SEC~'- BRAND INTEGRIN STRATEGIt BRAND DEVIATIONS n, o cI~ ro BAT Industries document for Legal Services : Health Canada 21 May 1999 WST~UTEFBIB1R(~ 1) ~LPPY~ Itrltr*: A. 'KEHT will Ifntlll tlr levels It plr18 or l-t q. ·ter· below Mlrlboro.' DevfltIons: Erre~;r r~'I deliveries ire running 3 q. ·tlr· bll~er ~1 tl~ct for both Ks a 1~ Oel·le 5C. 1 onduct iqrovennt ongra his been initIlted with ~mlls for July Iqlmtltl··. Iusosllvl1 Ken KS deliveries 1n tO qr.'tlr' end out-of-line with ttntegy. I noting wet held this Iprll 11 Ilgor~lrll ad 1 nndnct Ironvonnt ongra hot been 1411t~ to 14n·· q11118 end lower deliveries. Stretcov: B. hpducts to confon to Y guidelines. Ocvfltlon~: lif~UPY The blond end usings used for the eonon KEM a ad lOO's en the II u tblt used for um mIIE. 6cna ngulltions do not Illr the use of 81 or I#P using. which 1n l~o~l·t Ispocts of the KWl gufdellnos· They tested the Llm mIIE blend wItb W fllvor, ad found It to be orofernd to the tlcn-amt pmduct. n·r, they ido~d the tUCm mIXE blend II 1P00. mis Ilso I11IJ son blond COnLOlldltloP. is both Llm mllE end KEKT 1n in volun bnnds. Lltzc~ind: The Swiss blend ad clslnps (for both KS end 1PO styles) do not curnntly Include 111111t~·010~· Ho nconLtltutld tob·cco It used. Id stl lad Burley tob·cEo levels In LlgLor than the U.J. Export pnduct. The ET 1I··1 It lower due to the high (Lg) stl level. Dlr·lopat work is II nrogress by the Swiss to rerllco the high ~tl Inclusion with tPtl. which would introduce ~I11 technology end bring the blend within product guidelines. 1 South I~lcl: TLe South Africen blend Is In FllrClr·d rO skewed ad the clsfngs Ire loc·lly O developed. The blend os designed to Itlllze locllly grown tob·ccos. W O BAT Industries document for Legal Senlces : Health Canada 21 May 1999 -2- t) PLIT;r St~tlr: I cMlpetItors-' Ocvl~tfonr: ~LZP3~ W 1' p'lEd It 220 1II os capsrd to th, foil revenue. Piostreu IS eq·tltln dt5a lcl. This dlclrlo· ut PC It the tit of thC ~bt opclllg Id no lctIon Is o·tqlltd- It ~~odd k oPhlrIzod rhd 111 co~nlc~tlon is Id·ntlcll to the l·tc~ltll·ll stl?tcgY d no ·11·1 odd d·rlll is ·tlllzd thlt r·ld d··(grdl Lh~ ~ 1' the highest pried product In the PrCet. Ris pritl·I1Pg his restlltd 1· rc·l·r~d growth Id I ·btol II requIlvd. As with Jlpln. the ~rht Itlllz.z the internltIon.l csll(l to the letter ··slrl·g Cp·S1StllQ. 3) Advertislns Hodevlltion- rlck~si~s No dalltlo·. r\) hntrtn.rp O co BAT Industries document for Legal Senlces : Health Canada 21 May 1899 Locm mm muTEsre olvIItIoMs 1) ecedud Bnt~: ·B· ~lnl Export prodoct uses the very q~t~·· kill E bled f~~·RttP1 redrted Brll ed toCL. nit blend. or loallJ coqltitive derIvltIves. L11 been est Ilcl·rrr *ith the u,l~E· of I's ~llcd 5rooo. II hll-naor krlcr bledd Wm PIP ,P p~ld delivers Ur end nicotine levels. tute epIItude ed other hey ;lttribotls thlt ore 1· line rtth eMpetItioo, DevIltfons: On the rhole, signiftclot Irbt dcrfdl·nr In product pelenll~ 1~ doe 8 the ttl period in ~1~ the bnld res introduced. Splln 1 rirl·1 lieds ore bud on the old Y Stripe bid. ~1~ or IY·r ao~ orduct It the tie these m~·ts IlllcLd LVCICI mII. \me bred L·l been progressive II both ,- Ilhtt. bowver, rrt cootInuos to Iqnre J~L blends ed to bring the closer 1· It·e / I M 11 being c·ldldd to fpll· to 1711.6· foor POtl·tlll iqrovenot c~ldd·I, ~ of ~ld ~6111 Ircr levels of 5plnish 1I11 (1& versus the c·mt 211). BurL1 O·e to ioport nztrtcttonr, lN11 hu developed Its om blend *~rllt. York is II