o f o u r o f f e r s a n d p r o v i d e a s e a s o n a l f l a v o r t o o u r p r o m o t i o n s ( a s w e d o

w i t h o u r a d v e r t i s i n g ) t h a t I s u n i q u e i n t h e i n d u s t r y.

• G i v i n g c o n s u m e r s a g i f t o n t h e i r b i r t h d a y c a n c r e a t e a s p e c i a l r e l a t i o n s h i p b e t w e e n a

c o n s u m e r a n d a b r a n d t h a t i s n o t p o s s i b l e w i t h a n y o t h e r p r o m o t i o n . D a t e o f b i r t h

i n f o r m a t i o n i s a v a i l a b l e f o r n e a r l y 4 0 m i l l i o n s m o k e r s v i a t h e D i r e c t M a r k e t i n g d a t a b a s e .

• S p e c i a l a d d i t i o n p a c k a g e s w i l l b e c o m e c o l l e c t o r s i t e m s i n c r e a s i n g t h e i n t e r e s t i n t h e

brand(s) .



Program: Mindset Segments Advertising Poolouts

Objective

T h e o b j e c t i v e o f t h i s p r o g r a m i s t o p r o v i d e a d d i t i o n a l r e l e v a n c e t o o u r a d v e r t i s i n g p o o l o u t s b y

l e v e r a g i n g t h e c o n c e p t o f m i n d s e t s e g m e n t a t i o n .

D e s c r i t g: i o n

• A l l b r a n d s w i l l d e v e l o p e x e c u t i o n s w h i c h w i l l b e t a r g e t e d t o t h e a p p r o p r i a t e m i n d s e t

c l u s t e r s b a s e d o n t h e i r s t r a t e g i c f o c u s a n d o t h e r m a r k e t i n g c o n s i d e r a t i o n s .

-Y earning adults

-Achievers

- H a r d c o r e s o c i a l i z e r s

- G e n d e r - r o l e t r a d i t i o n a l i s t s

- P r a c t i c a l g o a l o r i e n t e d

-Ma ture socializers

• T h e s e t a r g e t e d a d v e r t i s e m e n t s w i l l b e p l a c e d i n t h e m e d i a v e h i c l e ( s ) t h a t w i i l m o s t

e f f e c t i v e l y r e a c h e a c h m i n d s e t g r o u p .

Rationale/Benefits

• T h e m i n d s e t c l u s t e r s d e v e l o p e d i n t h e D i r e c t M a r k e t i n g a r e a c a n b e u s e d t o d e v e l o p

advertising messages w hich a re more relevant to the consumer based on incorporating how

each segment views themselves and the world around them . D e v e l o p i n g a d v e r t i s i n g p o o l o u t s

a i m e d a t e a c h s e g m e n t w i l l i n c r e a s e t h e r e l e v a n c e a n d a p p e a l o f t h e b r a n d .



Program : WINSTON Sports Trivia Connection

Objective

T h e o b j e c t i v e o f t h i s p r o g r a m i s t o r e i n f o r c e W I N S T O N ' s c l a i m a s t h e s p o r t s c o n n e c t i o n b y

p r o v i d i n g c o n s u m e r s a c c e s s t o s p o r t s t r i v i a. -escription

t

• The WINSTON Sports Trivia Connection will establish WINSTON as the source of sports trivia

information .

• T h e p r o g r a m w i l l i n v o l v e b o t h p a c k i n s e r t s a s w e l l a s O O H s u p p o r t t o d e l i v e r s p o r t s t r i v i a

to the consumer .

• F o u r s p o r t s t r i v i a q u e s t i o n s w i l l b e i n c l u d e d o n a n i n s e r t i n e a c h p a c k o f W I N S T O N . The

a n s w e r s t o t h e q u e s t i o n s w i l l b e o n t h e b a c k o f e a c h i n s e r t.

• T h o u s a n d o f q u e s t i o n s o n s p o r t s w i l l b e a v a i l a b l e f o r t h e c o n s u m e r t o t e s t t h e i r s p o r t s t r i v i a

e x p e r t i s e .

• O O H w i l l a l s o p o s e s p o r t s t r i v i a q u e s t i o n s . T h e a n s w e r s t o t h e s e q u e s t i o n s w i l l b e

i n c o r p o r a t e d i n t h e p a c k i n s e r t. T h u s , t o g e t / c o n f i r m t h e a n s w e r t o t h e O O H t r i v i a , t h e

consum er mu st purchase a pack of WINSTON .

Rationaie/Benef its

• S p o r t s e n t h u s i a s t s a r e v e r y i n t e r e s t e d i n s p o r t s t r i v i a. A s the sports connection, WINSTON

w i l l a l s o b e t h e c o n n e c t i o n f o r s p o r t s t r i v i a.

• Pack inserts provide an opportunity for WINSTON to provide consum ers with on-going trivia

q u e s t i o n s / a n s w e r s t h a t w i l l c r e a t e a n d m a i n t a i n i n v o l v e m e n t w i t h t h e b r a n d a n d s e r v e t o

r e i n f o r c e t h e b r a n d ' s p o s i t i o n i n g .

• I n v o l v i n g O O H i n t h e p r o g r a m a l l o w s g r e a t e r a w a r e n e s s o f t h e p r o g r a m a n d s e r v e s t o c r e a t e

c o n s u m e r i n t e r e s t t h a t w i l l l e a d t o p u r c h a s e ( t o g e t t h e a n s w e r t o t h e t r i v i a q u e s t i o n ) .



Program : WINSTON Sports Champions Commemorative Packages

Objective -

T h e o b j e c t i v e o f t h i s p r o g r a m i s t o r e i n f o r c e a n d e x t e n d W I N S T O N ' s a s s o c i a t i o n w i t h s p o r t s .

Descri tg ioh

• W I N S T O N w i l l I s s u e s p e c i a l a d d i t i o n p a c k s t o c e l e b r a t e t h e c h a m p i o n s i n a l l m a j o r s p o r t s .

-Football -Baseball -Basketball-Tennis -Hockey -Track and Field-Soccer -Horse racing -Auto racing

• T h e s e s p e c i a l p a c k a g e s w i l l b e o f f e r e d o n l y f o r a l i m i t e d t i m e s u p p o r t e d b y s p e c i a l d i s p l a y s .

Rationale/Benefits

• T h e s p e c i a l a d d i t i o n s p o r t s c h a m p i o n s p a c k a g e s w i l l p r o v i d e a s t r o n g a n d r e l e v a n t t i e f o r

W I N S T O N a n d t h e w o r l d o f s p o r t s t h u s r e i n f o r c i n g i t s r o l e a s t h e s p o r t s c o n n e c t i o n .

• T h e s e p a c k s w i l l h a v e a p p e a l t o s p o r t s e n t h u s i a s t s a s c o i i e c t o r ' s i t e m s t h a t w i l l a d d t o t h e

appeal and myst ique o f WINSTON .



Program : SALEM Refreshest Olympics

Objective

T h e o b j e c t i v e o f t h i s p r o g r a m i s t o d e v e l o p a u n i q u e c o n s u m e r p a r t i c i p a t i o n s p e c i a l e v e n t t o

r e i n f o r c e S A L E M ' s r e f r e s h e s t p o s i t i o n i n g .

- D e ~ s c r i t p i o n

• The SALEM Refreshest Olympics will inco rporate numerou s con sumer participation events

t h a t r e l a t e t o S A L E M ' s r e f r e s h e s t p o s i t i o n i n g a n d a d v e r t i s i n g . Events wo uld revolve aroun d

s y m b o i s o f r e f r e s h m e n t s u c h a s w a t e r a n d i c e .

• T eams of consumers will compete in a nu mber of events for medals, ribbon s and prizes .

• T h e R e f r e s h e s t O l y m p i c s T r i a l s w i l l b e h e l d i n n u m e r o u s c i t i e s a c r o s s t h e c o u n t r y . Winning

t e a m s f r o m a c r o s s t h e c o u n t r y w i l l b e f l o w n t o t h e s i t e o f t h e O l y m p i c F i n a l s w h e r e g o l d ,

s i l v e r a n d b r o n z e m e d a l s w i l l b e a w a r d e d t o t h e t o p f i n i s h e r s i n e a c h e v e n t .

Ration ale/Ben efits

• Y o u n g e r a d u l t s e n j o y b e i n g i n v o l v e d i n u n i q u e a c t i v i t i e s w i t h o t h e r s . The SALEM Refreshest

O l y m p i c s w i l l p r o v i d e a f u n a n d e x c i t i n g e v e n t .

• D e v e l o p i n g t h e e v e n t t o b e o r i e n t e d c o m p l e t e l y a r o u n d t h e " r e f r e s h e s t " t h e m e w i l l p r o v i d e

s t r o n g a n d r e l e v a n t s u p p o r t f o r t h e b r a n d ' s p o s i t i o n i n g a n d a d v e r t i s i n g .



Program : CAMEL "Smooth Moves" Adventure

Objective

T h e o b j e c t i v e o f t h e C A M E L " S m o o t h M o v e s " A d v e n t u r e i s t o i n c r e a s e t h e l e v e l o f i n v o l v e m e n t b y

younger adult target smokers with the CAMEL brand and to reinforce CAMEL's S mooth Character

a d v e r t i s i n g i m a g e ry t h r o u g h a u n i q u e a n d i n v o l v i n g t r e a s u r e h u n t .

De sc r ipti o n

• The CAM EL Smooth Moves Adventure will Involve consumers solving the mystery of the lost

Golden Camel .

• T h e " A r c h e o l o g i s t " C A M E L w i l l l e a d t h e e x p e d i t i o n t o f i n d t h i s l o s t t r e a s u r e a n d c o l l e c t t h e

reward .

• C l u e s i n t h e f o r m o f p u z z l e s , r i d d l e s a n d l o g i c p r o b l e m s w i l l b e c o n t a i n e d i n e a c h p a c k o f

CAME L via a pack insert .

• C o n s u m e r s w i l l s o l v e e a c h i n d i v i d u a l c l u e a n d t h e n p u t t h a t i n f o r m a t i o n t o g e t h e r w i t h

i n f o r m a t i o n f r o m t h e o t h e r a v a i l a b l e c l u e s t o d e t e r m i n e t h e m y t h i c a l l o c a t i o n o f t h e l o s t

G o l d e n C a m e l . A p p r o x i m a t e l y 5 0 c l u e s w i l l b e a v a i l a b l e i n t o t a l. F o u r t o f i v e n e w c l u e s w i l l

b e a r r i v i n g a t r e t a i l e a c h m o n t h w i t h a l l t h e c l u e s d i s t r i b u t e d b y t h e e n d o f a y e a r.

• A t t h e e n d o f t h e y e a r c o n s u m e r s w i l l s e n d I n d e t a i l e d d e s c r i p t i o n s o f t h e l o c a t i o n o f t h e l o s t

G o l d e n C a m e l b a s e d o n t h e i n f o r m a t i o n p r o v i d e d i n t h e c l u e s . T h o s e c o r r e c t l y I d e n t i f y i n g t h e

p r e c i s e l o c a t i o n w i l l s p l i t t h e l a r g e r e w a r d o f f e r e d f o r t h e t r e a s u r e ' s s a f e r e t u r n. The value

o f t h e r e w a r d w i i i b e b a s e d o n t h e e q u i v a l e n t v a l u e o f t h e g o l d i n t h e l o s t C a m e l ( s p e c i f i c

v a l u e t o b e d e t e r m i n e d ) .

Rationa ie/Benef its

• Y o u n g e r a d u l t s m o k e r s e n j o y g a m e s , r i d d l e s a n d p u z z l e s . The CAMEL Smooth Moves

A d v e n t u r e w i l l l e v e r a g e t h i s i n t e r e s t i n a u n i q u e a n d i n v o l v i n g w a y .

• T h i s p r o m o t i o n w i l l c r e a t e e x c i t e m e n t a n d o n - g o i n g i n t e r es t I n t h e b r a n d a s c o n s u m e r s s o l v e

i n d i v i d u a l c l u e s a n d m a k e p r o g r e s s t o w a r d s o l v i n g t h e m y s t e r y. -• This promotion will fu rther encourage team involvement by consumers making CAME L a

f r e q u e n t a n d e x c i t i n g t o p i c o f d i s c u s s i o n a m o n g t a r g e t y o u n g e r a d u l t s m o k e r s .

• I n a d d i t i o n t o e a c h p a c k i n s e r t b e i n g a c l u e t o t h e m y s t e r y , t h e s e i n s e r t s w i l l a l s o b e a f u n

a n d c h a l l e n g i n g e x e r c i s e e v e n f o r t h o s e w h o d o n o t w i s h t o b e c o m e f u l l y I n v o l v e d i n t h e

a d v e n t u r e a n d a t t e m p t t o s o l v e t h e m y s t e r y .



Program: CAMEL's Convenience Store Parking Lot Program

Obj . e c t i v e

T h e o b j e c t i v e o f t h i s p r o g r a m i s t o p r o v i d e C A M E L w i t h a u n i q u e a n d i m p a c t f u l a l t e r n a t i v e

m e d i a f o r m t h a t w i l l r e a c h t a r g e t y o u n g e r a d u l t s m o k e r s w h e r e t h e y t e n d t o p u r c h a s e t h e i r

c i g a r e t t e s m o s t o f t e n .

Description

• C A M E L w i l l d o m i n a t e t h e p a r k i n g l o t s a t c o n v e n i e n c e s t o r e s t h r o u g h t h e u s e o f a n i n n o v a t i v e

approach-- providing and maintaining parking space markings, curbs and direction arrows

t h a t i n c i u d e t h e b r a n d ' s l o g o , n a m e o r c i g a r e t t e f a c s i m i l e . See attachment for example

program .

Rationale/Benefits

• Y o u n g e r a d u l t s m o k e r s t e n d t o b u y t h e i r c i g a r e t t e s a t c o n v e n i e n c e s t o r e s .

• Th e CAMEL convenience store parking lot program is a unique way of providing CAMEL with

c o n t i n u o u s a d v e r t i s i n g p r e s e n c e a t a k e y r e t a i l o u t l e t t y p e . F u r t h e r , t h i s p r o g r a m c a n b e

t i e d i n e f f e c t i v e l y w i t h t h e n a t i o n a l P a c k A c t i o n P r o g r a m o n C A M E L .

• T h e s t o r e o w n e r w i l l a p p r e c i a t e C A M E L p r o v i d i n g a s e r v i c e t h a t h e w o u l d o t h e r w i s e h a v e t o

p a y f o r ( i . e . , r e l i n i n g t h e p a r k i n g l o t p e r i o d i c a i i y ) .



Program : CAMEL/MAGNA Instant Winner In-12ack Skill Game

Objective _

T h e o b j e c t i v e o f t h i s p r o g r a m i s t o i n c r e a s e t h e a p p e a l a n d r e l e v a n c e o f C A M E L / M A G N A t h o u g h

t h e u s e o f a n i n - p a c k g a m e o f s k i l l t h a t w i l l p r o v i d e i n s t a n t w i n n e r s .

Description

• CAMEL/MAGNA wiii develop a skill-based ( approved b y th e BAT F ) game that would be

d e l i v e r e d v i a i n - p a c k i n s e r t s .

• T h e g a m e w o u l d I n v o l v e s u b j e c t s / t o p i c t h a t a r e o f i n t e r e s t t o y o u n g e r a d u l t s i n c l u d i n g t r i v i a ,

m u s i c a n d f a s h i o n .

• Th e game will be configu red such that a correct answer will enable the consumer to receive

an Instant reward In the form of a discount on his next purchase of th e product (e . g . , 2 5 0 o f f

a p a c k ) .

Rationaie/Benefits

• Y o u n g e r a d u l t s e n j o y g a m e s t h a t p r o v i d e i n s t a n t f e e d b a c k a s t o w h e t h e r t h e y h a v e w o n o r n o t .

D e v e l o p i n g a g a m e w h i c h p r o v i d e s i n s t a n t f e e d b a c k w i l l g a i n h i g h l e v e l s o f y o u n g e r a d u l t

smoker involv ement .

• P a c k i n s e r t s p r o v i d e s a n e f f e c t i v e w a y t o d e l i v e r t h i s g a m e t o t h e t a r g e t g i v e n t h e i r l o w

Involvement with oth er media forms .

• CAMEL/MAGNA are both positioned against younger adu lt smokers and thu s represent logical

b r a n d s t o f e a t u r e t h i s g a m e .

• T h e y o u n g e r a d u l t f o c u s t o t h e g a m e w i l l h e l p t o r e i n f o r c e t h e b r a n d s ' i m a g e s a n d y o u n g e r

a d u l t t a r g e t i n g i n t h e c o n s u m e r s ' m i n d s .

• U sing the winning g ame card to encourage fu rther product use can provide both v olume

s u p p o r t a n d b u s i n e s s b u i l d i n g s u p p o r t t o p a c k p u r c h a s e r s . I n a d d i t i o n , t h e w i n n i n g g a m e

t i c k e t m a y n o t h a v e t h e s a m e i m a g e a s a c o u p o n a n d t h u s m a y b e m o r e l i k e l y t o b e u s e d b y

t h i s t a r g e t g r o u p .



Proarar~n: CAMEL/SALEM Three-Pack Carton for Co nvenience Stores _

Objective

T h e o b j e c t i v e o f t h i s p r o g r a m i s t o d e v e l o p a n e w p a c k a g i n g c o n f i g u r a t i o n t h a t w i l l b e u s e d

e x c l u s i v e l y i n c o n v e n i e n c e s t o r e s t o t i e i n w i t h o n - g o i n g 3 - p a c k p r o m o t i o n s i n m a n y

c o n v e n i e n c e s t o r e s.=escription• C A M E L a n d S A L E M w i l l o f f e r a t h r e e p a c k c a r t o n c o n f i g u r a t i o n i n a d d i t i o n t o i t s s t a n d a r d 1 0

pack carton . T h e t h r e e p a c k c a r t o n w i l l b e u s e d i n c o n v e n i e n c e s t o r e s t o f a c i l i t a t e t h e

movement of these brands to competitive smokers whether with or without a promotion .

Rational e/Benefits

• C u r r e n t l y t h e r e i s a g r o w i n g t r e n d i n c o n v e n i e n c e s t o r e s t o o f f e r a t h r e e p a c k p u r c h a s e

d i s c o u n t t o s m o k e r s i n a n e f f o r t t o i n c r e a s e t h e p u r c h a s e q u a n t i t y o f t h e i r s h o p p e r s .

• D e v e l o p i n g a t h r e e p a c k c a r t o n w i l l e n a b l e C A M E L a n d S A L E M t o o p t i m i z e t h e b e n e f i t s o f t h i s

t r e n d b y o f f e r i n g a p r e - p a c k a g e d t h r e e p a c k c a r t o n . R J R p r o m o t i o n s c a n t h e n b e t i e d t o t h i s

o f f e r m a k i n g t h e d e l i v e r y o f a t h r e e p a c k p r o m o t i o n m o r e i m p a c t f u l b a s e d o n t h e c o m b i n e d

s a v i n g s f r o m t h e c o n v e n i e n c e s t o r e a n d t h e R J R i n c e n t i v e .



Proqra-m : Inner-City Black Targeted Brand

Objective

T h e o b j e c t i v e o f t h i s p r o g r a m i s t o d e v e l o p a n d I n t r o d u c e a d i s t i n c t i v e c i g a r e t t e b r a n d t a r g e t e d

at the inner-city Black smoker .

Descri tion

• T h i s b r a n d w i l l l e v e r a g e t h e B l a c k c o n s u m e r s ' d e s i r e t o u s e p r o d u c t s w h i c h :

- a r e d i s t i n c t i v e a n d a r e a s s o c i a t e d p r i m a r i l y w i t h B l a c k s , a n d

-are more "p otent" (e . g . , B l a c k s d r i n k m a l t l i q u o r r a t h e r t h a n b e e r ) .

• T h i s b r a n d w i l l i n c o r p o r a t e m a n y d i s t i n c t f e a t u r e s w h i c h w i l l a p p e a l t o t h e B l a c k s m o k e r .

-Product

D e s c r i t p i o n

- m e n t h o l w i t h s t r o n g t o b a c c o t a s t e

- f u l l f l a v o r

-85mm soft pack

- c o r k t i p p i n g

-larger circumference

- s h o r t e r f i l t e r

R a t i o n a l e

-Black smokers primarily smoke cork tipp ed full flavor 85mm menthol cigarettes .

- T h e l a r g e r c i r c u m f e r e n c e a n d s h o r t e r f i l t e r w i l l p r o v i d e a d i s t i n c t i v e l o o k a n d f e e l . I t

w i l l a l s o a n d p r o v i d e s u p p o r t t o t h e m o r e " p o t e n t " d e l i v e r y b e n e f i t .

-Packaging

Descri 'on

-10 cigarettes p er pack .

- T h e c i g a r e t t e s w i l l b e p l a c e d i n t h e p a c k a g e w i t h t h e f i l t e r e n d d o w n a n d t h e t o b a c c o e n d

up .

- T h e p a c k a g i n g w i l l h a v e a n i n n e r c i t y l o o k t o i t - - p o s s i b l y a g r a f f i t i l o o k ( s e e

a t t a c h m e n t f o r a p o t e n t i a l p a c k a g e d e s i g n ) .

R a t i o n a l e

- B l a c k s s m o k e f e w e r c i g a r e t t e s p e r d a y a n d h a v e l e s s m o n e y m a k i n g a 1 0 p a c k a n i d e a l

c o n f i g u r a t i o n .



- M a n y i n n e r - c i t y B l a c k s o p e n t h e i r p a c k s f r o m t h e b o t t o m t o k e e p t h e f i l t e r e n d f r o m _ _

g e t t i F i g d i r t y w h e n t h e y / o t h e r s r e m o v e a c i g a r e t t e . P l a c i n g t h e c i g a r e t t e s u p s i d e d o w n

i n t h e p a c k w i l l b e a u n i q u e f e a t u r e w h i c h w i l l d e m o n s t r a t e e m p a t h y t o w a r d t h e t a r g e t

a n d t h i s u n i q i T e b e h a v i o r.-T h e p a c k a g i n g m u s t b e s e e n a s m a k i n g t h e b r a n d p r i m a r i l y f o r B l a c k s t o i n c r e a s e i t s

acceptance among this group . A n i n n e r - c i t y l o o k w i l l h e l p t o m a k e t h i s d i s t i n c t i o n .

-Advertising

D e s c r i t p i o n

- A s w i t h t h e p a c k a g i n g , i n o r d e r t o b e a s r e l e v a n t a s p o s s i b l e , t h e a d v e r t i s i n g s h o u l d

r e l a t e t o t h e e n v i r o n m e n t a n d t h e i n t e r e s t s o f t h e i n n e r - c i t y B l a c k . It is recommended

t h a t t h e a d v e r t i s i n g u t i l i z e t h e p o p u l a r i t y o f " R a p " m u s i c a m o n g t h i s g r o u p t o c r e a t e

r e l e v a n t a n d a p p e a l i n g a d v e r t i s i n g . B o t h t h e v i s u a l s a s w e l l a s t h e c o p y s h o u l d r e f l e c t

t h e " R a p " t r e n d i n c l u d i n g c o p y w h i c h h a s t h e s t r o n g r h y m i n g s t y l e o f " R a p " m u s i c . S e e

t h e a t t a c h m e n t f o r a p o t e n t i a l a d v e r t i s i n g e x e c u t i o n.-- T h e c i g a r e t t e s s h o u l d b e r e f e r r e d t o i n t h e a d v e r t i s i n g a s t h e " b o l d s m o k e s " t o r e i n f o r c e

b o t h t h e s t r o n g e r d e l i v e r y o f t h e p r o d u c t a n d a l s o t h e s t a t e m e n t t h i s d i s t i n c t i v e b r a n d

m a k e s a b o u t i t s u s e r s .

- T h e b r a n d w i l l u t i l i z e o u t d o o r a d v e r t i s i n g e x c l u s i v e l y t o d e l i v e r i t s a d v e r t i s i n g ,

i n c l u d i n g m a n y u n i q u e p l a c e m e n t s t o d i s t i n g u i s h i t f r o m o t h e r b r a n d ( e . g . , p a i n t a d s o n

w a l l s o f b u i l d i n g s )

R a t i o n a l e

- I t i s i m p o r t a n t t h a t t h e b r a n d b e r e l e v a n t t o t h e i n n e r - c i t y B l a c k t a r g e t . " S t r e e t "

s y m b o l s a n d p o p u l a r B l a c k m u s i c , s u c h a s " R a p " , a r e t o k e y o p p o r t u n i t i e s t o m a k e t h e

b r a n d r e l e v a n t a n d a p p e a l i n g t o t h e t a r g e t .

. - B l a c k s a r e m o s t e f f e c t i v e l y r e a c h e d t h r o u g h o u t d o o r a d v e r t i s i n g d u e t o t h e i r l o w

i n v o l v e m e n t w i t h o t h e r m e d i a f o r m s .

D e s c r i p i o n

- T h e r e c o m m e n d e d n a m e t o s u p p o r t t h e p r o d u c t a n d a d v e r t i s i n g i m a g e o f t h e b r a n d i s

Fat Boys .

R a t i o n a l e

- F a t B o y s p r o v i d e s a t i e w i t h b o t h t h e l a r g e r c i r c u m f e r e n c e / s t r o n g e r d e l i v e r y o f t h e

p r o d u c t a n d t h e " R a p " m u s i c t h e m e o f t h e a d v e r t i s i n g .



-Other marketing orograms

D e s c r ' i t p i o n

- - T h e b r a n d w i l l s p o n s o r e v e n t s w i t h i n t h e i n n e r c i t y w h i c h a r e c o n s i s t e n t w i t h t h e

i n t e r e s t s a n d a c t i v i t i e s o f t h e t a r g e t i n c l u d i n g " R a p " m u s i c c o n c e r t s , a m a t e u r " R a p "

c o n t e s t s a n d g r a f f i t i a r t e x h i b i t i o n s .

R a t i o n a l e

- T h e s e a c t i v i t i e s w i l l i n c r e a s e a w a r e n e s s o f t h e b r a n d am o n g t h e t a r g e t a n d c r e a t e a n

a s s o c i a t i o n b e t w e e n t h e b r a n d a n d c u l t u r a l l y r e l e v a n t a c t i v i t i e s f o r t h e i n n e r - c i t y

Bl ack smoker.



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SMOKES



PRODUCTIONS INC. MOTION PICTURES, TELEVISION

A U G U S TTW E NTY-F I `JE1 9 7 2

. - ~

- - ' -

~Lt~~ ' ' ~-

l I x „ - + J i - l - l i . a r . t S ; Smith e'r< 4

c/o R. J. ':eynolds Tobacco Co .

Winston-Salem, North Carolina 271U2

Dear P1r. Smith,

We are about to -;o into production with the motion picture,r r _ Y U T 1 S H : ~ .r IZUN", a suspense, thriller, set in Los andeles .

We will be?in ore-nroduction shooting by the end of Septemberand production shootin~,mid-November .

At the present time we are setting our distribution withone of the three following major, vorld :oide distributors :

Twentir~th Century Fox ; :,'ational General ; or Cinerama .

The answer print will be delivered to the distributor on orbefore thet first of : , :ay, 1973 .

The r•lajor characters a ;id supporting oeoole in the scrintall smol:e . I sao' .:e to our press arent about a tie in withyour co,.ip,ny, and he "brilliantly su- ;ested" that we getin touch with Youn,q J z ?ubicu*t or J . :7alter Thomoson. Thatseems to me to be nonsense . The script and film in no way,puts ci : :Yarette smokinff down .

The main characters, Cand I would like for you to suggestwhich brands they should use) are :

SARA . . . (l eadinc; lady in jeopardy from the killers) verychic and .a "now" woman .

TED. ., .her lover, a younq,, successful business executive .

LT. G0. • 1 .~ Z, ,, a police of~:icer about 40 .

n,10 F~i :AL>~. F;IE . TMDS of SnP. A ' S . . . . one a divorcee, and theother a mother of five .

SGT. KIN_1isY . . .a slob of a policeman .

and then many s:nall parts and bits, men and women .

