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/M ~1> 10-, September 1, 1982 TO: Mr. D. H. Murphy FROM: D. E. Loredo SUBJECT: INCIDENCE AND RATE REPORT - YEAR 1981 - MAJOR ISSUES THAT RELATE TO THE NOW BRAND BACKGROUND: This memo summarizes key conclusions as they relate to NOW from an Incidence and Rate Report for 1981 issued by the MDD Fore- casting group. The incidence and rate measures were obtained from quarterly telephone interviews conducted nationally durinq 1981 by M/A/R/C among adults (18+). CONCLUSIONS: • TOTAL ADULTS - Despite the lower number of adult smokers in 1981 (52.6MM vs 53.2MM), their estimated total consumption increased to 609 billion cigarettes, 1.2% more than in 1980, due to the increased average rate of smoking. • FEMALES - Female incidence held relatively steady in 1981 (29.3%), rate per day increased by nearly one cigarette (28.0 vs 28.8 cig./day) . • 35-49 year olds - Incidence (38.6%) and rate per day (35.2 cig./day) are higher among these smokers than any other age group. • 50+ year olds - Incidence (26.3%) for this group is the lowest of all age groups, rate per day (32.Ocig./day) is second largest among age groups. IMPLICATIONS: Results from this report are favorable for NOW, given the brand's older female skew. We should continue to target our efforts, since females are still gaining importance as a percentage of total smokers (47.4%) and of total adult consumption (42.7%). Also, smokers over age 35 continue to account for nearly 60% of consumption. J ,.,, 0 0 ~ ~ ~ G.J

Dan, if you would like to receive a copy of the full report, please let me know. Diana E. Loredo Marketing Development Department DEL/ah attachment cc: H. E. Osmon (Memo Only) A. E. D. L. R. C. S. J. Cox (Memo Only) Etzel Johnson Breininger MDIC