RAT INDUSTPIES Wind,of Hot jsP50 Victoria Sirpel London SW1HONL TplephonP071-222 7979 Froin the Chairinan 4th January 1991 To: Mr. R.J. Pritchard c.c. Mr. M.F. Broughton Mr. B.D. Bramlev Mr. U. Herter Tobacco General Managers' Marketing Seminar Following our discussion at Sandwich on 13th December, I am writing to confirm what we agreed regarding the marketing seminar which you have said you will organise. 1. The purpose of the seminar will be to provide an opportunity for selected high potential general managers from the Tobacco businesses to exchange views and to improve their understanding of some of the key marketing issues determining the future success of B.A.T Industries in the Tobacco market. 2. The seminar will be held in the USA from 25th to 28th November 1991, probably in Dallas. 3. Subjects to be covered in the seminar are:- (a) Excise Structures (session to be prepared by Mr. Herter) - Discussion of advantages and disadvantages of different structures, illustrated by case studies. - Team work to devise solutions to the EEC harmonisation problem. (b) Brand Goodwill (session to be prepared by Mr. Bramley) - Discussion of accounting and other methods for valuing goodwill. - How can brand images be maintained/enhanced/extended. - The importance of quality. - Mr. Wilmat Tennyson to speak on Canadian experience. Lrl C) r1 i cl~) 1-1 1 Lul X.! --4 CO BATCO document for Province of BritiSh Columbia 25 October 1999 (c) Cost Effectiveness of Promotion (session to be prepared by Mr. Pritchard) - How does the total spend in BAT compare with sales and profits. - Relationship between levels of support and market share (possibly illustrated by case studies; Kool, etc.). - Possible speaker from Harvard on academic view. - Are there lessons to be learned from Proctor and Camble/Coca-Cola/Unilever, etc. - Relative cost effectiveness of different forms of promotion. (d) Distribution/Trade Relationships (session to be prepared by Mr. Pritchard) - Role of the field force. - Motivation of agents, agency agreements, etc. 4. It was also suggested that some time might be spent on competitor analysis. 5. On the final afternoon of the seminar, there will be an opportunity for the people at the meeting to raise questions and discuss marketing issues with a panel including the Chairman, Mr. Bramley, Mr. Pritchard and Mr. Herter. 6. A first provisional list of the people likely to be invited to attend the seminar (who should be senior managers with the potential for further development) is as follows:- (a) Brown & Williamson Sandefur, Whicehair, Schoenbachler, Fitzmaurice. (b) Souza Cruz Castro, Andrade. (c) Imperial Brown, Lee. (d) BATCF Schweitzer, To.at. (e) BATCo. Brookes, Hazel, Watterton, Ross, Miller, Grant, Tandrup, Freire, Viner, Wormser, Arnold, Stephenson, Edmunds, Rose, Chukh, Borloz, Stuart, McDowell, Matamaros, Ingham. 7. Mr. Eckmann will be made responsible for the detailed arrangements for the seminar and ill attend the 27th February meeting of the Tobacco Strategy Review Team hen the seminar will be discussed. 8. A copy of the note which has been circulated to the remaining members attached. of the Tobacco Strategy Review Team C) Patrick Sheehy CIO Enclosure ___4 BATCo document for Province of British Columbia 25 October 1999