If there is any interest from your company, and I'm surethere must be, the film is better than any co7nercial thathas been run on Television or any rlacrazine, because the

audier:ce is totally unawpre of the soonsor invol_~~ ::ent, Z

would like to have from your company the su? ;ested brands



. .2-

for the peo,>le as listed above and the necessary cartonsof cicl~arettc,s to be used,

We would enter a contract, that unon delivery of the

answer print to the distributor, your com~any, :eynoldsTobacco, would pay to our production company, the sumof ~5U0,UUU .UUo If for any reason the film is notdistributed, than your comnany is out only the time inanswerind my letter, and a' few pacl~ades of cidarettes,I think this protects both of us .

I expect to hear from you very shortly,

QO

Robert r. Richards, rres,33u So . Barrincrton Ave,Suite = 1).0

RPR:sw Los tineles, Calif . 7Uu'+y



ROGERi i COWAN.INC.

PUBLIC RELATlONS

9661 WILSHIRE DOULEVARD

BEVERLY HiLLS . CALIFORNIA 9021 2

(213) 273•4581 TEi.EX 687•442

CAUi ADDRLbt ROCORA

pBVERLY HILLS. CALlfORNlA

May 4, 1981

M r . Gerald LongExecutive Vice President

R .J . Reynolds Tobacco CompanyWinston-Salem, North Carolina 2710 2

Dear Gerry :

I'm sorry we didn't get to see each other last week when

I was on my way back from Puerto Rico, but your secretarysaid you were out of town .

Now that we are a couple of days into our second year withR .J . Reynolds-, I wanted to recap some of our activitiesduring the past 12 months and give you some of our ideas

for the upcoming year.

Our primary objective for the year will remain the same :

to have smoking featured in a prominent way, especially

when it is tied favorably with celebrities .

We believe our first year produced some excellent resultsin many different areas to help accomplish this objective,and we plan to accelerate these activities in the upcoming

months . Briefly, these activities include :

--Placing products in important pictures andtelevision programs with popular stars . We

have contacted literally hundreds of films todetermine 1) if the film could offer us positiveexposure, 2) if the stars were people with whomwe would want the product associated, and 3) ifwe could work the products into the scripts .

Among the films that met our criteria in which

we were able to place products were :

"The Jazz Singer," with Neil Diamond .

"Backroads," with Sally Field .

"The Cannonball Run," with Burt Reynolds,Farrah Fawcett and Roger Moore .

"Only When I Laugh," with Marsha Mason .

(continued )

New York OQits : ! Fast 54eh Streee; New York. New Ymt 10022 (212) 06-7100 Gbls : ROCOPUB New York . New York1.ardeu. Qi~er s7 A~ Sbwt, J.eadsa pJX !!A. Eeslaed • 49y-0691 • TELSX aSt-2SS7t



Gerald Long -- 2

"Pen nie s Fro m Hea ven ," with Steve Mar tin .

"Blo wout," with John Tra vol ta .

"Rich and Famous," with Can dice Ber ge n a ndJacquel ine Bisset,

and many, many others . Since it often takes a yea r o rmore for a film to be rel ea sed, you will see man y

re sults of o ur wor k in this ar ea over the n ext few

months .

-- Writing an d placing favora ble stories about

cel eb rities smoking , subh as a r ece nt spot we

arr ang ed o n "Good Mor ning America" about Paul

Newman practicing lighting two cigarettes fora remake of "Now Voyager," and stories we placedabout Mikhail Baryshnikov smoking four packs ofciga re ttes a da y as part o f his routine .

--Arranging for celebrities to be photographed withthe products, such as a GQ layout we did with BillyDee Williams which included photos of him smoking .

This area also includes our work with fashion photo-gra pher s in New York an d L os Angel es to have stars

and models pose with cigarettes, as well as our

efforts in the area of etting photos of celebritieswhile they are smoking ?as with the photo of JackFord with a pack of Winstons at an exclusiveHo l l yw o o d p a rty) .

--Encouraging smoking on television is another are a,

and our work in this area ra nge s from our personalcontacts with celebrities encouraging them to smokeon the air, to supplying the green rooms of the

major TV talk shows (THE TONIGHT SHOW, JOHN DAVIDSON . ,

MERV GRIFFIN, MIKE DOUGLAS, HOUR MAGAZINE, etc .) withquan tities of the pro duct for their gue sts .

--Adding to our list of celebrities and entertainmentind ustry ex ecutives who smoke a nd sen din g them the

products on a reg ular ba sis .

As Ed Horrigan knows, Rogers &_Cowan is also very strong inEurope, and this might be another area in which we might beof help . The Cannes Film Festival, for example, will beheld soon, and we could get photos of celebrities withciga re ttes . We could also expand our work with foreignfilmmakers in various European capitals, if this would bemean ingful to RJR .

(continued)



Gerald Long -- 3

A new priority was add ed during the past few mon ths, an d

that is the Salem High Country Music Festival program .

Our kick-o ff con cer t in Atla nta was a successful e ven t,,

an d we have high hopes for this pro motion in other cities r-- -- -

ove r the ne xt few mon ths . Next week, Dick Taylo r o f ou ( /r

company is meeting with Sally MacKinnon, Larry Wassongand the concert promoter we retained, C . K . Spurl ock, to

map our plan s for future Sale m con certs . In this area,-we expect that our wor k will continue to involve :

-- Publicity (in a dva nce , to hel p sel l tickets an d to

establish Sale m in this fiel d ; cover ag e o f the actual

event, and follo w-up publicity on a local an d national

basis, ag ain to stre ng then the iden tification of

Sal em with countr y music) .

-- Acting as liaison betwee n the pro moters an d

Will iam Esty .

-- Coor dina ting the special pro motion s an d ad vertising

with the public relations .

--Helping to secure and promote talent .

-- Pla nning special events for press and lo cal

dign itar ies .

As a result of the Salem High Country Music Festival, . w e

were able to work with David Fishel, and we believe we . have

established a good working relationship with David and someof his staff .

In this vein, we bel ieve ther e a re existing RJR pro motiona l

events, perhaps the Winston racing programand More's EBONY :

Fashion Fair, in which our ser vices can be hel pful . Forexample, we have spoken with James Caan about the Winstonro de o pro gr am an d have intere st from him about using his

name and services as part of this already-successful promotionThese programs are an area we would like to discuss with youin more de tail so we might get mor e invol ved .

We brought RJR into the annual Lucille Ball BackgammonTournament this year, and we believe this special event wasa successful tie- in for Sa le m Ultr a . With celebritiescompeting in a chic tournament at an exclusive private clubfor the Salem Ultra Trophy with a name like Lucy with animplied endorsement of the product, we saw the necessary

(continued)



Gerald Long -- 4

Ingredien ts for a prestigious and mea ningful association

for RJR . Among the media coverage we were able togen era te just from this one event was :

--A national ly-syndicated six-minute spot on "The

World of People" on television .

--A 60-minute "Sunda y Show" on KNBC-TV in Lo s Angel es

which mentioned the product, showed the trophy and

-featured some o f the graphics we had prepare d .

--Stories and photos in ne wspapers like the LOS ANGELES

TIMES, BEVERLY HILLS PEOPLE and others which included

product identification a nd the na mes of someof the

top celebrities and society people invol ved in the

event .

Curren tly, we are looking toward having an event of this

scope and importance in New York where we could receive

meaningful press coverage linking a brand, and we should

have a recommendation for your approval in the near future .

The Lucille Ball Backgammon Tournament for 1982 is an eventwe might try to get for Salem Ultra again, and we will letyou know our recommend ation on this, as well .

:We were glad to open some n ew marketing_avenues to RJR during

the past 12 months, and we look forward to expanding these

activities in the upcoming yea r . With'the goals of gettingpositive exposure with celebrities and opinion-maker s on

television, in the movies and in print, and establishing

the Salem High Country Music Festivals as an important

force in the music area, we have the basics firmly established

for o ur public relations activities .

During the last few days, we have been able to ge t Zsa Zsa

Gabor and Harold Robbins to smoke during the taping of a

nationall y-syndicated MERV GRIFFIN SHOW which will air next

month . We are also evaluating the NEW YORK TIMES interviewwith Paul Stricht to see where we can work with you in thelucrative foreign market, since, as I mentioned, Rogers & Cowais very stron g in Europe . We also would like to work withyou in other a reas where our services can be beneficial,

and we belteve these opportunities exist .~

Our work has expanded over our original assignment, and thesecond year plans mean that our staff will be spending e ven

more time on this account . Therefore, I would like to reques

(continued)



Gerald Long -- 5

that you approve an incre ase in our annual fee to $150,000

to compensate for o ur rising costs and the time we de vote

to RJR . It may also be necessary to ask for a special feein the event we are assigned to one o r more e xtra time-

consuming projects, but the activities I have outlined

above would be covered by the an nual re tainer .

In the meanwhile, I would be gl ad to discuss any of these

current projects with you in more detail, and we lookf'orward to a l ong and mutually-beneficial a ssociation .

Warren Cowan

President

WC/l f



ROGERS 8 COWAN. INC .

PUBLIC RELATIONS

9665 Vc7LSHIRE BOULEVARD

BEVERLY HILLS, CALIFORNIA 90212

(213) 273•4581 TELEX 687•442

CABLE ADDRESS ROCOPUB

BEVERLY HILLS, CALIFORNIA

August 26, 1981

CONFIDENTIAL

TO : Laurence M. Wasson~FROM: Warren'Cowan

\RE: Activity Report

We have been waiting for production to resume full-speedahead in Hollywood for more than a year, and, now, with

the writers, actors and directors all working and not threaten-ing to strike, we are pleased to report that Hollywood is backin the movie busine'ss .

With that in mind, we are making a concentrated effort to bevery selective about the kinds of productions in which we placethe products . Our goal is "pleasant situations," and we haveevaluated many scripts which do not meet our criteria for products .

There are some films we have approached which we believe couldbe very beneficial to our "subliminal" product campaign .

1 . t ' [ O T I O N ' P I C T U R E S

A) SHARKEY'S MACHINE -- Burt Reynolds stars in this Orion Pic-ture's contemporary action drama . As ou can see by the attached lstills from the film (attachments 1-3}y, we arranged for Burt 1Reynolds to enjoy Camels throughout the film . SHARKEY'S MACHINE ~~will be distributed`bywarner Brothers on December 18 .

B) WHITE DOG -- Paramount Pictures produced this film starringKristy McNichol, Paul Winfield and Burl Ives, which recently com-pleted production in Los Angel'es . Through our contact with award-winning director Samuel Fuller, we arranged for Paul Winfield to

enjoy one of our products in the film . This contemporary thrilleris scheduled-to be released in the winter of 1982 . (attachments 4-5)

C) BLOW OUT -- As previously sent to you under a separate cover . , ,

enclosed are copies of the clips from NEWSiTEEK and the LOS ANGELESHERALD EXAMINER showing examples of the print coverage we recgivedfrom placing our products in this film . John Travolta and NancyAllen star in this Brian De Palma thriller which is currently in

New York OEice: 1 2 2 E a s t 4 2 n d S t r e e t . New York. New York 10168 (212) 490-8 200 Cable: ROCOFUB New York . New York

L o n d o n O f f i c e : 27 Albemarle Street, London WIX 3 FA . England • 499•0 691 • TELEX 8S1•2SS71



Page Three -- Activity Report

August 26, 1981

II . TELEVISION

Although there are various problems raised in placing productsin television that do not occur in motion pictures, we havebeen successful in placing our products in one Movie-Of-The-Weekfor television and one mini-series .

A) WINDS OF WAR is a period piece epic currently being filmedin Europe and Los Angeles . We have arran,ed for the FranklinDelano Roosevelt character to smoke Came non-filters in variousscenes . Among the many stars in this mini-series are RobertMitchum, Ali HacGraw and Polly Bergen .

B) SKOKIE -- Danny Kaye stars in this moving television movie

based on the true account of the attempted march by the AmericanNazi party . in Skokie, I],linois .*We were able to arrange for oneof the co-stars, John Rubinstein, . to enjoy our product in twodifferent scenes in this production . SKOKIE is currently scheduledto air on CBS in October .

C) We are continuing to approach talk show guests to enjoy ourproduct while they are on TV . This is a`n area that is on-going

and is receiving full attention .

III . BROADWAY

We are making a concentrated effort to have our products placedand enjoyed in favorable settings in Broadway productions . Inaddition to this effort, we have included many of New York's topproducers and celebrities in our monthly mailing .

IV. PRINT NXDIA

From the beginning of our relationship with you, we have attempted,

and been successful on various occasions, to plant items and photos

in relation to our product . We are currently preparing a specialstory on the "10 Most Romantic Motion Picture Scenes" complete with

photographs, many involving our product . We hope to have severalclips by our next report to show the success of this effort .

V . MISCELLANEOUS

Our product mailing to celebrities is continuing and expanding ona regular basis . We recently completed a special mailing to femalecelebrities inviting them to try the new More Light 100's . Some ofthe actresses responded that they enjoyed the new product and lookforward to receiving More Lights on a regular basis .



Page Four -- Activity Report

August 26, 1981

We are also continuing our contacts with top photographers and

providing them with product, so that when the proper situation

arises, our product can be included in photo sessions .

There are many other areas that we are exploring, as well . Due

to the necessity of confidentiality of this project, we are doing

this very quietly, on a one-on-one basis .



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.

_ •- , . • .. . • . '. _ : .. . ,• :_ . . -. . . ."- .., .:L . •: • •i.• J •

-1••'•I :

The ?IBC caanot in my opiaion, provlde the vehicie •for such research:as conceived as a public relations -gesture and (however undefiled;

Scieatific Advisory Board and its grants may be) it has fuac-- t tioned as a. public relations operatioaYoreover its organization; •'

W t .: ' ot allow the breadth ofoes norsn;ainl in its present•

..•cer y.,

..

". . . .• :li.

3 - ,•,research - caacer,• emphysema, cardiovascular •disorders,i etc. - -•y. : :. I suggest that;. ::essential to the protection of the tobacco• iaduetr

the new research' eftort. ive enlist the cooperation "ot the Surgeon.

- ' `^ Geaeral, the Public "Sealth Service, "the !laericaa Caacer 'Society, the ;•American Heart Aasoctation; American Yedical'Association and any aad.--

dical or ecientifia' ms. . s es or, all other responsibleealth agencTheobacco aad healthih .-n oquesssociations concerned rith

-wwsm4•aA1ae94Q167s • _

ez=vrti OU4J{+1YirCWHYYVW% r ^rrw^^^^^___. - r • . .

iiaanced sutononous,--selt perpetuating, 'aad unhontrolied save- that • r

F i,: . elatia otthe rots eftorts be coniined to the siagle prob

tobacco' to humaa health, -. ' =' -"' _ '^... . , • . c> .• . . . ^ , , + ;• s ,: ` : ; ;' ,' f .^ . : • .:,`. ?; . . :s+5 N• f. •s " , • .. . C.•

. . , ...iR

•. • .. . . • •'•',.• ._ ' . . ' ,. .. ' : .

'would2 euggestYree theibllitc yept its respoahus to.• iadustry to take a much more aggressive posture"to neet -attack. ' It'

articular Sree the industrg to attack the Surgeon Goneral' auld in pro•• ., 4j, _Heport itselt by pointing out 'itA gaps aIntloaissioas, •its reliance on

'•..w ;-statistics, its lack of clinical evideace,- etc.; etc: •:'True ve might:^contem-orsen .our situation in litigation,= but that 1 rrould°• risk in ^

of. the greater boaef ita to be derived troa going on •the. : . fensive..•'• My record ot advice in this area,-may welk- Justifythe ° ^ • ,'^

r ^ charge, of laconsistency, j but let' me 'say-• that so long as the industry: ,'3. -"does not. assume its research .responsibility my long-hold • position .:

.- ; vouldAremaia unchanged -and • I' Would , oppose • either :outright attacks on

the • Surgeoa General's Report or,: the 'givihg of •assuratce, to ' the^ -Smokiag public not supported bif'•reeearch evideacef.• ' • "`', '^^ • ^;.; ^`^

.-•ì ^:• 3 A

;/! •i . . .,..: r. . .' ::: . ::i-.•';.. !•.j•b': :. :7,-'' }•'.. Ii- •f? ; ,.• ,: r•,,.'{•{y !.f..• • a..i. t4^^. .

^%'There is hoWever the,.problem of what to.do ,until ahe •doator;coaes ;. :', urgs' the i âi ¢ ; this leads me : to ;tbe second'.of -t2ie two' measurea would

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, 'R? k' .:-,a. _.; .r }^_ •'.:~;';' .,.i'k tH ^ ' '^ r i 3•*+r +y ' ^ 3-? Jt?!.^ ^^>Y••;T' : ': '^ s i t° n ^ ^• ;Z ' d.. ^

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Surêoî

. al b" ':r '

General'.a Report will;.• ot . aourse, not^ô!f attacks

' ,^ .;,y^ ^ • it...wlibss a donators`^t:• r. ^.icar harsher .:ilong;:the2 ,•^-Veuberger; •the. Americaa' Cancer Society; et •sl' L 'will imsediately ;j

y ^ gress 3ir' slI sorts ot' restrictive and represBiv® prograns:: ^.,'^{•J- M_ i. . w •• .. .lf, • • ' ...f . .• •

_ .. . : .+w j••.j^ , . ,. ., + . ... • ,•

.f. 'i; ^ . ••tit,w x• '.':; i^ • as '•! •t: .' . :a, .. ^}1•- . o'Y• ^ • •. •' . . -•. ^ 4, .:lS:• !' . ,•,:.

`' `th ' •young. ' • .

.a) . Public education • directed par ticularly , atj • r.'r ,. • . ' . .. .y • . . .r"fH !• 1.• .::•:•,=-t Ti^ 7 •.• 1S+ • ' •,+Ae. _ ^

^41,Y• ..l',. '. .. . • . .,.•, - • • }_ ....7 , ' • , ^ . ♦

i • . • v -,: ..:. •- ; :..•a _ _ - - : , • . . : •,:". , . ` . ,, _ _.c:' .. - ' . C ''-„ v

.'b) ' laich haraher.pTC' rules• in respect of. cigarette -adver=;; ' :•= •.i

I CJ

iain.

. ..7

r :; g, s.:vith'-restrictioa ^ of 't.be' •scope' and •coatrol •.oZ, -content• ithereoi: ^:'•qne' aight anticipate ' rules seeking ' to ' preveat- the.use of -:"glamour ' • : %' ^

aituattons", endorsements isicluding those ot: athleteo; •: prominent,entertainmeat tigures,* *ete.,; aad• quite. likely an ettort to.. bar-'tobacco

:, ,, 7 fr r

t ^• •aJdvertising from -televisioa and-radio. . • '''^:^: .-:. - , ; . : ;

_ :;. :;.

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^ '- .

c) "Content . labeling or cautions.ry legeads.'._ r '•' •." _ ' s ^•^^ +•' ^ '' ,. +-- .•.. t. & ' -A:'

. -t . - i '.=. . • • -'•,' . f.'.: i .••:.:''..: . !.•,' ._^°^ ^ , ' ..~^ ••ir: ./ ._^ J y

M. to' be given'power• of -preliminary. anjunction in ,'' •

ect ot cigarette advertising. :. ^ ` : ` - ' ± - ; •• - _ . . . . ;f ^ ^ ^ -, •. .• . 1..J i• :••• ^ ' .s '.♦ -

. !, .• . .

. . .. i • ' • ' ' .:.I•

>...•. , • •.

.

• ^ e) a,epressive taxation. : _ , ': ^•;' _ • ^ - ` _.



, ;, .. . • ... . . . .. -

t these threats which will stri3e not merelp at the hederal. ;.. : , noe ,,at 'the state level as well, the Zbbacco Institute is available

; but it can be effective only if the 'industry abandons its timarousapproach to the Institute as a. functioning trade association. Itshould be noted that current activities in the Institute indicate,

1•.lndeed; that that. attitude is beginning to change and it is to be• s. • hoped that our present'dangers may further that progress.rFS•T. . . . ' . .

. . . .i ::.r: , j M. .4 .

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o outline the.possible defensive and offeneive programs the. - Institute might engage in to aeet the dangers I have prophesied is

far beyond the scope of this no te. 'I must confees •.that . I have here tore, rather opposed the idea of attemPt ng to make: forward Plaas

Y •. ,'.

y > before the Surgeon Genera.l * s Report is issued, but I. am beginning to •believe that perhaps a session of -company presidents to consider the ;..

''possibilities of such pre-plaaning'might:be deioirable.} .

V..«f. •.,, _,•s.... . •.. :.• .:.:: •• •.• •. . . -•..•:I:•.:: "' ,';:

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Zb- accomplish anything effective, ••the Institute needs the leadership-:^of: a strong tobacco figure e.g. Albert Clay, Paul Hahn etc. a

ra e as9ocation staf f-including experienced andrespected lobbyists and, lastly; .such adornments of public figures

ta.•.. . • . .as appearance and occasion warrant :,.

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y . . posture • •^ he' uestion i ediatel arisee, hotf would etich aggressiveaffect litigation? With one eaceptioa tGreen. V. ' dwricaa Zbbacco•those - actions which have - -gone to judgment - were von . by •the"defendants

^«• the. defense of assumption of risk. The', issuance of the Surgeon,.

General• a:,Breport. will, in my opiaion, insure the success of,.that

h ;= defense as to causes .of action .arising . in the futura : if - the' andusr= ; . : caa steel itself to issuing a''warni .= ...I have 'no vis arre3-. . . . .

ea ere , but wou sugges . e.industry mght•'eerve itself" = ^ f Y'_oa saveral fronts it it' vo3untarily adopted 'a package -legend euch 'as. ;z

etoessive . use of..this product.,say be•.-injurJous, to health';of : ' ti'•.,.: .^saeptible persons',' and :would embody •such• a•. le$end in. pici • i r "ts

r a e t^ =' ^si l . a . sugg sadvertising: This coatrove ion • indiaeds so; : ahoching = that I irould rather rot try* to' aaticipate the' argusehts

•. .3+°t =.t - .

1: r,!.+o^gaiast=iAt in this note but reserve si y oiense o ; " -.=1 s ^1

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N 3 lt to sesess : ths 'effect of • the Beport on;causea of <s^ '^ .arising • prior to ita "-issuance: : • Logically,, It •wonld,'be :argued

the 8 eport does no more than to collate oeOre-eafsting kaowled •:.':.:-"•

;h

. : , : knoWledge as available. to. the - buyer °• as the seller: But ,logic might ;3^ ^•i^ a the minds of a jury y3eld to' the emo.tional reaction that if y:„ ,

r"-D•; this knovledge'was available to .the aeller it vas up to him; having N= ;^ +rF he se4ns to do 'so, to make the product: aafe.'--:AJury.*.,aight, .wee

uc tea no , operate on. the theory of comparative neg .igence..True the buyer was negligent in eaoking a product. he .3cnev, was

d b h e nngeroue;^. ut he was iulled by t e seller and h eeller's •.negligewass the greater in failing to.make. his product safe. , . ^

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. • ; . • : J' . ••: • ••'''•^ =^+•. ,:; :3^ ...•. _ ^

J^ 11 one can Bay is that the Report •iill in all. probabilitygreatiycomplicate . the= • litigation problem : _ . . • '. . . . ; -^-- =,• ^^

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-.. I ow at long ' last I coae back to : the* Hattelle report and tbe• (3rif =itb• :. filter. If Dr. Griffith is no aore than- on. the trail of effective



• f .

.

. • . .. ° , • • •. .. ! -. .

• •• - . . , '

^The reasons for the •pleasure of smoking• must be iouad "partly in the relief of anxiety that ci arette

ao

- • . i'`• Con9taatl

8 smol ing brings

i,,- ^ ^ , y, and in,such a very short time.•^^ f ^ ^: • ` • ^ • '

. .;- ^ .. ..• ^^ . ; ^ • •. ; ^ •

± `

• • • , . . . •„..., ^

` • . "This sedative = or soothing effect.' - of cigarette • _ ` _ - ' •' ~ • ': ;.. aaoking and of nicotiae is hoaover very difierent fromthe .

traaQuillizing• effect as it Was defiaed b & ptu rmaco2o . .gists^ af t th di. : er. e scovery of the . 8auwolIia alkaloids •• Tranquillizers

hl y: .patients and, as •euch, ..are.largelyused in psychiatry; nicotiae -;

, is certainl devoid f f,; y . o suc e. . • :•; • .i - Y. .1f

/ .

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' ' ` ''^;^:; +^ • . . . "Our iaveati¢atioai definiteiv-.shnvs that h,+i, Irs;.a :::' •'. • c"a '• °' dus $tilPOfig •gllcalA4dQawA9f4nw4we1

• '

... : .

° a.nd that nicotine may be considered (ita! i •••• cardiovascular ff '. . e ects•not being-contemplated here) as aore !beneficialI. r e '.- o l ss .-•,.,noaious - than the nex tranquillizere, ..fromsome . v importantpointe of . view.. ,. : } , .

.. . . .r^.^-..:ery. .

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! a, 'P/a .. .v.: . , - '.. • . .'t •.a• . - • .. . + a • : • .. • ..^ - !. S .4 :.

s , 1; .r •'F r :• % ' . . _ ,•

• ; , r , ; . Q . . . ...The so-cal3ed * benef ic ial: effects of n : . -. ..icotine_ arey ••^, .. r. - • of,°'-' .^'

two kinds - , j . _ ^ . , ,^ . , / .• • - •^,.• • - ., r- • .a• _it+s -•, ♦ ...=,..a.:• .y«•,{-•

• ; • . • •.fa.' .^ ' • •' ', . : _' 'i?k ^• ♦ - _ !;. i • :' " •• ,7

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L. -• :.t*_r J•. .r • 't : • •`•`^ • .3'-1..• +.h - •r'• ^ r• •c n:s. ..• ,... .rf .. •. •f•N.._41•

.^ '_.•:l.. : • . • ,

"

^ - . .: ..Îl^ _ .ar .: i . >+•• . . '1 :' :._r .k._-+ -

l. Enhancing : effect on thepittiitary-adrenal responee 'ta'a ;^L••.: _ toBressi - •' - •:_/ .:. ' ••ii • ,'!. .•i.r ^• ' - ' . : t.. ^Sr:• . . .. . •'...

'' >• ' •. v,_^ . wr .

l• .. _ .. ... . . . . .. • r • ,^ +-.. . , ^

of body Weight: .-y ' = ^, • :, -.^,^ t`, , `^: ,

"2. RegulationT. ^ . _ ' ..

4:••. • +S r .;j;• l +r..t• n

w l

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yij¢,•-, , : _,'• . . . .. ' . - ^ . ^ - : . a w:; -.•: ">a sGi . 1:. a.1...- d _.. * .,..},+

- h . t i Y: _: , • ' •'These .eltects do not aeesa to be - ehared w

hic] r dn the contrary ehoows 'undesirable' aide actiQnsBt h atnare,> ^^

^^ '• ^^not givea'by nicotine, ,t i.è:'--iL nearly.:.conplete blockade of " ' ` j' '•"oriadic 'aaet th r id ttvit eo ac i s reflecting mosf•^=. ^ , • -probably

'^ energl=bl k d^4^ ^ . oc a e of t2Le :hypothalado-pituitary :system•.which f ^ • ^ :^^} .V normally controlls : . r . , ^ astll' the endocrine aativities.T• .t!+ • •-St- : . •. - .. , . :, .• .•.,•1.-- '•-s= r•.

b '.^. • • -. \ y :Ss.. f,'.- • . . ,. ^ . . ... a q = • •..: . ^ . .. • ', . _ • '

,^ z 7ì

,' + ': a•' . =j s' %.i : T r .. /...' Y,_

7^reover - 'nicotine In . " : ^ ' . ^. ,;_ :., ^ ^ ;tt :^::;._;•., ^; , : addic tive .•. . - ^•,:'^ , : . - . . . ; : , ^ . '• .::. l : .. • • : - L -

. . . • ^: '•^^ /.i5 : .{y}- 't ' • .r. f! i a:: a ', . _. ^ : + _: : .' a• ..,? Z

,., . • .. '• -i. ."p. •••• •..?.t '•- =• f . !i } , •!._. . . J+ +.: •

wefo bre, 'thea; in=the: business ot 'sell_ ing•aidat ne, L. ari, addictivedrug_::,, eliective ia' the release •of • etress aechanisme. But cigarettea^ •_..•:

. .^ ^: '•

sasume the 8urgeoit General • s Committee tb •. say -.despite the '•=benef iceat ef fect o! aicotine; 'have, certain unattractiv e,, . eide• eflecte•• r Y t: n +=• , ! •.

