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iti1l~.P.7t) i2 AN (1U N1 C 0 N F I D E N r I A L Toc Mr. J. R. Ave Dr. A. W. Spears From: R. E. Smi*_h Re: PDC Meeting: 4/28; 7-E Vt CQ W,1 Qm,-- ou1 ko_ , ApF,,~I, 29, 1976 - - The 5 Year-Domestic Cigarette Marketing Plar was read and diseussed. The rest of our meeting focused on making th-is-plan happen. Current Status of-erojects Ken t- - 1. Loriliard evasuati ons of the first ev~lutioizary product _m- provement will be a~~ailable in mi d-riay. Improved product wiil begin to reach can_surners in major markets by mid-June. ~ . -2. Internal product pvaluations_of the second evolutionary improvement-should be ready by-mid-3une. 3. Loriilard evaluations of the improved (reduc.ed .'&W pT--;-t •+ should also -be ready by mid-June. It is proba ble that this prodtjc_+ will use perforated tipping paper and porous plug_ wrap. It ispossit;ie that white filter :ow will be used rat-her-than grey. - - 4. IncrAased impact zc GL Menthol product will be ev_aluat+ad-bS• mid-May and reach lead market warehouses by June 4. The possibility af-developing a 7mg KGL product was--disc - Newport - MIRD design -of the unidentified product test will he f i:i.: t, this week. Product will reach the field by the end_ o-f May.- i '!'t`ue - l. 13i',Ind Al.1s:,1k1k,nW:iL i;t( !ic:_i li _(; tli.il t Gie t,`>iiuik l;tst` t'educ i.i( ) it -tuo ; :i go to 8mg - even if tt;is further redudtior, takes the three- months e>;t :„ development time that R&D estimates. Brand-Management will think t- ~ ~:n when and to what extent Tsc11eS il?uSt- be r~-'duced on' B'D[wt i[le-nthol- a;ldi- '.filter/menthoi True. (The above thinking applies to both True T&N ~°duetion projects; current True character and more traditional cidar,ile- n _taste character). - - - 0325489G

e r"N 2. -frotoLypcs of True :Ii irc now avail_ihl-e zind-pcnclina Lori l lard-eva luation appear Elo7e r.o targe rr . The type o f f i s t.,r tlhj s product will have must be work_ed o>St;,- perhaps aided_ by consume-r re6-- search. Possibilities include a triangular impres_sion--in an--ac.ctato filter,- a different shaped True type-plastic-t-ip,-a-fi~trona type fil- ter,- a recessed filter, use- of colors_ (in plastic or acetate), tre- regular True filter. 3. It-was-suggested that reducing True 1G0's tar to the l--r , of 85's could be the basis for an-effective brand positioning; as coii- sumer preferences and True volume swing toward the 100mm size. New Brands --1. It was agreed that judgement and recent publicity (live an--enrrched- nicotine product thc hig::est priority of _11 new tir~.n i_ t~ro= jects-. This project has _been divided into thre-e par_ts: a.-) How=to get the nicotine (qua,ntities, prices, throwsaway costs, -etc. ) b. )[Iow tc~ use the nicotine (on~ both _5mg and 2mg tar products ), and c. ) What ~-Ire the corporate implications of nicotine addition. It was agreed that all phases of this_-pro;ect will intially be worked independently. Beyo;ld a rea-i sense of _u-rgency, timinqG fi<ive- not --been- est_ablisi;ed; -because all phases-_ of this proj-cct have- -just been star-ted. 2. It was agreed that other immediate New Brand proj e•c t~; - ~ identi=fied in the 5 Year Plan wil.l be ruj; through the -cons-umen cor,CI - screening proce_dure _that h1IZll _ is developing. (These pro jects ir;c lu<3f` _ the reduction of n on-T&N smoke ingrediEnt, -hnd- a 100% menthoi -S11i•';-. R&D ~~ill be involved in the screening _rese zrch to--better urldcrf:tI:t: (- what each concept :nea ns to sr,lokers._ 3. f'~arther- ana"I.ysis -and s-creoning will be- done =in tlEe better perceive d ecomonic v,:;ue, additional benefit asid alt`rnzitivc fl avor-sensation areas. Specific- projeets_-fron th-is work -wi-l=1 be integrated into- tKv 5- Year Plan_ _by September. Old Gold Filter - f:uring June the Brand Group will evaluate the ri.gh! of a "ligh*" line extension. Other - 1. R&D wi. i l dtlevel op _„ rc v i_,w o; eui-rent eigaret_te- tclchno k~~;•,•_ to be given to mar;teting people sesr~i-alic;at-illy. _ R&D. and '"'rand _l~ianay. n_nr -will wor;t_ out logistics_ for- these seminars. _ 2. Think_ing will continue- toward the r_eduction =of-_ T&N's act-c:,:s all our filter brands. ~'11254897~-

! 3. It was sucIc~estccl titai: ~i<:n-tr. ~:cli tional packaging could y i vc~ ~A . a selling advantage- to an_ -establisFed -brand-. Mai,_or (Qverall ) Next StepG_ 1. Work will ~continue on the above projects. 2. Brand Management will forward explicit project requests to R&D ()Ti - all projects. This will insure -accurate and-coruplate corut,unicatiens. -- 3. Market research will be developed to guage consumer awareness o-11- Brands° relative T&N ratings. This may need to be a tracking study since_adi=ertising=ca!npaig_n.s-may alter smoker perceptions over time.. This information i5.import:nt-because-so much of-our product-develop- ment work is T&N-reduction_. 4. The PDC will meet with Syn-ect_ies during -the_ week of 5/17 to more exactly work out how_the 5 Year- Plan will be implemented.--_--_- -- ~ C. -II. Judqe _ A. J. Bass P. R. Cotrone - J. G. Flinn L. Gordon J. J. Howley A. B. Hudson -T. II. Mau_ J. -R. Mueller = II._ J. Mi nnemE=yer -C. L. Tucker B. Vila C. R.-Welborn,