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I= Grey Pacific Facsimile Trinlmltlll TO ATTENTION : FROM COPY BATCo Stsines Jeremy Cook Carol Cheung J Remblszewskl - BATCo Staines P C O'Keeffe - BATCo 8talnee I H a~ - BATCo SlaJnes R Miler. BATCo China. T Gvery-Bums, M Vallon - BATCo IlK R Cameron, L 81 - MTC P. McPh~I- STC R Edwarde. Grey London Deval, B Barnes -Grey Paclllc V Chart - Grey I-long Kong J Burbddge,B Tam - Grey Malaysia DATE : 10th May 1993 PAGE(S) : 5 SUBJECT : KENT REGIONAL BTL CONCEPT (11 ~ hive q ~ ~ B I1te44~, iMelme t Uo I •10-11Ill ~r fix 81 0-7141 ) Dear Jemmy, In the bdeang session to Patrick in Hong Kong, I took the opportunity to present to lain, Patrick and BATCo-HK a regional BI"L concept for KENT. To maintain concerted efforts In the region, we need a viable medium that has: Unlverm~ appeal ~st defies regional baxrlers Cafmbilty of creating e.mpathy among oom targets - 6af..~..~ versallilty to sallsfy regional demands and in bring out tho desired brand qualities PotentlaJ to spin-off marketing/event opportunities - Intrlrmio value that can help sustaJn long-term Interest • Music" 18 identified to be the best vehicle that can fulfil the above prerequisites because musk: is clynamlc and trendsettlng in style. It • ;'arlecta Ule ¢uitu,~, ~.r~)ir~tions'ccK~; Ii,'estyle'@~t Is most popular at ~h~, time among meaa publk;. Due to its unlvemal appeal and positive influence among target smokers, | "d IGIl{ |Sil'll'G M01~ U'I Q Q O Q r~

rrmny keyptiyers in the region are engaged in "Music" activities e.g. Marlboro, Salem, Mild Seven st(=. But none of them can claim ownership of "MuslO', they either own a product (e.g. Marlboro'e Red Hot Hits in Hens Kong) or an event (e.g. Salem Power Station Event - Bobby Brown Uveln Matiyila, Mild Seven IN-Concert in Hens Kong). There iu'e still opportunities opened to us to develop a distinct programme which will grow itself into a KENT property on regional basis. Key differential factors ~re tormat ;rod execution which can be made unique to Kr:NT. The same argument could apply to *Sports'. Both Marlboro and Salem are into "Tennle" in a b,g way, but ooneumem would recall and Identify themselves with the particular event but would not label "Tennis" as an ~xcluelve property of Marlboro or Salem. In sum, I think you will agree with me, there is about in broad sense three types of activity that me available for cigarette marketing, i.e. sports. musk: and oulture. Culture would never work among the oonsumars in thls part of the world, therefore music and sports are well occupied by most brands. KENT. ~u~ one of the key pl&ysrs, must enter these oamps and come up with & new angle on music. The proposed concept is more than Just • sponsorship event, It is a shared event el"sated for KENT and its end users. KENT consumers are ~)vlded the opportunity to partlcipnte In creating 8 unique event for NT - "KENT Music Creati.on., I wdte the song for my favoudte m'tlstel The winning musk: pieces will be published by WEA, produced in music video and broadcast on electronic medium. This execution point of clifferenoe will provide a outting edge for KENT and 18 ownable In the long run. It will able enhance KENT's Image ss - U'enclsetter because KENT is taking the Imid to recognise local musioal talent,=. When come to mass participation, we can organlse consumer vodng of Top Ten KENT songs or KENT Music Video, KENT Music Video promotions In night outlets, consumer sides promotion with KENT Musk: Merchandise orKENT Exclusive CD Collection of winning songs. The mass psul|©lpatlon will no doubt provide us ~rnple opportunities of generating it smoker database for pereonaJ ¢ommunlcaUon in the future. in order to make our BTL programme a su¢csr,8 In the region, we aJso need an Integrated and common approach that will build top of mind awmeneu and provides clarity of communication. It means we need to dcvs~p an umbmlle=theme.anc~.oommon, brmtd[r~g dovlce, undo. the. umbrella theme. The theme and the brajrcllng device will provide a focus for communic=tion, for KENT, for the trade and for our consumers. The brandlng device, If end when properly estsbllshed via an upfront end ¢ *d 6¢=|¢ t661"l|'S WO~d (.n o Q o o

