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REPORT SYN~CTICS PROBLEM LABORATORY • APRIL. 21, 22> 2B, 1~6 LORILLARD Submitted by: Symeatics, Inc. 26 Church Street Cambridge, Mas~. 02138

CONTENTS Ik'TRODUCTI ON A. Purpose and Scope Participants C. General Procedures RECORD, OF TU LABORATORY SESSIONS,

INTRODUCTION Ao Purpose and SCope The purpose of ~he Problem Laboratory was to exert our bess efforts to develop ideas to gives smokers more perceived economic value in their cigarettes, and~ second[[y to develop ideas~ that will g~ves smokers an additional benefit chat ±s~ different from and compatible with. traditional cigarette benefits. B. Participants LORILLLARD John Andes - Advertising Jon Greenleaf - Advertising Claude Levis Harry Minnemeyer John Mueller Mel Reach Fred Schultz Dick Smith - Clien~ Charlie Tucker Ben Vile - Larry Washburn - 5~A Charlie Welborn SY~,U~CTICS~ !~:C. Caves Gobhai Frances Ju~kins George M. Prince Kate Reilly C. The Problem Laboratory was held at the offices of Sy~ec~ics, Inc., of Cambridge, April 21~ 22, 23~d, ~976. ~he group began, by developing an underst~ding of meeting dyuamics and the basis for S.ynectics procedures by participating in a learning exercise the evening of the first day.

NOTE This report consists almos~ so3ely of a re-artiiculazion of the 'instant'~ minutes" of the meeting. It is prepareD', for the use of TU ~abora~ory participants in post-lab work. It does not represent, in our view, a complete presentation for persons who were no~ ~in the Lab. Add~.tional reinforcement of background, con- text, and recommendations is almost always requiredl Typos have been corrected, material has been chronol~gically assembled, some additional words added for clarification and an ~ntroduction of the process elements has been placed up fron~t. if we can be of any further help, please let us know.. The Synectics Sta.ff

The group then embarked on problem solution, working at times as one g=oup~, and at other tames ~n £wo sub-groups~. Each group wDrked in a structured Synectics "session" led by a. Synectics staff member. The structure used in the sessions ~nvolves techniques that are a~imed at two areas that significantl~ affect a, working, group's effectiveness. One area is concerned with behaviors that affect the group's~ productivity. Techniques that fall within, this a~ea are a~med at redirecting the group's competitive energy toward solving the problem ~ather than using it on each other, and at making~ optimum use of information, and ~deas. The secend important area is concerned with the g~oup~'s ability to speculate usefully. The group's ability to speculate has been found to have a direc£ correlation with the inventiveness: or creative quality of the group's output. detailed record of each of the sessions is i~cluded in the body of this report. The material generated in the prob~em-sol~ng session has been sepa~ate~i out into one of three major categories. These are: POSSIBLEIS~LUTION$ A Possible Solution~ is defined as an idea or concept that mee~s the follow~ng criteria. ~ne, it conta&ns an element of newness for the members of the group. And~ two, it must contain enough. feasibility to suggest specific next steps that an expert in the group can take toward! implementing or further ~nves%igating its~ va~idity is meeting project objectives. A Possible Solu,tion may. speak to one or more aspects of a problem. In some instances, it is necessary to combine several Possible Solutions i~ order tostructure a basis for further action. H~g'TO'~/GOALS/WISHES How. To's are defined as statements of the problem er solut~en as seen by each individua{ in the group. How To's do not have to meet the criteria of feasibili£y. Rather, group members are encouraged to be wishful in, their How To statements, sometimes to, the point of suggesting absurd, immoral, or illegal ideas

