Tobacco Documents Online

. , C ~t00 Renaissance i;encer Suite 600 Detroit, Michigan 482-+3 (3131 567-2300 Public Relations Counselors ANTHONY M. FRANCO INCORPORATED A Public Relations Program for THE TOBACCO INSTITt7TE Presented by Anthony M. Franco, Incorporated November 19, 1982 c

C ANTHONY M. FR.~~CO INCORPORATED CONTENTS Introduction ............................................. Page 1 The Communications Environment ........................... 2 Action Plan ................... ........... 4 Goals and Objectives ................................ 4 Your Special Audiences .............................. 5 Messages to be Developed ............................ 11 Research ......................... ...............:..... 19 Overall Strategy .................................... 20 Recommended Tactics ................................. 21 Who We Are ............................................... 31 How We Would Work With You ............................... 32 Fees and Expenses ........................................ 33 Conclusion ............................................... 34

C c ANTHONY M. FRANCO INCORPORATED Page 1 INTRODUCTION On October 8, 1982, William Rloepfer, Jr., senior vice president- public relations of the Tobacco Institute (TI), and Gabriel Werba, executive vice president of Anthony M. Franco, Inc. (AMF, Inc.), met to discuss a public relations program aimed at building grass roots opposition to any further cigarette tax increases in Michigan. AMF, Inc. put together a six-person task force to explore the obstacles in the way of achieving TI's goals; to study means by which these obstacles can be overcome; and to develop a public relations program which would help accomplish TI's objec- tives. On October 14, that task force met with Richard Seely, State Direc- tor of the Tobacco Institute, and Michael Spaniolo, Legislative and General Counsel to the Tobacco Ins:itute, for further back- grounding and general discussions. On October 15, the AMF, Inc. task force held a heuristics (creative strategy) session to develop and evaluate a wide spectrum of alternatives as a basis for a program to answer TI's needs. A four-way telephone confer- ence was held October 20 among Messrs. Seely, Werba, Jeffrey Rich (AMF, Inc. task force member), and Peter Sparber, vice president of the Tobacco Institute, for additional clarification and back- grounding. Along with the group creative session, numerous smaller conferen- ces, phone calls for information, research of materials forwarded us by Mr. Seely, and repeated evaluation of objectives and tactics have taken place internally. The program delineated in these pages reflects the combined ef- forts and insights of the AMF, Inc. task force assembled on behalf of your organization, working agains` a tight deadline that pre- cluded the sort of research, analysis, discussion, evaluation, and planning more time would enable. All1 attempts have been made, within necessary constraints, to quickly and effectively analyze your situation, identify goals and objectives, and recommend ^ vehicles best suited to achieving the desired end. tj 0~ The task force selected for this assignment represents a broad ~ background of experience in community affairs, legislative work, ~ consumer relations, and business to business and legal communica-.,& tions drawn from our pool of account supervisors, account execu- N tives, and writers.

C r ANTHONY M. FRAti'CO LN~CORPORATED Page 6 Michigan has been more seriously affected by unemployment than any state in the nation. Although many workers have migrated to other regions of the country seeking employment, there is still a deep pool of blue-collar workers concen- trated in the state's industrial areas. It is from the ranks of this beleaguered group, as well as the state's sizable population of farmers, that an emotional appeal could kindle identification with the issue. The troubled times forced upon Michigan's residents are breeding an accepting attitude toward issues of governmental inequities. We would develop backgrounders, fact sheets, a series of editorials, mat features, and general editorial material for Michigan dailies and weeklies, magazines, and radio and TV stations; arrange interviews for appropriate spokespersons; and prepare model letters to editors for use as needed. C II. Special Interest Grouos Smokers are generally identified as being usually -- though not exclusively -- of les-ser education, and occupying a posi- tion of lesser affluence on the social ladder. There are special interest groups that possess similar demographic ele= ments -- or are concerned with these elements -- which may be receptive to endorsing a position benefiting their constitu- encies. Some examples of such groups: the American Civil Liberties Union and the National Association for the Advancement of Colored People. Our job would be to develop -- on a continuing basis -- editorial material aimed directly at their membership news- letters and any other means of membership communication. III. Labor Unions - Labor unions characteristically have as members those persons who fit closely with the smokers' prof ile. These unions typically speak out loudly and effectively on issues of importance to their members and command powerful following, ~ especially in the industrial state of Michigan. Some W examples of such groups from whom we would solicit endorse- ~ ment in excise-tax-increase opposition: 'the United ~ Automobile ;vorkers of America UA, the A.F.L. - C.I.O., and ~ the Teamsters Unions. ~ .

