Abstract
In this January 1988 speech to the Philip Morris (PM) Australian sales force, John Dollisson, head of PM Corporate Affairs Australia, describes the company as "at war" with public health advocates. On Page 13, he describes the sales force as "our most effective weapons" in that war. Dollisson displays extreme contempt for public health authorities, to the extent that he calls them "Meusli-eating, stool-watching joggers who know what is best for all of us."[Page 2]
Dollisson describes the strategies PM has employed to defeat public health efforts in Australia: funding lawsuits against the government, supporting a "spontaneous" smokers' rights group, finding ways around state advertising bans, running their own ad campaigns during national "quit smoking" campaigns, using strategic sports sponsorships to deliver audiences to favored politicians, forming a "business/liberty group" to "defend freedoms and question the legitimacy of anti-business groups," giving away gold "Benson & Hedges" pens actually worth $10 that customers "perceive" as being worth $50-60, and much more.
In reviewing the industry's losses in the region, Dollisson complains "Worst of all, the government obtained approval to increase tobacco taxes by 5% to fund health campaigns, including ant-smoking campaign, i.e., we are funding our own demise." Talking about a successful advertising ban, he says, "That's not to say we will sit back and take it. We will be pursuing amendments, extensions, legal challenges, changes of government, etc., and most importantly stopping its spread to other states."
Dollisson ends his talk by listing what he perceives are the major threats to the industry. At the top of his list are "health claims." At the bottom: "industry/smoker legitimacy."
This document shows PM's contempt for public health authorities, and how the company fought public health efforts in Australia
Fields
- Quotes
BELIEVE IT OR NOT, THE WORK OF CORPORATE AFFAIRS IS VERY SIMILAR TO THAT OF SALES, OUR WAR IS NOT WITH THE COMPETITORS BUT ANTI-SMOKERS, ANTI-ADVERTISERS AND THE LIKE - THE MUESLI EATING, STOOL WATCHING, JOGGERS WHO KNOW WHAT IS BEST FOR ALL OF US. OUR PRODUCT IS A POINT OF VIEW, IDEA OR INFORMATION ON ISSUES OF LIBERTY, FREEDOM TO MARKET, ROLE OF THE STATE, INDIVIDUAL HEALTH, ETC. OUR CUSTOMERS, WHILST LESS CLEARLY DEFINED THAN SALES,
INCLUDE POLITICIANS, THE BUREAUCRACY, THE MEDIA, BUSINESS, UNIONS,TRADE ASSOCIATIONS, THE INDUSTRY AND THE PUBLIC AT LARGE. OUR TOOLS ARE WORD OF MOUTH, ADVERTISING, THE MEDIA, BRIEFING PAPERS, ALLIES, LETTERS, PAMPHLETS, BROCHURES, TELEPHONE, INDUSTRY EMPLOYEES, SMOKERS AND HOPEFULLY THE PUBLIC AT LARGE.
JUST AS OUR CUSTOMERS AND OUR TOOLS OF TRADE ARE LESS CLEARLY DEFINED, SO ARE OUR MEASURES OF PROGRESS. WE RELY ON PUBLIC OPINION, NUMBER OF SUCCESSES, MEDIA SPACE ON INDUSTRY ISSUES, DEGREE OF SUPPORT FROM THE MEDIA, THE BUREAUCRACY AND MP's. LIKE YOU, WE HAVE TO FEND OFF OUR COMPETITION, THE ANTI-SMOKERS, AND BUILD UPON OUR SHARE OF THE MARKET...
[From Page 5]:
IN ADDITION TO THIS WORK WITH THE TOBACCO INSTITUTE, THE MAJOR PROACTIVE ACTIVITIES OF PHILIP MORRIS CORPORATE AFFAIRS GROUP INCLUDE:
STAGING AN ANTI-QUIT SMOKING WEEK CAMPAIGN FEATURING THE
RETURN OF SIR WINSTON CHURCHILL TO LAUNCH THE SMOKERS BILL
OF RIGHTS, THIS CAMPAIGN GAINED CONSIDERABLE POSITIVE
PRESS COVERAGE AND TOOK THE INITIATIVE FROM THE ANTI-SMOKERS, THIS INITIATIVE WAS SUPPORTED BY SAMPLING
GIRLS ALSO HANDING OUT COPIES OF THE BILL OF RIGHTS AND
BUMPER STICKERS...