progress to Inprove the blood ed to uke it ere co·rtbrt rl~ the Itidl~r wbere possible. a· Qllcl· IItml-Be bled os ldopted prior to the use of tptL. n( bold Lls Icmd r·ll. thlldlblcos his been sll·ltlng slplcs .sllp ~11· E to develop · Llphts ofhrl·9. Should results be flvonbl~. this blend r.ld Iltcly be ·sd 1· LVtKY PIIL Llpbts uhen l~unchld. bAl tF dcvelopd end uses 1 polC11I I bled. hse·~h Indlcltcs thlt It Is It plrltJ with Cermln MerlbDro. York Is II progress to Increlse nnor Illt·de *tthout tncrelsing h~rshncss. O HAT Industries document for Legal Services : Health Canada 21 May 1989 -2- LUCKY STRIKE S~RATEGIt ONIATIMIS 1) Product. cent. Zln~aPore 4 The blend is based on the 01 Cutterb~snd, BaY's most competitive blend at the time the brand was launched. CPCL was added to the blend about one Year ago to improve its qualtty and to bring It more in line with current standards. 2) e~t~r ZlrP~nr: 'Retail price can be one or two price points below nartbono but is to be In the nut significant price category iupediately below narbboro. In cases where low price positioning can have a detrimental effect on the image, parity pricing with Marlboro should be utilized. Deviations: Inntn LUCKY STRIKE is priced two points below Marlboro. Chesterfield. 1 significant competitor. is positioned between narrboro and LUCKY STRIKE price points. so son nsp narlboro 10.7 205 Chesterfield l.B 165 LUCKY STRIKE 3.7 150 The pricing issue has been addressed with BAT Espana. ~tutu~l concern exists that increasing the price to that of Chesterfield could have severs negative short-term impact on brand performance In this lead licensee market. LYI has been Introduced in the market and could potentially usurp LUCKY STRIKE's leadership role in Its current price categorr should LUCKY STRIKE move to the Chesterfield price point. N O Co W W BAT Industries document for Legal Services : Health Canada 21 May 1999 -3- LOCKY STRIKE STRArEGIt OEVIATIONZ 2) e~e cont. Ip3~ cant. The next general price increase will occur d will be removed fra~ the goverrnment's con- in January. 1992. At that time, cigarettes slueer price index, ad itis believed that ~ increases will a taken. BAT Espana thinks that 1992 is not the tlee to increase LUCKY STRIKE price dramatically ,,,,,,,,ic. dlffcrrntlll bnrren loul bonds and USIB's is likely to narrow, and L' b'dtf~ that LOCKY STRIKE would benefit frwuptnd~ng from local brands. 6~0- Discussions with BAT Espanawill continue in :rtl 9rl a ~tte~npt to develop a vllble strategy for improving the price of the brand vis 1 vis narlaro. eBC LUCKY STRIKE Is positiond one price point below liarlaro In Qm outlets. In the gen- enl market, however, the price nuctuates bued upon supply ad demand. LUCKY STRIKE is generally pried alongside VLCEWIY and between the HILMN ad nlrlbom/KMT prices. Camel ad Ylnston are usually priced higher than LUCKY STRIKE, but lower than llarlboro. Discussions with the China Team will con- tinue in an attempt to develop a viable strategy for Improving the retail price of the brand vis 1 vis Marlboro. nal svzi a LOCKY STRIKE Plains Ire pried It parity with narlboro. The KSF style Is priced two points below narlboro. A n~aber of brands representing aS.SK of total oarket volume (fncludfng BaR, Dunhlll, Peter Stuyvesant ad Rothmans) are priced In Category A, be- tween narlboro and LUCKY STRIKE KSF. Ym Sep sezrul Ese nlrlboro 3.5 2.80 LS Plain 1.4 2.80 Category A 45.6 2.60 LOCKY STRIKE 2.0 2.30 The KSF