i CIJ O W (J1 C C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 From: MR, 11M R. W. JONES MR, 1EE KOK KONC Ms. JOCELYN NC'~u~cl4' 12th May 1989 I now attach the third part of the trilogy received from Canada - Marketing Struegic and Development Plans 1989 · for you to study in turn and then pass back to me for retention, having taken photo- copies if you so wish, Notice as usual the clear-thinking of the Canadians, based as always on understanding of the consumer and foresight in how the market and the brands are likely to shift : In the inrrodudory Development Priorities statement it is openly acknowledged that on unbiased forecast will lead to a loss of 1,9 share points over t yean, Proactive activity on price is seen as the major short term ploy to close the gap, ~he mid·tcrm plays are clearly stated as the up-dating of Players, a low delivery project for Players, and a Matinee larianalintionlunificarion, The long·term ploys take into account the 1992 ban on conventional launches and the fact that introductions will need to be lightly targetted on small nicher in an undynamie market. The volume gap they have to close is well quantified3 years ahead. The contribution effect is clearly estimated. Signs of clear-headedness over a considerable term, Each project has a one-sentence introduction laying why it exists. The brief write-up following is based on market knowledge rather than an optimistic aim at a phantom image gap. Notice how Project Apollo is aimed at Expert Ultra lights' Achilles heel, not straight at the competitive brand. Notice hew Project Cruise is aimed at a tiny niche on the basis of eventuaiity· Parallels with BkHSM ? Notice that Project Day iS written up at this early stage even though it will be 2 years until they will be ready to launch, Notice how Project Monty is aimed solely at the pricel discounting niche and at other. A trade price war will not force the Canadians to debase existing brands, because Monty will be ready. tn BATCO CONFIDENTIAl· CATEGORY I: MINNESOTATOBACCO 1IGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: Dill I ' - Page t. Notice how projects Spur and Trident acknowledge develPp· ing weaknesses in Players very early in the day, Above all, please note las with the Trademark and Bland Strategics document circulated earlier) how a brief, well written and early statement of development priorities by Marketing department becomes the Co_mpanyls working document and not just the department's, In parallel with the TlademarklBrand Strategies 1990 document ' which JL is taking to readiness by the end of November 1989, 1 should like 1KK to produce a simultaneous Development Plans 1990 document, Jland JN will have inputs to make,and the brand mapping exercise will be vital to our project list. i envi· sage us having only about I projects to write up at that time, but I do warn that they must not all be based on image and price gaps; sensory considerations will also play a part. ( R, W, JONES ) Enc, RW3labr BGTCO CONFIDENIIAG C~TEGORI I: MINIESOUTOBICCO ImGATION C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 C F; ii ;i i" OZ W O Ifi 3 LJ BArco CONFIWIPIL CATEGORY I; MINEXmTOBICCO LmC~TIOH C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 DEVELOP~WT ~d~~ The most rec?rr plmniq forecast drops us a little versus o~tct!nJ. ~s it etl~r toba~, the gap is ·6 in U~ grainp to 1~9 by !991. ~ couple oi t:oad considerations ships the deve!ogat plan. m thc ahort ten: 1. Our operational priorities dir c·jy prohibit a~ nY dc~sloptet in 1989 - other than A~ 2~ we have to pll defense. We've lost 2 share poi.?ts pati~na!~ aIld up to 8-9 in uo:cn markets to the ilhrtclnj aolr~ mis has to be ~illsd where it is ae:l;e and prsocPtsd from oare~ding~ In spite or' our best efio::s, i'. looks i~rcalin~ly Ifb Price will arpe It a ~ari~lc, The d$ is cdnp when we will h~p to play ~i~· 111 price - related areas d to be unders;ood Id the ones that make sense prepared for we should stop recct~q Ird start Ipltlatfn( - or it is Ilke~ that we'il be Co!ng 1 lot of raaetine~ ~TCO ColAoa~l· C~noon e YlwM~~~s~cco lms~oM ClibPDF - v~~fastio.soni 3. There is roon for short term gains. Ltiie Special and Cleo Specie! have "prohlerns" that will respond to trial-oriesr.cd Marketing programs. Thep offer our best shot at short te~n share improvernent~ In the mid term: i. There are a few saa~e~ic ptiorities~ ~!aver's has to be made au coucant with the evolution of other keH canadian trademark. ~atlnee needs to be unified into a consistent and EuppoaEjle asset. Both of these exercises are high ptiorit~l. 2. The most ahvicus and impo~bs; development op?ortun!t~i is far so~e:his frcm Plaver'E at the 8·!0 ~n~ level. ii let of the anal~ica! work is done - the development is conventional · and it can proceed with dispatch. In the ~onger term: i. The lictt; co out on conventional launches iT· 1992t492~ Anything i$artant that needs to he done using there kind of resources Is going to have to be done 1~ then~ i. Market ~i~E~in is low, r;e'ii have to continue ~ relativeiv nail holes with all the increased risk that this entails ~ The driving force in brand develocment is share grcwth. ;"-'3TiCE real market dyn~misJ is no: prdicted (zJ O within t?,is 'cime frame. V11 BAtCO CONFIOENTIAI· CATEGORY I: MINNESOTA TOBACCO I~IGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 3. lechniell evolutions like vIgl, 5~1 and DhY will mt be likely to see t;?e market in the next three years. The techPolo~ lust isn't there, The acquisition of t:ovlt~~ relfna_ba~c: a verL high priority. E. There are opportunities. U.S, blends, low CO, major trademarks around 5pg Id higher tar slim products can he mticip~ted to proviCt 1-2 successful and strategically ~alfd optfapa a t991~ Comibrinp these tae:s, here's what the schedule looh liks to the ed of the ner: thret years. 