C A.ti'rHONY li. FR,~~CO INCORPORATED r Page 7 Here, too, our job would be to develop -- on a continuing basis -- editorial material aimed directly at their member- ship newsletters and any other means of membership communica- tion. IV. Retail Merchants Excise taxes apply to a wide range of commodities and are of particular importance to purveyors of discretionary items. As evidenced by your coalition on Senate Bill 486, a variety of retail merchants can share a common interest and position on an issue not readily apparent as affecting each of them directly. The fact is, they retail many products which are subject to Federal excise taxes but not state excise taxes, rendering them susceptible to such taxes should a movement develop looking at those taxes as ideal sources of revenue. Since retail merchants are directly affected by public buying trends, they stand to lose much by allowing tax patterns to be established that might discourage consumer activity. Some examples of retail merchant categories and samples of state targets within those categories specified in Publication 5-10 from the U.S. Internal Revenue Service: Air travel companies and agents e.g. Elkin Travel, Inc. Trans Am Travel Moorman's Travel Service, Inc. Air delivery services e.g. Air Freight Services, Inc. Purolator Courier Corp. Mail Delivery Service, Inc. Cigars, cigarettes, and tpbacco-retail e.g. Dave's Cigar Store Inc. Tabak 2 Humidor One Fishing rods and equipment e.g. Clem's Inland Marine Nichol's Outdoor Sports John's Bait Tackle ( Grocers-retail ` e.g. Borman's Inc. Chatham Sup_ermarkets Inc. The Kroger Company C W ~ ~ N 00h W

( ANTHONY M. FRANCO INCORPORATED Page 8 Guns and ammunition e.g. The Gun Room Clinton River Gun Service, Inc. Wessel Gun Service Inc. Liquor distributors e.g. Seagram Distillers Company Hiram Walker & Sons, Inc. Mohawk Liqueur Corporation Liquor-retail e.g. Four Seasons Party Store Myrtle-17th Liquor Store 4Jine Barrel Liquor & Deli Telephone services e.g. Michigan Bell Telephone Company MCI Telecommunications Corporation Sprint Telephone Service Tire manufacturers and distributors e.g. Uniroyal Firestone Goodyear We would prepare editorial material aimed directly at their in- terests for industry and chamber of commerce publications reaching these various groups. V. Trade Association Trade associations, whose purpose it is to keep abreast of issues as they relate to their members and to protect their intereSts, offer many advantages to any coalition they become part of. They often have established political contacts, O active memberships, and communication vehicles already in W place with which to reach their members and prospective ~ members. Your message is given extra mileage when trade ~ associations endorse it. Some of the associations of in- i.r terest to us: The more than 200 chambers of commerce acrossoA the state; the Michigan Beer & Wine Wholesalers Association,'A Michigan Merchants Council & Association, National Rifle Association, Michigan Retailers Association, Michigan Restaurant Association, Michigan Trucking Association, Retail Merchants Association, and Service Stat'_on Dealers Associa- tion of Michigan; and the Lansing Bureau of the United States Brewers Association.

( ANTHONY M. FRX.;`iCO htCORPORAT'ED Page 14 Nonsmokers According to TI estimates, more than 70% of the general pub- lic is mildly to strongly opposed to smoking, with another 3 to 5% actively opposed to it. Whether these figures are inflated due to people responding to surveys in a way they think they should as opposed to how they actually feel has not been determined. ( It can safely be assumed for our purposes, however, that if smoking is allowed to be a central component in the excise tax issue, the opposition to TI's platform will stiffen in correlation to the amount of publicity it foments. Special caret must be taken to deliver a palatable presentation of the facts to nonsmokers so as not to alienate them before they know what the issue is about. By linking tobacco excise tax increases to other discretion- ary items, such as firearms, liquor, beer and wine, fishing equipment, air travel, and telephone service, a perceived fear may be planted in the minds of people who ordinarily may not care about orr even be actively opposed to smoking. Themes could be developed along these lines: 1. Where will tax increases stop? (Note: This would be treated in terms of both increased cigarette taxes and expansion of excise taxes to other items.) 2. They're paving the Capitol with your excise tax dollars! 3. Do you make more, but have less to spend? 4. Taxes -- where do they go besides up? 5. Excise taxes affect everyone. 6. E.T. (Excise Tax), go hooommme ... c