brand style achieved I 0.29 SDn in 1988 when It was positioned in Category A. SOn grew to 1.89 in 1989 when the brand N P(O style was repositioned in its current price O FC'r~4' segment. Category B. Thlr repositioning ra- ~V4 rulted In ~rcEler.tcd g~rU ~nd Do ~crl~n O~ to increase price is being considered in the near term. (33 CIJ h BAT Industries document for Legal Services : Health Canada 21 May 1999 -C LUCKY STRIKE STRATEGIC ONIATIONS 2) e~i~L cant. es0nm9 LUCKY STRIKE Is pried two points below narlboro. nentolados and 8ellpont are positioned between llarlboro ad LUCKY STRIKE price points in the declining S.90/plclt category. ses~ ~rl born 19.8~~ 1.00 Nentolados 7.S .90 8aleont 2.6 .90 LUCKY STRIKE 7.4 .80 LUCKY STRIKE does not compete directly with Lntoldos. In addition, Chesterfield, Yest and now L~H are pos(tloned at the LUCKY STRIKE price point of S.80 per pzclr. it should be noted that transit cigarettes are readily available to consumers and are priced below the 5.80 level. No action to increase price is being considered in the near term. earasvsv LUCKY STRIKE is priced two points below narlbaro however, brands including B~H and Lirl: are positioned between narlboro and LUCKY STRIKE price points. sezn~ ~e narf bore 10.4 1.000 888 4.3 900 Lark 2.0 900 LUCKY STRIKE 9.7 800 Originally, the 900 guarani segment was not signrfic~nt. B~H was priced It parity with narfboro. During 1 general price increase in 1989, Pn did not raise the price of BILH as much Is they did the price of krlbaro. At that point, the price segment between LUCKY STRIKE and narlboro became < significant. At the BOO guarani level, LUCKY STRIKE has been successful in achieving levels of SOn equivalent to narlboro. No action to Increase price vis a vis Marlboro is being considered at this time. ru O Co Ln BAT Industries document for Legal Services : Health Canada 21 May 1999 -5- LUtKY STRIKE rmATE6IC OEVIATIONS a) Advertf Si no Strate~r: .Co~unicttlons build and maintain 1 masculine image of freedom. adventure and Independence. The 1Ameeican Original' (notorcycllrt) creative concept is the Group's standard international advertising campaign.' Deviations: 292l92y BAT tF Is currently using their 'Sonst Hfcbts' campaign In all cpnzllller c~~Punlc~t~ons. Initially this campaign was to be used for the brand introduction wry. Due to the success of the brand launch, however. BAT CF elected to maintain ·Sonst Nichts· as its ongoing campaign. BAT CF and BAY are currently working in parallel to develop a product-focused campaign to serve as a transition from the ·S~nst nlchts' campaign (or other introductory campaigns) to the international campaign. or a pack version of the International c~n~~lgn in view of 1992 restrictions on advertising. a) Psck~gig9 Stratesv: 'A new lights style design (felturing white type with I black drop-shadow on a gold bull's-eya) has been adopted for worldwide use. Deviations: Italy and Spal~ The current Lights styles in these markets were launched prior to the development of the new gold Lights design. Plans are In place to replace the current non-standard designs with the new gold design by early 1992. Jaoan and Plans S*ltrerland A nilds style exists In both markets. are in place to test a Lights style In Japan and to develop a Lights style for Swf tzerl and. A program will be developed to convert nild smelters to Lights. N O Istrategy m cD w BAT Industries document for Legal Services : Health Canada 21 May 1999 IiICtiT