1989 1990 1991 1992 - · 1 j Pibrsglals i Omoga I~atirel Cameo Sp, .Souri One' of: .I~~conC ,a~ ~Plavsr's k slims ftoa thlr r ~oco list .tiL at 1 O,S, .DIicl '~ro~d 51q Yitbnt bci~ defini;ive, we can take a pre;ty pod shot at the net new caa;:ihtior of these exercises. Defensive projects obviously don't add to grab; they ensure that a don't slip back from vhcra uc ara, BATCO Co#Rnem~L· Cwaon t YIMwEBon~rcco Imoaol ClibPDF - v~~fastio.soni 1989 1990 1991 SPUR FIBREGiXSS MONn (I4ICEI OISEGX RhT~ SS~~/C~i~iD~O SP, ,Z ~1 .4 iltiBY .2 ,4 BLA~' 8 ~II9 ·. .2 PROJECTefl0~3ilCT ,i .3 TOTAI, N"cT NEW ,4 1,1 i,? i\dding these to the forecast we'te close. we have to do them all, we have 'C3 be ready to offset any si~nifican~ opr:osition introd~uecion, 1989 1990 199! NZT NEti 3IIS PW .4 1,i 1,'1 ~OREC~~ 56,9 58,1 TbTRt j7,3 j8.6 89,8 C8J~CTI:T~S 57,5 jg,0 60, 0 Gs9 ,2 ,4 .2 VOIUEIE i~ G~P 100 18j 90 3'15 :n tjtz:, we should be within reach of the oSjectiv~ with ~nventer?r activity if these estimates turn our to he on the high side, Rj/je ~ebruar~ Z4th, 1989 BAfCO CONFIDENTIAL· CATEGORY I: MINNESOTA TOBACCO LTnGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 i 9 C: IS1 O Ui U O BATCO CONFIDENTIAL· CATEGORY I: MINNESOTATOBACCO Lmcnno# Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 erpject APOW PROj2CT ~OGiO wiL~ F~iiSi~T1 ~r:2 POT~IAL O~ ii vEXy LO~ TAi~ BR~ND ~IiiCH ~O~iD n;iI72a mRe ?8ooveT aT;s;acr;a ~W I~kGa Ci~GE~Ti~LS aiAN EifiS?f~G ENTRIES, The iaune~ al project TJaBO at the low tar e~ of the MildiPapi Modern sewen; was a c~Jp!e~e success as du Elau:ier Pt~a Light req:esenrs not only a 5:and which is destined to grow to 3.19 in 19Si but one that represents crdible lid tar, andIogyneous credentials at its tar level. In late 1988, Export Irimched an Ultra Ligtt at 6mg, ha~kiq on its image e~itg of credible taste credentials, we have yet to express a final judgement on i:; success, however, it does create a precedent worth ojsarviq, Step by step, the three major ;rac?emar:us in Canada are slowly hut surely invading all viable seSslents. The segment right belou the MI1CiPodHaCern, the very low segment, has beet! st~le for the past four pears iforgetting 1986 as a price ar yes:), It is also destined :o stability for the next Edllr years. Bowever, we also know ~aat ma~ Ve~r lew tar snoices e,v.PresS a desire for more papc!k· and satis:line ~ra~da. 'Ihe RE!e 1~ C I:P~F·!:~::~:: Is!C~~ CONWENTIAL-CAT~GORY I: MINNESOTATOBACCO LmGATION component of this franchise could also find more asractiveness in a mainstraaa~ trademark brand oeieriag the perceieed strength they are after. The project would consider positioning a brand at the mildest point of the Mild/?oplRodern, right under Export "~" Ultra iight~ In product terms, we would assess regular and king size lengths, likely tar levels to he i and 6, In vis of the new ISO measurement practice, we will investigate a pcssible larger Cap in numbers, du Maurier, because of its mid tar, androgynous image, appears as the prime trademark to carry this new brand. jut player's will also he investigated. Sackaging and other marketing mix elements would offer consumers the image of a popular mainstream trademark at the right strength level, Xs we are developing APOtiO, we will monitor Excc:: "~" Ultra Light very closely, This new brand might be used as a barometer to assess the potential of our project, ~lje ~ebtua~ 24th, 1989 Irl ·:POF·::·:II~T~ CCNnODIIUL·CRTIGORYI: MINISOTATOBIICCO LmG~TI~N C I ·?· ·· :jCn* · " · ~ · ··· ·· -· . ·; ·r : i ; =' "" "XT~ .·: ' "' ~-:- ··· : Li~n_i" ·- " I .' ·~Yi'~~C=:D?i- "-· ..Y- '· ~· · .. -· r-- ~..~.~...:~,.~.n.~· s:· ,~~?g Ep-· ;;~:-t·~·f ~ ~.~~. L· ET~A: ' :;1~: I~'. ·CL -C "v:;ru;,~,? r:· 1 - *=·~ r~;' " ·'' Y~I~:~= ·"~ :t: ·-; s; ~' SY.Uh I;.fry.~_r. r ,*u.,, zl, ,,;sx~: ":f"f ~IICPI·~~~~ D~ ~: c- rl~~) h .L * .r ; r , -·v~~- ---·· ~t -- ~·· =~el.i~. o ~.ci-~~aC~&~· ci t·r ~+ ~-~~·YI "'' ""~ " ~~'-~Lhu,:~.=~:~;c7j~ ~~~ :e~, :~.:2-··: uilBI _~·~= P:~lr!R;,~t·=;c5~~~p~':. ,~:-·~u-~. ;·- '' ~~~"IW~·~Lir ~F i-r ;:~ ~~·~~·*ls.cA~C ~~~Jt~~CLI~;·_ YC-~: _:Z ,. I ~)E~j P~i~l~ il~ ~ '' ~a ~a ,, P~i ~~w~ ·'~:;e : '--7"rl~: :R~~Y~~.~~42 c-· -·~··--; -; ·-· 1~i~ I F~4:r~·~c~ ~ '~~ISf~~ybg~Crl ':~'f"L;~~I~~; r: r Y ~; dr~tiq~)~ C C~ij4~ e;al~l Y~( 4~ h~L .,:. Iv L~~?LW'Pr~~ ~·: c~:~:~:~:~:~:~:~:~~~;~i_~,~!'\C I ~z~alr~ ~~~t~~j?l~:~·~: C'' I 'b~i ~~r;drs t,Yb ;r'h ~uiVpiri(~lPr I C~-·IP~:~~I~X~?:- :~E:; C:YTt· I;~ ;b3;,~i6 t~;~V4Qi *IL4~1~: ~V~-~C~C=C~~ ~Y:l~; h?:~; nl:& -~n·: ~?c~:~~;~FY ""~'T~~·=n~= i'. L. .' ~~ dPL :~t~ ?C~~BC ~'(S;E%~ _ .jTr ,Faris;~i~, ,tL"·'C :'~·~~Pi~r;~~~ ~svr~X; P~s~qg ·'~; $: TC~ 'd~t:a~u·C~CI '7·xr~~X ·· q~~~7L~:rl ~ W~c3C~d~"~: u! ... L~~'~nid : ,le ~-, ·~~I~·· ·· *·~~~;.· · ·~~.. "a~ J ~ ~ ·~*· ;· ·~ .