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PMI Marketing Conference - 900000 'corporate Affairs' by John Dollisson Vice President Corporate Affairs International 900621 - Naples, Florida

Date: 21 Jun 1990
Length: 16 pages
2500120138-2500120153
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Abstract

In this 1990 speech by John Dollison (Vice President of Philip Morris' International Corporate Affairs Department) before a marketing conference, Dollison clearly describes public health as PM's opponent in a "guerilla war. " He describes public health officials as "snipers" who have "laid their minefields," and even makes biblical references to the fight: "Our opponents sit and wait, watching our every move, every new product and every new marketing project... Like the proverbial lion in the Bible, they are poised to devour us whenever we give them an opportunity, and sometimes even when we don't....Today we are engaged in a "war" against our industry... The kind of war we are engaged in is a guerrilla war.. the most difficult kind of all. Our enemy might not be invisible but it often seems that way. Their tactics are to hit and run and then hit again...They have positioned their snipers and laid their minefields it is the job of Corporate Affairs to discover where these threats are,and to warn you."

In a bold and revealing description of PM's under-the-radar corporate tactics, Dollison boasts about how PM created and completely controlled a supposedly "independent" coalition called "The Committee for Freedom of Commercial Expression" in Denmark to oppose a tobacco ad ban directive. Dollison boasts about how this coalition was able to convince no less than the Danish Ministry of Health into opposing a tobacco ad ban, lists other countries where PM has used this secret tactic, and proposes that PM expand this tactic further to other countries:

"In Denmark, for example, we have created a coalition known (in English) as the Committee for Freedom of Commercial Expression...we were able to recruit more than 50 prominent Danes...The group has conducted media briefings, participated in debates, and written articles and conducted and publicized an opinion poll...Members of Government (including the Minister of Health) now regularly...consult with coalition members...The coalition was instrumental in securing the commitment and public declaration of the Minister Of Health to oppose an advertising ban...And, finally, the functioning of the coalition is managed at arms length - distanced from P.M., although completely controlled by P.M....We have set up similar coalitions in Holland, New Zealand and EEC for sport. Many more are required..."

Dollison also describes how voluntary, self-imposed "advertising codes" (which, he admits, make no more concessions than PM has already made in most countries in which they operate) help deflect further restrictions on tobacco advertising:

"What I am talking about is a list of self-imposed [advertising] constraints which will enable us to more plausibly claim the high moral ground in future controversies and, not least, to more easily manage and possible triumph in future crises...Such a regime, effectively implemented and sold, I believe, have the inestimable advantage of repositioning Philip Morris in the world-wide debate over the rights and wrongs of tobacco. It would gain us support from those with no affection for our enemies but who also harbour deep suspicion of our motives and methods. It would give us just that little bit more breathing space, just that little bit more room to maneuver. Believe me, we need it."

Fields

Quotes

Our opponents sit and wait, watching our every move, every new product and every new marketing project... Like the proverbial lion in the Bible, they are poised to devour us whenever we give them an opportunity, and sometimes even when we don't. Sometimes it is not even a matter of what we actually do... but what our opponents can make of what we do - through media ambushes, distortion of evidence, exploitation of images, etc. etc...

...This brings me to our job in Corporate Affairs defending marketing freedoms. To achieve this two key elements are required:

We've got to build the necessary political opposition to stop further marketing restrictions; and

We've got to ensure we market in a responsible manner so that we don't unnecessarily bring on advertising regulations...

...Today we are engaged in a "war" against our industry. And I use the word "war" advisedly. The kind of war we are engaged in is a guerrilla war...the most difficult kind of all. Our enemy might not be invisible but it often seems that way. Their tactics are to hit and run and then hit again. They are expert at hitting when we least expect it. The damage they inflict at any particular time is limited but, cumulatively, they have the capacity to inflict what could add up to a fatal blow. They have positioned their snipers and laid their minefields...it is the job of Corporate Affairs to discover where these threats are,and to warn you...Where possible, we try to knock out the threat or at least devise escape routes so that we avoid disaster and live to fight another day.

...It's also the case that our survival rests increasingly on how our marketing skills adjust to changing political situations. It also turns on the ability of Corporate Affairs, with your help, to market the ideas of freedom and tolerance which will enable our marketing to continue.

...The first element of our defense of marketing freedomes is to built the necessary political opposition to stop restrictions...

[We] foster geniune third parties or coalitions to support marketing freedoms. In Denmark, for example, we have created a coalition known (in English) as the Committee for Freedom of Commercial Expression. We were able to recruit more than 50 prominent Danes, including a leading Constitutional lawyer, the President of a major brewery, a leading Danish writer and philospher and a well known architect. The group has lobbied, conducted media briefings, participated in debates, and written articles and conducted and publicized an opinion poll which showed more than 70% of Danes opposed the EEC Advertising Directive and any move to ban tobacco advertising. What tangible results has this produced? The coalition was probably, the single greatest factor in securing Denmark's neutrality on the Directive at the Council role in May. The coalition was instrumental in securing the commitment and public declaration of the Minister Of Health to oppose an advertising ban. The coalition and its ideas have attracted substantial and positive media coverage and editorial support...Why is it successful? The answer is simple, even if the execution is not. First, its members have no economic self interest in the industry or in whether or not tobacco advertising is permitted or banned. Second, each individual is credible and well regarded within their respective fields...And, finally, the functioning of the coalition is managed at arms length -- distanced from P.M., although completely controlled by P.M. We have set up similar coalitions in Holland, New Zealand and EEC for sport. Many more are required ....