SFIUTEPIC OEg1ATTON6 1) e~ndurr 5rriteov: IARMT prdoots dlll·lr 1 ml~·r nar *1· their rodocod dlltv·rl·s old lndlcltl. IARttAr Peroot his the Abnn fllt·r lad 15 tirgoted it Silg ta for ktrms iod 6 eg tlr loa·l. IAICLllY olt~ Llpb~~~ I doll fllt·r end II tlrgotod it Iq ~r for ~1~ Id 3 q t~r for 100's. DeVIetlonl: lur4er ncur (Actron) too dctl*lrfes ire I a tlr DI11*erl·r ire not cumntly dtsclosod on oick or II idvorttslog end IARtUl'l Is the Ipert tr hrind la the Itht. A dovolooornt )11· his hoon developed to rodnoe product dolIvorler to 6 ~ over ttl rttholt dtsruottng the grovlng frinchIse. t) Plcklslns Str~t~v: Plckeplnp for 111 styles Incorporltos the textured hind rod gold IARtLAr crest, co·*cJ11( the upscele pozltlontng of the brlnd. The orost It htghlfphtd rltb red khlnd the I's. Is prtntd on i brlght·r gold when possIhlo Ind II hot styles, Is uhossod. Ze brld's krlcll h·rltq·, Actron flltlr (1· the c·re of )lrrnt) ~nd tlr clisslltcltlon ore CDI·1Cltd on pltt· Otvlltlons: 4U~ All eijor rrtcts bl*l idoetd the lydltcd olclugo design. A few sloll Inventories of old plchgllp ~·II to he dcplttd. lethcrllrds Id~l filter end klrlcla Blend copJ vlll he Iddd to oick copy II the hethorliods vlth the nvll of leg tlr fron the flce of the Ilc~. N O W V HAT Industries document for Legal Services : Health Canada 21 May 1889 -2- 1) Advertising Stntwv: All brand colrmunlutlon contributes to an overall br~nd luge of personal success and contemporary sophistication. Image-focused advertising features the BARtLAY ,. rho c~unlutez the folioring IraJ iDagery elements in an impactful and Involving manner: success, sophistication, class controlled poret/emotion, intelligence - masculinity, dominant presence Product-focused advertising is consistent In time and manner and design components rith image-focused de and reinforces the lo*/ultril Im tar posltlonlng. Deviations: Sui tzerl and Iatroductoy campaign Is currently nmning in support of BARCU\Y Ultr~ Lights. innsitlon to ongoing brand campaign is not yet ~osolved. 4) Strateav: DAPtLAv is prrced equivalent to full revenue, Minstre~m U.S. coa~etltlue bnnds. Ho Deviations Hay in, 1991 ~DZ/strategy/3 N O 03 03 CI~ 03 BAT Industries document for Legal Senrices : Health Canada 21 May 1999 UPRImWESSE S~RArr~It OFlITATTO)IS 1) e~9I~Et T~fPf~9Y: The 17111 circumference CAPRI/FINESSE delivers the same n~ber of puffs and the sMe Mount of tate satisfaction as other top quality law tar brands with normal cf~c~ference. The blend contains no stem or expanded tobacco. He Deviations 2) plckaolnq StrateoY: tAPRI/FIHESSE Is packaged In a slim. elegant. flip-open box which Is embossed ad hot zt~td. The delicate wash art an the front panel Is used as the brand symbol. Deviations: Packaging It currently undergoing a design modification to whiten background color Is market specific buff inventories l~p depleted. Licensees will be modifying the pack confignration later this yea for 1 slimaer profile than that of the Export pack. 3) AdvertlSfnq Strateqv: IlnaoelAdvertisi no The U.Z. international model cMnaign Is used wherever possible. The cMpaign features contemporary, confident ad stylish women. CAPRI/FI)IESSE is part of their relf-uprrssfon. Hen-model advertising is used in markets where restrictions or sensitivity to female targeting 15 present. Ho Deviations 4) Pricinp LtratelLY: pricing Is equal to full revenue, mainstream 0.5. competitive 1001120mn box brand styles. Deviations: ~P4a