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P. LORILLARD CORPORATION MERCHANDISING OPPORTUNITIES , June 2, 1970

CONTENTS CARTON EXPLOITATION PACKAGE DESIGN EXPLOITATION INNOVATIONS IN M'ARKETING CONSIJMER,TRADE,SALES FORCE PROMOTIONS

RATIONALE There are many merchandising opportunities for Newport and for Lorillard in the post-broadcast period after the end of the year 1970. In reviewing and analyzing this material it is important to remember that many marketing possibilities not now appropriate or practical will become regular activities in the post-broadcast period. It is with this point of view that these marketing ideas have been assembled. Some of these ideas present problems in production, packaging and distribution, but these problems must be solved to make our new pro- grams workable. In fact, developing a new versatility to meet new challenges can be a marketing opportunity in itself in the post- broadcast period. These ideas and approaches can be considered seriously for trial, testing or immediate use now to determine their feasibility and market projection later on when broadcast media are not available. Even though the new market conditions apply equally to all cigarette producers, the manufacturer who gets started first with new marketing and promotion techniques will gain an advantage. There is an opportunity (as well as a need) for imagination to increase the interest of both consumers and trade in Newport. There is also an opportunity to involve consumers and' retailers more actively with the product and its merchandising and promotion.

.4- CARTON EXPLOITATION The Newport carton offers opportunities as a promotion medium at the point-of-sale. Attractive premium offers can be featured on the carton to stimulate carton and multi-carton sales. The carton may be used for attractive continuing premium offers of'male-oriented and family merchandise like sports goods, ,leisure equipment, tools, appliances and table ware. The offers of attractive, self-liquidating premiums are made on the carton, and the order form on the carton is proof-of-purchase. To sustain consumer interest these offers are changed periodically (up to six times) during the year. Special on-carton premiums (radios, steak knives, etc.) can be factory packed and specially priced for carton-sales outlets. Display shippers, riser cards and other point-of-sale can gain extra exposure for the promotion and for Newport.