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RJ Reynolds

Sales Training Entry Program Binder. Trainer's Guide.

Date: Jun 1985
Length: 661 pages
504821552-504822212
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Fields

Type
MANUAL
REVISION
Site
Sales
Best Jw
Dir Sales Organization Development
Request
Order
19960800
Minnesota
1rfp52
1rfp93
Mangini
Court
Named Person
Rjri
Rjr Intl
Rjr
Kfc
Heublein
Del Monte
Sealand
Aminoil
Compumark
Rjr Development
Kroger
Revco
*7 Eleven
American
B&W
Liggett
Lorillard
Philip Morris
Cerretani Supermarkets
Reynolds, R.J.
Ti
List, O.F. Parent, C.O.
List, O.F. Subsidiaries
Archer
List, O.F. Officers
Sanders
Rjr Foods
Morton Frozen Foods
Arrow Liquers
Coastal Valley Canning
Beaulieu Vineyard
List, O.F. Rjri Officers
Ftc
Gasp
List, O.F. Stores
Doe, J.
Jones
Midtown Tobacco
Abc
True Checks
Acs
Ctr
Hhs
Nhlb
Education & Research Foundation
Ama
Harvard Medical School
Washington Univ
List, O.F. Natl Institutes, O.F. Health
Veterans Administration
American Heart
American Lung
Univ, O.F. Ky
Niehs
Nichho
Nida
Va
Univ, O.F. Ca
Aha
Ala
Nih
Ara
Jones & Sons
Canteen
Servomation
Us Treasury Dept
True Check
Hixon, J.W.
X, Y. Z Vending
Automatic Vending Service
Quality Vending Service
Staw, M.W.
Maxwell
Nascar
Natl Family Opinion
Referenced Document
Robinson-Pactman Act of 1963 (630000), 630613. Cigarette Merchandising Manual. Merchandisers and Component Parts Catalog. Merchandisers and Component Parts Assembly Instructions Manual. Pss Instruction Manual. Ims Trainer's Manual. Facts You Should Know B
Date Loaded
27 Feb 1998
Author
Rjr
Box
Rjr2220
Characteristic
Marginalia
Brand
Camel
Camel 85
Camel Box 80
Camel Lights 100
Camel Lights 85
Camel Non Filter 70
Now
Salem Lights Menthol 85
Salem Ultra Lights Menthol 85
Vantage
Winston
Winston 100
Winston 85
Winston Box 80
Winston Lights 100
Winston Lights 85
Winston Ultra Lights 100
Winston Ultra Lights 85
Barclay
Bright 85
Bright 100
Camel Lights Box 80
Doral
Doral II 85
Doral II Menthol 85
More
More 120
More Lights Menthol Box 100
More Menthol 120
Now 100
Now Menthol 100
Now Menthol 85
Salem
Salem Lights Menthol 100
Salem Menthol 100
Salem Menthol 85
Salem Slim Lights Menthol Box 100
Salem Ultra Lights Menthol 100
Vantage 100
Vantage Menthol 85
Vantage Ultra Lights 100
Vantage Ultra Lights 85
Vantage Ultra Lights Menthol 100
Vantage Ultra Lights Menthol 85
Belair
Benson & Hedges
Bright
Cambridge
Carlton
Century
Century 85
Century Lights 85
Century 100
Century Lights 100
Chesterfield
Doral 85
Doral Menthol 100
Eve
Kent
Kool
L&M
Lark
Lucky Strike
Marlboro
Merit
Newport
Now 85
Now Box 80
Now Box 100
Old Gold
Pall Mall
Parliament
Philip Morris
Players
Raleigh
Richland
Saratoga
Satin
Silva Thins
Sterling
Sterling 85
Sterling Menthol 85
Tareyton
Triumph
True
Vantage 85
Viceroy
Virginia Slims
Winchester Little Cigars
B&W Brands
Lorillard Brands
Generic Brands
Alpine
American Brands
Winchester
More Lights Box 100
Multi Filter
UCSF Legacy ID
nhm55d00

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SALES TRAINING ENTRY PROGRAM Co:nmodity No. 084566 Revised 6/85
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NEk SALES REPRESEr:TATIVE TRAINIt,G The Sales Training Entry Program has beer. developed to set the best possible foundation for a new Sales Representative's future develop- ment. The prograff.will contribute significantly to the Company's ultimate goal -- to sell more RJR cigarettes and tobacco products. Selling techniques and working habits formed during the first year of a Sales Representative's career remain throughout the Representative's selling life. It is Division Management's responsibility to train new Sales Representatives to become fully productive. The importance of this function cannot be over-emphasized. The training process, therefore, is one of the most vital accountabilities for Field Sales Management. The Trainer should keep in mind that the training process is not just a matter of teaching. There is a great difference between teaching and demonstrating. By teaching, you impart your knowledce to the Sales Representative, by demonstrating you show the techniques of how to sell. A combir.ation of teaching and demonstrating is essential for well-rounded training. It is very important that only one Manager take the Sales Representative through the first eleven-week period. Afterward, the Division Management team should continue the training process. CROSSTRAI?:I\G AND RETRAINING - The STEP materials can be used in two additional training situ- ations: (1) When Representatives have been newly assigned to vending, military, or direct accounts; (2) When Representative performance warrants a review or retraining in a specific area. kfien evaluations or Work Withs indicate a problem or problems in specific accountabilities, Division Management should institute appropriate retraining immediately. Retraining may consist of coaching and correction in the field, or the Trainer may wish to bring the Representative to the Division Officer for a refresher session using the appropriate modules and print materials. Copyright, R. J. Reynolds Tobacco Company, 1964. AAll Rights Re- served.
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THE PROGRAM t Classroom Training Classroom training consists of a combination of audiovisual training modules, assigned reading, and workbook exercises. This fo=at provides the RJR Sales Representative a structured introduction to the knowledge and procedures which he or she eventually will be required to understand. Except for the first and last module, each filmstrip has built-in program stops chat break each presentation into easily assimilaced sections. The Representative is referred to specific portions of the STE? Binder to examine in detail, or for reinforcement, issues coveraci briefly in the filmstrip. The Sales Representative is given reinforcement testing at each program stop. These tests should be self-scored, allowing the individual to gauge his or her own comprehension. Examinations There are also two Examinations to be used as a guide for Division '!anage-ent. One comes at the beginning of Week 4 and'che other is given at the end of the training period. These Examinations contain recall and comprehension items, is well as items designed to test the Representative's ability to apply new knowledge and skil:s. The Sales Representative should be advised at the start of the eleven-week period, that these Exams will be given. Division Management should not assign specific home study prior to the Exa=s. Instead, the Sales Representatives should be told that the Exam w___ cover everything that they have learned up to the testing point. The Examinations have a dual purpose: (1) To measure the retention, understanding, and application of objective data and (2) To help Division Management and the new Sales Representative identify areas which need further development. To further these objectives, the test items have been grouped by subject area (i.e., ACCOCNTABILITIES). This forn.at permitF Divisicn Management to easily identify any area in which the Sales Represen- tacive needs further development. For example, if one-half of the responses to ACCOUNTABILITIES are incorrect, Division Management knows that further development may be needed with the Sa:es Repre- sentative in this area. I un TG-2 ~
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One or two incorrect answers do not usual2}• indicate a pro~le-. l:owever, a great mar.y mistakes indicates additior.a: deve:opme-;t is necessary for the Representative to acc,uire a sufficient mastery of the basic information. The Trainer should review both Exat:inations with the Representat_•:e. This interaction and the early detectic:, cf mistakes in applicat_on or ur.derstandir.g will be of profound benefit to the learner. ?he true value of testing is the measure of compreher.sicr, and ski:l development noted within an individual area cf study. IhSTRL'CTIONS TO THE TRAINER are attached to each test packet, gi•::ng directions for administering the Exam to the Sales Represer.ta::.ve. All Exams should be maintained in the Division Office as a part of the Sales Representative's permanent record. Modules and Print Materials Each Sales Representative proceeds through the series at his or her ow:n speed. Since each filmstrip is a self-contained package, the Representative will be able to exar.ine and review each section at a schedule suited to his or her availability. This allows the Repre- sentat:ve who wishes to cover a particular section in detai] to do se until he or she feels comfortable and proficient in the under- standing and use of the information presented. Though the STEP program concentrates orn standard knowledge and uniform procedures, certain information and corresponding procedures may be different in some areas. The Sales Representative shou:d be advised of these specific differences where applicable. The eleven modules of the audio-visual program are outlined along with Directions and Notes to assist the Trainer in obtaining maximur, benefit from the prograz. Prograr,m stops in each presentation are indicated. These breaks indicate the placement of review exercises, except f or RJR AND THE INDL'STR], SMOKING AND HEALTE and PURSUIT OF EXCELLENCE Modules, which have no exercises. There are other important elements of each prograr including ques- tion and answer sessions, and assigned reading/study (includes reading and study in the STEP Binder and in other resource manuals) No homework shonld be formally assigned during the STEP Progran. The assigned reading and study should be given on the designated days during the progra^. Except for Weeks I and 8, which have two prograr; ed classroorrm days, there will be no more than one full classroom day per week throughout the training program. r
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Time needed to complete the work is shown in the Trainer's Guide and scheduled during the normal work day. During the eleven-Meex program, a Sales Representative may request the projector and modules for use on his or her Swn time. This is acceptable; hoL- ever. at no time should management suggest or imply that home study is expected. Timin The base training period is one year. During the first eleven weeks, the Sales Representative will become proficient in the basic skills and knowledge needed to become a productive member of the division team. The initial twelve days are structured day by day. In the third week, the program becomes more flexible, allowing the Sales Representative to progress at his or her own pace. Frcm time to time, high priority matters develop which demand Tar.- ageTent's immediate attention, or a holiday will fall dur_ng t:e early part of the program. 67hen this occurs, and the training process is interrupted, it should be resumed at the point of inter- ruption and continued as outlined until the first twelve days are covered. The flexibility of the third week should alloa vou to catch up. ~ ~ Each new Representative will rrogress at a different rate. '•hen mastery_,of a given area of study is achieved, toe Represeatative and the Trainer indicate sign-off by jointly initia:ing the «eexl;• Sign-Off Sheets printed on the reverse side of the weekly Sched- ules. This signifies that both Trainer and Representative agree that sign-off criteria for that section have been inet. At the end of the eleven-week period of study, a Comprehensive Sign-Off Sheet is initialed, indicating satisfactory completion of the STEP pro- gram. gram. If at any point, sign-off is not achieved, the Trainer may lengthen the study period beyond eleven weeks. However, the eleven-week schedule should be adhered to, if possible. As soon as possible, preferably in the twelfth week, Division wanagement not involved in the standard eleven-week training program should work with the new Sales Representative to help identify specific areas for further development. An action plan should then be developed including Object:ves, '-;ork Withs, T/A's, etc. as needed to continue the development process. During the remainder of the 12-month base period, special training emphasis should be g:ven in any areas needing further development. TG-r
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C~isres.tzon of `la:eria;s '••he.^n the e'_e•:ec-weer• pregram is conc:udec, tne Tra.ner is resr_-.s- ibie for making sure that all materials used for training a:e returned to the Division Office. The `.:orkbocK Exercises can be retained by the Representative :s .: resource for review and study. The Trainer's Guide contains m.:- eriais a•hich wiil be used throughout the training period, so a new Trainer's Guide packet should be ordered for each new Saies Representative tra:neo. All other materials ccill be maintainec' ..% the Division Office for re-use. TG-5
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Oy-THE-JOB TRA:N:::G Because effective sales techniques are best taught by example and coaching, the on-the-job portion of the STEP program is of critical importance. There are three primary advantages to OJT: (1) You, the Trainer, can demonstrate proper technique and behavior :n real-world situations rather than in simulation; (2) The Trainee perfurms actual work, under your guidance, which allows him or her to -,ake an orderly transition from classroom to iob; and (3) You and the Trainee can critique job perfornance immediately after it occurs se that bad habits and/or any misunderstanding can be corrected before non-productive patterns emerge. 0JT requires Trainer attention to all details of the job; therefcre, preparation and planning should be done prior to each session. And, most importantly, thorough review of each call should be routine. RJR now provides a unique new tool for the STEP Trainer to facili- tate 0JT sessions: The four-part set of Tracking Exercises for Systematic Selling and a t:acking exercise for PSS. irackir.g Exercises - SysteWatic Selling :he Tracking Exercises are a cor.trol and check on imp:erentation of the Six Steps of Systematic Selling. There are four exercises of progressive complexity which should be perfor-,ed by either the Trair.er or Trainee depending upon who is making the call. Instruc- tions are specified on the Weekly Planning Sheets. As the name indicates, these exercises are all you or the Sales Representative need to "track" one another during calls. You will find copies of the four exercises at the back of this binder in the quar.tities you will need to perform them according to the Plar.nir.g Shee:s, i.e., one copy of Exercise #1, two copies of Exercise 42, six copies of Exercise #3, and three copies of Exercise #4. On the left side of the page are the steps to be tracked. On the right are 12 boxes, representing calls on accounts. The observer places a check mark in the appropriate box when he or she sees that the step was accomplished correctly. Exercise #1 determines recog- nition of each step. Exercise #2 through 04 contain progressively more detail concerning what must be done during each step. F.xercise n4 also contains important reminders about contract preparation. By performing these exercises with the Sales Representative, and coaching him or her after the call, you reinforce good call techni- ques and help him or her become fully aware of the procedures to follow within each of the six steps.
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Tracking Dcercises - PSS The tracking exercises are a control and check on the correct use of PSS skills. It is not expected that you will be able to track evei;, tire a skill is used throughout a call. However, these tracking exercises can be helpful in identifying areas of eorpetency as well as areas needing further developrient. For exarT)le, the Sales Representative could be making very good use of probing skills; howvver, he ma}• not be supporting by introducing appropriate benefits. The PSS tracking exercise is divided into Customer Response and Sales Representative Skill use. Jin alphabetical or numerical system should be used to record the customer remarks/responses and the S R's skill use. For exarrple: 1 could be used for the opening by the Sales Representative. If the customer reacts with indifference, you could note 2 next to Indifference under Customer Response. The Sales Representative's use of skills to respond to the customer's indifference would also be 2. The next custamer response would be 3, etc. It may be helpful to write da.•n key words on the forrr. to assist you in reviewing the skill use with the Sales Representative. By coaching the Sales Representative after the call, you can reinforce good use of PSS skills. Tracking exercises-PSS are to be used during calls made in week 8 after the conpletion of PSS training, and during the INLS presen- tation on Tuesday, week 9. The trainer may, at his/her discretion, determine if continued use of the tracking exercises-PSS is necessary after this point. Sales Information System If your Division is on the S I S System, you will note the references to the Hand-Held Corrputer throughout this program. In rrbst cases, you will need to refer to the Hand-Held Manual for answers to any questions.
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This Trainer's Guide provides the planning tools with which you control and monitor the Representative's progress. Take advantage of it by preparing yourself thoroughly for each classroom session and each call. By using your training resources wisely, you can reinforce positive work habits as well as ensure that the Repre- sentative obtains the best possible results from his or her re- taining experience. Although the prograr is designed in part for individual use by the trainee, there can be no substitute for your presence and involvement throughout the eleven weeks of basic study. The following steps comprise recommended training procedures: 1. On the first day, SET THE TONE FOR FUTURE INTERACTION with the Representative. Stress your accessibility and desire to help him or her succeed. Set the "rules of the game": frankness, honesty, openness, hard work, and goal-oriented activity. Discuss your goals and expectations and those of the Repre- sentative. 2. ARRANGE A SUITABLE CLASSROOM SETTING: quiet, traffic-free; all training materials set up and ready-for-use. Have additional paper and pencils on hand. 3. When possible, BEGIN EACH DAY WITH AN OVERVIEW of the day's agenda. CLOSE EACH DAY WITH A REVIEW AND QUESTION/ANSWER SESSION. Clarify all misinterpretations as they occur. 4. ALLOW THE TRAINEE TO VIEW THE MODULES AND PERFORM THE EXER- CISES ALONE, but be available to answer questions and make training points at each program stop when necessary. 5. Make every effort to CONTACT RETAIL CALLS as outlined in the Guide. ON-THE-TRADE ACTIVITIES SHOULD RELATE TO THF. CLASSROOM MATERIAL just covered. The Trainer must address only those areas to which the trainee has already been exposed (e.g. do not become involved in correcting merchandising problems before the Sales ` = Representative has gone through the merchandising segr..ent of STEP.) The Tracking Exercises and Objectives listed on the Sign-Off Sheet for each week reflect a progressive learning sequence and you must provide on-the-job training which incorporates the points to be learned for that week as well as those from previous weeks. 6. During the first three weeks of on-the-job training, you should CONCENTRATE ON THE SIX STEPS OF SYSTE*SATIC SELLING and nct dwell on merchandising, contracts, or compliance problems. These will be covered in detail in Weeks 4 and 5. If you uncover a merchandising problem or opportunity, explain briefly that the situation will be covered in detail in Week 4 (carton merchandising) or Week 5 (package merchandising). Then make a note on the Master Store List and reschedule those calls for the appropriate week. 0 TG-8
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TO THE TRAINER As the trainer of a new Sales Repre;entative, +ou are the most essential element in making STEP a results-oriented experience. The STEP materials impart needed knowledge systematically. Know- ledge alone, however, is ineffective until you, the trainer, de- monstrate how to apply this knowledge in simulated and real selling environments. By properly teaching through demonstration, you set the standards of performance for the new Sales Representative. The following pages break down the STEP program by the activities expected of each new Sales Representative f or each day. Approximate time periods for each activity are given on the far left hand side of the page. These are estimates only. The nature of the calls and the needs of the Representative should dictate time allocation. Trainer Directions and Notes are on the right. There are hints and suggestions for program enrichment, and these should be supplemented by your own notes reflecting division variances and special needs. Flexibility is built into the program after the second week, when Work With days and Sales Representative Work Alone days can be interchanged. Included is a STEP Planr.ing Sheet to be used as a suggested guide for the Trainer when giving the week-by week Over- view to the Sales Representative. Also, a general overview of the total program is provided for the Sales Representative (the first page of the Workbook Exercises.) Sign-Off Sheets Each week's activity listing is preceded by a cover page which serves as both an individual Weekly Schedule with new material highlighted and, on the reverse side, as a Weekly Sign-Off Sheet on which specific content and OJT criteria are listed for sign-off by Representative and Trainer. Allow the Representative to perform the sign-off first. Then go over each objective with him or her, adding your own initials or giving specifics concerning why you do not feel sign-off has been achieved. When initialed by both, this sheet represents your approval of the Representative's performance in those areas to date. The Weekly Sheets should be reviewed by Division Management and placed in the Representative's personnel file. The Comprehensive Sign-Off Sheet is to be initialed at the end of training to indicate achievement of all objectives set for the eleven weeks. The Comprehensive Sign-Oft Sheet is then sent to Regional Managenent, with a copy to the sa]es area Sales Training and Developnent Manager, indicating: (1) successful completion of STEP; or (2) the Trainer's plan for further development, high- lighting specific areas. t
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7. All S7TV rraterials and Trainea-'s Guide miterials refer to the u~.(,- of the Corj)umark reporting system. For those Divisions or, thE Sales Information System/Hand-HEId Corrputer, it will be necessar., to substitute the Hand-Held computer training rbterial:~. You should position thiE to the Sales Representative. Instruct him/her to disregard all references to Carpur,ark and tc consult you on any questions/misulder- standings that result. from references to Canpur,ark, Forrr 5000, Fonn 1145, Forr, 899. This will require that you bbe far.ti] i~,.i• with the contents of the STEP bindei-. 8. As calls are riade during Weeks 1 tlu-ouQh 5, check the JdastEr Store List for acclsac.y. If errors are found, make the apprc>priate changes on the lSaster List, but DO NOT FILI. OLT Form 7101. Hold all changes until wEC:Y. 6, when Form 7101 along with other reports will be covered in detail. 9. ROUI'ING FOR :Z1E FIRST 5 h=S SHOLTIh RE DONE BY THE TRAIh'F'R according to STEP guidelines. The trainer s.h,ould be careful to select calls which will best allow the Salcs Representative to ohserve and use the skills and information covered in STEP. The trainer should keep in mind that STEP is a progressive learning program that a11o%,?s• the Sales Representative to build on inforrrpt.ion learned in a segmer.tt by segment manner. It is important that the trainer route the calls to avoid confusion on the part of the Sales Representativt especially on those days when the Sales Representative works alone. Proper routing procedures will be covered ir, detail in Week 6, and the new Representative will plan routing thereafter. 10. FSS III is progranmed for week 8 of the ., training. You have the option to delay PSS training; haaever, PSS III riust be ad-inistered to the Sales Representative prior to the 6 month progression increase. Exam # 2, question 30, pertains to PSS. Do not delay Escam # 2 if PSS training is delayed. Advise Sales Representative to skip question 30 and note "PSS III to be covered at a later date" on the exam. PSS III can be adr-,inistered to one participant or group sessions. Check with your Manager for Sales Area/Regional guidelines. 11. CHII=G1: YOC.'F: TRAINEF:. As the basics are mastered, take t.he next step quickly so that the Representative is aware of his or her progress and can build upon facts and skills already learned. 12. PREPAFE. Knav in advance what activities are prograrmed each week so that you will be properly equipped to teach and danonstrate. TCr9