which might initiate novel approaches to the problem. Group members are also encouraged to. express ~heir d~fferences abou~ the definition of the paroblem or ob3ec~ives in ~he form of How To's.. How To's~ thus represen~ diverse persDna! views of the problem and often appear to be in opposition to other How To"s~ or the initial statement of the problem. (The Problem As Given, or PAG.) How To's are useful in uncovering hidden, aspects of the problem. in addition, they act as triggers. ~or Possible Solutions. A post-Lab comparison of How To"s. against starting c2~ent's obj'ectives ~s often usefu~ in enlarging perceived, areas of need or even rethinking original objectives ~n~ ~he light or previously "hidden"~ aspects of the problem. EXCURSION An~ Excursion ~s a deliberate step away from the problem~ I£s purpose is to. take the group on a brief, disciplined "~acatiom" from the problem - a "walk ±n the woods" as it were - d~ring which the group '"forgets" about the prob{em os the conscious ~evel. At other levels, however, contact is still maintained, with the problem -. the Excursion aims at bringing ou~ non-rational responses to the problem~at hand ("How would it feel if you were a new pro- duct s~tting on a supermarket shelf?")i The Excursion may last anywhere from f~ve to fifteen minutes. The group, is then brought back, consciously, to the problem and asked to uncover or "~orze" the connections between, the "vacat&on'" material and~ the problem. at hand. These "~orce ~it" connections then serves~ a~ triggers to suggest new Possible Solutions andl How To's.

RECORD OF PROBLE~I LABORAI~DRY SESSIONS

~ORILLARD PROBLEM LABORATORY A_WRIL 12~ i'976 . CAVAS LEADING DICK CLIENT 12:00 - l:00 SESSION #i PAG Identify 3 different and specific ways to give smokers more perceived economic value in their cigarette. For each, of these define: - physical configuration - other product attributes - probable problem areas (include technical and consumer) with, s~ggestions for solutions - la~d out steps to re~ch test market by Jan. 7~ 1. Hew to have qu%ck reaction time. How to.have a c~garette that only burns when you puff it B. ~ wish we could give a days supply in one package How to be able to purchase cigarettes loosely 5. Hew to be ~ble to make cigarettes yourself 6. How to have a slow buurning cigarette 7- How to have a longer cigarette (full diameter) 8. Now to have a triplet cigarette (smoke as a whole or take it apart.) 9- New to have a relightable cigarette lO. Hew to have a section cigarette (one section stop.) ii. I wish I could sell a package containing fewer cigarettes (taxes) 12. I wish we could cause t~x dilution 13. I wish we knew what consumer really perceives as ~alue How to have longer lasting satisfaction ~so fewer cigarettes) 15. ~ow ~o have a stretchable cigarette. 16. How to have an ash_less cigarette (not w~sted) 17. I..wish we could have some thought~ on bulk packages. (30 per pack) 18. How to get. consumer to purchase by weight or bulk 19. How ~o "brown bag" (,factory reject)~ I wish we could sell own reclaimed c~garettes at a discount, (.seconds) 21. I wish we could find something constructive to do with the remains (fertilizer in house, plant) 22. How to get. remains back into production process 23. How to have a reusable container 2h. How to reuse filters (cleanse andi use 9or water fi2ters) 25. How to have permanent filter (~0 mm weight consumer producing fiiter)~ 26. How to have cigarettes with a common part (e.g. one filter two cigarettes) (pack with~ own fillor)~ Now to have a 5-pack carton and 20 pack carton 27. 28. 29. 30. 31. 32. 33. 3h. 35- 36. 37. 38. 39. hO. How to Hew to How to Hew to How to How to Hew to Ho~ to Ho~ ~o Hew to How to How to have an adjustable filter ~e..g. paparosi) market in a new shape have a chewable filter (latex gum) get 5 minutes of intense cooling flavor prior_toigni~ion have a cigarette as acarrier use a chewable filter to clean or sweeten breath have a self-starting cigarette (no other utemsils) have a no smoke cigarette ~flavored oral~ o~factory) have acigarette tha~ doesn't commit itself (like chewing tobacco) get. ~ multiple cigarette have a cigarette with ~,~ added ~o i% sell on a dmferred~ paym..~en~ plan, (qike credi~ cards) have an aerosol can or inhaler as a substitute

