Jump to:

Anne Landman's Collection

Corporate Affairs Plan

Date: 25 Nov 1987
Length: 9 pages
2501254715-2501254723
Jump To Images
snapshot_pm 2501254715-2501254723

Abstract

This 1987 Philip Morris (PM) draft planning document outlines how PM planned to influence tobacco-control activities European and Middle Eastern countries. It reveals that

"Philip Morris and the industry are positively impacting the government decisions [on tobacco issues] of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE through the creative use of market specific studies, position papers, well briefed distributors who lobby, media owners and consultants..."

Philip Morris was also concerned with smoking and Islam, because the Islamic religion apparently prohibits smoking. In response to this major impediment to sales, PM planned to:

"5. Work to develop a system by which Philip Morris can measure trends on the issue of Smoking and Islam. Identify Islamic religious leaders who oppose interpretations of the Quran which would ban the use of tobacco and encourage support for these leaders."

planned to "drive" the thinking of scientists on the health effects of secondhand smoke

Fields

Notes

View the document at http://tobaccodocuments.org/landman/2501254715-4723.html?display=i

This document is also available at http://www.pmdocs.com/getallimg.asp?if=avpidx&DOCID=2501254715/4723

Quotes

CORPORATE AFFAIRS PLAN

REGIONAL OVERVIEW

It remains a key priority to use the Corporate Affairs Function to promote and defend vigorously our business interests. As set forth in our 1987 long range plan, our success in doing so relies on one or a combination of the following factors: human resources, argumentations & market intelligence, credibility and political clout, and the assistance of PMI and PM USA.

Our progress towards this goal also depends on our ability to address successfully

--The fundamental issues

* Primary : "Turning the other cheek" on this issue undermines our credibility, our political effectiveness and limits smokers' confidence.

* Secondary (ETS): Uncertainties about the new USA strategy need early resolution.

* Addiction * Paternalistic authorities and limits on freedom of choice.

--Laws and regulations * Tax levels and structures along with price controls. * Product legislation and testing * Marketing freedoms * Smoking restrictions

--Smoking acceptability trends amongst smokers and nonsmokers.

While significant progress against plans has been achieved, it is also apparent at this stage in the development of the Corporate Affairs program that certain weaknesses still exist. A majority priority will be to address these weaknesses in a concerted manner. They include:

--Building human resources

* We are recruiting a Corporate Affairs Manager for Turkey, specialists in communications and lobbying for the Scandinavia/Finland area, a communications specialist for Switzerland and a lobbyist for the GCC [Gulf Cooperative Council Countries]...

*Together with R&D/S&T [Research & Development/Science and Technology] we will expand our dialogue and working relationships in priority markets with the officials who govern product guidelines and testing.

* We will recruit consultants with political credibility, experts in welfare economics and ETS whitecoats in Scandinavia/Finland and Switzerland, and supplement Dr. Almoran outside of Saudi Arabia in the GCC.

--Strengthening arguments and communicating our messages.

* Major issues which require better argumentation include the primary [health] issue, maximum constituent levels, addiction, and Smoking and Islam. The effort to develop these will be led by the Industry Issues Manager.

* Achieving our objectives for these issues and others will depend on the effectiveness of our ability to communicate Philip Morris' views directly, via coalitions and through third party spokesmen. We will measure our success and track shifts in public opinion, including inter-alia extending the General Consumer Surveys...

...AREA & MARKET SPECIFIC PLANS

GULF COOPERATION COUNCIL COUNTRIES

Philip Morris and the industry are positively impacting the government decisions of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE through the creative use of market specific studies, position papers, well briefed distributors who lobby, media owners and consultants such as Dr. Abdullah Alomran. These actions have defeated initiatives such as an advertising ban in Kuwait and have delayed and amended proposals such as the tax increase. But we will need to expand our resources and commitment in order to win on key issues including the tax level/structure and product legislation...

...3. Lobby against further restrictions on marketing freedoms.

* Work closely with the Kuwaiti media owners to maintain the effective opposition to the anti-tobacco proposal of the minister of Health, Dr. Al-Wadi, who is seeking to ban advertising and sports sponsorship, and to mandate severe smoking restrictions. In cooperation with the organizations which are supported through sports sponsorships, publicize the benefits via the Pan Arab and Kuwait media.

