Secret Tobacco Industry Documents

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C:ENRJR^I-FOX LICENSING coRPORATMi HUBERT A . NELSON

1'7 1 3-%

January 16, 1984

PRODUCT SEA V ICES'

Mr . Frank A . SauuY3ers Staff Uice President

Corporate PGelatiions arad' Cccnunicatiions Philip Morris Incorporated 120 Park Avenue : hTewYork,N .Y ., 10017 Dear Frank : It was a pleasure to have met you last Wednesday . As we have discussed, Twentieth Century-Pbx would like to enter into an a eemerit' with Phili Morris for prod aL,2l aQ=mn_~~ +*tes in major moon pi nres praduced by Us .

Twentieth Century-Fox wpuld like to enter into an 18-mmnth agree~: that would offer Philip Morris a uniqne publicity opportunity in our feature films . We would vam tee ~a product lacement in the f'iral version of four feature film_s_ during the 18-mnth pe~' i'~-. e woul o er your products exc~ vity for the period ooontract . You wnuld have script approvalifor the pl .acenent of ' yowr products . After tthe rel,ease of the films, your approval sole71y determines that the exposuire is consistent with our agreatnent . If' ymiare not pleased with the length of visual exposure, a negatiated refwnd' or credit wrnsld be workedi out for that particular project . In the highly unli .kely situation of Fox being unable to satisfy youi, with four feature 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 plctuires prodixed by Ttaientieth Century-Fox wrnald be $1010, 0I0'0 . . According to the Mot .ion Pictwre Association of Anierica, Inc . (WAP,), . mrvie admissions for the first sewemmcmths of 1983 were 745 .7 million,, up 20 .5 million over ttfe same periiod last year . Based on a maving annual trend, it is projected that admissions for 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 office gross for 1983 will be $3'.7 billion. The 1983 gross will tflp 1982', which was a reoord setting year, by approximately a quarter, bblliiion~dollars . These

figures are for U .S . releases only and do~nat reflect theatre admissions in the rest of the world .

BOX 900. BEIYERLV' HILLS . CALIFORNIA W213 PHONE : (213) 2p33D17' . CABLE ADDRESS : CENTFOX, LOS ANGELES-TELEX'674B74 A DIVISION OF TWENTIETH P-NITURWrFOX Fli • rnRPMTir

Mr . P'rank A. Saunders ' January 16, 1984 • Page Two

In 1982 the MPAA ccaYputerized the tracki ng and recording of films released in the!U .S . for all identifiable distributors . As 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 .5billion . 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 and there wexe 36 films that grossed $10 million or mre . This should be kept in mindiwhen doing an analysis of 1982 imvie admission on a cost per thousand basis . If you desire, there cambe collateral publicity opportunities involving Fox stars which we can develop once a contract is executed . In addition, we can arrange appropriate screenings for you and yourr wholesalers . I look forward~ to further discussing this unique opportunity with you, for our Product Pl;acement Program can .assist Philip Nbrris in achieving its .marketing objectives . Sincerely, .

Hubert A . Nelsom Product Services HAN/han cc : Chuck Ashman Tony Hoffman

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I . Through our persqnal contacts d tha talent and entertaimmat fields, 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 be

ened-out of such a aalling list, va do NOi re mnd toie approach hecauu the potential risk of adverse publicity vsuid appear to outeeiyh the passible benefitss list of the "in° tliscotAeques, private clubs, sin9les bars, rants, etc . could be canpned and arrangmnts naa : to dlsfree packa9es of Trames at strategic times .

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AOIVISIONOFLOEWSTHEATRES,INC . •

2525 EAST MARKET STREET, GREENSBORO, NORTH CAROLINA 27401

June 8, 1979

TO :

FILE

SUBJECT : SEDGEFIELD IDEA SESSIONS June 6-7, 1979 The following paragraphswill summarize the discussions held at the joint sessions in which everyone participated . A later report will document the ideas and suggestions which were discussed within the individual groups but rejected for use in the general meeting . The subjects discussed fall generally into three areas : New Products Marketing Cost Savings Several of the suggestions arose from various groups and the discussions following the individual ideas will summarize the general feeling expressed by the various groups and my editorial comments .

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.

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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

2.

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

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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 when this product would be available . 12 . Premium Priced Cigar 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

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high taste .

1~

3.

17 .

Light Chewing Tobacco

This product would be light in color and taste and should l

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 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 .

9.

Kent Improvement Ideas were generally similar to those discussed at the PDC meeting recently .

20 .

Enriched Cigarette with Beneficial Effects This would be a low-tar cigarette with added ingredients such as apetite suppressants, sleeping aids, aspirin, etc .

21 .

Six-pack Carton This could be with either cigarettes or scrap chewing products with an economy motive .

22 .

100 mm . Hardbox Cigarette

This would be a new product designed to appeal to female smokers . 23 .

Colored Cigarette Papers/printed Cellophane This idea arose in several forms including a mint green cigarette paper on a menthol brand .

W 2 G"

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 .

MARKETING/PACKAGING

C 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 ."

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7.

General Marketing Approach

Many people expressed an interest in developing campaigns which

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would broaden the appeal of our products on a national basis . Alternatively many people felt a regionalized approach to marketing including hiring ad agencies in various regions, for example, Nashville . .

Loews Employees A . Insert "price off" coupons in the paychecks of all Loews employees . B . Make sample 4's available to all Loews' employees . C . Make coupons available to all Lorillard employees for sampling in their circle of contact .

9 . Promotions A . Investigate possibility of imprinting promotional campaigns on cartons and packs in a manner similar to that used by cereal manufacturers . B . Test a campaign in which we offer to refund the purchase price of a product if a customer tries and dislikes the product . C . Use 1980 Olympics as the basis for a promotional campaign . This could take the form of announcing that we would make a contribution to the U . S . Olympics fund if the consumer would return, for example, a carton end panel .

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COST SAVINGS 1 . 20's Pack Sampling Many people feel our current 4's pack sampling is both inefficient and uneconomical .

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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 . A sample product in which this printed paper was

used was recently

picked up in a Philip Morris test market area . 3.

Thin Reconstituted Leaf It was felt that this product would have greater

filling power

and physical strength than our current product . 4.

Encapsulated Menthol in Cigarette Paper

5.

High Speed Combiners

6.

High Speed Packers

7.

Primary Process Control This suggestion dealt mainly with increased automation . increased automation in cigarette, physical, mechanical

Also and

leaf labs was discussed . 8.

Training

Extensive training in experimental design and data analysis was suggested . This should equip us to more efficiently design projects and utilize the data generated . 9.

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 .

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10 .

Circumference Measurement Primary request was for an instrument to accurately measure the

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circumference of combined filter rods . Secondary consideration was more accurate measurement of filter rods made with porous plugwraps .

1. 12 .

Wrapping Material Preparation/Conditioning Longer Brand Runs

Ideas included inventory leveling and cold storage particularly for small volume brands . 13 .

Cigarette Paper Splice It was sugg.ested that cigarette paper splice tape would be .Qc :¢Qi imprinted with a message% ^ for example, yxe jacfe that would turn . .ac3 :e.. a negative consumerA into a positive consumer rase E+o+~•

4.

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 .

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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.

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1990 NEW MARKETING IDEAS

SUBMITTED BY : ADVERTISING AND PROMOTION RESEARCH

MARCH 6, 1989

1990 New 4Vlarketing Ideas

Summary of Programs Multi-Brand I

~

1. 2. 3. 4. 5.

Marketing Via Direct Mail Factory Fresh Product Special Occasion Promotional Tie-ins Mindset Advertising Poolouts Carton Merchandiser Pack Offers

WINSTON 1 . WINSTON Sports Trivia Connection 2. WINSTON Sports Champions Commemorative Packs SALEM 1 . SALEM Refreshest Olympics CAMEL 1 . CAMEL Smooth Moves Adventure 2 . CAMEL Convenience Store Parking Lot Program CAMEL/MAGNA 1 . CAMEUMAGNA Instant Winner In-pack Game CAMEL/SALEM 1 . Three Pack Convenience Store Carton Special Markets

1 . Inner-City Black Targeted Brand

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Program : Marketing Highly Targeted New/Established Brands Exclusively Through the Mail

Objective The objective of this program is to develop a unique marketing strategy for marketing highly targeted new and established brands by using direct mail as the exclusive medium for _ introducing, advertising and promoting the brand . Descri tion • NOW, MORE and potential new brands which are highly targeted, with an older and more female target, will no longer use magazines, newspapers and OOH to market their brands to their target . Instead they will utilize the company's smoker list and direct marketing expertise to deliver more relevant and impactful advertising in a more cost effective • manner. • This new marketing strategy will also incorporate the principle of customized communication using mindset segmentation to increase the relevance and appeal of each of these brands . Rationale • Direct mail is a more personal and direct medium for reaching consumers . Using direct mail will enable the company to precisely control the type and frequency of marketing communication with the consumer . Further, this strategy will enable the brand to increase its relevance to the consumer by consistently incorporating customized communication using mindset segmentation . Marketing brands directly through the mail frees up corporate resources which can be applied to other brands and reduce the demand for scarce company resources such as OOH inventory . • NOW and MORE are RJR's two most targeted brands . Further, their targets tend to be older and more female . Both of these groups are more interested in and responsive to materials sent in the mail versus other demographic groups. • The cost to market a brand through the mail is much less expensive than other traditional media with the exception of OOH in terms of delivering recalled advertising impressions to the intended target . OOH , however, provides only partial advertising message

communication .

Traditional media for a highly targeted cigarette brand have a lot of waste . Most of the advertising impressions go to non-smokers, the majority of smokers reached are not in the brand's target and the recall of advertising in magazines, OOH and newspaper is significantly lower than for direct mail . Attached is an analysis of the relative costs of using direct mail versus other media forms to deliver recall advertising impressions to the intended target . As the analysis shows, direct marketing is the optimal vehicle to fully deliver a brand's

advertising message to the target in a cost effective manner .

I 50725 5775

Reiative Media Efficiency of Delivering Recalled Advertising To Target Smokers Assuming target size to be 5% of smokers MEQI9 DELNERY COST1

SMOKING INCIDENCE

% RECALLING ADVERTISING

% HITTING COST TARGET COMPARISON2

MESSAGE QUALITY~

OOH

$1 .39

2 8%

29%

MAG. General Targeted

$3.55 $24 .51

2 8% 2 8%

21 % 21 °k

5% $ 603 .74 12 .5%a $ 3334 .69

Complete Complete

NP.

$20 .73

28%

21%

5% $ 7051 .02

Complete

65%

80% $438 .03

Complete

MAI L

$205.00

9 0%

5%

$

342 .36

Partial

.ICOST TO REACH 1000 ADULTS FOR GENERAL MEDIA AND COST TO REACH 1000 HOUSEHOLDS FOR DIRECT MARKETING . 2COST TO REACH 1000 TARGETED SMOKERS (ASSUMING 5% OF SMOKERS) WHO CAN RECALL THE ADVERTISING . 1,11

' 3BASED ON TARGETED MAGAZINES PROVIDING AN INCREASE IN REACH OF 2 .5 TIMES. 4THE AB4LITY OF THE MEDIUM TO DELIVER A COMPLETE ADVERTISING MESSAGE .

Program : Factory Fresh Product Objective The objective of this program is to provide consumers, particularly franchise smokers, a way to get factory fresh cigarettes thereby providing a unique benefit for RJR brands and also increasing the loyalty of our smokers . Descri tQ ion • All RJR brands will offer consumers the opportunity to order their cigarettes, via an 800 number, direct from the factory, with a guarantee that they can't buy fresher product anywhere . • The opportunity to order factory fresh cigarettes will be flagged on all RJR cartons for a 6 month period . Following that period, the offer will continue to be mentioned on all cartons, but in a less introductory fashion . • The products will be guaranteed to be two weeks old or less when they are shipped, and will be at the consumers' home one week from the time of their order. • A minimum order of 5 cartons will be required with RJR to pay the shipping . The consumer will pay the same price per carton they would in their own state . • The five carton shipment will sent in a sturdy, poly-wrapped box to ensure freshness . Rationaie/Benefits • Product freshness is a key area of smoker interest . Currently many RJR products are deficient to competition in their perceived freshness . Factory direct sales for RJR brands enable them to provide a competitive advantage in the area of product freshness . • Offering factory fresh product should also provide greater purchase loyalty to those consumers who order their product in this way . Also, the 5 carton minimum will help create consumer loyalty by taking them of out of the purchase cycle for an extended period of time . -

Program : Sneciai Occasion Promotional Tie-ins

Objective The objective of this program Is for RJR core brands to provide promotions that are more directly tied In to special occasions, holidays or other relevant dates . Descri tp ion • Promotions will be developed to correspond with special times of the year including : -Christmas -Memorial Day -Halloween -New Years -St . Patrick's Day -Thanksgiving -President's Day -4th of July -April 15 (taxes due) -Valentines Day -Labor Day • Consumers' individual birthdays ( both franchise and competitive smokers ) will be honored with a special gift from the appropriate RJR brand . The consumer will be sent a greeting card which will include a birthday greeting, and a coupon good for three free packs of cigarettes . • Brands will offer special edition packages to commemorate key events in America such as elections, winners of sporting events, etc . Rationale/i3enefits • More closely linking promotions with special times during the year will increase the relevance and appeal of our offers and provide a seasonal flavor to our promotions ( as we do with our advertising ) that Is unique in the industry . • Giving consumers a gift on their birthday can create a special relationship between a consumer and a brand that is not possible with any other promotion . Date of birth information is available for nearly 40 million smokers via the Direct Marketing data base . • Special addition packages will become collectors items increasing the interest in the brand(s) .

Program : Mindset Segments Advertising Poolouts Objective The objective of this program is to provide additional relevance to our advertising poolouts by leveraging the concept of mindset segmentation . Descri tg: ion

•

All brands will develop executions which will be targeted to the appropriate mindset clusters based on their strategic focus and other marketing considerations . -Yearning adults -Achievers -Hard core socializers

•

-Gender-role traditionalists -Practical goal oriented -Mature socializers

These targeted advertisements will be placed in the media vehicle(s) that wiil most effectively reach each mindset group .

Rationale/Benefits • The mindset clusters developed in the Direct Marketing area can be used to develop advertising messages which are more relevant to the consumer based on incorporating how each segment views themselves and the world around them . Developing advertising poolouts aimed at each segment will increase the relevance and appeal of the brand .

Program : Pack Offers From The Carton Merchandiser

Objective The objective of this program is to provide impactfui competitively oriented pack offers in carton oriented outlets . Descri tp ion • The carton merchandiser wiil be modified to provide an area where RJR can deliver pack ~ oriented offers to more effectively attract competitive smokers . The modified merchandiser will enable RJR to promote varies brands throughout the year

without having to sell in special displays . Rationale/Benefits

• Currently RJR promotes its major style on a quarterly basis in supermarkets . The programs are defensive in nature, however, attracting primarily franchise smokers . • Providing a permanent area where pack promotions can be featured will increase the competitive appeal of the offers and also Increase the company's ability to reach the significant number of smokers who do not buy by the pack .

Program : WINSTON Sports Trivia Connection

Objective The objective of this program is to reinforce WINSTON's claim as the sports connection by providing consumers access to sports trivia . escription

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• The WINSTON Sports Trivia Connection will establish WINSTON as the source of sports trivia information . • The program will involve both pack inserts as well as OOH support to deliver sports trivia to the consumer. • Four sports trivia questions will be included on an insert in each pack of WINSTON . The answers to the questions will be on the back of each insert . • Thousand of questions on sports will be available for the consumer to test their sports trivia

expertise .

• OOH will also pose sports trivia questions . The answers to these questions will be incorporated in the pack insert . Thus, to get/ confirm the answer to the OOH trivia, the consumer must purchase a pack of WINSTON . Rationaie/Benefits • Sports enthusiasts are very interested in sports trivia . As the sports connection, WINSTON will also be the connection for sports trivia. • Pack inserts provide an opportunity for WINSTON to provide consumers with on-going trivia questions/ answers that will create and maintain involvement with the brand and serve to reinforce the brand's positioning . • Involving OOH in the program allows greater awareness of the program and serves to create consumer interest that will lead to purchase (to get the answer to the trivia question) .

Program : WINSTON Sports Champions Commemorative Packages Objective The objective of this program is to reinforce and extend WINSTON's association with sports . Descri tg ioh • WINSTON will Issue special addition packs to celebrate the champions in all major sports . -Football -Baseball -Basketball -Tennis -Hockey -Track and Field -Soccer -Horse racing -Auto racing • These special packages will be offered only for a limited time supported by special displays . Rationale/Benefits • The special addition sports champions packages will provide a strong and relevant tie for WINSTON and the world of sports thus reinforcing its role as the sports connection . • These packs will have appeal to sports enthusiasts as coiiector's items that will add to the appeal and mystique of WINSTON .

Program : SALEM Refreshest Olympics

Objective The objective of this program is to develop a unique consumer participation special event to reinforce SALEM's refreshest positioning . - D e~scri tp ion • The SALEM Refreshest Olympics will incorporate numerous consumer participation events that relate to SALEM's refreshest positioning and advertising . Events would revolve around symbois of refreshment such as water and ice . • Teams of consumers will compete in a number of events for medals, ribbons and prizes . • The Refreshest Olympics Trials will be held in numerous cities across the country . Winning teams from across the country will be flown to the site of the Olympic Finals where gold, silver and bronze medals will be awarded to the top finishers in each event .

Rationale/Benefits • Younger adults enjoy being involved in unique activities with others . The SALEM Refreshest Olympics will provide a fun and exciting event . • Developing the event to be oriented completely around the "refreshest" theme will provide strong and relevant support for the brand's positioning and advertising .

Program : CAMEL "Smooth Moves" Adventure

Objective The objective of the CAMEL "Smooth Moves" Adventure is to increase the level of involvement by younger adult target smokers with the CAMEL brand and to reinforce CAMEL's Smooth Character advertising imagery through a unique and involving treasure hunt . Description • The CAMEL Smooth Moves Adventure will Involve consumers solving the mystery of the lost Golden Camel . • The "Archeologist" CAMEL will lead the expedition to find this lost treasure and collect the reward . • Clues in the form of puzzles, riddles and logic problems will be contained in each pack of CAMEL via a pack insert. • Consumers will solve each individual clue and then put that information together with information from the other available clues to determine the mythical location of the lost Golden Camel . Approximately 50 clues will be available in total . Four to five new clues will be arriving at retail each month with all the clues distributed by the end of a year . • At the end of the year consumers will send In detailed descriptions of the location of the lost Golden Camel based on the information provided in the clues . Those correctly Identifying the precise location will split the large reward offered for the treasure's safe return . The value of the reward wiii be based on the equivalent value of the gold in the lost Camel (specific value to be determined) . Rationaie/Benefits • Younger adult smokers enjoy games, riddles and puzzles . The CAMEL Smooth Moves Adventure will leverage this interest in a unique and involving way . • This promotion will create excitement and on-going interest In the brand as consumers solve individual clues and make progress toward solving the mystery . • This promotion will further encourage team involvement by consumers making CAMEL a frequent and exciting topic of discussion among target younger adult smokers . • In addition to each pack insert being a clue to the mystery, these inserts will also be a fun and challenging exercise even for those who do not wish to become fully Involved in the adventure and attempt to solve the mystery .

•

.The CAMEL Smooth Moves Adventure will be supported by a strong introductory advertising to develop awareness of the adventure . Over the year the "adventure" will be periodically featured in print, OOH and POS to remind consumers of the on-going nature of the adventure .

See the attachment for a potentiai OOH/POS execution .

• The reward for solving the mystery can range in size depending on the desired budget for the program . A minimum of one million dollars would be required to generate strong consumer interest. As the reward will be split among the winners, the brand's payout liability is set by the size of the reward .

Program : CAMEL's Convenience Store Parking Lot Program Obj .ective The objective of this program is to provide CAMEL with a unique and impactful alternative media form that will reach target younger adult smokers where they tend to purchase their cigarettes most often . Description • CAMEL will dominate the parking lots at convenience stores through the use of an innovative approach-- providing and maintaining parking space markings, curbs and direction arrows that inciude the brand's logo, name or cigarette facsimile . See attachment for example

program.

Rationale/Benefits • Younger adult smokers tend to buy their cigarettes at convenience stores . • The CAMEL convenience store parking lot program is a unique way of providing CAMEL with continuous advertising presence at a key retail outlet type . Further, this program can be tied in effectively with the national Pack Action Program on CAMEL . • The store owner will appreciate CAMEL providing a service that he would otherwise have to pay for (i .e., relining the parking lot periodicaiiy) .

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Program : CAMEL/MAGNA Instant Winner In-12ack Skill Game Objective _ The objective of this program is to increase the appeal and relevance of CAMEL/MAGNA though the use of an in-pack game of skill that will provide instant winners . Description • CAMEL/MAGNA wiii develop a skill-based ( approved by the BATF ) game that would be delivered via in-pack inserts . • The game would Involve subjects/topic that are of interest to younger adults including trivia, music and fashion . • The game will be configured 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 the product (e .g ., 250 off

a pack) .

Rationaie/Benefits • Younger adults enjoy games that provide instant feedback as to whether they have won or not . Developing a game which provides instant feedback will gain high levels of younger adult smoker involvement. • Pack inserts provides an effective way to deliver this game to the target given their low Involvement with other media forms . • CAMEL/MAGNA are both positioned against younger adult smokers and thus represent logical brands to feature this game . • The younger adult focus to the game will help to reinforce the brands' images and younger adult targeting in the consumers' minds . • Using the winning game card to encourage further product use can provide both volume support and business building support to pack purchasers . In addition, the winning game ticket may not have the same image as a coupon and thus may be more likely to be used by this target group .

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

Objective The objective of this program is to develop a new packaging configuration that will be used exclusively in convenience stores to tie in with on-going 3-pack promotions in many convenience stores . =

Description • CAMEL and SALEM will offer a three pack carton configuration in addition to its standard 10 pack carton . The three pack carton will be used in convenience stores to facilitate the movement of these brands to competitive smokers whether with or without a promotion .

