Tobacco Documents Online

Phase Two Elaboration

Abstract

This internal Philip Morris Australia (PM) memorandum by Matthew Winokur of PM Worldwide Regulatory Affairs reveals a gold mine of corporate strategy to "head off regulations" in Australia. Winokur discusses PM's ownership of the Vegemite name, a brand strongly identified with Australia, and the Australian public's resentment of foreign ownership of the name. He discusses what PM may be able to do about it.

Adding to our already strong evidence that PM uses youth programs as tools to stave off regulation, Winokur identifies "concessions" that PM can use when negotiating with the Australian government, with one being "developing campaigns to prevent youth from smoking." Winokur says such a program "should be developed as ammunition if and when needed, since its clear that tobacco issues can move very quickly in Australia," saying "these shorts of projects [youth programs] could help 'move the needle.'"

Winokur considers using the Kraft General Foods name (KGF) to "help tobacco" in Australia, and considers whether doing so would "hamper KGF's agenda." He discusses which individuals could be recruited to help PM attack Australian Ministerial Councils "on the grounds that they 'waste taxpayers' money' and 'cost business.' "

Perhaps most tellingly, Winokur reiterates PM's strategy of broadening any debate on tobacco by shifting the focus off of health issues:

"The objective...is not only to create allies but 'shift the debate' from tobacco to broader issues and thus change the battleground. As long as we try to fight on the anti's agenda, we'll get nowhere."

Fields

Quotes

This memo is an attempt to develop our ideas further and put them into a structured plan with concrete elements and an identification of the resources and time required. The latter are quite tentative. But we need to start being specific. Phase two of the plan presents a long term strategy to change the social and political environment for PM in Australia. While it is characterized as the second of two phases, it should begin immediately. Phase two can be separated into three elements: a research/intelligence gathering stage, which can and should begin immediately, followed by a brief analytic/evaluation stage, and, finally, an implementation stage. Stage one - intelligence: PM needs good intelligence about its current operating environment in three areas before it can appreciate where it "needs to move the needle" from, to and how.

1. Corporate Image and Positioning: The company - through its name, its people and its products - is the most direct vehicle for communicating its message to various publics. PM must evaluate how those target audience currently perceive the company and its "faces" and on that basis evaluate what changes are needed. For example, is the company or the product "socially unacceptable" in the leadership circles of Australia? Is this irrevocable? In this context the company must also factor KGF into the equation. We must consider whether and how to link or leverage the KGF identity to advance the tobacco company's issues. It is also clear that the Vegemite name in particular represents special opportunities. It is one of best known brand names in Australia - if not the best - and effectively synonymous with Australians' identity. Although anecdotal, there is evidence that Australians resent the foreign ownership of a piece of its heritage. The flipside of this "problem" is that it offers an opportunity for PM to recognize that ownership and do something that re-identifies the brand with the nation...

2. Political Audit:

The company should undertake a political audit to ascertain attitudes to our immediate, e.g., pack lables and generics, and long term, e.g. commerical free speech, issues. This is being done on a case by case basis and seems to be serving the immediate objectives. But an audit, with scheduled updates over a long term horizon, needs to be done with respect to incumbents, candidates and party platforms. This intelligence willhelp identify our political targets...

3. Opportunity Audit:

This audit would attempt to identify a wide range of opportunities w hich the company would consider to improve its access to political and social establsihment in Australia. The audit should start in the center of a circle of influence and move outwards.

At the nucleus are the product associated activities directly "doable" by PM such as identifying "concessions" for government negotiations, developing campaigns to prevent youth from smoking and ensuring smokers are courteous. These should be developed as ammunition if and when needed, since its clear that tobacco issues can move very quickly in Australia. PM must do its homework ahead of time. And depending on the results of the corporate image and political audit these sorts of projects could help "move the needle."

--Moving out from beyond the center of the inner circle of tobacco but still under the PM umbrella is the whole issue of whether and how to use the KGF presence in Australia to help tobacco without hampering KGF's agenda. The Corporate image and positioning research will help clarify needs and opportunities in this area...

--Next out from the center one would identify indificuals and organizations whose commercial interests overlap with PM's. These would include our own trade association and other business associations who share free enterprise and anti-regulatory sentiments. An attack on the MCDS and similar Ministerial Councils on the grounds they "waste taxpayers' money" and "cost business" could fit in here. Legal groups would also fit here on the defense of trademarks issue. The circle would also include labor interests to the extent that the erosion of the industry affects factory and farm jobs. Appropriate journalists and select politicians should also be sought for this circle. The objective of this and the next circle is not only to create allies but "shift the debate" from tobacco to broader issues and thus change the battleground. As long as we try to fight on the anti's agenda, we'll get nowhere.

--The next circle of allies would be those who have ideologies in line with ours regarding commercial and individual free speech, personal choice, etc. Members of the bar who support free speech could fit here. "Libertad" is an example of an organization. Journalists and politicians should also be sought as spokespersons. Citizens and politicians who oppose the growing autonomy and power of the "Ministerial Councils" fit here as well. The circle can be enhanced by the creation of new groups, as well.

--Farthest from the center are the recipients of PM brand and corporate sponsorships. We should identify special cuases and pet projects of concern to the community. Funded organizations remain an important circle of influence in the community...

Stage Two - analysis and evaluation

The objective is to link the opportunities identified to the political machinery in a long term effort to create "political capital" and collatoral for the company to use. The stage will require almost a "retreat" mentlaity with all the key PM and trusted advisors setting aside a few days to assimilate the intelligence...

Stage three - implementation

This is clearly the most time consuming and labor/financial intensive stage of the plan. It is premature to identify details of this plan prior to the stages one and two...

Company

Philip Morris Australia

Author

#13434 (Winokur, Matt)

Recipient

PM Australia Team

Region

Australia

Litigation

Stmn/Produced

Named Organization

Kraft General Foods Inc. (A unit of Philip Morris, circa 1994)

A unit of Philip Morris, circa 1994

Libertad (3rd party mouthpiece for PM)

Used to support freedom of commercial speech. Group that shares ideas with Philip Morris (e.g., freedom from government regulation) that Philip Morris supported as a third party ally to help push their agenda.

Mcds

Mori

PM Australia Team

PMII (PM Int'l Inc.)

PM Int'l Inc.

Wirthlin

Type

MEMO, MEMORANDUM

REPT, REPORT, OTHER

Subject

corporate intelligence

public relations

brand image

food