brand price recently changed fro~a 280 Yen to ru 250 Yen to match slim competition In this O market. Ca 03 \e BAT Industries document for Legal Services : Health Canada 21 May 1999 O INI~E~NATI(4IP~L UR BRAM~ I~BYSPONS~P~SWIP FeV~i - Bn~SS(Zu k ~S I. B~L~ t HEDQS ah Past Activities BistDrically. golf has been the lead event for B~H. The Internatianal Golf Serie3 ran nmssfully in the Par Past for several years UP to 1982· ·Ihe Spwsh Open ran in garallel for foln years and continued m~il 1983. QI a more limited scale. the Kenyan Ooen ~as also a successful event but the Great Britain vs. Vest Africa tournament had pradominantlv local appeal. ?he current event - the B~H Ro~h~ is now in its fourth year. Crickn has also p~ved a li~ificant role with the nrcessful Yest Indies Test series in the mid eirrhties and the Australian series (vhich we pick up from IrD t ~ Wills) still achieves wide TV e~posure. ~Ihe West Indies Cricket A~ual is a solid perennial as are the Golden Greats videos IGolfers. Boule~n a~d Bats~e~l. Power Boats war an attempt to inject a more youthful and ~N~ic appeal with a E~r~FeM emphasis ard this sponsorship ran f~ 1983 for three pears. bl Current Activities IBM Spcnsonhip support for BhR is currently focused on the BeMon 9 Hedges Golf Trophy (a mixed went staged in Spain~ and PhlSiC FeSti~g~9 which in 1991 are planned for Holland and Greece. Both these activities are carried out Ilnder the tanner of 212) ard achieve good brand name visibility. The 1991 budget is EIJ0,000 for the Golf and for the Music FenivaL~ total sperd in ~15.000 of which 9779.000 is in the IB~ budget and f140.000 is contributed by BATH. Other activities include the Vest Inhies Cricket Arm~l ani sporting videotapes (Golden Greats) which bring total spend to 91.2 n~li~. If the BA~liE music contribUtion rF140.01 is excluded. then the resaininq f1.06 milli~ represents 22X of the total IBM BlH nuppst hdaet for 1991. c~ ~mn~ent Strategically, sponsorship ~n~t form a cohesive and integrated paf~aqe uith ail other t~and af+ivit~ within the region including b3rh IBn a~ olxrJtin4 ~ support. The ultimate r~aow of "successful~ sponsorship is consumer awareness and its contribution to a positive perception of the brand. N O CO CO O BAT Industries document for Legal Services : Health Canada 21 May 1999 Benson b Hedges events are currently crnrla+ra+ed in ~mpe - a key ~ro~h area for the Ho~e. Subienivelp these activities lack coherence in that they feature tuo rather disparate activities - golf and music. Golf is: - ~arket but mt necessarily compatible in Rvmpe with the new B~H positioning ("Confident. innovative. inmqinarive"l -potenfially attracting TV coverage but one needs the ~ri~t" event - interest in the spon is growing in the par East - also a ker area for BhW ~usic: - has ~ivcr~a~ appeal in one form or other -c~n rcadil3r be tailored to suit specific mulrets and ~mrsicd tastes .. intm~ea youthful appeal/imagery to B~tH - creates opportunities for selling the T?ID product (alhums. tapes. O'sl - create. the environment for merchandising and promotional activities In ~an~mnw. BWI lacks an integrated SplM014hiP package uith veai~eshes in key potential gmrth areas. A thorough review is required. Note: the existing contract for the SpaPirh golf event can be terminated after this pear's event LNcvember 1991). 