* Creatively market throughout the GCC the Children's Research Unit study on juvenile smoking initiation which has been completed during 1987 in Kuwait.

* Together with Radius/Leo Burnett and Tihama, build and strengthen GCC chapters of the International Advertisers Association as a coalition which can fight for market freedoms. Where possible Philip Morris will join and participate in the national Chambers of Commerce and we will support our Distributors activities in these chambers.

...5. Work to develop a system by which Philip Morris can measure trends on the issue of Smoking and Islam. Identify Islamic religious leaders who oppose interpretations of the Quran which would ban the use of tobacco and encourage support for these leaders.

6. Recruit a consultant who can help us monitor and influence the Alexandria-based WHO office which helps prepare GCC health plans.

...SCANDINAVIA/FINLAND

....3. Continue to drive the ETS issue.

* Work closely with S&T and John Rupp of Covington and Burling to complete the first phase of recruiting and activating the Nordic ETS whitecoats. Support their efforts to drive the thinking of their colleagues via articles and comments in the scientific literature through presentations during symposia. Develop their ability to testify persuasively in government hearings and to generate positive stories in the popular press...

...*Support the Hen-Ry Courteous smokers organizations in Denmark and organize related groups in Finland and Sweden. Develop advertising programs to support courteous smokers' movements....

* Organize a LIBERTAD national chapter in Sweden and Finland.[/b>]

Company
Philip Morris
Author
N/A (Presumed corporate author, Philip Morris)
Recipient
N/A
Region
Turkey
Switzerland
Scandinavia
Finland
Saudi Arabia
Bahrain (Middle East)
Qatar (Gulf Council Country (Middle East))
Kuwait (Middle East)
Oman (Gulf Council country, Middle East)
United Arab Emirates (Middle East)
Type
REPT, REPORT, OTHER
Litigation
Stmn/Produced
Named Person
Alomran, A.
Alwadi
Ashi
Aubort, J.D.
Cantonal, V.
Dhabi, A.
Kotb
Lepennen, A.
Marafi
Marcovitch, I.
Mohammed, G.
Romanens
Rupp, John P. (TI Communication Committee, Covington & Burling lawyer)
TI Communication Committee
Salonen, H.
Schweri, K.
Stuhl
Wild
Zuerer
Operation/Project
Project Whitecoat (Scientific Witness Project)
Global project to recruit respected scientists in developed countries around the world who would criticize the science on secondhand smoke, cast doubt on whether ETS harms people and "prolong the controversy" about the effects of environmental tobacco smoke on nonsmokers.
Smokers Rights Groups (Organizations set up to promote "smokers rights")
Organizations set up by Philip Morris throughout Europe and in the United States to help defeat anti-tobacco legislation, smoking restrictions, etc.
Named Organization
Arab Gulf Health Ministers
Asfc, Assn Swisse Des Fabricants De Cigerettes
Bahrain Ad Hoc Comm on Standards
Bat, British American Tobacco
Battelle Inst
Burrus
Childrens Research Unit (Created studies for the tobacco industry)
Chidrens Research Unit, run by Glen Smith, created studies in multiple countries around the world, all of which concluded that advertising of cigarettes had no influence on youth smoking initiation. The industry paid Smith to conduct these studies and marketed the results throughout the world.
Coresta, Coresta
Covington & Burling (Tobacco Industry law firm)
Tobacco industry law firm. Was involved in organizing the Whitecoat Project.
Cru
Danish Parliament
Denner
Dgd
Din
European Airline Assn
Federal Commission on Tobacco
Finnish Amer Tuppaka
Finnish State Medical Board of Health
Ftr Project Team
Ftr, Fabriques De Tabac Reunies S.A.
Gallaher Limited/Gallaher Tobacco Limited (Irish tobacco co controlled by American Brands)
Sells Benson & Hedges, Silk Cured and Berkeley cigarettes in the U.K. in 1991
Gcc Secretariat
Gulf Cooperation Council
Gulf Health Ministers Council
HEN-RY (Smokers Rights Group, Northern Europe)
Iata
Intl Advertisers Assn
Intl Flight Attendants Assn
International Standards Organization
Leo, Leo Burnett Agency
Libertad
Ministry of Health + Social Affairs
Nma
Nordic Airlines
Nordic Council
Nordic Duty Free Assn
Nordic Industry Working Group
Nordic Nma Working Group to Address Ets
Parliament
PM US
PM-Eec, PM-Eec
PM-Eema, PM-Eema
Pmi, Philip Morris International
Radius
Rettig
RJR, R.J.Reynolds
Rothmans
Saso
Saudi Arabian Ministry of Commerce
Scientific Advisory Comm
Secretariat of Gulf Standards Org
Subcommission for Tobacco Chapter of Foo
Suleyman Exhibition
Swedish Tisc Comm
Swiss Cafe Restaurant Assn
Swiss Federal Council
Swiss Ministry of Finance
Swiss Natl Standards
Swiss Price Surveillance Office
Swiss Public Health Office
Swiss Team of Ets Whitecoats
Tekel
Tihama
Tobacco Caucus
Tobacco Farmers Rehabilitation Fund
Turkish Tv
World Health Organization (Concerned with global public health)
International organization concered with public health worldwide
Subject
marketing
marketing strategy
taxation
legislation
lobbying