..i_. JaT: , '•.+.•=

•.:•s (._..' :' : •- .iC• • •• +r'•-; : +•,"'' •'•:'•' i : •... .t±,R

.i. ,

_ x •+ 1) They cause aancer:' -: :.._: ; -_. : .. . ,.• • _.,.. , _ ..,, .. ._, ,

^ : - .. , s• f. : • '. . .:.•: :: :....; ;.

^ ' - 2) They ' contribut t +.. e to cer ain cardiovascular disorders•. . . ..

'- iL .. ..i. . . . .. ;!.

.. : ... :+ .: ::.: . : :_. . . .•

_ ,•3) They, may ell be truly causative in emph,ysema, etc• etc• . .• . . . . .. .. . _ _- .

-1;. ,We c lloage those cha.rges and ve have aseumed our • blla n ^ to '• o tio ^ . ^

determine their, truth or falsity by creati the 1bb

are g y effective in the management of overactive ps chotic

aaev. cco BosearchFoundation • In the aeaatiae -(ee say) here. is our triple, or quadruplor quintvple filte c b. r, apa le of resoving. whatever • conetituent of smoYe-. • _, , . . . .



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. _

. ' . .-- : -....•-y..._.__{s :L,.-.. • . . :• • _ :i- :. . .',^ ! '. +

$ave: are-an obligation to mike our kiowledge avai2ableto our 'r''•" '; :..-^ ^ competitors? . I! thA..GrilSith alaims stand np aad whea we • have per-:. .

then I. suggest #.ber e• is, strong moral obligation on us ' to make -our• .:-" . , ;-•

_':knowledoe , public;.and'- Sree. • And • think of . the kudos. - :• I -rPillt .. .. . .,vastly surprised -if such disclosure markedly adds -to our ^competitore•

, s ;-•knoaledbe but'. that '•is beside the point. ; ' ^ ; L ^ . -^, ^^:; ;::. ;:° ,;•- fr o r • A1.:• ' ' : •!• 1 ' • '

7 •. . r - •• •iJ: • v.t •t'> •.. ° ,^ tw,{ ). ;t•:• t .a ,ati,..: i-•_.. : •^r.1.•..^^ :. ; ., •

.- ' •• . . _ 4 . , i- • ^ : ' '.,'e t ^i '=veaihe point i0:' Oa this now erraia{ p ti.ag strong otteri ' ^-

..s t ith t t t t .t' t ith h mi

rere us es os eege w ec on•

. ^_: •-r . . :

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PHILIP MORRIS U . S .A. INTEROFFICE CORRESPONDENCE120 PARK AVENUE. NEW YOR. K . N .Y. 10017

To: Les ZukeFrom: Karen Daragan

Subject: Ninja Weekend

Date: April24, 1991

A t t a c h e d i s t h e a g e n d a f o r " N i n j a W e e k e n d , " a s w e l l a s s o m e b a c k g r o u n d i n f o r m a t i o n o n e a c h o f t h e 3 1

s e m i n a r a t t e n d e e s.'urson- Marsteller is beginning on Friday night at 7 p .m . with an informal dinner/ice-breaker at the Sh eraton

Park Avenue .

The issues seminar will begin at 8 : 3 0 a .m . Saturd ay morning, and will run until 12 :30 p . m . The ninjas will

then breakout into groups of 5 or less for th eir media worksho ps . Burson has arranged for a professional media trainer

and a senior B-M ac cou nt person to run each of th e seven groups . T h e d a y ' s a c t i v i t i e s s h o u l d e n d a t 5 : 3 0 p . m . M o s t

o f t h e g u e s t s a r e s t a y i n g o n a n e x t r a n i g h t a t t h e h o t e l , b u t n o a c t i v i t i e s a r e p l a n n e d f o r t h e m .

Draft copy fo r the issue briefs and recommended message points will follow u nder separate cover .

###

cc: J Nelson

T. W a l l s

D. Laufer

J . Ramsay

D. Davies

M. Malik

M. Paluszek

J . Mc Daniel

T. B o r e l l i

L. P r e s s l

D. Crawford

S. Banks

L. F r o e l i c h

IV :Wt A '



n J ° n C O N F I D E N T I A

I . THE IMPORTANCE OF YOUNGER ADULTS

Within five years, younger adults (18-24) will drop from 18% to 15% of the

total adult population (18+) . They will continue to decline in numbers until

at least 1995, as the crest of the Baby Bubble pushes farther past age 25 .

This shift in the population will cause smokers aged 18-24 to fall from 16% to

14% of all smokers by 1988 . Even 13% would not be surprising, since smokingincidence has been declining more rapidly among younger adults than any other

age group in recent years (see Appendix A) .

Why, then, are younger adult smokers important to RJR?

1 . VOLUME

Younger adults are the only source of replacement smokers . Repeatedgovernment studies (Appendix B) have shown that :

• Less than one-third of smokers (31%) start after age 18 .

• Only 5% of smokers start after age 24 .

Thus, today's younger adult smoking behavior will largely determine the

trend of Industry volume over the next several decades . If younger adultsturn away from smoking, th e Industry must decline, just as a population

which does not give birth will eventually dwindle . In such an environ-

ment, a positive RJR sales trend would require disproportionate share

gains and/or steep price increases (which could depress volume) .

2 . MARKET SHARE -- THE "FIRST BRAND" ADVANTAGE

A . ANNUAL GAINS FROM THE "NEW" MARKET

"New" 18-year-old smokers in the 1983 market were worth 1 .6 points of

total smokers .* By capturing half of these, Marlboro gained .8 points

of total smokers without needing to attract a single brand switcher .

This gain was the equivalent of a successful two-style new brand

introduction, with no cannibalization and no development/introductory

costs .

As a company, Philip Morris held more than 60% of these 18-year-olds

in 1983 versus RJR's 15-20%, yielding PM a .5 point in-going SOM

advantage due only to "new" smokers .

* This assumes 18-year-olds are 10% of the 18-24 group rather than a "fairshare" of 14% because of population decline and the fact that some smokers

start after age 18 .

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C . . MOMENTUM FROM AGING (Cont . )

An analysis of Tracker shares from 1979-83 (see Appendix D) shows

that, apart from short term fluctuations :

• Incoming 18-year-olds and the movement of its existing franchiseinto older age brackets can explain all of Marlboro's smoker share

gains in the past four years . Among smokers 25+, all of Marlboro's

gains are attributable to this aging movement -- switching appears

to have had no net long term effect .

Even if Marlboro makes no further gains among younger adults in the

next five years, it is likely to gain at least 3 points of smoker

share due to the aging movement of its present smokers (assuming

its switchirig is no worse than in 1980-83) . If Marlboro continues

to gain share among younger adults at its present rate, its overall

smoker share could easily increase by a total of 5 points, from 19%

in 1983 to 24% by 1988 .

• Newport's growth can also be entirely explained by its younger

adult strength and aging . Over the next five years, Newport is

likely to gain .8 points of total smokers without any additional

growth among younger adults . If its younger adult gains• also

continue, it could exceed a 4% total smoker share by 1988, a gain

of about 1 .5 points over 1983 .

These examples demonstrate the momentum younger adults give a brand .

Although a competitor could slow this momentum by attracting

switchers, the "first brand" would hold the high ground of brand

loyalty in such a battle .

D . LONG-TERM DIVIDENDS -- RATE PER DAY

Government and RJR studies epanning several decades have showa that

smokers increase their consumption as they age . The chart below shows

that smokers 25+ consumed 22% more than smokers 18-24 on average

during 1980-82 .

RATE PER DAY (1980-82 AVG . )

AGE

% Increase

Cigta. Vs. 18-24

Index

vs . Total

18-24 26 .2 85

25-34 30 .6 + 17% 99

35-49 34 .1 + 30% 110

50+ 31 . 2 + 19% 101

Total 25+ 32 .0 + 22% 103

TOTAL 31 .0 + 18% 100

Source : Incidence/Rate Report, Year 198 2 .

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D .• LONG-TERM DIVIDENDS -- RATE PER DAY (Cont . )

Thus, the 18-year-olds who were worth 1 .6 points of smoker share in

1983 were worth only 1 .4 points of market share, since their consump=

tion was below average (index of 85) . However, by ages 35-49 they

will be worth 1 .8 points of SOM -- a 30% dividend on their original

market share value . This consumption increase is the difference

between having smokers 35-49 and having smokers who will age to 35-49 .

E . EXTENDED BRAND LIFE CYCLE

The combination of brand loyalty, aging, and increasing usage tend to

provide "life insurance" for brands which skew, or have skewed,

younger adult .

For example, we have seen that Marlboro relies heavily on 18-year-olds

for its share growth . But if from 1984 on no 18 ear-olds eversmoked Marlboro a ain, a in could let Marlboro hol its market shareor ive more years . The left side of the table below shows

Marlboro's current smoker share by age group and what those shares

would be in 1988 if Marlboro got no more 18-year-olds and merely moved

smokers to older age brackets . On the right side of the table, the

smoker shares are translated to market share, by factoring in rate per

day . The bottom line shows it is possible Marlboro could evencontinue to grow without 18-year-olds, but much more slowly than in

the past .

SMOKER SHARE MARKET SHARE VALUE

1983 1988TRACKER PROJECTION

1983

EST .

1988

PROJECTION

8-24 41 2 < 17 6 7 4. - . .

25-34 24 .7 28 .4 7 . 1 8 .0

35-49 13.5 18 .4 4 .5 8 .4

50 + 6 .3 7 . 7 2 . 2 2 .5

TOTAL 18.9 <-7 .8 *20 .5 21 .3

*Jan.-Nov., 1983 MSA.

Thus, even if a brand falls from favor among younger adults, the

younger adults it attracted in earlier years and their increasing

consumption can carry the brand's market share for years, signifi-

cantly extending its overall life cycle .



3 . SWITCHING OPPORTUNITY

Younger adults are more likely to switch brands than any other smoker

group, i . e ., they are a concentrated switching target . Their very high

propensity to also switch styles within their brand suggests the latent

potential for even*higher rates of brand switching .

PROBABILITY OF SWITCHING IN 6 MO .

BRAND FAMILY STYLE IN BRAND% IDEX X IDEX

18-24 16 .6% 126 21 .5 % 17 8

25-34 13 .4 102 12.8 10 6

35-49 12 . 1 9 2 10 .4 86

50 + 13 .2 10 0 1 1 . 1 92

TOTAL 13 .2 10 0 12.1 10 0

Source : NFO, 1981-1983 (first half).

Younger adult brand switchers (who then remain loyal) can also contribute

the major portion of their aging benefits, including increased usage, to

their second brand . Thus, switching by smokers 18- 24 can yield• a

significant part, but not all, of the share advantages associated with a

"first brand" . Older switchers confer less, or none, of these benefits .



THE IMPORTANCE OF YOUNGER ADULTS

KEY POINTS

Though decreasing in number, younger adult smokers are a key market for RJR

because improved RJR performance among younger adults could contribute more to

long term profitability and positive share momentum than could be achieved

from gains in other age groups .

1 . Younger adults are the only source of replacement smokers .

More than a share point of "new" 18-year-olds enter the market every year .

These

value

offer a significant growth opportunity and also shrink the share

of smokers already in the market .

2 . A "first brand" strategy has significant share advantages .

• Optimum ability to capitalize on the influx of new smokers . This gave

PM a .5 point in-going advantage over RJR in 1983 .

•"First brands" compete from the high ground . They do not need

switching gains to grow and can afford some switching losses .

Brands which rely on older smokers must achieve net switching gains to

break even on share .

• Strength among younger adults will ultimately yield growth in older age

brackets . Aging has been contributing all of Marlboro's and Newport'ssmoker share gains among smokers 25+ .

• Aging of loyal younger adults creates disproportionately large gains in

market share, due to their increasing consumption . This does not

accrue from gains among older smokers .

• Younger adult strength, past or present, will tend to extend the

lifecycle of a brand .

3 . Younger adults offer the most concentrated switching opportunity .

• Smokers 18-24 are more likely to switch .

• Switchers aged 18-24 can provide more share advantage from aging/

increasing consumption than switchers 25+ .



Updated 2/24/88 CONFIDENTIAL INFORMAT

ATTORNEY WORK PRODUCT

DEFINITIONS FOR THE

BROWN & WILLIAMSON SUBJECTIVE"CODING TAXONOMY

A ADVERTISING & MARKETING: Documents relating to the promoand sale of cigarettes to the public, but not covered by

subcategories below.

AA ADVERTISING AND MARKETING RESEARCH: Documents

concerning information fromthe marketplace or dire

from consumers (current or potential) relating toadvertising and promoting cigarettes. This researchinvestigate, for example, consumers' reactions to

proposed ads or promotions, to new ideas for cigareor to actual cigarettes, etc. The research provides•

data that will be used by the company to decide howwll try to mrket its cigarettes to the public.

AAAAdvertising Testing: Documnts concerning stu

or surveys conducted to determne the effective

of-various advertisemnts and various form of

advertising.

AAAA Brand Name Research: Documents concerni

this method of testing consumers' reactioto and interpretation of current or propo

cigarette names.

AAAB Communications Testing: Documents discuthis mthod of testing print advertising

which interviews of resoQndents may be

conducted on a personal basis in a shoppmall. Each respondent is shown only th

,,ure) and then asked ad (a forced exposseries of questions to determne if the

communicating itsintended message clearand correctly.

AAAC Concept Testing: Documents discussing a

method of testing ideas or concepts from

which future advertising wll be create

this test, ideas are presented to the

respondents in the formof an ad, but i

the idea, not the adyertising execution,

which is being tested. This test is usu

done for a new product idea or forestablished brand line extension. Burke

-1-

0.D



Kapuler is one of several companies who have

supplied this test toBrown &Wlliamson.

AAAD Recall Testing: Documents discussing studiesto determine which ads people remember

seeing, howmuch of the ads they read, what

they learned fromthe ads and the interest

level attained for the products advertised.

An example of recall testing is the "tip-in

test", in which magazines wth a test ad

insert are placed in the respondents' homes.

Atelephone interviewis conducted 24-48

hours after the respondents have read the ad

and respondents are asked about their

recollection of various aspects of the ad.

Mrket Facts is one of several suppliers of

the tip-in test for Brown &Wlliamson.

AAAE Eye Movement Data: Documents concerning a

test which studies the path a viewer's eye

follows as he scans an ad and the amount of

time spent looking ateach part of the ad.

This test is.used to evaluate elements of

advertising and/or packaging. Both product

and user imagery are also usually measured i

this test. Responsive documents include ads

wth percentages written by various sections

of the ad (e.g., the picture or the title).

Perception Research, Inc. is one of several

of Brown &Wlliamsones suppliers of thistest.

AAAF Focus Groups: Documents concerning

discussion groups of consumers (usually 8-10

people) led by a trained moderator used to

explore consumers' reactions to concepts or

actual advertisements including their copy,

imagery, social dissonance and overall

acceptability. In these sessions, which

usually last two hours, advertising topic

areas are outlined in advance, but specific

questions and discussion floware left t6th

discretion of the moderator.

AAAG One-on-One Interviews:;.Documents discussing

unstructured personal Interviews (usuallylasting about one hour) with speciallytrained moderators who',conduct an in-depth

investigation into theconsumer's

involvement, reaction to and interest in

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advertising visuals and/or copy. Methodsimilar to category AAAF, "Focus Groups."

AAAH Packing Research: Documents concerningresearch investigating consumers reactions

to proposed or current cigarette packs and

various color and design schemes.

AAAI PortfolioTest: Documents concerning a

method of testing print advertising in which

a respondent is interviewed in a central

location (e.g., a shopping mall) and asked to

reviewa portfolio containing 20

advertisements (test ads and competing ads)

for various product categories, including

cigarettes, to determne the test ads impac

(i.e., the respondent's awareness of the ador brand noting) and to determne whether the

ad is communicating its intended message.

Market Facts and Burke are among the

companies who have supplied this test for

Brown & Williamson.

AAAJ Telephone Survey: Documents discussing a

method of testing in which surveyors

interviewconsumers by telephone to gather

information on smoking habits, brands

purchased, etc. This formof testing

includes the purchase 'panel, which measures

single and repeat purchase or usage of brandover time. Burke, Admar, and Market Facts

are among Brown &Wlliamsons suppliers of

this test. Consumers may be chosen by one o

the two followng methods:

AAAJA Name Bank: A group of names gathered

from consumers who in the past haveresponded to company promotions in

exchange for cigarette carton panelsor other proofsof purchase. These

consumers are regarded as loyal brandusers and are used as a sampling pool

in occasional marketing surveys.

AAAJB Random Sample: Names that are

randomy selected to be included in

market researchtesting.

-3-



AAB Marketplace Studies: Documents concerning studiesof smokers behavior and views regarding

cigarettes.

AABA Brand Study: Documents concerning Attitude,

Awareness and Usage (AAU) studies restricted

to specific markets, aspecific point in time

and a single brand. These studies are most

often used for the test marketing of a newor

repositioned brand. The purpose of this tes

is to gather and report information

concerning the actual persons who smoke this

brand.

AABB Corporate Study: Documents concerning a

national Atitude, Awareness and Usage Study

in which a national survey of smokers is

conducted on a quarterly basis to monitor

smoking behavior, track brand performance and

evaluate advertising performance of all Brow

&Wlliamson and competitive brands. Admar

Research Co. is one of several companies who

supply this test to Brown &Wlliamson.

AABC Image Studv: Documents concerning an in-

depth study of a particular brand. The

purpose of this test is to gather and report

information on consumers perception of a

product and their reasons for trial, use or

rejection followng an in-home interview

Acceptors, rejecters and aware non-triers of

the brand are described by cigarette use,

personality type and demographics. John

Morton Co. is one of several companies who

supply this test to Brown &Wlliamson.

AABD Market Perception Study: Documents

concerning a mapping, telephone/mail surveyof smokers that establishes relationships

(simlarities as wellas differences) among

brands of cigarettes as perceived by smokersand the criteria by which smokers perceivethe brands to be simlar or different (e.g.,

taste, tar level, etc.)

AABE Seamentation Study: Documents concerning a

comprehensive study of the smoker market thaclassifies smokers into segments based on th

factors which motivate them to choose or

-4-



reject a given brand of cigarettes. These

segments are describedinterms of

demographics, socioeconomic and psychographi

structure of current brand franchises. The

purpose ofthis studyis to identifytarget

groupsorthe marketing of established

brands or newproducts and to gain insight

for developing marketing strategies to

research these target groups. This study

involves interviews wthrandomyselected

smokers and may be supplied to Brown &

Williamson by Norsearch, McCann Erickson or

John Morton Co. among"others.

AABF Single Unit MarketinQModel ISUMMI:

Documents concerninga self-admnisteredma

questionnaire used to identifysmokers

beliefs and desires and also to simulate the

impact of product changes andbrand

repositionings. Eric"Marder Associates is

one companywhichhassuppliedthis test for

Brown & Williamson.

AABG Switching Study: Documents concerning a

quantitative study which monitors smokingincidence and smoker mobility among startersrestarters, swtchers; loyals and quitters t

determine demographics, key attitudes ofsmokers, and brand shares. Data is tabulatequarterly, semi-annually and annually.Market Facts, Inc. isone companywhich

admnisters the National BrandSwtcher

Study.

AABH Demographics: Documents concerning a

statistical studyof the population

emphasizing density distribution and vital

statistics.

AAC Product Testing Documentsconcerninga testingo

proposed modifiedor alreadymarketedcigarettes

byconsumers for flavor, preference or other

consumer reactions.

AACABlind Product Testina: Atest in which a

products identityismasked and not reveale

tothe consumer. The consumers reactions t

the unidentified product are then measured.

This type of testing includes Consumer

Product Testing(CPT, whichmeasures

-5-



AAD Opinion Trackina: Documents concerning thepublics view(bothsmokersand non-smokers) of

cigarette companies or smoking in general. Look

for polls by Yankelovich, Skelly &White; Gallup &

Robinson (G&R); Roper; or Nowland Organization,among others.

AAE Industry Performance: Documents concerning a study

providing a summary of sales and share for each

companys brands and total industry performance.

This information is provided by each manufacturer

directly to J. Mxwell, the,supplier, on a

quarterly basis.

AB ADVERTISING &MARKETING STRATEGY:; Documents concerning

overall plans to make smokers aware of the companys

cigarettes and to persuade smokers to try and then

continue to smoke those cigarettes.

ABA Brainstorming Memos: Documents concerning concept

or ideas for advertising or marketing proposed by

outside agencies or Brown &Wlliamson marketing o

advertising personnel which were never implemented

into Brown &Wlliamsons actual advertising and

marketing strategy.

ABB Five-Year Plan: Documents concerning a marketing

and advertising plan discussing goals for Brown &Williamson's current and proposed cigarettes for afive-year period.

ABC Long-Range Plan: Documents'concerning a marketing

and advertising plan discussing long termgoals of

one or more Brown &Wlliamsson brands that is not

specifically designated as a five-year plan.

ABD Promotions: Documents concerning promotions, whic

are any activity outside of ,normal brand

advertising used to increase consumer brand

awareness and brand loyalty (e.g., Kool &balloon,

prize giveaways, and contests, items purchased at

discount by sending in proof's of purchase, or othe

promotions not covered in categories below)

ABDA Promotions, Cigarette Sampling: Documentsrelating to the distribution of samples of

cigarettes to the gene=al public. Responsiv



documents include guidelines, ordinances and

regulations regarding sampling. Do not

include documents concerning personal giftsof cigarettes. Documents concerning the

industrys Code of Cgarette Sampling should

be coded to category AHC not here.

ABDB Promotions, Coupons: Documents relating to

the use of coupons which are especially

prevalent in RALEIGH and BELAIR material.

ABDC Promotions, Endorsements: Documents relatingto celebrity endorsements or movie exposure

of product.

ABDDPromotions, Retailers: Documents relating tovarious point-of-purchase (POP) items and

displays including Buy-One-Get-One-Free

(B1G1F) and simlar offers. Also code

documents relating to negotiations between

Brown &Wlliamson andretailers concerning

preferential retail space and advertising fo

Brown & Williamson products.

ABDE Promotions, Event Sponsorships: Documents

relating to brand sponsorships of various

events (e.g., RALEIGH 'Rodeo, RALEIGH truck

pull, KOOLJazz Festival, spring break

activities, etc.).

ABDF Promotions, Sweepstakes: Documents relatingto various sweepstakes, contests or giveaways(e.g., yacht, island and KOOL Rolls Royce).

ABE Target Audience: Documents concerning the portionof the smoker market toward which advertising and

marketing strategies are aimed. Identification of

the target audience may involve a study of thesmokers of a particular Brown & Williamson brand.Documents to be coded to the categories below

include reports and discussions of reports such as

the National Brand Switching Studies, Black Smo erStudies, Hispanic Smoker Studies and SmokerPersonality Studies. Code documents to theappropriate subcategory.

ABEA Male: Documents concerning advertising,

market strategies, or market research (i.e.,

studies of brand awareness, message recall,or usage behavior) focusing on male smokers.

-8-



ABEB Female: Documents concerning advertising,

market strategies, or;market research (i.e.,studies of brand awareness, message recall,

or usage behavior) focusing on female

smokers.

ABEC Health Conscious: Docunments concerning

advertising, market strategies, or market

research (i.e., studies of brand awareness,

message recall, or usage behavior) focusing

on "health conscious" smokers.

ABED Hispanic: Documents concerning advertising,market strategies, or market research (i.e.,

studies of brand awareness, message recall,or usage behavior) focusing on Hspanic

smokers.

ABEE Black: Documents concerning advertising,

market strategies, ormarket research (i.e.,

studies of brand awareness, message recall,

or usage behavior) fogusing on black smokers

ABEF Military: Documents concerning advertising,


studies of brand awareness, message recall,or usage behavior) focusing on military

personnel who smoke.

ABEG Youth: Documents concerning advertising,


studies of brand awareness, message recall,or usage behavior) focusing on smokers 18

years of age or younger.

ABEHStarters: Documents concerning advertising,



or usage behavior) focusing on persons who

have not yet started smoking.

ABEI Quitters: Documents Concerning advertising



or usage behavior) focusing on persons

attempting to quit smoking.

ABEJ Psychographic Sec;ment: Documents concerning


-9-





on specific psychological profiles (e.g.,hedonists, worriers, practicals, copers, New

Autonomous, Gamesmen, Scramblers,

Traditionalists, American Dreamers and

Aimless).

ABEK KOOL: Documents concerning advertising,



or usage behavior) focusing on KOOL smokers.

ABEL RALEIGH: Documents concerning advertising,


studies of brand awareness, message recall,or usage behavior) focusing on RALEIGH

smokers.

ABEM VICEROY: Documents concerning advertising,



or usage behavior) focusing on VICEROY

smokers.

ABEN BARCLAY: Documents concerning advertising,



or usage behavior) focusing on BARCLAYsmokers.

ABEO Other BROWN & WILLIAMSON Products: Document

concerning advertising, market strategies, o

market research (i.e.,"studies of brand

awareness, message recall, or usage behavior)focusing on smokers of:other Brown &

Williamson products (e.c. BELAIR, GENERIC,

etc•)

ABEP "Low Tar": Documents concerning advertising


studies of brand awareness, message recall,or usage behavior) focusing on smokers of,

"low tar•" cigarettes.

ABEQ Menthol/Nonmenthol: Documents concerning




on smokers of menthol or nonmenthol

cigarettes.



AC VICEROY ADVERTISING & MARKETING: Documents that relate

to the advertising and marketing of VICEROYcigarettes.

ACA Malor VICEROY Advertising Themes: Documents

concerning themes of advertising campaigns.

Examples are the "dentists" campaign, the specialfilter campaign, the "All the Taste, All the Time"campaign, the tension release campaign and the autoracing campaign.

ACB Historical Surveys of VICEROY Advertising:

Documents which wthin themselves trace the history

of VICEROY advertising.

AD KOOL ADVERTISING & MARKETING: Documents that relate to

the advertising and marketing of kOOLcigarettes.

ADA MAJOR KOOL ADVERTISING THEMES: Documents


Examples are the throat comfort theme, the Wllie

the penguin campaigns, "Swtch from'Hots' to

KOOLS," "Come Up to KOOL," "Problem-Solution/Slice

of Lfe," "Menthol Mst," "Lady Be Kool", the

waterfalls theme and the biker campaign.

ADB Historical Surveys of KOOL Advertising: Documentswhich within themselves trace the history of KOOLadvertising.

AE RALEIGH ADVERTISING & MARKETING: Documents that relate

to the advertising and marketing of RALEIGHcigarettes.

AEA Maior RALEIGH Advertising Themes: Documents

concerning themes of advertising campaigns.Examples are the "Slice of Americana" theme and the"Milder Moment" campaign. Coupons are an integralpart of RALEIGH advertising.:

AEB Historical Surveys of RALEIGH Advertisina:

Documents which within themselves trace the historof RALEIGH advertising.

AF BARCLAY ADVERTISING & MARKETING: Documents that relate

to the advertising and marketing of BARCLAYcigarettes.

AFA Maior BARCLAY Advertising Themes: Documents


AFB Historical Surveys of BARCLAY Advertising:

Documents which wthin themselves trace the history

of BARCLAY advertising.



AG OTHER BRAND SPECIFIC ADVERTISING & MARKETING: Do not

code documents to this general heading.

AGAOher B&WBrands: Documentsthat relate to the

advertising and marketing of another Brown &

Williamson brand (e.a., BELAIR, TRAMPS, WINGS).

AGB Other Companies' Brands: Documents that relate tothe advertising and marketing of other companies'cigarettes.

AGC BAT Brands: Documents that relate to the

advertising and marketing of BATcigarettes.

ADVERTISING & MARKETING POLICY: Documents relating to

guidelines on cigarette advertising and marketing.