Rationale/Benefits • Currently there is a growing trend in convenience stores to offer a three pack purchase discount to smokers in an effort to increase the purchase quantity of their shoppers . • Developing a three pack carton will enable CAMEL and SALEM to optimize the benefits of this trend by offering a pre-packaged three pack carton . RJR promotions can then be tied tothis offer making the delivery of a three pack promotion more impactful based on the combined savings from the convenience store and the RJR incentive .

Proqra-m : Inner-City Black Targeted Brand

Objective The objective of this program is to develop and Introduce a distinctive cigarette brand targeted at the inner-city Black smoker . Descri tion • This brand will leverage the Black consumers' desire to use products which : -are distinctive and are associated primarily with Blacks, and -are more "potent" (e .g., Blacks drink malt liquor rather than beer) . • This brand will incorporate many distinct features which will appeal to the Black smoker . -Product

Descri tp ion -menthol with strong tobacco taste -full flavor -85mm soft pack -cork tipping -larger circumference -shorter filter Rationale -Black smokers primarily smoke cork tipped full flavor 85mm menthol cigarettes . -The larger circumference and shorter filter will provide a distinctive look and feel . It will also and provide support to the more "potent" delivery benefit . -Packaging Descri 'on -10 cigarettes per pack . -The cigarettes will be placed in the package with the filter end down and the tobacco end up. -The packaging will have an inner city look to it--possibly a graffiti look (see attachment for a potential package design) . Rationale -Blacks smoke fewer cigarettes per day and have less money making a 10 pack an ideal configuration.

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-Many inner-city Blacks open their packs from the bottom to keep the filter end from __ gettiFig dirty when they/others remove a cigarette . Placing the cigarettes upside down in the pack will be a unique feature which will demonstrate empathy toward the target and this uniqiTe behavior . -The packaging must be seen as making the brand primarily for Blacks to increase its acceptance among this group . An inner-city look will help to make this distinction .

-Advertising Descri tp ion -As with the packaging, in order to be as relevant as possible, the advertising should relate to the environment and the interests of the inner-city Black . It is recommended that the advertising utilize the popularity of "Rap" music among this group to create relevant and appealing advertising . Both the visuals as well as the copy should reflect the "Rap" trend including copy which has the strong rhyming style of "Rap" music . See the attachment for a potential advertising execution . -The cigarettes should be referred to in the advertising as the "bold smokes" to reinforce both the stronger delivery of the product and also the statement this distinctive brand makes about its users . -The brand will utilize outdoor advertising exclusively to deliver its advertising, including many unique placements to distinguish it from other brand (e .g., paint ads on walls of buildings) Rationale -It is important that the brand be relevant to the inner-city Black target . "Street" symbols and popular Black music, such as "Rap", are to key opportunities to make the brand relevant and appealing to the target . .-Blacks are most effectively reached through outdoor advertising due to their low involvement with other media forms .

Descri p ion -The recommended name to support the product and advertising image of the brand is Fat Boys . Rationale -Fat Boys provides a tie with both the larger circumference/stronger delivery of the product and the "Rap" music theme of the advertising .

-Other marketing orograms Descr'i tp ion --The brand will sponsor events within the inner city which are consistent with the interests and activities of the target including "Rap" music concerts, amateur "Rap" contests and graffiti art exhibitions . Rationale -These activities will increase awareness of the brand among the target and create an association between the brand and culturally relevant activities for the inner-city Black smoker.

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lIx„-+Ji-l-li .ar.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, rr_YUT1 SH : ~ .r IZUN", a suspense, thriller, set in Los andeles . We will be?in ore-nroduction shooting by the end of September, and production shootin~,mid-November . At the present time we are setting our distribution with one 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 or before thet first of :, :ay, 1973 . The r•lajor characters a ;id supporting oeoole in the scrint all smol :e . I sao'. :e to our press arent about a tie in with your co, .ip,ny, and he "brilliantly su- ;ested" that we get in touch with Youn,q J z ?ubicu*t or J . :7alter Thomoson . That seems 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 suggest which brands they should use) are : SARA . . . (leadinc; lady in jeopardy from the killers) very chic 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 the other 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 sure there must be, the film is better than any co7nercial that has 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

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for the peo,>le as listed above and the necessary cartons of cicl~arettc,s to be used, We would enter a contract, that unon delivery of the answer print to the distributor, your com~any, :eynolds Tobacco, would pay to our production company, the sum of ~5U0,UUU .UUo If for any reason the film is not distributed, than your comnany is out only the time in answerind my letter, and a' few pacl~ades of cidarettes, I think this protects both of us . I expect to hear from you very shortly, ,

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Robert r . Richards, rres, 33u So . Barrincrton Ave, Suite = 1).0 tin ;eles, Calif . 7Uu'+y •

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ROGERi i COWAN .INC .

9661 WILSHIRE DOULEVARD BEVERLY HiLLS. CALIFORNIA 9021 2 (213) 273•4581 TEi.EX 687•442

PUBLIC RELATlONS

CAUi ADDRLbt ROCORA pBVERLY HILLS. CALlfORNlA

May 4, 198 1

Mr . Gerald Long Executive Vice Presiden t

R .J . Reynolds Tobacco Company Winston-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 secretary said you were out of town . Now that we are a couple of days into our second year with R .J . Reynolds-, I wanted to recap some of our activities during 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 results in 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 and television programs with popular stars . We have contacted literally hundreds of films to determine 1) if the film could offer us positive exposure, 2) if the stars were people with whom we would want the product associated, and 3) if we 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 York 1.ardeu. Qi~er s7 A~ Sbwt, J.eadsa pJX !!A. Eeslaed • 49y-0691 • TELSX aSt-2SS7t

Gerald Long -- 2 "Pennies From Heaven," with Steve Martin . "Blowout," with John Travolta . "Rich and Famous," with Candice Bergen and Jacqueline Bisset,

and many, many others . Since it often takes a year or more for a film to be released, you will see many results of our work in this area over the next few months . --Writing and placing favorable stories about celebrities smoking, subh as a recent spot we arranged on "Good Morning America" about Paul Newman practicing lighting two cigarettes for a remake of "Now Voyager," and stories we placed about Mikhail Baryshnikov smoking four packs of cigarettes a day as part of his routine . --Arranging for celebrities to be photographed with the products, such as a GQ layout we did with Billy Dee Williams which included photos of him smoking . This area also includes our work with fashion photographers in New York and Los Angeles to have stars and models pose with cigarettes, as well as our efforts in the area of etting photos of celebrities while they are smoking ?as with the photo of Jack Ford with a pack of Winstons at an exclusive Hollywood party) . --Encouraging smoking on television is another area, and our work in this area ranges from our personal contacts with celebrities encouraging them to smoke on 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 .) with quantities of the product for their guests . --Adding to our list of celebrities and entertainment . industry executives who smoke and sending them the products on a regular basis . As Ed Horrigan knows, Rogers &_Cowan is also very strong in Europe, and this might be another area in which we might be of help . The Cannes Film Festival, for example, will be held soon, and we could get photos of celebrities with cigarettes . We could also expand our work with foreign filmmakers in various European capitals, if this would be meaningful to RJR .

(continued)

Gerald Long -- 3 A new priority was added during the past few months, and that is the Salem High Country Music Festival program . Our kick-off concert in Atlanta was a successful event,, and we have high hopes for this promotion in other cities r-----~ over the next few months . Next week, Dick Taylor of ou ( /r company is meeting with Sally MacKinnon, Larry Wassong and the concert promoter we retained, C .K . Spurlock, to map our plans for future Salem concerts . In this area, -we expect that our work will continue to involve : --Publicity (in advance, to help sell tickets establish Salem in this field ; coverage of the event, and follow-up publicity on a local and basis, again to strengthen the identification Salem with country music) .

and to actual national of

--Acting as liaison between the promoters and William Esty . --Coordinating the special promotions and advertising with the public relations . --Helping to secure and promote talent . --Planning special events for press and local dignitaries . As a result of the Salem High Country Music Festival, .we were able to work with David Fishel, and we believe we . have established a good working relationship with David and some of his staff . In this vein, we believe there are existing RJR promotional events, perhaps the Winston racing programand More's EBONY : Fashion Fair, in which our services can be helpful . For example, we have spoken with James Caan about the Winston rodeo program and have interest from him about using his name and services as part of this already-successful promotion . These programs are an area we would like to discuss with you in more detail so we might get more involved . We brought RJR into the annual Lucille Ball Backgammon Tournament this year, and we believe this special event was a successful tie-in for Salem Ultra . With celebrities competing in a chic tournament at an exclusive private club for the Salem Ultra Trophy with a name like Lucy with an implied endorsement of the product, we saw the necessary (continued)

Gerald Long -- 4 Ingredients for a prestigious and meaningful association for RJR . Among the media coverage we were able to generate just from this one event was : --A nationally-syndicated six-minute spot on "The World of People" on television . --A 60-minute "Sunday Show" on KNBC-TV in Los Angeles which mentioned the product, showed the trophy and -featured some of the graphics we had prepared . --Stories and photos in newspapers like the LOS ANGELES TIMES, BEVERLY HILLS PEOPLE and others which included product identification and the names of someof the top celebrities and society people involved in the event . Currently, 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 event we might try to get for Salem Ultra again, and we will let you know our recommendation on this, as well . :We were glad to open some new marketing_avenues to RJR during the past 12 months, and we look forward to expanding these activities in the upcoming year . With'the goals of getting positive exposure with celebrities and opinion-makers 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 our public relations activities . During the last few days, we have been able to get Zsa Zsa Gabor and Harold Robbins to smoke during the taping of a nationally-syndicated MERV GRIFFIN SHOW which will air next month . We are also evaluating the NEW YORK TIMES interview with Paul Stricht to see where we can work with you in the lucrative foreign market, since, as I mentioned, Rogers & Cowan is very strong in Europe . We also would like to work with you in other areas where our services can be beneficial, and we belteve these opportunities exist .~ Our work has expanded over our original assignment, and the second year plans mean that our staff will be spending even more time on this account . Therefore, I would like to request (continued)

Gerald Long -- 5 that you approve an increase in our annual fee to $150,000 to compensate for our rising costs and the time we devote to RJR . It may also be necessary to ask for a special fee in the event we are assigned to one or more extra timeconsuming projects, but the activities I have outlined above would be covered by the annual retainer . In the meanwhile, I would be glad to discuss any of these current projects with you in more detail, and we look f'orward to a long and mutually-beneficial association .

Warren Cowan President WC/l f

SCARBOiOUGH HOUSE, BRIARCnFf MGNOk, N .T.10510, USA - PHONE (914) ]6}-a050

PURSUANT TO COU .qT ORDER

BROWN & WILLIAMSON TOBACCO CORPORATION PROJECT

REPORT

September, 1972 PRQ7ECT :

Youth

Cigarette

-

New

concepts

MARI(ETING INNOVATIONS' SUGGESTIONS : MI suggests new ideas for the breath-freshener field . . . COIA-FLSVOR While the government would not permit us to add caffeine to a cigarette, it may be possible to use artificial ingredients to obtain a cola taste and aroma . Suitable names might be : COLA-COLA,

APPLE

FLAVOR

COLA-COOLER .

Apples connote goodness and

freshness and we see many possibilities

for our youth-

oriented cigarette with this flavor .

Apple cider is also a possibility .

SWEET FLAVOR CIGARETTE We believe that there are pipe tobaccos that have a sweet aromatic taste . Itts a well known fact that teenagers like sweet products . Honey might be considered .

If any of the above ideas have interest, MI, will prepare concept ads .

021635 Yi:0042014

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-speed ahead in Hollywood for more than a year, and, now, with

the writers, actors and directors all working and not threatening to strike, we are pleased to report that Hollywood is back in the movie busine'ss .

With that in mind, we are making a concentrated effort to be very selective about the kinds of productions in which we place the products . Our goal is "pleasant situations," and we have evaluated many scripts which do not meet our criteria for products . There are some films we have approached which we believe could

be very beneficial to our "subliminal" product campaign . 1 . t'[OT I ON ' P I CTURE S

A) SHARKEY'S MACHINE -- Burt Reynolds stars in this Orion Picture's contemporary action drama . As ou can see by the attached l stills from the film (attachments 1-3}y, we arranged for Burt 1 Reynolds 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 starring Kristy McNichol, Paul Winfield and Burl Ives, which recently completed production in Los Angel'es . Through our contact with awardwinning director Samuel Fuller, we arranged for Paul Winfield to enjoy one of our products in the film . This contemporary thriller is 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 ANGELES HERALD EXAMINER showing examples of the print coverage we recgived from placing our products in this film . John Travolta and Nancy Allen star in this Brian De Palma thriller which is currently in

New York OEice: 122 East 42nd Street . New York. New York 10168 (212) 490-8200 Cable : ROCOFUB New York . New York London Office : 27 Albemarle Street, London WIX 3FA . England • 499•0691 • TELEX 8S1•2SS71

Page Two -- Activity Report August 26, 1981

release . In addition to the enclosed clips, the scenes of Travolta with our product appeared in many publications across the nation including US Magazine . (attachment 6-12) D) THURSDAY THE 12th -- This comedy is a spoof of the thriller FRIDAY THE 13th and stars Tommy Smothers, Tab Hunter and Debralee Scott . We arranged for Debralee Scott to enjoy MORE in the film, as you can see by the attached still . The film recently completed production and no release date has been announced . (attachment 13) E) SECOND THOUGHTS -- EMI Films is presenting this film which is scheduled to begin filming in October . Starring in this romantic drama will be Lucy Arnaz, Craig Wasson and Ken Howard . We have arranged through producer David Foster to have our products used and displayed in this film .

F) We are also currently working with the following films which are using our product : ANNIE -- starring Carol Burnett, Albert Finney and Bernadette Peters I'M DANCING AS FAST AS I CAN -- starring Jill Clayburgh CAT PEOPLE -- starring Nastassie Kinski and John Hurt JINXED -- starring Bette Midler MOMMIE DEAREST -- starring Faye Dunaway G) Other films we are currently researching are : THE BEST LITTLE WHOREHOUSE IN TEXAS STING II

DANGEROUSLY MOTEL MY FAVORITE YEAR FRAME-UP TOOTSIE

H) We have rejected tie-ins with the following films for various reasons : BRAINSTORM

ENDANGERED SPECIES MONSIGNORE PENITENTIARY II SOMETHING WICKED THIS WAY COMES

Page Three -- Activity Report August 26, 1981

II . TELEVISION Although there are in television that been successful in for television and

various problems raised in placing products do not occur in motion pictures, we have placing our products in one Movie-Of-The-Week one mini-series .

A) WINDS OF WAR is a period piece epic currently being filmed in Europe and Los Angeles . We have arran,ed for the Franklin Delano Roosevelt character to smoke Came non-filters in various scenes . Among the many stars in this mini-series are Robert Mitchum, 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 American Nazi party . in Skokie, I],linois .*We were able to arrange for one of the co-stars, John Rubinstein, . to enjoy our product in two different scenes in this production . SKOKIE is currently scheduled to air on CBS in October .

C) We are continuing to approach talk show guests to enjoy our product 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 placed and enjoyed in favorable settings in Broadway productions . In addition to this effort, we have included many of New York's top producers 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 special story on the "10 Most Romantic Motion Picture Scenes" complete with photographs, many involving our product . We hope to have several clips by our next report to show the success of this effort . V . MISCELLANEOUS Our product mailing to celebrities is continuing and expanding on a regular basis . We recently completed a special mailing to female celebrities inviting them to try the new More Light 100's . Some of the actresses responded that they enjoyed the new product and look forward 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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^the ; Report;: se:must lace ., the taet that a res o ^nsibl e.aa d . g^j^;ot: previously : non-com^aitted7 scientists'3ad medical authorities 0V ^^ have 'spo1en :. . 4ne vould suppoee ve .vould aot repest Dr.. Little's^ oit ^..reitbrated Nnot . . Oane ; proven vould"hope'• the ^^. ' industry- would act •= fs;.. • .^^ =t • ^•^ ?^j.^ :{•!^.-:' -aftiraative^y and not . merely ^react. detensivelyi` We aust i thialc ^ •' . °: :^.^• ^ - -..., -. • •.• ^ recognize".`that in defense of th•e • industr ind• in y preservatioa •of its -•• ^ , .-.•', , :. :!i^"r ^ esent earnings positioa, we must either a) 'disprove the theory Of , ^'? ^ a=sa1 ieiationship or b) discover, .the j"aarcinogen or earcinogens, YK F;^ i; ^. ^: ,r^i^;,Co aarciaogene; or. thatever; and demonstrate, our ability ^ to= reaave 1.,, or neutralise thes. " This aeaas that we must embark •ia uhatever -'.` .;^=^ form -of. organization -.. oa aassive . and - impressi^rely financed research : .';.:•:° ,.into the dtiology of cancer as it. relates - to the use. of •'tobacco; vhat '^:'`= '-; constituents or combination of coastituents, in cigarette.- smoke cause • r:;'n-t:. ... or aice conducive to cancer of..the lung. : Certainly oae.vould , hope:,to -.. prove there is no etiological factor • in smoke but . the. odds are= ...;^ •.;;: ^t`^'` ,':, : greatly against suacess:"in that effort. -= At the best;- the probabilitiee •--are that -some combination o^ coastitueateot sao ke v ill bs louad ;..: ,... eonducive to the onset of ^cancer or , to create. an,environmeat in vhicb. caac e r 1 s more lik e1y to . occur. . .; • .s • • ,r.;•^ , • ; .,. % .- ,: .. ^-

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^= r^' The ?IBC caanot in my opiaion, provlde the vehicie •for such research: t' was 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; •' Wt.:' >::.>• -.•cer tainl y in its present . forsn; does not allow the breadth of , :f-3^-^^,•,research - caacer,• emphysema, cardiovascular •disorders,i etc. - -• ..1Z, ^;. ::essential to the protection of the tobacco• iaduetr y. : :. I suggest that the new research' eftort. ive enlist the cooperation "ot the Surgeon. ' .

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iiaanced sutononous,--selt perpetuating, 'aad unhontrolied save- that • ^^. t.r b^^ • r F i,: . }r ts eftorts be coniined to the siagle probles o f the relatio a ot *:=f . .^ , , . ,. .•. tobacco' to humaa health, -. ' =' -"'^_ '^... . . , •.: • c> . : +" .:,`. ?; . + ;•

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Thus to ac cept its respoa sibllit y 'would2 euggestYree the ^.• iadustry to take a much more aggressive posture"to ^neet -attack. ' It' ,-^ "' 11 tro uld in p articular Sree the industrg to attack the Surgeon Goneral' a'' .ts reliance on f •r^ ::•'• . -•^}.,^4j, _Heport itselt by pointing out 'itA gaps aIntloaissioas, •i :^_'•..w ;-statistics, its lack of clinical evideace,- etc.; etc: •:'True ve might:^`'=,' t~+i!•; worsen .our situation in litigation,= but that 1 rrould°• risk in contem- ^ ^.; ` of. the greater boaef ita to be derived troa going on •the. : `. ^. fensive..•'• My record ot advice in this area,-may welk- Justifythe ^°^^^•^,'^`-r :: :^ 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 : .:a•K^_'. t ` r ..-^; ` 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.• ` .-•`i ' •^ ^:• ^ 3 A •'i .

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r:; IC iaing, s.:vith'-restrictioa ^ of 't.be' •scope' and •coatrol •.oZ, -content• ithereoi: ^:'•^^='`^ qne' aight anticipate ' rules seeking ' to ' preveat- the.use of -:"glamour '`•^`:^ %' ^=-, ,^^';•^ ,^,r aituattons", endorsements isicluding those ot: athleteo; •: prominent •A,entertainmeat tigures,* *ete.,; aad• quite. likely an ettort to.. bar-'tobacco .,., 7 f :, ,, r r• '''^:^: •a J4^J^t.. .-:. -` advertising from -televisioa and-radio. . `_ ` •-,;.: ; ^ ^.t :; _ , : ::, ^,

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

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; but it can be effective only if the 'industry abandons its timarous approach to the Institute as a. functioning trade association. It should be noted that current activities in the Institute indicate, •.^^ ^t},'^ .••• +1•. ;t_ ^'`7.;>»`• lndeed; that that. attitude is beginning to change and it is to be .-•^s. •^ hoped that our present'dangers may further that progress. ^,t yrF ^Si•'T . . . ''-. `Jz^• .. ^'i

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8ven to 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 to.. ore, rather opposed the idea of attemPt ing to make: forward Plaas ^Y^ • . • +.s. . ,'. ^,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.

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of: a strong tobacco figure e.g. Albert Clay, Paul Hahn etc. a :^ .... ra e as9ocation staf f-including experienced and t r a^ = L. highly eiper respected lobbyists and, lastly; .such adornments of public figures ^..^' as appearance and occasion warrant :,. -.l..t:...: .

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PHILIP MORRIS U .S .A . INTEROFFICE 120 PARK AVENUE. NEW YOR.K . N .Y. 10017 To :

Les

Zuke

CORRESPONDENCE

Date: April24, 1991

From : Karen Daragan Subject : Ninja Weekend

Attached is the agenda for "Ninja Weekend," as well as some background information on each of the 31 seminar attendees . ' Burson-Marsteller is beginning on Friday night at 7 p .m . with an informal dinner/ice-breaker at the Sheraton Park Avenue. The issues seminar will begin at 8 :30 a .m . Saturday morning, and will run until 12 :30 p .m . The ninjas will then breakout into groups of 5 or less for their media workshops . Burson has arranged for a professional media trainer and a senior B-M account person to run each of the seven groups . The day's activities should end at 5 :30 p .m . Most of the guests are staying on an extra night at the hotel, but no activities are planned for them . Draft copy for the issue briefs and recommended message points will follow under separate cover . ### cc :

J . Nelson T. Walls D. Laufer J . Ramsay D. Davies M . Malik M . Paluszek J . McDaniel T. Borelli L. Pressl D . Crawford S . Banks L. Froelich

IV : W tA '

n J °n

CONFIDENTIA

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 smoking incidence 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 . Repeated government 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 adults turn away from smoking, the Industry must decline, just as a population

which does not give birth will eventually dwindle . In such an environment, 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 "fair share" of 14% because of population decline and the fact that some smokers start after age 18 .