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WEEKLY PLANNING (OVERVIEW) - WEEKS 1-6* WK MONDAY TUESDAY 11 J WFDNFSDAY THURSDAY FRIDAY I o (:ompir.e employnicnt o Call Procedures o Pick tip car stock o OJT 8 hours o O.1T 6 hours papers Module Trainer makes all calls o Solvency check o R.IP AND THE INDUSTRY o Explanation of o Reporting System modulc tracking exercises Training 0 J T o Review to t:.IR AND TNP MARKETING o Load vehicle with o0JT6hrs. PROCESS Module adv. & displays Trainer makes all o topcrating Guidelines o Reporting System calls module training o Solvency Check o Assigned reading - Brand Profile Charts 2 o Review o O.iT 8 hours Trainer makes u ACCOUNTAB1LlT1ES Ist call Module o Review Brand o Solvency Check Categories 3 o Review Chain Accounts o OJT 8 hours Call Procedure o UJT.Key and A Calls 4 o SR Takes Exam I o OJT 8 hours u CIGARETTE MERCHAN- DISING I Module o Review Exam 1 *sS L zsfias o Review o CIGARETTE MERCHAN- DISING Il Module o REVIEW CICARFTTE ML•'RCHANDISINC I and 11 RoutinK, planning, coverage, Work Plan priorities, reports. o OJT 8 hours o 0 JT E hours P *Not , See weekly planning sheets for more details. 1 o Assigned reading - Brand Profile Charts o SR works alone o T A by Trainer o OJT 8 hours and SR o Solvency check o OJT 8 hours o SR works alone o SR works alone o Inform SR of exam o SR works alone o OJT 8 hours o SR works alone o Solvency Check o SR works alone o SR works alone o Trainer T/A alone of Wed. and Thur. work. o Review T/A with SR o SR works alone o SR works alone o OJT 8 hours
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1dFF.Y.1.Y PI.ANNIN(' (OVERVIEW) - WEEKS 7-11* WK MONDAY TUF•SD/~Y WFnNF;I)AY 7 HVIR::Ur11' ~ I I11A1' o SMOKiNG AKP }IEALTH o U!T R hours o SR works alone e SR wr,rk~; Modu Ie o DIRECT ACCOUNTS Modu 1 e o nJT - P.emainder o Trniner to do T/A a1(o»e today or Fr ;c!:iy 8 o PSS Program o PSS Program o OJT 8 hours o SP works 9 o IMS Training o IMS Presentation e(`,iT 8 hours o SR works alrrc to retai]l account o Gather information and prepare IMS o OJT - Remainder presentation of day 10 o VENDING Module o SR works alone o SR works alone o Sh works a=one (W/W optiona.'.1 o Inform SR of Exam 2 11 o SR takes Exam 2 o SR works alone o SR works alone o SR works alone o Pursuit of Excellence Module c: Military/Special Rarkets, if applicable *Nrtv: See weekly planning sheets for'more details. S9S l ZOOS T(:-1 I c Sk wrrks .il-nr c Gpt i un:i1 T/A with S't or 0.iT o Solvvnrv ('heck r;:R works rilone v Tra:ner condtic A/A wi tl, SR c Trainer T;A wi ;;k on Thursilati• o 5ol-rncy Chec•1, u Review P~:nm 11 o SoIvcr.rv Check n 1' i• v i ew 1•:x a m I
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TRAINER'S CHECKLiST Before beginning the eleven-week training period, check the fo::cc:i,g: Preparation 1. Have you made all necessary arrangemer.ts to meet the SR on day one? 2. Have you scheduled a quiet training area for all c:assrcc:~ da•: s? 3. Have you reviewed the following t4orot:gh.y? o Trainer's Guide introductory pages o Plar.r.ing Overview (11-Week) o Comprehensive Sign-Off Sheets (11 Weeks) o Planning Sheet Week #1 o Siv-Off Sheet Week +f1 s. Have you considered proper routing for the first.ca::s' 5. Has a:l necessary ?aperwork.bee:: cempleted? `!ater= als b. Are the rcllow:*g on-hand, ccr..plete and i n gccd order? c A/V cartr:dges o Trainir.g binder (reading c.ater:a:s) o Print materials binder - Workbook exerciscs - Exams - Trainer's Guide o EikiVision Cnit 0 :" J - 12
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I I:=,Y PININIWG SITDT - _ WrM, 1 hqNDAY (classrmr.i) '!'UESLI+Y (classrocr+) U11?hTF.SDAY T[ RRtSpAY I'P I f;/1Y o Conplete errployment o CN d . PROCF7)tRhS o Pick up car stock o Cr^f 8 hour:;. e (1r?' 6 hc-ur !-z and car aarecmnt Module o UTi 6 hours. Tr.,itof.•r nukcF, C~ ., . Parx'r'7 Trainer rtiikes all ca ll~ ca11s. o PJR 11ND T! T iNDCT-171'RY o PNplanation of o SP trc.cks all o SIR t.tacrs all c~ flner altcr- t'bdule Tracki»a bxercises calls (T.E. #1) calls: (T.F.. #2) nE++c•~- call!: wit~: tr•irr.• o IZ1R AND TFT t17Vt[=ING o Ixid vehicl e with o Idnphas.ize B, C, o L•7:phasi zc P., C, hROCESS tkxlule PIN, & Supplies indeperdent calls. inc;epenx'c-nt cal l ~ . 0 7'.i'. #2 I,:t^it contract Litiit c ntr t o Assiqned Reading/Study o F.r.Flanation & Rev.irw . callF- o ac ecills o Pick ul• Ftcx-~, - Brand Profile Charts of Rerorting Systrn rrnrm<~n j . ;:c• •,•eh ic l c• c Assignec' Peading/ o Solvencv chn-k c OPERATI>tG GT?DELINL'S Study 0 Scr': "nncv r-hcc-; : Module - Brand Pro_`ile Chart s c Fr`• ~~ wr Mn_r_ k' : worl; c Sf< anci Ti~~i:u r lctC' ;-)C;i;-( * i ~hcrt fc~ l,~ r I: ti 1 7C-13 f f~ C9S t
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WEEKLY SICN-OFF SHEET - WEEK I i by placing their initials in the appropriate 9Qlumns, both the Sales Representative and the Trainer acknowledge that this week's vh.;ectives have been achieved. If sign-off cannot be given for one or more objectives, the Trainer and SR will develop a plan to be incorporated into next week's ectivities. At the completion of this week's training, the SR: 1. Demonstrates satisfactory knowledge of: A. The history and philosophy of RJR Tobacco Company B. Competitors of RJR C. The corporate structure of RJR Industries 2. Understands and can define the RJR Marketing Process and its goal 3. Understands and can explain the chief characteristics of the cigarette market. 4. Understands and can explain cigarette flavoring and brand categories 5. Understands and can explain the elements of "Marketing Mix." 6. Can state in his/her own words the mean- ing of the Robinson-Patman Act. 7. Understands the impact of taxation on the tobacco industry. SR TR SR TR 8. Understands the bcsic RJR policies and procedures affecting his/her job. 9. Can load his/her vehicle with call tools and car stock. 10. Can calculate solvency 11. Understands the Six Steps of Systematic Selling and can perform Tracking Exercises #1 and #2 for B & C calls 12. Can report activities for B & C Calls 13. Can define and describe billing procedures 14. Can define the purpose and use of: A. #899 B. Order Book C. Master Store List D. Retail Order Receipt TG- 14 r 69S 1 Z8~'~~
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l ]EFIC 1 - MC)Iv'I]AY i TU'fE SR. ACTIVITY TRAINER' S DIRDCTIONS/NOTES 1/2 Hr• o Trainer assists Sales Representative in corrpleting enployment papers, if not previously conpleted and sent to Winston-Salem. 1. Trainer gives Sales Representative an overview of the STEP Program. The following points should be covered: o DEVEIAPMETT : By RYR Sales Training Department o TIME FRAME: One year base = for new Representatives; First eleven weeks are standardized and structured. o FEATURES: F~]rnstrip learning modules, training binder, workbook and simulation exercises, on-the-job training, coaching sessions, and examinations. ~ o BIINEFITS: Develop Sales Representatives to their fullest potential. c o Trainer gives Sales Repre- sentative overview of the week's activities and Sign-off objectives (frar, Planning Sheet). o Question and Answer Session. 1 1/ 2 Hr s. View RJR ANID THE TCBACCO o Prior to showing the module, Ir1DUSTRY bbdule. explain the Program A. Introduction o Corporate Support Qbjective: To provide general information on the Tobacco Industry, RJR ~ 0 o Role of Sales Representative Tobacco Co:rQany, and RJR Industries. ~ N c TG-1 5
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WEQC 1 - NX7NDAY TIME SR. ACTIVITY TRAIt~2 S DIRECTIOt.;S/NO:'ES NOTE TO TRAINER: Inform S R to disregard Sealand & Aminoil on audio -visual tape. B. Tobacco Industry o History/Overview - Value and importance in American History - Tobacco as a way of life - Where grown - Present value o World Production - How much produced - Where produced o Varieties of Tobacco - Types - Where grown in U.S. - Curing - Auctions - Consurrption o Distribution - Manufacturers - Wholesalers and Retailers C. History of RJR o Founding/Expansion - Ongoing success - Innovation in the Industry History/Overview R.J. Reynolds International History/Overview R.J. Development Corporation o Corporate support as a motiva- tional factor in its rrany forr~s should be errphasized throughout the initial training weeks, as should the pivotal field role of the Sales Representative. o Aspects of industry history and growth are inportant background kncwledge and can be integrated with later discussion otf the current stroking controversy. o Reasons for expansion into other i.^.dustries can be discussed. R.J. Reynolds Tobacco Corpany o Annual Report handed out. D. RJR Industries o Present Organization - Subsidiaries History/Overview Kentucky Fried Chicken History/Overti,iew Del Monte/Heublein Cor- poration History/Overview o Officers o Career Opportunities o At the end of the -.udiovisual program the Sales Representative will be directed to read a cor- responding section in the S= Binder. After the assigr.ed fror. reading, take questions the SR. o Corrplete the Career Oppor- Chart for your sales Area and aive it to the SR so that he/she can becor.e familiar with area manager.x-nt per- ( sor.nel . a ~ r TG-16 ~ ~ 0
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WEEK I - MONDAY TIME SR. ACTIVITY 3 Hrs. View RJR AND THF MAR}:ETIrG PROCESS Module. RJR and the Marketing Process A. Marketing Overview o Marketing - Definition - Goals of the Marketing Process o Objectives o Market Aspects o Brands o Advertising o Special Events TRAINER'S DIRECTIONS/NOTFS o Prior to showing the module, explain the Prograr. Objective: To provide information on the Marketing Process, and to make the Sales Representative aware of the functions of the Sales Department. o Stress that the goals and objectives of the Marketing Process are implemented through each Sales Representative. (PROGRAM STOP) B. Cigarette Categories o Category Divisions - Flavoring - Mentholation - Size - Packaging - Filtering o Describe current trends. (PROGRAM STOP) C. Consumer o Market Trends o RJR Response o Describe current trends and RJR responses. (PROGRAM STOP) D. Market Mix o Elements - Product - Packaging - Pricing - Availability - Advertising - Promotion o Emphasize the practical bene- fits of this knowledge to the Sales Representative's account coverage. (PROGRAM STOP) TG-17
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WEEK 1 - MONDAY TIME SR. ACTIVITY TRAINER'S DIRECTIONS/NOTES E. Promotion o Be certain Sales Representative o Definition understands the difference o Department Responsible between promotions and o Promotional Categories advertising. o Types of Promotions (PROGRAM STOP) F. Flow of Goods o Stress difference in flow of o Traffic Department goods to direct and retail Function accounts. o Warehouse o Direct Account o Retail Account - Retail Outlets - - Vending Machines o Flow of Goods to Consumer (PROGRAIi END) 1}ir. o Sales Representative reads o Brief Question & Answer Operating Guidelines/ Session. Standards in STEP Binder
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r= 1 - rfONDAY SR. ACTIVITY 2 Hrs. View OPEPATING GUIDELINES Module. TRAINIMIs DIRncrlaa/N=s o Prior to showing the module, explain the Program Objective: To make a Sales Representative aware of the operating guide- lines and procedures involving Federal and State Laws, as well as RJR Carpany policies and procedures. A. Legal/Social Aspects o Robinson/Patman Act o Taxes o Ru=r Polic~y o News Media Policy o Advertising Policy o School Call Policy B. Policy and Procedures o Recruiting Bonus o Carpany Vehicle o Performance Evaluation - Accountabilities - Developgrrent Plan o Stress the meaning of Rnbinson/Patman Act. o Explain state and local taxes. o Explain school call po].icy within division. o Supply specific information on - Bonus check - Performance Evaluation o Discuss "Facts You Should Know." o Discuss "Winning Canbination" o Discuss maintenanee of Driver's Manual (PRDGRAM SZbP) C. Call Zbols o Prarrotional Materials o Call Bag Contents o Travel File - Use - Location - Contents o Ccupany Vehicle - Organization of Contents - Organization of Products o Provide Call Bag for Sales Representative o Explain that R.7R has suggested locations in vehicle for travel file, pranotional materials and products. Mention "Guide- lines for Organization." (P%)GRAM STOP) D. Car Stock o Purpose o Product Mix o Determining Inventory ( P%)GRAA1 STOP ) TG-]9 o Explain product mix for Sales Representative assignrrents.
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LN'EEX 1 - MDNDAY TIME SR. AG'I'IVITY TRAINER'S DIRECTIQJS/NCrlES E. Field Sales Operating Fund o Review car stock build-to o Definition figure for Sales Representa- o Flow of Funds tive's assignment. o Paying for Car Stock o Calculate Solvency o Solvency Check should be done after car stock is purchased to demonstrate to trainee that he/she has ceaplete value of Contingency Fund. o Inform Sales Representative o Weekly Expense and that solvency check will Payroll P.eport occur frcm time-to-time. - Corrpletion - - Delivery o Emphasize seriousness of solvency. (PROGRAM FSID)
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WEEK I - TUESLIAY TIME SR. ACTIVITY TRhIt'~2' S DIRF~iI02.S/NCYII;S 11 hr . Review Monday's work with Prior to discussinn agenda, re•:ie•w Trainer Monday's activities and answer a-: •,• _ questions. E~cplain today's agenda - View Call Procedures medule - Load vehicle with adv. & displays - Learn Reporting Systen - Ecplain tracking exercises 2~ Hrs. View CALL PR=LTRES Module. o Prior to showing the madule, A. B. Introduction Systenatic Selling o Get tc the Product o Rotate and Merchandise Product o Determine Distribution and Inventory Needs o Organize and Sell o Display and Advertise o Conplete Appropriate Reports and Forms explain Program Objective: To provide the SR with the lmowledge and skills necoed to properly make a retail call. (PFCGRAM STOP) o Benefits and Results C. Types of Retail Accounts o Independents o Chain Stores 0 (PFmGRAM STOP)
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WEIIC 1 - TUESDAY TIME SR. ACTIVITY D. Precall o Planning Schedule o Master Store List o Work Plan TRATNER' S DIRECTIONS/NO'!'ES o Point out that although account knowledge is extremely inportant it should not be used to "pre- judge" an account. E. Get to the Product o Introductions F. Rotate and Merchandise o Discuss code date rotation. Product o Rotation System o Deronstrate proper use of- o Code Date Rotation Product Shelf-Life calculator. - Cartons - Product Shelf-Life Calculator (PROGRAM STOP) G. Determine Distribution and Inventory Needs o Housekeeping o Restocking o Low Stock o Inventory o Out-of-stock and Voids (not stocked) (PFtOGRAM STOP) H. Organize and Sell o Explain that PSS training will o Presentation Exarrple occur in Week #8. (PROGRAM STOP) I. Billing and Order o Review Workbook Exercises. Procedures Stress accuracy in filling o Cash forms. o Exchange o Bill through/Delivered Order o Prebooking o Order Bookin t^ g 0 f (PROGRAM STriP) N I .. ~ TOr2 2 m
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VM I - TUESDAY TIME SR. ACTIVITY TRASNEt'S DIRDCTIONS/N=S I J. Display and Advertise 0 POS - TerTporary/Permanent (PROGRAM S'IC)P) K. Cotrplete Appropriate Reports and Forms o Crnplanark # 5 0 0 0 (PROGfiAM IIJD) 2 hrs. o Load ccrpany vehicle with POS and supplies. 3 hrs. Review and discuss Reporting System o Form 5000 o Weekly Activity Report o Hand-Held Cartputer Manual o Explain Tracking Exercise # 1 for Wednesday's Q7T. o Review Corrpumark Form 5000. o Review Master Store List. o Review P06 in PDI Manual. o Review Brand Profile Chart. o Explain in a positive manner the functions of a W/W, T/A and A/A and mention that all will be conducted periodically. o Assist SR in loading vehicle. - P06 Materials - Display Materials - Forms o Explain RJR policy regarding returnable property. ~ o At this point, depending on which Reporting System you are on, you should take the remainder of the day to explain and demonstrate either reporting method. 0 0
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WEEK 1 - WfIXIf',SDAY TIME SR. ACI'IVITY TRAIrI£R' S DIRDCTIONS/NCrI'ES 2 hrs. o Pick up car stock o Meet S R at first call (jobber) by 8:00 a.m. (You should meet S R at 8:00 a.m. at first call each W/W.) o Calculate solvency o Solvency check should be carpleted and the seriousness of it reinforced with S R. 6 hrs. SR W/W Trainer o Prepare S R for first day of OJT. - Review Reporting System (probe for understanding of overall purpose, benefits, need for accuracy in reporting, and correct corrpletion of reports. - Explain call routing for the day (B, C, independent calls; limit contract calls.) - Review forms needed for the day (Master Store List), Order Book, Expense and 1 Payroll Report.) - Review Tracking Exercise # 1 I ~ ~ TC'r24 ~
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WEEK I - THURSDAY TIr;E SR ACTIVITY TRAIKER' S DI F;ECT I ONS /`:0T ES 8 Hrs. o Trainer will make all calls. o SR will perform Tracking Exercise #2 on all calls. o Trainer and SR will review the Exercise immediately after each call. 1. Get to the Product o Greet the Store Manager o Make Request to Check Product o Record: Manager's Name; Order Clerk; Order Dates and Delivery Date on M.S.L. (Master Store List) 2. Rotate and Merchandise Product o Rotate Stock o Remove Outdated Product o Check RJR Labeling on Carton Merchandiser o Face Up Product on Carton Merchandiser o Check RJR Labeling on Package Merchandisers o Load Package Merchandisers o Clean/Load Permanent Package Displays 3. Determine Distribution and Inventory Needs o Determine Inventory by Brand o Note Low Inventory Levels o Note OOS/Voids TC-25 o Explain the day's agend~. - All day OJT (B, C, indeperdent calls; lir..it contract calls; sar.c as Wednesday) - Review car stock - Review Tracking Exercise #2 o Discuss appropriate Division Guidelines during Prccall Planning. r ~ V ~
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wiEK I - FRIDAY TI~tE SR ACTIVITY TRAINER'S UIP,ECTIOtiSitiOTES 8 Hrs. SR W/W Tr3iner o Explain the day's agenda: - Six hours cf OJT - Trainer and SR will alternate calls and Tracking Exe:cise ;/2 . - Review T racking Exercise =-2 . - SR picks up car stock and organizes call materials - Trainer performs solvency check - Trainer and SR complete the week's administrative work - Review of first week's activities. - Complete Sign-Off Sheet - . I TG-26
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i WEEKLY PLANNING SHEET - WEEK 2 MONDAY (classroom) o Review OPERATING GUIDELINES & CALL PROCEDURES Modules o ACCOUNTABILITIFS Module o Review Reporting System - Master Store List o Review Cigarette Brand Categories o SR picks up supplies TUESDAY o OJT 8 hours o Trainer makes first call W1?DNF.SDAY o SR works alone o Rout ing done by Trainer o Remaining calls made by SR according to his/her progress o T.E. !13 o A, B, C, Calls o Limit contract calls o Solvency Check Note: NEW MATERIALS OR ACTIVITIES ARE UNDERLINED . R TG-27 '1d THURSDAY o T/A by Trainer with SR FRIDAY o W/W by Traincr o T.F. l/3 o Retail calls remainder of day o Pick up stock o T.E. #3 o Solvency check o Review Product Profile Sheets o Trainer plans ne week/routing o SR and Trainer complete Sign-Of Sheet for Week ~ 1 SS l 78fi0S
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UI'Li.l Y tiICN-0I-4' , 111•:1'1' - t'lil t• ty It Iac inF t Ito• i i Inl t l.il e: in the nprroil+t iate calumrs, hlith tlot• :,:. tes I:I•I.i o•rcvntnt ltc :rnd the Triltier ackn-wlcdRe that II Is . "II I t•(•t ivvs Ii.ivc rtchlcvt•cf. If .Il;n-roft or•nnnnt he t;lven Ioif (or.i• nr more c+bjcctlvea, thi• Tralncr ard '.R iill dr% rItolo i 1.1.-to to lie ini•tirporatcd intti neqj vcrl.'r: artl%•Itius. tt the cnmhlrt io•n ul lhi!c tler•k's tr.tiniiip, I., til;. SR •rR SR TR (:an Jcl lne and explain tloe six 7. Can perfnrm Trarking Exercise /J accountaht 1 lt ics '. Ilmicrstnnds the Intcrrelatl41nslolp al call ptncedtorr.s, acrc.untabilitics, I+ro6rams, and vehlc lcs 1. Can def ine the crlteria for each accuunt:.b i 1 i t y s. Can c4.rrcctly perform the Six Steps oif Systcmnt ic Selling for A, 11, and C ralls, with Tralncr Ruldance . I)cmonstr.ttcs knowledge of accoutitahflities in A, 11, and C calls vith Trainer ruldanct: ~, ltnder!:tauds the purpose and pr(.cedure of a T/A Z6S1 Zafios P 8. Demonstrates rr•tentlon of the skills and knnvledl;e Eained during Week /I •1'(:- 21t
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WEEK 2 - MONDAY TIME SR. ACTIVITY 1/2 Hr. TRAINER' S DIRECTIONS/NOTES o Trainer gives SR overvi ew of Week 02 activities and sign- off objectives (from Planning Sheet). 1 Hr. Review OPERATING GUIDELINES Module 1 Hr. Review CALL PROCEDURES Module. 3 1/2 View ACCOUNTABILITIES Module. Hrs. A. Introduction o Program Objective o Accountability Concept o Definition of Accountabilities o Impact of Accountabilities on RJR Industry Position o Importance of Positive Attitude (PROGRAM STOP) B. Accountabilities & Call Procedures o Relationship of Call Procedures to Six Steps o Definition of Call Procedures o Definition of Six Steps o Probe for retention of the sign-off objectives for this module. o Probe for retention of sign- off objectives for this modu]e. o Review Reporting System=and Master Store List. o Prior to showing the module, explain the Program Objective: To provide specific information about the six Accountabilities, how to accomplish them, and their relationship to job performance evaluation.
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. ~,TEEh 2 - t:0NDA5' TI":E SR ACTIVITY TRAINER'S Dlhc',CTIOrSIKOTES c Definition of Programs o Def init;.on of Vehicles o Use of Programs & Vehicles to Accomplish Accountabilities o Accountabilities & Per- formance Review ;FFOGRA'•i STOP) C. Product Availebilitv Accountzbility o Tools and Programs - Retail Promotior.s - Car Stock - Sales Transactions - Inventory N:anagement System (PROGRAN STOP) D. r:erchandising Accountability o Function of Merchandisir.g o Tools & Programs - IMS - Package & Cart~r. Fixtures - Fixture Contracts - E. Advertising Accountability o Tools & Programs - Tempora::, Displays - POS - Temporary - Permanent - Placemer.t/Location (PROGRAM STOP) 0 TG-30
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1,'FEK 2 - MONDAY TIME SR. ACTIVITY F. Assignment Coverage Accountability o Tools & Programs - Coverage - Frequency - Call Count (PROGRAM STOP) TRAINER'S DIRECTIONS/NOTES G. Administration Accountability o Tools & Programs o SIS Divisions should alert - Planning Schedule S R to disregard references - Reporting to Compumark on account- - Draft abilities module. - Contracts _ - Weekly Expense & = Payroll Report - Field Sales Operating Fund H. Selling/Presentation Skills Accountability o Tools & Programs - PSS - Selling Tools & Aids - Systematic Selling Steps o Summary (PROGRAM END) 1 Hr. o Review Reporting, Cigarette Brand Categories, and Master Store List 1/2 Hr. o SR picks up supplies for this week's calls. 1/2 Hr. o Trainer conducts Question and Answer Session.
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WEEK 2 - TUESDAY TIME 8 Hrs. SR. ACTIVITY o SR and Trainer work together on A, B, and C calls alternating Tracking Exercise #3. Additional steps: 4. Organize and Sell o Review Inventory, List call objectives. o Make Selling Presentation o One Trip to the Car o Complete Selling Transaction - Cash - Exchange - Order Book - Prebook - Bill-through 5. Display and advertise o Set Displays - 1 Carton - 20 Pack - 30 Pack - 3-1 Carton - B1G1F o Placing Advertising - Paper - Decal - Metal Sign - PDI 6. Complete Appropriate Reports and Forms o Complete Reporting in store o Complete necessary correspondence to Division Office o Note changes in Master List. TRAINER'S DIRECTIONS/NOTES o Explain the day's agenda - All day OJT - Trainer makes first call - SR to make remaining calls - Tracking Exercise #3 - A calls included for the first time o During today's calls, demonstrate the use of programs and vehicles to accomplish objectives. o Describe the relationship of call procedures and the Six Steps to achieving accountabilities. o At the end of the day's calls, review the use of: - Precall planning - Work Plan - #899 - Master Store List - Compumark #5000 - Hand-Held Computer o Provide routing for Wednesday's work (SR works alone for the first time). I TC-32
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WEEK 2 - WEDNESDAY TIME SR ACTIVITY TRAINER'S DIRECTIOKS/NOTES 8 Hrs. o SR works alone. WEEK 2 - THURSDAY 4+ Hrs. o SR participates in T/A with o Review what a T/A is and Trainer. conduct a T/A on all Wed-r.es- day's calls. P.M. o SR makes all calls for remainder of the day. o Credit good performance ar.d t constructively criticize areas needing ir,provenent during T/A. o Perform Tracking Exercise 1'.3 for remaining calls. o Summarize the day's calls: - Objectives ach:eved? - Call Court OK? t - Problems encountered?
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S;EEK 2 - FRIDAY T:*'.E SR ACTIVITY TPAINER'S DIF.ECTIO.`:S!"'CTES 8 Frs. o SR and Trainer work o Emphasize eccountab:lities. together. o Trainer plans :cuting for ne.:t we~-,k, t4'f.:r.g into con- sideratior: - Wbr'&: P:an objectives - Keecs of Kev and L accounts - Chain call procedures - Call count standards o WF:en stock is e.ckPd up for next week, :-.ake a solver.c;- creck. o Trairer and SE co:-.plete ;t,e week's aumir.istrative wori: and revico: the week' s acitivities, o Co^piete Si€r.-Cf: Sheet for Week tZ.