· ·, :" .P~·~ ,· " "''" ~5~ L~C .. ~. "'~ ·. ; * " .. : .,. .. :~. ·e ; '' - ^ "' I· ·· " · " L', `" "' I ·· · ~~'~·L~· " ~- -: --~ ; ,c. ~u'~ ·c". "l~p,~ig\' :·. ' .1_ I-~·I·-.-· W O BI~O Corn~L ~con t rllEomTDalcco ~e~nol ClibPDF - v~~fastio.soni __ Project CRUISE THE OBjECZI~lr, OF FI1OJ~CT eaUTSE is TO I~V~:IG~TE TI~ :OT~i3Ti~U, iWD DEV"tLOPElENT ~CR k U,S, BLENDED PROeOSiTiON ~OR ST~iil iN CAN~SA , The share a:' U,S. blended products represent less than "s Of:ke Canadian market. A variety of projects, including S~uY and PL~YE~'S SECiAL B3TO, has demonstrated t;lat a significant taste barrier exists amongst the mainstream of Canadian smokers against non-domestic products, Any short term activity in markecing U,S, tas;e·types will be limited in potential, There is however a body of evidence which suggests that a small Group o: pre~omilentlv younger males express a strong interest in smoking U,S. cigarettes, Consumer share for these products expanded fron l,iS in 1981 to 1,6% in 1988, Similar!v, Glee represented an increase from l,j"s to 2,0% a: the share of switchers in:he;as; two years. Additionally, 4.2% a:' smokers, that regularly purchase an alternate brand, nominate a ii.S. option, Clearly, the numbers on an absolute basis are no: large, Nevertheless, i: the trend continues, this pro~uc~lma:ke: seaent will represent a am~eti:ive P?FertunitE· in the IcnF term, Thou a:F bier ~Ecr~l :nietenal ~har.r ~lcoL~qa :bl O~ adoption of i;.S, cigarettes. We predict that gcvernse,:;as BATCO CONFIDENTIAL· CATEGORY I: MINNESOTA ToeAceO LITltATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 ~ duthcrities will increase tobacco ta.u rates in the rrinp and significantly drive up the cost of cigare:tes. Iro~ a price poilt o: view, U.T. cigarettes purchased across the border or via other channels represent a significant savings. we would also envisage that future trans·tarder p~rcaares may slowly escalate with free trade and inherent smuggling of l'.s. cigarettes beyond stated maximums will occur. I: this nateria:ites, it would slowly encourage smoker acclimaeizadpn to G.S, cigaret;os, Prcjed C;1UiSf will prepare us for this ePen~ilaliry. )2t t~is time, it is bifiic~~ to isolate the specific parameters of the project. we haveclear legal access to the Lrlhoro name in Canada, Given the awareness of this mark - in excess of 70% - larlboro will probably feature into the Geveio~ment exercise. The Came! e~periencn In Thunder aay also sii~es;s that a product offering claiming U.5. credentials should tave all the c~arac:erization of iunerican products, Lco:tingll., we would anticipate the use a: soft cup packaging as well as U.S, tobacco hlendir.g:apahlli~ as necessary requireneneg, if the ?roject comes to:ruit~oa. The Prcjec; has a me~wn level of priorig and we envisage a test market ittrcCrc:ion to occur around the feginning of L~ust in i990, ~;lje ~ejrua:~ r6th, i9a3 BATCO CONFIDEN~L·CATEGORY I: PI1INNESOTATbBACCO LITIGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 r ~I W O L*i V· Os P BATC6 CONFIOMTIAL·CAnGORY I: MINNESOTAtOBACCD ImcAno# Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 Project DAY OBJEglVE PROJECT DAY wLLt EXPLORE POTENTIAL ALTERNATIVES M CONVENTIONAL CIGARETTES THAT CREDIBLY OFFE1 THE ELEMENTS OF TRADITIONAL TOBACCO PLEASURE rJITH A GREATER LEVEL OF "SAFETI", The first wave of consumer research assessed 5 potential concept: areas directed at improving the perception of cigarette safety amongst smokers, This assessment isolated one concept predicated on "extensive tobacco treatment" as a universally credible and desirable approach to alleviating smokers health concerns, It's broad acceptance was based on the perception to be a new approach which retained the desirable benefits and smoking characteristics of current products with an agreeable trade-of: in taste and satisfaction, This wave of research also confirmed the consumer liability that is inherent in R7R's new Premier, This competitive offering was perceived to be too technically advanced and artific;al in comparison to the simple agricultural basis of normal eigarettes~ Smokers were also concerned about the taste of Premier~ BATCO CONFIDENTIAL· CATEGORY I: MINNESOTA TOBACC6 LIGIGAlON Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 :~e [ai!ure of P:aier is a reflection pi rle untenable position grientltion· It seems quite associated with its development clear that the feces of RTR'5 as well as same ct a~T's internadana! eiiores is directed toward the deveiPpmen~ of an kni!e this goal is a larlable one, ultimate, ahsolu~e solution. i: rides:e?s praciic"l consume: needs acC ~ea!iv! by empha"iling scientiiie :~riari:ir and develoPa~ent died of eansurers· The rescl~ is a radical, teeh?oiogically 24vascd rmoging hvice th,t toes not re;dn the familiar cigare-:b heneii~r sought by ccnsumers· Our approach to 0~ recoqniles the aSove and plans greate: ~phdsis on evo~i~ modificationr thct retain the positive characteristics a:. cm0king· HiB:his pers?ective, We e"visage tbar p:cjecr Dbl mav result in a setier pi successive new product id:oduc:ions through 13e. Each p~ly Fill either an~ tec~micar clpabilitY in the r~orese~t the latest development ca;sge;ies or respond Selective elirintlon of smoke com~cne~e to;ew external c?nditions of a hea'..h ~rieF.~ed naturt~ s elanpie of i~e latter is the Fcttn:ial e~err'ence di CO as a probla.oBT"ily hr may arire iol!