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I I I I I I I I I I I I I I I I I I I Initial considerations regarding PM's PR strategy based on the PM corporate image sttdy (presented on October 14, 1985) The comprehensive and detailed image study still requires more objective analyses to be able to grasp all the pro- blems in depth and relevant scope. It is clear that there are two main points that require an answer. These are: 1. As a business enterprise, PM has not yet succeeded in developing a profile of its own in relation to the com- petitors. In regard to the characteristics attributed to it, the company, considered from the point of view of the general population, the trade and the opinion formers, is more or less identical with the profile of the other competitors. 2. The problems of "smoking and health" are fully penetrated on the whole. This statement also applies to the trade which should be our alliand partly also to our own emp- loyees. The opinion of all the opinion formers (journa- lists, politicians, public authority officials, etc.) on the subject of "smoking and health" is negative, partially dangerous for our product. The overwhelming majority of the opinion formers as a rule start from the assumption th at smoking is an addiction smoking borders on the taking of drugs smoking represents a hazard to non-smokers children and youngsters must be kept away from smoking although it is still tolerated in the case of husband or wife. I

- 2 - I I I I I I I I I I I I I I I I I I Because the opinion formers assume that not enough information has yet been given on the problems of "smoking and health", it is to be expected that negative talk on the problems of "smoking and health" will continue. It is thus to be expected that all political decisions will be regarded as popular that make access to ciga- rettes difficult for youngsters, result in further ad- vertising restrictions and enforce additional bans on smoking (place of work, public transport, etc.). 1. PM's lack of profile It goes without saying that a firm's public image in relation to the competitors, potential and existing emp- loyees, opinion leaders, etc., must be stamped with a profile,of its own. This independent profile gives greater opportunities for the product and the messages the firm is conveying to its situation in the market and vis-&-vis problem groups. An independent profile today is achieved by a corporate identity strategy. In view of the firm's strong points the corporate identity of PM ought to be characterized by the following: - PM is a company that is characterized by the high quality of its products and through outstanding research work does everying to offer the consumers products minimizing the health risks. Our public statements must be unassailable through their high degree of credibility. The conduct of the enterprise as a whole is dynamic, young and oriented to human beings. - Through our product we convey pleasure, relaxation and the joy of living. I

3 I I I I I I I I I I I I I I - We undertake to foster tolerance in all spheres of life. 2. PM and the subject of "smoking and health" The influencing of opinion formers and public opinion on the subject of "smoking and health" is primarily a task of the industry and its federation (VdC). The present state of opinion on the subject of "smoking and health" among opinion formers and the general public points to omissions and errors in this matter of influence. PM's strategy must therefore be to activate the federation and to use every opportunity to seize the initiative to build up counter positions and initiate new (positive) flows of opinion. There is no doubt that with the traditional product ad- vertising we cannot solve the problems we have to face in regard to public opinion. It is conceivable for PM to take the following measures: Put forward arguments to the effect that PM, with its research know-how, is in a position to minimize the health risks of smoking on the basis of the highest scientific level of knowledge. This implies that we put products on the market which convincingly support our own know-how. The public must first be made more aware of our international research resources. One vehicle of persuasion could be the Philip Morris Research Award. , There must.be more propagation of this award, because the results of the image study have so far shown that N) ' the public is not fully aware of the award nof of the Q research work. ~ w ~ ' ~ ~ I I

i I I I I I I I I I I I I I I I I I I 4 - Guided by the PR activities of other problem in- dustries (pharmaceuticals, spirits, cars), the lobbying of political decision-taking bodies must be intensified on a very wide scale. PM must establish its own contact levels to achieve this objective. - Through personal contacts of the management and managerial level 1 with the regional decision-taking bodies, we must try to get opinion leaders (politicians and public officials) to show more understanding and sympathy for our enterprise and our aims. - PM's press work must be more personal and direct. PM must endeavour to get the industrial federation (VdC), mainly through its presence in Bonn, to build up a level of influence which is comparable with the activity and successes that have made far more proble- matic industries secure among political representatives of public opinion. October 14, 1985 FB/rv I