4e coordinated programme that overtly features the umbrella theme, will generate Immedfate recognition among target smokers and will become a good oommuni~tJon tool for POS and Inetore merotmndise. The theme and branding device which I Included in our concept proposal Is not final. We used it to demone~ate the benefit and function of an umbrella theme. Ideally the theme should be able to - Integrate with the KENT brand character support the AT[. sb'atogy - clifferentlste KENT from competitor's e.ctlvity reflect the brand style ~ncl very Importan~y, it ahou[d be tangible for communications. Though the theme is not finaJ, it has potential to be further developed: Bmmd on the I-long Kong learnings, the Sun War Yet P~ theme(Mild aria Smooth Style of KENT) succinctly communicates thatKENT.is the mild choi~ and hmB successfully started the momentum to Improving KENT's ~lve eal and Image with the target market trend -- the younger and more smokers. Followings are some CMM figures for your reference: SWYPFor YaueaWareness (alcled) 12% ('91) to 28%(130%(12/92)2/92) Popular 17% ('91) to 20%(12/92) Dynaxlnk~ 4% ('91) tO 6%(12/92) International 15% ('gl) to 18%(12/g2) The Hong Kong exporlence shows that the "5W"(P" theme Is a very useful property to adopt in all an)as of our BTL activities and adv .erti .sing (e.g. Mu6lo, Motodng and Movie, a series of BTL programme In lasz 61 In the case of product. "SWYF'" means mild (or quarter 1992). ild (or gght} • and imooth good tobacco taste. In the case of I~NT BTL advertising, "SWYP" le lifestyle. Our smokers are successful people who have_sb/le and flair. They ideo have a more "lighthearted" approach to gfe. ~rney know how to envy life. "SWYP" oan be fashion, as In fighter ooloum, and lighter tabdr.~ like cot.tons and silks. "SWYP" can be muslo, ss on summary sounds of modern POP and Jazz. Most of all by using the "8WYP" theme to bul~ our brand Image, we ere oommunloatlng "Mild or Light good mate'. The "SWYP" bmndlngdevlce was used extensively In elf BTI. edvertislng, venue decoration, POS and in store merchandise. They all worked together well under the same theme and seems tobe quite effectively in generating awareness. The simple logistics rose en~-'curagod good consumer.re~;ponse~ e.g..over.25,000 responses for . the 8WYP Motoring event, and about 50% are net names added to the existing smoker database of Hong K0ng. ) *d II;¢¢ £661"II'| XOiJ (.9"I 0 o O O J~

a -- -. - ..... 8 Once again, Jeremy, I am not saying that this Is the. final recommendation. This I~ an opportunity that we can further exploLt and develop bmmd on the positive learnings from the Hang Kong market. Exec'JJtiOn is the most Important success factor to this B'I'L concepL But before we proceed any further, we have agreed in the Hang Kong meeting that unless Ihe concept Is broadly accepted and liked by OpCos, further development for oreatlve and execution would be s waste of time and money.Wlth the blessing of lain and Patrick, I have presented the concept to BATCo China and MTC (I visite, d MTC office on Lest Tuesaay) I received positive response from the region, however an absolute go or no go would still depend on how we can make it work for KENT. I have found myself a working partner on the project, Bob Miller and hle team will asslst us on refining the programme. Together we wlll further define the BTL obJecUves and provide answers to the followings with speolflo focus on Chlna. - How can we achleve the objectives? - How can we do it within the practicality of laws and regulations? - How can we sustain the consumer interest? - How can we make it relevant to our target smokers? Areas of expIo[tatlen Include: - ATL opportunities: TV sponsorship vehicle, in exchange of them=tio airtime Fladlo Oponeorahip New~oaper advertising for programme events Outdoor option for event - BI"L q;~;)rtunltleu; Night OUtlet promotions "rie4n with looal entertainment scene ~r~eVenW, IntwnaUonal, regional or Iocai in high trafflo department store and shopping mall F, rm~otions P.R. even~ targeted at operational level of the trade eta. etc. Key criteria are RELEVANCY, PARTICIPATION AND INTERACTION. Tim Every-Bums of BATCo Hang Kong also commented that: - t=ve~ ¢o.rnponent of the BTL programme must have mass appeaJ Me~. an=ca must be logically s=mple Io generate mass Involvement Ana every oomponant must have potential to tie-In ~th consumer sales. G "d llt¢~ [iit'lt'G MOMd L~ 0 0 0 O

JUL. Q --@ There is obviously no major difference in terms of expectation between each Individual markets In the region. I believe the |olnt effort between Grey and BATCo China will be benefloisJ to everyone and is probably the most time silk:lent way to handle the development process as China Is our largest potential market In U~e region. The trnmedla4e next step thai we have agreed is the lead agency BTL team (G.r.e,/_ Hong Kong and China) will provide a shopping list of Ideas ¢md a~ivitlea that severed ell the area~ of exploitation by this Friday. If we are convincm:! that the ideas are workable aJn¢l can answer our obied~es, we will then move Into the second stage of cost evaluation. Creative end execution development will follow if the working team agree hat this BTL project can be Incorporated in the 'g4 Brand plan. In order • to meet the submission deadline of I=tmnd plan hy JtJly 1993. we will arrive at a collective view on the appropriateness of this BTL concept by end May. I hope I have answered most of Jimmi's concern, please let me know if you l~ve any further comments. Will keep you Informed of the project progress. ~ Cheung "4 tlls ¢¢ 2661 "'lit "g M014 0 0 0 0