RESPONSE TO ATTACKS BY CAMPAIGNING ENTREPRENEUR AND
AUSTRALIAN OF THE YEAR, DICK SMITH, FOLLOWING HIS ATTACKS
ON THE INDUSTRY AND THE COMPANY THROUGH NEWSPAPER
ADVERTISEMENTS. HE RECEIVED CONSIDERABLE MEDIA EXPOSURE BY
CLAIMING THAT OUR ADVERTISING TARGETS MINORS AND THAT WE
ARE MORALLY NO BETTER THAN DRUG PUSHERS TO CHILDREN.
OUR CAMPAIGN NOT ONLY STOPPED MR. SMITH'S EFFORTS IN THEIR
TRACKS, IT ALSO HAD OTHER BENEFITS - IT PROMPTED THE MEDIA
TO GIVE US A HEARING ON THE ISSUES, INCLUDING A NATIONAL
TELEVISION DEBATE WITH MR. SMITH, AND IT INFLUENCED A WIDE
RANGE OF DECISION-MAKERS TO BE MORE FAVOURABLY DISPOSED TO
THE INDUSTRY, PERHAPS MOST IMPORTANTLY, IT WENT A LONG WAY
TO RAISE MORALE WITHIN THE INDUSTRY...
[Page 6]:
WE ASSISTED WITH THE FUNDING OF A KEY HIGH COURT CHALLENGE
ON THE LEGALITY OF STATE LICENCE FEES...
TEST MARKET[ED] A PM ADVOCACY CAMPAIGN IN VICTORIA AROUND QUIT WEEK WITH TWO ADVERTISEMENTS...
[MADE] STRATEGIC USE OF SPONSORSHIP, BOTH CORPORATE, AND WHERE POSSIBLE, BRAND, I.E. POLITICAL INVITEES TO THE GRAND PRIX CAR RACING, MELBOURNE CUP ETC., AND IN SPECIFIC SPONSORSHIPS OF COMMUNITY BASED PROJECTS.
RECRUITING ALLIES NOTABLY FROM THE POLITICAL, BUREAUCRATIC, BUSINESS, MEDICAL, COMMUNITY AND MEDIA AREAS...
UNDERTAKING THE NECESSARY FOUNDATION WORK TO FORM A
BUSINESS/LIBERTY GROUP TO DEFEND FREEDOMS AND QUESTION THE
LEGITIMACY OF ANTI-BUSINESS GROUPS...
[Page 9]:
MAJOR BRAND INCENTIVES HAVE BEEN UNDERTAKEN VIA HIGH QUALITY PREMIUM OFFERS TO CUSTOMERS, E.G., B&H HAVE USED A HIGH QUALITY GOLD PEN ACTUALLY VALUED AT $10, PERCEIVED VALUE $50-60...
- Company
- Philip Morris
- Author
- *Dollison, John (use Dollisson, John) (PM Corporate Affairs Dept., circa 1988-90)
Philip Morris Corporate Affairs Department, 1988-90
- Recipient
- 1988 Philip Morris Corporate Affairs Sales Conference attendees
Named PersonChurchill, Sir Winston Leonard Spencer (British Prime Minister (1940-45), cigar smoker)
Coolidge, G.
Daube, M.
Joggers, M.E.S.W.
Johnstone
Napoleon
Smith, D.
Named OrganizationACVA Pacific (Australian/Asian branch of ACVA Atlantic)Front group for Philip Morris that "measured" air quality in buildings.
Commonwealth Public Service
Connection Club
Health Ministers Conference
PM Co
PM Corporate Affairs Group
PM Sales Confernce
Pma
PMI- Philip Morris International
TI, Tobacco Institute
Victorian Salesforce
Wa Dept of Health
TypeSPCH, SPEECH, PRESENTATION
LitigationStmn/Produced
Subjectcorporate
corporate intelligence
Corporate philanthropy (Company giving behavior)The giving of money to causes by a company, usually in a manner that makes the company appear altruistic to the public. Corporate philanthropy is usually done to achieve public relations or political gains.