Document Images

Text Control

Highlight Text:

OCR Text Alignment:

Image Control

Image Rotation:

Image Size:

Page 1: itj32e00
(7) .COL F t CORPORATE AFFAIRS PLAN November 25, 1987 REGIONAL OVERVIEW It remains a key priority to use the Corporate Affairs function to promote and defend vigorously our business interests. As set forth in our 1987 long range plan, our success in doing so relies on one or a combination of the following factors: human resources, argumentation & market intelligence, credibility and political clout, and the assistance of PMI and PM USA. Our progress towards this goal also depends on our ability to address successfully : -- The fundamental issues Primary :"Turning the other cheek" on this issue Secondary (ETS): undermines industry credibility, our political effectiveness and limits smokers' confidence. Uncertainties about the new USA strategy need early resolution. Paternalistic authorities and limits on freedom of choice -- Laws and regulations ~ Tax levels and structures along with price controls ~ Product legislation and testing * Marketing freedoms ~ Smoking restrictions -- Smoking acceptability trends amongst smokers and nonsmokers While significant progress against plans has been achieved, it is also apparent at this stage in the development of the Corporate Affairs program that certain weaknesses still exist. A major priority will be to address these weaknesses in a concerted manner. They include : -- Building human resources. ^ We are recruiting a Corporate Affairs Manager for Turkey, specialists in communications and lobbying for the Scandinavia/Finland area, a communications specialist for Switzerland and a lobbyist for the GCC. This year we recruited a lobbyist for Switzerland and a communications specialist for the GCC. * Together with R&D/S&T, we will expand our dialogue and working relationships in priority markets with the officials who govern product guidelines and testing. X We will recruit consultants with political credibility, experts in welfare economics & additional ETS whitecoats in Scandinavia/Finland and Switzerland, and supplement Dr. Alomran outside of Saudia Arabia in the GCC. 25Q1254?15
Page 2: itj32e00
Strengthening arguments and communicating our messages. * Major issues which require better argumentation inc primary issue, maximum constituent levels, d ct o and smoking & Islam. The effort to develop these will be led by the Industry Issues Manager. ~ Achieving our objectives for these issues and others will depend on the effectiveness of our ability to communicate Philip Morris' views directly, via coalitions and through third party spokesmen. We will measure our success and track shifts in public opinion, including inter alia extending the General Consumer Surveys. The effort to implement effective communications strategies and programs will be led by the Regional Manager of Communications. -- Pursuing Philip Morris' interests in ISO & CORESTA ~ The immediate objective is to win adoption of the DIN Vornorm test method for channel-ventilated cigarettes without jeopardizing existing test methods for conventional cigarettes. Growing out of this effort will be the infrastructure and contacts in national standards bodies with which Philip Morris can protect the company's and the industry's future interests. * The project team driving this effort is composed of EEC & EEMA staff members and is led by PM EEC Operations. PMI is organizing a team of technical and corporate affairs experts from the other Regions and in the U.S. to work in cooperation with this project team. EEMA's issue priorities are broadly speaking the industry's priorities worldwide. However as each market has its particular characteristics which impact on the evolution of our business, any determination of priorities must consider the importance, urgency and achievability of the objective. Priority markets are determined by the immediate and long term threat or opportunity for our business in the market concerned, and the potential spillover that could arise from developments on an issue in an individual country or area. A matrix built upon these points sets the following market and issue priorities: GCC -- Tax level/structure, product legislation, marketing freedoms and smoking & Islam. Switzerland -- Tax level, price control, ETS, marketing freedoms and product legislation. Finland -- Tax level/structure, ETS and product legislation. Sweden -- Marketing freedoms, ETS and smoking restrictions. Turkey -- Tax level/structure, price control, marketing freedoms and product legislation.
Page 3: itj32e00