~ing me decla:alion of ~hi5 inqredienr~ an cigarette pac~4es, mis would be a Di9 prcDcl!ti" ~E~eve:, ~iven:he poriiik i~ediacy ai ~ir siaar!on, i:'i!i be dealt with under a selara~e pc?e'. IOCO. Our Brogr"" i' the technical eq!ora:!on ride of Da is .rccesCia~ ra:iriicro~ily ~ Y~'ie~ oi e$!o:a:o~ prsc"lsei C~ BATCO CONFIDENTIAL· CATEGORY I: MINNESOTATDBACCO LI"IIGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 ---~- are being e.u~ined for precursor removal and the eventual reduction of biological activity. Assuming that we are successful w!In ;'I the tobacco treatment component or' the program, the second largest hurdle will evolve around the re-introduction of conventional tobacco taste - a central component of cigarette smoke that is also stripped away by tobacco treatment, Based an the arrent timetable, we are probably two years away from the commercial application of this process, The priority remains relatively high. We envisage a capital investment decision to he made ~n 1991 eolloving brand ccnce?t Levelapment and a possible test market in 1992. This timing falls outside of the current development timetable. AC/jc February Zft~, 1989 BAICO CowoEHnaL C~TH;M~Y I: MINNESOT~rOBACCD LmGATWN C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 C f r~ r W O W (JI 03 O C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 FINe CVT P~ANS Match 9 Fine Cut Strategic Update (Delta Hotel) - overall orientation March 21-22 Overall Marketing Objectives and Strategies. (8-4) April 10 Fine Cut Strategic Update (H-3) - branded orientation April 24-25 Review of Brand Plans (8-41 April 26 Projects: Priorities and Definitions (8-4) April 27 2nd half 1989 - Resource Allocation and (8-I) Schedule Planning. April 28 Definition of Information Requirements (8·4) May 4 Review of objectives, Strategies and 2nd Half (H-51 1989 Schedule with Marketing Committee Calje February 23rd, 1989 Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 i b 2 W O ~pl U: 0\ \D C BAtCO COlnonmAL.CATEGORY I: MINNESOtATOBICCO ImGATION C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 ---5---- Project SFHE Project SFHE THE OBJECTIVE OF PROJECT JANE IS TO IMPROVE OUR CORPORATE SHARE WITH SLIM CIRCUMFERENCE BRANDS AT THE MID TAR LEVEL WHILE OPTIMIZING THE USE OF AVAILABLE RESOURCES, The current forecast calls far our very low tar entry (Natinee Slims) to be twice the size of our mid tar entry (Avanti) in l992. When comparing the size of the very low (belcw 5mg) segment to the size of the business at the 8 to 12 level, one can speculate that slims are currently underdeveloped at that tar level. We have, in the recent years, invested resources to try to build slims as a credible mild and female category of cigarettes, different from a purely cosmetic special occasion use type of product, In a post C-51 environment, with the end of advertising as a mean to build imagery, slims represent a clear image statement for a mild female brand offering. This Project will explore possibilities to expand our presence in this category. The re-staging of Avanti is the first opportunity to consider. This off-spring of du Maurier is well positioned in strength terms. Current information leads us to the conclusion that it could benefit from additional du Plaurier trademark association. BAICO CONIOEKML tTEWRy I: MNNES~ITpBICCLI Lmo~mH C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 du Maurier Special Mild is an established brand which pioneered the Mild/Femalelaodern brand segment, t~t could represent strong leverage for a slims entry, Thirdly, the trademark Matinee offers the very credible image position of mildness and female appropriateness, it is a logical candidate for a higher tar slims which would complement Matinee Slims. This Project is schedule for possible launch by late 1990 or earlier, if possible, ABlje February t4th, 1989 BATCO CONFIDD(TIAL. CATEGORY I: MINNESOTA~OBACCO LI~GATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 i /r· CI~ O ~I 0\ g 1~ Bnrco CENWLNML.C1TECWYI: MIWNESWTOBICCO LmOlTKIH C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 Project IX]CD THE OBJECTIVE bF PROJECT IdCO IS M EXPLOIT THE POTWTIAL EMERGENCE OF CARBON MONOXIDE RS A COMPETITIVE OPPORTIRJITI~ The perception that CO is believe0 to be one of the harmful ingredients in cigarettes has sloxly escalated to a level of ill of smokers, while the unaided awareness of Co is significantly below that of tar and nicotine (jl and 57e relatively), the declaration of this ingredient on the sides of packs will enhance its prominence~ On an aided basis, 353 of smokers bye heard about CO in cigarettes and, among this group, over 18~ believe that it is mare harmful than ta: and nicotine. Na hehavidural data is available at this time. However, the circumstantial information indicates that a group of smokers (size to he determir.edl may he inclined to switch due to CO. More specifically, there is concise documentation on the effects of CO in the body when it combines with hemoglabin~ The affinity of carbon monoxide for hemoglobin is 200 times greater than oxygen and tends to reduce the oxygen - carrying capacity of the blood. Carbon monoxide is slowly released through the lungs during the night and does not accumulate In the body. BAICO CONRDENTIAL· CATEGORY I: MINNESOtATOBACeO ImGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 Hcwever, in the presence of smokers with heart disease, where the oqger, sc~p!