Corporate strategy
taxation
advertising
advertising activity
public smoking law
smoking cessation programs
industry front group
industry activity
industry influence
industry response
industry sponsored conference
industry strategy
industry surveillance (Intelligence-gathering on public health forces)
Document Images
Page 1: rlj29e00
1988 PHILIP MORRIS SALES CONFERENCE
"CHALLENGE OF CHANGE"
4.00 - 5.00 P.M. 23RD JANUARY, 1988
CORPORATE AFFAIRS - JOHN DOLLISSON
Page 2: rlj29e00
WALK ON STAGE TO THE LAST BARS OF THE 1812 OVERTURE - AUDIO TAPE.
SLIDE 1.
AND WE THOUGHT NAPOLEON HAD IT TOUGH AT THE BATTLE OF BORODINO!
LET ME TELL YOU ABOUT CORPORATE AFFAIRS. I WILL SPEAK ON THE
SIMILARITIES OF THE ROLES OF CORPORATE AFFAIRS' AND THE SALES
FORCE, REVIEW 1987, INCLUDING THE VICTORIAN TOBACCO ACT, ASSESS
ISSUES ON THE AGENDA FOR 1988 AND DISCUSS THE CHANGES REQUIRED TO
ADDRESS THE CHALLENGES THAT LIE AHEAD.
SLIDE 2.
BELIEVE IT OR NOT, THE WORK OF CORPORATE AFFAIRS IS VERY SIMILAR
TO THAT OF SALES. OUR WAR IS NOT WITH THE COMPETITORS BUT
ANTI-SMOKERS, ANTI-ADVERTISERS AND THE LIKE - THE MUESLI EATING,
STOOL WATCHING, JOGGERS WHO KNOW WHAT IS BEST FOR ALL OF US. OUR
PRODUCT IS A POINT OF VIEW, IDEA OR INFORMATION ON ISSUES OF
LIBERTY, FREEDOM TO MARKET, ROLE OF THE STATE, INDIVIDUAL HEALTH
ETC. OUR CUSTOMERS, WHILST LESS CLEARLY DEFINED THAN SALES,
INCLUDE POLITICIANS, THE BUREAUCRACY, THE MEDIA, BUSINESS, UNIONS,
TRADE ASSOCIATIONS, THE INDUSTRY AND THE PUBLIC AT LARGE. OUR
TOOLS ARE WORD OF MOUTH, ADVERTISING, THE MEDIA, BRIEFING PAPERS,
ALLIES, LETTERS, PAMPHLETS, BROCHURES, TELEPHONE, INDUSTRY
EMPLOYEES, SMOKERS AND HOPEFULLY THE PUBLIC AT LARGE,
~
0
JUST AS OUR CUSTOMERS AND OUR TOOLS OF TRADE ARE LESS CLEARLY .p
o
DEFINED, SO ARE OUR MEASURES OF PROGRESS. WE RELY ON PUBLIC o
OPINION, NUMBER OF SUCCESSES, MEDIA SPACE ON INDUSTRY ISSUES, a`
DEGREE OF SUPPORT FROM THE MEDIA, THE BUREAUCRACY AND MPS.
LIKE YOU, WE HAVE TO FEND OFF OUR COMPETITION; THE ANTI-SMOKERS,
AND BUILD UPON OUR SHARE OF THE MARKET, OUR CAMPAIGN OVER THE
LAST TWELVE MONTHS, HOWEVER, PARTICULARLY WITH THE INCLUSION OF
THE VICTORIAN TOBACCO BILL HAS SEEN US LOSE GROUND, THE REASONS
FOR THIS ARE FOURFOLD:
Page 3: rlj29e00
1. THE ANTI-SMOKING ACTIVISTS RECENT MOVE INTO BUREAUCRACY
E.G. MICHAEL DAUBE, W.A, DEPARTMENT OF HEALTH - IT'S NO
LONGER A CRUSADE BUT A FULL TIME JOB WITH DIRECT ACCESS TO
GOVERNMENT POLICY FORMULATION,
2. THE CALIBRE AND INTERNATIONAL NATURE OF AUSTRALIA'S
ANTI-SMOKING ACTIVISTS (THREE OF THE INDIVIDUALS BEHIND THE
WORLDWIDE ANTI-SMOKING MOVEMENT ARE EITHER AUSTRALIAN OR
AUSTRALIAN BASED).
