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A Narrative of Key Events in the SOSAS Project Several names occur period~cally throughout this narrative. For brevity, initials have been used where ~ppropriate as follows: JP - Jim Peterson GH - Griff Harlow CT - Charles Tucker M~ - Max Crohn DD - Dennis Durden RS - Ron Sustana HC - Hudnall Christopher EJ - Edward Jacob RR- Richard Ryan TD - Tom Dillon WS - Willia~ Shinn "" March 1977 - On March 22, the first meeting of the National Commission on Smoking and Public Policy was held in Los Angeles. The purpose was to gather testimony from objective (though ACS hand-picked) witnesses regarding the danger of smoking. Seven more regional hearings were conducted in May/June. - On March 25, W. Hobbs met with Senior Management of his five agencies (TDpresent for BBDO) to brief them on the ACS "Target Five" program. A short term solution was discussed to send tobacco industry sponsored witnesses to the next ACS hearing. Nine longer term strategic solutions were also discussed. 0 0 0

-2- April_ - On April I, L. Light of BBDO presented the joint opinion and rationale of all five RJR agencies that industry sponsored witnesses should not participate in ACS hearings. BBDO recom- mended establishing a task force to develop a plan to confront longer-term problems confronting the industry. May - On May 2, L. Light presented 15 anti-smoking issues and possible responses to each of those issues. June - On June 3, HC forwarded RJR legal comments to TD regarding Mr. Light's "Issues and Answers" presentation. - A research study conducted in June 1977 by V. L. Tarrance indicated that the Tobacco Industry image was not particularly positive. The Industry was rated 5th of 5 and below both the Liquor and Oil Industries. - Focus groups were conducted by the Beaumont Organization in June to identify smoking-related issues and their relative importance to the general population. Irritation to non- smokers and non-smoker health were qualified as the t~.D most important issues. This study was managed byGH and also represented the first formal, advisory involvement by BBDO Research.

-3- ~ - Public Opinion Research was launched to identify major industry problems and possible positions of greatest appeal to general pub! !c. - On July 11, Agency Management (TD), Account and Creative Groups met with JP and HC in Winston-Salem to discuss overview of SOSAS project. August - On August 16, BBDO Account and Creative Groups were briefed on anti-~moking issues by RJR Legal and R&D in Winston/Salem. - In August 1977 BBDO prepared a summary of the history of pro- hibition to underscore the similarity of events leading to prohibition compared with current anti-smoking activities. - BBDO continued work on the development and refinement of basic concepts representing viable long-term SOSAS directions. September - Several meetings were held throughout September with PJR personnel to. review on-going basic concept progress.

-4- October - On October 21-22 the SOSAS retreat was held in NYC. The purpose was to review the SOSAS charter and objectives, share data developed to date, and firm up direction and priorities. Three research studies were also reviewed as follows: - Research was conducted by the Beaumont Organization to quantify smoking-related issues identified in earlier research. A major finding was that non-smokers' health emerged as a serious concern among smokers (51%) as well as non-smokers (7~%). Mmreover, smokers appeared to offer little resistance to further restrictions on smoking. - In-depth interviews were conducted by Civil Service, Inc. in early fall 1977 to relate smoking to various lifestyle segments in the general population. In general, this study suggested that the smoker is not perceived highly either by himself or by non- smokers. However, the study also showed that people dislike further government regulations except for the anti-smoking zealots who are uncompromising in their cause. - Results were also released of the Opinion Leader Research con- ducted by the Edelman organization. 'l"ne research consistc~ of ncigarette related" conversations with media, govenment, and corporate executives, i~ng the findings was that ~noking is becoming less socially acceptable and that a "courtesy" campaign was desirable. Opinion leaders generally placed little credence in the passive smoking issue.

-5- November - A nleeting was held on November 22 at BBDO with Mr. Shinn commenting on several SOSAS position statements. Based on these comments various positions were eliminated from future consideration due to legal considerations. - BBDO supplied several demographically acceptable test markets to Roy "Pfautch and the Edelman oranization. personnel further resticted this market list on the basis of the local press, severity of local anti-smoking climate etc. Tw9 test areas (Erie, Pa. and Des Moines, Iowa) and two matched control areas (York, Pa~, and Omaha, Neb.) resulted from this o process. BBDO reiterated its concerns with test marketing, stating that test markets would forfeit the surprise element. Also, measuring attitude shift over such a short time interval would probably result in inconclusive data. December - In a December 5 meeting with HC it was confirmed that BBDO's #I responsibility for all work would be the passive smoking issue. Also con~ents from Messrs. Crohn, Shinn, and Jacob would be incorporated into several alternative concepts prior to group sessions to be held later that month. - On December 13, concepts were finalized with RJR MRD in NYC ar~l the first focu-~ groups were conducted ~ New Jersey. - BBDO attended focus groups in Seattle on December 19.