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i WEEKLY PI.ANNTNC SHT:T:T - WEEK 3 MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY o Review chain account o T.E. #3 o T.E. 1/3 o SR works alone o SR works alone call procedures c+ W/W by Trainer o Inform SR of Exam o Trainer plans fll on Monday routing for next o Trainer makes first 2 weeks I or 2 calls o W/W by Trainer o Emphasis placed on Kev6 A calls o T. E. #3 .? TC-35 6ss t zsfios
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WEEKLY SICN-l1FF SHEET - WEEK 3 By placing their initials in the appropriate columns, both the Sales RepreJSentative and the Trainer acknowledge that this week's objectives have been achieved. If iW-off cannot be given for one or more objectives, the Trainer and SR will develop a plan to he incorporated into next week's activities. At the completion of this week's training, the SR: 1. Demonstrates competence in call procedures for Key and A calls with Trainer guidance 2. Demonstrates knowledge of accountabilities in Key calls with Trainer guidance 3. Demonstrates ability to apply skills and knowledge gained in Weeks l/1 and #2 SR TR TC-36 r o6S I zsfios I I ' I
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WEEK 3 - MONDAY TI"IE SR ACTIVITY TRAIh'ER'S DIRECTIONS/NOTE,S 8 Hrs. o SR and Trainer work together o Trainer gives SR overview of with emphasis on Key and A Week 63 activities and sign-off calls. objectives (from Planning Sheet). o Trainer makes the first Kev calls and coaches the SR on special points: - Precall Knowledge - Coverage/Frequency - Potential and Need o Trainer performs Track-ing Exercise #3 for remaining calls and reviews with SR. WEEK 3 - TUESDAT 8 Hrs. o SR W/W Trainer. o Explain the day's activities: Emphasis on Key and - Tracking Exercise i,3 A calls. - Work With on Key calls o SR and Trainer work o Review the day's activiites: together alternating - Work With Tracking Exercise #3 - Tracking Exercise #3
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WEEK 3 - WEDNESDAY TI`:E SR ACIICITY TF.f+'..`;ER'S DIRECTIQN S/NOTES 8 Ers. c SR k'/4: Trainer. o F.eview the day's activities: - Work With - Tracking Exercise 03 o F.eTind SR cf Exar ;`i on the cer*ing Fonda;•. o Provide rcuting `o: ThLrsday's and Fri2ay's work. WEEK 3 - TF?CRSP.AY/FP.IDAY E Nrs. c SR works alone, makes scheduled calls or, retail accounts TG-38
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1 WEEKLY PLANNING SHFET - W1:F.K 4 MONDAY (classroom) TUESDAY WF,DNF.SDAY THURSDAY FRIDAY o SR and Trainer o W/W by Trainer o SR works alone o W/W retail calls o SR works alone complete Sign-Off Fmphasis on carton Sheet for Week #3. o T.E. #4 outlets o T.E. #4 o SR takes Exam #1 o Solvency check o SR and Trainer review I:xam #1 o CIGART:TTE MERCH- ANDISING I. Module (Cartons) o Assigned Reading/ Study - CMM (Carton Merchandising) - Merchandisers and Component Parts Catalog TG-39 'R EES t 48fi0S
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Wi:!{K1.Y SICN-OFF SHRF.T - WEEK 4 Rv plr+cinp, their iilitials in the appropriate columns, hnth the Sales P.erresentr+tive and the Trainer acknowledge that tl, is week's ohjve tiv(,s have been achieved. lf sign-off cannot he given `or one or more objectives, the Trainer and SR wi I 1 devvlop .i pl.in to be incorporated into ne~1 t week's activities. At the completion of this week's traininR, the SR: 1. Can identify carton merchandisers, component parts, and the use of eacli 2. Understands the guidelines for carton merchandiser placement 3. Can apply brand family merchandising strategy 4. Can apply proportionate loading strategy 5. Understands the concept and purpose of rlan-o-l;ramming 6. Understands the conditions and applicability of each shelf contract 7. Understands how to resolve contract compliance problems SR TR 8. Is familiar with competitive contracts and merchandisers 9. Can describe and explain an Industry Plan-o-gram. 10. Can perform Tracking Exercise #4 11. Demonstrates continued mastery of skills and knowledge gained in Weeks #1 through 3 TC-40 . fi6s1 r8fios SR TR
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WEEK 4 - MONDAY TIME SR. ACTIVITY TRAINER'S DIRECTIONS/NOTES I 1/2 Hr. 1 Hr. Examination $1. 6 + View MERCHANDISING I Module. Hrs. A. Introduction o Five Ways Cigarettes Provide Profit o Definition and Function of Merchandising o History of Merchandising at RJR o Five Objectives of Merchandising B. Merchandising Resources (PROGRAM STOP) C. Merchandising Methods o Self-Service o Controlled Self-Service o Non-Self-Service D. Guidelines for Placing Merchandisers. (PROGRAM STOP) TG-41 o SR and Trainer complete Sign-Off Sheet for Week #3. o Trainer gives SR overview of Week f/4 activities and sign-off objectives (from Planning Sheet). o Be certain the SR understands all he/she must do during the exa:r.i- nation. Explain: - Types of Questions (applica- tions of skills and knowledge) - Materials Needed - Time Frame - Review Process = o Allow sufficient time for a comprehensive review with SR. o At the first program stop, spend 20-30 minutes familiarizing the SR with the carton pictorial section of the Cigarette Merchan- dising Manual, the Merchan- disers and Component Parts Catalog, and the Merchandisers and Component Parts Assembly Instructions Manual. High Light ~ the carton merchandisers and component parts used in your division. o Although Division Management usually completes Requisition Form #4471, the SR should be familiar with the procedure. o Review guidelines for placement. I t
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WEEK 4 - MONDAY TIME SR. ACTIVITY TRAINER'S DIRECTIONS/NOTES E. Loading Procedures o Answer any questions and o Brand Family Merchandising review any Division Guidelines o Proportionate Loading for Brand Family and Propor- o Inventory Base tionate loading. o Plan-o-grams (PROGRAM STOP) F. Merchandiser Contracts o Review contracts with SR, o Self-Service probe for understanding: o fi on-Self-Service - Can the SR define the columns in the grids? - Can the SR read the gr-ids? - Does the SR understand the contractual requirements? (PROGRAM STOP) - Take the time necessary to ensure proper understanding G. Implementing Plans of our contracts. o Independents o Chain Stores H. Contract Compliance (PROGRAM STOP) I. Competitive Fixturing o Discuss and review competitive and Contracts contracts. J. Industry Plan-o-grams o Discuss Workbook Exercise #5 with the SR. You will play K. Summary the part of the retailer in a compliance problem situation. (PROGRAM END)
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WEEK 4 - TUESDAY TI":E SR. ACTIVITY TRAINER'S DIRECTIONS/NOTES 8 Hrs. o SR and Trainer work o Explain the day's activities: together on carton out- - Work With lets, alternating Tracking - Tracking Exercise 04 Exercise #4. Additional Step: 7. Contracts o o Carton or Package o Type of Merchandiser(s) o Plan Name o RJR Monthly Payment 0 0 0 0 During the day's calls, emphasize basic merchandising skills: - Objectives of merchandising - Tools for merchandising - Methods for merchandising - Merchandiser selection and placement - Loading procedures ~ Calls this week should include those highlighted on the Master Store List during Weeks #1 through 3 as having carton mer- chandising problems or opportun- ities. Probe for SR's ability to read contract grids. Demonstrate contract applications. Demonstrate proper handling of compliance procedure. 0 WEEK 4 - WEDNESDAY 8 Hrs. o SR works alone, retail carton outlets.
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L.'EEK 4 - THURSDAY :':r:E SR ACTIVITY TRAINER'S DIF.ECTIGNS/:;OTES 8 Hrs. o Same procedure as o Same procedure as Tuesday Tuesday. o Probe for SR's ability to reac'e cont:act grids. o Lemonstrate cortract applications. o Demonstrate prcper handling of compliance prohlems. o At the end of the day, conduct a Questicn and Answer Session and review Friday's work schedule. e Conduct solver,cv check. o SR and Trainer cor.plete Sigr-O:f Sheet for N'eek 04. k'EEfi 4 - FRIDAY 8 c!rs. o SF, works alone, retail carton outlets. I TG-44
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MONDAY (classroom) TUESDAY o Review of previous o W/W by Trainer week o T.F.. #4 o CTGARCTTf; MF.RCNAN- DISING TI, Modu]e (Packages) o Assigned Reading/ Study - CMM (Package Merchandisin ) - Merchandisers & Component Parts Catalog I WF.EKLY PLANNTNG SIIF.F.T - WR1;K 5 WFf)NT:SDAY THURSDAY o SR works alone V o SR works alone. T:mphasis on package/ PCD outlets TG-4 5 01 FRTDAY o Trainer T/A alon of Wednesday & Thursday's work o Trainer pick up on trade; review T/A o Review all contracts and fixturing covered in Weeks 4 & 5 o SR and Trainer complete Sign-Of Sheet f or Week P 66_s1 ra, 0s
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WF.F.Kf.Y SIGN-OFF SHEET - WEEK S By placing their initials in the appropriate columns, both the Sales Reprhsentative and the Trainer acknowledy;e that this week's ohjectives have been achieved. Ifl43Fn-off cannot he given for one or more objectives, the Trainer and SR will develop a plan to be incorporated into next week's activities. At the completion of this week's training, the SR: 1. Can identify SR TR all package merchandisers, SR TR 5. ls familiar with competitive merchandisers component parts, and the use of each and programs 2. Und mer erstands t chandiser he guidelines for package placement 6. Understands Permanent Counter Display programs and contracts 3. Und erstands a nd can use the seven 7. Is familiar with competitive PCD programs steps for installing a merchandiser: A. Determine Proper Merchandiser 8. Demonstrates continued mastery of skills B. Determine RJR Space and knowledge gained in Weeks #1-4 C. Determine Competitive Space D. Loading Procedures 1:. Labe 1 ing F. Signage C. Follow-Through 4. Understands specifications of oral and written agreements ~ 11 TC-46 0091 -4,118-ba5 , I ,I i
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WEEK 5 - MONDAY TIME SR ACTIVITY TRAINER'S DIRECTIONS/NOTES 2 Hrs. o Review Week 04 activities and the MERCHANDISING I Module. 6 Hrs. View MERCHANDISING II Module. A. Review of Merchandising Objectives B. Package Merchandising Resources o Standard Wa11 Merchandiser o Slide-By o Overhead o Centralized Package Merchandiser o Gondola End Franc o CMM and Merchandisers and Component Parts Catalog o Give SR overview of Week f:5 activities and sign-off objectives (from Planning Sheet). o Again spend 20 to 30 minutes with the SR going through the CPi*1 and M 6 CP Catalog; this time with particular reference to package merchandisers and component parts used ir, your division. (PROGRA": STOP) C. Guidelines for Placing Merchandisers o Probe for understanding of placement guidelines. (PROGRAM STOP)
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WEEK 5 - MONDAY TIME SR. ACTIVITY TRAINER'S DIRECTIONS/NOTES D. Seven Steps for Installing Merchandisers 1. Determine Proper Merchandiser 2. Determine Space for RJR Brands 3. Determine Space for Competition 4. Merchandise RJR o Brand Family o Proportionate Loading o Plan-o-grams 5. Label Merchandiser 6. Signage 7. Follow Through E. Merchandiser Signage o PDI (PROGRAM STOP) F. Package Merchandiser Agreements o Oral o Written o Probe for understanding of agreement conditions. G. Working with Independents vs. Chains H. Competitive Merchandisers (PROGRAM STOP) I. Permanent Package Displays and Contracts o PCD o Checklane 0 20/30 Pack o Module (PROGRAM STOP) J. Plan Compliance (PROGRAM STOP) K. Competitive Permanent Display Programs (PROGRAM END) o Review contracts with SR; probe for understanding. - Take the time necessarv to ensure proper understanding of our contracts. o Show module on Permanent Package Displays - plastic and wire o Review procedure for handling non-compliance. o Discuss competitive programs. o Ansc:er any questions. TG-48
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WEEK 5 - TUESDAY TIME SR ACTIVITY TRAINER'S DIRECTIONS/NOTES 8 Hrs. SR W/W Trainer, retail package o Explain the day's activities: outlets. - Work With - Tracking Exercise 04 o During the day's calls, stress basic package merchardising skills and knowledge: - Kinds of merchandisers - 7 Steps for installation - Permanent displays and contracts o Calls this week should Uclude those highlighed on the 2Y'aster Store List during Weeks #1 through 3 as having package merchandising problems or opportunities. o Plan routirig for SR's Vednesday and Thursday calls. Stress package outlets. o Probe for SR's ability to read grids. o Demonstrate contract tions. applica- 0, o Demonstrate proper handling of compliance problems. o Review call reports at the end of the day.
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WEEK 5 - WEDNESDAY/THURSDAY TIME SR. ACTIVITY TRAINER'S DIRECTIOhS/%()TES 8 Hrs. o SR works alone. WEEK 5 - FRIDAY 8 Hrs. o SR W/W and T/A with Trainer. o Trainer conducts T/A alone on Wednesday's and Thursday's work. o Pick up SR on trade. Review T/A. Credit good performance and constructively criticize areas needing improvement uncovered during T/A. o Review contracts and fixturing as needed. o At the end of the day, complete Sign-Off Sheet for Week #5 with SR. o At this point, the Call Accountabilities sheets should be given to SR for placement in his Call Report Binder.. 1 TG-50
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KEY CALLS: 125+ cartons p er week primaril y by the carton PRODUCT DISPLAY/ AVAILABILITY MERCHANDISING ADVERTISIN G ADMIN/ COVERAGE COMMUNICATION SELLING PRES. SKILLS ° Check/Rotate ° Merchandisin ° Tem orar ° Minimum of ~ ° Maintain ° Utilize PSS Stoc o Pro uct Disp ays Mont~i y Proper S ciTTS; Coverage Reporting Cartons Ca rtons se11/maint ain capitalize - full rotation - follow BFM according to - identify/ ° Maintain on volume (3 mo. old) guidelines Work Plan recommend Payments opportuni- - check backroom - proportionate frequency ties - replenish loading ° Permanent changes to fixture as - follow guide- Displays management needed * STP Packages lines on .2 brands load/maint ain as needed fill fixtures on active Pa ckages according Work Plan to follow 25% frequency checkstands - same as above as agreed remove unsala- bles PF D/Savings Cnt. - maintain compliance by manage- ment - same as above ° Distribution eliminate - gain maintain ° Merchandising dual MCD- Segment I, II, Equipment carton and III brands contracts * STP - Check and rotate items utilize RJR except on S/S relative to volume ° Inventory fixturing to meet Levels competition - Product should seek its correct OOS/ maximize RJR own level LS, emphasize space ° POS/PDI long-term solution maximize cost dominate call assure proper efficiencies with appro- inventory priate management - ensure pieces increase inven- compliance tory on Work - ensure Plan brands. signage on all pkg/ctn ° Consumer fixtures Activity - Accomplish with ~ regard to time 5091 Z8fi0S
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I i soy.8z 160s Cartcn/Packagr FtxturtrJ ..n.t P~l Plar.•mrnt Gurdelines Ko`• callt ivol~,m, in`o - 700) Cl.rtnn Ftxtures - Exlstrnq Stores Package Ftxtures 'VcM with 1/a wide extenders and/or wral+ Flex Srstrms - Nrv/Remodeled Stores '4x7 Tohacco Center--Stress availability in 't00• volume calls, excrptton hy mar et on y on volume r~To~ ~bv cartons due to charn/comprtittve demands. '4x4x4 Wrap--Same statement as abo••e. •All PackaqP Fixtutes with Siqnaqc •Packaqr merchandising techniques• Priorize the types of merchandisers and systems far retailers which provide best bPnefits for RJR. -Reltline...(Univ. Pkq. Merchandiser) -Reltline with augmented system. -Spinner (MCC) Multiple -Gondola F•nd -Alternate Reltline -Rackbar •4H Configuration - Selectivel place - last resort by Reqiona Sa es Area arrpoval. •(For selection see Exhibit R1 fY-isttnq or nev/retnodeled stores) •Vtitise 30-Pack Checklane Proqram at active checY.stands based on allocations. Decor Kits •Avatlable to meet competition. 'Save current UCM's/extenders •Gatn space. •Existinq-nev-res+odeled stores, as appropr:atr. End Cap Merchandising Systemsr •Wrap •End Cap Fixt.Ext. I•MUlti-End Caps iFor selection see Exhibit A) Df ITEMS PDI ITEMS •A11 eligible rtens. •A11 eligible items. i Cartnn/Package Fixturing and PDI Pfacrmt•nt f.utd.•Ifnrs M~•y C..l ) s (VOlumr 1?S - 3991 Carton Fixturt•s •StandArd Carton Merchandrsers Packa .• Ftxtur.•5 ----4--- - - - •A11 Package Frxturr•s with Siqna4e •UCM with 3/6 wide extenders - wrap as judqed appropriate considerinq voluttte, distribution, SOM. •Decor Kits - avar a e to meet competition - save current UCM's/extenders - gain space - new or remodeled stores - existing PDI Items •Al1 eligible items. •Package mrrChandtsing techniqurs• Prtor.rr tjie types~rs and systrms for retailers which provide best benefrts for RJR. -Beltlinr,..fUniv. Pkq. Merchandiser) -Beltlrne with augmented systems -Gondola Fnd -Spinner (MCC) -Alternate Beitline -Rackhar •(For selection see Exhibit 81 ~Il ' ~r
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----T-, ' ~ ~ A Calls: 125+ _arton per week primarily by the package PRODUCT DI AVAILABILITY MERCHANDISING ADVE SPLAY/ ADMIN/ SELLING PRES. RTISING COVERAGE COMMUNICATION SKILLS ° Check/Rotate ° Merchandising ° Temp orary 0 Minimum of ° Maintain ° Utilize PSS Stock of Product Disp lays Monthly Proper Skills Coverage Reporting Cartons Carton sell /maintain - capitalize on - full rotation acco rding to identify/ ° Maintain volume (3 mo. old) - proportionate Work Plan recommend Payments opportunities -check back- rooms loading where applicable ° Perm anent frequency changes to Packages - follow guide- Disp lays management - fill Self-ser. fixtures - fill NSS visi- ble as needed lines on .2 brands Packages load acco Work /maintain rding to Plan as needed - follow 15e frequency remove unsala- bles ensure fresh- follow BFM guidelines on - main comp tain liance as agreed by management i MCD' lf- vi ness n s se ser ce ° Distribution pro. load Seg. I in NSS visi- elim dual inate - gain maintain Segment I, II, III brands ble single fix. pro. load Seg. I, II, III in NSS visible con exc to com tracts ept meet petition ° Inventory multiple fix. Levels load MCD's fol low 51% - correct OOS/ follow guide- gui delines LS, emphasize long-term l i lines on .2 brands for pla carton n so ut ons assure proper ° Merchandising ° POS /PDI inv. mgmt. Equipment increase inventories utilize RJR dom wit inate call h appropri- on Work Plan brands fixturing in visible ate pieces ° Consumer locations maximize RJR - ens sig ure nage on Activity space all package 111 - utilize with maximize cost .rf ix tures regard to time efficiencies ensure compliance L09 l Z6fi4s
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i None 'Priorize Mini-Overheads unless •Avoid large 8-tray plans. competition or chains dictate a main/module unit. •Cash register position - 1st priority. I 5048: >,60a i Carton/Package Fixturing and PDI Placement Guidelines A Calls (Vo ume 125+) Package Carton Fixtures Shelf Plans Package Fixtures Payment Plans None PDI •Main/module overhead - 2nd •No PPCD in "primarily by priority. by package" outlet. •Do not want "new" •Standard pkg. fixtures and/or meeting competi- slide-by systems where tion on ctn. overhead not acceptable. fixtures/shelf plans. •No Mobile Cigt. Center •Utilize wire/plastic fixtures in N/S/S situations PCD's for permanent - regardless of competitive display programs they fixture. were intended for. (Exception upon Sales (temporary 10-20-30 packs) Director's approval) •A11 eligible PDI items. ~
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MERCHANDISING B Calls: 76-124 cartons per week PRODUCT AVAILABILITY 0 Check/Rotate stock 0 Inventory Levels t YB~OS 609 i , , DISPLAY/ ADVERTISING I ADMIN/ COVERAGE COMMUNICATION SELLING PRES. SKILLS ° Merchandising ° Temporary ° Monthly only ° Maintain ° Utilize PSS of Product Displays Pro er Skills - eliminate Reporting full rotation Carton - sell/maintain over-calls - capitalize (3 mo. old) - if contracted, according to ° Maintain on volume exists follow guide- Work Plan Payments opportuni- remove unsal- lines ties ables ° Permanent - if not, achieve Displays Distribution proportionate load - load/maintain gain/maintain according to Segment I, II, Packages Work Plan II Brands I - if self-service, follow A Call - maintain guidelines compliance - if NSS, propor- ° POS/PDI correct OOS/LS tionate load/ by most effect label Seg. I - dominate POP ive means if in focal location - ensure RJR Consumer representa- Activity ° Merchandising tion at cash Equ~pment register, utilize with area around regard to time Carton register, - minimize ctn windows, fixturing doors and outside - standard fixtures only - use selected items, i.e., Packages decals, - emphasis on pasters, standard racks sm. clocks, grd/pole mts. I I i - no mdsers. in '?, non-visible - ensure locations signage on all fixtures
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I f I Carton/Package Fixturing and PDI Placement Guidelines R Calls (Volume 76-124) Carton Fixtures •Std. carton merchandisers 5Q,+82 1610 Package Package Fixtures Payment Plans •Mini-OPM OK for volume of 75+ •Cash register position (100+ ctn. volume only) ctn. only. (Based on individual mkts. when primarily by ctn.) •Standard pkg. merchandisers - slide-by systems lst priority. •Avoid 8-tray plans. •Only utilize wirelplastic PCD's for permanent display programs they were intended for. •Do not want "new" meeting •Avoid overheads-main/module competition on carton in independents...exceptions fixture/pay plans. may be chains. •Avoid/discourage multiple •Avoid Mobile Cigarette Centers. fixtures and security equipment. PDI Items •Selected "low cost" PDI items - in interior of calls. •Avoid "overkill"lwaste. •Exceptions...consider high traffic exposure situations. Exterior areas - high traffic/visibility situations-selective "high cost" PDI are acceptable. i, l,
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C4 Calls: PRODUCT AVAILARILITY MERCf IAND I S I NG I ,, 50-75 cartons ~r v+eek DISPLAY/ ADVERTISING i ADMIN/ SELLING PRES. COVERAGE COMMUNICATION SKILLS Check/Rotate ° Merchandising ° Temporary ° Monthly only ° Maintain ° Utilize PSS s ock of Product Displays Proper Skills ! - eliminate Reporting ation rot Carton - sell/maintain over-calls - capitalize 3 mo. old) ( - if contracted, according to ° Maintain on volume exists follow guide- Work Plan Payments opportuni- remove unsal- lines ties ables ° Permanent - if not, achieve Displays Distribution proportionate load - load/maintain gain/maintain according to Segment I Packages Work Plan - if self-service, work new follow A Call - maintain brands guidelines compliance maximize - if NSS, propor- ° POS/PDI Segment II tionate load/ potential label Seg. I - dominate POP if in focal Inventor location - ensure RJR Leve s representa- ° Merchandising tion at cash correct OOS/LS Equipment register, by most effect- area around ive means Carton register, - minimize ctn windows, Consumer fixturing doors and ti~ ~i Ac ty outside - standard util ze with i fixtures only - use selected rega rd to time items, i.e., Packages decals, - emphasis on pasters, standard racks sm. clocks, grd/pole mts. - no mdsers. in hl non-visible ;~ ensure locations signage on all fixtures z8fi05
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50482 lslz Carton/Package Fixtur.ing and PDI Placement Guidelines C4 Calls (Volume 50 - 75) Package Carton Fixtures Package Fixtures Payment Plans None •Standard Package Fixtures Stress utilization of "temporary" displays/payments. PDI Items (Same guidelines as in B Calls) f
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PRODUCT AVAILABILITY ° Check/Rotate Stock - Rotate (3 mo. old) Remove old/ damaged merchandise ° Distribution Segment I & Work Plan Brands only ° Inventory Levels - Correct OOS & low stock by most effective means MERCHANDISING ° Merchandising of Equipment Standard wall fixtures only Tag for RJR brands in dist. at time of installation Do not solict fixturing i CO CALLS• i 30-49 cartons per week DISPLAY/ ADVERTISING ° Temporary - Work Plan displays only ° Permanent Maintain/ minimize MCD's ° POS/PDI Strive for represen- tation at POP, front- end, outside Paper/metal decals only Ensure signage on all fixtures Maximize exposure in high-traffic locations, i.e., down- town, resorts !M ADMIN/ COVERAGE COMMUNICATION ° Quarterly onl - Eliminate over-calls ° Maintain ro er reporting ° Maintain Payments SELLI NG PRF.S. SKILLS ° Utilize PSS Skills - Capitalize on volume opportuni- ties £l9t Z'B~OS
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I I I S04$2, 1bly. Carton/Package Fixturing and PDI Placement Guidelines CQ Calls (Volume 30 - 49) Package Carton Fixtures Package Fixtures Payment Plans None •Standard Package Fixtures Stress utilization of "temporary" displays/payments. PDI Items (Same guidelines as in B Calls) I.I,
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D Calls: 1-29 cartons PRODUCT DISPLAY/ ADMIN/ SELLING PRES. AVAILABILITY MERCHANDISING ADVERTISING COVERAGE COMMUNICATION SKILLS e Rotation - remove old product ° Sell Work Flan Brands/ D Si plays ° Paper/metal/ decals only 0 Annually - eliminate over-calls ° Maintain Proper Reporting ° Utilize PSS Skills - for selected volume opportuni- ties S 1 9 1 2'g*pS
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PRODUCT AVAILABILITY ° Check/Rotate Stock - Ensure full rotation by code dates monthly. - Handle damaged merchandise ° Distribution - Gain maintain Seg. I, II, b III Brands - Follow .2 guidelines as needed ° Inventory Levels - Correct OOS/LS, emphasize long term solution is S/0 adjust- ment - Assure proper inventory mgmt/ utilize DA reports - Increase inven- tory on Work Plan Brands - Sell volume building programs when available, ic, BIGIF's, incen- tive programs MERCHANDISING Merchandising of Product Inform account of retail BFM rationale, proportionate loading. Merchandising Equipment Inform account of merchandis- ing placement standards by retail classi- f ication Ensure Merch. Presentations are made, i.e., Doral Savings Center 9t91 ZBtiaS I DIRECT ACCOUNT/GROCERY WHOLESALER II DISPLAY/ ADVERTISING COVERAGE ADMIN/ COMMUNICATION SELLING PRES. SKILLS Displays ° Minimum of Maintain ° Utilize PSS Monthly Proper S k-i l l s Inform Coverage Reporting account of - Capitalize Retail Work on volume Plans, both ° Major Maintain opportuni- temporary & accounts proper ties permanent weekly records, ie., Direct Cus- tomer Sales POS/PDI ° Identify/ Summaries, Recommend Doral Report - Place frequency selected changes to pieces as Mgmt. as deemed needed. necessary P
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Product Availability Merchandising ' Check/Rotate Stock - Ensure rota- tation by code dates monthly. Handle dam- aged merchan- dise. ' Distribution - Gain/maintain Segment I, II, and III brands. - .2 brands seek own level. ' Inventory 1ev- els. - Correct OOS/ LS conditions. - Assure proper inventory man- agement. - Increase in- ventory on promotional brands. - Sell volume building pro- grams as scheduled; mass displays, premium items, 81G1F. - Fully utilize VPR's to main- tain inv./dist. ' Merchandising of Product - Utilize BFM where possible in con- junction with Military Shelf Display Plans. ' Merchandising Equipment - Utilize 15 and 20 case Com- missary fixtures where possible. - Maximize brand load on store- owned fixtures. - Utilize 10 case display unit for mass dis- plays. MILITARY ACCOUNTS 50482 1611 Display/ Administration/ Selling Pres. Advertising Coverage Communication Skills ' Displays ' Minimum of Monthly ' Maintain Proper ' Utilize PSS - Sell mass Coverage Reporting Skills . displays, Large volume accounts ' Maintain proper ' Capitalize premium weekl . records, i.e., on all . items, and Identify/recommend direct customer volume B1G1F. frequency changes sales summaries, opportun- Utilize both to management as purchase/trans- ities. permanent needed. fers to track and tem. volume and pkg. opportunities. displays in Exchanges where autho- rized. Utilize new BIGIF Dump Display Unit where avail- able. ' POS/PDI - Place pro- motional P-O-S on all promotions. - Use calendars and clocks where possi- ble. - Utilize se- lect pieces in service clubs, NCO, Of f icers Clubs and bowling alleys. I Special Note: The above app ies to comm ss ries and vnltimt, -•-^
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Product Availability Merchandising ' Check/Rotate Stock - Ensure rotation by code dates monthly in i i VENDING ACCOUNTS Display Advertising Merchandising of Product - Utilize load plans based on demographics of location and vending S.O.M. to ensure right brands are placed and merchandised. Merchandising Equipment - Coin Mech Program - Toppers and refur- 0 larger accts. quarterly in smaller accounts. ' Handle damaged ' merchandise ' Distribution - Gain/maintain placements on top 9-12 brands based on local S.O.M. and v/m size. - Utilize new vending programs for 1985. ' Inventory Levels - Insure that sufficient quantity of brands stock is in inven- tory. - Assure proper inventory controls are utilized. - Sell any volume build- Ing programs approved for 1985. bishing - Inserts units. 9191 Z8t,0; ' P-O-S/PDI - Provide vendor with all vending P-0-S/PDI °Postons °Price Dials °Refurbishing Panels Coverage ' Minimum of Monthly Coverage of Vendors with 50 v/m's or above ' Minimum quarterly coverage of vendors with less than 50 v/m's. Administration/ Selling Pres. Communication Skills ' Maintain Proper ' Utilize PSS Reporting Skills - Placement Pay- ' Capitalize ment Reports. on all vend- - Location Anal- ing programs ysis. offering - Vending S.O.M. additional - Coin Mech Repts. dist./vol.