3. A POLITICAL ORTHODOXY IN AUSTRALIA THAT ACCEPTS, AND ONE
CAN ARGUE, ACTUALLY FOSTERS REGULATION OF INDIVIDUAL
LIBERTY - NOTABLE IN VICTORIAN ACCEPTANCE OF THE TOBACCO
ACT WHICH HAS CLEAR OBJECTIVES OF CONTROLLING PEOPLES
BEHAVIOUR AND LIFESTYLES IN ORDER TO PROMOTE WHAT THE
AUTHORS OF THE ACT CONSIDER ARE FOR THE PEOPLES OWN GOOD;
AND FINALLY
4. A RECENT INCREASE IN THE TIMIDITY OF THE INDUSTRY IN
RESPONDING TO ISSUES (ALTHOUGH THIS WAS CERTAINLY NOT THE
CASE DURING THE VICTORIAN BILL)
SLIDE 3.
CLEARLY A MORE AGGRESSIVE AND EFFECTIVE OFFENSIVE IS REQUIRED T0:
1. QUESTION, AND WHERE POSSIBLE UNDERMINE THE
LEGITIMACY OF OUR OPPONENTS, AND
2. PUBLICLY RESPOND, QUESTION AND REFUTE THEIR CLAIMS
BRINGING THE FOCUS BACK TO THE PRIMARY SMOKING AND
HEALTH ISSUES.
BEFORE REVIEWING 1987 PLEASE ASK QUESTIONS IF ANY OF MY LANGUAGE
OR JARGON NEEDS TO BE CLARIFIED. DIFFERENT PEOPLE INTERPRET WORDS
IN DIFFERENT WAYS - STORY OF RASTUS AND LIZA AND THEIR CHILDBIRTH
PROBLEMS OR GYNAECOLOGISTS STORY. 2504202607
LOOKING BACK AT 1987, PHILIP MORRIS CERTAINLY HAD A HIGHER PROFILE
THAN OTHER MEMBERS OF THE INDUSTRY AND TOOK THE DEBATE TO THE
PUBLIC.
Page 4: rlj29e00
SLIDE 4.
IN CONJUNCTION WITH THE TOBACCO INSTITUTE OF AUSTRALIA, PHILIP
MORRIS WORKED ON THE FOLLOWING:
PREPARATION FOR PRODUCT LIABILITY INCLUDING DOCUMENT
RETENTION AND CLARIFYING LEGAL ADVICE TO ENSURE WE ARE ABLE
TO RESPOND TO HEALTH CLAIMS
STRATEGY, LOBBYING, LEGAL ADVICE AND DRAFTING TO MAINTAIN
THE VOLUNTARY ADVERTISING CODE FOR TOBACCO AND INDEED THE
WHOLE SELF-REGULATORY SYSTEM FOR ADVERTISING
DEFEATING BILLS TO BAN ADVERTISING IN SOUTH AUSTRALIA (NOT
THE CURRENT BILL BUT THAT PROPOSED BY THE DEMOCRATS), ACT,
AND PREPARING FOR POSSIBLE BANS OR RESTRICTIONS IN VICTORIA
AND WESTERN AUSTRALIA. PHILIP MORRIS HAS WORKED
INDEPENDENTLY ON STOPPING A BAN ON PACKAGING OF CIGARETTES
IN PACKETS OF LESS THAN 20 IN THE ACT AND WE ATTEMPTED TO
STOP THE IMPLEMENTATION OF A SIMILAR BAN IN SOUTH
AUSTRALIA, ALBEIT UNSUCCESSFULLY.
