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BZOUN & WILLIA>ISON - LOt~ISV[LLE OOC[~'IENT CONTROL P~OJECT DR ~i~;ER RO. OP A[4E~ / Iri'f}I SHEET ITE~I !JO. ( ) COI'Y ALL DOCU?!ENTS. m ) COPY 3)~LY OOCU)E}{IS I)~ ORANSE PILE F@LDEff5. ( ) COPY O[[Lk E, OCL~-E)~S I>f BE71,,}~E); CRaFt'{IF PrLE ~OLOERS.

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DOMESTIC MARMETING LONG-RANGE" OBJECTIVES PURPOSE This document su~arlzes Brcwn ~ Williamson's long~range strategies for ~ts exlstlng domestic brands. OVERVIEW : Marketing'$ overall objeztlves for the Established Brands continue to bc joint maxim~zatiom of brand sha;e and long-range proflt Contribution. Thls objective will be m~n~eed through twD basic stra%eg1~s: ~. Product NBint~nanr~ or crem[3on of brand s~yles in'all marker segment8 in which a given brand may, e~fee%ivel[ com@~e. 2. Image Management Develop and maintain brand Images~hat efficlmntly attract new smokers to each bra~i;£ Brsnc~$se'a~d reinforce existing franchise brabd loyalty. Each brand's short and long-range objectives are ~esigned ~o fulfill these two overall marMetln~ strategies ~ ,Individual lon@-range brand objectives follow.

-2- ( L ( BARCLAY Overall Ob~ectlve Establish 5har~ dominance of the Ul£r~ low-tar segment. Product Stra£eqy Utilize Grooved fllter technology tc offer a full range of superior Ulhra low-t~r products in both Kings ~nd 100's/Regular and Menthol styles, as well as Regulsr Box. ~m~qe MaDaqement Stratecy Develop and maintain a distinctive brand personality based on the "summary pleasures of smoking" which ~mcInde ~ combination of p~r~onal reassurance, ~m attractive confident sel£-imaq~ and ~ sense of p~rson~l style. This brand image ~ill be presented to consumers at investment s~ending levels through media, promotion and publicity at ~pemding levels that will g~er~te high ~e~ess, trial ~nd i~ce registration. BELAIR Overall Ob~ectlve H~it market share decline and restore lonG-term growth. Product Strateq3~ Position BELAIR as a true 10w-tar menthol with products that are smoother, milder and better-tasting than relevant competition. Im~qe Manmqement Stratecy Position BELAIR as a supeFior light,refreshing low-far and provide a mat~r~, remantic, attractive image that embraces the em0t~onai needs of older tradltlonal females. Ex@cution of these strategies will includm; -- i. E~amination of bmand nomenclature: "Lights" vs. "Ultrm" in 1982. ~. Utiliz~tio~ of the couPOn as a ~efens~ve ~oo] to r~tdlD f~aric~li~e ~n~ok~rs. 3. Advertisin~ support levels commensurate with brand sha~e u~less and until investment spending can be jusfmfled with ~arkefplace test results. O O

-3- / ".9 ) Overall Obiective Reduce rate o~ market-share decline leadinc to share st~biliza~ion. Product Stra~e~ Postion MOOL styles in all maior se~ents which deliver more menthol taste an~ refreshment than competition. In 1982, this array will include Plains, Kings and 100s, ful|-taste, new KOOL Lights and KOOL Ultra Li~htso The latter to be introduccd in the fourth quarter of 1981 and the first quarter of 1982 respectively. liF~qe Man~qe~ent Strateq¥ Postio~ KOOL as the epito~,e of menthol sa£isfaction at e~ch tar level add ~rovide a c~it~m~ra~y,attractive, pan-racial ~ge which embraces the emotional neeas Of young a0ult ~Fokers. Throughout the ~ore~eeable future, ~he~e strat~g~ will b~ suppu~ted by: Music-based advertising ~hat will be consis~ant across all KOOL styles. 2. Integr~t~ p~e~gin~ format. 3. Utilization of ~on-~roditional media and publ~city usin~ a ~usic them~ to reach le~s literate prlme pros~ts an~ r~nforce bra~d imagery. B~dget~ry support at 1~st ~qu~l ~n ~ per case b~is te ~alem. ) RALEIGM O~erall Ob]ectlve Reduc~ r~t ~ of luarket-sh~r~ d~clin~ le~ding to ~h~rc stabilization ~nd lon~-ter~ ~o~th. Product Stra%e~ R~p~ent RALEIGH i~ the Plain, Full Tast~ a~d Lights segments with ~roducts that del1~er h~her taste and s~tisfacti~n ~vels versus primary competition. In addition, the brand will evaluate cre0tion of ~ RAL~I~I] Ultra product b~s~d on market potenti~l consonant with RALEIGH's hcritng~. C% O