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I Independent Vendors PRODUCT AVAILABILITY MERCHANDISING DISPLAY/ ADVERTISING I I 50w82 1519 ADMIN/ SELLING PRES. COVERAGE COMMUNICATION SKILLS Remove old ° Maintain ° Annual ° Maintain ° Sell Ven ding Product La e s 6 O-~ - Proper , Promotions Panels Reporting ° Work ° Pay Annual Selected Amounts Due POS 1
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I I {,'rRKLY PLANNIN(: SHEET - WFRK fi MONDAY (classroom) o Review CIGARETTE MF,RCHANDISIN(: I & II Modules and print materials o Detailed explanation of Routing, planning, coverage, Work Plan priorities, printouts - - o Detailed explanation of Draft/Pay Register o SR plans work for remainder of month o Remainder of day OJT as time allows TUESDAY o W/W by Trainer stressing points covered Monday rP WEDNESDAY o SR works alone TG-51 THURSDAY o SP, works a l one FRIDAY v W/W hy Trainer stressing points covered during week o SR and Trainer complete Sign-Off Sheet for Week #6 ces 1 zsfios
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WEEKLY SIGN-OFF SHEET - WEEK 6 By placing their initials in the appropriate columns, both the Sales Representative and the Trainer acknowledge that this week's objectives have been achieved. If sig"-off cannot be given for one or more objectives, the Trainer and SR will develop a plan to be incorporated into next week's activities. At the completion of this week's training, the SR: SR TR 1. Demonstrates ability to plan and 2. route his/her own calls using: A. Planning Schedule B. Work Plan 3. C. Master Store List D. Criteria for Assignment Coverage accountability 4. •TG-52 P l2'9l t8+0S Demonstrates ability to properly complete and administer the Draft program. Demonstrates ability to complete reporting forms: - # 7101 Demonstrates continued mastery of skills and knowledge gained in Weeks #1 through S SR TR I I ., I
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WEEK 6 - N'ONDAY TINF SR. ACTIVITY TRAINER'S DIRECTIONS/NOTES 1/2 Hr. o Trainer gives SR overvie;: of Week t6 activities and si€-:-: f f objectives (from Planning Sheet). 2 Hrs. Review CIGARETTE MERCHANDISING o Probe for retention of sign-off 1 and 11 Modules. objectives for these modu2es. 5 1/2 o Review assignment cover- Hrs. age and frequency accountabilities. o Review in detail coverage, frequency, Work Plan Organizer, and Work Plan priorities. o Complete Monthly Planner for remainder of month. o Assist SR in completing Month L• Planner and be sure that he/she understands the planning = procedure. From this point on, SR will plan his/her own work. o Review Reporting procedures. o Complete Form 710] as needed. o Review Forms 4/ 7101 with SR and assist in completion of this form using notes made on Master Store List during Weeks (i 1 through S . o Acquire proficiency in completing Draft. o Review Pay Register System and how it works. o Give SR overview of Draft Jystems. o Have SR read print materials on Draft in the STEP Binder. - Review in detail all Draft procedures. o Explain Pay Register System. r-J o, )14 TG-S 3 t'j
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WEEK 6 - TUESDAY - THURSDAY TIME SR. ACTIVITY TRAINER'S DIRECTIONS/NOTES 8 Hrs. o SR works alone 2 days o W/W SR either Tuesday, and with Trainer one day. Wednesday, or Thursday as you deem most feasible. Work with SR on day he/she vill first pay Drafts to ensure proper procedures are followed. iIEEK 6 - FRIDAY o Explain the day's activities: - Work With stressing - Merchandising, Display/ Advertising, Assignment Coverage, and Administra- tion/Communication 8 Hrs. o SR W/W Trainer. o Today's Work With should be a cumulative assignment in which any outstanding difficulties should be addressed prior to undertaking full-line selling and direct accounts. The SR should be functioning at a ~ satisfactory level without = Trainer guidance in the following areas: - Call procedures for all retail accounts (cigarettes only) - Six Steps of Systematic Selling for retail accounts (cigarettes only) o Complete Sign-Off Sheet for Week #6 with SR. ~ 4 ~ ..~ Oy ~ w TG-SL
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I ,I I I WEEKLY PLANNiNG SHF.F.T - WEEK 7 MONDAY (classroom) TUESDAY WEDNESDAY THURSDAY FRIDAY o SMOKING & HEALTH o W/W by Trainer o SR works alone o SR works alone o SR works alone Module In direct account calls o DIRECT ACCOUNTS Module o 0 J T o Direct Account Calls, remainder X X of day OJT o Trainer to perform T/A alone on Thursday o Review Tobacco or Friday Product Profile TG-55 P ? fi'r9l ZSfipS
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WEEKLY SIGN-OFF SHEET - WF.F.K 7 By placing their initials in the appropriate columns, both the Sales Rqpresentative and the Trainer acknowledge that this week's objectives have been achieved. If s' n-off cannot be given for one or more objectives, the Trainer and SR will develop a plan to be Incorporated into next~week's activities. At the completion of this week's training, the SR: 1. Is familiar with the primary aspects of the Smoking and Health Controversy, including: A. History and trends B. Government reports C. Char};e , and replies D. RJR and industry position E. Procedures for handling objections 2. Can name and define the five kinds of direct accounts 3. Can perform the Six Steps of Systematic Selling for direct accounts with Trainer guidance SR TR SR 4. Understands and can use: A. Inventory Service B. Report of Standing Orders C. Domestic Customer Sales Analysis Sheet D. Damaged Goods Forms 5. Demonstrates continued mastery of skills and knowledge gained in Weeks #1 thru 6 TC-56 Sr 91 'r 8fi0S r
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WEEK 7 - MONDAY TIME SR ACTIVITY 1/2 hr. 1/2 hr. View SMOKING AKD HEALTH CONTROVERSY Module. A. Introduction o History o Government Reports o Trends B. Anti-Smoking Charges and Replys C. Little-Knou-n Facts about Smoking D. Position of RJR and the Tobacco Industry o Publicize Facts o Support Research E. Recommendations from RJR o Sample Objections and Responses o Contact Tobacco Institute o Refer Questions to Headquarters o Stay Informed/Remain Objective TRAIhER'S DIRECTIOrS/AOTES o Discuss with the SR: - Activities for the weei-. - Sign-Off obJectives - Full-line selling o Prior to showing the module, explain the Program Objective: To provide the Sales Representa- tive with information regarding the smoking and health contro- versy.
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WEEK 7 - PSOr•DAl TI*:E SR ACTIVITY 2 F?rs. View DIRECT ACCOCf:TS Modulc. A. Types of Direct Accounts o Jobbers o Direct Chair. Accounts o Direct Vendors o I':ilitary Accounts o Irstitutior.s B. Six Steps of Syste.matic Sellirg 1. Get to the Product 2. Rotate and Merchandise Product • 3. Deterr..ine Listributior. and Inventory Feeds 4. Organize and Sell 5. Disp:a;• and Advertise 6. Corplete Appropriate Reports and Forms (PLGGRAl: STOP) _ C. Rotate and Merchandise Product o Inventory o Product Shelf Life - Tobacco Prcducts - Code Dates (PP.CG°S>! STOP) TC.-58 TRA1t:E?2'S DIF.LCTIOtiSItiOTES o Erphasize the differences between performint the Six Steps for reteil vs. direct accounts. o Review end update code date rotation info mation I ..a q N V
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kEEK 7 - MONDAY TIME SR. ACTIVITY TRAINER'S DIRECTIONS/NOTES D. Determine Distribution and Inventory Needs o Inventory Management o Review how to calculate Service build-to figures. - Build-to Figure - Lag Time o Report of Standing Order o Explain, with an example, how information from these o Domestic Customer Sales tools can help increase sales. Analysis Sheet (PROGRAM STOP) E. Organize and Sell o Work Plan o Incentive Promotions - Introductory Discount - Allocation - Distribution Incentive o Retail Selling Efforts o Summary t (PROGRAM STOP) F. Handling Damaged Goods o Damaged Goods Form G. Direct Accounts Order Form H. Display and Advertise I. Complete Appropriate Reports o At the conclusion of the A/V and Forms module, review the exercises and answer any questions. (PROGRAM END) v7 0 ~ m ~ TG-59 ~ a ~ m
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WEEK 7 - MONDAY TIME SR. ACTIVITY TRAINER'S DIRECTIONS/NOTES 1/2 Hr. o Review TOBACCO PROJECT PROFILE in preparation. 1 Hr. o Prepare to make a direct o Assist SR in preparing a direct account call or calls. account call, using the direct accounts Report of Standing Orders, Domestic Customer Sales Analysis Sheet, and any other pertinent information. All SR's should make at least one direct account call in this manner even if they are not currently assigned jobber responsibilities. 'P.M. o Make direct account call(s). o In the time remaining, make retail calls. o Summarize the day's calls. - Objectives achieved? - Problems encountered? - Question and Answer Session WEEK 7 - TUESDAY 8 Hrs. o SR W/W Trainer. o 0 J T WEEK 7 - WEDNESDAY - FRIDAY 8 Hrs. o SR works alone. o Trainer should perform a T/A alone on Thursday or Friday. o When reviewing the T/A with the SR, credit good perforrtance and constructively criticize areas needing improvement. I TG-60
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,~ SR .irn1 'I'r.I iI „•r I t•v i t•w W,•4•k R 1' .. wm k mnd c„mirlt•1 t• ! ly n 111 I SI„•1•t „ i'ItOF'F ti` It1tJAl. tiFI.I.ItJI: ! I: I 1.I.S ('~ i WI I4'I.Y 1'1 At;N I Nt: ti11F1'.'I' -- NI•:I'K It 'I'IIf.SDAY (t• 1 rvrcr:r(+o,m) n I'ItnPl Sti11tNAL ~1:I.I.INC SI•' 1 I I ti 1'rny;r:~m IJI•:I1INI•a11AY o Itet st i I t rallt• W/W by 'I'rnlnt•r ,. I'ti!: t nocIoI ny; I.y Trnltni•r I TIIItIttil)AY o SR vt,rks aIone I'I; I hAY o '1•t.ttnvr T/A (nl1t i"nol) vith SI; 011 vnlk ro•I;arll iny * sk 1 1 I i t•n l i on tt !;f,Ivt•nf•y chrrk v SI' mnd 'I'rnint•r i„r- Wrvk Ptl 'I'i:-hi 0£9l 76to5
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WF:I•:K I.Y ti I(:N-11h'F `0*111'.I:'I' - WI?I•:K 8 Ify p1.ic itig tlielr iuitials in tlie aphruprlate culumn, I1uth tlle S., Irs Ki•prfseiitatlve anJ tla• Trainer acknnwleJl;e tluat this week's uhjert ives have I,cen acliieved. I I I L:ll;n-41/ I cannelt Iiu I;Iven Iur uitc or more ubjectives, the '1'raiuer anJ SR wil l develup a plan to be liicurpurateJ Intu next week's act ivitles. At the cumpletluu of this week's trainlu/;, thu SK: SK '1'K I. Dcinunstrates the ab111ty to use these PSS skills: A. Probing B. Supporting C. Closing D. IlaudJlnti Custumer Attitudes E. Opening tlie Call 2. Uses Selling/Presentation Skills in retail calls with Trainer guiJance 3. Ienwnstrates continued mastery of skills and knowledge gained In Weeks NI through 7 'IY:-b'l p tC91 Z6tt0S i ~ ,~ ~
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WEEK 8 - ':0NDP.Y .i*:_ SR. ACTIV:~~' TFA'_''E?' S_''E?'S DIRECT?O::S/\r,Tcc 6 Hrs . o PROFESSIO';AL o Trainer and SR cot~plete SKILLS Prograr. Sheet for Week +1' and :e•::e. if applicnble. o Using the PSS Adninistratcr's .._ , PSS Instruction yarua:, and ct`e: PSS er.aterials, conduct a ce-.r:e- hensive 2-day progran on Prc.°ee- sional Selling Skills. The prograr is designed to be c=..- duc:ed on a 1-on-: basis bu: car. be adr..inistered to as r..a::y as 3 participants at cne t:^e.= Ccnsu'_t your PSS Instructicn Nanual for details and guice- lines for ad:^inisterir.g t`.e prcgra-.n. 1+~Eh 6 - .. ~_: «': 8 Hrs. o PROFESSIONAL SE:.LINC SK::.'_S Prog: a-.. liEr't: 8 - "EC ;rcDA': , F:5. J SR k/*,~ ?ra:ne:. c L:ScusS W:t'. t~~e SF.. wee;< - Sign-o.°: c'_-_ec:_:eE c Trp:-,ez ;.e-:c:-.s !:cr: st-essinE tne :c__ct•_. =-om PSS: Need Sa:_F:E;:_... Se:._-. - Prc~ir.: - Su;,rc-.:n: - r.ar.c__n: _.:stcrer .;:... _.- - Accep:t.r.;e - S::er:_._s-. - :nc:.:ererce - . ' "r. . _ . lR 0 00 ~ v+ w N
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W-ZE< 8 - ':??'RSuAY S I:rs. o SR Lcrks a:cr.e. ~..:ss c SR :/a aad Gi'l: '-ai-:e: o . . Ta:r.e: per.::--s ;, 'hursday's ca::s y ^ ScI•,ency che_j; a-c a: Ze:c:.. _ . ---- ; Zev=ccr che :!_:'s ..• :c: s:o--cs: c- s=_- es. - N:r-.+r: :. yoL _c ;* 2_ . Ia 0: ~: w C3 ~l~~Sn e.- =aa Work =::-e. :.;2:eC e - Ko? Xcndreso'.~t-r: e I ~ ~ W W
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MONDAY (classroom) ~ o IMS Training program o Ass i Rned Rear1 i n1;/ Study - IMS Workbook - crlr~_ - - o Calls on problem/ opportunity account o Gather information to Crerarc•_I-MS present at ion o Prerare_frPSentation TUESDAY o W/W by Trainer o 1MS Cresentation to account hy SR ,,f i WF.EKLY PLANNING SHF.F.T - WF.F.K 9 WFDNF.SDAY THURSDAY o W/W by Trainer o SR works alone o Implement commitments madr• - - o SR and Trainer complete Sign-Off Sheet for Week I/9 TG-65 I il I FRIDAY o SR works alone 't"E9l r91r05'
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WF.F:KLY S I GN-OFF SHEET - WEEK 9 fly placing thc•ir iuitiats in the appropriate columns, hoth the Sales Representative and the Trainer acknowledge that this wi-rk's objectives have been achieved. If sign-off cannot be given for one or more objectives, the Trainer and SR wi (1 d<•ve•loll a Irl,in to he• incorporated into next week's activities. i At the completion of this week's training, the SR: SR TR 1. Demonstrates ability to use the Seven Steps of IMS 2. Demonstrates ability to use the Call Analyzation Tool to gather information for an IMS presentation 3. Demonstrates ability to compute profitability analyses 4. Demonstrates ability to use the CMM in preparing an iMS presentation 4. Can prepare and give an IMS presenta- tion to a retail account with Trainer guidance 6. Can implement an IMS plan with Trainer guidance 7. Demonstrates continued mastery of skills and knowledge gained in Weeks //1 through 8 TG-66 SE9 ! rB*oS
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WEEi: 9 - "C•;DrY Sr^. ACT:I'iT'. E..-s. c I`:S Tra:r.:r.g Progra-. ;'s:rg :he C`'•., I`:S Tra:rer's Ma^ua=, ard IkS ;.:crkaockcc-- , . Cuct t=e cae-ca•. IXS Prcgra-. This progra= a:so is des:g-.E„ to be ccnducted cr a basis, but car be ac-.i-is:e:ec to as L:af.y as 3 ;art4cipa':t5 2: one tine. Ccnsu.t your I`!S :rainer's !!ar.ua: fcr deta:_s ard guice'-ir.es fer ad-._..:s:er- i^g the prcgra-. c T ime is a:d ocatec in the ?. ~:. .~ call or. a prob:ec,'cppcr.,r. - accour: to: - i;se the Ca'.= Ar.a:.•Zat- ;- .:-- _ to ga:'er -..fcr-atic-: - Prepare a preser.:at:cr - `.'cL s*,-Icu:c taKe car e _.7 se?ec:.r.g or ca'__ vhe-e .-.e 5:. L:.: have a gocc cha-:ce .c arc ir.;;er.er.:_rz : _:. her .vS rcEra:-.. l•EEi: y - .._::-. .. .:rs. .. SR o Cor,.p;ete presentr,:.c:: r.ct cor..Yletcc or. `erce' i a::d revie%._ _tn the Tra:ner. . C XcKES ?YS P:cse. .".c•. ._ .'~ to the se:ec:ee e;cou^.t. `= ...3r!es rE..-_. ca___ rer.a:ncEr c.` da•:. beer . -=. =rea, _-e:- ,-.e =... ar.c re:^ccs t ;e S= :I; - „Cc- . . accur2c.. rEhe.::_~ . .r ;re:e-.a:_... _. Vcu . _ . : . . 3 s -; . _-,2 :e -.,... . . , . Z C :l . j . = i - : z
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WEEK 9 - TLESDAY T:aE SR aC;:%'I i' TRA:\!K'S DIREC:'IO\S/::J'.=S o Critique presentat:oz and use zf PSS and I`1S skills: - Benefits clearlv s:a_ed^ • Objections over::me" - Attitudes handled? - Closing smootn" • Commitment gained^ oW/W remainder of the day wEEr 9 - UIDN:.S^;5' 88 o SR Wl!: Trainer o Explain the dar's ac:::•i::es. o Implementation of comn:::nents made during yesterdav's presentaticn. They P.+:gnt inc:_ie: - Installing carton me:c::a::c:se:s - Installing pacicage merchandisers - Remerchandisi:g cu::en: fixturing • IZcreasing R:'R :on::ac: space, etc. o Even though part-::me :e:p -;3;: usually install :n this case the SP, shou?d ;:.-o:e:e the installations to :ec:me~ familiar r•ith the en:::e :::5 procedure. o At the end of the day, cor.~_=: a Question and ;ns::er Session. o Complete Sign-Off Sheet for '-ee:c !t9 . ;~iEK 9 6 eirs. o SR wo:ics alone. I TG-o3
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i WF,F,K1,Y PLANN 1 NG SIIFF.T - WEF.K 10 MONDAY (classroom, A.M. TUESUAY only) o VF.NT)ING Module o SR works alone, or W/W by Trainer, o Assigned reading concentratinR on - Trn Check vending, if necessary o In afternoon, ca 1 I on vendi np acconnts o Inform SR of F:xam 112 ort Mon~lay © WF:I)NESI)AY o SR works alone TG-hc/ IV 1 THURSDAY --- - - -F.R I f)AY o SR works alone o Trainer conducts A/A with SR - o SR and Tra i ner comhlete Sign-Off Sheet for Week II10 8E91 ZOOS
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Wf:F.Kf.Y SIGN-OFF SHEET - WEEK 10 By pl.+cing thc•ir initials in the appropriate columns, both the Sales Representative and the Trainer acknowledge that this week's ubje•ctive•s havc• been achieved. If siKn-off canrrot be given for one or more objectives, the Trainer and SR will develop a plan to be incorporatecf into nj•~t week's activities. At the completion of this week's training, the SR: SR TR SR TR 1. Can define and describe vending and 7. Understands the purpose and procedure its importance to RJR sales for an Assignment Analysis 2. Can describe and distinguish between 8. Demonstrates continued mastery of an independent vendor and a vending skills and knowledge gained in company Weeks //1 through 9 3. Can describe the six accountabilities in relation to vending 4. Can define and describe: A. Dead column selling B. Category selling C. Brand allowance selling 5. Can perform the Six Steps of Systematic Selling for an independent vendor account with Trainer guidance 6. Can recognize opportunities to increase vending sales TG-70 f 6E91: zB-bos I I ' I
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WEEK 10 - MONDAY TIME SR ACTIVITY k Hr. 2 Hrs. View VENDING Module. A. Overview o Definition o Importance to RJR o Trends/Demographics o Types of Vending Companies o Vending Accountabilities - Product Availability - Merchandising - Display/Advertising - Assignment Coverage - Administration/Communi- cation - Selling/Presentation Skills B. Six Steps of Systematic Selling o Review Steps in Relation to Vending o Example with Independent Vendor (PROGRAM STOP) TG-)1 TRAINER'S DIRECTIONS/NOTES o Discuss with the SR: - Activities for the week - Sign-off objectives o W/W remainder of the day calling on independent vendors. o The balance of the program should be given only to SRs who will dea- with vending companies as part of their assignment or to any SR who is acquiring vending company accountabilities for the first time.