DEVELOPING AND IMPLEMENTING PRE-EMPTIVE STRATEGY TO PLACE
HEALTH WARNINGS IN ADVERTISING TO AVOID A GOVERNMENT UK
APPROACH
ORGANIZING TWO ETS SEMINARS INVOLVING U.S. SPECIALISTS FOR
THE AUSTRALIAN MEDIA AND DECISION MAKERS IN FEBRUARY AND
SEPTEMBER
ASSISTING IN THE DRAFTING OF PRESENTATION MATERIAL,
INCLUDING WORKPLACE SMOKING KITS (CURRENTLY BEING
DISTRIBUTED THROUGHOUT PMI) ON ETS
SETTING UP OUR OWN AIR QUALITY MEASUREMENT FACILITY IN
AUSTRALIA ACVA PACIFIC PTY, LTD.) - SOME 10 BUILDINGS HAVE
BEEN MEASURED WITH SIMILAR RESULTS TO THE U.S. TO BE N
PUBLISHED IN FEBRUARY THIS YEAR. ~"
0
~
N
ASSISTING "FAIR Go" - A NEW SPONTANEOUS SMOKERS RIGHTS ~
GROUP THAT OVERTURNED THE SMOKING BAN ON N.S.W,`S ~
INTER-URBAN TRAINS
Page 5: rlj29e00
ASSISTING TOBACCO INSTITUTE REPRESENTATIVES TO RESPOND TO
HEALTH CLAIMS ESPECIALLY THE SUPPOSED "16,000 DEATHS".
IN ADDITION TO THIS WORK WITH THE TOBACCO INSTITUTE, THE MAJOR
PROACTIVE ACTIVITIES OF PHILIP MORRIS CORPORATE AFFAIRS GROUP
INCLUDE:
SLIDE 5.
STAGING AN ANTI-QUIT SMOKING WEEK CAMPAIGN FEATURING THE
RETURN OF SIR WINSTON CHURCHILL TO LAUNCH THE SMOKERS BILL
OF RIGHTS. THIS CAMPAIGN GAINED CONSIDERABLE POSITIVE
PRESS COVERAGE AND TOOK THE INITIATIVE FROM THE
ANTI-SMOKERS. THIS INITIATIVE WAS SUPPORTED BY SAMPLING
GIRLS ALSO HANDING OUT COPIES OF THE BILL OF RIGHTS AND
BUMPER STICKERS.
SLIDE 6.
RESPONSE TO ATTACKS BY CAMPAIGNING ENTREPRENEUR AND
AUSTRALIAN OF THE YEAR, DICK SMITH, FOLLOWING HIS ATTACKS
ON THE INDUSTRY AND THE COMPANY, THROUGH NEWSPAPER
ADVERTISEMENTS. HE RECEIVED CONSIDERABLE MEDIA EXPOSURE BY
CLAIMING THAT OUR ADVERTISING TARGETS MINORS AND THAT WE
ARE MORALLY NO BETTER THAN DRUG PUSHERS TO CHILDREN.
OUR CAMPAIGN NOT ONLY STOPPED MR. SMITH'S EFFORTS IN THEIR
TRACKS, IT ALSO HAD OTHER BENEFITS - IT PROMPTED THE MEDIA
TO GIVE US A HEARING ON THE ISSUES, INCLUDING A NATIONAL
TELEVISION DEBATE WITH MR. SMITH, AND IT INFLUENCED A WIDE
RANGE OF DECISION-MAKERS TO BE MORE FAVOURABLY DISPOSED TO
THE INDUSTRY. PERHAPS MOST IMPORTANTLY, IT WENT A LONG WAY
TO RAISE MORALE WITHIN THE INDUSTRY.
Page 6: rlj29e00
SLIDE 7.
WE ASSISTED WITH THE FUNDING OF A KEY HIGH COURT CHALLENGE
ON THE LEGALITY OF STATE LICENCE FEES. THE RESULT OF THIS
CASE IS STILL PENDING, BUT IT WAS A KEY FACTOR IN
CONJUNCTION WITH OUR SUBMISSION AND LOBBYING IN HOLDING
STATE AND TERRITORY TAXES TO LAST YEAR'S LEVEL, EXCEPT IN
TASMANIA. THE TASMANIAN GOVERNMENT INCREASED THE TOBACCO
TAX FROM 35% To 50% OF THE WHOLESALE PRICE ALONG WITH A
WHOLE RANGE OF NEW TAXES TO COVER GOVERNMENT SPENDING. OUR
LOBBYING WAS NOT ABLE TO STOP THE INCREASE.