AREA & MARKET SPECIFIC PLANS GULF COOPERATION COUNCIL COUNTRIES Philip Morris and the industry are positively impacting the government decisions of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE through the creative use of market specific studies, position papers, well briefed distributors who lobby, media owners and consultants such as Dr. Abdullah Alomran. These actions have defeated initiatives such as an advertising ban in Kuwait and have delayed and amended proposals such as the tax increase. But we will need to expand our resources and commitment in order to win on key issues including the tax level/structure and product legislation. Our priority strategies and action steps include: 1. Pursue the strategy to moderate and postpone the customs duty increase to 50% and ensure that all GCC member states adopt a high minimum specific duty of at least SR 40/000 in the 50% duty scenario. * Guide and support Dr. Abdullah Alomran in his dialogue with the GCC Secretariat, the Ministers of Finance and the Customs Directors. Identify additional nationals of other member states who will act as consultants on tax and other tobacco issues. * Cooperate with Rothmans and Gallaher in an effort to strengthen the forces in the UAE who are resisting GCC tax increases and thereby preventing a GCC consensus agreement to harmonize tobacco taxes. Continue to support our UAE Distributor and his business partner, the Foreign Minister, with arguments and studies. * Use this period when GCC Finance Ministers cannot agree on increased tobacco taxes as an opportunity to lobby in Saudi Arabia to increase the minimum specific tax to SR 24/000 within the 30% scenario. Support our Distributors in a renewed drive to persuade the other GCC countries to adopt a high minimum specific tax within the existing tax incidence. ~ Lobby the GCC Customs Directors to permit duty drawback on goods which are destroyed. 2. In the area of product guidelines our intent is to prevent further reductions in the maximum constituent levels and disclosure of additional constituents, achieve fair cigarette testing and require Barclay to print DIN numbers on its pack. * Help SASO complete their cigarette testing laboratory by March of 1988, continue to train their technicians, provide the laboratory with operation manuals, supply them with the monitor cigarettes with which to calibrate their smoking machines, and conduct a cooperative split sample testing program with SASO. ~ As SASO is the GCC member of ISO and the Secretariat of the Gulf Standards Organization, we will cooperate with SASO to conduct training seminars for Gulf testing officials, provide expert advice for tobacco standards and commission research projects to educate them on relevant issues, e.g., ingredients and constituents. rr
Page 4: itj32e00
* Consult officially with the Saudi Arabian Ministry of Commerce on their development of cigarette testing facilities in Jeddah, Riyadh and Dammam during 1988. Continue consultations on testing with Kuwait's Dr. Marafi.and Qatar's Dr. Kotb. Actively participate in Bahrain's Ad Hoc Committee on Standards. Provide expert advice to Mrs. Abdulah in Oman and in the UAE/Abu Dhabi to Dr. Gadir Mohammed who are planning for laboratories in 1989. * Lobby Dr. Ashi and the Gulf Health Ministers' Council to organize a scientific advisory committee composed of government and industry scientists which will provide expert input in advance of the Ministers' decisions. * Persuade the GCC Health Ministers to advocate a ban on sales of cigarettes in packs of 25 through the concerns expressed by Dr. Al-Wadi and Dr. Ashi. * Utilize the successful efforts in Bahrain, Kuwait and Oman to prevent Qatar and the UA$ from adopting the Saudi Arabian regulation which requires producers to print the month as well as the year of manufacture on the pack. Then lobby Saudi Arabia to amend their import specification to eliminate this requirement. * In Qatar and the UAE; fight for the right to print the warning label on the side of the pack as achieved in Bahrain, Kuwait and Oman. Continue to lobby for an adequate attribution for the label. 3. Lobby against further restrictions on marketing freedoms. * Work closely with the Kuwaiti media owners to maintain the effective opposition to the anti-tobacco proposal of the Minister of Health, Dr. Al-Wadi, who is seeking to ban advertising and sports sponsorship, and to mandate severe smoking restrictions. In cooperation with the organizations which are supported through sports sponsorships, publicize the benefits via the Pan Arab and Kuwait media. * Creatively market throughout the GCC the Childrens Research Unit study on juvenile smoking initiation which has been completed during 1987 in Kuwait. * Together with Radius/Leo Burnett and Tihama, build and strengthen the GCC chapters of the International Advertisers Association as a coalition which can fight for market freedoms. Where possible Philip Morris will join and participate in the national Chambers of Commerce and we will support our Distributors activities in these Chambers. 