I ,

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-2~ U

2 . MARKET SHARE -- THE "FIRST BRAND'~ ADVANTAGE (Cont .) B . THE COMPETITIVE SQUEEZE

This influx of 18-year-olds causes the pre-existing smoker market to shrink in share value : smokers who were worth 100 .0% of the market at the beginning of 1983 were worth only 98 .4% by year end . Thus, a brand which had a 10 .0% smoker share going into 1983 and did not attract any 18-year-olds would drop to 9 .9% even if it kept every member of its franchise . This means .that any brand/company which is underdeveloped among 18-year-olds must achieve net switching gains just to break even . In contrast, a brand which is strong among 18-year-olds can have net switching losses and still hold/gain share . The graph below shows loyalty rates from the 1983 SDS, i .e ., the percentage of smokers who smoked Marlboro at age 18 and still do, after one to twenty-plus years . These loyalty rates show that Marlboro loses about 25% of its 18-year-olds by age 20 and another 15% by age 24 -- a total loss of 40% over the six years between ages 18 and 24 . Translating this to share points, Marlboro would be expected to lose .3 points of its .8 points of 18-year-olds between ages 18-24 . This is, in fact, about the annual total NFO switching loss found for Marlboro in recent years . (See Appendix C .) However, since Marlboro gained .8 by becoming their "first brand", it can afford the .3 switching loss and still come out .5 points ahead . MFlRLBORO LOYALTY RATE

tsu- .n..u.u+Rna .rp .rsau

...a .rw.~war

C . MOMENTUM FROM AGING

Once a brand becomes well-developed among younger adults, aging and brand loyalty will eventually transmit that strength to older age brackets . -3i

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

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 franchise into 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 .

AGE

RATE PER DAY (1980-82 AVG .) Index % Increase Cigta . Vs . 18-24 vs . Total

18-24 25-34 35-49 50+

26 .2 30 .6 34 .1 31 .2

+ 17% + 30% + 19%

85 99 110 101

Total 25+

32 .0

+ 22%

103

TOTAL

31 .0

+ 18%

100

Source :

Incidence/Rate Report, Year 198 2 . -4-

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

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 ever smoked Marlboro a ain, a in could let Marlboro hol its market share or 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 even continue to grow without 18-year-olds, but much more slowly than in the past . SMOKER SHARE 1983 1988 TRACKER PROJECTION

MARKET SHARE VALUE 1983 1988 EST . PROJECTION

6. 7

2.4 8 .0

1 8-24 25-34 35-49 50+

41 . 2 24 .7 13 .5 6 .3

<- 17 . 6 28 .4 18 .4 7 .7

7 .1 4 .5

2 .2

8 .4 2 .5

TOTAL

18 .9

<- 17 .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, significantly 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 SWIT CHING IN 6 MO . STYLE IN B RAND BRAND FAM ILY

%

I NDEX

I NDEX

102 92

100

21 .5% 12 .8 10 .4 11 .1

178 106 86 92

100

12 .1

100

18-24 25-34 35-49 50+

16 .6% 13 .4 12 .1 13 .2

126

TOTAL

13 .2

Source :

X

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 offer a significant growth opportunity and also shrink the share value 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's smoker 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+ .

~

ASSOCIATED FILM

PROMOTIONS An AFP, Inc . Company

June 14, 1983

Mr . Sylvester Stallone 1570 Amalfi Drive Pacific Palisades, CA 90272 Dear Mr . Stallone :

In furtherance of the agreements reached between vourself and Associated Film Promotions, Inc . representing their client Brown & Williamson Tobacco Corp . (B & W), I wish to put in summary form the various understandings and details regarding B & W's appearances and usage in your next five scheduled motion pictures . B & W is very pleased to become associated with the following schedule of films and to have you incorporate personal usage for all films other than the character of Rocke Balboa in Rocky IV, where other leads will have prtoduct usage, as well as the appearance of signage (potentially ring) . The following is the current list of the next five (n) minimum films for B & It's appearance . It is understood that if production committments change the order or appearance of any of the group of films to be released, B & 1C will appear in a substituted film . The only non-appearance for B& 1F vill be b)• mulual consent of both parties in which case another S9vester Stallone movie will be arranged for subs-titution . The initial schedule of films is : A) . Rhinestone Cowbov D) .50/nB) . GodPather III E) . Rockv IV C) . Rambo

.

In consideration for these extensive film appearances of B & iY products, Brown and Williamson agrees to forward to Robert Kovoloff and Associated Film Promotions, Inc . their initial deposit to you of Two-Hundred-Fifty-Thousand Dollars ($250,000 .00) . This represents a fifty percent (50%) depovit of the total financial committment bv B & 14 . The subsequent Two-Hundred-Fifte-Thousand Dollars ($2a0,0q0 .00) is agreed to be forwarded in five (5) equal payments of Fift)°-Thousand Dollars ($50,000 .00) each payable at the inception of production of each participating film . On behalf of our client Brown & Williamson Tobncco Corp ., w•e wish to thank vou for this long term committment, and look forward to each release from the excellent schedule of films that they will participate in . ,

Very truly yours,

c CO

aml/ es F . Ripslinger S en i or Vi ce P res id ent

Or

•

JFR :jag James Coleman, Brown &

Williamson

Tobacco Corp .

10100 Santa Monica Blvd . . Suite 495 • Century City, California 90067 •(213) 553-4522

N ~ ~

~

Updated 2/24/88

CONFIDENTIAL INFORMATION-ATTORNEY WORK PRODUCT

DEFINITIONS FOR THE BROWN & WILLIAMSON SUBJECTIVE"CODING TAXONOMY

A

Documents relating to the promotion ADVERTISING & MARKETING: and sale of cigarettes to the public, but not covered by the subcategories below. AA

Documents ADVERTISING AND MARKETING RESEARCH: concerning information from the marketplace or directly

from consumers (current or potential) relating to This research may advertising and promoting cigarettes. investigate, for example, consumers' reactions to proposed ads or promotions, to new ideas for cigarettes or to actual cigarettes, etc. The research provides• raw data that will be used by the`company to decide how it will try to market its cigarettes to the public. AAA Advertising Testing: Documents concerning studies or surveys conducted to determine the effectiveness of-various advertisements and various forms of advertising.

AAAA Brand Name Research: Documents concerning this method of testing consumers' reactions to and interpretation of current or proposed cigarette names. AAAB Communications Testing: Documents discussing this method of testing print advertising in which interviews of resoQndents may be conducted on a personal basis in a shopping Each respondent is shown only the test mall. ad (a forced expos,,ure) and then asked a series of questions to determine if the ad is communicating itsintended message clearly and correctly. AAAC

Concept Testing: Documents discussing a method of testing ideas or concepts from which future advertising will be created. In this test, ideas are presented to the respondents in the form'of an ad, but it is the idea, not the adyertising execution, which is being tested. This test is usually done for a new product idea or for established brand line extension. Burke and -1-

0.D

Kapuler is one of several companies who have supplied this test to`Brown & Williamson. AAAD

Recall Testing: Documents discussing studies to determine which ads people remember seeing, how much of the ads they read, what they learned from the ads and the interest level attained for the products advertised. An example of recall testing is the "tip-in test", in which magazines with a test ad insert are placed in the respondents' homes. A telephone interview`is conducted 24-48 hours after the respondents have read the ad and respondents are asked about their recollection of various aspects of the ad. Market Facts is one of several suppliers of the tip-in test for Brown & Williamson.

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 Both product advertising and/or packaging. and user imagery are also usually measured in Responsive documents include ads this test. with percentages written by various sections of the ad (e.g., the picture or the title). Perception Research, Inc. is one of several of Brown & Williamson'es suppliers of this test.

AAAF

Documents concerning Focus Groups: 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 In these sessions, which acceptability. usually last two hours, advertising topic areas are outlined in advance, but specific questions and discussion flow are left t6the discretion of the moderator.

AAAG

One-on-One Interviews:;.Documents discussing unstructured personal Interviews (usually lasting about one hour) with specially trained moderators who',conduct an in-depth investigation into theconsumer's involvement, reaction to and interest in -2-

advertising visuals and/or copy. Method similar to category AAAF, "Focus Groups." AAAH Packing Research: Documents concerning research investigating consumers' reactions to proposed or current cigarette packs and various color and design schemes. AAAI

Portfolio'Test: 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 review a portfolio containing 20 advertisements (test ads and competing ads) for various product categories, including cigarettes, to determine the test ad's impact (i.e., the respondent's awareness of the ad or brand noting) and to determine 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 interview consumers by telephone to gather information on smoking habits, brands This form of testing purchased, etc. includes the purchase 'panel, which measures single and repeat purchase or usage of brands over time. Burke, Admar, and Market Facts are among Brown & Williamson's suppliers of this test. Consumers may be chosen by one of the two following methods:

AAAJA Name Bank: A group of names gathered from consumers who in the past have responded to company promotions in exchange for cigarette carton panels or other proofsof purchase. These consumers are regarded as loyal brand users and are used as a sampling pool in occasional marketing surveys. AAAJB

Random Sample: `Names that are randomly selected to be included in market research'testing.

-3-

AAB

Marketplace Studies: Documents concerning studies of 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 new or repositioned brand. The purpose of this test is to gather and report information concerning the actual persons who smoke this brand. AABB Corporate Study: Documents concerning a national Attitude, 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 Brown & Williamson and competitive brands. Admar Research Co. is one of several companies who supply this test to Brown & Williamson. AABC Image Studv: Documents concerning an indepth 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 following 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 & Williamson.

AABD

Market Perception Study: Documents concerning a mapping,`telephone/mail survey of smokers that establishes relationships (similarities as wellas differences) among brands of cigarettes as perceived by smokers and the criteria by which smokers perceive the brands to be similar or different (e.g., taste, tar level, etc.)

AABE

Seamentation Study: Documents concerning a comprehensive study of the smoker market that classifies smokers into segments based on the factors which motivate them to choose or

-4-

reject a given brand of cigarettes. These segments are described in terms of demographics, socioeconomic and psychographic structure of current brand franchises. The purpose ofthis study is to identify target groupsor'the marketing of established brands or new products and to gain insight for developing marketing strategies to research these target groups. This study involves interviews with randomly selected smokers and may be supplied to Brown & Williamson by Norsearch, McCann Erickson or John Morton Co. among"others. AABF Single Unit MarketinQ'Model ISUMMI: Documents concerning a self-administered mail questionnaire used to identify smokers' beliefs and desires and also to simulate the impact of product changes and brand repositionings. Eric"Marder Associates is one company which has`supplied this test for Brown & Williamson.

AABG Switching Study: Documents concerning a quantitative study which monitors smoking incidence and smoker mobility among starters, restarters, switchers; loyals and quitters to determine demographics, key attitudes of smokers, and brand shares. Data is tabulated quarterly, semi-annually and annually. Market Facts, Inc. isone company which administers the National Brand Switcher Study. AABH

AAC

Demographics: Documents concerning a statistical study of the population emphasizing density, distribution and vital statistics.

Product Testing: Documents`concerning a testing of proposed, modified or already marketed cigarettes by consumers for flavor, preference or other consumer reactions. AACA Blind Product Testina: A test in which a product's identity is'masked and not revealed to the consumer. The consumer's reactions to the unidentified product are then measured. This type of testing includes Consumer Product Testing (CPT), which measures

-5-

consumers' reactions to unidentified products after they smoke up to five packs, and Extended Use Testing (EUT) which measures changes in consumers' reactions to unidentified product over time. AACB Concept-Product Test: A combined test of an ad concept for a new or repositioned brand and the product itself. The consumer is exposed to a concept in an initial, personal interview and is given`the product to take home to use. The consumer's telephone interview is conducted later to measure the reactions to the product. This test is used to measure the consumer's reactions (expectation vs. fulfillment) to the complete offering of a new brand in terms of acceptability, consonance of advertising and produc't, purchase interest and imagery. Market Facts, Kapuler and Burke are among,.the companies which have supplied these tests for Brown & Williamson. AACC

Focus Groups: Documents concerning discussion groups of consumers (usually 8-10 people) led by a trained moderator in which advertising topic areas are outlined in advance for the consumers by the moderator, but specific questionsand the discussion flow in each session are left to the discretion of the moderator. Sessions usually last about two^hours and arc taperecorded. The research is used to explore consumers' reactions to products and to provide direction in terms of vocabulary, image, social dissonance and acceptability of the tested item.

AACD Identified Product Test: Documents concerning tests in which a product is presented to consumersin its usual package in fully-identified form, occasionally accompanied by an advertisement. AACE

One-on-One Interview: Documents concerning one-on-one sessions with specially trained moderators who conduct`an in-depth, nonstructured investigation to determine single cigarette (sip) test reactions to product. This method is similar'to category AACC, "Focus Groups."

AB

AAD

Opinion Trackina: Documents concerning the public's view (bothsmokers`and 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 company's brands and total industry performance. This information is provided by each manufacturer directly to J. Maxwell, the,supplier, on a quarterly basis.

ADVERTISING & MARKETING STRATEGY:; Documents concerning overall plans to make smokers aware of the company's cigarettes and to persuade smokers to try and then continue to smoke those cigarettes. ABA Brainstorming Memos: Documents concerning concepts or ideas for advertising or marketing proposed by outside agencies or Brown &Williamson marketing or advertising personnel which were never implemented into Brown & Williamson's 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 a five-year period. ABC

Documents'concerning a marketing Long-Range Plan: and advertising plan discussing long term goals of one or more Brown & Williamsson brands that is not specifically designated as a five-year plan.

ABD

Documents concerning promotions, which Promotions: 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 a discount by sending in proof's of purchase, or other promotions not covered in categories below.) ABDA Promotions, Cigarette Sampling: Documents relating to the distribution of samples of cigarettes to the gene=al public. Responsive

documents include guidelines, ordinances and regulations regarding sampling. Do not include documents concerning personal gifts of cigarettes. Documents concerning the industry's Code of Cigarette 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 relating to celebrity endorsements or movie exposure of product.

ABDD Promotions, Retailers:` Documents relating to various point-of-purchase (POP) items and displays including Buy-One-Get-One-Free (B1G1F) and similar offers. Also code documents relating to negotiations between Brown & Williamson andretailers concerning preferential retail space and advertising for Brown & Williamson products. ABDE

Promotions, Event Sponsorships: Documents relating to brand sponsorships of various events (e.g., RALEIGH 'Rodeo, RALEIGH truck pull, KOOL Jazz Festival, spring break

activities, etc.). ABDF

ABE

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

Target Audience: Documents concerning the portion of the smoker market toward `which advertising and marketing strategies are aimed. Identification of the target audience may involve a study of the smokers 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^er Studies, Hispanic Smoker Studies and Smoker Personality Studies. Code documents to the appropriate 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.

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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 Hispanic

smokers. ABEE

Documents concerning advertising, Black: market strategies, ormarket research (i.e., studies of brand awareness, message recall, or usage behavior) fogusing on black smokers.

ABEF

Documents concerning advertising, Military: market strategies, or market research (i.e., studies of brand awareness, message recall, or usage behavior) focusing on military personnel who smoke.

ABEG

Documents concerning advertising, Youth: market strategies, or market research (i.e., studies of brand awareness, message recall, or usage behavior) focusing on smokers 18 years of age or younger.

ABEH Starters: Documents concerning advertising, market strategies, ormarket research (i.e., studies of brand awareness, message recall, or usage behavior) focusing on persons who have not yet started smoking. ABEI

Documents Concerning advertising, Quitters: market strategies, or`market research (i.e., studies of brand awareness, message recall, or usage behavior) focusing on persons

attempting to quit smoking. ABEJ Psychographic Sec;ment: Documents concerning advertising, market strategies, or market -9-

research (i.e., studies of brand awareness, message recall, or usage behavior) focusing on specific psychological profiles (e.g., hedonists, worriers, practicals, copers, New Autonomous, Gamesmen, Scramblers, Traditionalists, American Dreamers and Aimless). ABEK

KOOL: Documents concerning advertising, market strategies, or market research (i.e., studies of brand awareness, message recall, or usage behavior) focusing on KOOL smokers.

ABEL

RALEIGH: Documents concerning advertising, market strategies, or market research (i.e., studies of brand awareness, message recall, or usage behavior) focusing on RALEIGH

smokers. ABEM VICEROY: Documents concerning advertising, market strategies, or market research (i.e., studies of brand awareness, message recall, or usage behavior) focusing on VICEROY

smokers. ABEN

Documents concerning advertising, BARCLAY: market strategies, or market research (i.e., studies of brand awareness, message recall, or usage behavior) focusing on BARCLAY

smokers. ABEO

Other BROWN & WILLIAMSON Products: Documents concerning advertising, market strategies, or 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, market strategies, or market research (i.e., studies of brand awareness, message recall, or usage behavior) focusing on smokers of, "low tar•" cigarettes. ABEQ

Documents concerning Menthol/Nonmenthol: advertising, market strategies, or market research (i.e., studies of brand awareness, message recall, or usage behavior) focusing on smokers of menthol or nonmenthol cigarettes.

AC

VICEROY ADVERTISING & MARKETING: Documents that relate to the advertising and marketing of VICEROY cigarettes. ACA Malor VICEROY Advertising Themes: Documents

concerning themes of advertising campaigns. Examples are the "dentists" campaign, the special filter campaign, the "All the Taste, All the Time" campaign, the tension release campaign and the auto racing campaign. ACB

AD

Historical Surveys of VICEROY Advertising: Documents which within themselves trace the history of VICEROY advertising.

KOOL ADVERTISING & MARKETING: Documents that relate to the advertising and marketing of kOOL cigarettes. ADA MAJOR KOOL ADVERTISING THEMES: Documents concerning themes of advertising campaigns. Examples are the throat comfort theme, the Willie the penguin campaigns, "Switch from 'Hots' to KOOLS," "Come Up to KOOL," "Problem-Solution/Slice of Life," "Menthol Mist," "Lady Be Kool", the waterfalls theme and the biker campaign.

ADB

AE

Historical Surveys of KOOL Advertising: Documents which within themselves trace the history of KOOL advertising.

RALEIGH ADVERTISING & MARKETING: Documents that relate to the advertising and marketing of RALEIGH cigarettes. 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 integral part of RALEIGH advertising.: AEB

AF

Historical Surveys of RALEIGH Advertisina: Documents which within themselves trace the history of RALEIGH advertising.

BARCLAY ADVERTISING & MARKETING: Documents that relate to the advertising and marketing of BARCLAY cigarettes. AFA Maior BARCLAY Advertising Themes: Documents concerning themes of advertising campaigns. AFB

Historical Surveys of BARCLAY Advertising: Documents which within themselves trace the history of BARCLAY advertising.

AG

OTHER BRAND SPECIFIC ADVERTISING & MARKETING: Do not code documents to this general heading. AGA Other B&W Brands: Documents'that relate to the advertising and marketing of^another Brown & Williamson brand (e.a., BELAIR, TRAMPS, WINGS).

AGB

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

AGC

BAT Brands: Documents that relate to the advertising and marketing of BAT cigarettes.

ADVERTISING & MARKETING POLICY: Documents relating to guidelines on cigarette advertising and marketing.

AHA B&W Policy: 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 print tar and nicotine figures on cigarette packs. AHB

Cigarette Advertisina Code: Documents so entitled or 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 the administration of the Code. `Look for the acronym CAC.

AHC

Code of Cigarette Samplina: 'Documents so entitled or 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/or expenditures for marketing and advertising.

AJ

PROJECT TRUTH/PROJECT A/PROJECT B_s Documents relating to any of these public issue campaigns involving the tobacco companies and TI. "Project A," developed in 1970, consisted of three TV spots`on smoking and heaith that would be substituted for some regular TV commercials for which time had already been contracted. The spots were rejected by the network. Ruder & Finn proposed "Project B," which called for TV and print advertising that might position tobacco beside liquor in terms of public tolerance. In the fall of 1970, TI distributed two public service TV spots, produced by Ted Bates, 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 & Williamson, 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. Tiderock, TI's public relations agency, arranged to run an advertisement promoting the article. Tiderock also purchased and distributed reprints of the article. Stanley Frank later wrote a similar article entitled, "Cigarette 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 & WILLIAMSON v. JACOBSEN: Documents concerning a libel suit filed by Brown & Williamson when Walter Jacobsen, a CBS reporter, used acontroversial "illicit pleasure campaign" that the Ted Bates agency had ^ proposed to Brown & Williamson to accuse Brown & Williamson of adopting an advertising strategy to encourage children to smoke.

AM

Documents relating to the BARCLAY CONTROVERSY: controversy concerning advertising of BARCLAY cigarettes relating to the 1 mg. tar rating^claims made in its The cigarettes utilized an Actron filter, advertising. the mechanics of which were questioned by other cigarette companies, particularly Reynolds and Philip Morris. Documents regarding Brown & CINEMA ADVERTISING: Williamson's promotion of cigarettes in theaters. Include documents concerning the,"Snow White

Controversy," a complaint filed with the FTC in August, 1983 by Action for Children's Advertising, Inc., a public interest group protesting the showing of a KOOL advertisement prior to the Saturday matinee screening of "Snow White and the Seven Dwarfs" on July 16, 1983 at a theater in Newton, Massachusetts. Brown & Williamson contended that it was never the company's policy to show cigarette ads along with "G" movies and that the occurrence was a mistake by the theater owner. Also include documents about Brown & Williamson's decision in 1984 to discontinue its program of cinema advertising.

B

AWARENESS OF POTENTIAL HEALTH HAZARDSi Documents relating to 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 that smokers' 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 General's reports and government and medical publications upon public awareness of smoking and health issues. Include documents discussing subjects such as'effects of anti-smoking campaigns on quitting, starting and moderation.