SLIDE 8.
TEST MARKET A PM ADVOCACY CAMPAIGN IN VICTORIA AROUND QUIT
WEEK WITH TWO ADVERTISEMENTS. THE AGENCY RESPONSIBLE,
CAMPAIGN PALACE, HAVE LEARNT FROM THE EXERCISE, I.E. THE
LEGAL CONSTRAINTS WE HAVE TO ACCOMMODATE, AND ARE NOW
PREPARING A MORE COMPLETE ISSUES CAMPAIGN FOR
CONSIDERATION, WITH PARTICULAR FOCUS ON THE HEALTH ISSUE.
SLIDE 9.
STRATEGIC USE OF SPONSORSHIP, BOTH CORPORATE AND WHERE
POSSIBLE, BRAND, I.E. POLITICAL INVITEES TO THE GRAND
PRIX, CAR RACING, MELBOURNE CUP ETC., AND IN SPECIFIC
SPONSORSHIPS OF COMMUNITY BASED PROJECTS.
SLIDE 10.
RECRUITING ALLIES NOTABLY FROM THE POLITICAL, BUREAUCRATIC,
BUSINESS, MEDICAL, COMMUNITY AND MEDIA AREAS. FOCUS HAS
BEEN PLACED ON CANBERRA, NEW SOUTH WALES AND VICTORIA TO
DATE.
Page 7: rlj29e00
SLIDE 11.
IMPROVING INTERNAL AND EXTERNAL COMMUNICATIONS. EXTERNAL
VIA RAISING THE PROFILE OF PM VIA PRESS RELEASES, LETTERS
TO THE EDITOR, BRIEFING OF MEDIA, PMA BROCHURES; AND
INTERNALLY TO ENCOURAGE GRASS ROOTS ACTIVITY AND BOLSTER
MORALE, AS WELL AS AN AWARENESS CAMPAIGN ON THE WORK OF
CORPORATE AFFAIRS AND THE CORPORATION IN GENERAL.
SLIDE 12.
KEY ADDRESSES TO BUSINESS FORUMS, INCLUDING AN ADDRESS TO
THE ANNUAL HOTEL SALES AND MARKETING CONFERENCE ON THE
IMPORTANCE OF BUSINESS STANDING UP FOR ITS RIGHTS,
PARTICULARLY MARKETING FREEDOMS
SLIDE 13.
UNDERTAKING THE NECESSARY FOUNDATION WORK TO FORM A
BUSINESS/LIBERTY GROUP TO DEFEND FREEDOMS AND QUESTION THE
LEGITIMACY OF ANTI-BUSINESS GROUPS
SLIDE 14.
THE LAST QUARTER OF 1987 WAS SPENT FIGHTING THE VICTORIAN
TOBACCO BILL, A FIGHT WHICH INVOLVED ALL OF THE PHILIP
MORRIS COMPANY AND MOST OF THE TOBACCO INDUSTRY AND ITS
ALLIES. THIS WAS THE FIRST TIME THE INDUSTRY ACTUALLY
UTILISED ITS FULL RESOURCES.
SLIDE 15.
2504202611
DESPITE AN EXPENSIVE AND EXTENSIVE CAMPAIGN, SIGNIFICANT MARKETING
AND PROMOTION TOOLS WERE LOST TO THE INDUSTRY IN VICTORIA. THE
WORK OF THE VICTORIAN SALESFORCE WAS OF GREAT ASSISTANCE IN
PRESENTING THE INDUSTRY'S POINT OF VIEW TO MEMBERS OF PARLIAMENT,
RETAILERS AND THE PUBLIC. IN FACT THE CAMPAIGN WAS REPORTED IN
THE HERALD AS THE GREATEST LOBBYING CAMPAIGN EVER SEEN IN THE
HALLS OF SPRING STREET.