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WEEK 10 - MONDAY 1 1/2 C. Precall Research Hrs. o Benefits o Source Materials o Selling Approaches o Considerations for Planning Sales Call o Includes First 3 Selling Steps - Get to the Product - Rotate & Merchandise Product - Determine Distribution and_ Inve_n_t_ory ueed; o Organize and Sell -- Making the Presentation - Dead Column Selling - Category Selling - Allowance Selling (PROGRAM STOP) o Display/Advertise - POS/PDI Materials - Objectives o Complete appropriate Reports and Forms - Tru-Check Contract - Tru-Check Placement Payment Report o Learn Pay Register procedure of payment for vendors. (PROGRAM STOP) o Review Tru-Check Manual with SR. o W/W remainder of the day calling on vending company accounts. o Remind SR that Exam 1E2 will be given Monday of Week #11. I TC-72
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WEEK 10 - TUESDAY-THURSDAY TIME SR ACTIVITY TRAIh'ER'S DIRECTIONS/NOTES 8 Hrs. o SR works alone, or W/W o Trainer W/W optional. Trainer if additional time on vending is necessary. WEEK 10 - FRIDAY 8 Hrs. o SR accompanies the Trainer o Explain the day's activities: on an Assignment Analysis - Assignment Analysis performed with SR - Review of week's work and completion of Sign-Off Sheet = o During the day's A/A, explain the procedures followed. You should make a minimum of 25 calls and call on a good cross-section of accounts in the assignment. o At the end of the day, allow time for discussion of any problems encountered. The SR should have clarification of any issues which may effect his/her performance on t-he Exam. o Complete Sign-Off Sheet for Week 610. ~ a m TG-73 f N m f N
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TG-74
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I I WI•:I•:KI.Y I'I.,..+N I N(: tillt•:1•_'1 _ WI•:1•_{. I I MtNIrAY (clnssr""m, A.M. onty) •I'ttl•:SDAY „ Slt takes Fxam A'Z o I'URtilll•I' tlF I•:Xt'I-j.I.f'.NCP. Modulc ~~ Mi1_itar~/tite cial Matketti, il ap1'I icahlc i, krm,t i nilcr „f day, caI1 Vit Militaty/ til,eci:il niarkets, if :tpplicahlc " SR work s aI utie WFIrNI•al)AY u tiR works alone a Trnincr iclent if ics pr(lhtem/orput tnnity aiwi< <Inrinl, W/W o Snlvency check n SR and Tt aincr cnmpIetc Sign-(Iff tihcet for Wec•k /lll :nnd G).f -- - m rchcnti i ve _ --- ---- ti1'I:I' ': i~n-ttt f til~cet P '1't:- 7 5 I I 'I•IIIIRtiI)AY I'R I ItAY n SR work saIone o T rai nc i T/A w i t h SR nn 'I'hIlle.day u:iII!, o SR rmd Trainer t vv i vw I•;x:tm 02 frfi 9 l z8b 0S
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WI.1•:k 1.1• ti I I:N -//1 i•'J/1•a~ f WI 1 ti I 1 Ity 10 1 .11 lu/; IIu•/1 /uI I 1./1:. /n 11u• .1I1I.lulll /.i1v eo.Iu4MU:., 10..1I1 Ilu• ti.1 l4•ti Iti•I./e r.~n1.e1/ve' .u1e1 II1.• 'I•r.l.no1.14 Lu.•a•I4••I/;4' 111.11 I I11 :. I~rrk' :. ..h 1.-4 1 a v4•:. h.eve• Iidv n.14 It 1 e•ve•.I . I 1 :. I l;is -u l I 4 .UUU,I I.r 1;1 ve•11 /i•/ 0,n.• ..1 IINai r e6l61.-e 1 1 ve•`. , 1 1u• *I /.e I lle•/ .1lul :ilt wlll .1rve•I..I1 .0 111.641 14. I.r lu.urloi.r./le•41 Inlu nt •Al wcrk':, .1.11v/1 AI Ihr 4 umlile•11t.n ul this wrrk's ll.einin/;, Ihc• Slt: SR 1'It 1. I/u~le Isl.lluls r./I1 Ioruc.-elun•s Ior /el I/ l Jry Jn~/ sIore-i.l ( ae'ceiuul s ( 1/ J1111 I 1 r./I0 I I• ) l. Ih•Il/oosl 1.11 e•s l Ilc ./hi I il y to /me•ove•r (lrublrulN :Ind fiIbpurlunilie•s in rerlaiI .11141 4111 e•r1 J~ e uunl ~ wi t huul Tra i nrr 1,14 1 tI.1,14-4. 1. 11.0% do•we.nsl rJlr.l, lllroelgh sJl. islJrtury Jr111e•ve•Ille•nl fal F:xJw N•l, Iwnslrry ul IIIe• sk1lls :Inll knnwle•dl;l• g.Illlrol in Wre•ks //1 tllruul;h 11. 4. 11.1s tI/•NIU/1s11J1e•oI, thrnlll;h .al isl./e•lury 11.1'f Ilrl ItoIw.em e•, llu- Jhi I I l y to aakr rl /e•t1 Ive• /IopI le./l iun ul skl l ls :ImI k/l.swI r.IKI• I;./1 ued1 1 u Weeks N 1 t I/1 e.ul;h I I. 'I'1; - 7ts . sfis 1 rstos I I
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WEE'r. 11 - XC..un`.. 2 H: s. Examinaticn lt2. 1 1,'2 Assigned Feac:ng/Stucy (if Yrs. applicable) Military Manual SR. .;CT:Q::' Tn.=:"=n'S L:e.:.CT:GNSAG--- o :rz.-er g_:es SR cver• _e: . NeeK •.: ac:_ _ties anc sig.^.-o.f cD:ec:_':es (::_-. Plan-,irc Shee:). o Be certa:.n the S= unie:s:s-._= all he/she r..ust 2c c:.._^t t:.e exat;inaticn. Ex;,:a:... - Types of cues:_..r.s - '.°:ateria:s needed - Time : r a-.e - Review prccess 10 `:ins. o View Pursuit ei Exce:ie:,ce ^oCule D V o SR W/L Trainer, ca=::r.5 on Military/Special Markets, if appl:cac:e. o :: the SR r.as accountac::ities, re•::e:: the Military !!an,:a: an,. O-s_:r Guidelines. o If the SR is not being t:z:-.c= for special acccLnts, -:cr-.a: C:: in h:siher assigr.r.ent can :ei.-t ncti: fcr t:.c rec.a:n:e: .- :.._ =- WEEf: 11 - TL LS.r.Y-iHL'RSD?`.' 6 Hrs. o SR works alone.
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wT-EK 11 - FRIiAT SR .. iRAI\"ER'S .r.:F`CT::NS, \ :. - . --- 3 ..:s. 0 SR ;~;~•' Trainer. 0 =xplain, the day's a--: :es~ - Conduct T/A ::it:, SPP on~ Thursda.•'s ca::s. Cr.d:. good perfcrmance and con. s:r,jc:ivel}• cr:t•:•ze are.i!t needing improremen: ouri;,g T/A. - SR and Trainer rev:e,.- Exam =+:. • Solvency Che:k • Comp:ete S;;,•t f.,lr t•teic =j11. o Compiecr Cortcpr::;:cs:•:e Sheet. - • Original of Compreae^sive ar.d copy ma::ed to F.eg=o na: ;,f•-ce au± Sales Area . ra: n:::g :, ~evelCs'lent %a'la2er. C Tr31 :e: opportunitc are:s and pro:ides :zs:ruc:.o-s ;o: the com:;tg wel;:s. 0 ~ m N TG-i$ ~ O1 ~ !
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ZRACKING EXERCISE *1 Name Date CALIS GET TO 1 2 3 4 6 6 7 8 9 10 11 12 THE PRODUCT ROTATE AND 1 2 3 4 5 6 7 8 9 10 11 12 MERCHUtNDISE PRODUCT i DETERMINE 1 2 3 4 5 6 7 8 9 10 11 12 DISTRIBUTION AND INVENTORY NEEDS L ORGAhI2E 1 2 3 4 5 6 7 8 9 W11 12 i AND SEII DISPLAY 1 ? 3 4 5 6 7 B 9 10 11 1? and ADVERTISE I COMPLETE 1 2 3 4 5 6 7 8 9 10 11 12 REPORTING FUNCTION t
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TRACKING EXERCISE 02 Ma.• Dit• GET 10 THE PRODUCT ROTATE AND hERCwuiDISE PRODUCT DETERMINE DISTRIBUTION AND INVENTORY MEEDS • GREET THE STORE MANAGER • MAKE REQUEST TO CHECK PRODUCT • RECORD: MAnAGER'S NAME; ORDER CLERK; ORDER DATE i DELIVERY DATE ON M S L • CLEAN/LOAD PERw1NENT PACKAGE DISPLAY1 • ROTATE STOCK • REMOVE OUTDATED PRODUCT • CHECK RJR LABELING ON CARTON MDSER. • FACE UP PRODUCT ON CARTON MOSER. • CHECK RJR LABELING ON PKG.MOSER/S • LOAD PACKAGE MERCMAHDISER/s • DETERMINE INVENTORY BY BRAND • NOTE LOW INVErTORY LEVELS • NOTE 0.0.S./VOIDS CA_LLS 4 5 6 7_ 8_ 9 10 11 12 @ 2 6 7 8 9 10 11 12 6 10 11 ~ - [EEEEEaii)ii OR G1W I Zf 1 2 3 4 S 6 7 8 9 10 11 12 AND i ~ I-T-1 -T- l- T-1-T - T I SELL , DISPLAY 1 2 3 4 S 6 7 8 9 10 11 12 •nC ADVERTISE CAMPLETE 1 2 3 4 5 6 7 8 9 10 11 12 REPORTING F1JtiCTION w 0 ~ ae `
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TRACKING EXERCISE 02 ha• Da t• GET TO THE PRODUCT ROTATE AND MERCHAtrDISE PRODUCT DETERMINE DISTRIBUTIOM AHO INVENTORY KEEDS DISPLAY anC ADVERTISE COMPLETE REPORTING FUNCTION • GREET THE STORE MANAGER • MAKE REQUEST TO CHECK PRODUCT • RECORD: MAHAGER'S NAME; ORDER CLERK; ORDER DATE a DELIVERY DATE ON M S L • ROTATE STOCK • REMOVE OUTDATED PRODUCT • CHECK RJR LABELING ON CARTON MDSER, • FACE UP PRODUCT ON CARTON MDSER. • CHECK RJR LABELING ON PKG.MDSER/S • LOAD PACKAGE MERCHANDISER/s • CLEAN/LOAD PERnAxENT PACKAGE DISPLAYi • DETERMINE INVENTORY BY BRAND • NOTE LOw INVENTORY LEVELS • NOTE O.Q.S./VOIDS C A L L S 1 2 3 4 S_ 6 7 8 9 10 11 1? 1 2 3 4 S 6 7 8 9 10 11 12 I 1 2 3 4_ 5 6 7 8 9 10 11 12 1 2 3 4 S 6 7 8 9 10 11 12 1 2 3 4. 6 6 7 8 9 10 11 12 1 2 3 4 S 6 7 8 9 10 11 12
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TRACKING EXERCISE K3 Nam• Oat• GET TO TME PRODUCT ROTATE AND MERCMANOISE PRODUCT 6. DETERMINE DISTRIBUTION AND INVENTORY NEEDS ORGANIZE AND SELL = DISPLAY AND ADVERTISE COMPLETE APDROPRIATE REPORTS AND I FORMS • GREET THE STORE MANAGER • MAKE REQUEST TO CHECK PRODUCT • RECORD: MANAGER'S NAME; ORDER CLERK; ORDER OATE & DELIVERY DATE ON M S L • ROTATE STOCK • REMOVE OUTDATED PRODUCT • CHECK RJR LABELING ON CARTON MOSER. • FACE UP PRODUCT ON CARTON MOSER. • CHECK RJR LABELING ON PKG.MOSER/S • LOAD PACKAGE MERCMANDISER/s • CLEAN/LOAD PER'SANENT PACKAGE DISPLAY4 • DETERMINE INVENTORY BY BRAND • NOTE LOW INVENTORY LEVELS • NOTE O.O.S./YOIDS • REVIEW INVENTORY, LIST CALL OBJECTIVES • MAKE SELLING PRESEN-,ATION • ONE TRIP TO THE CAR • COMPLETE SELLING TRANSACTION • CASH • EXCHANGE • ORDER BOOK • PRE-BOOK • BILL THRU • t L Y • 1 CARTON • 20 PA GIC • 30 PACK • 3-1 CARTON • B1G1F • PLACE ADVERTISING • PAPER • DECAL • METAL SIGN • POI ' COMPLETE REPORTING FUNCTION ' COMPLETE NECESSARY CORRESPONDENCE TO DIVISION OFFICE • NOTE CHANGES ON MASTER LIST C_ALLS ? 3 4 S 3 6 1 2 3 4 S 6 7 8 9 10 11 1? 2 - - I I I I -r-i H 2 3 4 5 6 1 8 9 10 11 12-_ 1 1 . 2 1 . 8 9 10 11 12 k . r 4 5 __6_ 7 8 9 10 11 12 L~ I 4 ~ Ln ~
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TRACKING EXERCISE #3 Na.e Date GET TO THE PRODUCT ROTATE AJID MERCHANDISE PRODUCT DETERMINE DISTRIBUTION AND INVENTORY NEEDS ORGANIZE AND SELL DISPLAY AND ADVERTISE COMPLETE APPROPRIATE REPORTS AND FORMS • GREET THE STORE MANAGER • MAKE REQUEST 10 CHECK PRODUCT • RECORD: MANAGERIS NAME; ORDER CLERK; ORDER DATE t DELIVERY DATE ON M 5 L • CLEAN/lOAD PER`UINENT PACKAGE DISPLAYq --, • ROTATE STOCK • REMOVE OUTDATED PRODUCT • CHECK RJR LABELING ON CARTON MOSER. • FACE UP PRODUCT ON CARTON MDSER. • CHECK RJR LABELING ON PKG.MDSER/S • LOAD PACKAGE MERCHANDISER/s . • DETERMINE INVENTORY BY BRAND • NOTE LOW INVENTORY LEVELS • NOTE 0.0.5./VOIDS I • REVIEw INVENTORY, LIST CALL OBJECTIVES • MAKE SELLING PRESENTATION • ONE TRIP TO THE CAR • COMPLETE SELLING TRANSACTION • CASH • EXCHANGE • ORDER BOOK • PRE•BOOK • BILL THRU i-5l lar • 1 CARTON • 20 PACx • 30 PACK • 3•1 CARTON • B1G1F • PLACE ADVERTISING • PAPER • DECAL • METAL SIGN • PDJ ' COMPLETE REPORTING FUNCTION ~ COMPLETE NECESSARY CORRESPONDENCE TO DIVISION OFFICE • NOTE CHANGES ON MASTER LIST CA LS 3 4 S 6 7 8 9 10 11 12 1 2 3 4 S 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 101112 4 p i .6 1 2 3 4 6 6 7 8 9 10 11 12 I. . I 4 i I 1 2 3 4 5 6 7 B 9 10 11 12 I
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TRACKING EXERCISE #3 Mtme Oat• C ALIS GET TO 1 2 3 4 5 6 7 8 9 10 11 12 THE • GREET THE STORE PtANAGER • MAKE REpUEST TO CHECK PRODUCT PaDDUCT • RECORD: MAt+AGER'S rAME; ORDER CLERK; ORDER DATE i DELIVERY DATE ON M 5 L ROTATE AND 1 2 3 4 5 6 7 8 9 10 11 12 MERCHAAOISE • ROTATE STOCK • REHOVE OUTDATED PRODUCT PRODUCT • CHECK RJR LABELING ON CARTON MOSER, • FACE UP PRODUCT ON CARTON MOSER. • CHECK RJR LABELING ON PKG.MDSER/S • LOAD PACKAGE MERCHAhO1SER/s ~ • CLEAN/LOAD PER.'SAt1ENT PACKAGE OISPLAY~ DETERrINE 1 2 3 4 S 6 7 8 9 10 11 12 DISTRIBUTION • OETERHINE INVENTORY BY BRAND . r-- ~-- ~ AHO INVENTORY • NOTE LOW INVENTORY LEVELS r ~ S lVOIDS NOTE O O . NEEDS . . . • . 1 2 3 4 S 6 7 8 9 10 11 12 ~ • REVIEW INVENTORY, LIST CALL OBJECTIVES . . - r ~ ORGA!i: ZE • MAKE SELLING PRESENTATION AND • ONE TRIP TO THE CAR • COMPLETE SELLING TRANSACTION SELL • CASH . • EXCHANGE ~ • ORDER BOOK • PRE-BOOK • BILL THRU t 6 8 9 10 11 12 • t L r • 1 CARTON OISPlJ1Y -AND ADiERTISE CJ!'PLETE APOROPRIATE ~ REPORTS AND 111 FORnS •20PACK • 30 PACK • 3-1 CARTON • B1G1F • PLACE AJVERTISING • PAPER • DECAL • METAL SIGN • PDI ' COMPLETE REPORTING FL'NCTION ' COMPLETE NECESSARY CORRESPONDENCE TO DIVISION OFFICE • NOTE CHA..NGES ON MASTER LIST 17 1 2 3 4 S 6 7 8 9 10 11 12 ~ I ~ 1 ~ . /
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tRACKING EXERCISE *3 N•me Date GET TO THE -RADUCT ROTATE AND MERCHAHDISE PRODUCT • GREET THE STORE MANAGER • MAKE REQUEST TO CHECK PRODUCT • RECORD: MAJUGER'S NAME; ORDER CLERK; ORDER OATE i DELIVERY DATE ON M S L • CLEAN/LOAD PERKANENT PACKAGE DISPLAY1 • ROTATE STOCK • REMOVE OUTDATED PRODUCT • CHECK RJR LABELING ON CARTON MDSER, • FACE UP PRODUCT ON CARTON MDSER. • CHECK RJR LABELING ON PKG.MDSER/S • LOAD PACKAGE MERCHANDISER/s C A L L S 1 2 3 4 S. 6 7 8 9 10 11 12 DETERMINE 1 2 3 4 S 6 7 8 9 DISTRIBUTION • DETERMINE INVENTORY BY BRAND I 7 [ AND INVENTORY • NOTE LOM INVENTORY LEVELS NEEDS • NOTE 0.0.5./VOIDS 1 2 3 4 S 6 78 9 • REVIEW INVENTORY, LIST CALL OBJECTIVES .- ORGANIZE • MAKE SELLING PRESEN7ATION • ONE TRIP TO THE CAR AND • COMPLETE SELLING TRANSACTION SELI • CASH • EXCHANGE • ORDER BOOK • PRE-BDOK • BILL THRU i DISPLAY AND ADVERTISE COMPLETE APPROPRIATE REPORTS AND FORMS • SET L Y • 1 CARTON • 20 PACx •30PACK • 3-1 CARTON • B1G1F • PLACE ADVERTISING • PAPER • DECAL • METAL SIGN • PDi ' COMPLETE REPORTING FUNCTION ' COMPLETE NECESSARY CORRESPONDENCE TO DIVISION OFFICE • NOTE CHANGES ON MASTER LIST T 1011 12 1 2 3 4 S 6 7 8 9 10 11 12 1 2 3 4 S 6 7 8 9 10 11 12 i a ^ u, w N ~. A cn
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TRACKING EXERCISE #3 Name Date GET TO THE PRODUCT l ROTATE AND NERCMANDISE PRODUCT DETERMINE OISTRIBUTION AkD INVENTORr NEEDS ORGANIZE AND SELL - D/SPLAT AND AOVERTISE CG"PLETE APPROPRIA-E I REPORTS AND FORHS • GREET THE STORE MANAGER a MAKE REQUEST TO CHECK PRODUCT • RECORD: MAMAGER'S NAME; ORDER CLERK; ORDER DATE i DELIVERY DATE ON M S!l • ROTATE STOCK • REHOVE OUTDATED PRODUCT • CKECK RJR LABELING ON CARTON MOSER. • FACE UP PRODUCT ON CARTON MOSER. • CHECK RJR LABELING ON PKG.MCSER/S • LOAD PACKAGE MERCMAnDISER/s • CLEAN/LOAD PERMAHENT PACKAGE DISPLAT~ • DETERMINE INVENTORY BY BRAND • NOTE LOW INVENTORY LEVELS • NOTE 0.0.5./VOIOS • REVIEW INVENTORY, LIST CALL OBJECTIVES • MAKE SELLING PRESEN;ATION • ONE TRIP TO THE CAR • COMPLETE SELLING TRANSACTION • CASH • EXCHANGE • ORDER BOOK • PRE-BOOK • BILL TMRU • t L r • 1 CARTON • 20 PA CK •30PACK • 3-1 CARTON • B1G1F • PLACE ADVERTISING • PAPER • DECAL • METAL SIGN • PDI ' COMPLETE REPORTING FUNCTIOV ~ COMPLETE NECESSARY CORRESPONDENCE TO DIVISION OFFICE ~ NOTE CHANGES ON MASTER LIST C A L l S 1 2_3 _ 4 S 6 7 8 9 10 11 12 1 2 3 4 S 6 7 8 9 10 11 12 i . 0. . 1 4 1 I 1 2 3 4 S 6 7 8 910111Z I 2 3 1 1 1 0 11 1; 4 5 6 7 8 9 10 11 12 T -9 r ~ ~
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tRACK1NG EXERCISE #w Nam• Dat• 6ET TO THE PRODUCT ROTATE AJ1D MERCHANDISE PRODUCT . DETERMINE DISTRIBUTION AND INVEMTORY NFEDS ORGANIZE AND SELL DISPLAY MD ADVERTISE COMPLETE APPROPRIATE REPORTS AND FORMS CONTRACTS • GREET THE STORE MANAGER • MAKE REQUEST TO CHECK PRODUCT • RECORD: MANAGER'S NAME; ORDER CLERK; ORDER DATE & DELIVERY DATE ON 14151L • ROTATE STOCK • REMOVE OUTDATED PRODUCT • CHECK RJR LABELING ON CARTON MOSER. • FACE UP PRODUCT ON CARTON MDSER. • CHECK RJR LABELING ON PKG.MDSER/S • LOAD PACKAGE MERGtANDISER/s • CLEAN/LOAD PERMANENT PACKAGE DISPLAY • DETERMINE INVENTORY BY BRAND • NOTE LOu INVENTORY LEVELS • NOTE O.O.S./VOIDS . • REVIEW INVENTORY, LIST CALL OBJECTIVES • MAKE SELLING PRESENTATION • ONE TRIP TO THE CAR • COMPLETE SELLING TRA,YSACTION • CASH • ExCnAt+GE • ORDER BOOK • PRE-BOOK • BILL THRU • j L • 1 GIRTON • 20 PA:K • 30 PACK • 3-1 CARTON • B1G1F • PLACE ADVERTISING • PAPER • DECAL • METAL SIGN • PDI ' COMPLETE REPORTING FUNCTION ' COMPLETE NECESSARY CORRESPONDENCE TO DIVISION OFFICE • NOTE CHANGES ON MASTER LIST 9 CARTON OR PACKAGE • TYPE OF MERCHANDISER(S) • PLAN NAME • RJR MONTHLY PAYMENT 2 3 C A_ L_ L S 4 S 6 8 9 10 11 12 1 2 3 4 S 6_ 7 8 9 10 11 12 y . 1 2 3 4 S 6 7 8 9 10 11 12 2 3 4 5 6 7~ 9 1011 12 4 S 9 9 10 11 12 1 2 3 4 S 6 7 8 9 10 11 12 I i 1 2 3 4 5 6 7 8 9 10 11 1: f I ! I ~ I
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TRACKING EXERCISE #3 Nan• 0ate GET TO THE PRODUCT ROTATE AND MERCHAADISE PRODUCT DETERMINE DISTRIBUTION AND INVENTORY NEEDS 1 ORGANIZE AND SEIL -DISPLAY AND ADVERTISE CO!!PLETE APRROPRIATE REPORTS AND FORMS • GREET THE STORE MJINAGER • MAKE REQUEST TO CHECK PRODUCT • RECORD: MANAGER'S NAHE; ORDER CLERK; ORDER DATE a DELIVERY DATE ON M S L • ROTATE STOCK • REMOVE OUTDATED PRODUCT • CHECK RJR LABELING ON CARTON MOSER. • FACE UP PRODUCT ON CARTON MOSER. • CHECK RJR LABELING ON PKG.MDSER/S • LOAD PACKAGE MERCHANDISER/s • CLEAN/LOAD PER'1AtiENT PACKAGE DISPLAY~ • DETERMINE INVENTORY BY BRAND • NOTE LOW INVENTORY LEVELS • NOTE O.O.S./VOIDS • REVIEW INVENTORY, LIST CALL OBJECTIVES • MAKE SELLING PRESENTATION • ONE TRIP TO THE CAR • COMPLETE SELLING TRANSACTION • CASH • EXCHANGE • ORDER BOOK • PRE-BOOK • BILL THRU • t L r • 1 CARTON •20PACK • 30 PA C K • 3-1 CARTON • B1G1F • PLACE ADVERTISING • PAPER • DECAL • METAL SIGN • PDI ' COMPLETE REPORTING FUNCTION ' COMPLETE NECESSARY CORRESPONDENCE TO DIVISION OFFICE • NOTE CHANGES ON MASTER LIST . CALLS 1 2 3 4 5 6 7 8 9 10 11 12 i . , 3 4 1 8 9 10 11 12 2 3 4 5 6 7 8 9 10 11 1? H~d 4 5 6 7 8 9 10 11 12 ~ 0 c ~ ).~
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PSS III TRACKI?:G EXERCISE NAME CALL DATE PRESEKThTIOti ON CrS TOXI ~.R RESPONSE OFF'F.TC'NIT1' KFr-r, TRACKING/ NOTES SALES PSS III SKILLS 0?E`:_!:CC THE C::L Probe GBS Purpose Stateme:t Ac3S^ow:e:.5e Need Ir•trocLCe Be^er:t Prc.'-.e Proof A!? crPc !n: .•r .v Prot,e Suppcrt HANDLE LP..-.VP -.C}' List Accerted Benefits Probe ~ S rize Ber.ef.ts Reouire Cornnitmer•t TRF,CYI::lZ/ NOTES
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TRACKING EXERCISE #y Mam• Oat• GET TO THE PRDOUCT ROTATE AlID MERCwtNDISE PRDDUCT .. DETERrtINE OISTRIBUIION AHD INVENTORY MEE05 ORGf.NItE AND SELL DISPLAY ASD ADVERTIS E C0"PLETE APPROPRIATE REPORTS AND fGRMS COnTa,ACTS • GREET THE STORE MANAGER • MAKE REQUEST TO CHECK PRODUCT • RECORD: MANAGER'S NAME; ORDER CLERK; ORDER DAT i DELIVERY DATE ON M S L • ROTATE STOCK • REMOVE OUTDATED PRODUCT • CHECK RJR LABELING ON CARTON MOSER. • FACE UP PRODUCT 0N CARTON MOSER. • CHECK RJR LABELING ON PKG.MDSER/S • LOAD PACKAGE MERCHANDISER/s • CLEAN/LOAD PERMAMENT PACKAGE OISPLAY . • DETERMINE INVENIORY BY BRAND • NOTE LOW INVENTORY LEVELS • NOTE O.O.S./VO1DS • REVIEW INVENTORY, LIST CALL OBJECTIVES s MAKE SELLING PRESENTATION • ONE TRIP TO THE CAR • COMPLETE SELLING 7RAVSACTION • CASH • EzCrW+GE • ORDER BOOK • PRE-BOOK • BILL THRU , • DISPLAYS 1 CARTON • 20 PACK • 30 PACK • 3-1 CARTON • B1G1F • PLACE ADVERTISING • PAPER s DECAL • METAL SIGN • PDI ' COMPLETE REPORTING FUNCTION ~ COMPLETE NECESSARY CORRESPONDENCE TO DIVISION OFFICE • NOTE CHANGES ON MASTER LIST t CARTON OR PACKAGE • TYPE OF MERCMANDISER(,S} • PLAN NrLyE • RJR MONTHLY PAYMENT 1 2 i CA_llS 3 4 S 67 8__9 10 11 12 3 4 S 6_7 8 9 10 11 12 1 L __ l__, 1  , 2 3 4 S 6 7 6 9101112 1 2 3 4 5 6 7 8 9"_10 11 12 - ~ 1 2 3 4 S 6 7 9 9 10 11 12 ~ 1 2 3 4 S 6 7_e__9 10 11 12 r ~ ! , i , 3 4 B 10 11 1 2 I I I I I - cn ~ m 0 N ~ rn un \0
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PSS III TRACKII:G EXERCISE N A-"'E CALL DATE PRESENTATION ON CUSTOMER SALES RFrFESEN7ATI1'E RESPONSE OFPORTL'r:ITY NEED TRACKING/ NOTES rThF:C}:::: FSS III SKILLS NOTES OPEi:ING THE CALL Probe GBS Purpose Steteme:,t St'PPOH T A +ieCQe Neee Introduce Be^efit Hr":D` E I`:^SFFEFr••CE Probe 3::.`.;D_,E S}'EF:ICIS.'•: Proof HANDLE Probe Suppcrt HANDLE DRAh'PACK List Accepted Benefits Probe CLOSI%G S rize Benefits Require Commitment «
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PSS III TRACKING EXERCISE I:X.*:E CALL DATE PRESENTATION ON CL'STC'..---R SALES Pf 7.=FESE'•':F,^.':•.'E ( TR.i,CKIi`G/ RESPONSE IhOTES OF PCF.Tt.':: Ty KE'=D PSS III SKILLS OPEN_NG THE CALL Probe GBS Purpose Stater.e:.t St': PCI-;' Ack-:o4, lecge Need Intrcduce Benefit i:;~.':rLE IN"`IrFEPE':CE Probe Proof 'r!A`:DT E Probe Support HANDLE DRF.1r.'BACK List Accerted Benefits Probe CLCS_NG Summarize Benefits Reauire Cammitmer.t TRF.CKI;:;! NOTES
