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FLAIbiTIFF'b EXHISIT 22 Gcpy from ROBERT BRIAN ASSOCIATES ::a;; 10, 1:I_ 7 P_.J .-. Kent has a C7erchandisi:ryg allowance to the s:.lDermarlE t te n.,ents cer carton. This means the display space in the supermarket for _typical oG carton base display costs six dollars. In order to spend this ten cents a carto.^n more effectively, let us consider the following possibilities. Instead of giving an allowance of ten cents per carton for floor space display only, why not split it merchandis'_ng (j ) and advertising (5C). This would involve the same amount of money and would zet the f loor s^_ace as well as some tie-in advertising---advertising done by the supermarket chain---advertising that advertises the promotion. If the chain is supplied v:ith ad-m...ats 3cc1. x j" a nd 2col. x 2" for each Kent promotion, they could drop them in their newspaper pages and shtpper guide pages. 940 This is to the advantage of the chain because the Kent promotion is another item to build store traffic. It is also to Lorillard's advantage because the shopper would be informed of the promotion in advance and could plan to take advantage of it---making the promotion even more effective. Of course, ten cents a cartcn may not be sufficient to =et the c ain to advertise and merchandise. In this instance, pernaps more money---say up to 1¢ per carton---could be set aside. money could then be split to achieve the desired merc::andising and advertising. i.e. merchandising 7¢ advertising 5;: A standard advertising contract could be prepared for presentation to each chain, together with the necessary ad mats. The chain would qualify for payment by sending Lorillard a tear sheet and a copy of their invoice. The merchandising money would centi nue to be r:andled as it ::as been---pres..aNly `~- t:~e Lo_illa=- p~roc:otion ^a;,,~-_::ts de rt-e:~t--- .._ {:noc.:ed off tn:.:e _nvoice.