4. Continue to educate Dr. Ashi about the Ajman manufacturing facility and persuade him to lobby the Arab Gulf Health Ministers for a resolution which bans tobacco manufacturing in the GCC. At a minimum ensure that locally produced product does not enjoy any preferential tax treatment. 5. Work to develop a system by which Philip Morris can measure trends on the issue of Smoking and Islam. Identify Islamic religious leaders who oppose interpretations of the Quran which would ban the use of tobacco and encourage support for these leaders. 6. Recruit a consultant who can help us monitor and influence the Alexandria-based WHO office which helps prepare GCC health plans.
Page 5: itj32e00
SWITZERLAND A gradual anti-tobacco trend continues in Switzerland but opponents have not yet developed professionally managed, well financed organizations. However, the threat to our business is substantial and sufficiently immediate that it is critical to build a Philip Morris corporate affairs program in Switzerland that complements and supplements that of the ASFC (NMA). We will make a sustained effort to strengthen the NMA during the plan period and will specifically: 1. Carefully monitor the activities of the Swiss Price Surveillance office in order to understand its precise methodology. Enlist the support of the DGD (customs administration) and the Ministry of Finance in discussions with the Swiss Price Surveillance office. 2. Lead the industry in negotiating the Tobacco Law revision. Maintain the current specific/ad valorem ratio and avoid increases in incidence. Push for resolution of the indigenous tobacco issue regarding quantity, price and absorption obligations and develop the growers as a more effective ally. As this process may last until 1990, delay a final agreement as long as possible. 3. Lead the industry in the revision of the Food Law and particularly the regulations to implement this law. While the seven member Swiss Federal Council will decide the final wording of the regulations, the Federal Commission on Tobacco will make initial proposals. The national Public Health Office (OFSP) will seek to influence the Commission's recommendations by advocating tax increases, restrictions on marketing and sales, requirements to list additional constituents on the pack and maximum limits for these constituents, and harsher warning labels. As this Federal Commission begins work in 1988, work in close cooperation with the members representing the ASFC, growers, trade and advertisers to ensure that our viewpoint is well documented and is being communicated persuasively. Enlist the support of the Tobacco Caucus in Parliament to influence government officials who are commission members. 4. Either persuade Mr. Karl Schweri, the owner of Denner, to withdraw his initiative which seeks to ensure freedom of pricing by the trade or actively drive the coalition (beer, chocolate, milk, & tobacco) opposing the "Denner initiative" to ensure voters defeat it during the referendum scheduled during June, 1988. 5. Via Philip Morris' membership, lobby the Subcommission for the Tobacco Chapter of the Foodstuffs Manual to adopt the DIN Vornorm for testing channel-ventilated cigarettes. Maintain a good working relationship with the Vaud Cantonal Chemist, Dr. Jean-Daniel Aubort. Together with Burrus' Dr. Wild work to obtain the agreement of Dr. Zuerer, the Director-General of the SNV (Swiss national standards body) to also have the SNV adopt the DIN vornorm.
Page 6: itj32e00
6. As BAT appears unwilling to make a settlement in the Barclay legal case, ensure that the plaintiffs present a strong case for adequate compensation without jeopardizing the tobacco cartel's cohesion. 7. Creatively utilize the PM-led agreement within the ASFC to build momentum for addressing the ETS issue by: ~ Supporting the ASFC's new scientist, Dr. Romanens to counter scientific information in the media and in government deliberations. ~ Having Dr. I. Markovitch together with Burrus' Dr. Wild & RJR's Dr. Stuhl develop a Swiss team of ETS whitecoats. * Developing the Battelle Institute in Geneva, together with S&T, as one which can conduct and publicize indoor air quality studies. Driving the ASFC's cooperative, four year program with the Swiss Cafe/Restaurant Association which permits the industry to educate and activate their members and customers in opposition to government mandated smoking restrictions. * Ensuring that the amendments to article 17 of the Federal Labor Law do not unnecessarily restrict smoking in the workplace. 