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PSS III TFtACYi1:G EXERCISE AA.k"E CALL DhTE Fk: SEN TA TIO1: GI: SALES PrTF'S.--.''::.Tr TRACr:.`;G Rrcp~)Ncr KOT£S Or'FGF.TL'`:ITY rEr~ P« III SKI . c `TF..1 CF' L OPE'::":: THr Cr'_~ Probe GPS Purpose State^e::t SL'i-POF'': Ack.^.c%•:;ecce Aee2 Ir.troc-ice Ber.ef.-t Probe Proof }iAN^' T Probe Suppcrt HANDL£ DKWEACt' List AcceFtec be^e`_its Probe C'_QFIKG Surnrr,ar.ze Benefits Require Cor.,n:tr,er.t t
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CAREER OPPORTUNITY CHART SALES REPRESENTATIVE AREA SALES REPRESENTATIVE VENDING SALES MERCHANDISING MILITARY & TRAINING AtiD MANAGER (FIELD) MANAGER (FIELD) INSTITUTIONAL DEVELOPMENT SALES MANAGER MANAGER (FIELD) ASSISTANT DIVISION MANAGER DIVISION MANAGER CHAIN ACCOUNTS tle-~NAGER REGIONAL TRAINING AND DEVELOPMENT t9u'v'AGER SALES SALES TRAINING BUDGET & MERCHANDISING VENDING/MILITARY PLAN.~ItiG MANAGER MANAGER MANAGER ASSISTANT REGIONAL MANAGER REGIO A MANAGEP. DIRECTOR OF SALES AREA ~ ~ ~
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COMPREHENSIVE SIGN-OFF SHEET By placing their initials in the appropriate columns, both the Sales Representative and the Trainer acknowledge that objectives for the 11-week training period have been achieved. If sign-off cannot be given for one or more objectives, the Trainer and SR will develop a plar: using the spaces provided. At the completion of training, the SR: SR 1. Demonstrates satisfactory knowledge of: A. The history and philosophy of RJR Tobacco Company B. Competitors of RJR C. The corporate structure of RJR Industries 2. Understands and can define the RJR Marketing Process and its goal. 3. Understands and can explain the chief characteristics of the cigarette market. _ 4. Understands and can explain cigarette flavoring and brand categories. 5. Understands and can explain the elements of "Marketing lfix." 6. Can state In his/her own words the meaning of the Robinson-Patman Act. 7. Understands the impact of taxation on the tobacco industry. B. Understands the basic RJR policies and procedures affecting his/her job. 9. Can load his/her vehicle with call tools and car stock. 10. Can calculate solvency. 11. Understands the Six Steps of Systematic Selling. 12. Can complete Reporting function for all accounts. 13. Can define and describe billing procedures. 14. Can define the purpose and use of: A. * 899 B. Order Book C. Master Store List 15. Can define and explain the six accountabilities. 16. Understands the interrelationship of call procedures, accountabilities, programs, and vehicles. 17. Can define the criteria for each accountability. TR 18. Can correctly perforn the Six Steps of Systematic Selling for all calls.
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SR 19. Demonstrates application of accountabilities in all calls. 20. Understands the purpose and procedure of a T/A. 21. Demonstrates competence in call procedures for all calls. 22. Can identify carton merchandisers, component parts, and the use of each. 23. Understands the guidelines for carton merchandiser placement. 24. Can apply brand family merchandising strategy. 25. Can apply proportionate loading strategy. 26. Understands the concept and purpose of plan-o-gramming. 27. Understands the conditions and applicability of each shelf contract. 28. Understands how to resolve contract compliance problems r 29. Is familiar with competitive contracts and merchandisers. 30. Can describe and explain an industry plan-o-gram. 31. Can identify all package merchandisers, component parts, and the use of each. _ 32. Understands the guidelines for package merchandiser placement. 33. Understands and can use the seven steps for installing a merchandiser: A. Determine Proper Merchandiser B. Determine RJR Space C. Determine Competitive Space = D. Loading Procedures E. Labeling F. Signage G. Follow-through 34. Understands specifications or oral and written agreements. 35. Is familiar with competitive merchandisers and programs. 36. Understands Permanent Counter Display programs and contracts. 37. Is familiar with competitive PCD programs. 38. Demonstrates ability to plan and route his/her own calls using: A. Planning Schedule B. Work Plan C. Master Store List D. Criteria for Assignment Coverage accountability TR I
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39. Demonstrates familiarity with and ability to use the Reporting System being used in the Division. 40. Demonstrates ability to properly complete and administer the Draft Program. 41. Demonstrates ability to complete Form 7101. 42. Is familiar with the primary aspects of the Smoking and Health Controversy, including: A. History and trends B. Government reports C. Charges and replies D. RJR and industry position E. Procedures for handling objections 43. Can name and define the five kinds of direct accounts. 44. Understands and can use: A. Inventory Service B. Report of Standing Orders C. Domestic Customer Sales Analysis Sheet D. Damaged Goods Form 45. Understands full-line selling. 46. Demonstrates the ability to use these PSS Skills: A. Probing B. Supporting C. Closing D. Handling Customer Attitudes E. Making Benefit Statements 47. Uses Selling/Presentation Skills In retail calls. 48. Demonstrates ability to use the Seven Steps of I M S. 49. Demonstrates ability to use the Cal] Analyzation Tool to gather information for an IMS presentation. 50. Demonstrates ability to compute profitability analyses. 51. Demonstrates ability to use the CMM in preparing an IMS presentation. 52. Can prepare and give an IMS presentation to a retail account. 53. Can implement an IMS plan. 54. Can define and describe vending and its importance to RJR sales. 55. Can describe and distinguish between an independent vendor and a vending company. 56. Can describe the six accountabilities in relation to vending.
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SR 57. Can define and describe: A. B. C. Dead column selling Category selling Brand allowance selling 58. Can recognize opportunities to increase vending sales. 59. Understands the purpose and procedure for an Assignment Analysis. 60. Understands call procedures for military and special accounts (if applicable). 61. Demonstrates the ability to uncover problems and opportunities in retail and direct accounts. 62. Has demonstrated, through satisfactory achievement on Exams # 1 and 2, mastery of the skills and knowledge gained in Weeks * 1 - 11. 63. Has demonstrated, through satisfactory OJT pertormance, the ability to make effective application of skills and knowledge gained in Weeks 1 - 11. TR DATE OF COMPLETION: DEVELOPMENI PLAN I:"1If:G
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I 0 ~ 01 Q1 CID
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STEP Examinations Trainers' Instructions for Administration and Data Usage The two exams on the following pages are to be used by the STEP Trainer to identify areas where the Sales Representative is proficient and areas in which further development and instruction is needed. The following list should be noted and followed by the Trainer when administering exams. 1. Have the Sales Representative place his/her name and date in the space provided. 2. Explain how to answer the questions. In multiple choice and other selection questions, they should choose the best answer from the alternatives given. Definition and application questions should be answered succinctly in their own words. It is not necessary to attempt verbatim recall. 3. Exams should be given in an area which is free of interruption and which lends itself to concentra- tion.
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4. There is no time limit on the completion of the exams, but guidelines given in the Trainer's Guide should be adhered to if possible. 5. Upon completion, the exams should be checked and discussed with the Sales Representative. 6. The Sales Representative and the Trainer must sign and date each exam after it has been discussed. 7. The exams, questions, and answer sheets will be part of the Sales Representative's permanent records and will be maintained in the Division Office. 8. Under no circumstances should the exams or answers be allowed to leave the control of the Trainer. The Sales Representative should not have possession of the exams or the answers except within testing conditions which are under the control of the Trainer. This means that the Sales Representative will not be allowed to use the exams as take-home reference sources. All exams and answer sheets will remain in the possession and control of the Division Office. Copyright, R.J. Reynolds Tobacco Company, 1983. All Rights Reserved.
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Name Date EXAMINATION #1 1. Define the Marketing Process. 2. Briefly describe the requirements of the Robinson- Patman Act of 1963. 3. Why does RJR use print, outdoor ads, and point-of- sale advertising to deliver the selling message? 1
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4. Give two examples of an RJR: 0 Full Flavor brand Fuller Flavor Low Tar brand Ultra Low Tar brand 5. How would you handle the following situations: A. You have been asked to confirm or deny a rumor. B. You have been asked to give a public inter- view. 6. Define and give an example of the following: A. A consumer promotion Definition ILM 0 Example ~ 1 oti ~ (continued) N 2
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B. Point-of-sale advertising Definition Example C. A retail outlet Definition Example D. A direct account Definition Example E. A trade promotion Definition Example 3
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7. Match each component of Marketing Mix to its best definition. Product Pricing Availability Promotion Advertising Packaging A. Must be offered to produce an acceptable return on investment. B. Must be available to deliver the communi- cation message. ~. Must present product and services to the consumer. D. Must be sufficient quantity of product. E. Must communicate quality and value, offer convenience and provide product protection. F. Must successfully satisfy the needs, desires, and attitudes that motivate buyers. 4
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8. Manufactured tobacco products move through a nationwide system of bonded public warehouses which serve 9. Describe how you load your vehicle with cigarettes. 10. How does the Work Plan help you? 11. How do POS materials increase brand exposure? 12. The purpose of the Field Sales Operating Fund is to 5
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13. Federal taxes are paid by State and local taxes are paid by 14. Choose a retail call made last week with your Trainer. First list the Six Steps of Systematic Selling. Then briefly describe how each of the six steps was accomplished during the call you chose. The six steps are: 1. 2. 3. 4. 5. 6. (continued) . 6
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How they were accomplished in my call: 1. 2. 3. 4. 5. 6. 15. What account knowledge did you use during precall planning for the call described above? How did it help you during the call? .. oN
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16. List and briefly describe the five kinds of sales transactions/billing procedures used in retail accounts. 1?. What does "accountability" mean? 1 8
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18. List and define the six accountabilities. 1. 2. 3. 4. 5. 6. 9
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19. Match each of the concepts with the letter of its best definition. 1. Call Procedures 2. Six Steps of Systematic Selling 3. Programs 4. Vehicles 5. Accountabilities A. Fixtures and displays used to implement an account design plan. B. RJR planning and design tools used to maximize the potential of an account. C. Techniques used to achieve your job accounta- bilities. D. The result of using RJR programs and vehicles to accomplish selling goals. E. Guidelines for performing selling procedures in a logical and methodical manner. 1 10
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20. Describe how you addressed each accountability during the retail call you chose in question #14. 1. 2. 3. 4. 5. 6. 11
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EXAMINATION N1 - ANSWER KEY To the Trainer: When you review the answers to the examination questions with the Sales Representative, look for overall understanding and the ability to apply skills and knowledge. Since a range of responses could qualify as correct and demonstrate understanding, your evaluation of the quality of trainee progress is as important as the specific replies he/she gives in this examination. 1. The process of moving product from the factory to the ultimate consumer with the goal of ensuring that more RJR products are sold than competitive products. 2. The Robinson-Patman Act (enacted 6-19-63) reminds us that in the solicitation of orders from retail accounts, we must not suggest to a dealer the jobber with whom an order will be placed, or attempt to influence a dealer's choice of the jobber through whom he prefers to purchase the goods. This decision must be entirely his own. 1
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3. The ban on broadcast advertising makes it imperative that all other available media be used to reach the consumer. 4. Examples: Camel, Winston, Vantage, Salem Lights Now, Salem Ultra 5. A. Deny any knowledge of the rumor; drop the subject. B. Contact Division Management; politely decline to be interviewed. 6. A. A temporary reward added to a product to stimulate its purchase. Examples: sampling, couponing, on-pack premiums, sweepstakes, cents-off stickers, etc. B. Temporary or permanent advertising to gain consumer awareness and stimulate impulse purchases. Examples: temporary; shelf-strips, pasters, riser cards. Permanent; business hour decal, cigarette center signs, clocks, etc. ~ 0 ~ cn N 0 2
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C. Accounts selling cigarettes over the counter directly to consumers. They may be independent or chain accounts. Examples: convenience stores, supermarkets, liquor stores, gas stations, etc. The trainee may also give the name of one of his own retail accounts. D. Any establishment which purchases directly from RJR. Examples: jobbers, direct vendors, military or institutional accounts, and direct chains. The trainee will probably know only his own jobber at this point in training. E. An advantage given to wholesalers, retailers, or other channels of distribution to persuade them to buy a product, or more of a product, for resale. Example: trade allowances. 7. F, D, B, A, C, E. 8. Direct accounts.
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9. Work Plan brands should be together in the most convenient areas. Kings are together by brand family. 100s are together by brand family. Don't forget rotation and daily inventory. In sedans, cigarettes go in the trunk; in station wagons and vans, in the back section. No cigarettes in the front. 10. The Work Plan is a schedule of events or list objectives based on the goals of the company or sales area for that period. Has a substantial effect on coverage. 11. Trainee should emphasize the attainment of PDI and consumer awareness. Placement and location, as well as the keen competition in this area, should also be covered. 12. Provides working capital to buy stock and pay on-the-job expenses. 13. Manufacturer; wholesaler. 4
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14. 1. Get to the product 2. Rotate and merchandise product 3. Determine distribution and inventory needs 4. Organize and sell 5. Display and advertise 6. Complete appropriate reports and forms Trainees should provide a brief description of these steps as accomplished with you during the call he/she chooses as an example. 15. Such items as the Master Store List and Compumark Reports should be discussed in his/her answer. 16. Cash, delivered order, prebooking, and exchange should be explained and the concepts correctly described. Cash - product from car stock delivered; retailer pays cash. 5
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Delivered Order - product from car stock; retailer is billed through wholesaler. Prebooking - Order taken on prebooking form or #1145 and taken to jobber; jobber bills and delivers to retailer. Exchange - product from car stock replaces product of equal value from retailer. Order Booking - Use retailer's order book to place an order to establish necessary levels for future orders. 17. SR job responsibilities; a method of structuring the many job activities so that each SR will know exactly what is expected of him/her. Performance evaluations correlate directly with acccuntabilities. 18. Trainee should cover the following in his/her own words: 1. Product Availability Achievement and maintenance of a complete stock of RJR brands in all accounts within your assignment; product to be properly rotated and located in positions which maximize sales potential. 6
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2. Merchandising Display of RJR brands at the point-of-sale to obtain maximum product exposure to the consumer. 3. Display/Advertising Placement and maintenance of a sufficient amount of RJR temporary displays and point-of-sale advertising pieces to ensure that our products and selling message are visible to the consumer. 4. Assignment Coverage Sales territory management; making calls on all of the accounts within your assignment as dictated by their classification and frequency. 5. Administration/Communication Proper organization and handling of the various forms, reports, and correspondence used by a Sales Representative. 6. Selling/Presentation Skills Effective use of the Six Steps of Systematic Selling, PSS, and RJR tools and aids to accomplish successful sales presentations. 7
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19. C, E, B, A, D 20. The trainee should cite specifics appropriate to the account chosen. The objective here is to test applications of knowledge. He/she should he able to explain what was done to achieve accountability goals. \ 8
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Name Date EXAMINATION #2 1. Briefly describe the marketing process. 2. The six main elements of the marketing mix are: 1. 2. 3. 4. 5. 6. 1
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3. RJR identifies cigarette categories according to which 5 criteria? 1. 2. 3. 4. 5. 4. Prior to being delivered to direct accounts, cigarettes are stored throughout the country at strategically located points called 5. List 2 of the 4 possible objectives of consumer promotions. 6. Briefly explain the following elements of the marketing mix. A. Availability B. Promotion 2
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7. In your own words, describe the meaning of the Robinson-Patman Act. 8. When confronted with a rumor, what course of action do you take? 9. List 5 items that would be placed in the Call Bag. 1. 2. 3. 4. 5.