-6- - BBDO attended focus groups in St. Louis on December 20. - From the focus groups four positions emerged as being most viable for future consideration: Non-Smokers' Health, Courtesy, Smokers' Right to Smoke, Additional Government Regulations. Tne first of these potential positions, Non-Smokers' Health, was judged to have the greatest promise. - Also in December, results were received from the Yankelov-ich Corporate Priorities Research designed to measure public policy pressure on business. The research was conducted among leadership people (government, media, financial) as well as the general popula- tion. High proportions of both population segments view passive smoking as a health hazard and see increased cigarette tax as the next public policy target. In general, there was little confidenoe in business with most people feeling that there'is an over-emphasis on profit at the expense of public interest. - In December BBDO was charged with identifying various service programs (fire prevention was among those suggested) for public relations purposes. The Agency forwarded its proposal and suggested some preliminary research to determine the potential downside of relating the tobacco industry (cigarette ~noking) with fire prevention. Tne public service program was later dropped from consideration. - In December RJR concluded that the "prime prospect" for SOSAS related projects should be the voter.

-7- January 1978 - On January ii, Mr. Califano (HEW) announced an ambitious govern- ment anti-smoking program. - BBDO conducted a hotline regarding Mr. Califano's statement on January 12. ReSults were that 72% were aware of this announcement; 56% on an unaided basis. Califano was personally identified by 21% of those aware. - Based on the December focus groups, ~DO began writing ads to the four basic poStioning statements. On January 24 a meeting was held in W/S with JP, where the Agency presented 24 print ads (3 ads each of 8 campaign ideas written to 4 strategies). MC supplied detailed Legal con~nents. JP invited the Agency to present the creative to Messrs. Sticht and Stokes in early February. - In January 1978 the Tobacco Institute tested two ads ("Good Green Land", "Tobacco Leaf") to determine their ability to generate a favorable attitudinal shift toward the industry. Tne ads w~re tested in "family" states and received directionally if not signi- ficantly positive results.

-8- - Also in January, a study was conducted by V. L. Tarrance in California to gauge attitudes toward a proposed California smoking restriction law. There was significant support for the law among ~11 segments sampled. However attitudes in favor of the law dropped as costs to the taxpayer increased. - On January 31, the National Commission on .~moking and Public Policy recommended a far-reaching anti-smoking program which was covered broadly by the media. February- BBDO conducted a hotline regarding this announcement on February i. 51% of the population was aware of the announcement. - Based on suggestions from the January 24 co_;my meeting and subseguent discussion at BBDO, creative develo~ent proceeded on i0 campaign ideas (5 of the original 8 from the January 24 meeting and 5 new ideas). These were shown to HC, GH, and RR at BBDO on February 2. At this meeting Agency Management (TD) presented 12 possible SOSAS positions and strategies that were considered for develo~nent. After reviewing the pros and cons of each position TD recommended one strategy ("Tobacco Smoke Does Not Cause Disease In Non-Smokers") as most likely to affect the outcome of present anti-smoking propaganda. ~e primary reasons for pursueing this strategy were twofold as follows: a.) anti- smoking forces are presently attempting to communicate that passive smoking is harmful, and b) if successful, a smoker could not then defend his position on the grounds that he is only hurting himself. The need for concise and believeable substantiation for the recommended strategy was underscored along with the need to reach voters on

-9- public opinion records as well as opinion leaders. Due to the strong anticipated counter-attack by anti-smoking forces, TD also reco~ended that the eventual SOSAS ad(s) be straight-forward and non-"slick" so that they would not give the impression of a Madison Avenue prepared campaign backed by substantial Tobacco Industry dollars. Additiona'lly, it was reconmended that t~he ads be tested under tight laboratory conditions to determine the degree of attitude shift that might be expected. TD suggested that.only then should test marketing be considered since a, formal test market might result in a counter-attack being started well before any SOSAS national effort, and thereby blunting the content of our message. - On February 2-3, W. McGuire, Yale Psychology Professor, reviewed the I0 advertising campaigns in NY with BBDO and RJR personnel. ~ne discussions confirmed several major principles guiding "issue" advertising and suggestions were offered to increase the communi- cation impact for certain campaigns. Further discussions were planned to subjectively reduce the number of campaigns for subse- quent testing. - Due to heavy snowfall in NYC, the presentation to Messrs. Sticht and Stokes was postponed until February i0.