Page 8: rlj29e00
SLIDE 16.
WE WERE SUCCESSFUL IN OBTAINING AMENDMENTS TO SUPPORT SPORTS
SPONSORSHIP AND OTHER MINOR AREAS OF THE BILL, BUT WE LOST CINEMA
ADVERTISING, FREE SAMPLING AND COMPETITIONS, OUTDOOR ADVERTISING
AND SOME OTHER MARKETING TOOLS. WORST OF ALL, THE GOVERNMENT
OBTAINED APPROVAL TO INCREASE TOBACCO TAXES BY 5% TO FUND HEALTH
CAMPAIGNS, INCLUDING ANTI-SMOKING CAMPAIGNS, I.E. WE ARE FUNDING
OUR OWN DEMISE,
SLIDE 17.
WHILST WE CAN LIVE WITH THE MARKETING RESTRICTIONS, AND TODAY, WE
HAVE SEEN SOME NEW AND INNOVATIVE APPROACHES TO MARKETING IN
VICTORIA, THE TAX INCREASE AND ITS PROPOSED USAGE IS ANOTHER
MATTER AND IS THE SUBJECT OF A HIGH COURT CHALLENGE.LAUNCHED BY
PHILIP MORRIS ON THE 23RD DECEMBER, 1987. THIS WILL TAKE SOME
FOUR MONTHS TO RESOLVE AND COULD RESULT IN THE END OF STATE
LICENCE FEES ON TOBACCO,
THE NEW RESTRICTIONS IN VICTORIA MAKE YOUR JOB TOUGHER, BUT YOU
SHOULD REMEMBER THAT MANY COUNTRIES HAVE TOTAL BANS ON ADVERTISING
AND PROMOTION, MORE THAN HALF HAVE PARTIAL BANS AND RESTRICTIONS
RANGING FROM TELEVISION BANS TO MORE SUBSTANTIAL MEDIA BANS AND
ONLY TWO OR THREE HAVE VIRTUALLY NO RESTRICTIONS AT ALL!
AUSTRALIA, AND INDEED VICTORIA, SIT IN THE TOP 40% IN RESPECT OF
FREEDOMS TO ADVERTISE AND PROMOTE TOBACCO. THAT'S NOT TO SAY WE
SHOULD SIT BACK AND TAKE IT. WE WILL BE PURSUING AMENDMENTS,
EXTENSIONS, LEGAL CHALLENGES, CHANGES OF GOVERNMENT ETC. AND MOST
IMPORTANTLY STOPPING ITS SPREAD TO OTHER STATES.
SLIDE 18.
Two COUNTRIES WHERE TOTAL BANS ON MARKETING AND PROMOTIONS EXIST,
AND WHERE PHILIP MORRIS HAS MADE PROGRESS ARE SINGAPORE AND
SCANDINAVIA. IN SINGAPORE 3 MAJOR SALES INITIATIVES ARE BEING
USED. THEY ARE:
N
0
.A
N
O
N
~
r
N
Page 9: rlj29e00
IMPROVED RETAILER/SALESFORCE RELATIONSHIP
SEEKING NEW DISTRIBUTION CHANNELS VIA SUB AGENTS
N
C!~
O
~
TOP QUALITY PREMIUM OFFERS N
0
IT SHOULD BE NOTED THAT THE COMPETITION IN SINGAPORE AND
SCANDINAVIA IS NOWHERE NEAR AS TOUGH AS IN AUSTRALIA.
N
~
w
To IMPROVE THE RELATIONSHIP WITH RETAILERS, THE WINNING POST
PROMOTION HAS BEEN USED FOR MARLBORO AND THE FORMULA 1 GRAND PRIX.
EACH RETAILER IS PROVIDED WITH A RACE TRACK BOARD AND IS AWARDED
POINTS OR MOVES FORWARD ON THE TRACK TOWARD THE WINNING POST FOR
POS DISPLAY, SALES ETC. WITH PRIZES FOR THE WINNER, INCLUDING
OVERSEAS TRIPS, NEW STORE FRONTS ETC.