-4- RALEIGH (cont'd) ) ) Imaqe Manaqement Strategy Position R/ILEIGH as the uJtlmate in non menthol taste and s~ti~facti~n delivery at each tar lev~l and provide an i~age of dignity, independence and traditional masculinity which embraces the emotional needs Qf the brand's traditional values prime p~o~pects. During the period, RALEIGH will be supported wlth programs that include: i. Line-consistant advertising utilizing 2. Line-con~istant packaging: to b~ ~evelmped. l. Non-traditional ~e~ia and puhlic±ty (rodeos ~nd truck pul[~) t~ re~cb prJm~ prospects and ~einforce brand imagery° 4. Utilization of the coupon as a defensive t~ol to retain brand framchise. 5. Mar~eting investnL~nt ~guiv~l~nt t~ bzdnd ~h~r~ of market pending demonstration of brand vitality and justification of investment spending° SPECIALITY TOBACCC PRODUCTS Omerall Objective Maximize long-term profitability ana participation in industry growth segments, Product St rat eny i. Optimize profitability of existing product lines without reduction of product quality. 2. Develop diff@rentiaLed p[oduct~ to @n:er existin~ gro~h secments; moist snuff, soft-plug chewing tobacco, loose-leaf chewing tobacco. 3. Develop new products for new ~arket segments as they are created or emerge. Image Management Strategy These will be individually tailored for ~ach existing or new product introduced int~ the li~e. Sales Strategy Create a r@source outside B&W field selling organization t~ support Speciality Tobacco Products in the marketplace. O O O

-5- ) VICEROy Overall Obiective Reduce rate of market-share decline. Proauct St~teqy Maimtain presence in the Full Taste and Lights ~eg~emts with the pos~ibilit~ of d~ eddition of ~ Ultr~ low-tar product after VICEROY's image management strategy (work~nq) has been defined and effectively executed. ~anaqeT~ent (workinq) Stra%eqy Position VIC~/qOY as a milder full-delivery product at each tar level which provlde~ a dependably satisfying smoking experlenc~ fo: s~ke[~ wh~ hay@ o[ identify with traditio[al work ethics, white coll~r, middle-clBss velues. These strateqies will be supported by ~he following @l@m@nts; ]° Marketing spending at a trend-maimte~ance level ~ntil greater potential has b@@~ d@monstrated through testing in the marketplace. 2. AdYertls~nq and prDmotlon programs which apply to all styles in the VICEROY lin~. E.T.P. /mr O

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D BARCLAY 1982 PLAN Table of Contents ) I. BACKGROUND SITUATION AppRAISAL II. PLAN EXECUTIVE SUMMARY III. SALES AND SHARE FORECAST AND ASSUMPTIONS IV. MAJOR PROBLEMS AND OPPORTUNITIES V. KEY MARKETING OBJECTIVES AND STRATEGIES A. Creative/Positioning B. Target Audience/Media Selection C. Promotion D. Copy Allocation/Style Support E. Ethnic Marketing F. Product G. Research Needs VI. SPENDING PRINCIPLES AND RESOURCE ALLOCATION VII. RECOMME~;DED BUDGET VIII. EXHIBITS i 7 Ii 12 14 14 15 16 ~0 21 22 23 29 29 ~0 _) -,/

-i- C • I. BACKGROUND SITUATION APPRAISAL A. MA~L~ET S~A~E Total Family vs. Key Competitors - National MSA 1980 I~de× vs. Jan-M~y Index Jan-May rand "" S0~ Y~ar~ 1981 S0M vs. 1980 1981 S0~ BARCLAY .04% - 1.06~ n/m I0.16~ Car]ton 2.52 (104) 2.29 (9l) 21.96 True 1.76 ( 93} 1.60 (91) 15.34 Triumph ,40 (174) .50 (125) 4.79 tent III 1.26 (143) 1,19 (94) 11.41 Ca~rldg~ ,26 ,28 (108) 2.68 ~it Ultra .01 .53 n/m 5.08 iem Ultra .37 - .62 (16~) 6.94 ~Dtaqe Ultra .76 (422) .TS (10d) 7.4B Wlnston Ultra .08 .62 n/m 5.94 Now .74 (137) .66 (8S) 6.33 Dorai II .25 (74) .30 (12C) 2.69 Total ULT 8.45 (131) 10.43 (123) ]00.00 BABCLAY ~s the fourth largest ultra low %at in the perlcd Jan-May 1981. Car]ten haK experienced a dec1~ne in the f~rst five months Of the year. ~LT ~@ment growth has been fueled by n~w product introductions. BAPCLAY has acccunted for BI~ of the segment's growth, 1980 total y~ar vs. Jan-May period 1981. O C~ O