2. Past Activities SpoMorship activity for jS5 has been consistent over a rnmber of pears with the focus almost entirrlu in Asia. Badminton. Table Tern~is and SMcker have provided the vehicles: the venues have included China. ~alavaia. Irdanesia. Bu~ik~k. japan. Wong I(ong and ~acau. Table Tennis and Badminuon have hues po~lar a~al in the Far East axd interest in snwker is growing. These have all been rorld class events uith top ranking plsvers and as a result inrerrurional as well as local ~FJ exposure has alL~vs been verr good. N O Co Q3 P BAT Industries document for Legal Services : Health Canada 21 May 1999 ~ 1115/r/T the LI 0 0 Y1~ B·1~9 re zpomsrd sod a het-triok ·i via we oolr aurwly ~~. h cvenr rhievd ma)or sretus in the dd 111l7 oaiendv- Coot. ~cnq~id vith u~s~e~ble daode tron the ChineJe lDtor sport wtboritiee Id 0 the ~~FM+in~ti~ o~ a psrtioipttion. Note: A o~rt~nit~ erieta O spooeor this ~J eleio ia 11)2- hi CMmt ~ti~tis Igel Y·td eFooeorship lotivities incl~ Table ~eaLI. B·dpinto ed Snwkr vith the ~~plphid rmFhui 4 ovEh I ~i.. 1· Snoe~a cvm+ IPe 511 Challq·l il,threrveelue e~Ylt bciru ~ ior the iiat tine i 1PP1: ft i the sirth rear ior B·c~uinfon uhich this ~ ~1 be held i3 P*flu in Ao4usr d the Rin~h year for the World Cup ~1· Tuulki ~d ~ be ~t~qed ioKkysie kJqtemhr. ~h· totll bldxr2 for the three events i· L700.000 which ~esenll 120 ai m~ IH?l op~ul on the 555 ianilr in 1991. cl Ccmnnr S~Jecti~·lr. (d ddo.+ .· T·r eov hid evidenoe - ··+ 4 ~1~1 the n IPONO~P sctivitil lOr 555 a ooneidad soud: - bJ a Eonctnv·trd io the ~T k h+ rqioll - ~ k been ~~r~ a I mnb·r oi IM - ~4 have h videlr ~·d a 'N (~ d rcorded) not ~ i the va~ue ~·r but to other Ear Eut colntrra uyl ~urthr eiield - ~ sports te · db poptlr IF~erl io the L Eee+ vith e rwthtul ~.~i+ vhioh helps to aihc+ the older ie/~Ne oi the t~nd - theJ a rarld c~ events - theY a relltiVelJ inurpe~i~ 8 IDIPlt Judqnldl~, current ~ sponsorship support ior ijl is ·Z~tk; it s ho~evcr b Frudun to ~~ vis research that the urai·td 1~·4 is cqltible vith the required 155 ~·Lti.nr of ~hB. Ioflumtial. Dpnaio. Lader". N O N HAT Industries document for Legal Services : Health Canada 21 May 1999 i. Pmmsed Rwiew ard &easaersment As noted, the above an subjective comnnts made without the benefit of obiective information or co~n~er nsearch. ~lhis I~ines up the need ~ re\ieu o~r strategy for Spemsorship suppo~ for the two key trademarks in order to ensure that the c~tributicn which this area of activity makes to total bnrd support is mawjmised. This review ~auld be completed before the next.lannnng cycle. hep aeas of knresti5ation will include: - 5U3T analysis of SpoMmship per se within the Ecmte~ of international bra~d su~a~- - CampatibilitP of current activities with ~CeentlT established t~aFd values and tareet imaqerP -Target audience auarenesslattitudeP to current activities - Geographical priorities for each ~wnd - Overall IBPI spend levels relative to total brand budget - Establish clear management +t~cMe i.e. ~ role versus eFe~m~ comFaw -OpportYnities for integration with local Og. Co's activity Essentiallv, the question which has to be answered is IhDII effective is our edstins package of events for each brand am how on it be improved to meet the needs of the brand ard the anticipated marketing ermrm~ent?" 'Ihis YiU require discussions with key local operating companies and the instigation of a research programme to provide infornarion to help to determine fuMe strategy ~UID/P~a~ L991 N O Co Co W BAT Industries document for Legal Services : Health Canada 21 May 1999 -- SECI eo··rs··~lb~k ~Y------~- ·.