-I0- - On February 9 the Agency reviewed this ~resentation with JP, DD, HC, and RS. Agency Management (TD) again presented the BBDO position on passive saoking. - On February i0, Agency Management gave a presentation of SOSAS creative develo~nent to date to the RJR Public Relations Management. ~ On February i0, a meeting was held with Messrs. Sticht and Stokes attending. A limited selection of SOSAS creative was presented (i ad each for 6 campaign ideas). Agency Management (TD) presented BBEO's position regarding how and why passive smoking should be the key SOSAS issue versus several other viable positions. Tne presentation was favor- ably received and general approval was given to refine the creative for eventual copy testing. - On February 14 BBDO conducted a hotline on the meaning of the word "disease." Conclusion: "Disease is what you can catch; what you do to yourself is not a disease." - On February 21 JP and HC updated the Tobacoo Institute on SOSAS progress to date. -- - On February 22 BBEO updated CT on SO~AS.

-ii- - On February 22 a meeting was held at BBDO between RJR Legal (MC, EJ, W~) and Agency Legal and Management to discuss and refine cop~ frcm the February I0 meeting. Among other things it was agreed that the basic "disease" claim must be qualified and that the Surgeon General "Warning" label would be required in SOSAS ads. - On February 23 BBDO updated Mr. R. Aurelio of Edelman Inc., regarding SOSAS creative. Agency Management presented its passive smoking position .~as weli as legal comments from the February 22 meeting. Mr Aurelio also reiterated the confirming Edelm~n position that all their research to date showed that non-smoker health was the root of the overall SOSAS issue. BBDO provided Mr. Aurelio with specific scientific quotes to aid in an Edelman white paper on the subject. - On February 27 Agency Management (TD) reported the Aurelio meeting to Mr. Ron Sustana by letter. - As a result of these meetings, subsequent conversations and corre- spondence, it was decided that BBDO should concentrat~ all creative efforts on the passive smoking issue in anticipation of impending cop~ research.

-12- - In February an Advertising Image Study was conducted by Peruzzi and Walzer, u~der the direction of BBDO, to gauge the perception of smokers as typified in cigarette ~dvertising. It was found that in general, people do not identify smokers with the positive attributes they relate to their friends. However, ~okers as portrayed in advertising are more likely than "actual" smokers to be identified as frier~s. March - On March 21 R~R r.~equested BB~O to re-consider "courtesy" as well as the "corporate profit" approach ar~ asked that work on these two areas be developed along with the basic passive smoking creative. - At a March 28 meeting in NYC, HC presented rationale for re-examining the "courtesy" position. HBDO presented creative in the passive smoking, courtesy, ar~ corporate profit areas. It was agreed to hold a ~rk session on April 5 to review how courtesy could be integrated with the basic passive smoking advertising. Additionally CT asked BBDO to develop SO~AS promotional ideas (e.g. carton stuffers). - ~ased on the March 28 meeting, BBDO forwarded revised "Corporate Profit" and "Basic" ads to CT on March 31.

-13- _April_ - A work session was held on April 5 with CT at BBDO~ New courtesy ads ("Look Before You Light") we.re presented ~ncluding small space ads, outdoor, and POP examples. Additionally several examples introducing courtesy into existing ads were presented, along with update~ promotional materials (booklets and carton stuffer "dunmies"). C~ requested revised copy for the courtesy ad, additional "booklets addressed to the family (i.e. employees, salesmen, growers), and examples of current ads .which included people. Tnese requests were developed and forwarded to CT in April. - On April ii Phase I of the Segmentation Study was approved. Tne Phase I objective was to identify and evaluate .key population segments relevant to the tobacco industry. - On April 15 correspondence from W. McGuire confirmed that attitudes can be changed on social issues through only one presentation of a persuasive communication. This input supported the BBDO research design for testing SOSAS ads. - On April 27 W. Shinn approved using "Health Hazard" in the basic ad. This ad (the California ad) would be tested along with the basic "disease" ad and courtesy ad.

