IA I I5_; C K . E 22 Augus.:. 197 22 Dr. Green's paper oil the Association of Sm"Iiin': and Dise.15e 0 i Miniites of Scientific Development 21 st Julv 1972) I entirely agree ii~-ith the statement that "Because smoking has become a social problcm, cigarette manufacturers must become more, rather than less. socially responsive". As you will remember, we discussed this question in Montreal, and came to the conclusion that B.A.T. should pursue, for example, product developmcnt in order to reduce the apparent and increasing "social offensivcncss" with the habit, and this is being done Initially via rescarch in the U.K. Other work, eg. BATFLAKE, is also, of cuur:4", proc'-dilig via the N.P.C. Our thinking, however, needs to be taken a good deal fu_rther in order to construct the guidelines Dr. Green recommends- There are, I think, two underlying policies governing the development of I'licalthier" products i~ith related communication programmes, which though they overlap, can be separated: 1. Pre-empting hostile government legislation through timely agreements within the industry, ie. demonstrating to Govern- mcjlrs and to the public that tobacco manufacturers are "socially responsible" people. This could be extended to pre-empting moves by powerful consumer groups (consumerism) which independently from Government, could throw smoking in gencral, or certain products in particular into disrepute. This policy, however, tends to limit rather than expand, our marketing activitiLs, eg. through advertising restrictions or -arning labels- The second policy encourages expansion in product development work, and consequently in marketing also. The policy suggested by Dr. Green, ic. that we should aim "to provide the best service u-e can for our consumers" (even though 'consumer orientation' has always been a cardinal principle recommended, and adopted by Marketing). Dr. Green, however, is going fu.rtlicr, and nitich of idiat lie has in mi.ztd is becoming explicit in the work of the NI.P.C. perhaps the guidelines should now be stated more clearly, and the main thrust of the central work undertaken by N.P.C. could well be governed by them. "Best service" should be defined, not in terms of negative "warnings" or invidious comparisons between products to the disadx-antage of our existing ranges, but rather by providing ncu- products, positively and attractively promoted, including new ingredients like BATFLAKE, or with new filters which have kiiown consumer appezil (shown by the usual methods of pre-testing). BATFLAKE, inticed, is very much a case in point. When the product tests in Jersey and Sivitzerland have been completedl icc nc(~d to decide u-Iiethei- or not we should make claims for the BATCo document for Province of British Columbia 4 November 1999 m.i1cri.-i1 in communication i,7ith the constuner: this is 1-i-iectly possible, if we discover, say, in further research, 1 h.it some consitiner's an-~iaties ire relieved when thev know %lint a reliablo mantifacturer lins produced a "safer" product. Cunsurners, may even welcome the inclusion of non-tobacco ninterials. We do knot kiiow, and we ought to find out. You r4 ghtly add, hoiecvcr, that it would be "nice to have official b~e,sing% If attractive programmes, promoting "better" prodticts with iiv%,- ingredients are devised, then consumers .-irc incire likely to lic induced to purchasc them if the in- g,--lients aro. authenticated by independent and official gri-ps, i.e. govcriiiiients or professional bodies. Direct hen1th claims may be difficult or impossible to make, depending on the c-xisting regulations in a given country. But regula- tions can be changed in the light of published evidence which entails that we -would have to accept the loss of some com- petitive edge with shared information. This is precisely where -ir ..-keting skills should be e%ercised. "Safer" products, even w~ith an enriched choice for consumers amongst a variety of "healthier" products, may still find a limited market, even in the more sophisticated and health- conscious countries. The entire "Hi-Fill sector in the U.S.A. is show-ing gradual decline, and our kn-ledge of consumer "segments" worldwide suggests that opportunities for this kind of development and com- munication will be restricted to certain types of smokers. Consumer motivat-itin is indeed complex, as shovn iii the recent excellent survev ol literatiii'v 11-110 by D.J. Wood (G.R_ & D.C). lit brief, I think the "guidelines" suggested by Dr. Green are well i~ortli formulating, particularly in the light of active proditct development underwayt under the auspices of N.P.C. I think- a joint R & D/Marketing working party is suggested, in order to formulate proposals. TP SHORT. Nn-,dam, E.-I. L., CD BATCo document for Province of BritiSh Columbia 4 November 1999