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RJ Reynolds

Listed Below Are the Answers to Your Questions (Sheets Attached) Regarding Winchester Cigarettes:..

Date: 05 Sep 1974
Length: 4 pages
500766909-500766912
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Type
LIST
Attachment
6883 -6912
Site
Marketing
Request
Minnesota
1rfp93
Recipient
Powell, R.
Corporate Public Relations
Date Loaded
27 Feb 1998
Named Person
Irs
Ftc
Haynes, M.
Us Treasury
Us Justice Dept
Moss
Banzoff
Box
Rjr2335
Characteristic
Marginalia
Brand
More
Winchester
Winchester Little Cigars
UCSF Legacy ID
hxj69d00

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Page 1: hxj69d00
i Mr. Rob Powell Corporate Public Relations September 5, 1974 Listed below are the answers to your questions (sheets attached) regarding WINCHESTER Cigarettes: Answers: 1. No--This definitely was not our intention. Our intention was to market a Little Cigar product, which, at the time, was per- fectly legal to advertise on television. This effort was ex- tremely successful, as we tripled the Little Cigar market and captured 66% of the Little Cigar market in the first six months. However, governmental pressures forced us to remove the Little Cigar ads from TV and ultimately banned Little Cigar advertising from TV. This, coupled with states taxing Winchester as a cig- arette thus eliminated our major consumer benefit (price advantage over cigarettes) caused a continuing decline in Little Cigar sales-- to the point where it has become economically unfeasible to adver- tise the product. Subsequently, we decided to use this powerful Winchester image on a cigarette in order to recoup our investment in this advertising image. 2. To elaborate on #1 above, to utilize the image already established for the Winchester product, which has proved successful for ad- vertising purposes. 3. No--To our knowledge this has never been done. However, some smoking tobacco products have tried to market a cigarette with the same name (i.e., Half & Half). 4. Winchester Little Cigar differs from the cigarette in two basic ways -- 1) The Little Cigar is wrapped in reconstituted tobacco, while the cigarette is wrapped in paper; 2) The Little Cigar uses a blend of fermented tobaccos, while the cigarette uses normal American-blended cigarette tobaccos (flue-cured, burly & oriental ~ .- iGt'1t tobaccos). The reconstituted tobacco wrap and the fermented tobaccos are what are required by law in order to be classified a cigar rather than a cigarette. 5. I do not know what their reaction will be; however, since they believed that Winchester Little Cigars were really "cigarettes masquerading as cigars," we believe that the introduction of a product which truly is a cigarette should alleviate their con- cerns that the Little Cigar was a "cigarette in disguise." rn a, ~ 0 .D
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2 6. This is not necessarily true, as sales were declining while we were on TV, and they continued to decline at approximately the same rate once we left TV. The real problem was consumers. 7. No--Michael Haynes will no longer be used on Little Cigar advertising. 8. Basically the same format we used on the Little Cigars; however, we will now clearly state that we are a cigarette. 9. The Little Cigar budget has been reduced because of declining volume. However, all of our Brands are separate profit centers; consequently, each Brand's profitability has to stand on its own and is not used on other products. 10. Winchester Cigarettes will be positioned as a full flavor Filter cigarette and high Menthol flavor to all adult smokers, with par- ticular emphasis on the 21-34 age bracket. 11. We are trying to continue to project the romantic, masculine image of the Winchester Character. 12. The ATF (Alcohol, Tobacco & Firearms Division of the U.S. Treasury Department) is the governmental agency which classifies tobacco products & has been exposed to the cigarette. However, they have not examined it, as the cigarette classification is in the highest tax bracket for all tobacco products. Consequently, if you want to market a cigarette, they will be more than happy to classify it as such. 13. The 'tar' and nicotine levels of the cigarettes are 18 and 1.3 for the Filter and 19 and 1.4 for the Menthol--which are a little lower than Winston cigarettes. They do not compare to the cigar, as cigars use totally different kinds of tobaccos,and 'tar' and nicotine numbers are not applicable on cigars. 14. I believe this is a Corporate question, since the low 'tar' and nicotine category hasn't really grown in the past four years. I'm not really sure what you mean.... The trend_is toward low 'tar' and nicotine brands. 15. The charge was never made,to our knowledge, that the Little Cigar was simply the means of establishing the Winchester name and the acceptance of the idea of a "brown paper" cigarette. The charge was made that Winchester was a brown paper cigarette--which was "' 0 not held by either the classification body (ATF) or the Justice o Department--both of which classified Winchester as a Little Cigar. a We are using the Winchester character/equity on the cigarette be- a cause we have made a considerable investment in this character ~c (image), and it is becoming increasingly difficult because of o states taxing Winchester like a cigarette, to continue to adver- tise, in this declining market. Therefore, we decided to use this investment on a cigarette product in order to pay back our investment. ########
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I Probable Questions -- Winchester Cigarettes 1. Isn't it true that Winchester little cigars were just a method of establishing the Winchester name th rough television before introducing the cigarette? 2. If this is not the case, then why is Michael Haynes, the "Winchester Man", being used as the symbol for the cigarette? 3. Is there any precedent for introducing a line of cigarettes with the same name as a cigar brand? 4. How does the physical composition of the Winchester cigarette differ from that of the little cigar?. Specifically, how do the tobaccos used in each differ? 5. What reaction do you anticipate from those who opposed the advertising of Winchester little cigars on television such as Senator Moss and Mr. Banzoff? 6. Isn't it true that sales of Winchester little cigars are { declining since the brand was removed from television? , What influence did this have on your decision to introduce ; the cigarette? 7. Will Michael Haynes continue in ads for Winchester little cigars? 8. What type of Advertising will be used for the cigarette? 9. Will the little-cigar ads budget be reduced and if so, will the money be used for Winchester Cigarettes? 10. Where do you feel the cigarette will be positioned in the market? 11. What image are you trying to project through your advertising for the brand?
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-2- 12. Have government agencies such as the IRS and FTC examined the cigarette as they did the cigar? 13. How do the tar and nicotine levels in the cigarette compare to those of the cigar-to Winston cigarettes7 14. (If tar and nicotine numbers comparable to Winston) You have now introduced two new "full flavor" brands, More and Winchester. Isn't this in apposition to the current trend toward low tar and nicotine brands? 15. When you introduced Winchester little cigars, the charge was made that you were simply marketing a cigarette wrapped in brown paper. Now you have introduced "More", a cigarette wrapped in brown paper, and a Winchester cigarette, events which would seem to lend some weight to the charge that the statement that the little cigar was simply the means of estab lishing the Winchester name and the acceptance of the idea of a brown-paper cigarette. What comment would you make in answer to this? I

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