~0. 58- 59a 59b 60. 61. How How the How How How to How to How to ~birth How to How to How to How to How to How to How to How to to have a semi permanent gadget (sniffers) to have a cigarette with a filter that will increase t~icity ]~evel of nicotime to a non-measurable point to have a cigarette withou~ tobacco. ~uaxes)~ to have a pill you, take in the morning to have a cigarette with a filter you can, chew on (without lighting) sponsor an industry wide agreement to on/y advertise new brands have a p~in killer for rthriti~s have an, ~phrodisiac control) incorporate a(milk pharmecological agent ) make it so addictive: one cigarette and you,"ve got~ him for life have a cigarette specifically for children. (sparkler ~dditive candy), have a completely synthetic cigarette have a cigarette made e~tirely of imported leaf cut the cost of goods in half (sel~ plant and'~ lease back) grind up e~er~thing and: extrude it ou~ in a rod - have. luxury premium priced product that projects more v.a1~ue than cost How to get a (scr~.~ce) contract with ~ ~noker to supply him cigarette for "one year at a savings" Subscription~ Di~ec~ mai~ (mail from N.C. for low t~x) Goesto warehouse distribution How to smuggle openly How to have cigarette that would stay indefinately in a freezer or cold storage (no stales.) Freeze dr~ed~ Instant added~ water (build on contract) Home d~livery as added convenience(like Jewel Tea man) How to sell only in State stores

LORILLARD PROBLEM LABOPATORY KATE. LEADING DICK CLIENT SESSZON~ #2 ,APRIL 21~ 1976 2:b5 - 3:35 Wazs Manufacturers COnvey Economic V~lue 3. 5. 6. 7. 8. 9. i0. ii. 12. 13. i~. 15. 16. 17- 18. 19- 20. 22. Lower cost(~rivate label br~uds) More product at the same price)(Bonus packs) Lower unit cost (smaller sizes Effective longer (new Mobil Synthetic oil) Greater mileage - wears down ~ess fast (Palmolive) Superior size impression (Rain Barrel) Re-usable package (jelly glassesJ Greater reliability (brandi same antibiotics) More uses per package (considered' softeners) Superior performance in key benefit area (Crest) SuPerior. status Provides important additional benefit (Downy) More convenient packaging/dispensing Less waste/better position control More protective of the. appliance in whdch i% is used, More protective of thema~erial on ~hich it is used. More visible benefit (flouresence) Grea~r disposability/convenience (diapers) Requires lower consumption of energy/more efficien~ operation Can defer payment 6credit purchases) Exclusivity/rarity~uniqueness Of£ers premium (Breeze:, Duz) incentive Goals/Wishes 1. How ~o make b~tts a collector's item 2. How to make the package a co~lector's item, 3. How to produce cigarettes in differen~ colored vrappimgs - make: each ome a collector's item 4. How to unbundle our added ~a~ue 5- How to let the: customer choose his cost benefit ~rade off. 6. How to bypass the filter and let me hmve s~eet smelling smoke%r~thout inhalimg that. 7-, How to m~nafactum, e and advertize a cigarette and get every chain to mam, ket it for ~S (advertised private label) 8. HOW 9.How i0. I~d ll. 12. HOw 13- HO~ 14. H~w 15. How 16. How 17. How 18. How 19. How 20. How 21.. How 22. How 23. to develop a profit sharing brand~. to put f~ower see~s in label. like a cigarette that wou~d perform a function in the tray (e.g. air freshene a flower seed in each but$, to make smok~ess smoke - a smoke intensifier to identify and reward only our best consumers. to market a cigarette that would~ have reduced; price at high quanti~ies. to return cash. $ a~ poin~ of sale. to give greater reliability to a manafacturer or brand group. to get an AMA endorsement to develop good corporate image to do an ~,~C number (~.merican Motors) to develop a "Buyer Protection, Plan" for Lorillard to develop consumer t~st. ~o buy large and use small ~o~ to develop convenient packaging - not stick out in shirt, pocket, even flexible.