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Marlboro Hispanic Promotions 1988 Marketing Plan PROGRAM HISTORY Marlboro's involvement within the Hispanic community started in the late 1970's with participation in Hispanic Festivals. e ver the years, Marlboro has increased the scope of its i volvement in Hispanic programs by adding amateur hispanic ba ball & soccer, mexican rodeos, and a national soccer even II. CURRENT VROGRAMS In 1987, M\rlboro participated in the following Hispanic programs: -19 events ± -Sponsorship 14 markets f music entertainment Festivals prese visibility, howe position are limit a good opportunity for brand r opportunities to capture leadership d due to the structure of these festivals. There a hispanic market, and position. The recomm other ways to penetrate the till maintain a leadership dation for 1988 is to focus pation in major festivals. key markets with partic will be sure that all re other promotions. aining markets are covered o Amateur Sport Sponsorship Baseball ccer_ Los Angeles L Angeles New York New York San Antonio Miam Chica in on We by For the past three years Marlboro has ommitted to support grassroots amateur sports in ma~or hispanic markets. The plan for 1988 calls for Mar oro to discontinue sponsorship of its grassroots occer program and spend the monies to build other major p ograms. hispanic involvement to a national level. Due to the program's success, a national rollout program is recommended for 1988. the Marlboro Soccer Cup of Miami. This event extended\our sponsorships, by sponsoring a major soccer event tit d soccer, Marlboro expanded its amateur hispanic spor Capitalizing on growing interest nationwide in the\area of o The Marlboro Soccer Cup of Miami CONFIDENTIAL 025802

-2- o Charreada (Mexican Rodeos) execute programs w presence and which community. Charreada and are recommending deleting cause they do not generate the necessary all objective for 1988 is to develop and results. Our ove urrently in the developmental stage of ted hispanic programs. We have tested amateur sports; these programs creating targ Marlboro is ich reinforce Marlboro's leadership peal to all segments of the Hispanic ~ o Develop targeted pro otions toward the Hispanic community which offer igh brand visibility. o Position brand in a lea aw rship role within the Hispanic community via retail prog ams. o Utilize publicity to extend isibility. o Development of a major soccer promot)sqn which will enhance Marlboro's leadership positio o Test a Latin Music Tour program in major\hispanic markets. more effectively. o Increase Bar Night Program to target certain\geographic areas of opportunity and penetrate the Hispan`c market Hispanic sponsorships. o Develop publicity program to extend reach of Marloro CONFIDENTI 025803 Phoenix, AZ Dallas, TX Industry Hill, CA Los Angeles, CA Marlboro executed a test program in 1987 to determine potential participation in a Mexican rodeo program. The objective was to enhance our association with the t st program, we recommend, that we not to continue pa icipation in 1988. exican community. Based on the poor results of the III. 1988 OBJEJTIVES o Discontinue amateur Soccer and Rod)ko Programs. IV. 1988 STRATEGIES

o -3- Soccer Soccer in the United States over the last two decades has become a true American sport, which is played regularly by nearly ten million people. This American attachment to the game which, added to the overwhelming ethnic interest, produces a huge market base within the United States. The participation is vast, both in the native American sense and the ethnic sense with nearly every resident ethnic group claiming soccer as their port, particularly among Hispanics. T h Marlboro Soccer Cup will provide the brand with xc llent visibility, awareness and involvement in the Hisp ic Community. The ove\all program will consist of two key promotional elements 1. Reach he Hispanic communities in each city through sponsor hip of a major•soccer event and surrounding promotio 1 activity. 2. Develop a m rchandising program to insure retail visibility a d product trial. To maximize awarene for Marlboro, the following key markets have been ide tified: Los Angeles, New York, Miami and San Antonio. These four markets represent a potential reach of 42% the entire Hispanic population in the U.S. Breakdown: Hispanic Pop. (Thousands) Percent of Total Market Los Angeles 3,614.0 27.4 New York 2,495.6 31.0 Miami 739.6 41.7 San Antonio 889.3 48.3 The Marlboro Soccer Cup promotion wi1 feature superior international teams which will create a high level of competition at each event. Suggested teams to compete in the Marlboro Xoccer Cup promotion are as follows: Millonarios Colombia Juventus I ly Medellin Colombia Hyundai Ko a Boca Juniors Argentina Fluminense Braz'l Club America Mexico Olympiakos Greec Santos Brazil Roma Ita1y Unam Monterey Mexico BayernMunich West Ge Guadalajara Mexico Cruz Azul Azul any CONFIDEN 025804

-4- The overall time frame surrounding each event will average 4 to 6 weeks. The activities that will occur simultaneously with the major event are: -Coordination of soccer workshops or clinics adults. for young -A series of Bar Nights, primarily inheavily hispanic soccer communities. -Td~create a broader reach aside from spectators at the eve~t, each market will execute a retail tie-in. -The t in of a charity gives Marlboro ongoing event awaren s throughout the hispanic and anglo markets. o Latin Musi Tour Test Pro ram The most eff tive way to reach the hispanic consumer is through entert inment. A latin music test program will aid Marlboro in i t s reach to all segments of the Hispanic univers A latin music prog m will give Marlboro a sole presence versus participation in hispanic events with many other corporate sponsors. e objectives set for a Latin Music Program are as f lows: -Reinforce leadership pos'tion in Hispanic markets through a program that re forces brand image. -Create high impact music pro`qram to effectively reach young adults. -Develop effective retail support-\through event promotion. -Create community awareness of Marlb o involvement in Hispanic Market through highly visib public relations. e~ oro the The flexibility of this program gives Mar opportunity to customize each program base on market and business needs. Key markets will be uti ized to enhance Marlboro's overall awareness and lead rship position within the Hispanic community. It is evident that the Marlboro Country Music Pro ram realize cost efficiencies. country music concerts, to utilize their technology d will try to schedule our latin music test event aro d utilizes the best in technology. Whenever possibl we CONFIDENTIqL 025805

-5- o Creative` Materials Specific materials will be developed to give Marlboro high visibility at retail which will appeal to the Hispanic consumer. o erchandising Ma boro incentive items are very popular with His nics. In order to place Marlboro in a leadership posit'on we should consider utilizing Hispanic- related items. Further we recommend customizing our sweepstakes program o this ethnic group. It is recommeri Accounts to off highlight our pa M.A.G.A. (Mexican that Marlboro work with National a special retail program where we ticipation in the market. Tie-ins with West Coast, Fiesta and other major chai erican Grocers Association) in the n Texas, Metro Spanish in New York, s will enhance Marlboro's awareness ity n in the Hispanic commu Each event will give Marlbo the opportunity to entertain key accounts and to enhance its business relationships with major Hispa 'c leaders. o Trade Relations o Publicity Publicity is an important element of sponsorships, and a major publicity p developed for each program. The Marlbo Network System will be utilized to broad the program to markets nationwide. Awaren in placing Marlboro in a leadership position of our will be Affiliate the reach of ss through our efforts Hispanic media in each market should assist CONFIDENTI 025806

PROMOTION COMPONENTS: BUDGET -6- 1986 Charreada Festivals ort Sponsorship S pling (500K sample 6's) Ma boro Soccer Cup* Lati Music Tour Test* Budget \ $.07 1987 1988 $0.35 - $0.45 $0.05 $0.30 $0.01 $0.15 $0.15 $0.25 $2.99 $0.3 $1.5 $3.5 1988 incre se due to expansion of the Marlboro Soccer Cup and Lat Music tour test program. *Additional funds ?r retail programs wi11 be allocates out of total brand budg t. CONFIDENT 025807