AHA B&WPolicy: Documents regarding guidelines on

cigarette advertising and marketing followed,endorsed or rejected by Brown & Williamson. An

example of a voluntary guideline endorsed by Brown& Williamson is the company's agreement to printtar and nicotine figures on cigarette packs.

AHB Cigarette Advertisina Code: Documents so entitledor related to the voluntary guidelines set by the

tobacco industry regarding cigarette advertising.Responsive documents may include documents

regarding Meyner, who was heavily involved in theadmnistration of the Code. Look for the acronym

CAC.

AHC Code of Cigarette Samplina: 'Documents so entitledor related to the guidelines;set by the tobacco

industry regarding sampling of cigarettes.

AI MARKETING/ADVERTISING BUDGET AND EXPENDITURES:

Documents discussing proposed or actual budgets and/orexpenditures for marketing and advertising.

AJ PROJECT TRUTH/PROJECT A/PROJECT B_s Documents relating

to any of these public issue campaigns involving thetobacco companies and TI. "Project A," developed in1970, consisted of three TV spots on smoking and heaiththat would be substituted for some regular TVcommercials for which time had already been contracted.The spots were rejected by the network. Ruder & Finnproposed "Project B," which called for TV and printadvertising that mght position tobacco beside liquor in

terms of public tolerance. In the fall of 1970, TI

distributed two public service TV spots, produced by TedBates, to counteract the anti-smoking spot

announcements. This activity was called "Project Truth."



TRUE AND NATIONAL ENQUIRER ARTICLES: Documents

discussing the True and National'Enauirer articles.

Joseph Field, a public relations agent for Brown &

Wlliamson, arranged for StanleyFrank to write a

smoking and health article entitled, "To Smoke Or Not To

Smoke-That Is Still The Question." The article was

published in the January 1968 issue of True. Tderock,

TIs public relations agency, arranged to run an

advertisement promoting the article. Tderock also

purchased and distributed reprints of the article.

Stanley Frank later wrote a simlar article entitled,

"Cgarette Cancer Link is Bunk" for the National

Enguirer under the pen name Charles Golden. John

Blalock was one of the Brown &Williamson employees

involved.

AL BROWN &WLLIAMSON v. JACOBSEN: Documents concerning a

libel suit filed by Brown &Wlliamson when Walter

Jacobsen, a CBSreporter, used acontroversial "illicit

pleasure campaign" that the Ted Bates agency had

proposed to Brown &Williamson to accuse Brown & ^

Wlliamson of adopting an advertising strategy to

encourage children to smoke.

AM BARCLAY CONTROVERSY: Documents relating to the

controversy concerning advertising of BARCLAYcigarette

relating to the 1 mg. tar ratingclaims made in its

advertising. The cigarettes utilized an Actron filter,

the mechanics of which were questioned by other

cigarette companies, particularly Reynolds and Philip

Morris.

CINEMA ADVERTISING: Documents regarding Brown &

Wlliamsons promotion of cigarettes in theaters.

Include documents concerning the,"SnowWhite

Controversy," a complaint filed with the FTC in August1983 by Action for Children's Advertising, Inc., apublic interest group protesting the showing of a KOOLadvertisement prior to the Saturday matinee screening o"SnowWhite and the Seven Dwarfs" on July 16, 1983 at theater in Newton, Massachusetts. Brown &Wlliamson

contended that it was never the company's policy to shocigarette ads along with "G" movies and that theoccurrence was a mistake by the theater owner. Also

include documents about Brown &Williamson's decision 1984 to discontinue its program of cinema advertising.



B AWARENESS OF POTENTIAL HEALTH HAZARDSi Documents relating t

awareness of smoking and health issues and perceptionof the

alleged risks of smoking not covered by categories below

BA SMOKER AWARENESS (HEALTH & COMPONENT DELIVERY):

Documents reflecting smokers awareness as shown by

survey results, newsclips, letters to the editor or

health education courses. Documents showing thatsmokers awareness caused changes in smoking behavior

should also be coded to the appropriate subcategory

below EF, "Human Smoking Behavior."

BAA EFFECTS OF SGRs, GOVT & MEDICAL PUBLICATIONS ON

AWARENESS: Documents discussing the effects of

Surgeon Generals reports and government and

medical publications upon public awareness ofsmoking and health issues. Include documents

discussing subjects such aseffects of anti-smokin

campaigns on quitting, starting and moderation.

BB BROWN & WILLIAMSON AWARENESS & ACTION: Documents

discussing the smoking and health controversy or smokin

and health research. Examples are public documents,

literature reviews, unpublished reports, abstracts or

report summaries that are not prepared by or on behalf

of Brown & Williamson or BAT. =

BBA Analysis & Commentary (e.g., re Scientific

Literature): Documents including any analysis orcommentary by or on behalf of Brown & Williamson BAT on non-Brown & Williamson work, research orpublications. Documents tobe coded to thiscategory include collections of abstracts preparedby or on behalf of Brown &'Williamson or BAT.

BBB Recommendations (e.g., re Research or CompanyActions): Documents relati;ng to any

recommendations made by Brown & Williamson or BAT

personnel or consultants regarding major goals foBrown & Williamson or industry sponsored resear(phand/or actions concerned with smoking and health

issues.

BBC Attendance at Scientific Meetinas or Research iConferences: Documents indicating attendance byBrown & Williamson or BAT personnel at public orindustry scientific meetings or research

conferences. Includes people not employed byeither company attending on behalf of Brown &Williamson or BAT. Do not°code document indicatinattendance of Brown & Williamson employees at BAT

or Brown & Williamson research conferences. Codethose documents to category CCB.



BC BROWN & WILLIAMSON POSITION PAPERS: Documents by Brown&

Wlliamson stating Brown &Wlliamsons positionregarding the smoking and health 6ontroversy.. Documents

prepared by Brown &Wlliamson for the use of their

employees, and that discuss smoking and health issues,

should be coded to this heading. Do not code documents

by TI to this category, but to category HC

BCA BAT Position Papers: Documents by BAT stating BAT

or its affiliated companies'position regarding the

smoking and health controversy. Documents preparedby BATfor the use of its employees, and that

discuss smoking and health issues, should be codedto this category.

BROWN & WILLIAMSON CORPORATE: Documents relating to Brown &Wlliamson and other BATcompanies as corporate entities..

Include annual reports and tax information.

CA DOCUMENT RETENTION/DESTRUCTION: Documents concerning

any policy to retain and/or destroy company files after

a specified period of time.

CB HISTORY & ORGANIZATIONAL STRUCTURE: Documents relatingto the history and development ofBrown &Wlliamson and

other BATcompanies and documentspertaining to the

internal structure of Brown &Wlliamson and its

affiliated organizations, including departmental and

organizational charts. Responsive documents include

documents concerning Brown & Williamson's organizationa

relationship wth other BATconipanies (e.g., BATUS,

Imperial).

CC BROWN & WILLIAMSON/BAT RELATIONSHIP: Documents

concerning Brown &Wlliamsons relationship wth the

British American Tobacco Company.= Include documents

mentioning any research sharing, division of research

responsibilities, or communications concerning marketin

or advertising between Brown & Williamson and BAT. Also

include documents discussing legal considerations of

such activities.

CCA INTERBAT: Documents discussing, concerning, or+

generated by INTERBAT, a computer network between

Brown & Wlliamson and BAT which allowed these

companies to share research results.

CCB Brown & Wlliamson/BAT Meetings: Documents

discussing or concerning meetings between or among

-15-



Brown & Williamson and BAT research or scientificpersonnel. Do not code documents indicating

attendance by Brown & Williamson or BAT personnelmeetings at public or industryresearchor

scientific conferences. Code those documents tocategory BBC.

CD LIBRARY: Documents relating to the decision to

establishand maintain a collection of documents dealing

wththe healthconsequences of cigarette smoking.

Includes references to computer libraries as well.

Documents mentioning INTERBAT should be coded to

category CCA above.

CE BOARD OF DIRECTORS' AND OTHER COMMITTEE MEETINGS:

Documents relating to meetings of the Board of Drectorand other committees. Responsive documents include

minutes and summaries of meetings.

CF SALES, PROFITS, PRICING &MARKET SHARE: Documents

relating to sales, profits generated, pricing and marke

share of one individual Brown &Wlliamson product of

all Brown & Williamson products.

CFAExcise Taxes: Documents discussing or concerning

the taxes that federal or state governments levyon

cigarette products.

D DISEASES & CONDITIONS: Documents concerning diseases and/or

conditions and the harmful and/or toxic effects allegedly

associated wthcigarette smoking. DO NOT CODE ANY DOCUMENT

TO THIS MAJOR HEADING. Documents d?.scussing research

concerning these diseases should alsobe coded to the

appropriate categoryE, "ResearchFocus," or categoryF,

"Research Techniques."

DA ADDICTION/DEPENDENCY/HABITUATION: Documents which

specifically mention the alleged"condition ofphysiological or psychological dependence, characterizeby unpleasant reactions upon withdrawal of the substancand tolerance to the substance, as identified bythe

need for increased doses of the substance to achieve thsame effects as had been achieved in the past by smalledoses. Documents often will discuss nicotine,especially in terms of maintaining "satisfactory doses"or satisfying a "physiological need." Keywords to

look for include dependence and habituation. Documents

concerning research concerning this condition shouldalso be coded to category ED, "Pharmacology."

-16-



DB EMPHYSEMA/BRONCHITIS/COPD: Documents which specificallydiscuss these non-cancerous chronic diseases of the

lungs, including asthma. Key words to look for includechronic obstructive pulmonary disease (COPD), chronic

obstructive lung disease (COLD), and chronic airways

obstruction (CAO).

DC RESPIRATORY FUNCTION & STRUCTURE (INCLUDING

CILIASTASIS). Documents discussing all influences on

the function or structure of the respiratory system

except those listed in other categories in this section.

Ciliastasis is paralysis or reduction of motion of the

cilia, which are mcroscopic hair-like projections in

the airways, resulting in a slowng of mucus flow Aso

look for muco-ciliary clearance or'mucus transport.

DD CANCER: Documents discussing cancer in general or

discussing the causes of cancer wthout reference to any

particular location. Key words which may pertain to

this category or its subcategories include mutagenicity,

carcinogen, tumorigenic, metaplasia, hyperplasia,

neoplasmand abnormal cells.

DDA: Lung Cancer: Documents speci'fically relating to

lung cancer. This category includes documentsdiscussing "bronchogenic carcinoma."

DDB: Laryngeal/Throat Cancer: Documents specificallyrelating to laryngeal or throat cancer.

DDC: Other Cancer: Documents relating to a specificformof cancer other than lung, laryngeal cr throat

.cancer (e.g., skin cancer).

DDD: Cellular Changes: Documents discussing changes

associated with exposure to various substances orpathogens and considered by some investigators tobe "pre-cancerous."

DDE: Mutacienesis: Documents discussing the occurrence

or induction of a permanent change in the genetic

material.

DE CARDIOVASCULAR: Documents regarding diseases of the

heart and circulatory or blood systems. Key words or

abbreviations to look for include CVD(cardiovascular

disease), CHD(coronary heart disease), coronary,

hypertension, atherosclerotic, vasoconstriction, and PVD(peripheral vascular disease).

-17-



DF PREGNANCY/FETAL: Documents relating to diseases and

conditions associated wth pregnancy or the newborn.

This category includes documents discussingteratogenicity (birth defects), lowbirth weight and

spontaneous abortion.

DG OTHER DISEASES OR UNSPECIFIED HEALTH CONSEOUENCES:

Documents associating.smoking wth diseases other than

addiction, cancer, emphysema, bronchitis, COPD

cardiovascular disease or fetal complications. This

cateaorvincludes documents suaaesting or contending

that smoking is/is not a cause of"death. Aso include

documents associating smoking wth chronic disease other

than those named above.

ERESEARCH FOCUS: Do not code anyheading. documents to this major

EA COMPONENTS RESEARCH: Documents discussing the

determination of the chemical nature of cigarette smoke,by identifying or quantifying specific components. This

category also includes biologicaltesting of individual

components or groups of components.

EAA Condensate/Fractionate: Documents regarding the

study of the particulate matter of cigarette smoke

collected on a Cambridge filter or in a "cold

trap." Thiscategory includes discussions of the

biological effects of the particulate phase in thiscategory, even if it has not been collected as

condensate. Some documents in this category

discuss the creation or testing of "fractions" of

the condensate, prepared by treating the condensate:_ .

wth a series of solvents. ither the whole smokecondensate or the fractions may also be tested forbiological activity, using mouse skin painting or

various in vitro tests, e.g., Ames test. Key

abbreviations to look for include CSC (cigarettesmoke condensate) and WSC (whole smoke condensate)

EAB Gas-phase: Documents discussing the chemical

analysis or biological testing of the non-particulate part of whole smoke or its components.Look for testing of that portion of smoke that has

passed through a Cambridge filter.

EB SMOKE MODIFICATION: Documents concerning the

modification of the chemcal or physical nature of

tobacco smoke. This category includes changes in level

of tar and/or nicotine, as well as other specific

-18-



compounds (e.g., B(a)P, nitrosamnes) by any method,

including changing tobacco blends. The measurement of

levels of components, wthout the objective of alteringthose levels, should be coded to the appropriate

category under EA "Components Research." Specific

smoke modification methods include:

EBA Design Variables: Documents discussing changes inany aspect of cigarette design (e.g., type of

wrapping paper, paper porosity, paper additives),except for those included in the other specific

subcategories.

EBB Filler Modification: Docume'hts concerning the

changes in the tobacco filler for the stated

purpose of modifying the chemcal nature orbiological activity of the smoke. Code documents

concerning changes in the "tobacco blend" to this

general category. Specific subcategories include:

EBBATobacco Substitutes: Documents describing

attempts to reduce tar and nicotine yields by

substituting non-tobacco filler materials fo

some percentage of tobacco in the cigarette.This category includes documents concerningtests for biological activity resulting from

these substitutions. $ey words andabbreviations to look for include Cytrel, NSM

(newsmoking material)°; BATFLAKE, andCelanese Smoking Product.

EBBB Tobacco Treatment: Code only those documentdiscussing techniques clearly described inthe document as being related to smokemodification. Substances applied to tobaccofor this purpose may include ozone, varioussolvents, sodium nitrate and other chemicaladditives, heat, etc. Also include documentwhich discuss smoke modification bydenitrification (i.e., the removal of

nitrates or other nitrogen-containing

compounds) or by incorporating "reconstituteleaf" (RL), "expanded tobacco" (ET), or"expanded stems" (ES) into cigarettes. Donot include documents discussing "TobaccoProcessing," which describe treatmentsdesigned to affect the "smoking quality" ofthe cigarette rather than the nature of the

smoke. "Tobacco Processing" documents shoulbe coded to category EG.

-19-



EBC Filtar Research: Code any documents which discussaspects of filter development and modification but

which are not included in the followng specificsubcategories to this main category. Donot

include discussions of the Cambridge filter used to

collect condensate or to separate the particulate

and gas phases of whole smoke. Those documents

should be coded to the appropriate category under

EA, "Components Research."

EBCA Filter Efficiency: Code documents whichdiscuss the effect of a filter on the smoke

yield (e.g., percent tar and/or nicotine

removed).

EBCB Selective Filtration: Code documentsdiscussing filters designed to reduce or

remove specific smoke components. Look for

the specific termselective filtration,

especiallyin connection wth components suc

as HCN(hydrogen cyanide), phenol, acrolein,

aldehydes, gas phase components, etc.

EBCC Ventilated/Air-Diluted Filter: Code }

documents discussing the dilution ofcigarette smoke by all;owing air to enter thesmoke through the filter either through smalventilation holes or by using highly porous

"tipping paper" to wap the filter.

EBCD Actron Filter: Code documents discussing thActron filter, a cel:ulose acetate filter

designed to create a whirling action in the

inhaled smoke, resulting in a full-flavored

delivery.

EBD Precursor Studies: Documents discussing attemptsto determine which substances in tobacco contributto the presence of certain compounds in smoke(e.g., B(a)P nitrosamnes,etc.). Code such

documents only if the relationship of a precursor

substance to a smoke component is directlyexpressed in the document.

EC ADDITIVES: Documents discussingthe various flavorings

humectants, casings, and other non-tobacco ingredients

in cigarettes. Be absolutely sure to capture any names

or designated numbers for these ingredients on the

"Substances" list. Documents which list the ingredient

-20-



used in a particular Brown &Wlliamson brand, in all

Brown &Wlliamson brands, or in all cigarettes shouid

be coded here.

ECAFlavor Research: Documents discussing the analysis

or modification of cigarette smoke flavor by adding

specific flavoring ingredients to cigarettes. Mos

documents wll fall into one of the followng

subcategories:

ECAA Flavor Analysis: Code documents specificallydiscussing only the chemical nature, chemicapurity, or physical stability of substances

under consideration as flavoring ingredients

ECAB Flavor Synthesis: DocRuments discussingmethods and techniques for the laboratory

synthesis (creation in the laboratory) of

chemcals being considered as potential

flavoring ingredients.

ECAC Taste Panel: Documents discussing the

formation of, attitudes of, or reactions of

groups of "test smokers" who evaluate the;

flavor of smoke fromeither marketed or

experimental cigarettes. This may include

determnation of the influence on smoke

flavor of changes in tobacco filler blend or

flavor additives.

ECB Testina Proaram: Do not code to this topic but to

the more specific subcategories below

ECBA Additive Guidance Panel: Documents

discussing the role of this BAT or Brown &Williamson committee in the approval of theintroduction of non-tobacco ingredients totheir cigarettes.

ECBB Flavoring Testing Program: Documents

indicating whether Brown & Williamson or

others used tests or other guarantees ofsafety to determine whether flavor additivesused in cigarettes contribute to causation o

diseases associated with smoking. Be sure talso code for the appropriate category underD, "Diseases and Conditions" and F, "Researc

Technique."

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ECBC other Testing Program Documents indicatingwhether Brown & Williamson or others used'

tests or other guarantees of safetytodetermne whether non-tobacco ingredients

other than flavorings'(e•a., humectants,

casings, etc.) contribute to the causation of

diseases associated wth smoking. Be sure to

also code for the appropriate categoryunder

D "Dseases and Conditions" and F, "Research

Technique."

ECC HHS/HEWDisclosures: Documents discussing

negotiations, meetings, or discussions relating to

the disclosure of non-tobacc.o ingredients to the

HHS or HEW

ED PHARMACOLOGY: Documents discussing experiments which

measure cardiovascular or behavior responses to smoke o

its components. These responsesinclude skintemperature and/or blood pressure changes, analgesia,aggression, and learning enhancenient. Do not include inthis categorystudies using potential flavorings or

additives. Code those documents°to subcategory ECB,

"Testing Program."

EDA Reinforcement: Code all doc;uments which discussanimal studies in which the"animal gives a specificbehavioral response (e.a., "'works") in order to

receive a test substance (e.g., nicotine). Aso,code documents concerning self-administration of atest substance.

EDB Tolerance: Code all documents discussing the

alleged tendency of smokers to increase their useof cigarettes in order to satisfyincreasing

demands for nicotine. Special care should be used

to code all documents discussing the absence ofthis effect to this categoryalso. Include animal

studies in which tolerance is evidenced by adiminished behavioral effect with repeated exposur

to a smoke component, usually nicotine.

EDC Wthdrawal: Code all documents which describe the

claimed physical symptoms which allegedly resultrrom abstinence from smoking. Include animal

studies which attempt to determine if deprivationof nicotine causes disruption in behavior.



EE "SAFER" CIGARETTE: Documents suggesting that Brown &Wlliamson, BAT or the other tobacco companies

conducted experiments or had theknowedge and

capability.to manufacture safer cigarettes, but did not

put such cigarettes on the market. Keyphrases or names

to look for include "lowCO," Go Gori, and Project RoG . = G

EEA Proiect EMN: Documents discussing BATs efforts to

develop a "less hazardous" cigarette in the late

1970s by"elimnating, modifying, or neutralizing"

certain components in cigarette smoke.

EEB BSeries/Janus: Documents discussing the series o

experiments, including Project Janus, performed by

the Battelle Institute for BAT. The experiments,

which were conducted in the late 1960s and the

early1970s, included inhalation studies and mous

skin painting. Documents discussing those researc

techniques should also be coded to appropriate

subcategories under FD "Animal Inhalation", or

FCB "Topical Application." '

EEC Palladium: Documents referencing Liggett's

development of a safer cigarette using palladiuma

a catalyst for tobacco treatment.'

EED Tobacco Working Group (TWG): Documents describing

the work in conjunction wth this group at the

National Cancer Institute to develop a "less

hazardous cigarette." Look for references to TWG,

the "Less Hazardous Cgarette" project, the "Lung

Cancer Task Force," the Smoking and Health Program

(SHP), or the NCI specifications.

EF HUMAN SMOKING BEHAVIOR: Documents discussing any aspec

of human smoking behavior or how"smoking affects human

behavior.

EFA Compensation, Titration, Modification of Smoking:

Documents discussing the theory that smokers altertheir smoking habits according to.the type ofcigarette being smoked. Look for all references t

compensation for reduced yields of components (mo

notably nicotine) by taking more puffs, deeperpuffs, holding breath, etc.; titration (i.e.,

smoking in a manner to maintain a "desirable" leveof nicotine in the body); or any other modificaf.ioof smoking habit or pattern:

-23-



EFAAStyle Swtching: Documents discussing a

smoker's swtch fromsmoking cigarettes in

one style to another style (e.a., lowtar'to

ultra lowtar, nonmenthol to menthol,nonfilter to filter, etc).

EFB Effect of Advertisina: Documents on the influenceor absence of influence of cigarette advertising on

smoking behavior (e.g., brand changes, initiation,

etc.). Pay special attention to documents

discussing the effects of advertising on young

people.

EFC Initiation: Documents discu5sing factors

influencing smokers to beginsmoking. Documents

containing information on the age of initiation and

reasons for starting (e.g., peer pressure, effectof advertising, etc.) shouldalso be coded here.

EFD Moderation: Documents concerning efforts by

smokers to "moderate" their habit, usually by

reducing the number of cigarettes smoked. Includes

documents discussing the possible effects of

moderation (e.g., on health) and advertising

documents seeking to encourage moderation.

EFE Motivation: Documents relating to what factors

influence smokers to continue smoking, such as

pleasure, avoidance of wthdrawal, relief of

stress, weight loss, etc.

EFF. Quitting: Documents concerning quitting. Includes

descriptions of the type of smoker who quits,

statistics on the number of smokers who quit,

reasons for quitting and methods for quitting.

EFGSmoker Psychology (e.g., Mood, Learnina,

Aggression, Atention): Documents describing

psychological influences of smoking, including

influences on mood (either beneficial fromsmoking

or negative from abstinence); learning (increasedor decreased information retention or learning

efficiency); aggression (e.g., claims that nicotinereduced aggression); and attention (especiallynegative influences on attention span bydeprivation from smoking).

EFHCognitive Dssonance: Documents concerning

smokers' rationalizations for continuing to smoke

despite knowedge of potential health hazards.

-24-



EG TOBACCO PROCESSING: Documents describing the breeding,

growng, cultivation, fertilization, harvesting, curing,

or preparation of tobacco for purposes of maintaining or

improvng smokeability and quality, rather than intended

modification of smoke. Include documents concerning

"reconstituted leaf" (RL), "expanded tobacco" (ET),

"expanded stems" (ES), etc., as long as no reference is

made to intentional smoke modification or health

effects. (See categoryEBBB) Include documents

discussing the economcs or processes of cigarette

manufacturing, cigarette packaging (as long as they do

not concern marketing), filter making machines,

cigarette making machines, etc.

EH QUALITY CONTROL: Documents discussing attempts to

monitor or maintain the overall quality of cigarettes.

Include documents discussing examnation of defects, as

well as the testing of tobacco orcigarettes fromone

year or batch in comparison to prevous years or

batches. Specific categories include:

EHALeaf Analvsis: Documents discussing chemcal or

physical analysis of tobacco leaf for overall

quality of smokeability. Documents will oftencontain lists of chemcal compounds in the leaf'

itself. Do not include documents concerning

"Precursor Sudies," as defined under category EBD

EHB T&N Trackina: Documents related to tracking levels

of tar and nicotine (T&N or levels of other

components in cigarettes marketed by Brown &

Wlliamson and other tobacco;companies. Code

documents discussing tracking done by and for Brown

& Williamson.

EHC TITL/FTC Tracking: Document5 concerning the

tracking of tar, nicotine, or other components'

levels in commercial cigarettes by the TobaccoInstitute Testing Laboratory (TITL) or the FTC.

EI PRODUCT DEVELOPMENT: Documents relating to the

development of newproducts or changes in an existing

product (e.g., the flavoring, cigarette construction or

packaging) to meet specified standards.

EIAEllis Patent: Documents that discuss or relate to

a patent obtained by Sr Charles Ellis of BATin

1964-66for a smoking devicethat used a flavor cap

containing nicotine enrichedtobacco that was

-25-



heated by burning tobacco on the outside of the

capsule. Aso include documents concerning the

amendment to the patent obtained wth Brown &

Wlliamsons Dr. I.W Hughes as a collaborator.

EIB Aerosol Cgarette: Documents"that discuss any

aspect of research or development of a cigarette-

like product by any other cigarette manufacturer

which would provide the smoker wth the pleasure of

cigarette smoking but which may or may not require

burning of tobacco to produce the aerosol.

EJ ENVIRONMENTAL TOBACCO SMOKE: Documents discussing the

presence of tobacco smoke in the air, especially

indoors. Look for studies in which cigarette smokecomponents (e.Q, nicotine, carbon monoxde, nitrogen

oxdes, particulate matter) are measured in air. Ifdocument discusses possible health effects in nonsmokersexposed to Environmental Tobacco 5moke (ETS), also codeto appropriate categories under D,' "Diseases andConditions." Key words to look for include passive

smoking, public smoking, sidestream smoke, ambient smoke

and second hand smoke.

EK CIGARS/SMOKELESS TOBACCO: Documents that discuss

cigars, cigar tobacco, "smoking" (pipe) tobacco, snuff,

"roll your own" tobacco or chewng tobacco. Most

notably, these include discussions of tobacco

fermentation. Look for references to "seedleaf"

tobacco.

EL PESTICIDES: Documents that discuss the presence ofpesticide or herbicide residues in tobacco or in smoke.Also include documents discussing the biological testingof pesticides or herbicides such as Penar.

EM SMOKING MACHINE DEVELOPMENT: Documents that discuss the

development or improvement of machines that simulate

human smoking behavior.

F RESEARCH TECHNIQUES: The subcategories belowshould be coded

only when the document includes discussions of or references

to biological testing. Code to the most specificsubcategories appearing in the document. Documents which

discuss biological testing but which do not give sufficient

information to be coded to specific subcategories belowshould be coded to this major heading.

-26-



_ FA EXVVO Lterally, "out of life." Documents

discussing techniques in which tissues or organs are

removed fromliving animals and exposed to test

substances. Examples include ciliastasis experiments in

which animal respiratory organs (e.g., trachea) are

exposed to a substance (e.g., cigarette smoke) and areexamned for changes in ciliary activity. One such tes

is the Rabbit Trachea Hyperplasia Test.

FB IN VITRO: Lterally, "in glass."KDocuments concerning

biological testing in a test tube or other laboratory

apparatus. Code documents which discuss in vitro tests

in general here. Specific subcategories include:

FBA Ames Test: Documents concerning a mutagenicity

test involving application of a substance to a

strain of bacteria (Salmonelfila). Key words to loo

for include Salmonella. S typhimurium

FBB NMFI (nitromethane fraction index): Documents

concerning a test developedto serve as a chemcal

indicator of the biological"activity of smoke

condensate. The nitromethane fraction (NMF) is th

subpart of smoke condensatewhich allegedly

contains most, if not all, of the claimed

carcinogenicpolycyclic aromatic hydrocarbons. Th

nitromethane fraction index(NMFI) is a measure of

the degree of binding of the NMF to egg albumen

obtained by multiplying itsNMF value and its

specific binding activity.