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10. Describe how each of the items listed below would be loaded on the company vehicle. Cigarettes: Travel File: Contracts & Letters: 11. What is the Field Sales Operating Fund, and how is it to be used? R 12. Explain solvency as it pertains to you as an RJR Sales Representative. 4
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13. List in order the Six Steps of Systematic Selling. 1. 2. 3. 4. 5. 6. 14. Give the two major categories of retail outlets, and explain each. 1. 2. 15. Using the appropriate letters of the alphabet, give the codes of manufacture for the following dates: A. (Feb.-1985) B. (Dec.-1985) C. (Oct.-1985) D. (Jan.-1985) E. (Apr.-1985) F. (July-1985) 5
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16. Fill in the blanks with regard to cigarette rotation. Retail Level - Pick up in month. Direct Accounts - Pick up in month. 17. Give two reasons for rotating. 1. 2. 18. What type of sales transaction is the least effec- tive and why? R 19. One of the first things to consider in placing any display is location. Locations should offer: A. B. 20. When placing advertising you should strive for N ..A 1D ~ VI 6
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21. In the spaces 1. 2. 3 4 5 6. below, list the 6 Accountabilities. 22. Match the following Performance Evaluation Criteria with descriptions listed below: 1. Product Availability 2. Merchandising 3. Display/Advertising 4. Assignment Coverage 5. Administration/Communication 6. Selling/Presentation Skills 7. Attitude . A. B. C. D. E. F. Package and carton display plan potential is maximized to dominate assignment. Performs proper rotation to ensure product freshness. Demonstrates effective planning and routing to ensure Work Plan implementation. Willingly accepts direction and new challenges. Maximizes potential of proper location/placement. Demonstrates good usage of PSS. ~ 0 G. Ensures objectives and division standards are ~ achieved on coverage, frequency, call count and retail selling time. N o. I 7
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23. List the 5 types of sales transactions. 1. 2. 3. 4. 5. 24. Briefly describe the Inventory Management System. 25. Beside each type of advertising, indicate whether it is (T) temporary or (P) permanent. A. Business Hour Decal B. Pasters C. Clocks D. Open and Closed Signs E. Shelf Strips F. Riser Cards 8
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26. Briefly describe the following: A. Coverage B. Frequency C. Call Count 27. Match the following call classifications to their respective volumes, type of outlet and criteria. 1. K4 2. A4 3. B4 4. C13 5. D52 6. C4 A. Volume 30 - 49 Package Outlet B. Volume 125+ Package Outlet C. Volume 125+ Carton Outlet D. Volume 76 - 124 Package/Carton Outlet E. Volume 1 - 29 Package F. Volume 50 - 75 Package
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28. List 4 types of sales possible when making a retail call. 1. 2. 3. 4. 29. What type of information is reported on the Weekly Expense and Payroll Report? List 5 specifics. 1. 2. 3. 4. 5. k 10
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30. Match the following customer attitudes, as presented in our Professional Selling Skills Program, with the statements given below. A. Indifference B. Skepticism C. Acceptance D. Misunderstanding E. Perceived Drawback 1. I don't want a permanent package display unit on my counter that doesn't have a payment! 2. Another new brand? I've got enough brands to satisfy my customers right now. 3. I was looking for a carton merchandiser beige in color to match the decor of my store. 4. Looks like your promotion might help my sales! 5. I'd love to increase my sales, but your display is not going to do that! 31. Merchandising, in your own words, is: 11
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32. is the time between the order being placed and product being delivered to a store. 33. A. Three methods of merchandising cartons of cigarettes are: 1. 2. 3. B. Of these the most effective method is 34. Which carton contract would you use for the fixturing described below, assuming proper contractual condi- tions were met. A. Universal Carton Merchandiser B. 40-row plan behind a counter C. Self Service Down Aisle Gondola Merchandising using retailer's shelving D. 96-row carton merchandiser plus retailer's adjoining gondola sections, top two shelves of all fixturing for RJR E. Seven Shelf merchandiser F. Merchandise RJR brands exclusively behind counter k 12
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35. A. When merchandising any package or carton fixture, you should arrange RJR products according to and loading. B. Briefly describe each. 1. 2. 36. When compliance problems exist, they should be handled in a manner. 37. Five examples of non-compliance on our carton merchandisers are: 1. 2. 3. 4. 5. Other
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38. Five examples of non-compliance on our permanent package displays are: 1. 2. 3. 4. 5. Other 39. What volume categories would the following weekly total carton volumes fall under for our carton display plans? A. 250 B. 710 C. 405 D. 190 E. 1100 14
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40. Merchandise the following brands into the allocated package space utilizing proper brand family and proportionate loading procedures. 1 3 0 oc a a x w 1 Winston King Winston Ultra Camel Filter Winston Lights Camel Lights 100 Winston Box Camel Winston 100 Camel Lights Winston Lights Camel Filter 100 Hard Pack Winston Ultra 100 41. Five main types of package merchandisers are: 1. 2. 3. 4. 5. 42. Two primary sources of information for merchandising are the: 1. 2. 15
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43. List five of the seven steps for selecting and installing package merchandisers. 1. 2. 3. 4. 5. 44. All package merchandisers are covered by either a or agreement. 45. Three types of self-service RJR permanent package displays are: 1. 2. 3. 46. Complete the following inventory chart: I nv. Base On Hand Order Winston 50 21 Winston 100 28 15 Winston Li hts 19 18 Winston Li hts 100 18 7 Brand t 16
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47. List 3 types of Direct Accounts. 1. 2. 3. 48. Describe the purpose of a standing order. 49. Introductory Discounts do what for a direct account? 50. Distribution Incentives do what for the direct account? 51. When the jobber bundles the unsalable merchandise, what percentage of the list price is paid to him in exchange for this service?
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52. are direct accounts who generally service their own stores and often supply the major part of all products sold within the store. 53. We don't give credit for unsalable products which have been damaged due to: 54. Tobacco in a direct account should be returned as unsalable after the month of manufacture. 55. Information on Total Sales, Extra Orders and Rush Orders to a direct account would be found on what report? 56. Briefly explain the meaning of the 3 terms underlined in question 55. 1. 2. • 0 3. -J 0 ~
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57. For RJR, vending represents approximately % of our total cigarette sales and % of all the single pack sales. 58. List 3 possible selling presentations which can be used to achieve the desired levels of product availability in vending machines. 1. 2. 3. 59. Define Dead Column Selling. 60. List four advertising pieces available for vending outlets. 1. 2. 3. 4. 19
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61. Briefly explain the function of the Independent Vendor Route Card. Stop at this point if you do not currently call on vending companies. If you have been assigned a vending company, complete the following questions. 62. List and define the 2 types of vending companies we call on. A. B. 63. is a computer company that specializes in providing computerized placement reports to all of the cigarette manufacturers. 64. Service Selling involves which 2 programs. 1. 2. 20
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65. Briefly define the Ride With program. 66. Briefly define Allowance Selling. 21
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EXAMINATION #2 - ANSWER KEY To the Trainer: When you review the answers to the examination questions with the Sales Representative, look for overall understanding and the ability to apply skills and knowledge. Since a range of responses could qualify as correct and demonstrate understanding, your evaluation of the quality of trainee progress is as important as the specific replies he/she gives in this examination. 1. The moving of a product from the factory to the consumer. 2. Product, Packaging, Pricing, Availability, Adver- tising and Promotion. 3. Filtering, Flavoring, Mentholation, Size and Packaging. 4. Bonded Public Warehouses. 5. Accept any 2 of the following: Obtaining trial smokers Obtaining volume among current and occasional smokers Expanding product usage Reinforcing brand advertising 1
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6. Accept anything similar to: A. Availability - Product which is readily avail- able at the various levels of the distribution channel in order to have sufficient inventory available to the consumer. B. Promotion - Selection of vehicles and/or incentives designed to present the company's product to the consumer. 7. we do not recommend jobbers to retailers, and prices to jobbers are nondiscriminatory. 8. State we know no facts to support the rumor and dismiss it. 9. 1. Work Plan Pasters 2. Riser Cards 3. Staple Gun 4. Scotch Tape 5. Draft Book (See Operating Guidelines-Program Stop #2 for additional items.) 10. Cigarettes - should be loaded in the trunk only in sedans and the back section only in station wagons and vans. Work Plan brands should be loaded together in the most convenient area. All cigarettes should be loaded by brand family. 2
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Travel File - should be kept in an easily accessible place in the vehicle so that it remains handy and convenient. Contracts and Letters - should be kept in the travel file in an organized manner. 11. The Field Sales Operating Fund is a stipulated amount of money received by you as a Field Sales Representative. This money is to be used to purchase inventory stock and pay for expenses incurred in the performance of job. 12. Solvency - the maintenance of the Field Sales Operating Fund. The Field Sales Operating Fund should balance with cash on hand, inventory stock, damaged goods, delivered order tickets, and ex- penses listed on Expense and Payroll Reports for the current and any previous unpaid weeks. 13. Get to the Product. Rotate and Merchandise Product. Determine Distribution and Inventory Needs Organize and Sell Display and Advertise Complete Appropriate Reports and Forms 3
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14. Independents - Independent businessman who owns and operates a retail store to service the public, such as a service station, liquor store, drug store, small grocery or supermarket. Chain Stores - Two or more stores owned by an individual or group of individuals operating under the same name, such as Kroger, Revco, and 7-Eleven. 15. A. BE 6. B. C. D. E. F. 9th LE JE AE DE GE ~ 17. 6th 1. To maintain freshness. To minimize the quantity of out-of-date merchandise that has to be shipped back to Winston-Salem. ~ 18. Exchange - this type transaction only enables you to 0 ~ exchange the merchandise for existing in-store tobacco vo ~ ~ products of equal value. _j 4
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19. A. High customer traffic B. High brar.d visibility (Another is: Easy Customer Access) 20. Quality (or PDI) 21. Product Availability Merchandising Display!Advertlsing assigr.ment Coverage r.dmin_stra ;._c.^..'Ccr.,mun:cation Selliag!P=ese:.taticn S;cil:s 2. A 3. E 4. G 5. C 6. F 7. D 23. Cash Order Prebook Order Book Bill Through Exchange 5
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24. Inventory mar.acement is a service we provide to arn account where no systematic ordering procedure exists. It involves a weekly count of merchandise by cartorn and brand to determine the amount sold. Once sales are determined, a figure can be established to ensure proper orderir.g procedures. This system ensures that the retailer will have adequate inventory to meet consumer demand. 25. A. P B. T C. P D. P T F. T 26. A. Coverace - the making of a sales call on all of the accounts selling cigarettes ar.d tobacco products within your assignment. B. Frecuer.cy - the number of times a call is to be made during a month, quarter or year. C. Call Cc::.^.t - calls made each day (average). A standard which serves to guide the SR in achieving the important coverage objectives. 1
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27. 1. C ?. B 3. D 4. A 5. E 28. 1. Cash 2. Delivered Order 3. Order Book 4. Exchange 29. 1. Gallons/liters of gas and cost 2. Postage 3. Parking fees 4. Display payments 5. Suggestions (See expense report for other examples) 30. 1. D 2. A 3. E 4. C 5. B 7
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31. Displaying RJR products at the point-of-purchase to obtain maximum visibility, accessibility, and exposure to the consumer. 32. Lag Time 33. A. Self-Service, Controlled-Self-Service, Non- Sel f-Service B. Self-Service 35. A. Brand family, proportionate 1. Brand family loading - all cigarette cate- gories within a brand family are loaded together in a contiguous manner. 2. Proportionate Loading - The proper allocation of space for each RJR brand based on the brand's sales 36. Immediately, firm but tactful. < I a
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37. 1. Competitive advertisir.g on fixture 2. Physical configuration of merchandiser altered 3. Competitive product in RJR allocated space 4. Location of nerchandiser moved 5. Not enough product maintained (You may have others) 38. 1. Advertising removed 2. Display moved 3. Display not kept filled 4. Competitive product in display 5. Competitive advertising on display 6. Display obstructed (You may have others) 39. A. B B. D C. C D. A E. D 40. Q ~ . . c a zx zF zFo a X X a X cno ~ p a o < ., . < " Rt E- o 3b uU.~ uw Va.-+ 0 0 .~ U) ~ F z - - ~ o C~ C; cr) Y O a i ~-r E.., .-, ..r a ..a .: . w z z z z X ~ ~ .. .. ., ,~ ~c 9
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41. 1. Standard metal package fixture 2. Slide-by 3. Overhead 4. Centralized 5. Gondola end frame 42. 1. Cigarette Merchandising Manual 2. Merchandisers and Component Parts Catalogue 43. 1. Determine proper merchandiser 2. Determine space for RJR 3. Determine space for competitive brands 4. Merchandise RJR brands 5. Label fixturing 6. Apply merchandiser signage 7. Follow Through 44. Written, oral 45. 1. Wire P C D 2. Specialty Store Permanent Counter Display 3. Permanent Package Display for Centralized and 4. Gondola End Frame Merchandisers Permanent Package Display V V 0 10
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46. Brand Inv. Base On Hand Order Winston 50 21 29 Winston 100 28 13 15 Winston Li hts 37 19 18 inston Li hts 100 18 7 11 47. 1. Jobbers 2. Direct Vendors 3. Military Accounts 4. Direct Chain Accounts 5. Institutions 48. To provide an automatic delivery of tobacco prod- ucts to a direct account during a specifi.c period. 49. A promotion which allows the direct account to receive discounts for purchasing adequate stock of new brands, thereby filling channels of distribu- tion. 50. A promotion which allows the direct account to receive monies for the sale and distribution of a designated RJR product for a given period of time. 11
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51. 6 1/2% 52. Direct Chain Account 53. Smoke, water, or fire 54. 5th month 55. Domestic Customer Sales Analysis Sheet 56. Total Sales - Total cases sold to the direct account either for the reporting month or year-to-date Extra Orders - Cases ordered directly by a customer (not including standing orders) during the report month P.ush Orders - Number of cases sent rush delivery during the report month 57. 8%, 21% 58. 1. Dead Column Selling 2. Category Sellina 3. Multiple Row Selling 4. Service Selling 5. Allowance Selling 12
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59. The technique of replacing slow-selling items in the vendor's machines with RJR brands that will increase his sales. 60. 1. Pricing dials 2. Price post-ons 3. Vending toppers 4. Refurbishing kits 61. Accept anything similar to: A 4-copy form whereby you can report brands placed, the number currently carried in the machine and other machine informa- tion. 62. A. Street Vendor - Specializes in pinball machines and juke boxes as well as cigarettes B. Full-Line Vendor - Vends different types of consumer products, such as coffee, candy, soda, cigarettes 63. Tru-Check 64. Ride With program and Tru-Check 65. The involvement of an RJR Representative working alongside a vendor routeman to update brand selec- tion, clean machines and replace labels. 4 ~ 00 ~10 V V 13 ~ w
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66. One type of selling presentation where we present to the vendor our display plans and/or our Bonus Vending Offer. 1 14
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STEP WORKBOOK EXERCISES
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SALES TRAINING ENTRY PROGRAI•: (STEP) - OVEP.VIEF" WEEK STEP P:CTIVITY 1. ° R i R and the industrv ° Initial Employr.,ert paperwork ° R J R and the I•farketir.a_ 0 Training Overview process ° Operating Guidelines ° Loading vehicle with ° Call Prccedures supplies and car stock ° Three days of on-the- job training (0„T) observatiorn of procedureE only 2. ° Accountabilities ° 1 day classrcom training ° 4 days OJT - Sales Representative making calls 3. ° Review 0 4h days OJT - Sales Representative - making calls 4. 0 Cigarette ° Exam I ° 1 day classroom traininc ° 4 days OJT - Sales Representative making calls 5. ° Cigarette Merchandising II ° 1 day classroom training ° 4 days OJT - Sales Representative making calls 6. ° Review ° Administration 7. ° Smoking and Health ° Direct Accounts 8. ° Professional Sellir.c Skills (PSS) ~ ° 1 day classrccm trainir.c; ° 4 days OJT - Sales Representative making calls ° Cne-half - I day classroom training ° 4- 4; day OJT - r SR making calls ° 2 days classrcom train'_r.c* ° 3 days OJT - SaleF Representative making c~ I~s 9. ° individualized ° 1 dal• classroom traininc Nerchandicing Servic-- ° 4 davs O;T - Sales (IIiS) Representative rr,aklr.g calls
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WEEK STEP IC. 0 Vending 11. ° Military ° Closing Modules r:OmE : ACTIVITY ° i day classroom training ° 4 days OJT - Sales Representative r^rking calls ` Exam II ° 4 days OJT - Sales Representative makir.cg calls ° Classroom Training Sessions: Trainer will advise locatiorn if not at Divisicn Office. ° OJT: Refers to time spent in retail calls whether with Management or alcne. ° Schedule is flexible; Management wil]l advise of changes in scheduling. * PSS III/IMS training can be scheduled during weeks 8 and 9. Flexibility exists to schedule PSS/IMS in group sessicr.s at a later date. \ .,, V N V
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MARKETING PROCESS 2 . S0482 17Z8
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RJR AND THE MARKETING PROCESS Program Stop #1 Workbook Exercise #1 True/False Circle the correct answer. 1. The marketing process is the process of moving a product from the factory to the consumer. True False 2. RJR is committed to developing a successful brand for every major cigarette category. True False Multiple Choice Circle the letter of the best answer. 3. The basic goal of the marketing process is: A. To gain maximum distribution B. To increase sales C.. To sell more than the competition D. To gain share of market 4. In order to reach RJR's marketing objectives, the Sales Representative must: A. Use marketing tools B. Meet customer needs C. Allocate resources D. All of the above 1
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5. Important aspects of the cigarette market are: A. Methods of advertising are restricted. B. The industry is highly competitive. C. The consumer is constantly in the marketplace. D. B and C E. A, B, and C Fill in the Blanks. 6. The advertising media open to cigarette advertising are: 7. Some special sporting events sponsored by RJR are: STOP This is the end of Workbook Exercise #1. 2
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RJR TH_ M.?.RKETING PROCESS Program Stop #2 k'cr'.•.: cok Exe:c_-se #~ True/False Circle the correct answer. 1. Filtering and flavoring are two categcries of cigarettes. True False 2. Menthclation specifically refers tc menthol additives. True False 3. The crush-resistant cardboard box, and the paper pack are the twc ways cigarettes True False are packaged. =_11 in the Blanks. 4. G:ve one example of an RJR: Full Flavor brand Fuller Flavor Low Tar brand Ultra Low Tar brand 3
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t:ultiDle Choice Ci:cle the letter of the best answer. 5. Filtering, type of package, mentholation, size, and flavoring are: A. Consumer preferences B. Marketing considerations C. Cigarette categories D. t•larketing resources E. T%•pes of markets 6. Cigarette flavoring pertains to taste, which is determined primarily by: A. Filtration and mentholation B. Low tar ar.d nicotine content C. Filtration and cig&rette length ~. Tar and nicotine ccntent and ar.:ount c~ 7 Star.dard cigarette sizes are: A. 7 0 m. , 80r•-,.T, 85rcm, 94r..n, 100r.an and 12C:%-1 B. 75mm, 85r.•T,, 90mm, 94mm, 115mm and 1Z0mm C. 80mm, 85mm, 90rr.m, 94r,r•i, :00:rar a nd 12 D. 85mm, 90rrm, 94mm, 100mm, 115mm and 12CTT E. 80mm, 90mm, 95mm, 100r..m, 115mm and 120r%-i ~ 4 STOP f OD h \ This is the end of Wcrkbcck Exerc:--e ~ w
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RJR AND THE MARKETING PROCESS Program Stop #3 Workbook Exercise #3 Multiple Choice Circle the letter of the best answer. 1. The prime smoking group has been determined to be between the ages of: A. 18 and 35 B. 20 and 49 C. 25 and 38 D. 25 and 49 True/False Circle the correct answer. 2. Menthol, low tar and ultra low tar are the cigarette categories which are increasing in popularity. True False 3. Cigarette consumption has increased by over 50% since 1957. True False STOP This is the end of Workbook Exercise #3. 5
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RJR AND THE MARKETING PROCESS Program Stop #4 Workbook Exercise #4 Multiple Choice Circle the letter of the best answer. 1. A special inducement to stimulate consumer purchase is called: A. A bonus B. A promotion C. Advertising D. Merchandising 2. Making sure products are obtainable by the consumer and each level of the distribution system is called: A. Advertising B. Inventory management C. Availability D. Promotion 3. Product protection and cost-efficiency are the concerns of: A. Packaging B. Merchandising C. Marketing D. Pricing 6
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4. The determination of the best possible medium and the most desirable message to appeal to the prime market is called: A. Promotion B. Advertising C. Merchandising D. Pricing 5. Offering the product to the consumer at a level that will produce an acceptable return on invest- ment is called: A. Distribution B. Availability C. Pricing D. Advertising 6. Satisfying the needs, desires and other influences that motivate consumers to purchase is the concern of: A. Product development B. Promotion C. Advertising D. Packaging 7
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Matching Match each component of Marketing Mix to its best definition. 7. Product 10. Pricing 8. Availability 11. Promotion 9. Advertising 12. Packaging A. Must be offered to produce an acceptable return on investment. B. Must be available to deliver the communication message. C. Must present product and services to the consumer. D. Must be sufficient quantity of product. E. Must communicate quality and value, offer convenience and provide product protection. F. Must successfully satisfy the needs, desires, and attitudes that motivate buyers. %n 0 ~ cc N STOP ~ ~ This is the end of Workbook Exercise #4. owi 8
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RJR AND THE MARKETING PROCESS Program Stop #5 Workbook Exercise #5 Multiple Choice Circle the letter of the best answer. 1. The best definition of a promotion is a: A. Tool to use with advertising to generate purchases B. Means of capturing the consumer's interest C. Temporary reward added to a product to generate purchases D. Temporary reward to encourage brand loyalty 2. Which of the following does not apply to consumer promotions: A. Initiate or increase purchases B. Encourage the consumer to switch to RJR brands C. Sell more cigarettes D. Reduce the cost of packaging True/False Circle the correct answer. 3. Changes in fashions and consumers' interests cause changes in the way a particular brand is promoted. True False 9
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4. The goal of a trade promotion, which offers cash or product in return for orders, is to increase the volume of products in various channels of distribution. True False Matching Match each of the promotions with its best definition. 5. Bonus pack 8. Trade allowance 6. Cash refund 9. Sampling 7. Sweepstakes 10. Couponing - A. Provides a stated price reduction at point-of-purchase. B. Offers extra product at no cost increase. C. Involves chance and prize. D. Offers payment to retailers for rendering specific services. E. Offers a return of purchase price via mail. F. Puts product directly in consumer's hand. STOP This is the end of Workbook Exercise #5. 10
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RJR AND THE MARKETING PROCESS Program Stop #6 Workbook Exercise #6 Fill in the Blank. 1. Manufactured tobacco products move through a nationwide system of bonded public warehouses, which serve: True/False Circle the correct answer. 2. A direct account is the same thing as a retail outlet. True False 3. The RJR Traffic Department is responsible for when and how orders are shipped from the bonded public warehouses. True False 4. A retail account is the same thing as a direct account, but involves the Sales Representative in the delivery of product and exchange of reimbursement. True False 11
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5. There are approximately 1,000,000 retail outlets and vending machines which sell tobacco products to consumers. True False STOP This is the end of Workbook Exercise #6. 12
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RJR AND THE MARKETING PROCESS Workbook Exercise Answer Key Exercise #1 Exercise #4 1. True 1. B 2. True 2. C 3. B 3. A 4. D 4. B 5. E 5. C 6. Print, outdoor ads, point-of-sale 6. A 7. Rodeos, drag racing, stock car racing 7. F 8. D Exercise #2 9. B 1. True 10. A 2. True 11. C 3. True 12. E 4. See Chart, page MP6 5. C 6. D Exercise #5 7. A 1. C 2. D Exercise #3 3. True 1. D 4. True 2. True 5. B 3. True 6. E 7. C 8. D 9. F 10. A Exercise #6 l. Direct Accounts 2. False, see 3. True 4. False, see 5. True p• p• 13
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OPERATING GUIDEUNES 50482 17µ2 U) LU LU 0 (D z
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OPERATING GUIDELINES Program Stop #1 Workbook Exercise #1 True/False Circle the correct answer. 1. Two requirements of the Robinson-Patman Act of 1963 are that you do not recommend a jobber to a retailer, and that prices to jobbers are non- discriminatory. True False 2. You will offer and place only RJR authorized advertising and promotional materials, knowing that only designated officials of RJR are authorized to create and approve these materials. True False 3. There are no restrictions on schools and univer- sities regarding advertising and promotion. True False 4. If a rumor is repeated to you during a conversation, listen politely and promise to check out the information. True False 14
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5. Your performance will be rated against a set of objective job-related criteria. True False Fill in the Blanks. 6. Federal taxes are paid by State and local taxes are paid by Mutiple Choice Circle the letter of the best answer. 7. You should obtain information about state and local tax rates and procedures from: A. Winston-Salem B. The state assessor's office C. Your Regional Management D. Your Division Management 8. The only method by which publicity about the R.J. Reynolds Tobacco Company should reach the public is through: A. Advertising B. Promotional materials C. The news media D. Authorized channels within RJR 15