8. Work to finalize the industry agreement on detailed action plans and resources with which to: * Conduct annual consumer surveys to track trends in the social acceptability of smoking and to refine action plans which impact these trends. * Recruit more members for the 21 member Parliamentary "tobacco caucus" and stimulate these members to persuasively communicate industry views to the Parliament. Integrate these allies into the early warning system. %~ Refine the media press service so that credible answers to inquiries are presented in a timely manner. An important part of this effort will identify friends and opponents in the print and electronic sectors of the media We will also create a project team in FTR to study the feasibility of developing the computerized capability of communicating directly with Swiss citizens for the purpose of communicating corporate and brand related messages, as well as influencing public opinion.
Page 7: itj32e00
SCANDINAVIA/FINLAND The Nordic Council countries are Denmark, Finland, Iceland, Norway and Sweden and they have a well earned international reputation for anti-tobacco activities. For years the tobacco industry was reluctant to oppose such measures or publicly confront opponents, but since 1986 this attitude has begun to change dramatically. Motivated by the deteriorating ETS trend, the industry has organized for the first time a Nordic NMA Working Group to address the ETS issue. Competitors and our business partners are hiring corporate affairs staff specialists and are reviewing plans to strengthen the NMAs in each market. In Denmark following the defeat in Parliament of a severe anti-smoking bill, the industry has launched a pro-smokers organization, HEN-RY, which is encouraging courteous smokers to fight for their rights. To stimulate and build upon this effort, we will: 1. Work with Amer-Tuppaka in Finland to amend the ad valorem excise tax structure and increase the specific element to 90%, and include roll-your-own (RYO) and pipe tobaccos is a phased program to equalize the tax burden over all tobacco products. * Exploit Heike Salonen's personal relationship with the Minister of Finance. * Retain BAT in the coalition supporting this tax proposal. * Make concessions to Rettig should it be clear that our tax proposal cannot be adopted without their support. These could include: a commitment not to use the lower tax on premium brands to reduce the price. a provision in the license agreement to be negotiated with Amer-Tuppaka by which some of Philip Morris' volumne would be contract manufactured in Rettig. 2. Prevent the adoption of penal levels of taxation to force down cigarette consumption, as currently advocated by the Minister of Health and Social Affairs. This proposal also calls for the removal of cigarettes from the cost of living index. ~ Lobby the Minister of Finance to avoid the inflationary impact of higher cigarette prices, particularly for the lower income classes. ^ Alert the labor movement of the implications and consequences of tampering with the cost of living index, which is included in the formula for many wage adjustments. X Disprove the charge that smoking is a social burden on society and therefore a justification for higher taxes. Conduct and exploit economic welfare studies with reputable and credible Finnish economists.
Page 8: itj32e00
2. Utilize Amer-Tupakka's political clout, our new consultant Annuka Lepennen who was formally head of the smoking section of the government laboratory and possibly Rettig to persuade the State Medical Board of Health and the Ministry of Health and Social Affairs to amend Finnish test methods by including the DIN Vornorm for channel-ventilated cigarettes. Defeat efforts to modify any other elements of the testing protocol. Prevent further reductions in maximum constituent levels. 