·.r.·. dpomnoRlanl Ovarvfau pr·p~d ior TSBT Lt4 oi bay fO, 1)91 ·~lltC~IVE To oxuuro umoiotoncy or m+qis 1.1.I.·. 4~D'·h~· FF ~ qeog~~L~~ ~ Q~ t~' k" I~P~PIIL ·rl ·la 1 U~a C~hip· pY ~11 ~5 COPPUILLQ~~L Yabinlan ~d nraata aitilPLlnt L~OUIIL~ and traditfonal ndia advlrtirrin4 d ~II ~·~e -n ,~ to ~gisl 1 brand. Ahrtn 1~ Fn cMc·rt vitb ccntribu+a tov~d·~·bi9 brand" rFar9Y in tb" pi"d~ o~ conn~r?i. 1CtP~t~i~li~ 1Kk·t~ r ~LQClhlP· ;i ·~ ·~. u 50~L1IPtl~l C~L ~P ,th·rwi·a ·ot milB1·. 1 traditional cLgarr~ ~~i·~ rs~tric~l~ continun tn fnc~u· arl~id~. ~ro~~·~ ~th~ ioa oi parallal comn~niuti·~'~ L·~ nDlr F~portant +D Irucu~s·~ brand Lar)c~ting in 1 qroving mrmb·r ·~ ·urk·t~i. Tbta bu bw recognfld bY 0" conpatLtora an vrll, I lvfd(vlcad bY tba uEpaIaion ci lntrrnatianal b~and qc~o~biP pr09ruu and 4~8~. Wall Hlactad Crorship prograns Idd providl tba LalLa4: p~tnurr at brand ~uar~r· RcMorsanant oi brand Fu9a Cqluurr to tradi.tfnnal brand eon~uhidio~ h·· pn· and broadcast ~il ucpoanra .UDi· and cnnp Z·~i.~ oRortuniti·· qrl to tba br~nd'· target c~~r Local in-narkat ~lo~Ltion ~portxlbiti·l rU O n BAT Industries document for Legal Services : Health Canada 21 May l999 -2- 1118118 AI~I~I~I1I~ h io11~4 aunoary oi currmt 0.·.I.1. JponucrahipJ in & ronnlt o~ a vorldvido nwoy oi lWI Regions and ~ Oporating Companiu. Rapoondt;ti woro I·Y to prwido I ovlNiav al ·18 ~poruo~p currontly hlLg uployod in suppo~ o~ ~· iolloYing rtratqie btllldS: LOCIIY S1III~E 188 ·ARCULY Ruporuu voro rmivd rron 37 narkotn/rosioru, oi varot 11 curr~d~ hav· ·polw~hip-prograw in PIaoo or plan to ~iti~ JPonL;orahiOa in sueport oi thooo bNldri dvrfn4 1991. kr tho porporiu oi ~ nmnuy, oponnorshipn m boing ~Z~·rurri·td iron pronotional ovontn. Dnlikl ~~o~h~·, propotial ovontn gonoraIly iail to provido Signiiioant c~ ol '~m ~liffB· in "1PS OL pr··l ~ b~~·t ucpon~. mr ~fl r·l·cn, only aponaorrhipri vill to ~·~·~. LVCIC1 ·mP LDC~Y SPRIXE i· Q'· only intMatloMl brand vith a global ·po~o~ip progran in pInoo. Thin progran oai~ oi prinarY qo~o~4 oi rl IIlClPl ITXIXE luzu)cL, I World Chanpfonahip SOOce L~~yE~~ Road Raoing t~m, vhioh oompotu in Grand prix raoaa throushou+ a· vorld. lot q~·~~, qivon thin global 9~o~P ~r·ll·. ~8 in mqd oantrnliy by 18, no·t 1~1 and qicnll I~C~ SPRTXE sponsorrhip ·Etivitf·· aro oithor dia~y ralatod to Tean LDCXP SPRE ··zuki or other notor rPorta aotivitila, vitb p~fd~ g~·i· on pto~ycl· ~4. In addition to 1~1 nrdil and promotional urploitation oi r·P IIJCXY SPRIXE 1IZUki in IfTtfllll~ all LDCl(I STRIXE ·a~~, tha local sponsorships u· ourrantly operational · ll·~i· · ParaC·I · Ilonri· · cypnu · 8ingapora Bvitrariand · coata Rioa Holland · Guatanala Italy · 11 salvador spain · Cornany In addition to tho la. a coruortium oi ·c~l MT N Op·r·+Lg Colnpanil· jointlY Fnnd r·P Ll)CKI bmP snzuki in O tho 1IQee claa· oi tha World ChampiamMp Ictor~l· Roadracing lui·I. ml·l oompanias Bcld·: MT (Espana), P(5~11··). Bl\T(Nadarland), BllT(lanalux), nc, chilo+abaoos Id STC. h BAT Industries document for Legal Services : Health Canada 21 May 1899 MHIBTT A 1991 U.S.I.B. SPONSORSHIP SPEND PLAN (0.5. 