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CONFERENCE BN~EF MARKETING IN THE 8O's A REVIEW OF STRATEGIES RELATED TO S~K)KING & HEALTH CONFERENCE No. 2 I. Introduction At the Chairman's Advisory Conference, Hot Springs~ U.S.A., June 1976, a new policy for marketing was agreed. This was that the Group should evolve strategies which are positive and explicit in the field of Smoking & Health. They should be created so as: I. To inform and reassure smokers about the Industry's and B.A.T's achievements in the development of products herin9 constituents (ie. lowered or nil deliveries) which acknowledged authorities allege to be less injurious to health. At the same time, B.A.T. will make no specific claims for such products as being "healthier" as such. 2. To utilise this information on a competitive basis mld develop appropriate marketin~ strategies. 3. In consequence, to seek out all marketing opportunities which will reassure all classes of smokers that cigarette smoking can be pursued as a pleasurable ~nd rew~rdin9 hahi~, with certain "safeguards" as required by those consumers needing them, with personal benefits wherever these can be identified, and in situations which are resarded as socially acceptable by fair and reasonable men. 2. The First Conference This was held at Chelw~od in October, 1976 and attended by certain No.l's end Marketing Directors from North America, Australia, Europe, Brazil and the The result was that certain strategies and recommended action were arrived at, and subsequently endorsed by Millbank. These are attached (Marketing in the 8O's, I&.12.76). ]. Conference No. 2 This will be held at Chewton Glen Hotel, Hampshire from Sundayl 27th March to Friday, ist April inclusive. BAT Industries document for Province of British Columbia 13 November 2000 BAT INDUSTRIES ........... 00290430

Aims and Purposes These are substantially the same as those which governed the proceedings of the first Conference, ie. I. To review in depth changes in strategy which will affect the Companies and Units represented, in the light of the Group strategies agreed last December. (Report I~.12.76). 2. To make specific recommendations about new marketing directions for analysis, development and organisation. 3- To propose whatever consumer or social research is needed to provide the necessary extra information upon which to act. The conference is planned on the understanding that, following it, Asso- ciated Companies will retain their usual initiatives in determining their own marketing programmes. It is also recognised that, despite rapid communication ~/~d %he growing "internationalisation" of health evidence and publicity of kinds, attitudes to ~noking &~ ||ealth vary considerably from one country to another, ie. amongst officials and the public. Any ste.ndardisation, therefore~ of marketing practice is undesirable except, as appropriate, for international brands. The conference will be arranged so as: - to inform delegates about the main developments in the marketing of cigarettes, social changes, and the industry position in a number of countries principally affected by smoking & health activities. - provide opportunities for the exchange of the knowledge and experience acquired so far amongst delegates. - review prospects for the future re~arding the marketing situations likely to arise in the countries represented. - agree what priorities should be given to marketing innovations~ their timing ~d any organisational changes. - agree what assistance may be required from staff and technical resources at Millbank and Southampton. BAT Industries document for Province of British Columbia 13 November 2000 BAT I-~DUSTRIES .............. 00290431

Conference Summary The Conference will consist of a number of introductory talks and d/s- cussions given chiefly by "consultants" who were present at the first con£erence and will be available throughout the second. Talks will precede each of three mein projects, to be undertaken by four syndicates, and later presented by eac~ of them in general sessions. Project work is indicated in Section 6~ below. ~. Work to be undertaken prior to the Conference I) The attached report (I~.12.76) of the first conference should be studied. Preliminary views should be reached on what aspects o[ ~ecommended ... Action" withineach of the three Sections - or projects during the con- ference - should lead to specific activities related to a time-scale in each country. The possibility of Regional or multl-national work (eg. surveys) in the three areas should also be considered. 2) These first views on likely action will be brought up and discussed at the conference and need not be sent to Millbank beforehand. In order to provide background information from certain countries signi- ficantly affected by the Smokino & Health issue, summaries of evidence based on preliminary reports from Australia, Canada, Germany and the UoK. are also attached. These summaries are provided in order to assist dele- gates in their thinking about what action might be undertaken in their own countries. (Note: Further activities will doubtless follow from the first conference amongst its participants. Such evidence though not available at the moment may well be produced during the conference to assist project work). 3) - Delegates are asked to prepare a statement covering: (a) the present position on "Smokin~ & Health" in their countries (bearing in mind Group Strategies & Recommended Action, and the ~round to be covered in ~he Conference). - (b) an indication of the main prospects which lie ahead and the kind of problems likely to be encountered. These statements should be concise, but sufficiently comprehensive to assist the preparation of talks and syndicate work before the conference takes place. Please send them to PoL. Short so as to arrive in London not ~ater than Februar~ 28th. BAT Industries document for Province of British Columbia 13 November 2000 BAT INDUSTRIES .......... 00290432

6. Work to be undertaken at the Conference The ma/n procedure to be followed for each of the three Projects is as follows:= To study and discuss Group strategies and recon~nended action in the light of all information provided pre-conference and during the conference by speakers and consultants. To agree what action should be undertaken in defined marketing.. situations, locally or regionally, and what assistance may be required from the Centre. 3- To agree what ne__wactivities not covered in the Conference formally, may be undertaken in order to maximise efficiency in the marketing of cigarettes~ within the context of smoking & health restrictions and opportunities. As explained above~ the strategies to be studied and discussed in syn- dicates are derived from the Report (1~.12.76). The three Sections in that Report define the Projects, Project I : The Consumer: Research & Information. Project II : The Product, Communication & Goodwill. Project llI : Organisation (and Tactics) related to Smoking & Health Publicity. Further information on syndicate arrangements and work will be provided at the Conference. , 12..I.1977 BAT Industries document for Province of British Columbia 13 November 2000 BAT INDUSTRIES 00290433