LCFVPMW 1 8. 5f. 8 4 JOINT RUMARKETING CONFERENCE: 1984 The background to the R&D discussions was a clear statement by Marketing representatives as to how they see the need to develop new or modified products to meet basic consumer needs, which are Physical needs, e.g taste, nicotine Emotional needs, e.g. brand image Rational needs. e.g. the total proposition must be credible/meanii _Ce,VS%"VV01-J Kccws Marketing then see the following specific areas of --pi Smoking pleasure and satisfaction Valut for money Personal reassurance (SM/de7iveries) Social reassurance sid*stream smoke, room and butt odour) Female smokers Brand reassurance R&D can relate directly to the first four of these specific opportunities. but less obviously to the latter two, - other than Charter Research with regard to females. We shall be giving thought to the possibility of bringing some of the relevant Product Applications Group work into the Group R&D Programme - albeit without altering the amount of levy funding. 2985 PROGRAMME REVIEW The modifications agreed at the June Programme Review were accepted in general, but a number of specific additions/modifications were made in the light of the discussions with Markettng. 01 BIOLOGICAL RESEARCH No major comments; Biological Conference for 1985 agreed. 02 SMOKE RESEARCH (i) Combustion Strong pressure to demonstrate the practical utility of theoretical models, e.g. to assist the development of products with front-end lift. and ultra slim cigarettes. 0i) Sidestream Notwithstanding the general lack of Marketing agreement as to the strategy of launching reduced sidestrem products, there was full agree- ment that we must have technical solutions to the relevant areas, e.g. side stream visibility, irritancy, room odour. Also strong interest in the amelioration of butt odour. Specific areas of interest were the reduction of sidestream pH and the use of additives (e.g. Brazil -'fruit extracts). The mechanism by which the latter works must be established, e.g. chemical, or simple masking. co 0%, UP4 BAT Co LTD - MINNESOTATOBACCOLITIGATION 02 SMOKE RESEARCH (continued) (iii) Filtration Strong support for research and development into two approaches to imProliIng the consumer acceptance of low del products (a) direct enhancement of the flavour and sensory effect of a given quantity of smoke (b) development of products that enable smokers to change their smoking pattern to achieve desired levels of satisfaction. (Consumer-Demand Responsive products.) 03 SMOKER BEHAVIOUR Strong support for better understanding of factors that lead to low retention of smoke in the lung, and the development of prototype products. The Swiss market may offer epedemlological support. Increased effort required in the area of salivation/mouth dryness/after taste. Nicotine remains an area of top priority. 04 FLAVOUR RESEARCH The overriding need Is to direct the past 314 years of research into useful applications. In particular, the Svenska Tobaks work must be brought to a speedy conclusion. A parallel effort to Project SHIP should be initiated for Virginia products. This work area clearly needs a change of title, e.g. I Sensory and Tobacco Research. 05(a) PROCESS: Physics There was an absolute need to direct effort to practical applications, e.g. end stability, hot collapse, ultra slim cigarettes. The work must have clear relevance in commercial terms. 05(b) PROCESS: Chemistry The criticism made at the June Review Meeting as to the lack of clear objectives was confirmed. Clearly it is urgent to integrate the work with the requirements of the major Operating Companies. The 'SHIP-type' project for Virginia may provide a useful objective. 05(b) PROCESS: Expansion While acknowledging the significant advances In recent months, we must validate, In comparison with existing processes, the possible commercial benefits in terms of either product or economics. 05(c) NOVEL CIGARETTE TECHNOLOGY This work was broadly supported, but the need to sell the product concepts to Operating Companies is paramount. C=) 06 ANALYSIS/TEST 14ETROD DEVELOPMENT %lo C= No major comments, but clear recognition of the importance of this area. BAT Co LTD - MINNESOTATOBACCOLITIGATION -3- ACTION Group Leaders should immediately, after discussion with Research Managers. start drafting the 1985-1987 Programme in the light of (a) Programme Review document (b) Proposed Revisions to Group R&D Programme (c) The above notes 01(_ ic fee initially t 84-1986 document should be followed - but we may make some changes to ate the relevance to commercial priorities. The final draft for the complete document must be available by mid-October. This means that Group Leaders must have first drafts available for Research Managers by end-September. L.C.F. BLACKMAN C-10 LFCk/PMW ON 18 84 BAT Co LTD - MINNIOTATOBACCOLITIGATION -1