FBC Paramecia Toxicity Tests: Documents relating to i

vitro ciliastasis tests involving paramecia, one

cell organisms that propel themselves by hairlikestructures called cilia. One test, referred to as

a "hanging drop paramecium test," exposes a hanginculture of paramecium to puffs of cigarette smoketo determine the numbers of puffs required to stopall cilia movement. Another test exposesparamecium overnight to a homogenate of smoke

collected in water to determine the concentrationof homogenate required to kill a standard volume oparamecium

FBD Clam Gill Ciliaa Documents relating to an in vitrtest in which clam cilia were exposed to wholesmoke or smoke condensate to measure ciliastasis.Some of this work was done as part of ProjectConqueror.

-27-



FBE TetrahYmena Testina: Documents relating to in

vitro testing in whichtetrahymena, one cell

ciliatedorganisms, are exposedto either an

aqueous smoke dispersion (solution tetrahvmena

test) or to condensate dissolvedin acetone

(particulate phase tetrahvmena test) to determne

the mnimumdose requiredto reduce mobility,

activity, or kill all or a portion of the

tetrahymena.

FBF BHK21 Cell: Documents relating to anyof the

several in vitro tests exposing babyhamster kidney

(BHK) to smoke condensate..

FC IN VIVO: Lterally, "in life." Documents discussing

tests in which a substance is applied directly in or on

a living animal. If the document discusses Animal

Inhalation, code to appropriate categoryor subcategory

under FD not to this category. If the document does

not discuss specific in vivo tests, code to this genera

category. Specific techniques include:

FCA Ingestion: Documents discus;sing tests in which thsubstance is given to the animal either in food, in

water, or by some form of forced administrationdirectlyinto the stomach(e.g., intubation).

FCB Topical Apalication: Documents discussing tests in

which the substance is applieddirectly to the

outside of the animal. Examples of documents to b

codedto this categoryinclude discussions of

applications to the skin of mce (MSP) or to rabbi

ears or eyes (Draize test).

FCBA CAM Hyperplasia (chor'ioallantoic membrane):

Documents relating to .this non-mammalian in

vivo test in whichcigarette smoke condensat

is applied to the surface of the

chorioallantoic membrane (CAM of fertile he

eggs andthe resultingincrease in thickness

of the membrane (hyperplasia) is measured.

FCC Toxicitv: Documents discussing the general toxiceffects of a substance on the whole animal afteradministration by various means including oral,injection, etc. Documents discussing inhalation

studies should be coded to the appropriatesub-category under FD, "Animal Inhalation."

-28-



FDBB Hamster: Documents discussing scientific

experiments in which hamsters inhale test

substances after repeated exposures over a

period of days, months'or years.

FDBC Rabbit: Documents discussing scientificexperiments in which rabbits inhale testsubstances after repeated exposures over aperiod of days, months or years.

FDBD Qogr Documents discussing scientific

experiments in which dogs inhale test

substances after repeated exposures over a

period of days, monthsor years.

FE HUMAN: Code documents to this category which discuss

studies of human diseases or conditions associated wthexposure to cigarette smoke or other substances. Do not

code studies of Human Smoking Behavior here, but to

category EF.

FEA Autopsy: Documents discussing research involving

human autopsyresults, usuallycomparing smokers

and nonsmokers. Examples would include Auerbach's

comparisons of the lungs of smokers and nonsmokers

at autopsy; the comparison of aortic segments from

smokers and nonsmokers in the Oslo intervention

trial, etc.

FEB Clinical: Documents discussing research involvingcase reports or comparisons of clinical testing

(e.g., pulmonary function testing, AAHlevels),

especially between smokers and nonsmokers.

FEC EpidemioloQV: Documents discussing research inwhich the occurrence of specific diseases orconditions in a study population is related to

known exposures to suspected causative agents(e.g., smoking, occupational exposures).

RESEARCH FUNDING SOURCE: Documents concerning research

funded by an identifiable source not covered by categories

below(e.g., the AMA.

GA GOVERNMENTs Documentsconcerning,research funded byor

done by governmental agencies (either federal or state)

Examples include NIH grants, NIDA'grants, TWG (the

"Tobacco Working Group"), NCI and USDA.

-30-



GB B&W ALONE: Documents concerning°research funded by

Brown & Williamson alone, either performed at Brown &

Williamson Research Development and Engineering

Department in Louisville or at outside consultantslaboratories. Key words to look for include direct

grants.

GC BAT: Documents concerning the funding by BritishAmerican Tobacco of scientific and/or technical research

either performed at BAT's research facility inSouthampton or at the outside laboratories of BAT's

outside consultants (e.g., Batelle).

GD BAT AFFILIATES: Documents concerning funding by BAT

affiliated companies, such as Imperial Tobacco BAT

Australia (AMATIL), or Souza Cruz (Brazil).

GE TOBACCO INDUSTRY: Research funded by one or more

cigarette manufacturer. Include documents concerning

the Chemosol project here. Specific subcategories

include:

GEACTRSpecial Projects: Documents referencing

research funded through CTR but not after the

normal reviewby the Scientific Advisory Board.

GEB CTR Grants: Documents discussing research funded

by the Council for Tobacco Research after projectapproval by the Scientific Advisory Board.

GEC Institutional Grants (UCLA Harvard. Washington U)

Documents referencing specific research at the

three universities named funded by cigarette

manufacturing companies by contract.

GED Research Committees, U.S.: 'Documents referencing

research funded by the industry through proposalsdeveloped by the various ad hoc researchcommittees. These committees include the IndustryResearch Committee and the ACd Hoc Committee, and

invariably have lawyers as members. Do not includ

documents concerning the Industry Technical

Committee (ITC) here.

GEE Special Account 4: Document's concerning research

funded through a special account at the Jacob,

Medinger &Finnegan lawfirm Most often

applicable to identified potential litigation

wtnesses.

-31-



HH CRITICISMOF TI: Documents indicating that certain

members of the tobacco industry were dissatisfied wth

TIs performance as industry spokesman on the smoking

and health•issue. Include documents concerningAmericans decision not to join TI, Lorillards decisio

to withdraw from TI, and Brown & Williamson'sdiscussions concerning a possible wthdrawal fromTI.

HI SURGEON GENERAL'S REPORT STRATE^Y. Documents indicatin

that the industry prepared for the release of the 1964

Surgeon General's report or that the industrys

preparations were to undermne negative aspects of the

report. include documents showng that TI staged media

events simultaneously wth the release of later Surgeon

General's reports.

HJ TARGET 5: Documents suggesting that the tobacco

companies developed a plan to counter the American

Cancer Societys "Target 5" program acampaign to stop

the use of tobacco.

HK INTELLIGENCE GATHERINGc Documents discussing

information gathered by TI regarding other anti-smoking

or unfavorable activities for the purpose of developing

strategies to counteract those activities.

HL INSURANCE INDUSTRY: Documents suggesting that thetobacco companies were concerned'that the insuranceindustry, by offering lower rates to nonsmokers, wasproviding the message that smoking was harmful. TIcontended that the rate reduction was a sales gimmickbased on faulty actuarial tables. TI lobbied the

insurance companies with fairly successful results.

CTR/TIRC: Documents relating to the activities of the

Council for Tobacco Research (CTR) or'nits predecessor, theTobacco Industry Research Committee (TIRC), not included inthe subcategories below.

IA THE FORMATION OF TIRC: Documents discussing the

activities of the tobacco companies in the formation oTIRC in 1954. Look for references to the advertisemen"A Frank Statement to Smokers."

IB AS PUBLIC RELATIONS VEHICLE: Documents suggesting tha

TIRC or CTR was formed by the tobacco companies as a

public relations vehicle to keep,the smoking and healthcontroversy alive. Also look for documents supportingor refuting the contention that CTRs public relations

effort was equal to or sometimesgreater than its

-33-



research effort. Include documents indicating thatthe

companies utilized Hill & Knowlton, Leonard Zahn and TI

to influence the public and scientific communities view

of CTR. i

IC BROWN & WILLIAMSON INVOLVEMENT: Documents discussing oevidencing Brown &Wlliamsons role in or perception of

the activities of CTRor TIRC Include documents that

show that Brown & Williamson employees served on.CTR or

TIRC committees or attended CTR or TIRC meetings.

ID INDEPENDENCE FROM COMPANIES: Documents indicating

whether CTR was a independent research organization.Look for documents indicating whether the research thatCTR funded was controlled by thetobacco companies.

IE INDEPENDENCE FROM LAWYERS: Documents indicating whethe

the research that CTRfunded was"controlled by the

tobacco companies attorneys. Include documents

suggesting that lawyers stopped research efforts in

sensitive areas (e.g., CNSresearch).

IF INDEPENDENCE OF SCIENTIFIC ADVISORY BOARD (SAB):

Documents suggesting that the SAB was controlled by thetobacco companies and the tobacco companies' attorneys;that the SAB was selected by the" ,companies; and that;itdecisions on grants were based on input from company,

officials and attorneys. Look for documents suggesting

that CTR grantees were controlled by the SAB whose

members acted to protect the tobacco companies from

adverse results.

IG RESEARCH FOCUS NOT SMOKING AND HEALTHe Documents

suggesting that CTRfunded research related mainly to

the etiological aspects of diseases associated wth

smoking, rather than research specifically directed

toward determning whether cigarette smoking causes lun

cancer, COPD, etc.

J SOCIAL UTILITY: Documents discussingthe legal issue of

whether a product's "risks" outweigh its "benefits." Includ

documents that discuss weighing the risks of smoking against

the benefits of smoking or the benefits of the tobacco

industry on a societal level not covered by specific

subcategories below

JA "BENEFITS" OF SMOKING/TOBACCOINDUSTRY: "Usefulness" o

smoking to the individual or of the tobacco industry to

society. :

-34-



JAA Economic Contribution: Monetary contribution of

the tobacco industry to society (e.g., tax

revenues, industry employment, agricultural

growth).

JB "RISKS" OF SMOKING: Documents that discuss the risks o

smokingto society (e.g., excess death, premature

deaths).

JBA Social Costs: The economic losses to societyallegedly caused by smoking(e•Q., higher healthcare costs for smokers, workday$ lost).

WARNINGS/PROCEEDINGS: Documents concerning the Surgeon

General's warningabout the healthconsequences of smoking

Watchfor references to the Surgeon General's warning

warningnotice, warninglabel or healthwarning. Asoincludedin this category are variousproceedings that may

have a bearingon the case under consideration.

KA ADEOUACY: Documents dscussingthe adequacy of various

warnings (e.g., static warningvs. rotatingwarnings,

strengthof the warning, etc.).

KB DESIGN OF WARNING (SIZE, COLOR. PLACEMENT, ETC.):

Includes studies to determne effectiveness of various

formats for the warnings.

KC EFFECT ON SMOKING BEHAVIOR/AWARENESS: Studies to

determne the effects of warnings on smokers, behavior

andsmokers awareness of smokingandhealthissues.

KD DILUTION OF WARNING/OVERPROMOTION: Documents suggestin

that Brown & Williamson or BAT used advertising andoverpromotion to dilute the effect of the warninglabel

on consumer awareness of risk.

KE FTC WARNING NOTICE PROCEEDINGS: Several formal

proceedings initiated by the FTC regarding the healthwarningin cigarette advertising, First hearings were

heldin March1964. Atrade regulation rule requiring

labeling on cigarette packages was to have become

effective January 1, 1965, but Congress askedthat it bpostponed to give Congress time to pass legislation.new trade regulation rule was proposed in May 1969 bythe FTCto require a warningin all cigarette

advertising andhearings were heldin July. Regulatio

by the FTC was again postponed for Congress to act.

-35-



KEA FTC v. Carter Investigation/Subpoena (1976-1979):

The key word here is "subpoena." Subpoenas were

issued by the FTCto obtain advertising and

marketing documents fromcigarette manufacturers

since 1964. The case becamea procedural question

on the FTCs authority to is ue the subpoenas and

on the question of confidentiality of the

documents. The subpoenas were enforced in January

1979.

KEB Consent Decree (1972): The PTC obtained consent

decrees signed by six major cigarette manufacturersrequiring appearance of the Surgeon General'shealth warning in all cigarette advertising. The

announcement was made in April 1972. Key wordswere that the warnings were to be "clear and

conspicuous."

KEC FTC v. Brown & Williamson. In 1974, the FTC began

an investigation into the size of the health

warnings required in cigarette advertising by the

Consent Decree. On August 1, 1975, the FTC

notified the sixcigarette companies that it had

determned that they were inviolation and

requested the Department of Justice to commence

actions. Suits were then filed in the US.

Dstrict Court against the manufacturers seeking

civil penalties for the correction of asserted

violations of the Consent Oder.

Documents regarding FTC proceedings concerning

BARCLAY should be coded to category AO, "BARCLAY

CONTROVERSY."

KF HATCH-PACKW00D, WAXMAN PROCEEDING9 (1982. 1983): The

total of five different hearings in both the House and

Senate beginning in March 1982 through May 1983. The

result was the requirement of the use of the current

four rotational warnings which warn of the presence ofcarbon monoxide in smoke, the risk to pregnancy, therisk of developing diseases and the benefit of quitting.

KG MOSS PROCEEDINGS: Do not code documents to this general

topic.

KGA Moss Proceedings (Senate 1971, 1972): Senator

Frank Moss (Utah), Chairman of the Senate Commerce

Subcommttee on Consumer Affairs, held hearings in

February 1972 on his 1971 proposal to regulate tar

and nicotine content of cigarettes. Wtnesses

-36-



included Horace Kornegay, President of TI.;

Sheldon C. Sommers, M.D., Research Director of CTR;and Robert C Hockett, Ph.D'acting Scientific

Director of CTR.

KGB Moss Proceedinas tHouse 19781: Proceedings in the

House by the Subcommittee onOversight &

Investigations of the Commttee on Interstate and

Foreign Commerce, chaired bykJohn Moss (Calif.).

The material requested of the tobacco companies

included marketing, advertising and consumer

surveys relating to the benefits, dangers, etc. of

smoking; documents discussing consumers attitudes

about ads including the warning notice; and

documents about advertising to the under 18 age

group.

Another proceeding to be coded here is a hearing on

Antismoking Initiatives of the HEWheld in the

House Committee on Interstate & Foreign Commerce.

Horace Kornegay of TI did make a statement.

KH 1964/1965 PROCEEDINGS: These hearings were held before

the House Committee on Interstate & Foreign Commerce in

June and July 1964 (no action taken). More hearings

were held before the Senate Committee on Commerce in

March and April 1965 and again before the House

Commttee on Interstate &ForeignCommerce in April and

May 1965. There were ten different bills before the

House alone. There were many expert wtnesses who gavestatements on behalf of the industry. Among themwere

D. LH Garland, D. Israel Rappaport, D. Thomas

Moran, D. Henry Russek, D. Mlton Rosenblatt, D.

Hiram Langston, and Dr. Ian McDonald.

The resulting legislation, The Federal Cgarette

Labeling and Advertising Act, was;signed into law inJuly 1965. It required the followng warning on

packages: "Caution: Cigarette Smoking May Be Hazardou

To Your Health."

KI 1969 PROCEEDINGS: Hearings were held before the House

Interstate & Foreign Commerce Committee on several billsto amend the Federal Cigarette Labeling and AdvertisingAct in April and May 1969. A bill, Public HealthCigarette Smoking Act, was passed by the House and sentto the Senate in June 1969.

-37-



In July 1969, hearings were held before the Consumer

Subcommittee of the Senate ComznerdeCommittee.

Joseph F Culiman, III spoke on behalf of cigarette

manufacturers, announcing an agreement to discontinue

broadcast advertising if exemptedfromantitrust

violation.

The newlawwas signed into effect on April 1, 1970.

Its main provision formalized the discontinuance of

broadcast advertising and the revision of the cigarette

pack"caution" label. (Note, this lawdid not require a

warning notice in advertising.)

KJ SPECIAL REPORTS TO FTC: Reports compiled by Brown &

Wlliamson and filed wth the FTCon advertising.

KK FTC REPORTS: Annual reports that-the FTCis required to

file wth Congressreporting on smoking and health.

KL T&N DISCLOSURE PROCEEDINGS f1970-'19711: This proceedingwas never held. It was noticed for hearing by the FTC

in October 1970, but a voluntary agreement of the

cigarette companies was accepted by the FTC and becameoperative in February 1971.

KM FDA PROCEEDINGS: There are at least two hearings to

code here. One concerns smoking andoral

contraceptives. The other concerns an attempt to

classify filters as medical devi6es.

KN OTHER PROCEEDINGS: Documents concerning other hearings

proceedings, or legislation in the United Sates or

abroad.

L LOBBYING: Documents that discuss tobacco industry lobbyingother than lobbying by or through TI.' Do not include anti-industry lobbying. Include materials'discussing campaigncontributions or drafting of letters.

LA BROWN & WILLIAMSON LOBBYING: Documents discussing

lobbying efforts by Brown & Williamson on the nationalor state level.

LITIGATION ISSUES: This general category should be used fordocuments whichrelate toallegations of msconduct or legal

considerations, but which do not fallinto one of the

subcategories.

MA CONFIRMATION OF CAUSATION: Docwnents suggesting thatthe results of research confirm or supplement thealleged evidence that cigarette smoking causes disease.

-38-



Include any documents suggesting that some tobacco

company scientists believe it has been proven that

cigarette smoking causes disease;

MAA Brown & Williamson's Confirmation of Causation:

Documents suggesting that the results of Brown &

Wlliamsons research confirmor supplement the

alleged evidence that cigarette smoking causes

disease. Include any documents suggesting that

Brown &Wlliamson scientists believe it has been

proven that cigarette smoking causes disease.

MAB BATs Confirmation of Causation: Documents

suggesting that the resultsof BATs research

confirmor supplement the alleged evidence that

cigarette smoking causes disease. Include any

documents suggesting that BATscientists believe ihas been proven that cigarette smoking causes

disease.

MB FAILURE TO CONDUCT RESEARCH/TEST: Documents suggesting

that the tobacco industry did not conduct smoking and

health research. Include documents suggesting that any

research conducted or supported by the tobacco industry

was conducted to obtain data to rebut the charges of

smoking critics or for public relation purposes.

Include documents suggesting that research leading to

"unfavorable" results was termnated.

MBA Brown & Williamson's Failure to Conduct Research/Test: Documents suggesting that Brown & Williamso

did not conduct smoking and health research.

Include documents suggestingthat any research

conducted or supported by Brown & Williamson was

conducted to obtain data to rebut smoking critics

or for public relation purposes. Include document

suggesting that research leading to "unfavorable"

results was termnated.

MBB BATs Failure to Conduct Research/Test: Documentssuggesting that BAT did not conduct smoking and

health research. Include documents suggesting tha

any research conducted or supported by BAT wasconducted to obtain data to rebut smoking criticsor for public relation purpo5es. Include documensuggesting that research leading to "unfavorable"results was terminated.

-39-



MC GENTLEMEN'S AGREEMENT: Documentsrelating to

allegations that the companies agYeed to not conduct in-

house animal research (smoking and health research) or

that the companies agreed to share breakthroughs on a

"safer" cigarette.

MD MANIPULATION OF RESEARCH/DATAi Documents relating to

allegations that members of the tobacco industry

pressured outside researchers into obtaining desired

results or that the industry manipulated research data

so that a favorable conclusion could be drawn.

MDA Brown & Williamson's Manipulation of Research/Data:Documents relating to allegations that Brown &

Wlliamson pressured outsideresearchers into

obtaining desired results or'that the company

manipulated research data sothat a favorable

conclusion could be drawn.

MDB BATs Manipulation of Researeh/Data: Documents

relating to allegations that'BATpressured outside

researchers into obtaining desired results or that

the company manipulated research data so that a

favorable conclusion could be drawn.

ME FAILURE TO PUBLISH/SUPPRESSION OF`RESEARCH RESULTS:

Documents suggesting that members of the tobaccoindustry published only research results thatsupported

the industrys position. Include'documents suggesting

that lawyers made the final decision about whether astudy could be submitted for publication.

MEA Brown & Williamson's Failure to Publish/Supipression

of Research Results: Documents suggesting thatBrown & Williamson published'only research resultsthat supported the company's position. Includedocuments suggesting that lawyers made the finaldecision about whether a study could be submittedfor publication. This code includes researchperformed by outside researcliers funded by Brown &

Wlliamson.

MEB BATs Failure to Publish/Suppression of Research

Results: Documents suggesting that BAT published

only research results that supported the companys

position. Include documentssuggesting that

lawyers made the final decision about whether a

study could be submtted forpublication. This

code includes research performed by outside

researchers funded by BAT.

-40-



MI CONCESSIONS: Any statement:s, admssion, or disclosures

by members of the tobacco industry having detrimental

legal consequences (e.g., an internal company document

stating that smoking causes lung cancer).

MIA Brown & Williamson's Concessions: Any statements,

admssion, or disclosures byBrown &Wlliamson

having detrimental legal consequences (e.g., an

internal company document stating that smoking

causes lung cancer).

MBBATs Concessions: Any statements, admssion, or

disclosures by BAThaving detrimental legal

consequences (e.g., an internal company document

stating that smoking causes lung cancer).

MJ DEFENSIVE DOCUMENTS: Any documents useful in defendingagainst claims of addiction, lungcancer, emphysema,

dilution of warning, or any of the above litigation

issues.

MK INDUSTRY COMPETITION: Should not be used for documents

conwherned treacomcompetition, but

only for unfortunate c petition, e.v., a

document that says, "We should do biological research togain a competitive edge."

ML INDUSTRY COOPERATION: Documents °relating to cooperation

between the cigarette companies. ' Should not be usedfo

documents that describe industry-wde support ofresearch (e.g., CTR), but only for documents wth

comments that could be msunderstood as a "conspiracy."

MLA3i/LSI/LRD Documents discussing activities of 3i

LS., Inc., or Literature Retrieval Dvision and

documents concerning Brown & Williamson's dealing

wth any of these organizations.

MLB Litigation Defense: Documents relating tocooperation between the cigarette companies and

their legal counsel with regard to the smoking andhealth litigation.

N LAWYER INVOLVEMENT: Do not code to this major heading.

NA LEGAL DISCUSSION OR RECOMMENDATION: Documents

evidencing lawyer's advice, reconimendations, or a

discussion of the legal issues concerning the smokingand health controversy.

-42-



Papers from the 1969 A . A . A . A . R e g i o n C o n v e r i ' l i k - . . . . s

HOW AN AGENCY BUILDS A BRAND

-- THE VIRGINIA SLIMS STORY

by

HAL WEINSTEINVice President and Creative Director

Leo Burnett Company, Chicago

In the marketing cycle of cigarettes, without

a consv.mer-related identity, there is no brand

loyalty and without brand loyalty there is no

market .

Leo Burnett's creative challenge was to establish

and maintain a new attractive'orand' personaTity .

in their search, -1Vliss Virginia Slims was bo :r n .

A cigarette for women only was ar t instant succes s

and brand identity was firmly established .

In today's market struggle for loyal consumers,

it canbe said of Virginia Slims, "You've Come A

Long Way, Baby . "

M

EASTER NT ANNUAL CONFERENCEBiltmore Hotel, New York, October 28-29

A m e r i c a n A s s o c i a ti o n , o f A d v e r n s i n g A g e n c i e s

copyright 1970



The story I have the pleasure of telling you about is Vrginia Slims ---

an&how it happened at the agency, as seen from the creative side. This story

could be called "The Quest for a Personality" -- or "15 Guys in Search of a

Feminine Identity" -- or "How Miss Virginia Slims Got to Be the Kind of Girl

She Is . "

In the cigarette world, as you know, if you don't have a strong person-

ality -- an identity -- you dont have a brand. The smoker's motivation and

loyalty to a brand comes from identifying with the personality of that brand .

So the creative task iq cigarette advertising is very simply to estab-

lish an&maintain a clear and attractive personality for your brand. The

more attractive -- and the broader the appeal -- the better. I'd like to •show you now some of the exploratory creative work --,layouts and~ storyboard s

that was developed in the search for a personality for Mss Vrginia Slims -

as well as the final outcome.

The storv starts in the fall of

lyb/ when American Tobacco Gompany,.

brought out Silva Thins -- and the~

question came to us from Philip

Morris -- "What would you guys do

wth a thin cigarette like Silva

Thins if Philip Morris were to make

one?" .

Let me admit there was a lot of

initial reservation about whether

a thin cigarette had any merit at

all. Silva Thins was not doing

well in the marketplace. Our first

thought was, maybe a thin cigaretteis simply a thin idea. Maybe it's

just giving the smoker less of what

he wants -- less cigarette,

enjoyment .

less

.~ : ..

all the really successful newcigarette ideas in the

built on giving the smoker a little bit more than

z$~~ tPpi~~ ~a~oer

a~ ex.z: . /e1,19fh

,►ffode~h ~/~ritre,7,,'ho1

A m -' /5~rtx extr~ ~ ~er~~~

: _ .

(Slide Ot2)



tipping paper on cigarettes -- like the old Viceroy and Marlboro of the

more .

.or putting menthol into it, like Kool or Salem, and most recently adding

another extra 15mm, making the cigarette 100mm long, like Benson &'Hedges

or Pall Mall Gold. Maybe a thin cigarette was going to flop therefore

because it might seem to offer a little bit less instead of a little bit

30's -- then making the cigarette an extra 15mm longer -- like the original

Pall Mall -- then putting a modern filter on it -- like Winston and Kent --

_were impressed .

• So we laid hands on a pack of Silva Thins and tried them out . And we

quite different -- fascinating -- in your hand and in your lips .

This thin cigarette, we discovered, had visual intrigue . It looks

It has style and grace .

It's neat . Somehow it's very

flattering, distinctive .

. They say that when Pall

Malls were originally introduced,

women took to them immediately

because they felt the extra

length made their noses look

shorter . Maybe this thin cigar-ette similarly could be liked

because it makes your hand look

slimmer and more graceful .

Immediately we felt we were

dealing with a feminine idea : women

are the stylish sex. There was a

tactile distinctiveness too -- equallyimportant and advantageous .

The thin cigarette felt different

in the hand . And it felt not just thin-

ner, but lighterweight, too . It was

different and interesting . You picked

s it up and you wanted to roll it across

your fingers and really explore and

enjoy the very different sensation of it .

In a product category where dif-

ferences are almost non-existent, we were

suddenly impressed that this wasn't a thin

idea at all ; that here was a difference

you could see and enjoy, feel and' enjoy,and smoke and enjoy (because it even feels

different in your lips) .

(Slide #3)



. I -

- 6

I

V. ,

And speaking of enjoying the smoke, we were much concerned about the

taste . The thin cigarette might seem to imply a thin taste .

So a couple of our art directors got out their crayons and .colored the

tip of the cigarette brown . It w-as one of many experiments with the product .

Everybody knows a brown tip means flavor, whereas a white tip means purity .

.And we could ask Philip Morris for a better flavor blend than Silva Thins .

The length factor was wide open too . It might be 85mm instead of

100mm. like Silva Thins . An&how would you use any of these different product

ideas and who would you aim it at? And what would you name it? And what

personality would it have?

By now we were getting excited : this thin cigarette had obvious

potential . So we started combining various product an&brand ideas .

I

(Slide #5)

(Slide #6)

For example : create a brand ofslim 85mm cigarettes with a white . ~ ~

. V k

tip, a low-tar blend, and a high-

fi filter . Call it, for instance,V~~t- __ TnA n e%v- M4n4m~~ , W I I I

("Smoke a Minim" -- chere's a

slogan), or Trend~ . The type of

appeal to be made is obvious .

Maybe it represents a way to cut

down on your smoking in spite of

yourself .

On the other hand, create a '

brand of 100mm. cigarettes with

a white tip and good flavor .

Name it something feminine like

Deauville or Wellesley or

Virginia or St . Moritz and you

have a brand appealing to women

nuiybe for style or purity or

lightness .



Cigarettes have gender, as everyone knows . It was a study by Pierre

Martineau, I am told, that first pointed out that cigarettes are either

masculine or feminine but never successfully neuter . No matter where we

started from, we kept coming to the conclusion that a thin cigarette neces-

sarily had to be feminine despite §ilva Thins' guy with the sunglasses .