3. Continue to drive the ETS issue. * Work closely with S&T and John Rupp of Covington and Burling to complete the first phase of recruiting and activating the Nordic ETS whitecoats. Support their efforts to drive the thinking of their colleagues via articles and comments in the scientific literature and through presentations during symposia. Develop their ability to testify persuasively in government hearings and to generate positive stories in the popular press. * Publicize the "EUREKA" research completed in Finland, Sweden and Norway which clearly demonstrates that employees and employers overwhelmingly desire to decide on smoking rules without interference by the government. Ensure that these studies are communicated to and used by members of the trade union movement in their negotiations with officials and employers. Build with unions and employers' organizations a cooperative program regarding workplace smoking rules and workplace safety in general. Include ACVA studies of specific locations, including the "Gun Palm" building. * Cooperate with the Nordic airlines to conduct in-flight air quality studies and organize an IFAQ seminar for airline executives, the European Airline Association and IATA. Use the relationships developed through the support of the International Flight Attendants Association to lobby airline executives. * Support the HEN-RY courteous smokers organization in Denmark and organize related groups in Finland and Sweden. Develop advocacy advertising programs to support courteous smokers' movements. 4. Lead the NMAs in the fight to protect marketing freedoms. * Lead the Nordic-based tobacco manufacturers in a sustained lobbying within the Nordic Council to defeat the advertising ban proposal. * Market the CRU research completed in Sweden and Norway. Monitor the deliberations of the Swedish TISC Committee in their application of the advertising rules. * Organize a LIBERTAD national chapter in Sweden and Finland. 5. Continue to lead the effort to strengthen the NMAs and the Nordic Industry Working Group. Become a member of the NMA in Finland. 6. Actively participate in the Nordic Duty Free Association. the right to sell our products in duty free and expand the purchasing allowances. Protect .
Page 9: itj32e00
Turkey r Smoking and health activities are beginning to emerge in Turkey although they are modest in comparison to the situation in the Nordic and Arab Gulf areas. The threat of adverse developments primarily relates to Tekel's inexperience in addressing corporate affairs issues and the fact that the international manufacturers have not yet gained a suff icient political presence in the market. Our priorities are guided by the enormous opportunities which this market represents and they are: tax level/pricing/structure; preserving marketing freedoms and addressing product guidelines and testing. During the plan period, we will: 1. Recruit and train a Corporate Affairs Manager. This individual will initially focus on identifying and developing relationships with the leaders of the "seed to market" elements of the Turkish tobacco industry, learning about the decision making process of the government and building relationships with the decision makers, and seeking opportunities to cultivate quietly a positive corporate image for Philip Morris. Particular care will be taken in developing relations with the leaders of the tobacco growers. r 2. Work with Tekel and other manufacturers to develop an effective NMA which is professionally staffed and adequately funded. 3. Lobby the government for maximum investment incentives and investment protection measures, as-well as for a shift in tobacco excise taxation to a higher specific to total tax ratio. Minimize the earmarking of tax for the Tobacco Farmers Rehabilitation Fund. While total excise tax incidence is moderate by European standards, at 57% of retail price, there is a high ad valorem component of the tax (on average 91% of total tax). The resulting multiplier generates a considerable opportunity for price competition and increases the impact at the retail level of recouping increases in the manufacturer's cost base. 4. Persuade the government to eliminate price differentials among the international premium segment brands. 5. Work with Tekel to persuade the government to adopt the ISO test method for conventional cigarettes and the DIN test method for channel-ventilated products. Ensure Barclay is not able to use the 1 mg. tar claim. 6. Use the knowledge obtained from the General Consumer Survey to prepare an assessment of the social acceptability of smoking in Turkey so that action plans which are tailored to the market can be implemented. Creatively market the Turkish CRU research. 6. Cooperate with TEKEL and competition to obtain government permission for an attribution on the warning label. 7. Maximize final benefits of the Suleyman Exhibition with publicity for the contest winners, having Turkish TV run our Suleyman film and generating stories following the exhibition closing which highlight the positive results for Turkey.

Text Control

Highlight Text:

OCR Text Alignment:

Image Control

Image Rotation:

Image Size: