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Memorandum ~.~ THE ~ ~ AMERICAN ~.~,~ TOBACC 0 COMPANY o Mr~ R. E. smith g~nuary 29, 1991 Vice President - Brand Management ...... J. c. Bogie product Manager nat CKY Ere Commemorative G~een Pack Offer The purpose of this memo is to provide you with an analysis of the LUCKY STRIKE Free Commemorative Green Pack Offer that ran in consumer magazines. The objectives of the LUCKY STRIKE Free Commemorative Green Pack Offer were to communicate LUCKY's rich heritage and to stimulate competitive trial among young adult male smokers (21-49). This promotional offer Was executed in a two page spread (see attachment) and ran once in each of the following four magazines: ~ation Sports Illustrated 68,000 August 27 People 61,318 September 3 Penthouse 57,249 October Playboy 640,000 October The total circulation this promotional ad received was 826,567 and the promotion ran in late August and September. Through January llth we have received 5,299 requests for the free LUCKY STRIKE green pack. To date, approximately 65% of total responses came in the first month of the offer and 21% in the second month. This will shift a bit as we continue to receive requests. (See attached chart.) The following will provide you with key insights from the first 3,637 respondents that requested the free green pack: 88% of consumers responding were competitive smokers and 12% were current LUCKY STRIKE smokers. 44% were either Marlboro, Camel or Winston smokers.

Mr. R. E. smith January 29, 1991 Page 2 84% were male and 87% were between the age of 21 and 54. This compare to LUCKY Filters current user profile which is 68% male, and only 38% between the age of 21 and 49. 16% of respondents have smoked their current brand for a year or less, while our NOTS data indicates that 7% of smokers have smoked their regular brand for a year or less. Thus, we appear to be attrmcting a higher concentration of consumers willing to try new brands. The response rate to date against the 5,299 current request is .6%. However, if we assume an estimated 35% incidence of smoking, then the response rate would be 1.8% against smokers. ~NCLUSIONS Overall, I think we have achieved our objectives by attracting a high percentage of young adult male smokers from competitive brands. We continue to receive 70 to 90 additional requests per week for the free offer and could reach a total of 6,000 requests by the time this promotion is completed. At which time a final accounting of respondents should be provided by Clarion On a relmted note, we are close to finalizing an approval recommendation that will attempt to measure conversion based on the free green pack offer as it was offered in a direct mail piece targetted against competitive smokers. This will provide us further insights into the strength of the free green pack promotion. If a high conversion rate is found then we might want to consider running this promotion as a national program. Also, attached is a write-up from Clarion that provides additional observations and the raw data used in this analysis. Please let me know if you have any further questions or comments. JCB C. J. Burt W. Degenhardt J. J. Mellett W. J. Moore P. Noone V. Puleo C. E. Willoughby D. Wogerbauer /ldm 129JCBI

LUCKY STRI~UE COMMEMORATIVE GREEN PACK TRACKING Report NuMber 1 2 3 4 5 6 7 8 9 10 ii 12 13 14 15 16 Total Cume % Responses Perio~ ~onses Responses TO Date 9/4-9/14 1,372 1,372 25.9 9/17-9/21 1,068 2,440 20.2 9/24-9/28 343 2,783 6.5 10/-10/5 647 3,430 12.2 10/8-10/12 209 3,669 4.5 10/15-10/19 256 3,925 4.8 10/22-10/26 198 4,123 3.7 10/29-11/2 124 4,247 2.3 11/5-11/9 283 4,530 5.3 ii/12-i1/16 152 4,682 2.9 II/19-ii/23 112 4,792 2.1 11/26-11/30 94 4,888 1.8 12/3-12/14 166 5,054 3.1 12/17-12/21 92 5,146 1.7 12/24-12/28 81 5,227 1.5 1/2-1/11 72 5,299 1.4 5,299 -- 1O0.0