Now, there's the name "Virginia" on this early list .of names . Where

did it come from? Wel1 . . .the Philip Morris Company owns the brandname

Virginia Rounds, as you may know . Virginia, we felt, was a great name for

.

hills . This combination seemed too good to be true, particularly when werealized the Philip Morris Marketing Director"s wife is named Virginia .

a cigarette with a feminine personality. It not only has traditional tobacco

overtones, but it romantically suggests moonlight, gentle breezes, and green

(Slide #7)

And we were attracted first by

Virginia Lights . With Virginia Lights

we might be able to say, "Now you can

smoke light -- smoke light instead of

heavy ." A good promise, if backed up

by a lighter, slimmer cigarette .

So here's an approach that's

certainly feminine but not yet an overt

appeal to "women only" . Virginia Lights .

And the ad says, "If you had your

druthers, would'n't you smoke light in-stead of heavy? New Virginia Lights",

it's signed at the bottom : "i:hy smoke

heavy when you can smoke light?"

4

.

okay, Virginia . But Virginia

What's? We might havEs called our

brand'Virginia Thins, but the word

"thin" seemed to us too negative . ~ ' = ~ .: ~

We threw it out . And we considered

"Slims", "Trims", .and "Lights" --

all nicely feminine .

I f y v u h a d y c x r d : R U d - r i s ;

v u x , l d r i t y o u M X ) I M

WiIi 1J'28fead d hewY?



Despite all we put into it, this Virginia Lights direction looked to

us very lightweight indeed -- artificial and forced, strained and ad-y.

Hard to write and put together . No meat .

one small step covers an enormous distance .

to a brand called Virginia Slims and advertised "For women only ." But that

Now, it may seem a small step from the feminine brand Virginia Lights >

when the account group suggested we should sell the slim ci arette ith ~"There came this magic moment after we'd been working just a short while

uct difference needed to bring it to life -- the slicmner cigarette . Inmany years without going anywhere now suddenly had at han&the perfect prod-

selling idea which had been kicking around between agency and client for so

overtly feminine proposition, "The first cigarette for women only ." This

fact,

All of a sudden we Y:ad a~ productstory that hung comfortably and

naturally on the product . This

thin cigarette which we had in-

stinctively felt was a feminine . `

idea we could now think about as

having been designed specifically

for women; designed slimmer for a

woman's slimmer hands and lips ;

designed with the kind of flavorwomen like; and packaged in a slim

purse pack .

(Slide #12)

So now we ha&two of the three key ingredients in cigarette success --

an appreciable product difference, that fit with an important market segment .

What remained was to develop a great personality for the brand

tive as possible -- with the right kind of advertising .

This is a list of the ap-

proaches or personalities weworked at for this new women's

cigarette.- The cosmetic approach,

the straightforward or direct ap-

proach, a challenging, feministic

approach, the romantic personality,and -- finally - fun. And they

came just about in that order .

it was the key. With that, our creative horizbns suddenly opened up .

as attrac-



(Slide 4114)

The cosmetic approach? Forget it .

You don't create a mass cigarette

brand for women by naming itTiffany, Vanity, Caprice, Riviera,or Flair, putting it in a gold lamepack and advertising,it in Vogueand Harper's Bazaar . That wouldturn off most women by creating acosmetic instead of a cigarettebrand, a fashion accessory, a

novelty cigarette so feminine thatfew women would smoke it .

When it comes to cigarettes, it turns out that we're all a little bi-

sexual as your neighborhood psychiatrist will tell you . For psychologicalreasons, apparently, cigarettes have to walk on both sides of every line :

"Rich-yet-mil&" "Full-of-flavor-yet-low-in-tar-and-nicotine." And so it iswith gender . Lots of women smoke the he-man cigarette Marlboro, and lots of

men smoke Salems . So don't get too feminine with your feminine cigarette .

So we tried~it straight, a direct, newsy approach .

I

I i'- ki- u~wl I 'r~

• ~ ' l }r~o~ ,(1'~. ~ ~~~~777)JJ~~~

.

*

Tie Qum ;~z2 ag c - m e t teT h e TB v ft p p e &§ukmg .~. r ~ : . . ~ . AV W

~. : , ~ . AW

rL ,

00

an~~~~~ ~~,~

S,JI+liA L.L .7LYlp

(Slide #15)

We wrote, "The Queen-size Cigar-

ette, the New Shape of Smoking," andother cliches . In this ad we're call-ing the cigarette Richmond!Slims --

another name we liked a lot .

We madea c i g a s e t t e f o r 3 r ou

0002430037

(Slide •". • 1 6 )

Here's another . The headlinereads, "We Made a Cigarette forYou," Straight news . "The Queen- ''-size Cigarette with King-size ~?Flavor ." (that's really terrible . )



.

.

Ia ucing

Q u e e n S i z e

C i q a r e t t e

(Slide #17)

"Wear a Good-looking Cigarette

Tonight ." This is a slightly cosmetic

angle but done with a nicely direct

tone-of-voice .

Aft eryo vire &aalook ulg a . t x t

y + o u c = s t n o k e i t

. .~ . . _ . ~. ..~

viuguua 91uma

The neyr Q ife'.n 9128 agn ieu . e

„ttth xulq•sne f]avor

(Slide #19)

Or . . ."Intro ducing th e Queen-size

Cig a r et te ."- For a bo u t 24 ho u r s s o m e

of us had been enamored for the'Queen-size' idea . After which we

concluded it was a bad phrase with~

all kinds of wrong connotations you

shouldn't mention in public .

Wea ra g o o d l o o k i a

c i g a r e t t e , :

t o n i g h t

~002430038

Again, "After you're done looking aL

it, you can smoke it!" This obviouscalling attention to the shape of t.acigarette may be a mistake . What'sobvious will sell itself . Like theconvenience in convenience foods .

Let's keep looking for that

personality .



Here's a new note . "Do you~want toput a fat cigarette between those pretty,pretty lips?" That note of challenge in

these words suggested another direct .ton .

How about challenging women somewhat.aggressively on their feminin ity?

You can get quite a reaction by tell-

ing a man you think his shirt or tie is a

little too feminine, or by telling a womanher clothes are a bit mannish . So what ifyou sai&that the usual fat cigarettes are

masculine and to be really feminine,ladies, you~need a slim cigarette? Youmay have seen a hint of this inthe words,in an earlier ad, "Slims are for women -

fats are for men ."

(Slide #20)

Here's a storyboard film of a commercial built on this base . (See

storyboard on facing page) Again, the audio is an agency roughtrack .

The trouble with this whole direct approach -- whether newsy or aggres-sive or whatever -- is that it didn't seem to establish a brand personality.or mood as much~as it did a product category -- namely, a women's cigarette .

So the next mood we looked at in some depth was romance .

(Slide #21)

Salem went to glory with women smokers onthe pastoral. Romantic appeal or spring-time, green fields, and soft summer dresses

plus the inevitable and indispensable prod-uct difference they were dramatizing -

namely, the first light menthol cigarette .

So maybe here was'an avenue for VirginiaSlims .

One of our first tries on these lines took as a departure point thebasic man-and-a-woman, boy-girl situation -- with Virginia Slims the important

- 10 -



M

.~ ~

:f . • . '.~'t1•i^ ;~ .~

. ,

-1. (Music under throughout) 2. (Girl VO)iSometdmes, the . . 3We do have our ditfer-thing between a man and a encea .

woman isn't all the sharing .

f

rn - ~ .

.<

story element . Imagine it in this next storyboard-On-film taking place inGrand Central Station where there are just the two of them isolated in thatbig empty place .

4 . And he's got his own way

of reminding me of it all the

time .

d''~

13 . So, I do the next beet thing . .

I blow a little his way .

14 . (Man VO) Long, lean,light and lovely .

9 . Lighter to the taste than

his. You know . No thick,

. heavymahls taete,

12 . Well, that'e not exactly

the kind of thing we do in

. public .

New Virginia Queens .

Regular or Menthol . In the

newpurse-pack .



It might be a very pleasant commercial to watch, but the idea was toosoft -- too forgettable, we thought . It's not enough if the ladies love us,we also want them to remember our name . So . . .how about a song -- a romanticsong? Music is such an important--.,element imrigarette advertising -- where90% of what you communicate is non-verbal anyway. Maybe the.right song orthe right sound could give this romantic mood a more memorable identity .

One of our creative group members came up with a song -- a romantic flavorsong .

We put it together with dreamy pictures of a woman and her dog, -.strolling along the shore -- meeting a man -- plus copy about the cigaretteand its reason for being . Here's how it might have come out, again in arough storyboard-on-film . (See storyboar&on page 14) .

We really liked this execution . Some of us felt that if we had to, wecould market this cigarette with this kind of advertising and it would work

.

Women would like it and' it would certainly give the brand a very lovelyfeminine personality,with long life potential .

it would be too soft, too expecte&, however beautiful it turne&out . ''-So we

asked ourselves, how about a fun personality for the brand -- a lively,

But we still questioned the memorability of this romantic mood . Maybe

sparkly, happy cigarette?

Women are the great fun lovers,as everybody knows. Men watch ballgameson TV an&play poker and that's what theyknow about fun. Women are the ones whowatch the comedy shows and'dig all thefunny stuff -- right?

(Slide #2'2)

.



:12_ Probablv the mildest

cigarette you' ve ever set

; ,our lips to .

15, (Anncr VO) Try them .4 . SONG: The easy flavor of13 . New Virginia Slims .

New Virginia Slims .cigarette for you .



One great brain came up with the concept of women's rights, and a

strong line that expressed it :

. , . • , .. b . • s , .. ~ . .

..

Nwhs m,r . bng ..r y . 4 a b y , . .

(Slide #26)

"It used to be, lady, you had no rights .

But now you've got a:new thin cigarette all

your own." And it's signed with a Queens

pack and "You've come a:long way, Baby ."

And there's the suffragette carrying her

sign "No Vote, No Tax ." And a Chicago

Tribune headline : "Woman's victory needs

one more step," And the copy says, "No

right to vote, no right to property. Noright to the wage you earned . That was

back when you were laced in, hemmed in, and

left to while away your time among the what-

nots . That was back when you had to sneak

up to the attic if you wanted a cigarette .

Smoke in front of a man? Heaven forbid :

You've come a long way . Now you can vote

and own and'earn, and, well -- you've comea long way. Now you can smoke downstairs,

or even out of the house if you~please . Andnow . . .you have a cigarette all your own .

You~have a right to your own cigarette ."

0002430045

"You've come a•long way,

Baby." The story was simple, and

went like so: "It use&to be that

women had no rights. Now•they

have the rights . Now they have

everything. You've come a long

way, Baby. And now you even have

a cigarette brand for your.very

own." It was fun, it was simple,

and it was fresh . And like all

good ideas, it was easy to write .

(Slide #25)

.

Between 11 AM and 10 PM our group put together a dozen ads for the

next day's meeting. Before we look at some of those rough layouts, let

me re-cap a bit .

It takes three right ingredients to create a cigarette brand . First,

enough of a product difference to be interesting,. Second, a market segment

that that product difference can appeal to . And third, the appeal has to be

right. Which means the personality has to be strong and in the right mood

for the people you're talking to . When we got these rough layouts on paper,

we knew we were home . We felt we had all the ingredients . Here are five of

the prototypes .

I t u s e d t o b e , f a d ,

y o u h a d n o r i g h t s y

B u t n o w y o u v e g o t

a n e w t h i n c i g a r¢ t t e

a l l y o u r o w n .

. , - . , ~ . . . ,• . , . ~ . . ., d~ . •

NOYDff YICTOIT ~~- - - •

- --=~ ~ . _ . . . . ; ,

. , • , , : . . , . . . . .

:", . . . , . , ~ .

~V i F 4 1



The caption under the group photo reads :

"Number 1. Mrs . Darwin Owen claims to

have smoked her first cigarette on May

19, 1910, in the attic of her grand-

father's farmhouse . Number 2. MaryJane Wilmot smoked her first cigarette

January 4, 1912, behind the old barn out

back. It was cold . Number 3 . Susan B .

Griffin confesses she smoked March 4 or 5,

1911, out in the country where only one

squirrel and a bird could see her . The

others offered no comment . You've come

a long way . Now there's a new slim

cigarette from Philip Morris that's all

your own. New Virginia Slims ."

I

(Slide #27)

I N 1 ' 9 2 0 Y D U 6 0 T T N E M E A N D

s 0 t O U T O F T H E K 1 T C H E N . B U T

N O r U M T I L H o w

C O U I D l r o U f E E

C O M F D R T A B I f

W 1 T H A C I G p R E T T E

I N Y O U R H A N D .

. 0

(Slide #29)

( S 1 i d ' e # 2 8 )

"Just think. Once you had to fight

for the right to wear bobbed hair .

Now you've even got a nice thin cigar-ette all your own." Signed Queens ."

"In 1920 you got the vote and got out

of the kitchen . But not until now

could you feel comfortable with a

cigarette in your hand ."

C " ~



The caption under the photo reads :

"When the after-dinner cigars were pas-

sed and the political discussion began,

she would rise gracefully and lead ttLe

ladies into the sitting-room~." "It''s

different now. 'Now you just sit there

and smoke your thin cigarette . You

have come a long way ."

I t s d i f f e r e n t n o w

N o w y o u j u s t s i t t h e r e a n d

s m o k e y o u r t h i n c i g a r e t t e .

(Slide #30)

Before getting to the TV commercials let's jump ahead to see how these

ads came out in finish .

s

This one was substantially unchanged .

Except we're introducing regular and

menthol simultaneously, which is maybe

an industry first . We've strengthened~

the brand-name signature -- which is

Virginia Slims -- and we're in magazine

pages -- with color -- rather than black-

and-white newspaper .

(Slide #31)



i

.

(Slide #32)

(Slide #33)

Here's the bobbed-hair ad . The

today gal is stronger in itthan she was in the layout .

We use color to point the reader more

strongly at the modern gal, to emphasize

the modern element . Now, since you've been

-through so much of the painful genesis of

the product copy, you may be curious about

how it came out finally -- in that little

copy-block beside the packs . It reads :

"What is this new extra-long cigarette for

women? Is it just a normal ordinary cigar-

ette we call a'woman's cigarette'? No .

We tailor it for women . We tailor it for

the feminine hand'. Virginia Slims are

slimmer than the fat cigarette men smoke .

They have the kind of flavor women like -rich, mild Virginia flavor ." As you can see,

the copy carries echoes of various bits of

the developmental work.

(Slide #34)

Here's a Virginia Slims ad for Ebony .

Frankly, we weren't sure, with our theme

"You've come a long way, Baby" - that we

could run this advertising in Ebony, but

why_not? As long .as it still comes off

as a cigarettee ad, not a civil rights $

message .



t

.

1 . (Music under, Anncr VO)It used to be, lady, . . . ~

10 . ., for women only .

Tailored for the feminine

hand .

13. New extra-long VirginiaSlims . In the slim purse-pack .

~ .

-wo-w7j~ .

2 . . . .you had no rights . No

right to v ote,' . . . . •

1- ~ ,P tt

. it

11 . Slimmer than the fat eig-

arettea men smoke with thekind of flavor women like .

14 . SONG: You've got your

own cigarette now, baby .

~

9. (Girl VO) Introducing newVirginia Sli ns . The slimfilter cigarette ., .

15 . You've come a long, longway.

Q1ooz4 3oQ5o

- 21 -



. . - . ~ .E . • .I

2. (Anncr VO) In 19i0i Mrs .

Pamela Benjamin was caughtsmoking in the gazebo .

5 . Altbough she was 34, her

husband sent her straight to

. her room .

..n . . I L w

. _ ti

~ . A

t -P ' . s

: t ; ' , ' -

10 . Slimmer thanthe fat

cigarettes men smoke .

B . (Girl VO) Introducing new

Virginia Slims-- . . .

3

11 . With flavor women like .

Rich, mild, Virginia flavor .

-. '% I •1/!'+ --

3. ~

13 . (Music) 14. SONG: You've come a lcngway, baby, to get where yoi .

got to today .

3 . She got a severe scolding

and no supper that night .

9 . . . . the thin cigarette fo r

women only. Tailored forthe feminine hand .

15 . You've got your own cig-

arette now, baby. You've comea long, long way .

0002430051

-22-



So here's another three minutes of film from our new pool of commerciaLs.

1s

, 1 . (Music under, Anncr VO)

For years, women tried to win

~ all the rights men had, . . .

J' No

Tq)(

7 . Then~ in 1920, women wontheir, right's .

SYi

. 4

10 . (Girl VO), This is the slim

'cigarette made just for women .

New Virginia Slims .

13 . New Virginia Slims . In the

striped purse-pack .

ZIUC00Z . . .g including the right to 3. In 1908, Cathleen Camp-smoke in public . And for .' bell thought the time wasyoars, they failed. right

11 . With rich Virginiaflavor you'II like .

9 . SONG: Yougve come a long

way, baby, ta get where you ,

got to today .

cigarettes men smoke .

. : '

12 . Tailored for the feminine

hand. Slimmer than the fat

i

14 . SONG: You've got Virginia 15. (MuaicaLplayoff)

Slims now, baby. You~ve comea long, long way .

-23-lV

4 %



1 1 .

1 . (Mueic under, Anncr VO) 2. cert~t n ri¢hts wjr,e for 3 . . . .the ladies .were politely

Back in the old daye,,, .. en~onlyStt~Sh Ss Lhin t'n~P dismissed to the sittinych as smo ng. So, afte g-

, _ .; nne r, . . .. room

!i 7

s

a

tP

i

4. The men'talked politics and ~ . 5 . It's dif ferent now,,

puffed their fat cigars .

'6, ~ 4 '} 4 iM r

A

®

0

. ~ . - .- ,.

I

come a long

. ~7'. r . } . ~ . ~~ . . .

13. . . . with rich Virginia flavor

you'll like. New Virginia Slims .

In the striped puree-pack .

I •

rt

~ ' ~ , ~ ; irj

' . A ~a• .~~ ~~ / 1~r8. You've got your own ciga- 9 . You've come a long, longrette now, baby, way

14. SONG: You've got yourown cigarette now,babg. .

- 24 -

15 . You've come a long, longway. (Musical playofn

0002430053



i

.4 . Then you started fighting .

And things started going your

way. ~

. 2 . . . .from days when manwas king .

d tFr'' ;

3 . You couldn't vote, you

couldn't smoke, you couldn't

do a thing.

+ . . `~ . . . . : z ;

nVi k C - , i , \ I I . . A , r b

A ' 1 0 . . . .0 get where you got to

today .

11 . (Music undtr, Girl VO)This is the slim cigarette made

12 . With rich Virginia flavor

you'll like . i '

0just for women . Virginia Slims .

# _i. I A M P N

t

I

~F

r g ,jr n

I r n s .

d

1 3 . Slimmer than the fatciga-

rettes men smoke . Virginia1 4 . SONG : 1ou've got your owncigarette now, baby .

15 . You've

way.

come a long, long

Slims. P002430054And that, Ladies

Thank yutt .

and Gentlemen, is how we got where we got to today .

- 25 -



A L L N A T I O N A L A N D R E G I i O N A L F I R S T M A J O R D I S P L A Y S

C H A N G E T R A Y S

O R ' ~

18-PACK MERCHANDISER



1 0 - P A C K S P A C E S A V E R D I S P L A Y

V I R G I N I A S L I M S F I L T E R

V I R G I N I A S L I M S M E N ! T H O L F I L T E R

A separate diisplay has beenideveliope&for each packingof Virginia Slirms . Where possiblie, these displays areto be used in lieu of the 18-pack merchand'iser fiorcheckout displays (Plan B, Option 2) . Iin addition, theyare to be used in independent retail outlets to displaybothipackings .



1 0 -P A C K S P A C E S A V E R D I S P L A Y

V I R G I N I A S L I M S F IL T E R

(~1.I~Y~4"M~w~ MJ1yi.~.tN1pNW9NK•

1, ; '-. 1) 1'

V I R G I N IA S L I M S M E N T H O L F I L T E RA separate diisplay has beenideveloped~for each packing

of Vrginia Slims. Where possible, these displays areto be usedin lieu of the 18-pack merchandiiser for

checkout displays (Plan B Option 2) . In addition, they

are to be usedin independent retail outlets to dispilay

both packings .



MEMORANDUM

Dick Smith

~ .Talerie Fried -"anFROi1 :

and sm-oking . On.ce this information has Ceen absorb2d,

The Female Smo'-':er Market

At your request, I have sur~arized existing, inforz_atioz oLt

market .

might pursue to successfully enter the -women'' s cigarette -

w e can concentrate on investigating approac`~es ~~li~at Lori' l]'ard

'UF : a e

At tachment

c c :• T . H .



2 . G & ~ s h o w s o n ? ~ j , ~ a s l - i - h t m a r g i n b y w h i c ' - r i t h e p e r c e n t a o e c o f m a l e s m o k e r s e

:-,cee`s fem-ale smokers in 1970-1 .M, andthe rT2roin for -~a'les e : I :is :.s on1yin the LcTi cateooYy .

ko •;ever ,, wom°n are mcre likely i.han' men to s-~o':e HiFi and'Menthol brzn3s G

B'ecau e of the lo~,7 dai ly ~rol'~u~-ne of cioarettes s^oked' bY

u ,om;en' co- m p a r e r - I • r i t ' L 7 , r _ en ( 1 7 ` ./~ Us o 22 . 7 ) ,-'31e co_?,S'. L.mptlon

e - Y ceed s fema l e consL_Dticn in' the market ovzLall, aarticu larly

as v. ale eons ::~pti on i n t1h_ e i`enthol a .td i?IF i cateoori:es .

the LoFi ca~teoo_,~ . ~ e-a'1e consul-~p L ;' on~ is about the same

S-'_'Jk E'_rS /V ol ' ` T , m e C x

Ma le F e_--a le'

52% 4 $/5 S ' L 9

55 4 5 .

5G . 40

41 . , .-59

48 5 2 '

43 ~~

49 51

Source : C- ~ 1970-1 :71 S tudies

1 . ~'OV?ei2 are also ?:1o'''e l Z'_~~e1 y t'i'lc'?.n, fien, t o smi ' :, e !Ci7 CZj~~- - = - s,

c_ ` - 'er s ' b Y

MaI e" v ~37~ ~+ J ~J~._ S 52

3 ~ ~ ~ ~ ~ i

= :i^r'1liCe,S

,



4 . The. growing inpor tanc e of the f em3le smoker i,s due toseveral factors, includi no fewer f.e~^ales quitting, morefemales beginning to smoke, and' female smo .:ers increasino

Also, women are catching , up with nen' in the daily volume ,

s2iiotied'o Though wo L 1 e _ ' 1 ' continue to s1'P_Cti e =e~iE'r c i gare'ttE"S - perday than do men (17'04 vs, 21, 7) ,, M reports tha t tb.z per-

eentaoe of women smoking a pack or mbre a day has doubledbet:•,een I955 and 1905 0

.5o i?yoothasis To Mplain . Mark.et Facts

1 . Several reasons have been proposed' to explain why mor . e

wo,en than men are ei.ther Lnwillinfo :r Lna'o-p e to stop s : , t :o1-

i=:~ ,

~ r '. y ` s is the greater concern woman have L ' ~ ~ a'L i f , they S to7 smcz--_ _'-_ e : will gain we1 . ght , This f ea _" L

. _ : d o ibted1.V p' : ; e V t e l ' f t s~

.__ 'w;,Ten lrom.desirin; to stop s: -: o k i _ _ g

i2 a _ ? S 'Li:rc•

2re' more ' likely to dis'cont 1nue cigarett e nk inb. +their daily cigarette volume .

According to a recent H.cW'-survey,, only 131of adult women.` have Qiven up smok ing , compared Kth M% of adi?l tmales . Even

assuming Som et - , ~rZ. t exaggerated fioL?res, i i: is obvious that men

to 13 .3°/ , among, oirls . The narrowing oap between the sexesin the early years is significant because it praceeds- =ewersmo?tiino differences between the sexes in adult years a~

?n the last four years, smoking among the 12 to 18' year aoeoroup increased from 14'a7'% to 15,7% among boys a-ri*,d from 8 .4%

girls accounting, for 2 growina proportion of teeZ),age smokers .

A:?d th ou o ' R ' o ' i ? e million a d ~ ~ ~ ~ l ts' a ' r e r e C 1 L I Z i =.t1'n Qt1'nQ Sr'!oslgg a'TL"L'':311y,.

teenagers . are beginning to smok e' l.n increasing Ylualbers, with

.

?` smoke h.e_1 ir-i hungry but 2.91 2.67 3.13

don' : - . - _ n t t o : e a t

worry about gai ni'no wzig` : t

TcL-' 1 FeL aleSmo' --s "~_o=-eYs Sko?; .ers

2'a5 2.67 3000 G~3 '

.

T; , ga-,e up s .oking„ i'd 2,83 7' _.57 3' ~J6

-{5. k:__, . - - t ! 1 , . ._l~~'~ - . , _ . . Ci : 2 t ~ " C Z ' ~ ~ ' - , 1

.> e . 1 . = '. '

S , o ~ _ , r _ _ . I - V ? J ' ; r 7 5 7 ' 5

'S: 6 ' r ° _ 3 L'a n ~'' f rorG1'5 ( ?~ ~'eis co''' pl Fr e ? y ' ) , i`oo~ Cd3 . . ~ ' i = a. _ e a co :71 e ~ . . el y~,~" " - ~



campaign for Kool Kinoo Copy emphasizes both that extralength means extra, coolness and that the appearahce is

stylishly long,and eleoanta

The choice of women's maaazines and the contemporary middle-

of-the-road, approach suggests that the target audience isprimarily the young housewife and the non-professional work-inQ woman,

ba attributed exclusively to women smo'c-ers .

Because adverti sir~a ior Kool Longs is not directed exclusivelyat women, the oro-:,i~ng, brand share (currently a't 1,57,) cannot :

2 ' . Eve 100"MM•Filter &iienthol

Ugly Cigarette - Smoke Pretty . Eve ."' The visuals sho~.~a cigarette

Copy lines include "The Lady has Taste"' an-d"rareweli to : t h e = , .

a ba&:ground~ of floT,,re_rs/plants or in tradi ttonal femininahobby situations .

packs frequently held' in a brightly nail-poli5hed b~nd against

.themselv'es have a floral design around the tilp .

ing an abstract of a very feminine woman's head . The cigarettesThe cigalrette pack has a' bright abstract _loral design surroLrnd-

h a pretty tip,, a pretty pack, and a rich but g~ztle flavor,•

The body copy emphasizes that since' a T~~ onwn likes to be surrounded

by pretty things, thz' ci*garette she sr ::okes sho-dld e_rp_ es s her

l cve of pretty th'ings o And Eve is the first truly fem? ~ . ?.ne cigare'

;vers rationale is that smoking historically has been a rale===-coative,and ~~~.asculine cioarettes look ugly ~ ; h ~ a n u s e :: by a

Therefore, Eve is, an attempt to ma'~e a cig~rette that

n=ze Wot-aan can feel com-f©rtable and attractive s-~~~o'd^go

1'?j ZCò~l acceptably fe.~~.le hoo'''es,

=_~ a S, is C'_reo't e'd to the' worGTI i-7:'lose ! i L °' rcvo1vas a!r"ouC ? d

` c'S' a +G"a'n, tJeiro pret t y, so'f _ , c U ~e~lni ?e a'nd o?~iu1-

----= -- . = dit i o_âl a2?'d very' feminine a'ppro a c l a , awer t?se - ' 1L1 Wo_e a~ S___~'en the _uò:~o't1o~.~ o~Leied~, _eied, a ho?'•oScopZ e.i_~~iir^?eJ Lvomzil'l s

0 ~ Ss~ T_ C. C~control C:T?r her ( ' : . , n?, iL:Li?:e ,

S s Deu}n' lac'-~~~usl.e~' siL?C: =5 ii t~O~~_ Ci'On! : i'v 7 1 ;ts s r'a r e has s'tabl~~ 1Z'ed a''i. Q'a,~ %3,, Q a2'~~ ~ CT; i.'Ct?' LZ1 CeiG_ =,or ('2 maZn',tôl v'ersio . . ' P . ,



3 . Virgin1a. Si ims

The campaign line r'Ycu''ve come a long way, bab, ; " """ hit the ;

cigar.ette markzt in 1968, just as t~ ;o~•~en~'s li'b was entering, theriationa~ln consciousness . The cigarett ¢ is posi'ti'oned special?y

for today's liberated woan_an -with a uziq,uz, s ; a .inoing image, The

a. ` ~ i

' s use hLT^_'•GJ'r to i ~ ~ ' : l ' ..'_•str'2t e.'_•str'2te the point that' women L ? o 'w have a'new lifestyle : :i`h better opportunity to exoress their potentialand their pz, sc . _ ? ! a lity and s a r ol:ing is one iean s' of self ehpresS,ion .