1000) WUC( L~B~EI 115155 I(MI BBBtLBL IPIBL HOH6 016 1 U15 1 385 1 no JAPAN Il 641 2,764 IV~SUL 2·611 ,.,, '·~~ INDONESIA 170 578 SD(GAPO85 578 10 THAILAND 120 58 COSIA RICA 58 339 CHILE 219 120 6UATEHALA 3 30 PARAGUAY 20 10 40 EL SALYAWR 40 CrPRUS 7 nmLERLAND 1.398 IP.173 3·~7D~ ISRAEL 50 350 959 2,236 HOLLAND 1,277 8510108 370 1.12P 2·301 6EPNANY 171 2,029 ITALY 2,029 1,283 SPAIN 1,283 615 615 CHINA 512 512 FINLANO SUBTOTAL 112,a30 f1.648 I5,564 121.612 BLY 5.972 O 25 6,997 TOTAL 519.40a 33.648 55.YJ9 lt8.639 N O CO CD 0\ BAT Industries document for Legal Services : Health Canada 21 May 1999 -3- ~82 In absence of an international sponsorship For KEWT, local sponsorships tend to ~ much more varied and skewed towards activities of specific local or regional interest. Thess programs include: · Beach volleyball tournaments - Hong Kong · colr matches and rBMT cup Gali - Japan · Sailing and windsurFing tournaments - Malaysia · P-l Powerboat races - Malaysia · waterskiing contests - Malaysia · Busing tournaments - Malaysia · Music taurs, concerts/Festivals -13alrpria. china, Israel · Snookar tournaments - QFna Snow skifng competition - chile · Tennis tournaments - Paraguay To addrs~8 thisineo~LlFstancy and provide an international sponsorship platform, BLW is Ellrrontly developing a XI~T golf sponsorship proposal. IF approved, this sponsorship will he implemented in the Par Past during 1992. Preliminary work has also bean completed on a jazz sponsorship For IIELIT in Eruopa. Ruther action is on bold pending the results of testing advertising campaigns. ~fta~ test results arp , sponsorship program will be developed consistent with the advertising as an integral part OF the total marketing program For the KENT revitalization in Eumpe. BRRcLAT BARCULY no longer ha. a centrally managed sponsorship program. Howeva~, due to the brand's involvement in Formula One over several years ending in 1990, auto racing still tends to dominate local BARcYLY sponsorship activities. group oF Four Rlropean Operating companies jointly sponsor the BARCLAY-Eddle Jordan Racing Team in the Formula 3000 series. This group consists of BAT(Suissa). BhT(Benelux), BAT (ledarland) and SMy. N O CO 03 O U BAT Industries document for Legal Senrices : Health Canada 21 May 1999 axncru (cont'a) lldditionrZlY, ~I~···) y, pmoll ~.ro~·h~ contract rith SvLo lo~l 3000 Civ·r, ~·~ WL"U, dtr tto anuPic" oi mo I~re pr loundatll, ~rO~· nnar oi young 1~1 racing C~~ in ~1~' ~u~-opu~n car cl~r. p·raffng c~~ '1·0 qo~~ 1 ais ,F IURMY Tannic four~P·nt~. blT (liaduland) rpoluop 1 Dutch uotor racing t·"P in tho b·n1·1r Op·l Lottu ·Irir, r vail an a.rir oF BARMY J·t+ bnuut~, BIIR~JLY Iuhio~~l· id. COIICLDIlO· Aeprorinatoly mile uillion ~1 ha 9~ i" aqqr~qi~~ by alT croup Ccnpani~ on ~~~hfp· in ~peort oF .t~t~ic HIIT1Y ~01 oF thin total 1~1~ in n~ppo~ oi LllcXP-STRIXE, ,~ about on· t~M oF mo brand total co~fng Fron P (br~Libit 1 providaa narlut i br"d dotaila) . oF lDCFl SPRIXE, uh·rr bYl p~L~' global ·ponso~hip ~pl1l and to a ·o~m~ losoar urrent, CI to dr brand Ovnlr·· p~~ nteport oi notorrpo~ For BILBMY. tha Mat najoritY oL local aecrWcrahiP ·iiom ~chkd thuo tvo brzlad· P atratogicallY con"i"t"t. tar, C'"IShip ·uppo~ .i XEPPP in vidaly dinparata and 118 coordination. pBWl~ml~O· 1 BpoluorshiP Rliq ban baan davolopod to provido a graatar dogroo oF ~istcncy. Furthlr, apociiic intarnational ~oro~p ·~qLr ~ progrann vill ba dovoloPd For ~ZNT. PI ~ ~· ·o~uhlt dfi~·r~t XE~ =~ in ,~, aim could to ~loi~a on 1 I~giod b··i·. 11 vill n·d to h· datrPixod vbatbor ~~ ·poro~ip· ~ J~ppo~ o~ XMT mould 0·~~ aigniFicant contral ~~ F,, ~· brand ac, a a a· a·~ oi lncIcv sFblxb, or b· Fla~ primarily imm cporating Company contributions . Ute 4/29/)1 /n·Dqon N O m BAT Industries document for Legal Services : Health Canada 21 May 1999