Packaging and Pricing
Max Meeting Agenda
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91635724
... ~ACKGROL~D
... .RESTAGE RATIONALE
._. ?RODU~ OBJE~I~
.... ~STAGLWG ~CO}~DATION & ~T~0N~E
... i~ ! PIAN '& ~+~TIONA~
INF0~,~.TION~ ~EDS
... ACTION SOUG2~
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BAL"KGROU~D
-- MAX WAS L~IIN6EED IN 1975 IN ANTICIPATION OT TF.E
120~I CATEGORY ACHIEVING A ~% S~ARR.
SI~AP, E HAS ~.~VERED ,%RODED .17 STECE ITS
HAS FALLEN Y0 .i5 IN 19'80.
CURRENT I-t~CK AT 18 HC-. "TAP, IS UNABIE TO PAKT~CZ~FATE
EN THE ~F-EED TOWARDS RP'.T~IICED
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PUKPOSF.
THE OVF~RALL PURgCSE OF ~'~S Y~ETING IS TO
D"_SCUSS ~HE P, JT, S'L'~_GING 0"~' MAX 120~S AS A T.O~' T.4K
1002"~.f BRAblD.
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~ESTAG~'~T~0HALE
-- LIMITED GP~I~.,{ POTENTI~.L OF ~ 120~'~~. CATEGORY.
MAX'S CUB_RENT TAKGET -- LTSCALE ~00~'¢~f YEY.~tLE SI,DKEE~q.
GOOD BUSIhU~,SS OP?ORTLqg[T~2 EXISTS FOR A WO.MEh"S CIGAKETT~
5UILT ON A DISTINCE I~AGE.
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PRODUCT OBJECTIVE
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LIGET~ iOC.' S
OPTIONS
II~T~ODUCE NATIONALLY AS SOO,~{ AS POSSI]~LE WTT.~
23.0>~~. CIR~/.~EREI'~CK C~T~ ~ A $OTT PACK
BOX.
TEST AS S00[~ AS POSSISLE WI'IE A '~3.01-=~ CI_~CU~ERENCE
I[4 A SOFT PACIC CR BOX.
-- TEST AS SOON ~3 ]~0SS~5L5 WITH
II{ A SO~Z PACK.
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MAX LIGSTS 10O's
MANUFACTURING I:4PLI.C.AT 10~ $
T£51 ~ATTO~L
CO$'~ TIMYNG TIMING
TEST
23,0/Scf~ Pack $ 85M July~ 1981
SepC., 198~
23,0/~ox $I~8M Oct., 1981 April, 1983
24.8/Soft Pack - 0 - April, 198l Jan., ~982
NATIONAL
23.0/Soft Pack $182M - July,
1981
23.0/Box $968M - O¢~., 1981
NOT~
end I0 ~e i~ months for ~ox machinery.
The timin8 based on ~stin~ before netlonel
required for national quanti~ies.
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RE CO~END,%T ~ON
-- INtrODUCE NATTO~ALL¥ Ih' JIILY~ 1981 WI~ ~ 25.~
CIRC~'fFE~NCE IN A SOYT ~ACK (UP FRO~ CAPITAL
~NVES~NT $182M).
~TION~IE
-- AD~A,~.E BY DE~YII{G NATf0NAL
ZN'IRODUCT!O~ T0 ~AD TEST.
-- ~L*~ CCRRE~T ~SER BASE WILL CONTIN~ TO DECLINE IF
NATXO~L ~U~{CK IS DE~YED.
-- 23.0~ CIRC~ERENCE IS DISI'ZNCTZ%~ AND G~tX~UL
AND WIlL E~ANCE THE B~D'S I~ZE.
-- SLIM CXR~E~NCE WILL MINIMIZE C~NT 8SEK DEFECTION.
A C~TT~ FOR WO}~N,
-- INC~ASED BUSZ~gESS POTENTL~ AS A ~OO~.
-- A%'0ID THE CD~T ~D INCON%~NIE~CE OF M~D TAX ST~>~INO.
-- ~U~;TALLY, A 50X PA~!~ WODiD ~E P~F~R~, HOWE%:ER,
~T Ifi NOr ~CNSIDE~D CRZTIC~L TO N~ LZG~T$ ~00's SUS~8S
-- L~ RISK PROPOSITION GIVEN I~E TIMING ~K~ MII~I~L CAPIT~
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80%/20% FR~NI L0~D~
,700 .300 .500
A ~EAV¥ COMTETITIVE CL~I.IAT~.
-- FOKT~E RESTAGE TO BE SUCCKSSFG~, THE SPENDING EFFORT
RAS TO GO AGAINST A BEOADEK TAKGET AUDIEnCe.
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Inazenental
Tozal Incrmnenta~
,. ~gs~u~az~s
250 i00 i,i00 "'" 1,350
ZOO --- 100
500 ~,~o0
3,700~"
Budget,
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