BB

BROWN & WILLIAMSON AWARENESS & ACTION: Documents discussing the smoking and health controversy or smoking 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 or commentary by or on behalf of Brown & Williamson or BAT on non-Brown & Williamson work, research or publications. Documents tobe coded to this category include collections of abstracts prepared by or on behalf of Brown &'Williamson or BAT.

BBB

Recommendations (e.g., re Research or Company Actions): Documents relati;ng to any recommendations made by Brown & Williamson or BAT personnel or consultants regarding major goals for Brown & Williamson or industry sponsored resear(ph and/or actions concerned with smoking and health issues.

BBC

Attendance at Scientific Meetinas or Research i Conferences: Documents indicating attendance by Brown & Williamson or BAT personnel at public or industry scientific meetings or research conferences. Includes people not employed by either company attending on behalf of Brown & Williamson or BAT. Do not°code document indicating attendance of Brown & Williamson employees at BAT or Brown & Williamson research conferences. Code those documents to category CCB.

BC

BROWN & WILLIAMSON POSITION PAPERS: Documents by Brown & Williamson stating Brown & Williamson's position regarding the smoking and health 6ontroversy.. Documents prepared by Brown & Williamson 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 prepared• by BAT for the use of its employees, and that

discuss smoking and health issues, should be coded to this category. BROWN & WILLIAMSON CORPORATE: Documents relating to Brown & Williamson and other BAT companies 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 relating to the history and development ofBrown & Williamson and other BAT companies and documents'pertaining to the internal structure of Brown & Williamson and its affiliated organizations, including departmental and organizational charts. Responsive documents include documents concerning Brown & Williamson's organizational relationship with other BAT conipanies (e.g., BATUS, Imperial).

CC

BROWN & WILLIAMSON/BAT RELATIONSHIP: Documents concerning Brown & Williamson's relationship with the British American Tobacco Company.= Include documents mentioning any research sharing, division of research responsibilities, or communications concerning marketing 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 & Williamson and BAT which allowed these companies to share research results. CCB

Brown & Williamson/BAT Meetings: Documents discussing or concerning meetings between or among

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Brown & Williamson and BAT research or scientific personnel. Do not code documents indicating attendance by Brown & Williamson or BAT personnel meetings at public or industry research or scientific conferences. Code those documents to category BBC. CD

LIBRARY: Documents relating to the decision to establish and maintain a collection of documents dealing with the health consequences 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 Directors and other committees. Responsive documents include minutes and summaries of meetings.

CF

SALES, PROFITS, PRICING & MARKET SHARE: Documents relating to sales, profits generated, pricing and market share of one individual Brown & Williamson product of all Brown & Williamson products. CFA Excise Taxes: Documents discussing or concerning the taxes that federal or state governments levy on cigarette products.

D

Documents concerning diseases and/or DISEASES & CONDITIONS: conditions and the harmful and/or toxic effects allegedly associated with cigarette smoking. DO NOT CODE ANY DOCUMENTS TO THIS MAJOR HEADING. Documents d?.scussing research concerning these diseases should also'be coded to the appropriate category E, "Research Focus," or category F, "Research Techniques."

DA

ADDICTION/DEPENDENCY/HABITUATION: Documents which specifically mention the alleged"condition of physiological or psychological dependence, characterized by unpleasant reactions upon withdrawal of the substance and tolerance to the substance, as identified by the need for increased doses of the substance to achieve the same effects as had been achieved in the past by smaller doses. Documents often will discuss nicotine, especially in terms of maintaining "satisfactory doses" or satisfying a "physiological need." Key words to look for include dependence and habituation. Documents concerning research concerning this condition should also be coded to category ED, "Pharmacology."

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DB

EMPHYSEMA/BRONCHITIS/COPD: Documents which specifically discuss these non-cancerous chronic diseases of the lungs, including asthma. Key words to look for include chronic obstructive pulmonary disease (COPD), chronic obstructive lung disease (COLD), and chronic airways obstruction (CAO).

DC

RESPIRATORY FUNCTION & STRUCTURE (INCLUDING Documents discussing all influences on CILIASTASIS). 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 microscopic hair-like projections in the airways, resulting in a slowing of mucus flow. Also look for muco-ciliary clearance or'mucus transport.

DD

Documents discussing cancer in general or CANCER: discussing the causes of cancer without reference to any Key words which may pertain to particular location. this category or its subcategories include mutagenicity, carcinogen, tumorigenic, metaplasia, hyperplasia, neoplasm and abnormal cells.

DDA: Lung Cancer: Documents speci'fically relating to This category includes documents lung cancer. discussing "bronchogenic carcinoma." Documents specifically DDB: Laryngeal/Throat Cancer: relating to laryngeal or throat cancer. Documents relating to a specific DDC: Other Cancer: form of cancer other than lung, laryngeal cr throat .cancer (e.g., skin cancer). Documents discussing changes DDD: Cellular Changes: associated with exposure to various substances or pathogens and considered by some investigators to be "pre-cancerous." Documents discussing the occurrence DDE: Mutacienesis: or induction of a permanent change in the genetic material. DE

Documents regarding diseases of the CARDIOVASCULAR: 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).

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DF

PREGNANCY/FETAL: Documents relating to diseases and' conditions associated with pregnancy or the newborn. This category includes documents discussing

teratogenicity (birth defects), low birth weight and spontaneous abortion. DG

E

OTHER DISEASES OR UNSPECIFIED HEALTH CONSEOUENCES: Documents associating.smoking with diseases other than addiction, cancer, emphysema, bronchitis, COPD, cardiovascular disease or fetal complications. This cateaorv includes documents suaaesting or contending that smoking is/is not a cause of"death. Also include documents associating smoking with chronic disease other than those named above.

RESEARCH FOCUS: heading.

EA

Do not code any documents to this major

Documents discussing the COMPONENTS RESEARCH: determination of the chemical nature of cigarette smoke, by identifying or quantifying specific components. This category also includes biological`testing 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 this category, 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

with a series of solvents. ither the whole smoke condensate or the fractions may also be tested for biological activity, using mouse skin painting or various in vitro tests, e.g., Ames test. Key abbreviations to look for include CSC (cigarette smoke condensate) and WSC (whole smoke condensate).

EAB

EB

Documents discussing the chemical Gas-phase: analysis or biological testing of the nonparticulate part of whole smoke or its components. Look for testing of that portion of smoke that has passed through a Cambridge filter.

SMOKE MODIFICATION: Documents concerning the modification of the chemical or physical nature of tobacco smoke. This category includes changes in levels of tar and/or nicotine, as well as other specific

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compounds (e.g., B(a)P, nitrosamines) by any method, including changing tobacco blends. The measurement of levels of components, without the objective of altering those levels, should be coded to the appropriate category under EA, "Components Research." Specific smoke modification methods include:

EBA

Documents discussing changes in Design Variables: any aspect of cigarette design (e.g., type of wrapping paper, paper porosity, paper additives), except for those included in the other specific subcategories.

EBB

Docume'hts concerning the Filler Modification: changes in the tobacco filler for the stated purpose of modifying the chemical nature or biological activity of the smoke. Code documents concerning changes in the "tobacco blend" to this Specific subcategories include: general category. EBBA Tobacco Substitutes: Documents describing

attempts to reduce tar and nicotine yields by substituting non-tobacco filler materials for some percentage of tobacco in the cigarette. This category includes documents concerning tests for biological activity resulting from these substitutions. $ey words and abbreviations to look for include Cytrel, NSM (new smoking material)°; BATFLAKE, and Celanese Smoking Product. EBBB

Code only those documents Tobacco Treatment: discussing techniques clearly described in the document as being related to smoke Substances applied to tobacco modification. for this purpose may include ozone, various solvents, sodium nitrate and other chemical additives, heat, etc. Also include documents which discuss smoke modification by denitrification (i.e., the removal of nitrates or other nitrogen-containing compounds) or by incorporating "reconstituted leaf" (RL), "expanded tobacco" (ET), or "expanded stems" (ES) into cigarettes. Do not include documents discussing "Tobacco Processing," which describe treatments designed to affect the`"smoking quality" of the cigarette rather than the nature of the "Tobacco Processing" documents should smoke. be coded to category EG.

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EBC

Filtar Research: Code any documents which discuss aspects of filter development and modification but which are not included in the following specific subcategories to this main category. Do'not 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 which discuss the effect of a filter on the smoke yield (e.g., percent tar and/or nicotine removed).

EBD

EC

EBCB

Selective Filtration: Code documents discussing filters designed to reduce or remove specific smoke components. Look for the specific term selective filtration, especially in connection with components such as HCN (hydrogen cyanide), phenol, acrolein, aldehydes, gas phase components, etc.

EBCC

Ventilated/Air-Diluted Filter: } Code documents discussing the dilution of cigarette smoke by all;owing air to enter the smoke through the filter either through small ventilation holes or by using highly porous "tipping paper" to wrap the filter.

EBCD

Actron Filter: Code documents discussing the Actron filter, a cel:ulose acetate filter designed to create a whirling action in the inhaled smoke, resulting in a full-flavored delivery.

Precursor Studies: Documents discussing attempts to determine which substances in tobacco contribute to the presence of certain compounds in smoke (e.g., B(a)P, nitrosamines,etc.). Code such documents only if the relationship of a precursor substance to a smoke component is directly expressed in the document.

ADDITIVES: Documents discussing`the 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 ingredients

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used in a particular Brown & Williamson brand, in all Brown & Williamson brands, or in all cigarettes shouid be coded here. ECA Flavor Research: Documents discussing the analysis or modification of cigarette smoke flavor by adding specific flavoring ingredients to cigarettes. Most documents will fall into one of the following

subcategories: ECAA Flavor Analysis: Code documents specifically discussing only the chemical nature, chemical purity, or physical stability of substances under consideration as flavoring ingredients.

ECB

ECAB

Flavor Synthesis: DocRuments discussing methods and techniques` for the laboratory synthesis (creation in the laboratory) of chemicals being considered as potential flavoring ingredients.`

ECAC

Documents discussing the Taste Panel: formation of, attitudes of, or reactions of groups of "test smokers" who evaluate the; flavor of smoke from either marketed or This may include experimental cigarettes. determination of the influence on smoke flavor of changes in tobacco filler blend or flavor additives.

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 the introduction of non-tobacco ingredients to their cigarettes. ECBB

Documents Flavoring Testing Program: indicating whether Brown & Williamson or others used tests or other guarantees of safety to determine whether flavor additives used in cigarettes contribute to causation of diseases associated with smoking. Be sure to also code for the appropriate category under D, "Diseases and Conditions" and F, "Research Technique."

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ECBC

ECC

ED

other Testing Program: Documents indicating whether Brown & Williamson or others used' tests or other guarantees of safety to determine whether non-tobacco ingredients other than flavorings'(e•a., humectants, casings, etc.) contribute to the causation of diseases associated with smoking. Be sure to also code for the appropriate category under D, "Diseases and Conditions" and F, "Research Technique."

HHS/HEW Disclosures: Documents discussing negotiations, meetings, or discussions relating to the disclosure of non-tobacc.o ingredients to the HHS or HEW.

Documents discussing experiments which PHARMACOLOGY: measure cardiovascular or behavior responses to smoke or These responsesinclude skin its components. temperature and/or blood pressure changes, analgesia, Do not include in aggression, and learning enhancenient. this category studies using potential flavorings or Code those documents°to subcategory ECB, additives. "Testing Program." EDA Reinforcement: Code all doc;uments which discuss animal studies in which the"animal gives a specific behavioral response (e.a., "'works") in order to receive a test substance (e.g., nicotine). Also, code documents concerning self-administration of a test substance. EDB

Code all documents discussing the Tolerance: alleged tendency of smokers to increase their use of cigarettes in order to satisfy increasing Special care should be used demands for nicotine. to code all documents discussing the absence of this effect to this categoryalso. Include animal studies in which tolerance is evidenced by a diminished behavioral effect`with repeated exposure to a smoke component, usually nicotine.

EDC

Code all documents which describe the Withdrawal: claimed physical symptoms which allegedly result r Include animal from abstinence from smoking. studies which attempt to determine if deprivation of nicotine causes disruption in behavior.

EE

EF

"SAFER" CIGARETTE: Documents suggesting that Brown & Williamson, BAT, or the other tobacco companies conducted experiments or had the'knowledge and capability.to manufacture safer cigarettes, but did not put such cigarettes on the market. Key phrases or names to look for include "low CO,," Gio Gori, and Project Rio. G. =G EEA Proiect EMN: Documents discussing BAT's efforts to develop a "less hazardous" cigarette in the late 1970's by "eliminating, modifying, or neutralizing" certain components in cigarette smoke. EEB

B Series/Janus: Documents discussing the series of experiments, including Project Janus, performed by the Battelle Institute for BAT. The experiments, which were conducted in the late 1960's and the early 1970's, included inhalation studies and mouse skin painting. Documents discussing those research 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 palladium as a catalyst for tobacco treatment.'

EED

Documents describing Tobacco Working Group (TWG): the work in conjunction with this group at the National Cancer Institute to develop a "less Look^for references to TWG, hazardous cigarette." the "Less Hazardous Cigarette" project, the "Lung Cancer Task Force," the Smoking and Health Program (SHP), or the NCI specifications.

Documents discussing any aspect HUMAN SMOKING BEHAVIOR: of human smoking behavior or how"smoking affects human behavior.

EFA Compensation, Titration, Modification of Smoking: Documents discussing the theory that smokers alter their smoking habits according to.the type of Look for all references to cigarette being smoked. compensation for reduced yields of components (most notably nicotine) by taking more puffs, deeper puffs, holding breath, etc.; titration (i.e., smoking in a manner to maintain a "desirable" level of nicotine in the body); or any other modificaf.ion of smoking habit or pattern:

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EFAA Style Switching: Documents discussing a smoker's switch from smoking cigarettes in one style to another style (e.a., low tar'to ultra low tar, nonmenthol to menthol, nonfilter to filter, etc). EFB

Effect of Advertisina: Documents on the influence or 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

Documents discu5sing factors Initiation: influencing smokers to beginsmoking. Documents containing information on the age of initiation and reasons for starting (e.g., peer pressure, effect of advertising, etc.) shouldalso be coded here.

EFD

Documents concerning efforts by Moderation: 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 withdrawal, relief of stress, weight loss, etc.

Documents concerning quitting. Includes EFF. Quitting: descriptions of the type of smoker who quits, statistics on the number of smokers who quit, reasons for quitting and methods for quitting. EFG Smoker Psychology (e.g., Mood, Learnina, Documents describing Aggression, Attention): psychological influences of smoking, including influences on mood (either beneficial from smoking

or negative from abstinence); learning (increased or decreased information retention or learning efficiency); aggression (e.g., claims that nicotine reduced aggression); and attention (especially negative influences on attention span by deprivation from smoking). EFH Cognitive Dissonance: Documents concerning smokers' rationalizations for continuing to smoke despite knowledge of potential health hazards.

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EG

TOBACCO PROCESSING: Documents describing the breeding, growing, cultivation, fertilization, harvesting, curing, or preparation of tobacco for purposes of maintaining or improving 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 category EBBB.) Include documents discussing the economics 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 examination of defects, as well as the testing of tobacco or`cigarettes from one year or batch in comparison to previous years or batches. Specific categories include: EHA Leaf Analvsis: Documents discussing chemical or physical analysis of tobacco^leaf for overall quality of smokeability. Documents will often contain lists of chemical compounds in the leaf' itself. Do not include documents concerning "Precursor Studies," 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 & Williamson and other tobacco;companies. Code documents discussing tracking done by and for Brown

& Williamson. EHC

EI

TITL/FTC Tracking: Document5 concerning the tracking of tar, nicotine, or other components' levels in commercial cigarettes by the Tobacco Institute Testing Laboratory (TITL) or the FTC.

PRODUCT DEVELOPMENT: Documents relating to the development of new products or changes in an existing product (e.g., the flavoring, cigarette construction or packaging) to meet specified standards. EIA Ellis Patent: Documents that discuss or relate to a patent obtained by Sir Charles Ellis of BAT in 1964-66 for a smoking devicethat used a flavor cap containing nicotine enriched`tobacco that was

-25-

heated by burning tobacco on the outside of the capsule. Also include documents concerning the amendment to the patent obtained with Brown &. Williamson's Dr. I.W. Hughes as a collaborator. EIB

EJ

Aerosol Cigarette: Documents"that discuss any aspect of research or development of a cigarettelike product by any other cigarette manufacturer which would provide the smoker with the pleasure of cigarette smoking but which may or may not require burning of tobacco to produce the aerosol.

ENVIRONMENTAL TOBACCO SMOKE: Documents discussing the presence of tobacco smoke in the air, especially

indoors.

Look for studies in which cigarette smoke

components (e.Q., nicotine, carbon monoxide, nitrogen

oxides, particulate matter) are measured in air. If document discusses possible health effects in nonsmokers exposed to Environmental Tobacco 5moke (ETS), also code to appropriate categories under D,' "Diseases and Conditions." Key words to look for include passive smoking, public smoking, sidestream smoke, ambient smoke and second hand smoke.

F

EK

CIGARS/SMOKELESS TOBACCO: Documents that discuss cigars, cigar tobacco, "smoking" (pipe) tobacco, snuff, "roll your own" tobacco or chewing tobacco. Most notably, these include discussions of tobacco fermentation. Look for references to "seedleaf" tobacco.

EL

PESTICIDES: Documents that discuss the presence of pesticide or herbicide residues in tobacco or in smoke. Also include documents discussing`the biological testing of pesticides or herbicides such as Penar.

EM

SMOKING MACHINE DEVELOPMENT: Documents that discuss the development or improvement of machines that simulate human smoking behavior.

RESEARCH TECHNIQUES: The subcategories below should be coded only when the document includes discussions of or references to biological testing. Code to the most specific

subcategories appearing in the document. Documents which discuss biological testing but which do not give sufficient information to be coded to specific subcategories below should be coded to this major heading.

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_

FA

EX VIVO: Literally, "out of life." Documents discussing techniques in which tissues or organs are removed from living 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 are examined for changes in ciliary activity. One such test is the Rabbit Trachea Hyperplasia Test. FB

Literally, "in glass."K Documents concerning IN VITRO: biological testing in a test tube or other laboratory Code documents which discuss in vitro tests apparatus. Specific subcategories include: in general here. FBA

Documents concerning a mutagenicity Ames Test: test involving application of a substance to a Key words to look strain of bacteria (Salmonelfila). for include Salmonella. S. typhimurium.

FBB

Documents NMFI (nitromethane fraction^index): concerning a test developed'to serve as a chemical, indicator of the biological"activity of smoke The nitromethane fraction (NMF) is the condensate. subpart of smoke condensatewhich allegedly contains most, if not all, of the claimed The carcinogenicpolycyclic aromatic hydrocarbons. nitromethane fraction index`(NMFI) is a measure of the degree of binding of the NMF to egg albumen obtained by multiplying its'NMF value and its specific binding activity.

FBC

Documents relating to in Paramecia Toxicity Tests: vitro ciliastasis tests involving paramecia, one cell organisms that propel themselves by hairlike One test, referred to as structures called cilia. a "hanging drop paramecium test," exposes a hanging culture of paramecium to puffs of cigarette smoke to determine the numbers of puffs required to stop Another test exposes all cilia movement. paramecium overnight to a homogenate of smoke collected in water to determine the concentration of homogenate required to kill a standard volume of paramecium.

FBD Clam Gill Ciliaa Documents relating to an in vitro test in which clam cilia were exposed to whole smoke or smoke condensate to measure ciliastasis. Some of this work was done as part of Project Conqueror.

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FC

FBE

TetrahYmena Testina: Documents relating to in vitro testing in which tetrahymena, one cell ciliated organisms, are exposed to either an aqueous smoke dispersion (solution tetrahvmena test) or to condensate dissolved in acetone (particulate phase tetrahvmena test) to determine the minimum dose required to reduce mobility, activity, or kill all or a portion of the tetrahymena.

FBF

BHK21 Cell: Documents relating to any of the several in vitro tests exposing baby hamster kidney (BHK) to smoke condensate..

Literally, "in life." Documents discussing IN VIVO: tests in which a substance is applied directly in or on a living animal. If the document discusses Animal Inhalation, code to appropriate category or subcategory under FD, not to this category. If the document does not discuss specific in vivo tests, code to this general Specific techniques include: category.

FCA Ingestion: Documents discus;sing tests in which the substance is given to the animal either in food, in water, or by some form of forced administration directly into the stomach (e.g., intubation). FCB

Topical Apalication: Documents discussing tests in which the substance is applied directly to the outside of the animal. Examples of documents to be coded to this category include discussions of applications to the skin of mice (MSP) or to rabbit ears or eyes (Draize test). FCBA CAM Hyperplasia (chor'ioallantoic membrane): Documents relating to .this non-mammalian in vivo test in which cigarette smoke condensate is applied to the surface of the chorioallantoic membrane (CAM) of fertile hen eggs and the resulting'increase in thickness of the membrane (hyperplasia) is measured.

FCC

Toxicitv: Documents discussing the general toxic effects of a substance on the whole animal after administration by various means including oral, injection, etc. Documents discussing inhalation studies should be coded to the appropriate sub-category under FD, "Animal Inhalation."

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FCD

FD

Metabolism: Documents discussing the effects of a test substance on metabolicenzymes or on the induction of these enzymes.' Also code studies of metabolites or routes of metabolism of a component or additive.

ANIMAL INHALATIONe Documents generally discussing scientific experiments in which animals inhale test substances but which do not relate to specific

subcategories below. FDA

Documents generallydiscussing tests in Acute: which animals are subjected to and inhale a test substance in a single exposure of a period of minutes or hours. Look for`Goblet Cell Test, a short term inhalation test exposing animals, usually rats, to cigarette smoketo determine the number of post-exposure goblet cells in the This type of testing was done in Project trachea.

Conqueror.

FDB

FDAA

Documents discussing scientific Rodent: experiment in which rodents, including rats, mice or guinea pigs, inhaled test substances in a single exposure of minutes or hours.,

FDAB

Hamster: Documents discussing scientific experiment in which hamsters inhaled test substances in a single exposure of minutes or hours.