Company
Philip Morris (Altria Group)
Author
Dollisson, John A. (PM Asia Corporate Affairs VP (Asia/Australia))
Corporate Affairs, PM USA. Held this position from October 2, 1989 to October 1, 1990, when he resigned.
Recipient
Employees of Philip Morris' marketing departments
Region
Canada
New Zealand
Thailand
Latin America
Africa
France
Belguim
Spain
Morocco
Turkey
Brazil
Argentina
Spain
Denmark
Holland
Named Organization
American Cancer Society
Antitobacco Network
Comm for Freedom Commercial Expression
Corporate Affairs Group
Eec, European Economic Community
European Community
Iaa
Intl Journal of Advertising
Intl Org of Consumer Unions
Intl Publishers Assn
Leo, Leo Burnett Agency
Pmi Marketing Conference
Pmi, Philip Morris International
Public Interest Advocacy Centre
Visnews
Who, World Health Org
Litigation
Stmn/Produced
Named Person
Connelly, G.
Holmes, O.W.
Kennedy
Type
SPCH, SPEECH, PRESENTATION
Subject
advertising
advertising activity
advertising campaign
advertising industry
advertising message
advertising restriction
advertising to youth
Front groups
Political participation

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bCC.uimU, iu uy UiLu 1uLu a way divWlu il, dilc..i, u11It1, 1T possible, to use the constraints imposed, through creativity and bit of lateral thinking, to our advantage. While we must be aware of what has gone on before, we must now focus our minds on the future and the enormous and exciting challenges that the future holds. Simply put, I believe these challenges can best be met and turned to success if we demonstrate a much greater awareness / and sensitivity to the realities posed by the very tough political environment that we're in. I am continually asked by the media whether we have : one marketing strategy for the West, and one for the developing world. I respond by saying we have one marketing strategy all over the world, be it the U.S., the Philippines or Nigeria. Sometimes the advertising media available in these country's differs. But it would be nice to back that up by providing a Philip Morris code of marketing practice which each and every one of us in the room abide by in every corner of the world. What I am talking about is a list of self-imposed constraints which wi.ll enable us to more plausibly claim the high moral ground in future controversies and, not least, to more easily manage / and possibly triumph in, future crises.
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Many of you already have seen codes but they are country spec' 'c. In order to be effective, such a code would require strict adherence throughout the PMI regions. Its contents would basically reflect the concessions we have already made in various countries to governments threatening legislative ' 'tations and bans. Such a code should contain 5 parts: First A clear company policy stating that we don't market or sell to children or non-smokers. This is easy to say but more difficult to articulate. What after all constitutes a child? At what age is it ok to start talking to our consumers? Sixteen? Eighteen? Twenty one? ; Second A clear direction on the media we use, that is only legally available media, with a primary adult audience. This should include statements on the positioning of billboards, etc.
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Third A clear statement on the content of advertising to ensure its not encouraging non-smokers or children. Again not easy. As Oliver Wendell Holmes said -"I can't define pornography, but I know it when I see Fourth AA clear direction on our sponsorship activities (type of events, brand and company exposure, coverage, etc.) Fifth Our policy and program on trademark. infringements i.e. candy cigarettes, Marlboro kites, notebooks, etc. Everyone in this room knows how vigorously we pursue the illicit use of our trademarks. Now we must ensure others know and aggressively publicize our iniiiatives in this area. The difficult job is °° g in the details for each of these parts. That is something that requires considerable thought, time and effort. If you agree, I suggest a group from International Marketing, legal and Corporate Aff airs commence this proj ect. -13-
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Such a regime, ef f ectivel.y implemented and sold , would I believe, have the inestimable advantage of repositioning Philip Morris in the world-wide debate over the rights and wrongs of tobacco. It would gainn us support from those with no affection for our enemies but who also harbour deep suspicion of our motives and methods. It would give us just that little bit more breathing space, just that little bit more room to maneuver. Believe me, we need it. In thinking about our future marketing practices / we should also agree on a position on the following sensitive areas: 1. Brand divers' 'cation advertising. Here I would suggest that any brand divers' 'cation used should be a legitimate and justifiable business in its own right. 2. Vending machine placement. As you know, the Mayor of New York banned vending this week. The issue is the subject of a number of congressional Bills in the U.S. and also a hot issue overseas. While I appreciate the difficulties in West Germany and Japan, we should aim for placement in supervised locations. -14-
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I Sampling. A very ettective tool to encourage trial and brand switching, but a sensitive public issue. Once again, location is important, as is some proof of age. 4. Placement in films. I understand that its now our policy not to participate if funding is required. The marketing code of practice and indeed these sensitive marketing areas need careful consideration if we are to improve public and legislative opinion on our practices. I believe those who will rise to the top in marketing from now on... will be those with the creativity and cleverness to not only avoid the minefields and the ambushes set by our adversaries, but learn the trick of turning adversity to advantage. Given the onslaught our industry has been subjected to over the last two decades, particularly in the last seven or eight years, we should be getting much tougher, and smarter. Remember, the legendary brilliance and strength of the diamond is attributed to the sustained pressure it has endured under the earth. In the same way PM can, and wi11 reflect the same brilliance:
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PAUSE Given the sobering nature of my words - a story on another code of conduct - This time - school conduct...

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