Packaging and Pricing
PROJECTED RETAIL PRICE,
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MEMbRANDE;NI
C C N F I P B N T I A;..;
To: Messrs. Schultz
Vi1a-
From: R. E. Smi th
Re: ProjEc_t-ed Retail Price;
May i,. 1--976
Here' s some general background information ind icating that grea,ter
than 20 cigarettes per pack may offer a-substantial per-ceived=
economic valuo-to consumers.
The average projected premium paid at.retail f-cr_-22's and-3u
would be 6-(~ and 9(~ per pack:
Projected--Retail Price
20's 22's 30's
U.S. Average 48~ 54(~ 57(~
High (Conn. ) 58 63- 71
Law (N.C.) 36 38 39
The 20's figure (above) comes from The Tax Burden on Tobacco, 1975.
Retail prices for 22's and 30's were projected by circulating all
applicable taxes and (arbitrarilv)-adding 10% to manufacturer/
distributor costs-. State-by-state detail is shown in the attached
table; calculated by MRD. -_
There are four-states where packs holding more than 20 cigarettes
could not be sold; Idaho, Kansas, North Dakota and South Bakota.-
These-states accounted for about 2% of all -.omestic tax paid
volume; Tobacco Tax Councii, 7/75 - 2/76 data.
Piease let me know if you have any guestions. Of course we'll
be discussing this further, along with other ideas coming out of O
N
our work with Synectics. ~
\ C13
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-cc: Messrs. Ave
Spears o, /