FDAC

Rabbit: Documents discussing scientific experiment in which rabbits inhaled test substances in a single exposure of minutes or hours.

FDAD

Dog: Documents discussing scientific experiment in which dogs inhaled test substances in a single exposure of minutes or hours.

Documents generally discussing tests in Chronic: which animals are subjected`to and inhale test substances in repeated exposures over a period of days, months, or years. FDBA Roden : Documents discussing scientific experiments in which rodents, including rats, mice, or guinea pigs, inhale test substances after repeated exposures over a period of days, months or years.

FE

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 scientific experiments in which rabbits inhale test substances after repeated exposures over a period 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.

Code documents to this category which discuss HUMAN: studies of human diseases or conditions associated with exposure to cigarette smoke or other substances. Do not code studies of Human Smoking Behavior here, but to category EF. FEA

Documents discussing research involving Autopsy: human autopsy results, usually comparing 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

Documents discussing research involving Clinical: case reports or comparisons of clinical testing (e.g., pulmonary function testing, AAH levels), especially between smokers and nonsmokers.

FEC

Documents discussing research in EpidemioloQV: which the occurrence of specific diseases or conditions in a study population is related to known exposures to suspected causative agents (e.g., smoking, occupational exposures).

Documents concerning research RESEARCH FUNDING SOURCE: funded by an identifiable source not covered by categories below (e.g., the AMA). GA

Documentsconcerning,research funded by or GOVERNMENTs done by governmental agencies (either federal or state). Examples include NIH grants, NIDA'grants, TWG (the

"Tobacco Working Group"), NCI and USDA.

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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 consultants' laboratories. Key words to look for include direct

grants. GC

Documents concerning the funding by British BAT: American Tobacco of scientific and/or technical research either performed at BAT's research facility in Southampton or at the outside laboratories of BAT's outside consultants (e.g., Batelle).

GD

Documents concerning funding by BAT BAT AFFILIATES: affiliated companies, such as Imperial Tobacco, BAT Australia (AMATIL), or Souza Cruz (Brazil).

GE

Research funded by one or more TOBACCO INDUSTRY: Include documents concerning cigarette manufacturer. the Chemosol project here. Specific subcategories include: GEA CTR Special Projects: Documents referencing research funded through CTR; but not after the normal review by the Scientific Advisory Board.

GEB

Documents discussing research funded CTR Grants: by the Council for Tobacco Research after project approval 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 proposals developed by the various ad hoc research These committees include the Industry committees. Research Committee and the ACd Hoc Committee, and invariably have lawyers as members. Do not include 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 law firm. Most often applicable to identified potential litigation witnesses.

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H

TOBACCO INSTITUTE: Documents relating to the formation and activities of the Tobacco Institute (TI) not included in the subcategories below. BROWN & WILLIAMSON INVOLVEMENT: Documents discussing or evidencing B&W's role in the activities of TI. Include documents showing that Brown & Williamson employees

served on TI committees or attended TI meetings. HB

Documents discussing Or relating to TI's LOBBYING: efforts as a lobbying organization. Include materials discussing campaign contributions or drafting of Do not include lobbying by other segments of letters. Code those documents to category the tobacco industry. L.

HC

Documents discussing or PUBLIC RELATIONS/PUBLICATIONS: containing public statements made by TI in its role as spokesman for the tobacco industry. Pay special

attention to documents suggesting that TI was used as a vehicle for the industry's alleged conspiracy to promote cigarettes through the "open controversy" PR program; that industry-sponsored smoking and health research was used for PR; or that the industry monitored governmental expenditures on research to make certain the industry outspent the government on research. HD

POLLS AND SURVEYS: Documents discussing polls and surveys conducted by TI in order to create a foundation for its public relations program.; Includes PR proposals regularly made to the industry by;the Roper

Organization. HE

PUBLIC RELATIONS/HILL & KNOWLTON: Documents discussing the relationship between TI and the public relations firm, Hill & Knowlton. Pay special attention to documents suggesting that Hill & Knowlton supplied TI with proposals geared mainly toward perpetuating the smoking and health controversy, most of which were adopted by TI.

HF

ADVERTISING: Documents discussing or containing promotional advertisements issued by TI to present the industry's views on the smoking and health issue.

HG

LAWYER INVOLVEMENT: Documents indicating that lawyers were present at all TI meetings and that the relationship between the cigarette manufacturers, TI and counsel is inextricably intertwined.

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HH

CRITICISM OF TI: Documents indicating that certain members of the tobacco industry were dissatisfied with TI's performance as industry spokesman on the smoking and health•issue. Include documents concerning American's decision not to join TI, Lorillard's decision to withdraw from TI, and Brown & Williamson's discussions concerning a possibl`e withdrawal from TI.

HI

SURGEON GENERAL'S REPORT STRATE^Y. Documents indicating that the industry prepared for the release of the 1964 Surgeon General's report or that the industry's preparations were to undermine negative aspects of the include documents showing that TI staged media report. events simultaneously with the release of later Surgeon General's reports.

HJ

Documents suggesting that the tobacco TARGET 5: companies developed a plan to counter the American Cancer Society's "Target 5" program, acampaign to stop the use of tobacco.

HK

Documents discussing INTELLIGENCE GATHERINGc information gathered by TI regarding other anti-smoking or unfavorable activities for the purpose of developing strategies to counteract those activities.

HL

Documents suggesting that the INSURANCE INDUSTRY: tobacco companies were concerned'that the insurance industry, by offering lower rates to nonsmokers, was providing the message that smoking was harmful. TI contended that the rate reduction was a sales gimmick based on faulty actuarial tables. TI lobbied the insurance companies with fairly successful results.

Documents relating to the activities of the CTR/TIRC: Council for Tobacco Research (CTR) or'nits predecessor, the Tobacco Industry Research Committee (TIRC), not included in the subcategories below. IA

THE FORMATION OF TIRC: Documents discussing the activities of the tobacco companies in the formation of TIRC in 1954. Look for references to the advertisement, "A Frank Statement to Smokers."

IB

AS PUBLIC RELATIONS VEHICLE: Doc'uments suggesting that TIRC or CTR was formed by the tobacco companies as a public relations vehicle to keep,the smoking and health controversy alive. Also look for documents supporting or refuting the contention that CTR's public relations effort was equal to or sometimesgreater than its -33-

research effort. Include documents indicating that'the companies utilized Hill & Knowlton, Leonard Zahn and TI to influence the public and scientific communities' view i of CTR.

J

IC

BROWN & WILLIAMSON INVOLVEMENT: Documents discussing or evidencing Brown & Williamson's role in or perception of the activities of CTR or 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 that CTR funded was controlled by thetobacco companies.

IE

Documents indicating whether INDEPENDENCE FROM LAWYERS: the research that CTR funded was"controlled by the Include documents tobacco companies' attorneys. suggesting that lawyers stopped research efforts in sensitive areas (e.g., CNS research).

IF

INDEPENDENCE OF SCIENTIFIC ADVISORY BOARD (SAB): Documents suggesting that the SAB was controlled by the tobacco companies and the tobacco companies' attorneys; that the SAB was selected by the"`,companies; and that;its decisions on grants were based on input from company, Look for documents suggesting officials and attorneys. 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 CTR funded research related mainly to the etiological aspects of diseases associated with smoking, rather than research specifically directed toward determining whether cigarette smoking causes lung cancer, COPD, etc.

Documents discussing'the legal issue of SOCIAL UTILITY: whether a product's "risks" outweigh its "benefits." Include 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/TOBACCO INDUSTRY: "Usefulness" of smoking to the individual or of the tobacco industry to : society.

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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 of smoking to society (e.g., excess death, premature deaths).

JBA Social Costs: The economic losses to society allegedly caused by smoking(e•Q., higher health care costs for smokers, workday$ lost). Documents concerning the Surgeon WARNINGS/PROCEEDINGS: General's warning about the health consequences of smoking. Watch for references to the Surgeon General's warning, warning notice, warning label or health warning. Also included in this category are various`proceedings that may have a bearing on the case under consideration. KA

Documents discussing the adequacy of various ADEOUACY: warnings (e.g., static warning vs. rotating warnings, strength of the warning, etc.).

KB

DESIGN OF WARNING (SIZE, COLOR. PLACEMENT, ETC.): Includes studies to determine effectiveness of various formats for the warnings.

KC

Studies to EFFECT ON SMOKING BEHAVIOR/AWARENESS: determine the effects of warnings on smokers, behavior and smokers' awareness of smoking and health issues.

KD

Documents suggesting DILUTION OF WARNING/OVERPROMOTION: that Brown & Williamson or BAT used advertising and overpromotion to dilute the effect of the warning label on consumer awareness of risk.

KE

FTC WARNING NOTICE PROCEEDINGS: Several formal proceedings initiated by the FTC `regarding the health warning in cigarette advertising., First hearings were held in March 1964. A trade regulation rule requiring labeling on cigarette packages was to have become effective January 1, 1965, but Congress asked that it be A postponed to give Congress time to pass legislation. new trade regulation rule was proposed in May 1969 by the FTC to require a warning in all cigarette advertising, and hearings were held in July. Regulation 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 FTC to obtain advertising and marketing documents from cigarette manufacturers since 1964. The case becamea procedural question on the FTC's 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 manufacturers requiring appearance of the Surgeon General's health warning in all cigarette advertising. The announcement was made in April 1972. Key words were 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 On August 1, 1975, the FTC Consent Decree. notified the six cigarette companies that it had determined that they were in`violation and requested the Department of Justice to commence Suits were then filed in the U.S. actions. District Court against the manufacturers seeking civil penalties for the correction of asserted violations of the Consent Order. 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 of carbon monoxide in smoke, the risk to pregnancy, the risk of developing diseases and the benefit of quitting.

KG

MOSS PROCEEDINGS: topic.

Do not code documents to this general

KGA: Moss Proceedings (Senate 1971, 1972): Senator Frank Moss (Utah), Chairman of the Senate Commerce Subcommittee on Consumer Affairs, held hearings in February 1972 on his 1971 proposal to regulate tar and nicotine content of cigarettes. Witnesses

-36-

included Horace Kornegay, President of T.I.; 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 Committee 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 HEW held in the House Committee on Interstate & Foreign Commerce. Horace Kornegay of TI did make a statement.

KH

These hearings were held before 1964/1965 PROCEEDINGS: 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 Committee on Interstate & ForeignCommerce in April and May 1965. There were ten different bills before the House alone. There were many expert witnesses who gave statements on behalf of the industry. Among them were Dr. L.H. Garland, Dr. Israel Rappaport, Dr. Thomas Moran, Dr. Henry Russek, Dr. Milton Rosenblatt, Dr. Hiram Langston, and Dr. Ian McDonald.

The resulting legislation, The Federal Cigarette Labeling and Advertising Act, was;signed into law in July 1965. It required the following warning on Cigarette Smoking May Be Hazardous packages: "Caution: To Your Health." KI

Hearings were held before the House 1969 PROCEEDINGS: Interstate & Foreign Commerce Committee on several bills to amend the Federal Cigarette Labeling and Advertising Act in April and May 1969. A bill, Public Health Cigarette Smoking Act, was passed by the House and sent to 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 exemptedfrom antitrust violation. The new law was 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 law did not require a warning notice in advertising.)

L

KJ

SPECIAL REPORTS TO FTC: Reports compiled by Brown & Williamson and filed with the FTC`on advertising.

KK

FTC REPORTS: Annual reports that-the FTC is required to file with Congressreporting on smoking and health.

KL

T&N DISCLOSURE PROCEEDINGS f1970-'19711: This proceeding was 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 became operative 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 States or abroad.

LOBBYING: Documents that discuss tobacco industry lobbying other than lobbying by or through TI.' Do not include antiindustry lobbying. Include materials'discussing campaign contributions or drafting of letters. LA

BROWN & WILLIAMSON LOBBYING: Documents discussing lobbying efforts by Brown & Williamson on the national or state level.

LITIGATION ISSUES:

This general category should be used for

documents which relate to allegations of misconduct or legal

considerations, but which do not fallinto one of the subcategories. MA

CONFIRMATION OF CAUSATION: Docwnents suggesting that the results of research confirm or supplement the alleged 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 & Williamson's research confirm or supplement the alleged evidence that cigarette smoking causes disease. Include any documents suggesting that Brown & Williamson scientists believe it has been proven that cigarette smoking causes disease. MAB

MB

BAT's Confirmation of Causation: Documents suggesting that the resultsof BAT's research confirm or supplement the alleged evidence that cigarette smoking causes disease. Include any documents suggesting that BAT scientists believe it has been proven that cigarette smoking causes disease.

Documents suggesting FAILURE TO CONDUCT RESEARCH/TEST: that the tobacco industry did not conduct smoking and Include documents suggesting that any health research. 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 terminated. MBA Brown & Williamson's Failure to Conduct Research/ Documents suggesting that Brown & Williamson Test: did not conduct smoking and health research. Include documents suggesting`that any research conducted or supported by Brown & Williamson was conducted to obtain data to rebut smoking critics or for public relation purposes. Include documents suggesting that research leading to "unfavorable" results was terminated.

MBB

BAT's Failure to Conduct Research/Test: Documents suggesting that BAT did not conduct smoking and Include documents suggesting that health research. any research conducted or supported by BAT was conducted to obtain data to rebut smoking critics or for public relation purpo5es. Include documents suggesting that research leading to "unfavorable" results was terminated.

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MC

GENTLEMEN'S AGREEMENT: Documentsrelating to allegations that the companies agYeed to not conduct inhouse 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 & Williamson pressured outside'researchers into obtaining desired results or'that the company manipulated research data sothat a favorable conclusion could be drawn. MDB

ME

BAT's Manipulation of Researeh/Data: Documents relating to allegations that'BAT pressured outside researchers into obtaining desired results or that the company manipulated research data so that a favorable conclusion could be drawn.

FAILURE TO PUBLISH/SUPPRESSION OF`RESEARCH RESULTS: Documents suggesting that members of the tobacco industry published only research results thatsupported Include'documents suggesting the industry's position. that lawyers made the final decision about whether a study could be submitted for publication. MEA Brown & Williamson's Failure`to Publish/Supipression of Research Results: Documents suggesting that Brown & Williamson published'only research results that supported the company's position. Include documents suggesting that lawyers made the final decision about whether a study could be submitted This code includes research for publication. performed by outside researcliers funded by Brown & Williamson. MEB

BAT's Failure to Publish/Suppression of Research Documents suggesting that BAT published Results: only research results that supported the company's Include documents`suggesting that position. lawyers made the final decision about whether a study could be submitted forpublication. This code includes research performed by outside researchers funded by BAT.

-40-

MF

MEDIA SUPPRESSION: Documents relating to allegations that the tobacco companies prevent the publication of articles on smoking and health by threatening to

withhold advertising revenues. MFA Brown & Williamson's Media Suppression: Documents relating to allegations thatBrown & Williamson prevents the publication of articles on smoking and health by threatening to withhold advertising revenues. MG

FAILURE TO WARN: Documents suggesting that members of the tobacco industry were aware of health risks associated with smoking but did not warn smokers of those risks until warnings appeared on cigarette packages in 1966. MGA Brown & Williamson's Failure'to Warn: Documents suggesting that Brown & Williamson was aware of health risks associated withasmoking but did not warn smokers of those risks until warnings appeared

on cigarette packages in 1966. MH

Any documents giving express or ASSURANCES OF SAFETY: implied guarantees concerning health consequences of smoking (e.g., public statements by industry executives that cigarettes are "safe", marketing strategies designed to "reassure the smoker," etc.). Include documents relating to express or implied assurances of safety about smoking and health inmembers of the tobacco industry's advertisements„ MHA Brown & Williamson's Assurances of Safety: Any documents giving express or implied guarantees concerning health consequences of smoking (e.g., marketing strategies designed to "reassure the smoker," etc.). Include documents relating to express or implied assurances of safety about smoking and health in Brown & Williamson's advertisements.

MHB

BAT's Assurances of Safety: Any documents giving express or implied guarantees concerning health consequences of smoking (e.g., public statements by BAT executives that cigarettes are "safe", marketing strategies designed to "reassure the smoker," etc.). Include documents relating to express or implied assurances of safety about smoking and health in BAT's advertisements.

-41-

MI

CONCESSIONS: Any statement:s, admission, 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, admission, or disclosures by'Brown & Williamson having detrimental legal consequences (e.g., an internal company document stating that smoking causes lung cancer). MIB BAT's Concessions: Any statements, admission, or disclosures by BAT having detrimental legal consequences (e.g., an internal company document stating that smoking causes lung cancer).

MJ

DEFENSIVE DOCUMENTS: Any documents useful in defending against claims of addiction, lung'cancer, emphysema, dilution of warning, or any of the above litigation issues.

MK

INDUSTRY COMPETITION: conwith cerned

Should not be used for documents treacomcompetition, but

only for unfortunate c petition, e.v., a document that says, "We should do biological research to gain a competitive edge." ML

INDUSTRY COOPERATION: Documents °relating to cooperation between the cigarette companies. ' Should not be used'for documents that describe industry-wide support of research (e.g., CTR), but only for documents with comments that could be misunderstood as a "conspiracy." MLA 3i/LSI/LRD: Documents discussing activities of 3i, L.S., Inc., or Literature Retrieval Division and documents concerning Brown & Williamson's dealing with any of these organizations.

MLB Litigation Defense: Documents relating to cooperation between the cigarette companies and their legal counsel with regard to the smoking and health litigation. N

LAWYER INVOLVEMENT: NA

Do not code to this major heading.

LEGAL DISCUSSION OR RECOMMENDATION:

Documents

evidencing lawyer's advice, reconimendations, or a discussion of the legal issues concerning the smoking and health controversy.

-42-

NB

OTHER LEGAL REFSRENCE: Documents which were sent or copied to Brown & Williamson's lawyers or which reference a particular lawyer;in the Brown & Williamson law department.

NC

NO LEGAL REFERENCE: Documents which do not contain : lawyers' advice, recommendations,' or discussion of the smoking and health issue and which do not reference a particular lawyer in'the Brown & Williamson law department.

Documents discussing B"&W's activities in INTERNATIONAL: producing and marketing its or other companies' brands for an international market.

.01

-43-

Papers from the 1969 A .A .A.A. Region Converi'lik-.. . . s HOW AN AGENCY BUILDS A BRAND -- THE VIRGINIA SLIMS STORY by HAL WEINSTEIN

Vice 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 :rn .

A cigarette for women only was art 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 CONFERENCE Biltmore Hotel, New York, October 28-29

American Association, of Advernsing Agencies copyright 1970

The story I have the pleasure of telling you about is Virginia 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 Gir l She Is . " In the cigarette world, as you know, if you don't have a strong personality -- an identity -- you don't 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 establish 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 Miss Virginia Slims -

as well as the final outcome .

The storv starts in the fall o f lyb/ when American Tobacco Gompany, .

brought out Silva Thins -- and the~` question came to us from Philip Morris -- "What would you guys d o with a thin cigarette like Silv a Thins if Philip Morris were to mak e

one?" . Let me admit there was a lot of initial reservation about whether a thin cigarette had any merit a t all . Silva Thins was not doin g well in the marketplace . Our firs t thought was, maybe a thin cigarett e is simply a thin idea . Maybe it' s just giving the smoker less of wha t he wants -- less cigarette , less enjoyment . .~: . . all the really successful new cigarette ideas in th e built on giving the smoker a little bit more tha n

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tipping paper on cigarettes -- like the old Viceroy and Marlboro of the

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 -.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

more .

• So we laid hands on a pack of Silva Thins and tried them out . And we

_were impressed .

This thin cigarette, we discovered, had visual intrigue . It looks quite different -- fascinating -- in your hand and in your lips . 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 cigarette 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 -- equally important and advantageous . The thin cigarette felt different in the hand . And it felt not just thinner, 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 differences 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)

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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 .

For example : create a brand of slim 85mm cigarettes with a white .~~AM . Vk* i tip, a low-tar blend, and a highfi filter . Call it, for instance,

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("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 . (Slide #5)

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 .

(Slide #6)

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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 necessarily 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 a cigarette with a feminine personality . It not only has traditional tobacco overtones, but it romantically suggests moonlight, gentle breezes, and green hills . This combination seemed too good to be true, particularly when we realized the Philip Morris Marketing Director"s wife is named Virginia .

. 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 .

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(Slide #7)

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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 .

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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 instead of heavy? New Virginia Lights", it's signed at the bottom : "i:hy smoke heavy when you can smoke light?"

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Acase for sTnokung Light Msteael of Yheavy

This approach combined the feminine stance with~a possible low-tar cigarette , built aroun&the notion of smoking light . Another ad :

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"A case for smoking light instead of heavy ."

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The Light fantastic

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(Slide #10) Beyond that, we got cuter with "The Light Fantastic" -- after which came --

"The Light Brigade" and other clever things .

(Slide #11)

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We also developed TV commercials around this idea . Imagine the film photography for this new cigarette brand taking place in an all-white, alllight world at the Bonneville Salt Flats in Utah by the dawn's early light .

Here's a storyboard with agency roughtrack .

1 . (Mueic under throughout) . . .

4 . A new light to experience .

5 . Today there's a new light in smoking .

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13 . It's the new way to start a new day .

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12 . Blbnded to iv~ you a mild m ke~ at'~ a 3ttle rich r ; a

14 . New Virginia Lights .

15 . Why smoke heavy v .h .a you can smoke light? (Musical playoff)

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 .

Now, it may seem a small step from the feminine brand Virginia Lights > to a brand called Virginia Slims and advertised "For women only ." But that one small step covers an enormous distance . There came this magic moment after we'd been working just a short while when the account group suggested we should sell the slim ci arette ith ~" overtly feminine proposition, "The first cigarette for women only ." This selling idea which had been kicking around between agency and client for so many years without going anywhere now suddenly had at han&the perfect product difference needed to bring it to life -- the slicmner cigarette . In fact, it was the key . With that, our creative horizbns suddenly opened up .