~ ~p mlrccardial tissue is alreadp irr,paira, the intake of carton monoricie may be an aggravating factor, This would constitute a key target group for a reduced CO product~ If we take this analogy one step further, the indirect promotion of CO reduced products for smokers with car~iovasalEr disease could be achieved by publication of subject specific articles in medicaljo~nals. While we know that doctors will scoff at the notion of smoking, the early histcrlt on Eledalllon is an apt demonstration that they may recanm~end this product variant, if their heart patients insist upon smoking. The process of CO reduction is achieved through filter technology and ventilation, These are non-pro_Prietarv_ enhance~e~ts~ cie would therefore anticipate that the branding for this Project will not be free-stan~inP and will, like light cigarettes, t·~e advantage cf pre-existing t:ademark credentials for market sueeess~ As a conse~ue?ce of the shove, we will plan on some ~:eiimindr! product e~cplara;ion at 3 tar levels (re?resenting our 3 trademarks) t? determine how efficient we can aebie~e CO reduction while preserving the smoking characteristics of the cigarettes, BAtCO CONFIDENT1AL· CATEGORY I: MINNESOTATOBACCO LITIGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 Coincident with this activity, we will also secure data on the potential magni:~e o[ tie swilchiq behaviour due to the declaration of Q and determine the resultant demographic characteristics of these smokers, If further shor: term activity is warranted, brand development will follow wit:: a possible target date of August !990 for test market implementation, Project LOGO is i direct personification of D~Y · a project dedicated to t~~ selective improvement of cigarette products on perceived heal::: and safety issues as opposed to one single solution that attempts to represent a panacea for ever7one~ AC/jc February 21th, :989 BA'ICO COHFIOMTUG CITEGORII: MINESOIA TOBACCO ~neA~oN C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 .,.. ···11' · ··· .~ ..~ i: .. ·? ~: ·" : . ~· ~ · ··~ ~· , · . ···:·'~·":'·: · ·. .'..C"' '..;. ... : ··... r-·."l...·-.'~"':" ..'·. . "~ ··' ··---' :·+ ·:· ;~ :· ·.' '... · ·r rr-··..· ·"~~·.: ;·. . ·....'.~. : ·II· ····-··*-··*-~-i ·~- ·I.·::·t· ···· '· · ; i ...· .· ...... L:· ~~:. :i :; ~" i .I. :L · ':·' i m··--: :~·~·~ 1: .. .~;-.. ·4 ··~~"' : : ".~,~ .~~-ri::··s~~:~.'~:~t·r~··· ·I:- , :r:C~~~:::~3.~*. lii?i:::)·~!·.(··- ·-~~·. : i ·~: .1. , ·'.3'·..·.'···· ·:- ..:. ., '··....:..'.·. 516· ··.,~· · 'I··~...'' '~··I '·''~.n·:r·':~l · ····~::r ·' · :· -·· "" -~Z,r~ · F~i-2C.i 'iE ~s-.l· ~tk ·:-.·. ·.··- : '· i "' "'""' ··-·~e··· -·1·~···~-!:--~--· · ··-. ··m·· ·-~-I-: ~'*'-'"-C·l" "''~~~"-~ 'i···- ~?T,3~ii~i~' :~I~I~R· I··· L·i~·L:ilii · , ri :v;l ;~ ;; ·*· ·li-· ':T ,· :,i~'~''Y ··I·· ·;:··;.;:.·:· : ;· ·~~:·~":::"·:~:··:~r;**::~;~'~r '·:':·::: 'v· ;:·::;,~:.···.;···.;.i -I-- ~;1*2~·~*~:~;;··p::·;·~,' c~; 't.:: ···, .'... ". I".. ·*..~, ::~:~::·::*. :i-·c~i·~r~.~3ii X-*:!:. ;1;...1.. ~.·~.*1 c... ·1· :~!j·~;5 ··~· "'';:t.'~I~~ ". ·~·.'t· r: t~:~.i·,~~·r·~:·n··: .. r, ,,,·· "" ·· ;''.~L~~4T3e~ :·,:~.:i·~···:~.i.;u.l~ ·Ip ·.. ~:1*,· ,:· ~' :· =~ ti ~:: ..:t·r:xi~~·' '~·s ~C~~i~B ·· · ····-~-.· n~r ~~~ ·r~l _, ? ·-··"~1~9'~"c~i ii"": s;~q ?r ;IZ II· II I ··~· ''- ' .... I .:1. ""*: "".*.'$~` ·' :Lci"·;·~c_,., ~.:; !..~·:··~ ~~2~;-. ;i::···-·· :: --·~II ;:~c;~L~ ~,S,VIX: ---- ~::::~;~ ··· ·::·· -.·, --.; rm~~L1 1'1 ·· i·r " '`*·"·" 'I;"·;*~:`~"-c~c~"~·:i: ~:'1 ·-~.:~ c·. :'·L,· I·~ ·· ·-··.1. -·~ ·' ······ ....' .'..· .i..~ i - i, : ..'...i" ·. ,\ · r :· ~ *'··1'-* ~. '~·.1.: unull·· :, ·I·-·\la · ·:-·~:~· , :· ··- ·-··:···· ... ··; :~~: .. .:· .·s.i ; ·: :·. ·' v ·'; ·:·I- .I ~· .· · :·..·~.. -ry: I· .:· ··· " ':· ·- '' .. · :. · '·"'"·* L · :' l'j Y · · I t~; · .:::: ''· ·· .. · ·.. : . -. .· : · : ~·· ·· : , " ..~ -· · · . · :·:: -.··~~·; -··:: · ...:..: , ···· *',- *:I· ·.': E .... '1; ·~ ·: ··;3 i " ~ .·. ''' ..· · · .·· ':'·"~ '''~" ~·· ··.·-.: --: ~··· ' ·- ·.:.. -·. . ··.'1: ., · .· ·' ,,.: ·~ ..... ,..·. ··- · · w o vJ vl e\ BATCO CoNFmENna.Cn~coRvl: A(PinEswAToeAceo Lmcn~on C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 Project MONTY Pf3JEiT MON'1Y IS TO TAKE STRATEGIC ADVANTAGE OF THE J3:CEIVRITJE V~RI~ABLE IN THE CANADIAN TOBACCO MARKET, In recent years, we have witnessed that tobacco cons~mers can react positively to pricelvcilue related offerings j0 for the price of 25 or 51.00 off per carton are examples of campdniel being able to increase market share in a decreasing market by offering a perceived Setter value~ This better value, however, is of a short lived nature as it can be duplicated by the c~npetirion and, in these cases, this was done at the expense of companies' profits. However, recent history has shown that tactical discounting for specific purpose can achieve satisfactorY results while not provoking an all·out price war, Xr,other way of looking at lower pricelincreased value actions in to take advantage of the enormous tax burden that a smoker must support. The idea is to devise products which will have by their hybrid nature the flexibility of taking advantage of current taxing rules· Then, assuming that those