Tobacco Documents Online

04/06 '92 17:24 '$33 14?382297 PHILIP MORRIS i4-> P.M.C.S BRUSSELS Ia 003 FRA.NCE : PROPOSED ACTION PLAN TO AMEND THE TOBACCO SPONSORSHIP BAN PHILIP MORRIS FRANCE CORPORATE AFFAIRS DEPARTMENT JUNE 3, 1992

04/06 ' 92 17 : 24 $33 1 47382297 PHILIP MORRI S P. M. C. S BRUSSELS 1@0a4 MEMORANDUM FRANCE I SPONSORING BAN BACKGROUND The French anti tobacco law, also known as the Loi Evin, will enter into force on January 1, 1993. In addition to its general advertising ban, the Loi Evin will make it impossible for Philip Morris to sponsor motor vehicle competitions or any other kfnd of events. This situation poses a major problem for Philip Morris. Sponsorship hitherto has remai.ned one of the few areas in which Philip Morris has retained some freedom to give its brands sigaif cant public exposure through broadcasts, photos and reports.. Moreover, sponsorship is not yet prohibited at the European level, and the ban in France may be used as a precedent at the EC level. This situation jeopardizes the sponsorship operations of Philip Morris on a European scale and could be reversed, if at all, only at great cost. Conversely, success at reuistalliug sponsorship in France could provide significant impetus to Philip Morris' European efforts. Success of our proposed action plan would considerably benefit the French market and other markets at the EC. The current European context with regard to tobacco sponsorship legislation is still very much in flux, and the evolutioa of the French legislation may set a precedent one way or the other. 2501360174

04/06 '92 17:25 '$33 1 4738229? PHILIP MORRIS P.M.C.S BRUSSELS IM OOS . SITUATION ANALYSIS . OSJECTIYE To amend article 3 of the Loi Evin, and gain an exception to its ~ sponsorship ban, most likely through a law contained in an omnibus bill. . STRATEGY - To achieve our objective, we must act on both grounds : 1. The suburbs and its solutions, - 2. Sport and cultural sponsorship, in an effort to demonstrate that : * These events are popular, * Inhabitants of places where these events take place support their continuation, ~` Mobflization can take place and cause problems to the political equilibrium. - Endow sponsorship with a social dimension by taking advantage of the draft legislation on urban areas, which will probably ask corporations to help suburbs via sponsorship activities. - Offer sponsorship activities by tobacco companies as one solution for the severe urban problems. - Mobilize parties with vasted interets in current sponsorship activities. - Use the problems of the inner-cities as a political cover for the proposed amendments. 2501360175

04/06 '92 17:25 '$33 1 47382297 PHILIP MORRIS ~-~-~ P.M.C.S BRUSSELS Q006 4 . REMARgS ON THE FRENCH STIUATION Philip Morris has an opportunity to advance its goals in the cutrent socio-political situation. The social problems of suburbs (roughly equivalent to those of US inner cities) are becoming a national issue in France, and a law that would set up a scheme through which private companies sponsor sports facilities and equipment is currently being considered. in a nutshell, Philip Morris may be in a position to support the suburb sponsorship scheme in exchange for an exception to the sports sponsorship ban, specifically in respect to motor vehicle competition. Such a trade-off would also be of interest for the cities and regions in which motor vehicle events take place, because the upcoming ban would deprive them of significant financial resources. . THE FRENCH NMA Neither the CDIT (Centre de Documentation et d'Information sur le Tabac) nor the GFCC (Groupement de Fournisseurs Comm.unautaires de Cigarettes) (the French NMA) have any plans to fight the tobacco sponsorship ban. sPMF EG PM Marketing remains favorable to any action which allows PM sponsorship activities. , Marketing projects 1993 are complementary to the CA proposed project. Marketing and Corporate Affairs will cooperate and implement together the attached action plan to make it become a usefull marketing tooL 2501360176

04/06 ' 92 17:25 '$33 1 47382297 PHILIP MORRIS ~-+-+ P.M.C. S BRUSSELS 000? 5 . TIMING Since the ban will enter into force on .Taauary 1, 1993, it would be necessary to have amended the law before the end of December 1992 (the Fall parlia.m.entary session takes place from October 2 to December 22). The only second chance would occur if the ma,jority changes after the March 1993 legislative elections. In addition, we need to take advantage of the momentum generated by the activities undertaken on the decree prohibiting smoking in public places.

