NOTE TO Hr M N Norsworthy cc Mr B D Bramley FROM Mr R A Crichton DATE 13th November 1990 SUBJECT TOBACCO MARKETING DIRECTORS' SEKINAR Please express to Roy Salter BATCo's response to his request: objectives and Decisions emanating from the Seminar We suggest that the objectives of the seminar should be clearly stated. We suggest these might be: - to gain a better understanding of the consumer and the marketplace in the 1990s; - to pool together the different experiences of the key RAT Industries' tobacco companies; - to review and redefine where necessary the Group's marketing policies and strategies. The decisions which should flow from the meeting would be clear recommendations on various policy and strategy issues which emerge. Agenda We think that the suggested subjects are all relevant to the seminar. We also think that the topics boil down to anticipating the needs of the marketplace (consumers and competitive action), how the Group's International and other strategic brands should be managed and exploited, and the direction of new product development. The training and development of marketing staff is a priority for BATCo. Improving the sales and distribution function is a further priority. BATCo document for Province of BritiSh Columbia 25 October 1999 We thus Suggest eight main headings: I The future environment of the cigarette business and the nature of the consumer up to the year 2000. 2 Competitors' future strategies outside the USA and how the Group should prepare itself against them. 3 Review of current BAT Marketing Policy and Strategy and new definitions /areas to address. 4 New Product Development: - Vhat does the consumer want? Should the direction of NPD be evolutionary or revolutionary? - Is it possible to define the characteristics of a product that could establish a unique position in the market and which would be sufficiently attractive to a broad range of consumers to justify its launch as a full revenue or International brand? 5 BAT International Brand Positioning and Strategy: - How is competition expected to react to Group strategies to expand International brands globally? 6 Communications Strategy: - What are the best techniques for maintaining/ i acreas ing brand awareness and goodwill when advertising is banned? - How valuable is sponsorship and how should it best be evaluated? - Can trademarks be promoted effectively through other products? - What is competition's current and likely future strategy on levels and types of communications expenditure? 7 Training Marketing Staff: - Raw do the companies train their staff? - What changes/ improvements should be made to identify future Marketing Directors and ensure they are well trained? 8 Sales and Distribution: - What strategies should be adopted to gain greater efficiency and effectiveness in sales and distribution? - Ekw should trade relationships be improved? BATCo document for Province of British Columbia 25 October 1999 There are a number of topics which could quite easily take up a lot of discussion time on their own. Further discussion would be needed at a later dare on some topics and on those items suggested in Roy Salter's note but not directly addressed here. Participation The participants we assume to be the SVP Marketing for B&W Domestic, the SVP for BVI and the Marketing Directors of Imperial, Souza Cruz and BATCo. JearrLouis Mercier suggested in Canada that certain selected Marketing Directors from BATCo operating companies would add some geographical width. If this is the case, may we nominate some candidates? A Crichton f\2 BATCo document for Province of British Columbia 25 October 1999