In one ca!~pai~ this new €reedom is contra~stzd' with~ i t h ~ p i c t u r e s of

v-oaen circa 1900 who : • - .-`Yz compromised r,~ ;hcn c`uoRt smoking. In arelated campaign„ the flavor (rich Virginia =lavor) and the physicaqualities '"(Iong, sliri)~ .aYe emphasized .

In addition to the woman's magazines, Virginia Sli'as also aduertisin Playboy, Ebony and the Sunday supplements .- This selection ofmagazines is unique for a-~;oman''s cigarette, showing a desire toreach working women and wouzien whose i;nter ests extend beyond thehome .

Since the brand's s introduct ion in 1908, Cz'e share has g-ro .,-n to 1,2

0 ! .7'7 , in the filter verszonand 0 .5% in the menthol version .. ' , - e

• Uirgixt~,a Sl, ms St~ "1972 1971 1970

Filter 0 .7% 0 ' . 6 % 0 . 6 ; ,

Menthol 0 . 5 0 .4 0 . 4

Total 1 . 2 ' 1 .0 1 . 0

1969 ~ 1968

0 . 3% 0' .1%

0.3 01

0.8 0'2

=__c Gppeal of t" ? rgir~-a Slins was exxpect.eC' to p_ra??el tst_ _~-~=-~g`_ ~-r,,_ t:~e STOmen s mo~rz~.. e n + ~ , ~ , ; . c ~ i ' ' .ch is n_ore in=1+~e_ .tia1~~ in tne 1aTMO a r

-- ---• T o tie%e=~1Tle ~,; i i e tha= this 1"eZa~_J,is.

o y~; e__S t5'a

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Accession No . 81-081

Copy No .

Issue&To

. TYPE REPORT: OANNUAL OSEMIANNUAL O COMPLETION QSPECIAL

DATE: March 31, 1981 PERIOD COVERED :

, .f

C

I

I,

REPORT TITLE :

WRITTEN BY

Young Smokers

Prevalence, Trends, Implications,

and Related'Demographic Trends

~My E. J onAPPROVED BY v,

Harry G. Daniel Carolyn JLevy

DISTRIBUTION :

Mr. R. Thomson MrJ . Zoler (NYO)Mr. H. Daniel MrT . Goodale (NYO)Dr. C. LevyMr. L. Meyer

KEYWORDS :

Smoking Prevalence, Youth, Young Smokers

Demographic Trends

i

_4



-2-

It is inevitable therefore, that industry sales will begin to decline within the

next few years . Thus, Philip Morris USA can sustain its past rate of growth

only by an acceleration of the rate of increase in market share . While this

news is not good for the industry, I believe we can use these data and other

data I plan to report on to good advantage in order to minimize the adverse

.eff ect on Philip Morris .

This report deals with only one of these trends-teenage smoking and

attitudes toward smoking, together with related demographics. Subsequent

reports will cover the social, economic and psychographic characteristics of

teenage smokers and the demographics of other significant age groups .

Because the major data: sources have just become available, and because of the

importance of these data to the company, I have elected to report the data in a

series of memoranda rather than wait and issue all of the material at once .

MEJ :yl

Attachments

CC : Mr . R . Thomson Mr . J . Zoler (NYO)

Mr.

Dr .

Mr.

H .

C .

L .

Daniel

Levy

Meyer

Mr. T. Goodale (NYO)

C

I

. . w .>~ . : . ~ . , ., _ . , _ . .. _ . . . . . . _ , . . w : :. ~ . . t ; : : ~ . . . . . .



Page

1

Teenage Smoking Prevalence 1968 -1974 3Teenage Smoking Prevalence 1975 -1980

Smoking Prevalance and Educational Aspirations 8

Race Differences in Smoking Prevalence 12

Regional Differences in Smoking Prevalence 16Future Smoking Expectations 18Reasons for the Decline in Teenage Smoking 20Conclusions and Implications 21Plans 22Attachment A

Description of Data Sources

Attachment B

Charts

k



Summary

It is important to know as much as possible about teenage smoking patterns and

attitudes . 'Poday's teenager is tomorrow's potential regular customer, and

overwhelming,majority of smokers first begin to smoke while still in their ; :

during which average daily consumption per smoker increases to the average adult

teens . In addition, the ten years following the teenage years is the period

level . The smoking natterns of teenagers are particularly important to PhiLip a~ ~X~ ~

: ~ t r ,

Morris : Of the eleven packings of which the median age of smokers is under age ',,I

30, seven are Philip Morris packings, and the share index is highest in the

youngest age group for all Marlboro and Virginia Slims packings an& for B&H

Lights and Menthol .

Furthermore, it is during the teenage years that the initial brand choice is

made : At least a Dart of the success of' Marlboro Red durinQ its most rapid

growth period was because it became the brand of choice among teenagers who then

stuck with it as they grew older - this combined with the rapid growth in the

absolute number of teenagers . Between 1967 and 1976 the number of 15-19

year-olds in the U .S . increased 18 percent, and there was also an increase

during at least part of that period in the percent of teenagers who smoked

cigarettes .

Average daily consumption of these young,smokers also increased, so that between~

1968 and 1974 the number of 12-18 year-olds who smoked ten or more cigarettes

per day more than doubled. Industry sales were also aided by the fact that this

periodwas one of rapid increase in the number of people aged 20 to 24 - ages

during which average daily consumptionlincreases .

The prevalence of teenage smoking peaked in 1976-77 and is now declining .

Furthermore, the number of 15-19 year-oldis also peaked in 1976 and will decline

19 percent during the next decade .

.

The effect of this decline in the prevalence of teenage smoking will not become

apparent for a few years . It will continue to be masked by the fact that there

will be a continued increase in the number of smokers in their 20's who have

high prevalence rates and are reaching ages at which the average daily

consumption per smoker is near its maximum . In addition, the number of people

reaching the prime quitting ages (ages 45-54) will continue to be low as a

result of the small number of births during the Depression .



Chart 1) . There will be a decline in the number of people, and an even greater

In a very few years, however, there will be a reversal of these trends (see

consumotion normally increases - the number of 20-24 year-olds will peak in

decline in~ the number of smokers, in the age group in which average daily

increase (which too will accelerate) in the number of people reaching the ages ;

1981, and then begin an accelerating decline . Beginning in 1985 there will be an

at which people typically begin, to quit smoking or cut down (ages 45-54) . We

will no longer be able to rely on a rapidly increasing pooL of teenagers from

which to replace smokers lost through normal attrition .

The decline in the prevalence of teenage smoking has been sharper among boys

than among girls, and now more girls than boys smoke cigarettes . The decline in

teenage smoking has been particularly pronounced among blacks, which may account

for the decline in Kool's market share. The Northeast has the highest

prevalence of teenage smoking and the West has the lowest . Between 1975 and

1979 the proportion of teenagers who say they "definitely will not" be smoking

five years hence has increased dramatically . The major reasons for the decline

are the perceived health~hazards of smoking and peer pressure not to smoke .

appear to be the least vulnerable of all the companies, as will be discussed

later in this report .

Because of our high share of the market among the youngest smokers, Philip

Morris will suffer more than the other companies from the decline in the number

of teenage smokers . For at least the next decade, however, the populatiom

trends will have a much more powerful influence, and in this regard we would

.



The best data.I have on the overall prevalence of teenage smoking for the. . . , . , . .. „ ,. ,

1968-74 period comes from studies conducted by Chilton Research Services

Teenage Smoking Prevalence 1968-1974

f or the National Clearinghouse on Smoking and Health :

M1 TABLE 1Percent who are "Current Regular Smokers"* by age, 1968-1974

1968 1 . 8 1 3 . 3 2 4 . 4

1970 4. 4

17. 0 30 .0

19723 .7 17 . 0 27 . 8

1974 4 . 6 19 . 2 28 . 4

*A current regular smoker was defined as someone who smoked' one or

more cigarettes per week .

Among boys, smoking prevalence increased from 1968 to 1970, declined from 1970

to 1972, and then remained essentially constant through 1974 . There was a

steady and dramatic increase in the number of girls who started smoking, as

shown in Table 2 .

TABLE ' 2~

Percent of 15-18 year-olds

who were "Current Regular Smokers"1968 - 1974 !

Boys Girls Total N~1968 23.6 141 18 .8 ~1970 2 8 '.4 186 23 .5

C. !~1972' 24.0 208 22 . 4 ~1974 24.6 230 2 3 ' .8 N0



4

Because the absolute number of 15-19'year-olds increased 14 percent from 1968 to

1974, the number of teenage smokers increased~ 44 percent during this period' .

There was also an increase in the number of cigarettes these young

smokers smoked, and between 1968 and 1974 the percent of young smokers

who smoked 10 or more cigarettes per day nearly doublied, as shown in Table 3

bel'ow . Here too, the increase among gi'rls was much greater thanithat amongg

boys .

TABLE 3

Percent of All 12-18 year-olds

Who Smoked 10 or More Cigarettes per Day

Boys - Girls Total

1968 6 . 7 3 . 3 5 . 0

1970 8 .0 5 .2 6 .6

1972 8 . 5 6 . 3 7 . 4

1974 10 .6 8 .6 9 . 6

Again, because of the increase in the absolute number of teenagers, the number

who smoked a halif-pack or more per day increased 120 percent .

Teenage Smoking Prevalence 1975-1980

Until;very recently there have been no good data on teenage cigarette smoking

for the years after 1974 . I have recentlry come upon two excellent sources of

data on cigarette smoking . The most useful data are from the Survey Research

Center at the University of Michigan. Each spring since 1975 questionnaires

have been administered to~hi'lgh school seniors in selected schools throughout the

country . The response rate has ranged from 77 to~85 percent and the total

sample size from 15,0001to 19',000 ( :A complete description is contained'lin~

Attachment A) . The major shortcoming of the data is that they do not include

the approximately 15-20 percent of American youth who drop out of school', beflore

the spring of their senior year in highischool . More informatibn will be givem

later about this group .

i



The striking thing is that, by whatever measure is used to describe smoking

status, the percent of high school seniors who smoke is declining . While the

percentage of seniors who have ever smoked declined significantly only in the

1978-1979 and 1979-1980 time periods, there have been substantial declines

since 1977 in all of the other measures of smoking status . Table 4 shows the

various measures of cigarette smoking prevalence . Chart 2 shows the

percent who smoke& at all in the 30 days prior to the survey, and the percent

who smoked one or more ; ten or more, and 20 or more cigarettes during that

30-day perio& Chart 3 shows the percent of high school seniors who reported

that they were current regular smokers and the total percentage of those

reporting that they were current regular and current occasional smokers .

Clearly, by whatever measure is used to assess smoking prevalence, it peaked

in 1976 and' 1977 and then began an acceLerating decline .

TABLE 4

Percent of Seniors who Ever Smoked, Ever Smoked Daily, and'Quantity Smoked in Past 30 Days

Class Class Class Class Class Classof 1975 of 1976 of 1977 of 1978 of 1979 of 198

Ever Smoked 73.7 75.4b 75.8 75.3 74.0b 71.0

Smoked in last 30 days 36.8 38.8b 38.5 36.7a 34.4a' 30.

One or more per day 27.0 28.7b 29.0 27.5b 25.3a' 21.Ten or more per day 18.0 19.1c 19.3 18'.5 16.4a 14.3

20 or more per day 9.7 9.9 10.4 9.7c 8.4a 74

Self-definition :

Current Regular Smoker 22.0 23.5b' 23.9 22.8c 20.3a 17.4

Current Regular orOccasional Smoker 38.4 40,.4b 40.2 39.Oc 36.8a 32.9

N 10,100 14,600. 15,500 18,450 16,200 16,500

aSignificantly different from preceding year p< . 0 0 ' 1

bSigni~ficantly diff erent from preceding year p< .01

cSignificantly different from preceding year p< .05

The decLilne in the percent of high schooll seniors who smoke has been most

pronounced among males, and began a year earlier among males than females, as

shown in Table 5 and Chart 4 . In addition, the females now report that they

smoke more cigarettes per day than do the males .

_f i_?9.a



TABLE 5

Percent of Seniors by Smoking Status, by Sex 1975-1980

6

Class Class Class Class Class Classof 1975 of 1976 of 1977 of 1978 of 1979 of 1980

Have Smoked

in Last 30 DaysMale 37.4 37.7 36.7 34.5 31.2 268Female 35.9 39.1 39.7 38.1 37.1 334

Smoked One or More

Cigarettes/day

in :Last 30 DaysMale 27.1 27.9 27.3 26.0 223Female 26.3 28.8 30.1 28.2 278

1 8 . 6

23 .4

Smoked 10 or More

Cigarettes/day

in Last 30'DaysMale 198 19.8 19.9 19.0 15.4 135Female 16.1 18.0 19.0 18.0 17.1 147

Self-definition ,Ctirrent Regular SmokerMale 225 22.5 22.1 21.1 17.4 150Female 21.5 24.1 25.2 24.0 22.5 192

Self-def inition

Current Regular or

Occasional SmokerMale 38.8 38.9 38.4 36.3 33.2 293Female 37.6 41.4 41.6 41.2 39.6 357

1000390813

Changes have also occurred in the ages at which these high school seniors begin,

to smoke on a:daily basis . In 1976 more boys than girls smoked'n in all grades

to grade 12, when the percent of girls who smoked .daily exceeded that of the

boys. In 1979, by contrast, smoking by girls exceeded that of boys

beginning in the 9th grade . For both sexes the modal grades of initiationlof

smoking has remaine&grade 9, but between 1976 and 1979 there has been an

increase in the smoking incidence of seventh and eighth graders--dramatically

in the case of the girls . Data are shown in Table 6 andChart 5 .

up

so



TABLE 6

School Grade in which High School Seniors First Began Smoking

on a Daily Basis, by Sex, 1976 and 1979 (Cumulative Incidence)

Males Females

1976 1979 1976 1979

Grade 6 or below 5 . 7 6 . 5 3 .5 3 . 4

Grade

Grade

8 or below

9 or below

16 . 4

27 .0

17 . 8

2 5 . 1

12 . 6

2 3 .0

17 . 0

27 . 1

Grade 10 , or below 34 . 5 31 . 5 32 .2 3 5 . 5

Grade

Grade

11 or below

12 or below

41 . 5

44 . 6

36 .4

3 8 . 8

41 . 0 1

46 . 1

42 .4

46 . 5

Never Smoked Daily 5 5 . 4 6 1 . 2 5 3 . 9 5 3 . 5

It was mentioned above that these data refer only to high school seniors and

therefore exclude the approximately 15 - 20 percent of American youth who do not

complete high school . Their exclusion, does not materially affect the results

for two reasons :

1) These dropouts, as noted, constitute only about 15-20 percent of the teenage

population and this proportion has not changed during the last ten years, and

2) Other studies conducted' in 1970 and in 1979 show about the same ratio

between the smoking prevalence of dropouts and of high school graduates, with

dropouts roughly 30 to 40 percent more likely to smoke by the time they are

17-19 years old than those who do complete high school . If we adjust the data

for high school seniors to include the dropouts, the total smoking prevalence

for American 18 year-old's would be as follows :

TABLE 7

Percent of 18 year olds

Who Smoke One or More Cigarettes per day .

Males Females Total

1975 2 8.9' , 27 . 9 2 8 . 4

1976 29 . 8 30 . 4 3 0 1 . 1

1977 28 . 9 3 1 . 8 3 0 1 . 4

©0

1978 27 . 5 29 . 9 28 . 7 O1979 2 3 . 7 2 9 . 5 26 . 6

C a

l> . r ~ , .

..~1. . . _ , . . . . . _ . . .. _ . J - a - t ~ a . . . . . . . . . . ~ w ~- .~~lfi~' ::.^t, .. . .



8

Smoking Prevalence and Educational Aspirations

It has long been;known that among adults, smoking prevalence is inversely

related to educational attainment . It is therefore not surprising that smoking

prevalence among teenagers is also related to educational aspirations, as shown

in Table 8 and Chart 6 .

TABLE 8

Percent of Seniors who Ever Smoked, Ever Smoked Daily

Quantity Smoke&in Past 301Days

and

by Educational Aspirations, Class of 1979

Plan to Complete

College

Do Not Plan

4 years of College

Ever Smoked 68 . 1 1 80 . 1

Ever Smoked Daily 43 . 2 66 . 0

Smoked in last 30 days 26 .0 43 .0

One or more per day 17 .0 33 . 9

Ten or more per day 9 .7 23 . 3

20 or more per day 4 . 4 1 2 . 7

Self-definition :

Current Regular Smoker 13 .1 27 .5

Current Regular orr

Occasional Smoker 2 9 ' . 4 ~ 44 . 2

It is interesting that the differences between the coLlege-bound~ and the

non-college-bound increase with the degree of commitment to cigarette smoking .

Thus those intending to complete four years of college are about 85 percent as

likely to have ever smoked'~as the non-college group, but are about half as

likely to have smoked:at least one cigarette per day in the past 30 days, and

are only about a third as likely to smoke a pack or more per day . Put another

way, of the non-college group who ever smoked, 51 percent smoked in the 30 days

prior to the survey in contrast to 34 percent of the college bound~ever-smokers .

Thus while the trial rates for the two groups are about the same, the

college-bound are less likely to become daily, smokers .

1000390815

Another valuable source of data is provided by the Cooperative Institutional

Research Program at The University of California at Los Angeles . Data are based

on questionnaires administered to entering freshmen in 300-400 colleges and

universities throughout the country . Sample sizes are 180-190,000 (Details are

shown in Attachment A). One series of questions concerned whether the

respondents had engaged in various activiti~es frequently, occasionally, or not

at all during the previous year, i .e ., their senior year in high school for

92-94 percent of the respondents .



The questions concerned such activities as jogging, drinking beer, staying up

all night, working in political campaigns, and smoking cigarettes .

Unfortunately, these questions were not asked every year and we therefore have

no data for the years from 1972 through 1977 . It appears that there was a

steady decline in the overall prevalence of cigarette smoking among college

f reshmen from 1966 through 1979, but, as noted, we know nothing about the

perio&from 1972 through 1977 . It is clear, however, that the prevalence in

1979 was substantially lower than in any year for which data are available .

Chart 7 shows the college freshmen data as well as the data for high school

seniors with and without college plans .

The college data also show striking differences between the sexes, as shown in

Table 9'and Chart 8 . While smoking prevalence among college freshmen males

appears to have declined steadily since 1966, the prevalence among females

declined from 1966 to 1968 (perhaps in response to the Surgeon General's

report), and then began to increase . These data, like the high school senior

data, show a substantially higher smoking prevalence among females than among

males .

TABLE 9

~

Percent of College Freshmen Who

"Smoked Cigarettes Frequently" During

the Past Year"

Males Females

~O~~Total

1966 19.4 132 16 . 6

1968 18.4 120 1 5.6 ~1 9 7 1 ~ 16.8 127 14 . 9

1978 10.6 171

~13.9 ~

1979 9.7 1'67 1 3 .3

It is not only the presence or absence of col;lege plans that is predictive of

cigarette smoking, but also the type and quality of the school chosen. In

general, people who choose to attend!two year colleges have lower educational

aspiration than those who attend'four year institutions . It is also generally

true that people with higher aspirations will attend more selective schools .

The college data show an interesting gradation, with the highest prevalence of

smoking in the two,year institutions and the lowest in the universities with the

highest selectivity, as shown in Table 10 (Selectivity is determined by the

average SAT scores of entering freshmen in each institution) .

:



1 2

TABLE 12

Percent Regular Cigarette Smokers

by Post-High School Environment

Smoked Smoked OneDuring Year After

N High School High School

E

I

College 82 7 1 9 2 5

Trade School 117 3 1 , 38

Employed 559 53 55

Military 144 54 60

Other* 151 5 5 5 9 '

Total 1796 36 4 1

*Unemployed or stilllin High School

Iit is clear, therefore, that there is a strong negative reliationship between

educational attainment and smoking prevalence and that among males this

relationship is stronger than, in the past . I't is also true that those who do

smoke are beginning to smoke at earlier ages, particuliarlry the females . This

appears not only in the comparison of the 1976 and'1979 data but also when those

data are compared to data for the adult population .

It is also clear that high school dropouts are indeed more likeliy to smoke than

those who complete high school . We can also answer a tentative yes to the

question as to whether young people continue to take up cigarette smoking after

they get to college . The question as to whether this is now,less true than in

the past must awai't additional data .

Race Differences in Smok3ng Prevalence

Among high school seniors, blacks are much less likely to smoke cigarettes than

whites. This appears to be a very recent development . The 1970'Youth in

Transition study, while based'on a smallier sample, showed prevalence rates

("almost every day") in their senior year of 37 percent among white males andi41

percent among black males . The present data on high school seniors show that in

1976 a larger (though not sigRificantly so) proportion of blacks than whites

~ . . . . . : .



smoked within the 30 days prior to the survey. The decline in the prevalence of

smoking among blacks appears to have begun earlier than among whites and has

been more pronounced . Between 1976 and 19801the number of whites who described

themselves as current regular smokers droppe&5 .8 percentage points, from 23 . 9

percent to 18 .1 percent . Among blacks the decline was 9 .7 percentage points,

to 25 .2 percent among blacks . Data showing various measures of smoking

prevalence for blacks and whites are shown in Table 13 and Chart 9 . -

the past 30 days declined from 38 .3 to 31 .0 percent among whites and from,39 .7

from 20 .7 to 11 .0 percent . During this perio&those who said they had smoked in

TABLE 13

Percent of Seniors by Smoking Status, by Race, 1976-1979

Class Class Class Class Classof 1976 of 1977 of 1978 of 1979 of 1980

Have Smoked

in Last 30 Days

White 38 . 3

Black 3 9' . 7

Smoked One or More

Cigarettes/day

in Last 30 Days

White 8 . 8

Black 26 . 7

Smoked 10 or More

Cigarettes/day

in Last 30 Days

White 0 . 1

Black 1 1 . 7

Self-def ini tion

Current Regular Smoker

White 23 . 9

Black 20 . 7

Self-definitionCurrent Regular or

Occasional Smoker

White 0 . 9

Black 37 . 3

38 . 4 37 .0 34 .9 3 1 .0

34 . 4 31 . 5 28 . 7 25 . 2

'

29 .0 27 .7 25 .9 21 .8

23 . 7 22 . 1 ! 19 .4 - 15 .9

20 .6 19.7 ' 17 . 3 15 .3

1 0 1 . 2 9 . 5 8 . 4 6 . 1

24 .3 23 .5 20 .9 18 .1

1 7 .7 16 .3 13 . 5 11 .0

.

4 0 .5 39 .8 37 .7 33 .6

34 . 8 3 1 .7 28 . 5 27 .2

. u , : . . . . . - s



1 4

Even though a larger proportion of blacks than whites drop out before completing

high school, the difference is not great enough to alter the basic conclusion

that smoking prevalence is now lower among black teenagers than among whites .

Blacks are not only less likely to smoke than whites, but the average daily

consumption of those who do smoke is lower than among whites . We have long

observed this to be true of the smokers on the POL National Panel, and the high

school senior data also show this to be true . In 1976, 20 .1 percent of the

whites and 11 .7% of the blacks smoked ten or more cigarettes per day . By 1979,

the percentages were 15 .3 and 6 .1 respectively .

It appears that education is much more highly related to cigarette smoking among

blacks than among whites . In every year for which there are college freshmen

data the smoking prevalence in predominantly black institutions is substantially

lower than in all institutions, as shown in Table 14 and Chart 10 .

TABLE 14

Percent of College Freshmen Who

"Smoked Cigarettes Frequently" During

11

the Past Year

All

Institutions

Predominantly

Black

Institutions}

1966 16 . 6 N .A .

1968 15 . 6 10 . 4

1971 14 . 9 10 . 9

1978 13 . 9 10 . 4

1979 13 . 3 10.2 ,It is also of interest that, contrary to the situation prevailing in all

institutions, the prevalence of cigarette smoking inpredominantly black

institutions changed very little between 1968 and 1979 .



Taken together, these data suggest that a larger proportion of blacks than

whites smoked in the early 1970s but that the sharper decline in smoking

incidence among blacks has now resulted in a larger proportion of smokers among

whites . When blacks do begin to smoke on a daily basis they begin, on the

average, about a year later than the whites, as shown in Table 15 .

TABLE 15

School Grade in which Seniors First Began Smoking

on a Daily Basis, by Race, 1976 and 1979

1976 1979

White Black White Black

By Grade 6 4 . 6 3 . 8 4 . 8 4 . 0

By Grade 8' 1 4 . 8 10 .0 18 . 3 11 . 1

By Grade 9 25 . 2 18 . 6 27 . 1 1 9 .5

By Grade 1033 ' . 4 28 . 0 34 . 0 2 8 .8

By Grade 11 4 0 . 9 3 8 . 2 40 . 4 32 .9

By Grade 12 4 4 . 7 4 4 .6 4 3 .4 _ 37 .6

Never Smoked

Daily 55 .3 5 5 .4 5 6 .6 62 .4

If these trends continue, this more rapi&decline among blacks in the percent

who smoke, coupled with their much lower rates of consumption, will make blacks

a less significant factor in the market than in the past, in spite of the fact

that the black population is growing more rapidly than the population as a

whole. Because blacks, and especially young blacks, constitute a

disproportionately large share of the menthol market, a continuation of these

trend's could well signal a coming decline in menthol market share . It is

interesting to speculate as to what extent this decline in smoking prevalence

among black teenagers has contributed to the decline of Koo1 .

. . . : : ~ - ._ _: y . k c r ~ 4 .' . : ~.



1 6

Regional Differences in Smoking Prevalence .

By whatever measure of cigarette smoking one chooses, the West has by far the

lowest prevalence of smoking among high school seniors,'and on most measures th e

Northeast has the highest (Table 16) . This pattern was true in 1968 and 1970

and in all years from 1975 through1980 (no data are available on high school

students for 1971-74) . Curiously, in 1970, adults in the West had a higher

prevalence of cigarette smoking than adults in the other regions, while the

teenage boys in the West had the lowest rates . What makes this of interest is

that the conventional wisdom has long held that parental smoking behavior is one

of the best predictors of adolescent smoking behavior .

TABLE 1 6

Percent of Seniors whoEver Smoked, Ever Smoked Daily and

Quantity Smoke&in past 30 Days, By Region, 1980

North .

East

North

Central South West

Ever Smoked 71 .7 73 .6 71 .6 64 . 2

Smoke&in Past 30 days 34 .1 31 .'5 31 .8 21 . 1One or more per day 24 .2 22 .0 22 .7 1 3 .STen or more per day 1 7 .0 15 .4 1 4 .6 8 . 3

20 or more per day 8 .9 8 .4 7 .5 3 . 5

Self-definition :

Current Regular Smoker 20 .1 1 8 .5 1 7 .8 10 . 7

Current Regular or

Occasional Smoker 35 .5 34 .6 33 .9 24 .0

N = 3877 4873 5049 272 6

Aso in 1970, a considerably larger percentage of the boys inithe South and

Mdwest became regular smokers one year after high school than did boys in the

Northeast and West. (Seven percent in the South,, six percent in the Mdwest,

two in the Northeast and one in the West .) This is consistent wth the 1972

college data (reported below) in which the regions, ranked'~ in descending order

of smoking prevalence, were Northeast, South, Mdwest, and West (Table 17) .Q 7

w



1 7

In the six year period for which we have the best data on high school seniors

(1975-198'0) the prevalence of,smoking peake&one year later in~the Northeast

than in the rest of the country (1977 in the Northeast and 1976 in the other

regions) . Declines from the peak year have been highest in the Northeast and

lowest imthe West, where the peak was already quite low (Chart 11) . High

school students in the Northeast also begin to smoke at amearlier age and,

although regional differences became less pronounced during the period,

Southerners in 1976 were the latest to begin to smoke .

