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PROJECT III. COMMUNICATIONST GOODWILL AND THE SOCIAL ACCEPTANCE OF SMOKING SUMMARY OF MAIN CONCLUSIONS ORGANISATION FOR PUBLICITY " 1. Each company should have a stated policy on Smoking & Health matters. 2. There is a minimum need for a specialist to be employed fu11-time on SmoklnE & Health publicity. This senior manaEer would lead a SmokinE & Health Group. The establishment of closer relationships, effective contribution and commitment between departments would best be formed through this Action Group. ~. The Company Chairman must be overall responsible for Smoking & Health° The specialist for Smoking & Health publicity must have access to the chairman to react quickly. It depends on each company whether this manager is part of marketing - or PR - department. A budEet for SmoklnE & Health publicity must be considered in the company plan. Recommended Activities Give urgent priority and take the initiative for reassurance communication through: a) paid articles in the mass media ¢ontentratinE on those with large clrculstions or audiences~ b) Produce and distribute company or industry publlcations of high quality° c) Appropriate information for our own employees, shareholders, the trade and supplierso d) Gain the support of other non-tobacco industries. BAT Industries document for Province of British Columbia 14 November 2000 BAT INDUSTRIES 00290474

We must achieve a balance of an aggressive, convlneinE approach w£th the oautlon ~hat comes from eoa£nE the risks £nvolvod. 3. Action must be taken to find out the boneflts of smoking and communicate them not only to counteract our enem£te but to reassure our friends. ~. Most important is to act rather than react in order to pre-empt the antl-smoklng lobbyists. 5. In advertising we must avoid encouragement of Smoking & Health anxiety. Communicate the product plus in the interest o£ market share. We must learn to llve with the conflict of constituent reduction and smoker reassurance. GOODWILL I. The company's most valuable asset is house and brand goodwill. ExlstinE goodwill must~ therefore, be fostered and improved to meat future market needs and always be up-to-date. 2. Where exlstinE house or brand goodwill does not, today or in the medium term, fit new brand positioning oppor- t~mitles~ completely new brands/goodwill should be built up. THE ROLE OF MILLBANK The role of M~llb~nk should be:- ~. To establlsh ~roup Policy. ~ 2. Initiate and ¢o-ordlnate research into the benefits of smoking with priority to social acceptability. ~. Gather, analyse~and communicate important world-wlde smoklnE and health data and its implications under the appropriate establishment. 28.20.76 Project Chairman: G. Uhe BAT Industries document for Province of British Columbia 14 November 2000 BAT INDUSTRIES 00290475