products present enough value to a smoker, they can be presented as an interesting substitute for taildnaade cigarettes· "naa Custom BA~CO CoNnoErmAL·CA~EGbRY I: MINNESOTA~OBACCO LITIGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 Cut is such an example where the manufacturer has been atl~ to use a tantlon "loo?hoie" while maintaining gross margins and offering to consumers a Quasi tailcr;Pade ciparette a half :ie cost, The company can also benefi: further if a patent can be ae:li?i for the innovation, MONT! should be directed in the following areas: la Tactical discounting of specific brands to achieve pre·determined marketing objectives, Ih a sactt term discaunt~i~g of'Epecific tailet-made cigarette brands as i defensive measure against any opposition promotional discounting which would affect our share, This form of price competition cannot last at; liidnufac~:ar5 could not survive on the long run, Heavily taxed pret~ts are such ::p.at it takes a lot a: profit cut to bring the consumer price to a desirable level, fidwever, we have :3 face the li2ciihood that this type of competitive action w~l re-occur and we need to be prepared to retaliate. i. i\ fon of lower price innovation which will not liena~st car profit margins by taitfng advantage of the taxation rules as they ire currently written, BATCO CONFIDENTIAL· CATfGORYI: MINNES6TATOBACCD LITIGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 3~ Develop and tee: different innovations warranted it ~h tuc rules should change. The overall objective of Illaximizin~ corporate profitdoili;':' should Prevail at all stages of development. ~lje ~ebrua,nl Zist, 1989 Bnlco CONFI)EN~UL· CIIEGERY I: D~IIESORTOBICCO LIFITION C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 o vJ z" BATCO CONFIDENTIAl· CATEGORYI: hdlNNESDTATOBACCD lmGATlON Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 Project: OMEGA TrIE OBJECTIVE OF ~E~i~L~ ~~GX fS TO ~iJSVi~E Th~ i3NC· ~vi DEV"JIOPMENT OF ~I~TI~ F5 A TIiiilD 'JIBLE I'I~ T"N~DE~I~i k'I~ SPECIFIC RELc~NC2 ~O ~C~, Harket share trends clearl:t illustrate that IT~'s tr~clarlt portfolio has diminished from S marks of va,yinS rel~?ance down to two - Player's and du rcurier representing 80% o:'our business, There are Icg term strategic advantages, particularly in a pest jill C·ii environment to ens;L*! that we continue to develop and e~-livate tradernark assets which uniquely represent t~e 3 major positioning areas: i) full flavo~ed, Hcuthful masculinity ·?!avo:'s. ii) mid tar, ~P.~O~CUS, cont4mporar~ ~u;lit'l - du Maurier, iii) qualitative dld~tss for women - Matinee, Project OMEG~ is OesiEcl -,o capitalize on the pre·esis:ing mild-female Image of ~e ratlnCe trademark as the foundation for its rejuvenation, The program calls for;;iiulti-faceted series of acti,..:ties: i. Reposition narice?'i~l!ow as a vibrant er,t~ at :~~ 6·l~m~ tar level ajm,ngst ~cnF females, O BATCO COnnoPrm~~TEMAYI: ~INIIESMATdBdeb LmGITIOH C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 2, T~e establlstunent of uni~ue product image credentials associated with qualita~ilte mildness and sensory pleasure t:zar is different from the mechanical tar reduced c~aracteri:ation of off-spring from major trademarks. 3. k-orlentation of current marltering support programs dedicated to long term trademark building as opposed to normal pasitioninc~mainra!?anc~ , The priority for OMEGA is ve~ high and a plan for the ~:~et Yellow repositioning to he introduced in dune of 1340. AC/je Feh~z~r! Z!st, !989 BATCO CONFIDBmAL CATEGORY I: MINNESOATOBACCO ImGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 I~ O U1 h II O BATCO CONFIDENTIAL· CAtEGORY I: MINNESOTA'TOBACCO I~TIGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 Project SATIIRN THE OBJECTIVE OF PROJECT SATURN IS TO ACQUIRE AN UNDERSTAMIING AND DEFINITION FROM A CONSUMER PERSPECTIVE ON THE ARRAY OF PRODUCT TASTE, SENSORY RND Pb"lSICXf, CHARACTERISTICS THAT GIOUbD APPEAL TO AND CREATE PREFERENCE wITHIN VARIOI]S SEGMENTS OF THE SMOKING POPULATION. Relative to virtually all other package goods sectors, the cigarette market is distinguished by the absence of unique product segmentation beyond physical shape, form and strength. i.e. filters, K,S,, Slims, 100mm, etc, The most significant product specific diversion has occurred through menthols · currently a declining older female segment. Historically, strength or tar level represented the primary means of product discrimination. Unfortunately, in today's market, this attribute has diminished in segmentation value, we have a situation today' in which product differences between brands within tar segments are more perceptually driven than real - product uniqueness that is very dependent an image conrmunicatlons . An area of product investigation that has evaded a meaningful solution for some time lies in the area of reducedirrita~ BATCO CONFIDENTIAl· CATEGORY I: MINNESOTA TOBACCO LITIGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 and a better aftertaste, About Ij~ of smokers express a desire for this form of product Improvement, While menthols deliver on these attributes, they Co not represent a desirable e:iuct option for the majority of smokers. i~n abilit7 to tao into this form of positive sensorl modification would eater to the e.upressed needs of a relatively large group of smokers. ?hase I and Phase I; of the consumer research efercia were able to answer the two main areas of investigation covered b M~Ua~: i, To understand more :u!!p the "why's" of new groduc: acceptance as t~ey apply to cigarettes, t, To determine which new products (tastes or k-~asl have the greatest appeal to consumers, G2ne~al conclusions are: I. It is difficult for smokers to accept new flavours which differ signifieant!H from what they currentl~ smojre. 