All of a sudden we Y :ad a~ product story that hung comfortably and naturally on the product . This thin cigarette which we had instinctively 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 flavor women 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 as attractive as possible -- with the right kind of advertising . This is a list of the approaches or personalities we worked at for this new women's cigarette .- The cosmetic approach, the straightforward or direct approach, a challenging, feministic approach, the romantic personality, and -- finally - fun . And they came just about in that order .

The cosmetic approach? Forget it . You don't create a mass cigarette brand for women by naming it Tiffany, Vanity, Caprice, Riviera, or Flair, putting it in a gold lame pack and advertising,it in Vogue and Harper's Bazaar . That would turn off most women by creating a cosmetic instead of a cigarette brand, a fashion accessory, a novelty cigarette so feminine that few women would smoke it .

(Slide 4114) When it comes to cigarettes, it turns out that we're all a little bisexual as your neighborhood psychiatrist will tell you . For psychological reasons, 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 is

with gender . Lots of women smoke the he-man cigarette Marlboro, and lots of

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men smoke Salems . So don't get too feminine with your feminine cigarette . So we tried~it straight, a direct, newsy approach .

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(Slide #15) We wrote, "The Queen-size Cigarette, the New Shape of Smoking," and other cliches . In this ad we're calling the cigarette Richmond!Slims -another name we liked a lot .

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0002430037 (Slide •".•16) Here's another . The headline reads, "We Made a Cigarette for You," Straight news . "The Queen- ''-.size Cigarette with King-size ~?

Flavor ." (that's really terrible .)

Ia ucing QueenSize • Ciqarette

(Slide #17) "Wear a Good-looking Cigarette Tonight ." This is a slightly cosmetic angle but done with a nicely direct tone-of-voice .

Or . . ."Introducing the Queen-size Cigarette ."- For about 24 hours some 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 .

Wear a good lookia cigarette , : tonight

Afteryovire &aa lookulg a.t xt y+ou c=stnoke it .

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(Slide #19)

~002430038 Again, "After you're done looking aL it, you can smoke it!" This obvious . calling attention to the shape of t .a cigarette may be a mistake . What's obvious will sell itself . Like the convenience in convenience foods . Let's keep looking for that personality .

Here's a new note . "Do you~want to put 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 femininity?

You can get quite a reaction by telling a man you think his shirt or tie is a little too feminine, or by telling a woman her clothes are a bit mannish . So what if you sai&that the usual fat cigarettes are masculine and to be really feminine, ladies, you~need a slim cigarette? You may 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 aggressive 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 . Salem went to glory with women smokers on the pastoral . Romantic appeal or springtime, green fields, and soft summer dresses plus the inevitable and indispensable product difference they were dramatizing namely, the first light menthol cigarette . So maybe here was'an avenue for Virginia Slims .

(Slide #21) One of our first tries on these lines took as a departure point the basic man-and-a-woman, boy-girl situation -- with Virginia Slims the important

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1 . (Girl V'O)' 94 brands of cigarettes in this man's world of smoking, and all' of them for him .

. 2 . Now there's one brand for us . New Virginia Slims-- . , ,

3 . . . . the one that ought to wear your lipstick.

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4 . The slimmer cigarette . . .

5 . ,, to match, a woman's slimmer mouth .

7 . Made a new, lighter weight,

8 . . . .because we are .

9 . Virginia Slims,,,,

10 . . .r flavor so ri'ch and yet so light, . . .

11 . . . . well, it might never phase that heavy smoker taste of his .

12 . But then he does have his other 94 brands . We've got our one .

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13 . Long, lean, light and' lovely,

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15 . . . . so much a vloman's cigarette . Well, he'd soonar borrow your hair coloring .

-'0002430040

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story element . Imagine it in this next storyboard-On-film taking place in Grand Central Station where there are just the two of them isolated in that

big empty place .

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-1 . (Music under throughout) 2 . (Girl VO)iSometdmes, the . . 3 . We do have our ditferthing between a man and a encea . woman isn't all the sharing .

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4 . And he's got his own way of reminding me of it all the time . d''~

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 .

13 . So, I do the next beet thing . . I blow a little his way .

14 . (Man VO) Long, lean, light and lovely .

New Virginia Queens . Regular or Menthol . In the

newpurse-pack .

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It might be a very pleasant commercial to watch, but the idea was too soft -- 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 romantic song? Music is such an important-- .,element imrigarette advertising -- where 90% of what you communicate is non-verbal anyway . Maybe the .right song or the right sound could give this romantic mood a more memorable identity . One of our creative group members came up with a song -- a romantic flavor song . We put it together with dreamy pictures of a woman and her dog, .strolling along the shore -- meeting a man -- plus copy about the cigarette and its reason for being . Here's how it might have come out, again in a rough storyboard-on-film . (See storyboar&on page 14) . We really liked this execution . Some of us felt that if we had to, we could 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 lovely feminine personality,with long life potential . But we still questioned the memorability of this romantic mood . Maybe 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, sparkly, happy cigarette?

Women are the great fun lovers, as everybody knows . Men watch ballgames on TV an&play poker and that's what they know about fun . Women are the ones who watch the comedy shows and'dig all the funny stuff -- right?

.

(Slide #2'2)

:12_ Probablv the mildest cigarette you've ever set your lips to .

13 . New Virginia Slims .

14 . SONG : The easy flavor of a cigarette for you .

15, (Anncr VO) Try them . New Virginia Slims .

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So here's a layout . The caption reads, "Now there's a new thin cigarette especially for- .women because women are dainty and beautiful and sweet and generally different from men ." And'the'picture (you camtell the art director was a man, of course) carries a frou-frou fashion touch, taken lightly -- and~that touch is just enough . It seemed to some of us that there was magic in this ad . Something about the tone-of-voice felt right . It's a male cigarette company saying, in effect, "Woman, we put you on a pedestal . We think you're terrific, you're fabulous, yow're great . We love you, and we want you to have this cigarette we made for you ." The message is out-and'-out flattery, done lightly enough to~be acceptable . Is there a woman alive who doesn't like flattery? Here's another ad in the same school . The caption under that shot of the well-decorated feminine eye : "Our new thin cigarette is made for females who are basically not as plain as males ." In the world of understatement, that deserves a prize .

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You won't be surprised to learn that these last two ads had great appeal to men . And even though we all know that women are the trend-setters and innovators in this world -- especially with cigarettes -- it was nevertheless very important to us that this advertising to be directed at women should'have very strong appeal to men . Yes, Virginia, men do influence women in these new-product decisions . Woman needs man to like new hat ; woman needs man to like new cigarette . The woman~is first to try out the new idea, but if the man in her life doesn't like it, she won't stay with it . It was at 11 AM on the day before our creative review committee meeting -at the eleventh hour, you might say -- that lightening finally struck .

(Slide #23')

One great brain came up with the concept of women's rights, and a strong line that expressed it : "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 .

It used to be, fad , you had no rig htsy

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But now youve got a new thin cigar¢tte all yourown.

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(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 . No right to the wage you earned . That was back when you were laced in, hemmed in, and left to while away your time among the whatnots . 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 come a long way . Now you can smoke downstairs, or even out of the house if you~please . And now . . .you have a cigarette all your own . You~have a right to your own cigarette ."

0002430045 /

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 grandfather's farmhouse . Number 2 . Mary Jane 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 ."

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(Slide #27)

IN 1'920 YDU 60TTNEME AND s0t OUT OF THE K1TCHEN .BUT

NOr UMTIL How COUID lroU fEE COMFDRTABIf W1TH A CIGpRETTE IN YOUR HAND. .0

(S 1 id'e #28 ) "Just think . Once you had to fight for the right to wear bobbed hair . Now you've even got a nice thin cigarette all your own ." Signed Queens ." (Slide #29) "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 ."

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The caption under the photo reads : "When the after-dinner cigars were passed 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 ."

Its differentnow Now you just sit there and smoke your thin cigarette.

(Slide #30) Before getting to the TV commercials let's jump ahead to see how these ads came out in finish .

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 blackand-white newspaper .

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(Slide #31)

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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 cigarette 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 #32)

(Slide #34)

.

(Slide #33) Here's the bobbed-hair ad . The today gal is stronger in it than she was in the layout .

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 .

And finally, here's the "Dining Room" ad in finished!form . . .

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(Slide #35) Radio and Television translations of the idea came easily . What we said earlier about the importance of music in cigarette advertising seemed especially right for this concept . That concept line, "You've come a long way, Baby," has to be among the world's most natural song,id'eas . We took it, deliberately into a corny, happy suffragette kind of sound like an updated Salvation Army band . And the message of the song, like the message in the basic concept, is "Congratulations on being a woman . Congratulations on your success . Congratulations on getting where you got to ." The original TV commercials were shot by Dick Miller Studio in New York with tender loving care, with passion and devotion .- We think these commercials -- maybe even more than the ad's -- bring to life this unique and appealing personality we had set off in search of : Miss Virginia Slims . (See storyboards on facing page and page 22) y So how did it all come out? As you can see, this idea went from scratch~ all the way to market with very little change . We had started onthe assignment in late December . Within four weeks the campaign was written and had been received with enthusiasm by the client . And let me say in~passing that I wish every agency man the pleasure of working with an advertiser as discerning and open-minded and appreciative and gutsy as the Philip Morris Company . By the end of July the product was in test-market in San Francisco with Walter Landor's gorgeously elegant package -- and advertising was starting . .ing The test market was instantly and completely successful . Just seven weeks after introduction the brand was rolling out nationally . You might ask, "Where do we go from here?"

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0002430049

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1 . (Music under, Anncr VO) It used to be, lady, . . . ~

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9. (Girl VO) Introducing new Virginia Sli ns . The slim

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10 . ., for women only . Tailored for the feminine hand .

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11 . Slimmer than the fat eigarettea men smoke with the kind of flavor women like .

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13 . New extra-long Virginia Slims . In the slim pursepack .

14 . SONG : You've got your own cigarette now, baby .

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15 . You've come a long, long way .

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2. (Anncr VO) In 19i0i Mrs . Pamela Benjamin was caught smoking in the gazebo .

3 . She got a severe scolding and no supper that night .

5 . Altbough she was 34, her husband sent her straight to . her room .

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B . (Girl VO) Introducing new Virginia Slims-- . . .

t-. P'. s : t ;','10 . Slimmer thanthe fat cigarettes men smoke .

9 . . . . the thin cigarette fo r women only . Tailored for the feminine hand .

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11 . With flavor women like . Rich, mild, Virginia flavor . -. '% I •1/!'+ --

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14 . SONG : You've come a lcng way, baby, to get where yoi. got to today .

15 . You've got your own cigarette now, baby . You've come a long, long way .

0002430051 -22-

So here's another three minutes of film from our new pool of commerciaLs .

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, 1 . (Music under, Anncr VO) For years, women tried to win ~ all the rights men had, . . .

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Z . . .g including the right to 3 . In 1908, Cathleen Campsmoke in public . And for .' bell thought the time was

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7 . Then~ in 1920, women won their, right's .

9 . SONG : Yougve come a long way, baby, ta get where you , got to today . .:'

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.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 .

11 . With rich Virginia flavor you'II like .

12 . Tailored for the feminine hand . Slimmer than the fat cigarettes men smoke .

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14 . SONG : You've got Virginia 15 . (MuaicaLplayoff) Slims now, baby . You~ve come a long, long way . lV

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8 . You've got your own ciga- 9 . You've come a long, long rette now, baby, way .

13 . . . . with rich Virginia flavor you'll like . New Virginia Slims . In the striped puree-pack .

14 . SONG : You've got your own cigarette now,babg . .

15 . You've come a long, long way . (Musical playofn

0002430053 - 24 -

. .

. ~

i

d tFr''

.2 . . . .from days when man was king .

;

3 . You couldn't vote, you couldn't smoke, you couldn't do a thing.

. 4 . Then you started fighting . And things started going your way . ~

i•.

n

+.. `~... . : z;

0

A' 10 . . . .0 . get where you got to today . #

` _i.IAMPN

VikC-, i ,\II.. A i,rb

11 . (Music undtr, Girl VO) This is the slim cigarette made just for women . Virginia Slims .

12 . With rich Virginia flavor you'll like .

~

rg t j , I rns.

F

t I

r

13 . Slimmer than the fatcigarettes men smoke . Virginia

Slims .

i'

`

14 . SONG : 1ou've got your own cigarette now, baby .

n

d

15 . You've come a long, long way .

P002430054

And that, Ladies and Gentlemen, is how we got where we got to today . Thank yutt .

- 25 -

® 19

ASSEMBLY INSTRUCTIONS FOR VIRGINIA SLIMS 18-PACK COUNTER DISPLAY FIGURE A' - BASE BEND FLAP #1 AT RIGHT ANGLES . BEND ENTIRE BACK PANEL AT RIGHT ANGLE TO A VERTICAL POSITION . TURN IN FLAPS #2 OVER'FLAPS #1 AND LOCK INTO SLOTS AT BASE OF DISPLAY . BEND FLAPS 2A IN AND FOLD FLAP #3 OVER THEM AND LOCK INTO SLOTS AT BOTTOM OF DISPLAY . FIGURE B - DISPLAY STEP . FOLD SCORES AS PER DIAGRAM AND LOCK TABS 4 UP INTO SLOTS 5 . (FIGURE C MUST BE INSERTED INTO FIGURE B BEFORE ENTIRE UNIT IS PLACED INTO BASE .) FIGURE C - SEPARATOR BEND BOTH VERTICAL SCORES AT RIGHT ANGLES . INSERT TAB 9 AT BOTTOM OF THIS UNIT INTO SLOT AT BOTTOM OF DISPLAY STEP . TABS #6 TO BE LOCKED INTO SLOTS #5 OUTSIDE TABS OF STEP PLATFORM . AS THIS UNIT IS BEING INSERTED INTO BASE, INSERT TABS 7 INTO SLOTS 8 AT BACK OF DISPLAY .

FIGURE D - RISER CARD . INSERT RISER CARD IN AREA BEHIND SLANTED CENTER PORTION /

. OF DISPLAY .

ALL NATI ONAL AND REGIiONAL FI RST MAJOR DISPLAYS

CHANGE TRAYS OR'~

18-PACK MERCHANDISER

10-PACK SPACE SAVER DISPLAY

VIRGINIA SLIMS FILTER .

VIRGINIA SLIMS MEN!THOL FILTER A separate diisplay has beenideveliope&for each packing of Virginia Slirms . Where possiblie, these displays are to be used in lieu of the 18-pack merchand'iser fior checkout displays (Plan B, Option 2) . Iin addition, they are to be used in independent retail outlets to display bothipackings .

ALL NATIONAL AND REGIONAL FIRST MAJOR DISPLAYS

CHANGE TRAYS OR

18-PACK MERCHANDISER

10-PACK SPACE SAVER DISPLA Y

VIRGINIA SLIMS FILTE R

.tN1pNW9NK' • (~1.I~Y~4"M~w~ MtJ1yi.~

1, ; ' - ..

1) 1

'

VIRGINIA SLIMS MENTHOL FILTE R A separate diisplay has beenideveloped~for each packing of Virginia Slims . Where possible, these displays are to be used in lieu of the 18-pack merchandiiser for checkout displays (Plan B, Option 2) . In addition, they are to be used'in independent retail outlets to dispilay both packings .

MEMORANDUM

Dick Smith FROi1 :

l

Talerie Fried an ~ -"

j

.

The Female Smo'-':er Market

At your request, I have sur~arized existing, inforz_atioz oLt

and sm-oking . On.ce this information has Ceen absorb2d,

w e can concentrate on investigating approac`~es ~~li~at Lori' l]'ard might pursue to successfully enter the -women'' s cigarette market . 'UF : ae

At tachment

c c :•

T . H ..

The attached docu:-nent ' demons trates r== L, .;o=ie-l ; are spenc? ng

a growing share of the cigarett= .d ;j'-- .`lf current t,-ezds v con'ti'nuey women' may cor.e to dc_i-__e c~c__ette sales . Th e' rlo st,

loyal feiCl'ale smokers a'=C' i.=~ ~:..ork:i n o ~u0 M °it,, an . wo m w ill soon ourriL-wb er full t=~_ _= e `'- ;ers .

aild' t

h =Se'

cigarette p'o'sitl..oned : f or' the , i+: aP_ . to' re l a x and ' . ~ steady her nerves when the tensie:~ is =a :~_ting by serv ;~~~g as a Socially acceptable tran,_i__ze', deserves investioatioz . Unlike Eve' her cigarette will no_ s,.7=oo ize . Da'ssive faminizz'ty ; tnlike Virginia Slim's, her c',ga__=_e :;il E' not be an o ert deu:and for e4ualitya She is liberatee L-L he_ li fe :style and her cigaretta • is part of thai ]!ifestyle, A

N2xt Steps We are worki'ng, with MEM in desi :gning a, technique to enable us to : define the wo-er~'s smck :ng ^ar'.-czt ia tJrms o` smo?~ing, habits and lif .estyles,, cis. ocvE_ crea-Liv.z a.pp_oacIlies with appeal to the smoker grou .Is « Perhaps groups of wozmeh taith`rat'ne_r s1'ilar lifestyles could c_scuss their attitudes toward cu_rent c?bare .._e Gc,7er tising,, and the part that s^'_-ir-3 p"a ;,.s in their day to ehzsta.nce .

_- tion,, e_ .p?ar atory creat- re -p . =~acha,s co-~~? d' b : d_~c~ss _~ _ :_ovide directn on for cre~t_Y~ .e, ac-o~t, and p_c T 3c~s

i nc?"'e a 'sii._

---_

:xTJrJ?'"

~- a,C,ce

-a=1o:at is euide~. ..c3 by of i: :: l cs 2.'n d fe•"'3' I es' T' ;'-_0

c eZ - ? :--- ?

T~ln t==ie', T~o'u'~'_r" t'fTc~".. pe.'.;cel2~tCoe ~.'' .(1_~~

..._'~.

to ~. exceed ..

e '. s sn,

-_: R _C

o= _. _

__ ?«Q1C?"S c'' Lv3L`i Ci2'S pO'i ~~

.^._ ~•~__ Tti _o ' c'~r r,e'L= ~ 7 s=Cc :e i~

i . p er~ c ~e~*'~' a

t.l ~~

of

: h :' def`i: aa 1935 ;-_o' oni v T'7' percc-ntag ;e poiz__ - :,n- -% ~ .,

.

~

sl ,_ ._

of S

CIO

fa

l .eZ .

57 ~Z, . 51

43

rJ

cs s ;1a:71n~, tb__ p`r-

-

~~

.-•-

Ie

j

k :- S •-,

; t

~'v

a

J',

l

33

3?

Source ; RwT"' Vital Rep :ort .

Y

`

~ :z 3r-

y~

--

. a. ._

2 . G&~ shows on?~ j,~ a sl-i -ht margin by whic'-ri the percentaoec of male smokers e

:-,cee`s fem-ale smokers in 1970-1 .M, and

the 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

11

B'ecau e of the lo~,7 dai ly ~rol'~u~-ne of cioarettes s^oked' bY u,o m;en' co -mpa r e r-I •ri t 'L7, r_ e n (1 7` ./~ Us o 22 . 7 ) ,-'31e co_?,S'.L.mptlon e-Y cee d s fema l e consL_Dticn in' the market ovzLall, aarticularly the LoFi ca~teoo_,~ . ~ e-a'1e consul-~p L ;' on~ is about the same as v. ale eons ::~pti on i n t1h_ e i`enthol a .td i?IF i cateoori :es . S-'_'J

k E'_rS /V o l '`T,m e

C `

x

Ma le F e_--a le' 52 %

4 $/

5S' 55 5G

L. 9

.

41

48

45.

.,

40 . -5 9

52 '

~ 51

43 49

j ~

Source : C- ~ 1970-1 :71 Studies 1 . ~'OV?ei2 ~~ --=- s,

are also

?:1o'''e

l Z'_~~e1 y t'i'lc'?.n,

c_ `` - 'e

fien

, to

s m i;':,e

! Ci7

rs 'b Y MaI e

"

~

v

~^+ J~._ S.

~3

J

~ 3~~~~~i

= :i^r'1liCe,S

47 52 .

CZj

,

4 . The. growing inpor tanc e of the f em3le smoker i,s due to several factors, includi no fewer f .e~^ales quitting, more females beginning to smoke, and' female smo .:ers increasino

their daily cigarette volume .

According to a recent H .cW'-survey,, only 131of adult women

.` have Qiven up smoking , compared Kth M% of adi?l tmales . Even assuming So m et-,~rZ ..t exaggerated f i oL?res, i i: is obvious that men 2re' more ' likely to dis'co nt 1nue ci g are tt e n ok inb . + A:?d d

t h o u o'R ' o'i?

e million ad~~~~ l ts' a 'r ere C1LIZi=.t1'nQ .t1'n Q Sr'!o slg ng a'TL"L''::311y, . ag ers . a re e' l teen beginning t o s m o k .n increasing Ylualbers , with girls accounting , f or 2 g ro wina proportion of teeZ),a g e smokers . ?n the last four years, smoking among the 12 to 18' year aoe ., oroup increased from 14'a7'% to 15,7% among boys a-ri*,d from 8 .4% to 13 .3°/, among, oirls . The narrowing oap between the sexes in the early years is significant because it praceeds- =ewer smo?tiino differences between the sexes in adult years a~ Also, women are catching , up with nen' in the daily volume , s2iiotied'o Though wo L1e_'1' continue to s1'P_Cti e =e~iE'r c i gare't tE"S - per day than do men (17'04 vs, 21, 7) ,, M reports tha t tb.z pereentaoe of women smoking a pack or mbre a day has doubled bet:•,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:o1i=:~ ,

is the greater concern woman have L'~~ a'L i f, they S to7 s mcze t will gain we 1 . g h t , This f ea _" L._: d o ibte d1 .V ~ p' : ;eVt l'f s .__ 'w;,Ten lrom.desirin; to stop s:-:oki__g

~r'..y` s

-_ _'-._ e :

i2

a _? S'Li:rc•

TcL-' 1 ` FeL ale . Smo' --s "~_o=-eYs Sko?;.ers

. 5 . k :__, . . -- t!1, .._l~~'~ - .,_ .>

e '.1 . ='.'

