Tobacco Documents Online

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An Account Born Out of Client Frustration I I I I I I I I I I I I f I I I • Attacks on smoking/smokers escalating • Social acceptab' 'ty declining • Industry response reactive, or non-existent "What, if anything, can be done to turn around or slow down the erosion in the public acceptability of smoking?" Hamish Maxwell Chairman & CEO Ph' 'p Morris Companies Inc. to Harold Burson Chairman & CEO Burson Marsteller August 1986 Burson•Marsteller 1

I I I I I I I I I I I I I I I I I I I A Challenge Compounded By • Industry disarray - No coherent industry front - Trade association weak and getting weaker - Lack of political leadership - Weak consumer profile • Industry embarrassments - Heavy-handed tactics - Marketing misjudgments • Continuing legal considerations/restraints • Inherently low credib' 'ty • Quixotic search for the "silver bullet" ~. ~ Burson•Marsteller 2 cp w IN" ed

I I I I I I I I I I I I I I I I I I Components of the Challenge: A Sampler • EPA RISK ASSESSMENT • ENVIRONMENTAL TOBACCO SMOKE • WORKPLACE BANS/RESTRICTIONS • FEDERAL/STATE EXCISE TAXES • PACKAGING RESTRICTIONSBANS/ TAXATION • SAMPLING BANS/RESTRICTIONS • ADVERTISING RESTFJCT10NS • PUBLIC PLACE BANS/RESTRICTiONS • VENDING MACHINE SALES BANS • PRIMARY HEALTH ISSUE • TAX EARMARKING • PRODUCT LIABILPIY SUIl'S • ADDICTION • WARNING LABELS • ADVERTISING BANS • ADVERTISING DEDUCTIBILITY • ADVERTISING TAXES • SOCIAL COSTS ARGUMENTS • PROMOTION BANS RESTRICTIONS • AIRLINE BANS • VOLUNTARY BANS/RESTRICIIONS • INGREDIENTS DISCLOSURE/IABELING • FEDERAL PRE-EMPTTON • VIOLENCE AGAINST SMOKERS • CONGRESSIONAL BASE EROSION • NEW PRODUCT CONTROVERSY • TRADEMARK INFRINGEMENT • WORKPLACE DISCRIMINATION Burson•Marsteller • STOCK DIVESTITURE • MINORITY BOYCOTTS • GAY BOYCOTTS • PROPRIETARY DISCLOSURE • LINKAGE WITH ILLEGAL DRUGS • STRICTER STATE STANDARDS • EXTENDED PRODUCT BOYCOTTS • PICKETING/DEMONSTRATIONS • INSURANCE RATE DISCRIMINATION • FIRE SAFE PRODUCT DEMANDS • INDOOR AIR QUALITY • MEDIA BIAS • TRADE BARRIERS • SCIENTIFIC JOURNAL BIAS • ORGANIZED `ANTI' MOVEMENT • AGE PURCHASE RESTRICTIONS • CARCINOGENIC DESIGNATION • TORT REFORM • CONGRESSIONAL HEARINGS • AGRICULTURE BLOC EROSION • SPONSORSHIP LIMITATIONS • TARGETING OF EXECUTIVES • PES'IICIDE/ HERBICIDE CONCERNS 3 I

I I I I I I I I I I I I I I I I I The Burson Marsteller Response • Successfully meeting an early PM challenge/test • Solid research • Heavy senior involvement - Counseling - Relationship building • Strategic counsel • Creative approaches • Solid execution • Maximum u'' tion of B-M system resource • Flexib' 'ty Burson•Marsteller 4 I

I I I I I I I I I I I I I I I I I Overarching Strategy Move Philip Morris to the middle; isolate activists • Replace activist driven monologue with dialogue • Question questionable assertions of opponents • Defend PM's consumer constituency I Burson•Marsteller 5

I I I I I I I I I I I I I I I I ~ 0 ~ ~ , Burson•Marsteller 6 '~ w ~ No "Silver Bullet" But .. . The Great American Smoker Progam • The challenge project that got us started • Almost caused the sponsors to drop the Great American Smokeout Smoker Newsletters • Direct communications with 1 ' 'on smokers, state by state PM Editorial Services • Camera-ready articles and commentary to 7,000 heartland newspapers • Dramatically shifts coverage from mostly negative to balanced I w

I I I I I I I I I I I I I I No "Silver Bullet" But .. . The Accommodation Program • Massive Pittsburgh pilot program to change attitudes • New logo, heavily advertised, to welcome smokers/non smokers • Possible rollout to Atlanta and elsewhere Par}Europe News Bureau • First real coordination of PM communications in Europe • An exercise in relationship building in a nearly feudal system 1 0 ~ -2 ~ Burson•Marsteller 7 ~ t'.2 I °

I I I I I I I I I I I I I I I No "Silver Bullet" But .. . Sports Marketing • B-M corporate/public affairs synergy with Cohn & Wolfe marketing • C&W competitively wins Marlboro racing/ music, Slims tennis • B&H music, Parliament Sound, Merit Comedy, Cambridge Bowling • Launch of Marlboro Adventure Team starts today State Lobbying Support • Coordinated multioffice support to f ght taxes, other issues • Synergy grows with successes General Media ~ Cri, o • sls preparedness, ,~ ~ media training/support ~ ~ Burson•Marsteller 8 rW? I NO) cn !

I I I I I I I I I I I I I I I I How the Partnership Has Evolved Vertical Integration Heavy senior and junior staff involvement with counterparts at PM Horizontal integra~tion Maximum u'' ation of system's worldwide resources Worldwide, the Partnership Means • PM/B-M learning curve nearly identical on range of complex issues • Instant response to crises • Institutional memory • Successful campaigns and promotions are shipped from one country or continent to another, if appropriate Z1Z en ~ ~ 00 ~ Burson•Marsteller 9 '.2 w Z11D ~ P