2, The possible benefits which might convince consumer; to adopt these flavoun are laostly in the area of an "ameelooated" smoke, iuture development for S~TUi(N resides in the product area. The main parameters for development would be: BATCO CONADEMIAL-eATECDRY I: PnlNNESaTATOBACCO ImoAno# Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 ~~ ~.. i~'l.~~li· ~uLu·~-·L. · clean taste going-in without losing tobacco tas;e, - no aftertaste or "fresh" aftertaste is acceptable, ~ aromatics acespt~b!a if lokcts' hody odou: is not significantly altered, rapidly dissipating Pete (cf, ~S1), S~ITLfn~ is not likely to leaf to a specific market entry vl:lin the nex; three years, iicwever, i: is to be pursued as a impor-,ant leaning e.veroise on consumer taste behaviour ed p~o~c= development, FBllc Peb~q Z(th, 1989 ~tco COYRDEW~L· CnTEGDRv t YIMre~a~e~eco Ime~cM ClibPDF - v~~fastio.soni II F i3 o ~ ylOlUTO~YIIIII aal~-~n~ O ip;i :;~~1~0 CsCOUrml·Ca00RII: MIXIROTLTOB~ECO LmblXN ·__ _ Project SPVR PROJZCT SPUR'S ~BjibIVE IS M CISltflF. TRE COMPETITIVINESS OF TXE PIA?EA'S TLlRDEMARK i~NO THE KL"f BRANDS~ The Player's brands are experiencing problems among the key target group of Bales t25~ Player's light's nadanal share among young males is around 19~ in 19BB which is down from a peak of 23% in 1481. This decline is pronounced in the West share among Males tZS is now where Player's Light's consumer 12.9t, down from a 1983 high of 311. Player's Wltra light's share amcng young men has remained around 3.0$ while Export light, Extra light and du Maurier Extra Light continue to show good growth. Burthermpre, Player's Extra lig$ is not picking up player's Light's uiteh·out· n oajor cause of the Player's related problems can he attributed to the [ihreslass rumor in Western Canada, although there are other areas Of conce~n, specifically the player's taste character and the perception of key members on certain image dimens ions : i. Fibreslass In a quantitative sFUdY WB conducted, We found that over lot of people under 15 associated Player's brands with a tihreglass filter Examining people who Sad switched brands C I:P~F · !:~::~::ls!iio~i~O CONFIOENT~L CATEGORY IIMINNESOTP~TOBACCO LITIGATION due to a fibrep!dss rumor translates into a 10~ market share loss for P!a'trr's liBr am~g smokers (15 in west·m Canada and 134 far Player's brands in total. 2. Taste Historically, the player's taste has been synonymous with a certain level of harshness and irritation. St is possible this taste character is no longer relevant to youn~ consumers~ Cur Image data reflects that all Player's brands have a lot of taste relative to their strength levels, iiowever, the SrznCs young people are moving to - namely Wrport and ~e ~a~L·ie: do not: have this r~gnitude of taste bonus, Perhaps young consumer' taste preferences have changed and ~l~ouFh they believe Player's has a lot of taste, it is iii fact a taste character that is not desired and is rej ec:ed. 3. Imaae Tn the first wave of slvl! research, a hypothesis put forth suggested that Player's brands were "at rest" while Export was "in motion", This distinction was largely due to Export's new packages and advertising which resulted in gains in modernity, u;-ta-datcdness and sophistication, presumably, the upcoming RUBY change will aggravate this; condition. ~;so, SiaFe:'s Light experienced declines in perceived levels a: masculinity and strength in image '87 LI~ which are nc: desirahl~, vJ BA'CCO CONFIDENTIAL· CATEGORY I: MINNESOtA~OBACCO LITIGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 ·_ :ience, in order to respond to tjlele concerns and tierejy satisfy pnjec sPUa's overall objective, ve will he conducting ;Le f~ IlorJlxg: i. f3reqlass: co~n~hicationr efr'orts, potential chances to t3e visual apcearance of the cigarettes, quali~ er~ancernents , 2. a ?rcduc: tes;lmappiq exercise to assess the rt!e~E~ce of t~e ~1Fgr's taste ebzraceer versus the opposi:lon· j. researching pacl(aging Iwdiiicationr to supper: the ha that :IjreSlass is ne leger a problem as well as to ~e e;opetit:ve on youthiuhss, mascdini~l~ s:rer.F;h and ;acternity· Ccr s:ledule at tS!s pcint calls for a slrm test mer:ue~ in the sec3rS Pua~'cer of 1990, The problems created by player's Extra ii~~'s lach!us%: ee:f:~anc? in the 8-12wl range and its Indoility to cae~ure i!awr's light switc~·ou: will be addressed under a different ::ofeet · TaIDENT which is discussed separatel!,. ij;je ~~'s~~.y isth, 1989 C~ BATCO CONFIDPITIAL· CATEGORY I: MINNESDtATOBACeO IITIGAnON Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 g I;j r, rl lr) 3 yi VI U N BATCO CoNnorNnAL.CATEtORY I: MINNESOTATOBACCO LITIGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 3roject TRIDENT TI~ OGJ'ECTIV*L FGa tRCjECT TRIDENT 13 TO ifi~.F5 ~-~ COEfPEIITIVENESS Oi 1~Y~'S AT TIiE tIIiD T~ i~s~L. Xs stated in t3e :r:jec Ern discussion, ~la~e:'s ~xaa Light is not Eulfil~line is ;o!e In pick!