.. .Ci :2t~"CZ'~ ~'-,1-{

2'a5 2 .67

T ; , ga-,e up s .oking„ i'd 2,83 ' worry about gai ni'no wzig`:t ?` smoke h .e_1 ir-i hungry but 2 .91 don' : - . -_nt to : eat

S,o~_,r__ . I-V?J' ;r757'5 'S : 6' r °_

3

3000

G~.3'

.

_7. ..57 3' ~J6 0

2 .67 3 .13

co . :71 e ~. . el y~, L'a n ~" ~'' e f rorG1'5 ( ?~o`~'eis co''' " pl Fr e ? y' ) , i` oo~ . Cd3 ..~'i= j ._ e a~

2 . In addition, the first studies relating smoking, and health used"'male subj ects, Because women were not sho :,-n evidence that smo :king, ~•ras equally deleterious to their o~ :-nn health, there was less reason for thieai to quito Hotjever, recent studies havz show-n that as 'woo-2n"s smo'_:i:ng habits become more 'li:ke men`'s,, Women smolrZers b2come more pror_z

to tIL-le same illnesses as male s :nok`rs .

As a resuLt,, many women now share w-ith men bath their concern about the effect of' smo'1-ing, on health and' their desire , to, quit smoking,

i-ieYn Score* Total ~IaZe FemaZe,,. Smo'~cer s _ S-~okers Smokers

Smoriing,is bad for my health 3' .9i8' Sr.lo .king shortens a person's 3' .5s' life expectancy I really ought to . cia do,in or quit smoking

. . 4p0o 4 .03

4 .03'

- I would like to quit smoking 3 .67 3 .67 '-3 . 67 entirely Source : rIP.D §757a1 . :;Scores ranoe from 5(agree complztely) to 1 (disagrez co:~p?2Lely). 3 . H o: -:ev er,, the proble mn appears to , be that jaoaaen,, andd partic ul a- ly

w om e n y, have l ess' success iCI C1Zi tt 1?'Ia and S'ta y 7 L`g, Of t tiiTn'i le the' pe r cenLage of full tiW a ho -an t°.T.c':C c r.a' who s m•:~ '-k a L= -_clined from 32% in 19'66 to 27 o i n 11970,, HEU reports _= = 'eP_'tag° df -Workln~;r women jIh!o s~--. .o.~:e h a s' remained Colns' t a=l t

;.

g

! -= s - =li es t ha i- as t .CT^c DE'rceR~~'j? C3Q' leL2 CC~1=1n``~ to i^c_zase ( fro~.-t 25% i'r 1°40 to 4 37„ in 1 971) 1 , the percenta3,e of N;.cman -w-ho s ---. wke can also be e xD actzu to increase . ha -1a S .:? ;~

r

been

C .o ti ;i

no

p r rJ7 - ' -- e d'

a~,`

to e'1tiU'l ai n th!? s_-ok~~n - , as fo11o'`rTs~, .

Fo:- .__-y pec pl e,, ,a1e and fe :_al ea, s tez5ion .

s re

l a .`_1o':'`-

serves as a r.;eans of .0 C~3 .~ . C!t` t,l1 . O ~' :~

Mean Score* Tatal Sm.cker s

Male S7L o'ce_ s

Female Smo'eers

I smoke when I"m under przs sure

4 .17,

4 .05

4 .28

When I'm upset or ang-ry I reach for something to smc,ze

4 .09

3 .93

4024

A smoke often helps steady my nerves

3068

3' .55

3 .79

STo'-:ing helps n.e take my mi nd off cares and worries

2, 8!I

2'0 77 _

2 .85,

Source : MRD V:7575 ^=Sco'res range froM 5 (agrez completely)

to Il (d'isagree comp'Zete'ly)

'FDv data suggests that women who smoke,

and parti cuZarly w ork ing women who smokzy are more prone than men smokers to use c'igaLettes as a means of reducing tension . This may be beca ::s,

,vorki :ng women as a group are subject to more pressures than

their non-working counterparts and use cigaret~tes as aiaay of decreasing these urpleasant feeling,s . 4 . Another hypothesis is that aworkino -~~~o~^.an' is more li'Kely to~ be concerned with ?:e°r frzedom and her choice of' lifes tylzo . Since srE ;o?.:ing is sy-mbolic of this new freedorr, it becc_ :~es incorporated into her lifes +-yle and' she Tn!ay not be 'ti•azllirg to g_ve it up (Dr . boui s Bozzetti ; Smoicers Research) . . -=enn t Fe-^a ie Orin~` ~dverti sinc,, , :_~ ;c? r °' .~te ~~~v°r =i'SiTia 1S d1L :eG't'eCi, exc1 uS'1ZTe ~'iy t0' P .erZ' ~2 a ` ,

----

Co

C

.-, i l

-P,

y ^~^_~

J

L:--

selected ?'?edli 3 ( e .go Ko-- 2 Fi l te r o~ ly t:JO c2c,a re : i:.'e br,a'D-' .'.'.s have b e? n ' CtCe'v°..loped., e'x c1L1'3iv (, V ir -j~~n13 Slz?=a,, Ev e') o

?G'~rer ts?=' -

a- '=C'

1. L~

Camels, '11- :=?Y-.looro) or to' both sexes e~ua",ly (e .go ri'~L =, -nsC on)', While a bra,nd: _~y occasiozall~r urili ze fz~a? e

L

G

x

L

?Tn

c- ly

-r

_ L (., J

ce' e ool" ' Lo cC7ver

ti a

K oo l Fl'.lte~r s ':)-o ir2?, vis ,.:.a1 is eith2r co n t: eu .^Ora';y . . ; .~3?? aga i tls't' a p :1's t o'-"aly n a kt ',1 r a 1 gr e e n b-^cjLJ?"o~. .t~?•t', o= a pa n k on a The ads have a cZea'n y fon'.-

tGn7 o=a=.j~ a' . _ _a . .a :?c'?

se'

CO~=.t ~',.-~.5 .t".s ' 44'1t:.h t}l + bore ti.a '~4 t 1 C'^.

campaign for Kool Kinoo Copy emphasizes both that extra length means extra, coolness and that the appearahce is stylishly long,and eleoanta The choice of women's maaazines and the contemporary middleof-the-road, approach suggests that the target audience is primarily the young housewife and the non-professional workinQ woman,

.

Because adverti sir~a ior Kool Longs is not directed exclusively at women, the oro-:,i~ng, brand share (currently a't 1,57,) cannot . :

ba attributed exclusively to women smo'c-ers . 2' . Eve 100"MM•Filter &iienthol

Copy lines include "The Lady has Taste"' an-d"rareweli to : the =, . Ugly Cigarette - Smoke Pretty . Eve ."' The visuals sho~ .~a cigarette packs frequently held' in a brightly nail-poli5hed b~nd against a ba&:ground~ of floT,,re_rs/plants or in tradi ttonal feminina hobby situations . The cigalrette pack has a' bright abstract _loral design surroLrnding an abstract of a very feminine woman's head . The cigarettes

.themselv'es have a floral design around the tilp .

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'tte h a pretty tip,, a pretty pack, and a rich but g~ztle flavor,•'

;vers rationale is that smoking historically has been a rale ===-coative,and ~~~.asculine cioarettes look ugly ~ ;h~a n use :: 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

----= -- . .=

d it i o_^a l

=_~ a S, is ` c'S' a

1'?j

feminine a'ppro a c la , awe r t?se -' 1L1 Wo_ e a~ C'_reo' t e'd to the' w orGTI i-7:'lose ! i L °' rcv o 1v a s a!r"o uC? d +G"a'n, tJei r.o pret t y, so'f _ , c. U ~e~lni ?e a'nd o?~iu1a2?'d very'

Z :C`o~l acceptably fe .~~..le hoo'''es,

L~'en the _u`o:~o't1o~.~ o~Leied~, _eied, a ho?'•oScopZ e .i_~~iir^?eJ Lvomzil'l s _

0 ~ S s~

S

T_ s

C

.

C~

Deu`}n'

. control

C :T?r

her

_

_

(' :.,n?, iL:Li?:e ,

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 Cei G^_

=,or

(.^'2 maZn',t^ol v'ersio ..'P .,

S

3 . Virg in1a.

Si i

ms

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, the riationa~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'2te .'_•str'2t . e the point that' women L?o'w have a' new lifestyle : :i`h better opportunity to exoress their potential an d their pz, s c ._?!a l ity an d s ar ol:ing is one iea n s' of self ehpresS,ion . ' In one ca!~pai~ this new €reedom is contra~stzd' with~ith~ pictures of v-oaen circa 1900 who :•-.-`Yz compromised r,~ ;hcn c`uoRt smoking . In a ~ related campaign„ the flavor (rich Virginia =lavor) and the physical -' qualities '"(Iong, sliri)~ .aYe emphasized. In addition to the woman's magazines, Virginia Sli'as also aduertises ~ :,' in Playboy, Ebony and the Sunday supplements .- This selection of magazines is unique for a-~;oman''s cigarette, showing a desire to reach working women and wouzien whose i ;nter ests extend beyond the

home .

Since the brand's s introduction in 1908, Cz'e share has g-ro .,-n to 1,27 ,, 0!.7'7, in the filter verszonand 0 .5% in the menthol version . ' .' ,-e • Uirgixt~,a Sl, ms St~ " 1972 1971 1970 1969 ~ 1968

0 .7% 0 .5

Filter

Menthol Total

0' . 6% 0 .4 1 .0

1 .2'

0 . 6 ;, 0. 4 1 .0

0 . 3% 0' .1% . 0 .3 0 .1 0 .8 0' .2

=__c Gppeal of t"? rgir~-a Slins was exxpect.eC' to p_ra??el _~-~=-~g` _tst_ ~, , c_ t:~e STOmen r s mo~rz~..en+~, ~,;.c~i''.ch is n_ore in=1+~e_ .tia1~~ in tne 1aTMO a r

. T o tie%e=~1Tle ~,;ii e tha= t his 1"eZa~_J,i ; s e_ o y~ -- ---• ._S t5'a =n indl_viidL'~d ldL'~dl ITIa"kei :s waS-lndeyed a-ainS= t'le n!ai.io'~Ta 1io'~Ta1 s'•_•Ta=e . -- ---~_ of 120 an d over were' coilslde'L'e d h,? :g H ai: c-T indices of under : ..

. _ ._ -~ C.o

n J~ .1..

l o. :'T . .

~

~~

.

~

`LiZ',at t~•1^ ic1~=?~ri.G.et sizes

. .

:3

.

..

~

~

~

.e_ally h'_ a , Qbe" "" .'~ ;g; n

a:'-°_re ` .r~ ag_ 13 S!1L1S ~cd'' 'oett~?'b sha_eS1_nd_cLs' a-?d ra'rk-~,t siZ_j

T'ni s

j"' 'e l ! y

! o : , i a-

_ . _ .- _- .,__ 5 .__7

i

L^a -:- TCCeLs'

s, s tr o=}. -~- ' r . G` Z °

S 3

where

t^aP n

th e

th' e re

s=? .ar'eS / li,:dlces

i .:_ t- o n s'Yi ?' b e i.G,TeeT1.

=i'1''= ., i=-

v.- --- =>= S' _re T.o ~tso~al S'~a .re Size (-: c= t- S . PaD }

(Av a=a,-, e7 - 79' (Lou;)

w ere

i,79 i . ? 3. 0 .89

lo •ie? r

P_rts. l ~ip

. .

Accession No . 81-081 Copy No . Issue&To

. TYPE REPORT : OANNUAL OSEMIANNUAL O COMPLETION QSPECIAL

DATE: March 31, 1981 PERIOD COVERED : REPORT TITLE :

C , .f

Young Smokers Prevalence, Trends, Implications, and Related'Demographic Trends

I

~ My E . J on

WRITTEN BY

I

,

APPROVED

DISTRIBUTION :

Harry G .

Mr . Mr . Dr . Mr .

Daniel

R . Thomson H. Daniel C . Levy L . Meyer

BY

Carolyn

`

J . Levy

ev,

Mr . J . Zoler (NYO) Mr . T . Goodale (NYO)

; KEYWORDS : Smoking Prevalence, Youth, Young Smokers Demographic Trends

i v fi a~

_4

PHILIP MORRIS U . S . A . INTER-OFFICE CORRESPONDENCE

r

F F F F I

I I L

RICHMOND, VIRGINfA

To : From : Su b j'ect :

Date : March 31, 1981

Dr . Robert B . Seligman . Myron Johnston

Young Smokers -- Prevalence, Trends, Implications, andiReliated Demographic Trends

For over fifteen years certain demographic and social trends have been moving in directions favorable to industry growth . Nbw, one by one, these powerful social and demographic factors are turning against us, and by 1985 all will be operating against us .

The trends are : 1 . After increasing for over a decade, the prevalence of teenage smoking is now declining sharply . 2 . After increasing for over a decade, the average daily consumption of teenage smokers is declining . 3 . After increasing 18 percent from 1967 to

1976, the absolute number of 15-19

year-olds will decline 19 percent during the 1980"s, with the period of sharpest decline beginning in 1981 . 4 . Beginning in 1981 the absolute number of 20-24 year-olds (the ages duringg which average daily cigarette consumption increases most rapidly)

L

i

will begin to decline, after increasing for the past 20 years . 5 . For the first time in a decade of polling, average daily cigarette consumption as reported on the National Panel has declined . 6 . In 1985, after declining for nearly a decade, the number of people in the

L

age group most disposed to quit smoking (ages 45-54) will begin to increase dramatically .

-1-

I

1U"C+:s9OS05

F F F IT F F I

-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

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series of memoranda rather than wait and issue all of the material at once .

MEJ :yl Attachments

CC :

Mr . R . Thomson Mr . H . Daniel Dr . C . Levy Mr . L . Meyer

Mr . J . Zoler (NYO) Mr . T . Goodale (NYO)

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.~., .,_

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. .. . . . . _,. .w ::.~..t;: :~.. ... .

Page 1 Teenage Smoking Prevalence 1968 -1974 3 Teenage Smoking Prevalence 1975 -1980 Smoking Prevalance and Educational Aspirations 8 I

Race Differences in Smoking Prevalence 12 Regional Differences in Smoking Prevalence 16 Future

Smoking

Expectations

18

Reasons for the Decline in Teenage Smoking 20 Conclusions

and

Implications

Plans I

21

22

Attachment A

Description of Data Sources

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Attachment B Charts

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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

; :

teens . In addition, the ten years following the teenage years is the period during which average daily consumption per smoker increases to the average adult level . The smoking natterns of teenagers are particularly important to PhiLip a~

~~

~ .X~ . :~ t ~a3 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

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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

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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 .

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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 .

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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 .

El

In a very few years, however, there will be a reversal of these trends (see Chart 1) . There will be a decline in the number of people, and an even greater decline in~ the number of smokers, in the age group in which average daily consumotion normally increases - the number of 20-24 year-olds will peak in 1981, and then begin an accelerating decline . Beginning in 1985 there will be an increase (which too will accelerate) in the number of people reaching the ages 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 .

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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

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are the perceived health~hazards of smoking and peer pressure not to smoke . 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 appear to be the least vulnerable of all the companies, as will be discussed later in this report .

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Teenage Smoking Prevalence 1968-1974 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 f or the National Clearinghouse on Smoking and Health : M1

TABLE

1

Percent who are "Current Regular Smokers"* by age, 1968-1974

1968

1 .8

13 .3

24 .4

1970

4 .4

17 .0

30 .0

1972

3 .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

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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 .

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TABLE' 2~

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Percent of 15-18 year-olds who were "Current Regular Smokers" 1968 - 1974 ! Boys

Girls

Total

1968

23 .6

14 .1

1970

18 .8

28' .4

18 .6

1972'

23 .5

24 .0

20 .8

22 .4

1974

24 .6

23 .0

23' .8

N

~ ~

C.! ~ ~ N 0

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 .

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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

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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

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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

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Percent of Seniors who Ever Smoked, Ever Smoked Daily, and' Quantity Smoked in Past 30 Days

Class Class Class Class Class Class of 1975 of 1976 of 1977 of 1978 of 1979 of 1980 Ever Smoked 73 Smoked in last 30 days 36 One or more per day 27 Ten or more per day 18 20 or more per day 9

.7 .8 .0 .0 .7

Self-definition : Current Regular Smoker 22 .0

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75 .4b 75 .8 75 .3 74 .0b 71 .0a 38 .8b 38 .5 36 .7a 34 .4a' 30 .5a 28 .7b 29 .0 27 .5b 25 .3a' 21 .3a 19 .1c 19 .3 18' .5 16 .4a 14 .3a 9 .9 10 .4 9 .7c 8 .4a 7 .4a 23 .5b' 23 .9

Current Regular or

Occasional Smoker 38 .4 40, .4b

N

10,100

14,600

40 .2

22 .8c 20 .3a 17 .4a 39 .Oc 36 .8a 32 .9a

. 15,500 18,450 16,200 16,500

aSignificantly different from preceding year p< .00'1 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 .

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6 TABLE 5 Percent of Seniors by Smoking Status, by Sex 1975-1980

Class Class Class Class Class Class of 1975 of 1976 of 1977 of 1978 of 1979 of 1980 Have Smoked in Last 30 Days

Male 37 .4 Female 35 .9

37 .7 39 .1

36 .7 39 .7

34 .5 31 .2 38 .1 37 .1

Smoked One or More Cigarettes/day in :Last 30 Days Male 27 .1 Female 26 .3

27 .9 28 .8

27 .3 30 .1

26 .0 28 .2

22 .3 27 .8

Smoked 10 or More Cigarettes/day in Last 30'Days Male 19 .8 Female 16 .1

19 .8 18 .0

19 .9 19 .0

19 .0 18 .0

15 .4 17 .1

13 .5 14 .7

22 .1 25 .2

21 .1 24 .0

17 .4 22 .5

15 .0 19 .2

38 .4 41 .6

36 .3 41 .2

33 .2 39 .6

29 .3 35 .7

Self-definition Ctirrent Regular Smoker

Male 22 .5 Female 21 .5

26 .8 33 .4

18 .6 23 .4

,

22 .5 24 .1

Self-def inition

Current Regular or Occasional Smoker

Male 38 .8 Female 37 .6

38 .9 41 .4

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

up

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 so in the case of the girls . Data are shown in Table 6 andChart 5 .

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TABLE 6

School Grade in which High School Seniors First Began Smoking on a Daily Basis, by Sex, 1976 and 1979 (Cumulative Incidence)

1976

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Grade Grade Grade Grade Grade Grade

6 or below 8 or below 9 or below 10, or below 11 or below 12 or below

Males

5 .7 16 .4 27 .0 34 .5 41 .5 44 .6

Never Smoked Daily

55 .4

Females 1979

1979

1976

6 .5 17 .8 25 .1 31 .5 36 .4 38 .8

3 .5 12 .6 23 .0 32 .2 41 .01 46 .1

61 .2

3 .4 17 .0 27 .1 35 .5 42 .4 46 .5

53 .9

53 .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

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Who Smoke One or More Cigarettes per day . Males

1975 1976 1977 1978 1979

28 .9' , 29 .8 28 .9 27 .5 23 .7

Females

27 .9 30 .4

31 .8

Total

28 .4 301.1

©

0

301 . 4

29 .9 29 .5

28 .7 26 .6

O Ca

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Smoking Prevalence and Educational Aspirations

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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

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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

Ever Smoked Ever Smoked Daily Smoked in last 30 days One or more per day Ten or more per day 20 or more per day Self-definition : Current Regular Smoker Current Regular or Occasional Smoker

Do Not Plan 4 years of College

68 .11 43 .2 26 .0 17 .0 9 .7 4 .4

80 .1 66 .0 43 .0 33 .9 23 .3 12 .7

13 .1

27 .5

29' .4~

r

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

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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 .

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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

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no data for the years from 1972 through 1977 . It appears that there was a

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1979 was substantially lower than in any year for which data are available .

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 Chart 7 shows the college freshmen data as well as the data for high school seniors with and without college plans .

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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 .

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TABLE 9

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Percent of College Freshmen Who "Smoked Cigarettes Frequently" During the Past Year"

1966 1968 1971~ 1978 1979

Males Females

19 .4 13 .2 18 .4 12 .0 16 .8 12 .7 10 .6 17 .1 .7 1'6 .7 9

~ ~ O. ~ ~

Total

16 15 14 13 13

.6 .6 .9 .9 .3

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I It is not only the presence or absence of col ;lege plans that is predictive of

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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

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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) .

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TABLE 10 Percent of College Freshmen Who "Smoked Cigarettes Frequently" During the Past Year, by Type and Selectivity of Institution, 1979 Type

of

Institution

Males

Two-year Colleges 12 .5 Four-year Colleges 8 .1 Universities 7 .6 Low Selectivity 9 .3 Medium Selectivity 7 .7 High Selectivity 4 .9'

Females 21 .1 13 .9 13 .4 14 .2 114 .3 1i0 :7

The entire question of the relationship between cigarette smoking and educational attainment raises additional questions as to the smoking behavior of teenagers who do not complete high school, as well as the future smoking behavior of college freshmen . Are high sehooli dropouts more likely to smoke than those who graduate? Are students who go to college simply late in beginning to smoke? Finally, are colilege students less likely than in the past to begin smoking once they get to coLlege?' The National Institute of Education longitudinal study (describe&in Attachment A) casts some light on these questions . In this study a group of 12-18 year-

o1d5 first surveyed in 1974,were recontacted in 1979 when they were then 17-23

years of age . Table 11 shows thei'r smoking status in 11974' and 1979'by school enrollment status and highest level of education completed for those who were not enrolled'in 197'9 and'for those enrolled in school, by class . It can be seen that among both males and females, school dropouts had higher smoking

prevalences in both 1974 and 1979 than those who had eompl'~eted high school, and that considerably fewer of the college educated were smokers . It is interesting that educational attainment is much more highly correlated with smoking among males than among females : Among males, dropouts were more than three times as likely as the college educated to be smokers at the time of the first survey, while female dropouts were only about 50 percent more liikely to smoke . Among adults there is also a stronger correlation for males than for females between educationallattainment and smoking prevalence, but the difference between the sexes is much less pronounced . Of perhaps even greater interest is the fact I

that the smoking-education relationship among these young females is slightly weaker than among adult females, while for males the relationship is considerably stronger than among adult males .