-14- - On May 2, Edelman Inc. issued its rationale for no~t forming a Smokers' Alliance. The primary reason was that people consider the "right to smoke" argument as weak. - On May 16 a revised "California" (health hazard) ad was forwarded to CT. - On May 25 BBDO forwarded a s~mmary of secondary sources identifying problems ar~ opportunities in countering the alleged health costs and productivity.losses related to smoking. - Results were received in May frcm the Roper Study sponsored by the Tobacco Institute. ~"~,e study confirmed hhe L~portance of the passive smoking issue (2/3 non-.~mokers, 1/2 ~nokers believe) and the need for developing and publicizing medical evidence to the contrary. Additionally there appeared to be growing acceptance of more government involvement in the regulation of smoking. - Focus groups were conducted in May as a preliminary phase of the larger Segmentation Study. Tne purpose was to identify possible population segments against which to target future SOSAS efforts. No new information was obtained as the research could not identify any special group sympathetic to tobacoo industry positions.

June - Results w~[e received in June from the BBDO conducted copy research of 3 ads designed to shift public attitudes toward smoking issues. Tne more direct passive ~smoking ad ("Basic Disease Ad") caused large positive attitude shifts in the general population and direc- tionally positive shifts among opinion leaders. "Courtesy" had little effect in shifting attitude. - A second tracking of attitudes toward the proposed California s-noking restriction was conducted by V. L. Tarrance in June. Attitudes were still positive towards the restriction with the major issue being passive smoking. - Focus groups were also conducted in California to determine attitudes toward the "Clean Indoor Air Act." There was no general interest in the act among smokers or non-smokers, with most respondents regarding the act as nonsensical. - In June BBDO supplied representative media plans of a typical cigarette brand along with a prototypical plan of an advertiser targetting specifically at the teenage market. The purpose was to refute allegations that the industry was targetting its marketing efforts against youth to influence an early smoking decision. Tne tw~ suhnitted plans were significantly dissimilar.

-16- - In June BBDO supplied the sources cited by HEW as the basis for Mr. Califano's estimated costs of business productivity loss and increased medical expenses caused by smoking. - On June 20, a review of SOSAS research to date was cor~ucted in W/S with JP, DO, HC, MC, CT, RR as well as BSDO research personnel. - On June 28, ~R MRD suggested proceeding to Phase II of t~e Segmentation Study. - On June 29, W. Mc.Guire reported that he had reviewed the results of the attitude shift research of the three SOSAS ads tested. W. McGuire agreed that the methodology %Drked well and with the conclusion that the two "passive smoking" ads had sizeable attitude shifts while the "courtesy" ad was not particularly successful. July - On July 17 Agency Management (TD) addressed the Tobacco Institute and presented BBDO's position on why passive smoking was the key SOSAS issue over ii other viable directions. Additionally qD reiterated why the specific ads should be straight forward and "non-slick."

- On July 27 it was decided by eT and ~ to discontinue further work on the Segmentation Study since the expected value of Phase II information was not considered co.~ensurate with its cost. - In July BBDO developed three alternative SOSAS media plans at different budget levels with each targeted against adults involved in any public activity (e.g. voted, etc.). August - Results were received in August from the attitude shift research regarding the "Businessman" ad. Research results were directionally positive, but not.. significant. - On August 18, the Tobacco Institute instructed BBDO to release the "Basic Disease" ad ~ Intermedia for the purpose ~ ~ting it under "real world" conditions. The ad was run in' newspapers in E1 Paso, Tex., and Madison, Wisc. for a one month period (2 inser- tions per ~ek). ~sults were inconclusive since the ad only ran one month and generated only 7% awareness. - On August 9, at Dr. Colby's request, HBEO forwarded a review of secondary sources and studies relating to the effect of cigarette advertising in creating brand sw~tching versus category expansion.

-18- - A third tracking of the proposed California restriction was conducted in August. Attitudes were still positive towards the restriction, but attitude was amenable to ~change if meaningful arguments against the restriction could be communicated. Additionally it appeared that passive smoking as an issue can change attitude, but still may not change behavior (i.e. voting intention). September - In September 1978 a Tobacco Forum was held by several Sou£heastern Congressmen to provide public documentation of passive smoking medical facts, me press generally downplayed the Forum and its expert testimony "due to the fact that family legislators were conducting the procedure. - In September BBDO supplied a correlation analysis between deflated cigarette advertising expenditures and per capita cigarette consumption over the last twenty years. The purpose of the analysis was to refute allegations that cigarette advertising increased consumption as opposed to the industry's 6ontention that advertising was intended to differentiate among brands. The analysis showed virtually no correlation between advertising and consumption.

-19- October - At a meeting on October 3 it was reaffirmed to discontinue the Segmentation Study. Information still desired from the Study by Public Affairs will be gathered by more specific research designs. - In early October, results of attitudinal research conducted by Civic Service among the "family" were presented. Basically RJR employees do not differ significantly from the general population regarding attitude towards SOSAS issues. However it was decided to undertake an educational effort among PJR employees.