NEW DISTRIBUTION CHANNELS HAVE BEEN OBTAINED AS FOLLOWS:
VIRGINIA SLIMS HAS BEEN EFFECTIVELY PROMOTED THROUGH
HAIRDRESSING SALONS AS SUB AGENTS WHO ARE AWARDED POINTS
BASED ON SETTING UP OTHER SUB AGENTS AND ON THEIR SALES
PERFORMANCE
THE 'CONNECTION CLUB' HAS BEEN SET UP TO PROMOTE PRODUCT
THROUGH A LARGE NUMBER OF HOMOGENIOUS PEOPLE ALONG THE
LINES OF THE AMEX AND DINERS CLUB MEMBERSHIP DRIVES
MAJOR BRAND INCENTIVES HAVE BEEN UNDERTAKEN VIA HIGH QUALITY
PREMIUM OFFERS TO CUSTOMERS, E.G. B&H HAVE USED A HIGH QUALITY
GOLD PEN ACTUALLY VALUED AT $10, PERCEIVED VALUE $50-60, THE
PREMIUM OFFERS ARE CAREFULLY PICKED TO PROMOTE THE BRAND'S IMAGE
IN SINGAPORE THE LEGISLATION DOES NOT BAN PACKAGING DISPLAY, SO
PACKING IS BEING USED FOR ADVERTISING, PACKAGING CHANGES TO
REFLECT BRAND IMAGE, MORE IMPRESSIVE THAN THE MARLBORO CHRISTMAS
CARTON ARE BEING CONSIDERED, IN FACT PACKS ARE BEING CONSIDERED
WITH HEADER CARDS ATTACHED FOR DISPLAY AND SALES PROMOTION.
Page 10: rlj29e00
FOR A NEW BRAND LAUNCH THE CALIFORNIA CLOTHING RANGE IS BEING
CONSIDERED IN CONJUNCTION WITH A NEW BRAND "CALIFORNIA", WHICH
WOULD BE LAUNCHED AFTER EXTENSIVE ADVERTISING OF THE CLOTHING
RANGE.
IN SCANDINAVIA INITIATIVES FOCUS ON DIRECT MAIL PROGRAMMES, TRADE
MAGAZINES WITH RETAILERS AND POS GIMMICKS.
SLIDE 19 (SUMMARISING HIGHLIGHTS OF SALESFORCE IDEAS)
TODAY WE HAVE SEEN SOME INTERESTING SALES AND MARKETING OPTIONS
FOR VICTORIA, A NUMBER OF WHICH, IF IMPLEMENTED WOULD SEE PHILIP
MORRIS DIRECTORS IN JAIL, WHILE OTHERS WOULD PROVIDE GOOD
OPPORTUNITIES IN VICTORIA.
IN EXPRESSING THESE OPTIONS WE MUST BEAR IN MIND THE DEFINITION OF
"ADVERTISING".
"TOBACCO ADVERTISEMENT" MEANS WRITING OR A PICTURE, SYMBOL, LIGHT
OR OTHER VISIBLE DEVICE, OBJECT OR SIGN, OR A COMBINATION OF TWO
OR MORE OF THE FOREGOING THAT GIVES PUBLICITY TO, OR OTHERWISE
PROMOTES -
(A) THE PURCHASE OR USE OF A TOBACCO PRODUCT; OR
(B) A TRADEMARK OR BRAND NAME, OR PART OF A TRADEMARK OR BRAND
NAME, OF A TOBACCO PRODUCT
THERE ARE 4 KEY AREAS OF THE ACT THAT IMPACT OUR DAY TO DAY
BUSINESS. THEY'ARE:
SECTION 6 - ADVERTISING PROHIBITIONS
NOTE THE DEFINITION OF "ADVERTISING" - WHAT IS OF INTEREST
HERE IS THE EXCLUSIONS, I.E. U.K. STYLE ADVERTISING,
PACKAGING INCLUDING PRESUMABLY WINDOW DISPLAYS AS IN vN,
~
SINGAPORE ETC. ARE ALL ALLOWED. ~
N
O
N
~
~