The college freshmen data show roughly the same pattern, with~ those in the

Northeast most likely and those in the West least likely to say that they smoked

cigarettes during the past year . The college freshmen data, however, show

higher rates of smoking prevalence in the South than in the North Central

region, the reverse of the pattern observed among,high school seniors . This may

well be because of diff erences between these two regions in the proportions of

entering freshmen attending two-year as opposed to four-year institutions .

Two-year institutions have long accounted for a larger proportion of first year

college students in the South :than in the North Central states and, as noted

above, the smoking prevalence is higher in two-year colleges . In addition, a

fairly large proportion of high school graduates in the Northeast go to college

in the South. Data for entering college freshmen are shown

Chart 12 .

TABLE 17

Percent of Entering College Freshmen Who

in Table 17 and

Smoked Cigarettes During the Previous Year }i

1968 1979 OMales Females Males Females

OWNortheast 20 . 8 16 . 1 11 .1 21 .4

0an

Northcentral 17 . 1 10 .2 8 . 3 1 2 .4 ~S outh 19 .6 1 11 .0 9 . 4 1 1 3 .9 i~West 15 . 9 9 .2 7 .2 10A

There are also regional differences in

per day by the high school seniors who

the average number of cigarettes smoked

do smoke, and again we find that average

1979, as shown in Table 18 .

daily consumption is highest imthe Northeast and lowest in the West, with the

Northeast and North Central regions showing the sharpest decline from 1975 to



18

TABLE 18

Average Daily Cigarette Consumption

Per Smoker, 1975 and 1979, by Region*

1975 1979Northeast 13.3 123

North Central 12.5 116South 11.8 115West 111.2 11'~3

*Based only on those who smoke one or more cigarettes per day .

Future Smoking Expectations

In the National Institute of Education longitudinal study it was found' that the

best predictor of future smoking behavior of teenagers was the respondent's own

assessment of the likelihood of his smoking in the future . For this reason it

is illustrative to look at the responses of the highischool seniors to the

question "Do you think you will be smoking cigarettes five years from now?"

Data for the classes of 1975 through 1979 are shown in Table 19 and Chart 13 .

TABLE 19

Responses to the Question "Do you think

you wilil be smoking cigarettes five years frominow?"'

Class

of 1975

Class

of 1976

Class

of 1977

Class

of 1978

Class

of 1979

Definitely will 1 . 0 1 . 2 1 . 5 0 . 6 0 . 6

Probably will' 27 . 4 20 . 5 18 . 2 16 . 6 14 . 4

Probably will not 31 . 0 28 . 1 29 . 4 28 . 2 27 . 5

Definitely will not 4 0 .6 50 . 1 50 . 9 5 4 . 5 5 7 . 4



20

TABLE 21

Percent of Seniors Who Said They "Definitely Would" or

"Probably Would" Be Smoking Cigarettes

. Five Years From Survey Date

North

East

North

Central South West

1975 3 8 ' . 7 27 . 6 24 .4 21 . 7

' 1976 23 . 1 23 . 0 24 . 0 12 . 8

1977 22 . 8 20 . 6 19 . 1 13 . 4

1978 19 . 6 18 . 4 1 7 . 2 10 . 6

1979 16 . 7 16 . 9 16 . 5 6 . 9

Percent Change (1975-1979) -57% -3 9% -3 2% -68%

Reasons for the Decline in Teenage Smoking

There is no question but that peer pressure is important in influencing the

young not to begin smoking . A decade and more ago it was a major reason why

teenagers began to smoke . Now it is a major reason for their not beginning to

smoke . Perceived parental disapproval of teenage smoking has remained constant

over the past five years, as has the level, of teenagers' own disapproval of

adulit smoking . Perceived peer disapproval of teenage smoking, however, has

increased sharply in 1980 (Chart 16) .

This decline in teenage smoking is also attributable in large part to the anti-

smoking propaganda : The high school seniors were asked "How much do youlthink

people risk harming themselves (physically or in others ways),, if they . . .Smoke

one or more packs of cigarettes per day ." The percent answering "great risk"

increased from 51 percent in 1975 to 65 percent in 1980, with the sharpest

increases in 1976 and 1979 . The perceived risk of smoking one or more packs of

cigarettes per day is now 20 percentage points higher than the perceived risk of

smoking marihuana regularly, and is higher than the perceived risk

heroin once or twice (Chart 17) . '



2 1

Conclusions and Implications

The decline in the percent of teenagers who smoke, their decreased levels of

consumption, and the decline in their absolute numbers mean that the industry

can no longer rely on an ever increasing pool of teenage smokers to replace

adult smokers lost through natural attrition . The particularly sharp decline

in the percent of black teenagers who smoke suggests a future decline in menthol

market share, and the overall decline in teenage smoking, particularly among

males, will undoubtedly have some adverse effect on Marlboro .

This decline in teenage smoking, combined with (1) the decline in the number of

20-24 year-olds, (2) the end of the decline in the number of 45-54 year-olds,

and, (3) the end of the steady increase in the average daily consumption per

smoker, should cause industry sales to begin to decline in the next five years .

By the mid-1980's, the number of 25-29 year-olds (ages during which average

daily consumption increases to the average adult level) will also begin to

decline, and the number of 45-54 year-olds (the prime quitting ages) will begin

to increase sharply . These trends should cause a fairly substantial decline in

industry sales in the last half of this decade .

While the news is bad for the industry, it is not as bad for Philip~Morris .

Because we have our highest share index among the youngest smokers, we will

suffer more than the other companies from the decline in the number of teenage

smokers . Over the next decade, however, the population trends will have far

more impact on cigarette sales, and in this regar&we are well positioned .

We have a high share of smokers under age 30, an&, although they will begin to

decline in number, the increased'~ average daily consumption of smokers in their

20's will, other things being equal!, result in increased unit sales to those

younger age cohorts even after total industry sales begin to decline . To the

extent to whdch we can hold on to our present smokers, or catch them with

another of our brands when they switch, we are the least vulnerable of the

companies to these population trends . Of our brands, B & H appears most

vulnerable .

00



PLANS

1 . A total of 12 questions concerning cigarette smoking were asked in

the Survey Research Center (SRC) study of high school seniors (see

Attachment A) . Four were covered in this report and I plan to cover

the rest in subsequent reports or memos .

2 . The published data from the SRC breaks out the data only by four

single variables (sex, race, region, and college plans) . An

analysis of combinations of the variables would be useful, as would

crossing the cigarette smoking data with the 18 socio-economic and

behavioral characteristics covered in the studies . Accordingly, I

have prepared cross-tabulation formats and asked for a price quote

for these breakouts for a more detailed analysis .

3 . It i~s planned' to summarize the results of journali articles on

psychological and behavioral correlates of teenage_ cigarette

smoking .

4 . After additional young panelists are recruited for the National

Panel we plan to conduct a psychographic study of 18-21 year old

smokers and nonsmokers using the Edwards Personal Preference

Inventory to see if smokers of different brands, types or delivery

levels differ onithe needs measured by that instrument .

5 . Computer tapes containing data from other surveys have been ordered

and those data will be studiediand reportedion .



ATTACHMENT A

Description of Data Sources

In the past we have had to make do with data on teenage cigarette smoking from

small samples using techniques that were frequently questionable . Because the

major data sources used in this study of teenage smoking are the best I have

seen, a description of these sources seems appropriate .

Survey Research Center Data on High School Seniors

The most valuable source is the data on high school seniors from the Monitoring

the Future project, conducted by the Survey Research Center (SRC) of the

University of Michigan . The basic research design for this study involves

annual data collection from high school seniors during the spring,of each year,

beginning with~ the class of 1975 . Each~data collection takes place in

approximately 125 public and' private high~schools selected to provide an

accurate cross-section of high school seniors throughout the conterminous United

States .

The procedure for securing the sample is a multi-stage one. The first stage is

the selection of 74 primary areas, including the 12 largest metropolitan areas

which contain about 30 percent of the U .S . population. These are the same

sampling areas that are used for the interview studies conducted by the SRC .

The second stage is the selection of schools within the sampling areas . In~

major metropolitan areas more than one school is usually included . The third

stage is the selection of the students withimthe school . In schoolis with fewer

than 400 seniors, all of these are usually surveyed', and in larger schools a :

random sample is selected . Each year half of the schools are newly selected and

the other half are carry-overs from the previous year . In this way the half-

samples can be compared to see if any observed year-to-year changes were the ~

result of the use of different schools, and so far the half-samples and total Q

samples have yielded virtually identical results . These procedures have 0Cresulted in the sample sizes and student response rates shown below.~

GbWL&

1

. : ~ . ~ . ~ . _ , . .



Sample Sizes and Student Response Rates'

1975 1976 1977 1978

Number of Public Schools 111 108 1 0 8 ' 111Number of Private Schools 14 15 16 20

Total Number of Schools 12 5 12 312 4 13 1

Number of Participating Students 15,792 16,678 18,436 18,924Student Response Rate 78% 77% 79% 83%

Questionnaires are administered in the classrooms by SRC personnel and students

are repeatedly reassured as to the confidentiality of the data . Five separate

questionnaires are used and contain a total of about 1300 variables . Some of

the variables, including all of the demographic variables and the major

questions on cigarette, allcohol and drug usage, are contained on all five

questionnaire forms . The questions on cigarette smoking asked on all five

questionnaires were :

1 . Have you ever smoked cigarettes?

Never

Once or twice

Occasionally but not regularly

Regularly in the past

Regularly now

2 . How frequently have you smoked~cigarettes during the past 30 days?'Not at all

Less than one cigarette per day

One to five cigarettes per day

About one-half pack per day

About one pack per day

Two packs or more per day



Other questions regarding cigarette smoking were asked on some but not all of

the questionnaires :

1 . When did you FIRST

. . . .Smoke cigarettes on a daily basis?

2 . Have you ever tried to stop smoking and found that you could not?

3 . Do you want to stop smoking now?

4 . Do you think you will be smoking cigarettes five years from now?

5 . How many of your friends would you estimate

. . . .Smoke cigarettes?

6 . At any time during the LAST 12 MONTHS, have you felt in your own mind that

you shoul&REDUCE or STOP your use of

. . . .cigarettes?

7 . Do you think that people (who are 18 or older) should be prohibited by lawfrom doing each of the following?. . . .Smoking tobacco in certain specified public places .

. Do YOU disapprove of people (who are 18 or older) doing each of the

following?

. . . .Smoking one or more packs of cigarettes per day

9 . How do you think your PARENTS feel (or would feel) about your doing

the following things?

. . . .Smoking one or more packs of cigarettes per day

each of

10 . H'ow do you think your CLOSE FRIENDS feel (or would feel) about YOUR doingeach of the following things?

. . . .Smoking one or more packs of cigarettes per day11How much~do your think people risk harming themselves (physically or inother ways if they . . . .

. . . .Smoke one or more packs of cigarettes per day

Two of these questions (1 and 4 above) have beenicovered in some d'etaiL in the

present report, and four others (questions 8, 9', 10, 11) in somewhat less ~A

detail . The others will be covered in subsequent memos or reports. C,00C d



-4-

Cooperative Institutional Research Program Data on College Freshmen

These data are useful because of the size and representativeness of the sample

and the time period covered (1966 to date) . Unfortunately there is only one

question on cigarette smoking and it was not asked in the surveys inA972

through 1977 . The data are reported separately for men and women, and for 18

different groupings of institutions . The major stratifying factors are race

(predominantly black vs . predominantly white), type (two-year college, four-

year college, university), control (public, private-nonsectarian, Catholic, and

Protestant), andithe "selectivity level" of the institution, which is an „

estimate of the average academic ability of the entering class (based onithe

average SAT scores of incoming freshmen) .

Virtually all institutions that have entering freshman classes are invited to

participate (2688 were invited in 1979 and 593 accepted'), but only the data from

those where the coverage of entering freshmen is judged to be representative are

used . Four-year colleges are include&if over 85 percent of their first-time

full-time freshmen complieted the form, ; universities must have 75 percent

parti'lcipationiand two-year colleges 50 percent . A large percentage of

institutions are regular participants : of those participating in the 1978

survey, 93.3 percent participatediagainlin the 1979 survey . For example,

Princeton, CUNY, VPI and VMI have participated all 14 years, the Naval Academy

for the last ten years, and the University of Richmond for the last four years .

An elaborate weighting procedure is used to compensate for the disproportionate

sampling of .institutions within each stratification cell

response rates . The number of institutions and students

included in the analysis are shown below .

and'for the different

participating and

Institutions and Students Participating and'Includled Q1966 1971 1978! 1979 0(=

Institutions Participating 307 48 7 566 560 (a

Institutions Included 251 326 38 3 362 0G 5W

Students Participating 254,48 0 28 8 ,526 28 9,641 28 9,8 14 ~Students Included NA 171,509 18 7,603 190,151



- 5 - -

The qiuestionnaire is administered during registration, freshman orientation, or

the first few weeks of classes and covers a wide range of demographic data but,

unfortunately, includes only one question on cigarette smoking : It was embedded

in a "list of things that students sometimes do," and responses were frequently,

occasionally, or not at all .

The 1970 Youth in Transition Longitudinal Study

This study was also conducted by the Survey Research Center . Although the data

contained in it are over ten years old, this study is of interest because it

contains longitudinal data, whichy when used in conjunction with the more

recent, but inferior, National Institute of Education longitudinal study (see

below) provides some valuable insights . The study deals with attitudes,

behavior, and demographic and socio-economic factors related to the use of

alcohol, cigarettes and drugs by boys in high school and one year after high

school . The study followed a panel of 2200 boys from the Fall of 1966, when

they were in~ the tenth grade, to the Spring of 1970, a year after high school

graduation for the great majority . The sampling procedures for selecting the

participants were identical to those described for the Survey Researc4Center

study describe&above . The initial contact consiste6of a two-hour personal

interview, a questionnaire and a :battery of tests, and achieved a 97 percent

response rate. Subsequent contacts were by interview and questionnaires, and

participants were assured as to the confidentiality of the data .

National Institute of Education Studies 19'68 - 1974

These studies monitored the smoking behavior of 12-18 year-olds through surveys

in January of 1968, 1970, 1972, 1974, and 1979 . Interviews were conducted by

Chiliton Research Services of Philadelphia by long-distance telephone (in the

1968 survey some of the interviews were face-to-face) . Stratified probability

samples were selected using a three -stage procedure : First the telephone

exchanges were sel'ected, followed by a selection of householders within the

exchange area, and then a teenager in the household was selected . The sample

sizes are quite small, (fewer than 200 of each sex and age for 11970-79) but this

source does provide data for years prior to 1975 and for ages under 18 .

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CHART SCUMULATIVE SMCKING INCIDENCE, BY'GRADE, MALES

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CUMULATIVE SMOKING INCIDENCE, BY GRADE, FEMALES

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I



RESEARCH PLANNING 2•fEi-10RANDUM'

ON

SOME THOUGHTS ABOUT NEW BRANDS OF CIGARETTES

FOR THE YOUTH MARKET



D R A F T

SO;fE THOUGHTS ABOUT NEW BRANDS OF CIGARETTES~ FOR THE YOUTH MARKET

At the outset it should be said that we are presently, and I believe unfairly,

constrained from directly promoting cigarettes to the youth market ; that is, to

those in the approximately twenty-one year old and under group . Statistics show,

however, that large, perhaps even increasing, numbers in that group are becoming

smokers each year, despite bans on promotion of cigarettes to them . If this be so,

there is certainly nothing immoral or unethical about our Company attempting to

attract those smokers to our products . We should not in any way influence non-

smokers to start smoking ; rather we should simply recognize that many or most of

the "21 and under" group will inevitably become smokers, and offer them an

opportunity to use our brands .

Realistically, if our Company is to survive and prosper, over the long term,

we must get our share of the youth market. In my opinion this will require new

brands tailored to the youth market ; I believe it unrealistic to expect that

existing brands identified with an over-thirty "establishment" market can ever

become the "in" products with the youth group . Thus we need new brands designed

to be particularly attractive to the young smoker, while ideally at'the same time

being appealing to all smokers .

Several things will go to make up any such new "youth" brands, the most

important of which may be the image and quality - which are, of course, interrelated

The questions then are : What image? and What quality? Perhaps these questions may _

best be approached by consideration of factors influencing pre-smokers to try

smoking, learn to smoke and become confirmed smokers .



2

Table I attempts to define some of the more important effects expected or

derived from cigarette smoking by pre-smokers, "learning" smokers and confirmed

smokers . If this incomplete, subjective, simplistic analysis is even approximately

correct, there are sharp, perhaps exploitable, differences between pre-smokers,

"learners" and confirmed smokers in terms of what they expect or derive from

smoking . Let us examine these differences .

For the pre-smoker and "learner" the physical effects of smoking are largely

unknown, unneeded, or actually quite unpleasant or awkward . The expected or

derived psychological effects are largely responsible for influencing the pre-smoker

to try smoking, and provide sufficient motivation during the "learning" period to

keep the "learner" going, despite the physical unpleasantness and awkwardness of the

period .

In contrast, once the "learning" period is over, the physical effects become

of overriding importance and desirability to the confirmed smoker, and the

psychological effects, except the tension-relieving effect, largely wane in

importance or disappear .

The common thread binding the three groups together appears to be the fact that

smoking of cigarettes offers and provides a desired mechanism for coping with the

stresses of living, which may range from boredom to high tension and from fatigue

to high arousal and hyperactivity . Once this mechanism has been experienced and

used, physical and psychological habit patterns are firmly established and become

self-perpetuating .



3

TABLE I

EFFECTS EXPECTED OR DERIVED FROM CIGARETTE SMOKING

Pre-Smokerl Learnerl Smoke

I . PHYSICAL EFFECTS

A. Nicotine Response 0

B . Sensory Effects

1 . Irritancy-Harshness 0

2 . Flavor +

3 . Other Mouth Feel - Dryness, Astringency, etc . 0 -- -

4 . Visual - Pack, cigarette and smoke attributes 0 + ++

C . Manipulative Effects - Handling, lighting, puffing ,

holding, ashing, extinguishing ~

II . PSYCHOLOGICAL EFFECTS

A . Group Identification - Participating, sharing,

conforming, etc . +++ +++ 0

B . Stress and Boredom Relief - Buys time, valid + ++ +++

C .

interruption, bridges awkward times and

situations, something to do, etc .

Self-Image Enhancement - Identification with ++ - I - + +

valued persons, daring, sophisticated,free to choose, adult, etc .

D . Experimentation - Try something new, experiment, etc . +++ +++ 0

1 + = positive

0 = none

- = negative



4

If the above analysis is approximately correct, then the basic theme for

promoting any cigarette to any group should aim, directly or indirectly, at the

desirability of using a given brand as a mechanism for coping with stress . Brands

tailored for the beginning smoker should emphasize the desirable psychological effects

smoking, also suggesting the desirable physical effects to be expected later .

Happily, then, it shotild be possible to aim a cigarette promotion at the beginning

smoker, at the same time making it attractive to the confirmed smoker . The

information and outline in Table I then may be used as a basis for arriving at

some specifications for new "youth" brands and for determining how they should

be promoted .

I . PHYSICAL EFFECTS

Having identified these as highly desirable to the confirmed smoker but

largely unknown, unpleasant, awkward and/or undesirable to the pre-smoker or

"learner", the effort here should be to affect a compromise to minimize the

undesirable effects while retaining these which later become desirable .

A . Nicotine Effects - Nicotine should be delivered at about 1 .0-1 .3 mg ./cigaret

the minimum for confirmed smokers. The rate of absorption of nicotine

should be kept low by holding pH down, probably below 6 .

B . Sensory Effects

1 . Irritancy-Harshness - The beginning smoker and inhaler has a low toleranc

for smoke irritation, hence the smoke should be as bland as

possible .

2 . Flavor - The flavor of tobacco smoke is initially foreign, and not pleasa

One cultivates a taste for smoke much as one learns to like

olives or dry wines . Perhaps, as in the case of taste of wate

there is no really "good" flavor, only degrees of "bad" flavor

Thus for the beginning smoker the cigarette smoke should have



5

moderate level of blended tobacco flavor, but should be

as free as possible from strong, unpleasant flavors such

as stemmy flavor, etc . A "tar" delivery of 12-14 mg/cigarette

should provide the desired flavor level .

3 . Other Mouth Feel - The smoke should be "bland" with respect to

astringency, hotness, dryness and the like. Again, the

theory is that any mouth effect is new and different, hence

should be as bland and free of obvious negatives as possible .

4 . Visual - The package and cigarette should be pleasing to the eye, as

will be discussed further below . The amount and density of

exhaled smoke should be such as to be clearly visible and

not thin or scanty . A tar level of 10-14 mg/cigarette should

meet this requirement .

C . Manipulative Effects - Carrying, opening and using the package should be

convenient . The cigarette should be as long as possible, probably

100 mm, to facilitate lighting . The rod should be reasonably f irm,

and a moderately soft, round filter tip should be used . The draft

resistance prior to and during smoking should be as low as practical

and should not exceed VANTAGE specifications . The product should

require, thus~ minimum effort and care to handle and use .



6

II . PSYCHOLOGICAL EFFECTS

These are the expected or derived gratifications which influence a pre-smoker

to try smoking and which sustain the beginning smoker during the largely physically

awkward and unpleasant "learning to smoke" phase. These effects also largely determi

which brand the pre-smoker will experiment and learn with .

A . Group Identification - Pre-smokers learn to smoke to identify with and

participate in shared experiences of a group of associates . If the

majority of ones closest associates smoke cigarettes, then there

is strong psychological pressure, particularly on the young person,

to identify with the group, follow the crowd, and avoid being out

of phase with the group's value system even though, paradoxically,

the group value system may esteem individuality. This provides a

large incentive to begin smoking . If this be true, then the same

effect strongly influences the brand chosen, it likely being the

popular, "in" brand used by ones close associates. •

Thus a new brand aimed at the young smoker must somehow become

the "in" brand and its promotion should emphasize togetherness,

belonging and group acceptance, while at the same time emphasizing

individuality and "doing ones own thing ."

B. Stress and Boredom Relief - The teens and early twenties are periods of

intense psychological stress, restlessness and boredom. Many

socially awkward situations are encountered . The minute or two

required to stop and light a cigarette, ask for a light, find an

ash tray, and the like provide something to do during periods of

awkwardness or boredom, and afford a little "time-out period" when

confronting a stressful situation. Smoking also gives one something

to do with the hands, eyes, etc . and something to talk about in a

situation where otherwise one might simply have nothing to do or say .



8

almost automatically reject that brand and start with something

else . They will more likely start with "Brand 20+" which is

both the "in" thing with their closest age group and the "out"

thing with the "over-thirty" group. Probably in todays market,

WINSTON is the "Brand 30+" and Marlboro is the "Brand 20+" .

Happily, the Marlboro will eventually age out of its "in" position

with youth, as WINSTON appears to have already done . Now is the

time to launch the next brand to become the "in" cigarette with

the next generation as Marlboro ages from "in" to, hopefully "out and

over-thirty" status, hence becomes something for youth to avoid .

A final psychological factor which also did not fall readily

into Table I involves smoking-health attitudes . The smoking-health

controversy does not appear important to the group because,

psychologically, at eighteen, one is immortal . Further, if the

desire to be daring is part of the motivation to start smoking, the

alleged risk of smoking may actually make smoking attractive . Finally,

if the "older" establishment is preaching against smoking, the

anti-establishment sentiment discussed above would cause the young to

want to be defiant and smoke . Thus, a new brand aimed at the young

group should not in any way be promoted as a "health" brand, and

perhaps should carry some implied risk . In this sense the warning

label on the package may be a plus .



We have looked, at some-length, at what qualities and image a new brand aimed

at the youth market should have. At this point, it will be useful to summarize

what has been said ; in admittedly general terms :

Product Quality Factors

1 . Moderate level of nicotine (1.0-1.3 mg/cigarette) delivered at pH

(5.8-6.0) to insure slow absorption.

2 . Moderate level of blended tobacco flavor ("tar"of 12-14) free of

undesirable (e .g. stemmy) flavors .

3 . Bland, soft, moist mouth-feel, with minimal irritancy, harshness,

astringency, possibly very lightly mentholated .

4 . In "standard"' range of diameter and firmness, with resilient filter

or mouthpiece, probably 100 mm in length .

5 . Different package typa or packaging :naterial, perhaps containing

fewer cigarettes, therefore less bulky.

6. Some visible novelty or difference in product or package to set

apart from conventional cigarettes, ideally in direction of greater

manipulative convenience for beginning smoker .

Product Image Factors

1. Should emphasize participation, togetherness, and membership in a

group, one of the group's primary values being individuality.

2 . Should be strongly perceived as a mechanism for relieving stress,

tension, awkwardness, boredom, and the like .

3 . Should be associated with doing one's own thing to be adventurous,

different, adult, or whatever else is individually valued .

4 . Should be perceived as some sort of new experience, something arousing

some curiosity, and some challenge.

5 . Should be different from established brands used by the over-thirty a

perhaps even over--twenty-five groups . Must become the proprietary "in

thing of the "young" group.

. 6Should not be perceived as a "health" brand .



10

The enumerated Product Quality Factors should be easy to achieve, except those

requiring some ill-defined novelty . The Product Image Factors, of course, describe

a promotional approach, and it is most likely that the name and appearance of the

product will here become crucial in establishing the desired image . The name may

be the most important factor, determining the appearance of the package and

summarizing the image to be promoted .

Ideally, the name chosen should have a double meaning ; that is, one desirable

connotation in "straight" language and another in the jargon of youth . A current

example may be Kool, which reads on "cool" cat in youth jargon, and also literally

connotes a refreshing physical sensation . Another way of approaching the name or

image would be to choose one which evokes different but desirable responses from

different age groups . Thus the Marlboro western theme suggests independence, clean

air, open spaces and freedom to the youth group, while at the same time suggesting

the "good old days", hard work, white hats over black hats, and the like to the

older generation . In passing, it is interesting to note that Marlboro is a

distinguished, dignified British name, and there is a certain inconsistency in

equating this image with the West .

A careful study of the current youth jargon, together with a review of

currently used high school American history books and like sources for valued things

might be a good start at finding a good brand name and image theme . This is obviousl

a task for marketing people, not research people .

Assuming that at some point marketing people will establish a name and image

for a new youth brand, and assuming that the thoughts on product quality factors

expressed above are approximately correct, then Research and TPD should be able to

provide the product needed . Most of the product specifications defined are

achievable with present technology . Those which require new technology would appear

to be• (1) control of irritancy and related mouth-feel factors to produce a bland



, August 30,197~i KENT

fC&we4,t~1 1

TO, :

FROM :

Mr. CLlrtis Jud'ge' -1, / _ X1 .

T . L . P;chey- Field 3

SUBJECT'z Product Information

Mr . Judge, if'you will look at my Sales figures (attached)i,,

you will note that NEWPORT KINO SIZE is the #1 selling Lorillardd

brand, and NEWPORT BOX the #6 selling Lorillard brand in Field~3

for the year-to-date .

I know your immediate concern must be the "Lights" market ;

however, I also know the efforts placed into several "taste"brands over the past few years .

The success of NEWPORT hais been fantastic during the past

few years . Our profile takenilocally shows this brand' being

purchased byb1ackpeople(all ages), young adults~(usuallycollege age),, but the base of our business is the high school

student .

NEWPORT'in the 1970's is turningiinto the Marlboro of the

60's and! 7'0's . It is the "In"' brand to smoke if you want to

be one of the group .

Our problem is the younger consumer that does not desire

almentho'l cigarette . If that person desires a non-menthol,

but wants to be'part of the "In group`, he goes to Marlboro .

Could we'be furnishing a back-lash to Marlboro from our

~ NEUuTP O RT' brands?'

Is Marlboro as strong with the early beginning consumers

v as the NEWPORT brands?

Could' we endithe success story for Marlboro by furnishingthe young adult consumers with a total category of "In"'

brands?

I' think the time is right to develop a NEWPORT NATURALC~WC 1 1

(non-menthol) cigarette to attract the young adult consumerdesiring a non-menthol product ., We have a solid basewith~NEWPORTiand I forsee much success with the name of NEWPORT

~My

~oninew packaging .

SUITE 2', RTR BLDG . , , R T E . 73, MT . LAUREL, N . J . 080641 Telephone : (609) 234-8141-42

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