~g up ~ccS male business leaving player's light ac: is it ~o~~etitise ui:l ether brands in the MiidlFopu!r:llcda:~ segment, sines 1382,:~e segment has more than doubled i.: sire among young males, f~cm i.7t to 15,8% in 1988 while Player's Extra Light's share:2~s remained virtually unchanged - i: was 2,7% in 19e4 and 2.4e in 1988, 5Qe gains hive been eqeriencd blr Export bi~t, ~x~ori "A" Lu~a Light and, mere reeentl4., bH Cu lac:ie~ Extra Light. E~:oject TRIDENT will thus look at having a ?!4er's entry participate in this pw~ segment 5H ez~~i7~ initia:l1: two development possibilities: i, modifications to i~layer's Extra ilgh-,; and i, a new brand e~trv. T~e former strategy woui~ be our p~?fer:e~ rctle, however ~laver's Extra iiSt: is still growing aac~~ jaciccrs ii-4; and ~a~ica; modifizjti~es ma!: net be desired ~~ :~lse s;skers, BATCO CONFIDENTIAL· CATEGORY I: MINNESOTATOBACCO LITIGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 ShouY a new option he pursue~, we waulC e~ect it to te 12-!3mg tar (ISO method] and to have a conventional tobacco bL~~. Its cL:rc;eriseica ui~l become clearer as we begin develP;-a~ work among the key target smokers. At;his paint, we are planning a test market in conjune:ion with Prajec-. SPUR. As we how more about ho~h Projects, this s:rl~ar;lr may be reviserf, Cj/je 21st, 1989 CI I:PCF - ~ ~;·~::: la~TCofl~ CdNFIOENnAL· CATEGORY I: MINNESOTA TOBACCO LITIGATION __·_ ·· ·t \· ~·1 *' ·~ !·11··-1 :~~"· '.·: ~· . ·, .· ·'. ''l'r'; I·.. c·"I. c.,·r, . .I,~....~.., I,, I~ ~··. ... ..,1.,.. '' ·:~ :jl' .. ·: .e ·· ' ·· ·:. '' '` 1:··I·· ·· .:· ··l::_.t. ·...~;;;:~:i;:···:L~.'·(:~~-r~l··~CI! 1'·· C · ::·~-~ · : · .~ . ·····.-· .·;: ~·.~ "' .'.:. ,:;···....·- ·.: ·';5'.·:,':j·:':. 4~· : · :i.··. i ·: - ·~ i: :.-·: ~~·.·~ !~''''''~"-i:: u.. ·· · ··, · -.···· ..~.~.C II- i*. : .;: ~~rp: :·I--:::·-.~~iI·I· ·:-I-· ··-·: --:-=:jJ:~;:::~:~:.::::'.·~·~?:~I~.~i ·~:~.-:ir ~~~ ·· ··;-.:~·: ·~·· ..~ .. I :· · ·L_: _____·r._~; -!·li-L ·:F·:C: ~ · , · ; '' '''· r..~ · :`· ~:s.~~T~"·~ '~" :: ··· ·.··· ---· '-·:i-..,CU:*·· -I-:-~j ::~~~::~~::~~_~~~: ~~ ·- ~· ·~~~ ··- ... · :xc··· ··~":.~: ' ' ::;~lte~T ""'·'' '~:'"'"""'~L~" CI '""' ··t· · ··: :::I:~ ·.· u.~·· ·-·- . .· .·~ ···~i. '· . 1~:: ·~; ·: I ? . ·*.·· ·I1l11· ::~l.~;·i?-*: ·-I :-·:.·l::·i~:(l:. .; ·~·'. 5····UJll:·:ll~:' I- ··~ ~~· i. ' ' '.~'.'r·I~~~·.··~:: :··I.. ~c~·~E· ··' "` · .·, .·k·:l.l~l. .i?.r* i··.·. ·.~ .~:::::'~i -·i:-.~:i: · .,... ~ ··;-,I:, 4~~i·: ··-'"... L.:~n· ili·· ~;-·~' :I·.~:.-t:~'?":i:* -" :......··.~··~~~ :~~.s ·· · ·.~. ~;·.;r .~:·;· _·.····~·· ~;~: i'; ··~.·c..-·i.··i~ ·:· · I. · ·~j·;· · ~~~~~~~1G~ ~ ·'~".u`u7;i~·`:··~ VY Jl~j·l·l·j·;ir~l 1~11~ ;~c-· ~ I·.:n .,,:.,: a. C.~L~·II.:~· ·· ·.. ·,I ;~.~7'~nt~~c-.l,~c~~* ;="~f~j"?i.·~~:-i': ·· ··..,I.· ··L~i-·CI ~1· PPI·;· :~·.- ···· I~C·~ ··k'":': ~. " i* :*"r.~:· . ·. nr( t ~.p· L.C ZI ~·~ 1 ···· ·~'-~"' H:. ·1:-1.··· ..''. 1.:·.=; IZ' ··'·' i. Lrl·il ·-1; · ·LI··l· I·.·I· .. ~~I: I~ :. ....:.,.: ._:. .... .., ····' '·· ·· -. I ·. .· ~·-..· ;···· ·" .~ ''.-~... ·i~:-::· ··· ·.· ~I:,,· ··. ;*.' · -· *..·~.'; ·· .. , .· ·.·' ·* "'~·' ""~" ·; ·.;.~~· ·'' ··' ·' '' .·i· ... ··. ,· ·. ·~·~-*· _~··;:· ~·~ .· ·'·-:.~ -···:·: ·-:;-· , :: : · · ~·;·I.:, ':. · ':..·. ·· ·: .... ·· i ·. · ·;· · · -. .. ·: ~. .. `···:-: ... ···· . 1 :* "' "~ ~" ` ··~ .'~'si.i" ..·.I :· · ., .·. ..· ···1· W O cF1 ·VI " ' . VI 0111 CowaN~L. CATEGORY I: #NNESOTA ToBACCO LmeAnoN Prolect ~SA ?~~C~ ViS~ ASDBfSjZj ''' *l~rlr*..c· ·~t ~~~LC.U~,.: a~;~iXPS OI ~; :e·~~·t·** I-.-l*3l~pS cao~ sec:;; ~ 1., ·-r.; C L~~13Ln~li~G;jLEICpi ~i~lT~S?C~~ "". ;ni~3 ""t oppor:E!~r ·- large. Smo~e:s ar? LI. SiC? I F::~C:.s 71:9 ccn;:sat·~ v~~4 acsi-snckine i:tss~:? or. an cVer Ilp-.:pl Cli Slois. Our sIZI&e ,,il -.·~.·.3 ;t!~ social EOPCCI~J are PC:t ~... '·· lr'2 ::egolt!p scntioacC 16 "'""'""" ms3ect to c~Fare::e ~1JllXe3 I-II C1· tPOk!~, ~araoe~s oi plrm lci15, ·oq Ig:~ I, Iltn to 7i5 in 'Ba frem ~rJ i- '..~ ;:dC. ~'*-:1* .· .I··I--, Of thoSB oaoka:s, 1~ now ocllcVe lasoiPo nPtire is one cf t~e In~t pprlnne k~l:rl -'- -~r~ r*.,*yJ *,,,,, hazarCI, Xhcst hlli Or' I:' sPclerr :·· conirontrC u,,; ,,, I., "iLr ;e~~:ic:iops !e ·~? vc:~:lta, C** sF!ce of' :~tac sccai~e~r l~bllzeanrt~:o ba=:El, Ui i G; ~ri,n ail! ~IC nc~:e ---- -----·~-~ e~japablc. ~ ini:11! vive o '""'--. frCi,p··-'*' a rsdue~ ~:!e strip PrcQc= voule ---· :; be a Ima:i ~,~n so;·-'·· -· ·r·.·*· Le was pc:ea!Ped as a hCep iD the right ~'`Or-:.~ Iii ': :can gC;CtiCD '- Il·ll·l*Y.I- ZOi 3 31iP:1 Cv II IOC+1i o~0P?tnt, ~YCvt:, C=::: i:=i:i;atcd oppebf:ica ac::ti;p 13 t:Zis area, 1 *JC1:?bCr* I'I'~h~ fOT ~CaCOd Oife "'"'" 3rc~c:s v::i 1! ·-·-~I~ )LS=: -- dca:opl= ;~c~ ·1.31*,. C~ ~111*1·1::.1·1'5*.: ·. 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Sc :s~~i:zto~ in sh2 ~~e~~ii~~ mcat~s, ~~nce, 2i -,~e n4ceC ;ii~ s:r;e 5tnS;cmea-. rilCs 6:wn, we wil: c~ec:a 2~ BTiL:i:el~ I?~i F~15? :i;lj:l ~~?cr;:;:~ ac:iv;~~, Irsjec: VIjT, is net, at this saae, d~ir~~_;t :vef i~ s~e~ifle 3:!dUCS !E~L1C~ SU: r·t~ar, its f~c~s is :-2 a:' i~i:ac-.lan ~crhe:I1C. Ic~ ;~'je O uJ 1331 1~ BAtC6 CONFII)ENTIAL· CAtEGbffl I: FdlNNESOTAf6BACCO LmGATION Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 ~1~~11: Lj u: Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 C Ifi O yJ UI