11

TABLE~ 11 Smoking Status in 1974 and 1,979 By Educational Attainment and Enrollment Percent Smoked 1974 : In School in 1979 High School College Freshman or Sophomore College Junior or Senior Not in School in 1:979 Not Hi'gh School Graduate High School Grad, No College Some College or College Grad .

0 .0

Male

Percent SmokeiT 1979

8 .6

5 .4

16 .3 15 .2 12 .2

36 .2

55 .3

22' .0 12'.0

40 .1 20 .5

Percent Smoked 1974

Female Percent Smoked 1979

1 .1 6 .4! 5 .4,

22 .6

26 .1

5M

20 .3 17 .3

19 .3 23' .0

36 .4 28 .6

Thus, among those still enrolled in school there is indeed a continued increase in the incidence of cigarette smoking during the college years, and the increase is much more pronounced among the females than among the males . A close examination of the data (not shown) di'scl~oses that all of the increase among the males (but not the females) was contri!buted'iby boys who were 12-14 :at the time of the first survey (17-19 and mainly college freshmen and sophomores in 1979) . Among the older males there were as many smokers who quit as there were .non-smokers who started to smoke . This continued increase in cigarette smoking during,the first year of college

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was observed in another study . The Youth in Transition Study (Insti'tute for Soeial' Research, University of Michigan - detail's iniAttachment A) surveyed 2200 boys in the 10th grade in the fall of 1966 and folliowed them through the spring of 1970 . Table 12 shows the percent who were regular cigarette smokers, (here defined as "nearly every day"),during the seni'~or year of high school and the first year after school . It is not surprising that those entering the military

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should show the greatest increase in the conversion of nonsmoking,to smoking status . It is quite likely that many of the college-bound boys reported in high school as non-smokers were in fact ex-smokers who had quit smoking while

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participating in athletics and had resumed smoking in college, for the study also showed an inverse relationship between smoking,prevalence and the number of extra-curricular activities in which they participate&, and most of the extra-curricular activities reported were sports .

12 TABLE 12 Percent Regular Cigarette Smokers by Post-High School Environment Smoked Smoked One During Year After N High School High School

College

827

19

25

Trade School

117

31,

38

Employed

559

53

55

Military

144

54

60

Other*

151

55

59'

1796

36

41

Total

*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

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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

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("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

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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, from 20 .7 to 11 .0 percent . During this perio&those who said they had smoked in the past 30 days declined from 38 .3 to 31 .0 percent among whites and from,39 .7 to 25 .2 percent among blacks . Data showing various measures of smoking

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prevalence for blacks and whites are shown in Table 13 and Chart 9 . TABLE 13

Percent of Seniors by Smoking Status, by Race, 1976-1979 Class Class Class Class Class of 1976 of 1977 of 1978 of 1979 of 1980 Have Smoked in Last 30 Days White Black Smoked One or More Cigarettes/day in Last 30 Days White

38 .3 39' .7

38 .4 34 .4

37 .0 31 .5

29 .0 23 .7

27 .7 22 .1!

0 .1 11 .7

20 .6 101 .2

19 .7 9 .5

Self-def ini tion Current Regular Smoker White 23 .9 20 .7 Black

24 .3 17 .7

23 .5 16 .3

Self-definition Current Regular or Occasional Smoker White Black

40 .5 34 .8

Smoked 10 or More Cigarettes/day in Last 30 Days White

Black

31 .0 25 .2 '

8 .8 26 .7

Black

34 .9 28 .7

0 .9 37 .3

'

.

39 .8 31 .7

25 .9 19 .4 -

21 .8 15 .9

17 .3 8 .4

15 .3 6 .1

20 .9 13 .5

18 .1 11 .0

37 .7 28 .5

33 .6 27 .2

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14 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

11

Percent of College Freshmen Who "Smoked Cigarettes Frequently" During 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

}

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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 . ,

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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

White

1976

Black

White

1979

Black

By Grade 6

4 .6

3 .8

By Grade 8'

4 .8

4 .0

14 .8

10 .0

18 .3

By Grade 9

11 .1

25 .2

18 .6

27 .1

By Grade 10

19 .5

33' .4

28 .0

34 .0

28 .8

By Grade 11

40 .9

38 .2

40 .4

32 .9

By Grade 12

44 .7

44 .6

43 .4 _

37 .6

55 .3

55 .4

56 .6

62 .4

Never Smoked Daily

I If these trends continue, this more rapi&decline among blacks in the percent

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who smoke, coupled with their much lower rates of consumption, will make blacks

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a less significant factor in the market than in the past, in spite of the fact

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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 .

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16 Regional Differences in Smoking Prevalence . By whatever measure of cigarette smoking one chooses, the West has by far th e 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 i s that the conventional wisdom has long held that parental smoking behavior is on e of the best predictors of adolescent smoking behavior .

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TABLE 1 6

Percent of Seniors whoEver Smoked, Ever Smoked Daily and Quantity Smoke&in past 30 Days, By Region, 198 0

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North East Ever Smoked Smoke&in Past 30 days

.

Nort h Central

South

Wes t

71 .7 34 .1

73 .6 31 .'5

71 .6 31 .8

64 . 2 21 . 1

24 .2 17 .0

22 .0 15 .4

22 .7 14 .6

13 . S 8.3

8 .9

8 .4

7 .5

3.5

Self-definition : Current Regular Smoker

20 .1

18 .5

17 .8

10 . 7

Current Regular o r Occasional Smoker

35 .5

34 .6

33 .9

24 .0 1

3877

4873

5049

272 6

One or more per day Ten or more per day 20 or more per day

N=

I Also in 1970, a considerably larger percentage of the boys inithe South and Midwest 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 Midwest, two in the Northeast and one in the West .) This is consistent with the 1972 college data (reported below) in which the regions, ranked'~ in descending order

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of smoking prevalence, were Northeast, South, Midwest, and West (Table 17) .

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17 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 in Table 17 and Chart 12 .

I

TABLE 17 Percent of Entering College Freshmen Who

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Smoked Cigarettes During the Previous Year 1968 Males

Northeast Northcentral S outh West

Females

20 .8 17 .1

16 .1

15 .9

19 .6

O

1979 Males

Females

10 .2

11 .1 8 .3

21 .4 12 .4

9 .2

7 .2

10A

111 .0

9 .4

113 .9

O

W 0 an

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There are also regional differences in the average number of cigarettes smoked per day by the high school seniors who do smoke, and again we find that average 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 1979, as shown in Table 18 .

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TABLE 18

Average Daily Cigarette Consumption Per Smoker, 1975 and 1979, by Region*

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North Central 12 .5

11 .6

South

11 .5

11 .8

111 .2

11'~ .3

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

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12 .3

*Based only on those who smoke one or more cigarettes per day .

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13 .3

West

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1979

Northeast

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1975

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

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

40 .6

50 :.1

50 .9

54 .5

57 .4

Definitely will

19 There is a fairly steady decline over the entire period in the percent of the respondents who indicate that they definitely or probably will be smoking five years hence, and a concomitant increase in the percent who said they definitely

will not be smoking cigarettes . The sharp change between the classes of 1975

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and 1976 may well have been the result of the series of Reader's Digest articles on the gasses in cigarettes that appeared at about the time of the 1976 survey . It was noted above that there are now more teenage girls than boys who smoke . This is also refl~ected in smoking intent, as shown in Table 20 and Chart 14 . both 1975 and 1979, girls indicated a greater likelihood than boys that they would be smoking in five years . While the future smoking probabilities declined for both sexes between 1975 and 1979, the boys changed somewhat more than the girls in the direction of not smoking . In any event, to the extent that attitudes and intentions do predict behavior, these data portend a continued decline in the share of teenagers and, later, the adult population, who smoke cigarettes, as well as an increase in the share of smokers who are female .

I TABLE 20

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Responses to the Question "Do you think you wilil be smoking cigarettes five years from now?"

1975 and 1979, by Sex

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1975 Definitely will Probably will Probably will not Definitely will not

1 24 31 42

.3 .8 .5 .4

Male

1979

1975

0 .2 11 .6 25 .0 62 .9

0 .7 29 .7 30 .5 39~ .1

Female

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O

1979

~

0 .6 16 .3 29 .2 53 .9

~ ~ ~? ~

The regional differences in smoking anticipations are not as pronounced in 1979 as the regional differences in current smoking status, as shown in Table 21 and Chart 15 . The West is again the region with the smallest proportion who expect to be smoking in five years, but the other three regions have converged and are moving in the direction already reached by high school seniors in the West .

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20 TABLE 21

Percent of Seniors Who Said They "Definitely Would" or "Probably Would" Be Smoking Cigarettes . Five Years From Survey Date North East 1975 ' 1976 1977 1978 1979

North Central

38' .7 23 .1 22 .8 19 .6 16 .7

27 23 20 18 16

Percent Change (1975- 1979) -57%

.6 .0 .6 .4 .9

-39%

South 24 24 19 17 16

.4 .0 .1 .2 .5

-32%

West 21 12 13 10 6

.7 .8 .4 .6 .9

-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 antismoking 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) .

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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

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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 .

i i

While the news is bad for the industry, it is not as bad for Philip~Morris .

~

20's will, other things being equal!, result in increased unit sales to those

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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 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 .

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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

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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 .

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Attachment A

Description of Data Sources

ATTACHMENT A Description of Data Sources I

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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

I

the other half are carry-overs from the previous year . In this way the halfsamples 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 0

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resulted in the sample sizes and student response rates shown below .

1

. :~.~.~._, . .

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,

Sample Sizes and Student Response Rates'

1975 I

I

Number of Public Schools Number of Private Schools Total Number of Schools

111 14 125

1976

1977

1978

108 15 123

108' 16 124

111 20 131

Number of Participating Students 15,792 16,678 18,436 18,924 Student Response Rate 78% 77% 79% 83% .

Questionnaires are administered in the classrooms by SRC personnel and students

I

(

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 :

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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

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2

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?

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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 law from 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?

each of

. . . .Smoking one or more packs of cigarettes per day

10 . H'ow do you think your CLOSE FRIENDS feel (or would feel) about YOUR doing each of the following things? . . . .Smoking one or more packs of cigarettes per day 11 . How much~do your think people risk harming themselves (physically or in other 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

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detail . The others will be covered in subsequent memos or reports .

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-4Cooperative 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, fouryear 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 and'for the different response rates . The number of institutions and students

participating and

included in the analysis are shown below .

Institutions and Students Participating and'Includled

Institutions Participating Institutions Included Students Participating Students Included

Q

1966

1971

1978!

1979

0 (=

307 251

487 326

566 383

560 362

(a 0

254,480 NA

288,526 171,509

289,641 187,603

289,814 190,151

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-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

I

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

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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 .

1000390835

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-6The National Institute of Education 1979 Longitudinal Study In this study an attempt was made to contact the respondents to the 1974 study (described above) in order to determine which of a variety of attitudinal, family, and socio-economic variables were the best predictors of smoking after five years had elapsed . The sample sizes were quite small, but the data are consistent with the data from the Youth in Transition study (described above)

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and are therefore useful .

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Ci IART I POPULATION TRENDS, 1960-1990 30 J ~' POPULATION 15-19 POPULATION 20-24 G'EPOPULATION 45-54 25 ! 20 J 0

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0

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60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90

YEAR

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CHART 2 VARIOUS MEASURES OF SM9KING, 1975-19H

50 ., A SHQKED IN LAST 3~ DAYS

Q'-0 SMDKED 1+IDAY, LAST 30 DAYS o--ESMDKED 1 gtIDAY, LAST 30 DAYS o-^-OSMO'KED 29+lDAY, LAST 30 DAYS

49 !

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29 ~

--s-----------e

.. ._-..

- ._.E --------9 ---_'o -------- # ------ 4

-~_--.~a-

._

.,

1s

s w w

1975 1976 1977 1978 1979

YEAR

~~. ., a

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CHART 3 SELF-DEFINITION OF SMOKING STATUS

50 .. A-71~ CURRENT REGULAR OR OCCASICraAL SMOKER 9"'9 CURRENT REGULAR SMOKER 40 J

30

20

-4

Q.-~'-

_ .,~-_-_-_____

. ,,.

-

-

E .

~-- -.. .,

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1975 1976 1977 1978

YEAR

1979 198a

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CHART 4 60 A---AMALE, SiaOKED IN 30 DAYS 0"0FEMALE, SMOKED IN 30 DAYS B'-SMALE, 1+/DAY IN 30 DAYS a--0FEMALE, 1+/DAY IN 30 DAYS *--*MALE, 19+/DAY IN 30 DAYS V'--VFEMALE, 18+/DAY IN 30 DAYS

49 J

[ 38 ! ''-----~ ',_

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20 J

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1975

I 1976

1

1977 1978 1979 1980 YEAR

CHART S CUMULATIVE SMCKING INCIDENCE, BY'GRADE, MALES

8

7

8 GRADE

CUMULATIVE SMOKING INCIDENCE, BY GRADE, FEMALES

I I 6

7

8 GRADE

.

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CHART 6

SMOKED CNIE OR MORE PER DAY IN LAST 30 DAYS A-~NC FOUR-YEAR COLLEGE PLANS ., il-'-sPLAN' FOUR YEARS OF COLLEGE

4

[

301

20

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o-- ---------- - ~--

-

., .,

.,

~~.

18

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1976 1977

1978

YEAR

1979 198o

I IT IT I F I

CHART 7

CURRENT REG( .1L~',R SKKERS, H . S .ANb CLLLEGE ,'-~HIGH SCHOOL SENICRS, 1'1O COLLEGE PLr .NS 40 .. ~""~ HIGH SCHOOL SE~IC~~~S, COLLEGE PLhINS CQLLEGE FRESHf" 'E~y

28 J

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~ .~

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10 a

66 67 68 69 70 71 72 73 74 75 70 77 78 75 80

YEAR

I IT IT F iT

CHART 8

Si~C;CEl~ C.iG~.RLTTES FKEC~UE~iTLY .i~i PAST YEr.R

) :.

~ COLLEGE FRESHNN' ,liALES .. fl"-- ECLLLEGE FRE SNNA,11' FEMALES

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fio 67, 68 69 70 71 72 73 74 75 76 77 78 79 Y~r-rAD ,, . .

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CHART 9 A---AWHITES, SMOKED WITHIN 30 DAYS a--~ BLACKS, SMOKED WITHIN 30 DAYS &--DWHITES, 1+/DAY IN 30 DAYS o--~ BLACKSI 1+/DAY IN 30 DAYS *--* WHITES, 10+f DAY IN 30 DAYS 7---v BLACKS, l9+lDAY IN 30 DAYS

( P E R C E N' T

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30 20 --

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1976 1977

1978 1979 YEAR

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CHART 10 SMC}CED FREQUENTLY PAST YEAR, COLLEGE FRESHIME4

&---A ALL INSTITISTIGIS °--SFREDGMINATELY BLACK INSTITUTICNS

15!

10 -

-~-----------------------------------t~_ • J

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6s 67 68 69 78 71 72 73 74 75 76 77 78 79

YEAR

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CH'ART l1

S?.,OKED 1+/DAY IN LAST S0DAYS

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CHART 12

SM9KED FRE9UE'JTLY PAST YEAR, CflLLEGE FRESHMEH' . A--i NORTHEAST fl--~ NORTH CENTRAL SOUTH WEST

I 20

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0

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68 69 70 71 72 73 74'75 76 77 78 79 0

YEAR

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CHART 13

100

SMOKING PROBABILITIES FI1'E YEARS HENCE

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CHART 14 SMOKING PROBABILITIES FIVE YEARS HENCE

( ieg . f

~ DEFIINITELY 1'10T AND PROBABLY NOT, MALES 0`--ODEFINTTELY NOT AND PROBABLY NQT, FEMALES *"-*DEFINITELY NOT, MALES . 11--flDEFINITELY NOT, FEMALES

80

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20

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1975 1975 1977 1978 1979 .~_:

YEAR

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CHART 15 DEFINITELY OR PROBABLY NILL SMOKE FIVE YEARS HENCE

40

&---Ai`lORTHEAST NORTH CENTRAL SOUTH a-0 WEST

30

20

10

1975 1976 1977

YEAR

_I

1978 1979

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CHART 16 PERCEIDJED DISAPPROVAL OF Sr"CKIING A PACK A DAY 1 00

&---A PA R'EHTS

D--.-FJ SEL F

*-~ PEERS

sg ~

Q- - --- -- -~-~ ----------- fl -------- - .. .. . .. ....~--,~~ =~--~

_-

Q 1

0

1975 1976

i1977

1978 1979 1982

YEAR

0 0 0 w ca 0 ~

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CHART 17 PERCEhlED GREAT RISK OF VARICUS BEHAVICRS

A--14-5 DRIN- KS NEARLY EVERY DAY 13-'-E'SMC ;CE PACK OR MORE CIGTS PER DAY "~-"*TRY HEROIN ONCE OR T~ICE 80 J *--*SNOKE h1ARIHUANA REGULARLY

P E R C E N T

, J

__ ------~

60

0

*

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.,

-*

-

20

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1976 1977 1978 1979

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YEAR ~. . 8.za X-Q.,

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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 nonsmokers 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 .

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3 TABLE I EFFECTS EXPECTED OR DERIVED FROM CIGARETTE SMOKING Pre-Smokerl Learnerl Smokerl

I.

PHYSICAL EFFECTS A.

Nicotine Response

B.

Sensory Effects

0

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 .

B.

+++

+++

0

Stress and Boredom Relief - Buys time, valid interruption, bridges awkward times and situations, something to do, etc .

+

++

+++

C.

Self-Image Enhancement - Identification with valued persons, daring, sophisticated, free to choose, adult, etc .

++

-I-++

D.

Experimentation - Try something new, experiment, etc . +++

+++

0

1+ = positive 0 = none - = negative

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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

of

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 ./cigarette, 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 tolerance 00 for smoke irritation, hence the smoke should be as bland as possible .

2.

N O

N

V w a .r

Flavor - The flavor of tobacco smoke is initially foreign, and not pleasant . One cultivates a taste for smoke much as one learns to like olives or dry wines . Perhaps, as in the case of taste of water, there is no really "good" flavor, only degrees of "bad" flavor . Thus for the beginning smoker the cigarette smoke should have a

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 determine 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,

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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 .

(

This desirable attribute of smoking should be strongly emphasized in promoting a new youth brand . C . Self-Image Enhancement - The fragile, developing self-image of the young person needs all of the support and enhancement it can get . Smoking may appear to enhance that self-image in a variety of ways . If

one values, for example, an adventurous, sophisticated, adult image, smoking may enhance ones self-image . If one values certain characteristics in specific individuals or types and those persons or types smoke, then if one also smokes he is psychologically a little more like the valued image . This self-image enhancement effect has traditionally been a str . :)ng promotional theme for cigarette brands and should continue to be emphasized . D . Experimentation - There is a strong drive in most people, particularly the young, to try new things and experiences . This drive no doubt leads many pre-smokers to experiment with smoking, simply because it is there and they want to know more about it . A new brand offering something novel and different is likely to attract experimenters, young and old, and if it offers an advantage it is likely to retain these users . There is another psychological factor which did not readily fall into Table I, but which may be quite important . That category might be called "Anti-Establishment Attitudes" . It does not enter ~ into the decision to start smoking but may strongly influence the brand chosen . Today more than ever, young people tend to reject whatever is accepted by the "over-thirty" establishment, which includes their parents . If "Brand 30+" is the accepted "in" brand with the establishment, it is likely that many young smokers will

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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 greate r 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 and ~ 0 perhaps even over--twenty-five groups . Must become the proprietary "in" OD thing of the "young" group . . 6 . Should 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 obviously 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

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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

11 smoke, and (2) creation of some useful, demonstrable novelty in filter, mouthpiece, package or other aspect of the product system .

Our Company needs to take advantage of the opportunity to market new youth brands of cigarettes . The thoughts expressed here may provide a preliminary agenda for discussions between Research, TPD, Marketing and Management, aimed at more precisely defining what we could ultimately make and promote . It is hoped that such discussions will soon ensue . Meanwhile, it becomes appropriate for Research to seek ways to control smoke irritancy and to seek to create novel, useful ciearette -, svstems . ------ --o-------

:3hb

Claude E . Te'ague, Jr . February 2, 1973

e4,t fC&w

, August 30,197~i KENT

~~ 711

TO, :

Mr . CLlrtis Jud'ge' -1, / _ X1 .

FROM :

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 .

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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~(usually college 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 ~ NEUuTPORT' brands?' Is Marlboro as strong with the early beginning consumers v as the NEWPORT brands? Could' we endithe success story for Marlboro by furnishing the young adult consumers with a total category of "In"'

brands?

I' think the time is right to develop a NEWPORT NATURAL (non-menthol) cigarette to attract the young adult consumer desiring a non-menthol product ., We have a solid basewith~ NEWPORTiand I forsee much success with the name of NEWPORT

oninew packaging .

SUITE 2', RTR BLDG .,, RTE . 73, MT. LAUREL, N .J . 080641 Telephone : (609) 234-8141-42

C~ W C11

~

My

~

(

-2-

We would need~ paickaging in the Soft pack and Box . A good test area msght be the Camden, New Jersey Division, . . NIMP©RT RING SIZE' is the #6 brand (all companies) in this Division .

TLA :es

SUITE 2, RTR BLDG ., RTE . 73, MT. LAUREL, N .J . 08054 Telephone :, (609) 234-8141-42'