( ANTHONY h1. FRAh1CO IhTCORPORATED Page 15 An approach focused on inequities in the tax system may appeal to many people who are not disposed kindly toward tobacco consumption. The current political climate does not bear glad tidings for the legislator who increases taxes. Government intrusion into citizens' lives, whether in the realm of taxes or wiretaps, is apt to draw public protests from divergent segments of the public. Excise taxes in general can be portrayed, with historical precedents, as a system of government taxation designed to profit from the few commodities many people can still afford. It is regressive in nature, and an unfair burden on those of lesser means who strive to enjoy their life with the limited means available to them. Some themes suggesting this: 1. Only the tax burden tricklzs down! 2. (Repeated) Our legislators are using us for a quick fix! ( II. Special Interest Groups The message most apt to appeal to the interests of these groups would emphasize the regressive nature of tobacco excise taxes and the burden it imposes on those least able to bear it. Since the tax revenues generated do not benefit smokers any more than nonsmokers, the public uses to which those revenues are put are being disproportionately funded by the consumers of tobacco products. More specifically, 2.4% of Michigan's 1980 total tax revenues was supplied by cigarette sales. The taxes represented by that 2.4% figure were levied on only the 35% of the state's adult population who are smokers, but the revenues were spent on projects for the entire population. By contrast, the only user tax to exceed the cigarette tax in contribution to the state funds was that collected from motor fuels. Motor fuel taxes were largely reinvested in road works, serving as a direct benefit to those persons paying the tax. The same cannot be said for those paying tobacco C excise taxes.

( AN"THONY M. FR~NCO T1i 1CORPORATED Page 16 Increases in tobacco excise taxes will place additional bur- den upon the shoulders of the lower income groups. Low- income families and elderly persons on fixed incomes will be contributing a far'greater portion of their income from tobacco purchases than middle- to upper- middle-income per- sons smoking equal amounts of cigarettes. High levels of unemployment among blue-collar classes in Michigan have already placed an inequit'able burden of lowering inflation upon lower-income groups; additional taxation on some of the only commodities afforded these groups is an-unfair method of trying to right the capsizing state economy. All these points would be part of our messages to these groups-. ( III. Labor Unions Members of labor unions embody a similar profile to those individuals categorized as smokers. Messages delivered to the union leadership, and then to the union meribers them- selves, should be similar to those already directed towards the 'general public and public interest groups. An emotional issue based on a perceived threat may elicit strong support from labor unions and their members. It should be noted that these members will also be reached through our efforts aimed at the general public and special interest groups. C W ~ ~ IV. Retail Merchants ~ N .:~ Messages designed for retail merchants should focus on the .1 correlation between high tobacco excise taxes and low per capita consumption as reported in the 1977 Advisory Commis- sion on Intergovernmental Relations report, as well as the potential targeting of other commodities for increased excise taxes should tobacco set a precedent. Since retail merchants witness first-hand the gains or losses of current consumer buying trends, they could be sensitized to any taxation capable of affecting those buying behaviors. ~

C ,Au\THOiVY iM. FRANCO L\'CORPORATED Page 18 VII. Manufacturers/Industry While manufacturers may not elect to speak out on issues of excise taxes that do not apply directly to them, it may be possible to elicit general responses to excise taxes as an ongoing problem manufacturers must deal with. Closely rea- soned overviews of the inter-relationship between increased taxes and decreased per capita consumption must be presented this group, with invitations to join mutually beneficial coalitions as an ongoing relationship. The full weight of the tobacco industry would be instrumental in convincing manufacturers of the magnitude of this issue. Thus, endorse- ments from as many tobacco manufacturers as possible would be recommended for documents soliciting support. VIII. Special Groups Depending upon the nature of the organizations in this cate- gory, individual solicitations of endorsement would need to be developed out of combinations of messages already recom- mended. If it is determined that the groups in this cate- gory do not represent a significant-enough amount of support to warrant individualiz,ed treatment, then a general discus- sion of the issue and its relation to other potential targets for excise taxes would be employed. IX. T.A.N. Members Since this group has already been proven to be responsive to tobacco-related issues, a general overview of the situation, the steps being taken to implement tax increase opposition, and their vital role in building that opposition is recom- mended. It is important to maintain their awareness and support. C X. Media Information regarding positions, influential persons and groups joining our movement, and activities concerning tobacco-excise-tax-increase opposition must be continuously O supplied to the media in a rational, professional format. ~ Their trust in the sources of this information must be ,~ established, and a recognition of what is of real value to ~ them understood. Media interest in this campaign must be M~+ cultivated over a period of time if favorable interpreta- '~ tions of the issue are to be elicited. ~