04/06 '92 17:25 'a`33 1 47382297 PHILIP MORRIS -- P.M.C.S BRUSSELS 1a 008 6 ACTIO N PLAN The team which will be working on that issue (EPSY/RES, B&M, and Sales, Vincent & Georges) will be coordinated by CAPMF and PMCS (G.WIRZ / A.FILIPPONE ) with PMF Marketing department's input. . PHASE i : - Prepare PhBip Marris= actions '~ Survey of suburbs which are considered as "problematic" for the government - reaiisation in cooperation with all relevant social and political institutions. (RES) * Identification of needs and deffinition of PM's suburban sponsorship project. (BM I RES) * Definition of messages and arguments on the role of sponsorship. (BW * LegitiMize and develop the image of PMF as a "good corporate citizen". (BM ! RES) '~ Identification and training of political, labor, social, athietic'cultural, and Philip Morris spokespersons. (BM ! RES) * Drafting of amendments to the Evin law and lobbying related action. (SVG) * Drafting of proposals to the Commission dealing with the "law on cities". (SVG) Tuning : June. N cn 0 ~ w rr 0 ~ ~ os

04/06 '92 1T:28 $'33 I 47352297 _ PHILIP YORRIS +++ P.Y.C.S BRUSSELS W0Dg 7 - Creating public awareness *"Negociation phase"of the results of the RES suburb survey with key policy makers (targets : government, suburbs'coalitions, local representatives and political parties). (RES / SVG) * National and regional press conferences announcing the end of athletic sponsorship and consequences for automobile racing. {Br'i) = * Disseminati.on of_ existing RES mayors'surveys results and of suburbs'surveys (after the negociation phase). (BM / RES) * Media relations. (BM) s Grassroot campaign to suburb coalitions using survey results. (RES) . * Initial mobilization of ipectators at lviagny-Coius with VIP events and media relai%ons. (BM) * Dissemination of a leaflet on the role of sponsorship, PM sponsorship, with a reply coupon. tBiVn The same stra.tegy will be used for all the cultural and athletic events of the summer. Timing ~: mid-August. 250 3.3501?9 - Creating awareness among elected offficiaIs *"Sport and culture" survey (target : French Fl Grand Prix and the 24 heures du Mans - both events take place in areas where locally elected off"Icials belong to the "presidential majority"). (RES) '" "Negodation phase" with results of both RES "suburbs" and "sports and culture" surveys. (RES / SVG) * Dissemination of the findings on the occasion of individual meetings with locally elected officiaLs. (RES / SVG) x Presentation to Iocally elected officiais of PM's suburban sponsorship project. * Invitatioa to French and European PM sponsored events (ie FI) {on going senstbiiization / Iobbying program 1992/1993).

04/06 ' 92 17: 26 '$33 14738229? PHILIP MORRIS -~-~-+ P.3i. C. S BRIJSSELS Q010 E * Para.llel media relations campaign on integration and the social role of sponsorship. (BM) Timing : mid-August. - Social actions: * Negociations with city governments and the Ministry of Youth and Sports to take young adults to automobile races during the summer. (SVG) = Media relations. (BM) * Mobilize third parties (unions, economics policy markers, etc..,). - (RES I SVG) T'.;ming : mid-August. - Plan to phase H will be developed by mid-August according to : * Results of the "negociation phases", * Status of the legislation on urban areas, * Analysis of reactions of mayors and elected officials to PM project, * Results of media coverage. At this point, the plan could be stopped or continue into phase Ii. If we continue into phase II, we will have to use the "suburbs" and "sports and culture" coalitions to force the acceptance of an amendment to the Ioi Evin. r.. t3~ O

04/06 ' 92 17: 26 $33 1 47382297 PHILIP MORRIS ->--+ P. M. C. S BRUSSELS 1a011 SPONSORSHIP BAN - ESTIMATED BUDGET L SALES, VINCENT & GEORGES Global budget FF 900 000 (including legislative work, lobbying and active monitoring). II. BURSON & MARSTELLER Consulting 500 000 Definition of French sponsorship program 250 000 4 media trainings 280 000 4 press conferences (3 outside Pad.s) 500 000 Media relations (6 months) 300 000 Media events surrounding PM sponsored events (10) 600 000 Grassroot activities (mass mailing, press kits, etc) 500 000 TOTAL FF 2 930 000 These costs do not include PMs'sponsored youth programs during the summer. 111. EPSY I RES Survey "suburbs and solutions" ans its exploitation 380 000 Survey "sport and culture" and its exploitation 237 000 Grassroot program for the dissemination of bothh surveys 350 000 Consulting (6 months) 300 000 TOTAL FF 1267 000 . GRAND TOTAL FF 5 097 000 No#a : These costs have not been totally reviewed between PMF and its consultants, but give an overall picture. 250i3b0i$ i

O4fUB '92 17:27 $33 1 47382297 PHILIP MORRIS -+;-+ P.M.C.S BRUSSELS IM012 FFY8N23St-1t TIMETABLE PHASE 1 ACTION JUNE JULY A UG. SEPT. OCT. Getting n:ady : Sports & culture survey x x Survey & suburbs x Identify sponsorship needs x x Messages development on sponsorship roie X X Legislative work X X Identification & trai_n~n gg ' of spokespersons X Invitation of young adults of inaer cities to participate in PM sponsored events X Development of PM sponsorship project for inner ci.ties X X lYfobiliblng public opinnfon : Press conferences (national - & region.al) X X X Marketing of survey's results X X X X On going media relations X X X X Grassroot campaign X X X VIP reception with mayors, MP's senators at each PM sponsored event X x Invitations to PM sponsored events X X X X X u~, 0 Distribution of information w on sponsorship role at each o PM sponsored event X X 00 rNa Oa going lobbying X X X X X Coalition building X X X X X