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9. If you refer a person to RJR as a potential employee, and that person is hired, you receive: A. An application referral bonus B. A recruiting bonus C. An extra commission check D. A recruiting reimbursement 10. When you and your Division Management have identified those areas in which you are strong and those in which you need improvement, you will mutually formulate: A. A development plan to help you progress B. A work plan to help you sell more C. A time management plan to help you be more efficient D. A selling plan to help you be more effective STOP This is the end of Workbook Exercise #1. 16
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OPERATING GUIDELINES Program Stop #2 Workbook Exercise #2 Multiple Choice Circle the letter of the best answer. 1. The "tools of the trade" provided by RJR, issued when you are hired, are returnable company property and include: A. Tack hammer, stapler and screwdriver B. Reporting Manual and feather duster C. Draft Book D. Call bag E. All items listed above 2. Among the items carried in your travel file are: A. Contracts and display letters B. Temporary displays C. Pasters and shelf strips D. Masking tape 17
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True/False Circie the correct answer. 3. Another means of RJR support is your company vehicle, which will be maintained by your Divlsicr. Management. True False STOP This is the end of-workbook Exercise #-&. 18
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OPERATING GUIDELINES Program Stop w3 Workbook Exercise #3 Multiple Choice Circle the letter of the best answer. 1. Periodically thrcughout the year, a Work Plan is issued to Field Divisions which: A. Establishes priorities for featured brands B. Sets sales goals for the quarter C. Tells yeu what quantities of product to carr;• D. Establishes your accountabilities fbr the year 2. Car stock is placed in your co:nrar.y vehicle so that: A. Cigarettes are in the very back or trunk B. Work Plarn brands are in the most ccr.venien: location ` C. King Size and 100s are kept together by brand family D. No products are in the front seat area E. All of the above 19
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True/False Circle the correct answer. 3. Display vehicles, POS, and other work materials are picked up from your division office, and car stock is picked up from the jobber. True False 4. The purpose of POS materials is to increase brand exposure, and create permanence/dominance/impact which enhances RJR's image as a leading manu- facturer of cigarettes. True False 20
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OPERATING GUIDELINES Program Stop #3 Workbook Exercise #3 Matching Identify whether each of the following is found in the call bag (C) or the travel file (T). Use the abbreviations shown in parentheses to record your answer. 5. Account Files 6. Decals 7. Carton end labels 8. Staple gun 9. Contracts and display letters 10. Draft book 11. Reporting manual 12. Pasters STOP This is the end of Workbook Exercise #3. 21
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OPERATING GUIDELINES Program Stop #4 Workbook Exercise #4 Multiple Choice Circle the letter of the best answer. l. Your Field Sales Operating Fund enables you to: A. Pay expenses incurred on the job B. Take retailers to lunch C. Purchase car stock from jobbers D. A and B E. A and C 2. A delivered order slip is used like cash or a check when: A. Your retail account wants to be billed by the jobber B. Your Field Sales Operating Fund is low C. You fill a jobber account order from your car stock D. You buy car stock from a bonded warehouse 22
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Multiple Choice Circle the letter of the best answer. 3. You must be able to verify the full value of your Field Sales Operating Fund at all times. You and/or your Division Management check solvency: A. Monthly for the duration of your employment B. Weekly for a month, then monthly C. Weekly until you are familiar with it, then monthly D. Monthly until you are familiar with it, then only if you have problems balancing it 23
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True/False Circle the correct answer. 4. The Comments section of the Weekly Expense and Payroll Report is for you to explain any extenuating circumstances surrounding your expenses. True False 5. You will itemize your expenses and attach all receipts to your Weekly Expense and Payroll Report Form, from which you will be reimbursed by the company. In order to be an official report of your activities, the report requires your signature and the date. True False 6. You will mail the original of the Weekly Expense & Payroll Report, with your receipts attached, to Winston- Salem at the close of business each Friday. True False
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7. Promotional displays and tolls are reimburseable expenses you will incur while on the job. True False STOP This is the end of Workbook Exercise #4. 25
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OPERATING GUIDELINES Workbook Exercise Answer Key Exercise #1 1. True 2. 3. 4. 5. 6. 7. 8. 9. 10. True False, False, True see p. OG-4 see p. OG-3 Manufacturer, D D B A Wholesaler Exercise #2 1. E 2. A 3. False, it's maintained by Exercise #3 1. A 2. E 3. True 4. True 5. T 6. C 7. C 8. C 9. T 10. T 11. T 12. C Exercise #4 1. E 2. A 3. C 4. False, see 5. True 6. True 7. True pp OG-11, 12 you 26
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CALL PROCtUt/kES j R 50482 1756
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CALL PROCEDURES Program Stop #1 Workbook Exercise #1 Matching Match each of the steps with the appropriate activity. 1. Get to the product 2. Rotate and merchandise product 3. Determine distribution and im•entory needs 4. Organize and sell 5. Display and advertise 6. Complete appropriate forms and reports A. Install POS B. Count on-hand product C. Check code dates D. Complete Reporting Procedure E. Present your recommendations F. Physically contact the product STOP This is the end of Workbook Exercise #1. 27
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CALL PROCEDURES Workbook Exercise #2 Program Stop #2 True/False Circle the correct answer. 1. Within most RJR Sales Divisions, Sales Representatives are assigned both independent and chain accounts. True False Multiple Choice Circle the letter of the best answer. 2. Which of the following are benefits of systematic selling? A. Reduces call frequency and product rotation B. Saves time and organizes your activities C. Reduces lag time and damaged goods D. All the above 3. In addition to placing RJR products in new accounts, which of the following are also results of systematic selling? A. Increasing call frequency and providing dominance in all accounts B. Increasing division sales and providing tobacco merchandisers C. Increasing retail orders and call frequency D. Increasing sales in existing accounts and providing dominance in all accounts I 28
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4. Which of the following best describes the flow of tobacco products? A. RJR - Sales Representative - Retailer - Consumer B. RJR - Wholesaler - Sales Representative - Consumer C. RJR - Jobber - Retailer - Consumer D. RJR - Jobber - Wholesaler - Consumer Fill in the Blanks. 5. Two types of retail accounts are: STOP This is the end of Workbook Exercise #2. 29
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CALL PROCEDURES Workbook Exercise #3 Program Stop #3 Use your Product Shelf Life Calculator to determine the month and year of cigarette manufacture. Then record the month and year the carton should be picked up in the retail trade. MANUFACTURE PICK-UP MONTH YEAR MONTH YEAR True/False Circle the correct answer. 9. If a pack of cigarettes has a distinctive "crunch" when pressed, it is probably stale. True False 30
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CALL PROCEDURES Workbook Exercise #3 10. Precall Planning involves reviewing account knowledge after making a call. True False 11. Rotation minimizes the chances that products will become stale before purchased. True False 12. Rotation is accomplished through the use of code dates. True False Multiple Choice Circle the letter of the best answer. 13. The two ways to inspect for package freshness are: A. Squeezing pack and physical inspection B. Code dates and physical inspection C. Squeezing pack and code dates D. Bending pack and code dates 14. Your first activity upon entering a retail call is to: A. Rotate existing stock fixtures B. Review Retail Order Book with store clerk C. Install advertising on fixtures D. Introduce yourself to the person in authority 31
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15. The purpose of Precall Planning is to review: A. Account knowledge B. Work Plan objectives C. Review notes on Master List D. All the above 16. Account knowledge comprises: A. Inventory and sales volume B. Store address, call category and frequency C. Consumer demographics D. All of the above STOP This is the end of Workbook Exercise #3. I 32
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CALL PROCEDURES Program Stop #4 Workbook Exercise #4 True/False Circle the correct answer. 1. Jobber deliveries should occur once a week to ensure consistent ordering procedures. True False 2. Low stock is a condition in which a particular product inventory is below recommended inventory levels. True False 3. An out-of-stock occurs when a product brand is not carried by an account. True False 4. Form #699 has been developed by RJR to aid you in determining inventory levels. True False 33
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Multiple Choice Circle the letter of the best answer. 5. The inventory count helps you determine: A. What brands are not carried by the account B. What brands are low-in-stock C. What brands are out-of-stock D. All the above 6. RJR code dates refer to the month and year of: A. Factory shipment B. Jobber sale C. Manufacture D. Retail sale 7. Cigarette cartons are code dated on the: A. Top panel B. End panel C. Side panel D. Individual packages 34
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8. The inventory count should occur: A. Weekly B. During each call C. As needed D. Monthly 9. Restocking cigarette merchandisers with existing stock should occur: A. Before taking an inventory count B. After taking an inventory count C. Upon entering the store D. After sales presentation Fill in the Blanks. 10. Cigarette cartons in a retail call should be picked up from the trade in the month from date of manufacture. STOP This is the end of Workbook Exercise #4. 35
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CALL PROCEDURES Program Stop #5 Workbook Exercise #5 True/False Circle the correct answer. 1. You should make your sales presentation to the store manager. True False 2. Your sales presentation should be formal in all accounts. True False 3. Your sales presentation will depend upon conditions you have found in the account and your Work Plan objectives. True False 36
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CALL PROCEDURES Program Stop #5 Workbook Exercise #5 Multiple Choice Circle the letter of the best answer. 4. Inventory, which is completed in the retail outlet, identifies: A. How to sell B. What to sell C. Who to sell to D. When to sell STOP This is the end of Workbook Exercise #5. 37
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CALL PROCEDURES Program Stop #6 Workbook Exercise #6 True/False Circle the correct answer. 1. Effective use of the Retail Order Book in each account can significantly increase product availability. True False 2. The best method for the Sales Representative to ensure product availability for upcoming displays or coupon drops is to increase car stock. True False Multiple Choice Circle the letter of the best answer. 3. Who must sign the Delivered Order Form? A. Sales Representative and store clerk B. Jobber and store manager C. Jobber and Sales Represenative D. Store authority and Sales Representative .. 38
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Matching Match each term with its best definition. 4. Cash Sales 5. Exchange 6. Order Booking 7. Prebooking 8. Delivered Order A. Car stock is substituted for in-store product of equal value. B. Car stock is sold at the retail outlet. C. Sales Representative or store clerk enters extra order for delivery by the jobber to remedy low or out-of-stock conditions. D. Car stock is delivered and retailer is invoiced by jobber. ~ E. Jobber delivers merchandise and invoices the retailer for a special upcoming promotion. STOP This is the end of Workbook Exercise #6. 39
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CALL PROCEDURES Program Stop #7 Workbook Exercise #7 Fill in the Blanks. 1. Displays and POS can be either or displays. True/False Circle the correct answer. 2. The effectiveness of a store display is impacted by customer traffic, visibility and accessibility. True False 3. When placing advertising, you should strive only for quantity. True False v v O I 40
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Multiple Choice Circle the letter of the best answer. 4. Which of the following are temporary POS advertising? A. Pasters, posters and metal signs B. Check writers, shelf talkers and clocks C. Shelf talkers, riser cards and window pasters D. Metal signs, riser cards and cash register toppers STOP This is the end of Workbook Exercise #7. 41
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CALL PROCEDURES Program Stop #8 Workbook Exercise #8 Multiple Choice Circle the letter of the best answer. 1. When should the Reporting Function be completed? A. At the end of the day B. At the end of the week C. in the vehicle D. Before leaving the call 2. When should call reports be mailed? A. Once a week B. Twice a week C. Twice a month D. Monthly 3. The last activity for a Sales Representative in a retail account is: A. Check Store Master List for accuracy B. Complete appropriate reports and forms C. Take a second look at merchandisers and displays D. Check objectives off Work Plan Matching Match each item to its best description. 4. Rotation 5. Merchandising 1 42
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CALL PROCEDURES Program Stop #8 j7orkbook Exercise #8 6. Inventory Procedure 7. Billing and Order Procedures 8. Displays 9. Advertising 10. Reportina Function A. Promotes the sale of products at the point-of-sale B. Shows what brands are low-on-stock, out-of-stock, or not carried by the account C. Minimizes the changes of the product becoming stale before it is purchased D. Provides additional product exposure and increases impulse buying E. Summarizes what activities were accomplished in an account call F. Provides various methods for the sale and delivery of product G. Comprises all activities performed during a call to promote the sale of RJR products STOP This is the end of Workbook Exercise #8. 43
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CALL PROCEDURES Workbook Exercise Answer Key Exercise #1 Exercise #5 1. 2. 3. 4. 5. F C B E A 1. 2. 3. 4. Fa se, see p. CP-9 False, you may be ab1E True to write up thE B order and ask for a signature 6. D Exercise #6 Exercise #2 1. True 1. 2. 3. 4. 5. True B D C Independent and Chain 2. 3. 4. 5. 6. 7 False, see p• CP-12 D B A C Exercise #3 . 8. E D 1. Dec. '83, Aug. '84 2. Nov. '83, July '84 Exercise #7 3. Sept. '83, May '84 1. Temporary, permanent 4. Aug. '83, Apr. '84 2. True 5. Apr. '83, Dec. '83 3. False, see p. CP-13 6. Mar. '83, Nov. '83 4. C 7 J l '83 M h '84 . u y arc , 8. Feb. '83, Oct. '83 Exercise #8 9. True 1. D 10. False, always before call 2. A 11. True 3. C 12. True 4. C 13. A 5. G 14. D 6. B 15. D 7. F 16. D 8. D 9. A Exercise #4 10. E 1. False, more often if needed 2. True 3. False, see p. CP-8 4. True 5. D 6. C 7. B 8. B 9. A 10. Ninth 44
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Z ~ O U U Q ACCOUNTABILITIES . so4sz 177s
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ACCOLTNTABILITIES Program Stop #1 Workbook Exercise ##1 Multiple Choice Circle the letter of the best answer. 1. Which of the following states the purpose of defining accountabilities? A. To clarify job responsibilities B. To prevent missed sales opportunities C. To encourage productivity D. To structure the various activities of the Sales Representative E. A&D 2. You'll discover more sales opportunities during calls if you: A. Accomplish your objectives for the call in one-half hour B. Check for needs in all accountabilities C. Adhere to Work Plan directives D. Spend five minutes talking with the manager E. C & D
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3. The quality of your job performance impacts: A. RJR sales volume B. The tobacco industry C. The position of RJR in the industry D. Legislation regarding smoking E. A & C 4. An important aspect of meeting accountability objectives is: A. Working long hours B. A positive attitude C. Knowing how to drive well D. Staying in good health E. A pleasant speaking voice 46
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Matching In the space by each accountability, write the letter of the best definition from the list below. 5. Product Availability 6. Merchandising 7. Display/Advertising 8. Assignment Coverage 9. Administration/Communication 10. Selling/Presentation Skills A. Proper organization and handling of the various forms, reports, and correspondence used by a Sales Representative. B. Placement and maintenance of a sufficient amount of RJR point-of-sale advertising pieces to convey our selling message to the consumer. C. Effective use of the Six Steps of Systematic Selling, PSS, and RJR tools and aids to accomplish successful sales presentations. D. Achievement and maintenance of a complete stock of RJR brands; product to be properly rotated and located in positions which maximize sales potential. 47
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E. Display of RJR brands at the point-of-sale to obtain maximum product visibility and access- ibility to the consumer. F. Sales territory management; making calls on all the accounts within your assignment as dictated by their classification and frequency. STOP This is the end of Workbook Exercise #l. 4M N 10 48
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ACCOUNTABILITIES Program Stop #2 Workbook Exercise #2 Matching Match each of the concepts with the letter of its best definition. 1. Call Procedures 2. Six Steps of Systematic Selling 3. Programs 4. Vehicles 5. Accountabilities A. Fixtures and displays used to implement an account design plan. B. RJR planning and design tools used to maximize the potential of an account. C. Techniques used to achieve your job accounta- bilities. D. The result of using RJR programs and vehicles to accomplish selling goals. E. Guidelines for performing selling procedures in a logical and methodical manner. 49
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True/False Circle the correct answer. 6. Call Procedures will help you achieve your account- abilities. True False 7. Your annual Job Performance Review is tied directly to how well you do in each accountability. True False 8. The Performance Review consists of six categories containing objective, job-related criteria. True False 9. Your job performance is reviewed only once each year. True False 10. Your Development Plan is prepared jointly by you and Division Management. True False 11. The Development Plan outlines specific goals in each of the accountabilities. True False 12. while attitude is not a specific criteria, it will impact your accountabilities. True False STOP This is the end of Workbook Exercise #2. 50
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ACCOUNTABILITIES Program Stop #3 Workbook Exercise #3 Multiple Choice Circle the letter of the best answer. 1. The Retail Promotions program assists you in achieving product availability by: A. Supporting national advertising campaigns B. Offering payment to the retailer for displays he maintains for a period of time C. Providing a temporary incentive to encourage consumer purchase and trial D. Providing a selection of carton fixtures E. B & C 2. Car Stock is: A. A tool with which to achieve product availability B. A method of billing merchandise C. Your travel file and call bag D. The selling tools and aids kept in your vehicle E. Damaged goods taken out of your accounts 51
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3. Cash, prebooked, order booked, delivered order bill-through, and exchange are all examples of: A. Out-of-stocks B. Sales transactions C. Systematic selling D. Call procedures E. Programs and vehicles 4. When an out-of-stock is caused because the account's ordering procedures are not systematic, you may increase product availability by: A. Drawing the situation to the manager's attention B. Selling the manager on the value of stocking larger quantities of RJR products C. Selling the manager on the need for more fixture space for RJR products D. Demonstrating the techniques of inventory management E. Offering to place additional promotional displays 52
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5. When you find a product availability problem in a retail account: A. Use retail promotions, car stock, sales transactions, and inventory management as tools to solve the problem and meet your objectives B. Make additional calls to ensure that appropriate action is taken C. Let the manager know you have a problem D. Communicate the problem to Division Management E. Refer to your Work Plan STOP This is the end of Workbook Exercise #3. 53
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ACCOUNTABILITIES Program Stop #4 Workbook Exercise #4 Multiple Choice Circle the letter of the best answer. 1. Maximum product exposure is achieved by: A. Obtaining the necessary amount of store space for RJR products B. Obtaining the best location for RJR displays and fixtures C. Paying the retailer slightly more for displays than the competition does D. Brand incentives and other promotional programs E. A & B 2. Product availability and visibility are: A. The second accountability B. Necessary to catch and maintain consumer interest C. The result of good advertising D. The third call procedure E. Principles of inventory management 54
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True/False Circle the correct answer. 3. IMS provides a customized merchandising service through which you can make use of RJR package and carton fixtures and payment plans. True False 4. Self-service, controlled self-service, and non- self-service fixtures provide equal sales in retail outlets. True False 5. R.J. Reynolds provides more cigarette merchandising fixtures to retailers than any other company. True False 6. RJR merchandising efforts result in increased costs to the retailer. True False 7. One benefit of temporary displays to RJR and the retailer is that they stimulate impulse buying. True False 8. The retailer is responsible for maintaining clean, ~ 0 attractive POS advertising pieces. N True False 55
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9. An advantage to retailers of accepting permanent POS is that it usually provides a service. True False 10. An important benefit of temporary displays is visibility and accessibility to consumers. True False 11. The product availability, merchandising, and display/advertising accountabilities are interrelated and depend upon one another to increase sales volume. True False Matching Match each of the concepts with its best definition. 12. Permanence, dominance, impact 13. Temporary displays 14. Temporary POS 15. Permanent POS 16. Placement/Location A. Advertising pieces which perform a service to the retailer and provide courtesy messages to customers. 56
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B. Positioning RJR advertising to obtain the greatest visibility and exposure. C. The core concept around which RJR permanent adver- tising is designed. D. Units displaying RJR products placed for specified lengths of time as directed by the Work Plan. E. Various paper advertising pieces, such as shelf- strips, pasters and riser cards, which are normally tied in with brand promotions. STOP This is the end of Workbook Exercise #4. 57
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FCCOCNTABILITIES Workbook Exercise ;F5 Matching Match each of the concepts with its best 1. Coverage 2. Frequency 3. Call Ccunt Standards 4. Call Classification z . Weekly Cigarette Volu.:,e Program Stop 45 de:ir.ition. A. M:nimum guidelines, established by Div;s_or. Manace^ent, for the r.urr,ber of account calls ;•cu each day. B. The r.L:nber of times you make a sales ca_1 c:n an account based upon need ar.d sales potential. •:a{e C. A syster. of categories into which your accounts are crcuped based upon their weekly ciyarette vo:uT.e c-:: ` need. D. A sales figure derived from the total r.t.rrber of cartor. sold, whether by pack or carton, of all manufacturers' brands. 1 58
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ACCOUNTABILITIES Program Stop '5 kor;cbook Exercise #5 E. Making sales calls on all accounts within your assignment. Fill in the Blanks 6. The tools to help you achieve assignmer.t coverage obJectives are: k Multiale Choice Circle the letter of the best answer. 7. K-Calls refer to those accounts with: A. No outside metro locations B. High volume sales primarily by the carton . - C. Nc R.JR contracts D. All outside metro lecaticns E. High vclLn.e sales primarily by the YackagE 59
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ACCOliNTA.BILITIES Workbook Exercise #5 Progran Stop #5 8. A-Calls refer to those accounts with: A. High volume sales pri:narily by the package B. No assigned frequency C. Limited sales opportu:.ities D. High vclu,me sales primar:ly by the carton E. All metro locaticns 9. The purpose of the Work Plan is to: A. Provide sufficient retail selling quarter of the year ti:'1E --' -_ : B. Infc^r. you of periodic prcmotions ar.d act:v_ties which management has scheduled C. Assign call classifications to each account D. Assign frequencies for each account STOP This is the end of Workhoo:c Exercise s3. r 60
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ACCOUNTABILITIES Program Stop #6 Workbook Exercise #6 Matching Match each of these tools with its best definition. 1. Planning Schedule 2. Draft 3. Contract 4. Expense and Payroll Report 5. Field Sales Operating Fund A. A payment plan which allows you or your manager to write a check to retailers who have fulfilled display agreements. B. An agreement between RJR and a retailer for placement of displays or fixtures. C. A tool for planning your work by day and objective. D. An amount of money assigned to you to purchase car stock and pay on-the-job expenses. E. A tool for reporting costs you incur on-the-job as well as timely comments and suggestions. 61
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True/False Circle the correct answer. 7. The Reporting Function call reports should be comp]eted at the end of the day after your last call. True False 8. Data reported to you by Division Management helps to improve your planning and the execution of programs and company objectives. True False 9. The draft program allows you to write checks for business expenses such as purchasing car stock and gasoline. True False 10. Part of your Administration/Communication account- ability is keeping fixture and display contracts accurate and up-to-date. True False 11. If you encounter new anti-smoking activity, wait until the end of the week and report it on your Weekly Expense and Payroll Report. True False STOP This is the end of Workbook Exercise #6. ~ 62
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ACCOUNTABILITIES PROGRAM STOP #7 Workbook Exercise #7 True/False Circle the correct answer. 1. The Professional Selling Skills program teaches tech- niques for controlling the sales presentation and mak- ing effective use of RJR selling tools and aids. True False 2. After you have been introduced to PSS, you will not need to use the Six Steps of Systematic Selling when making your calls. True False Fill in the Blanks 3. Your six accountabilities are: 5. STOP This is the end of Workbook Exercise #7. 63
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ACCCUNTABILITIES Workbook Exercise Answer Key Exercise #1 Exercise #4 Exercise N6 1. E 1. E 1. D 2. B 2. B 2. A 3. E 3. True 3. B 4. B 4. False, see p. A-12 4. F 5. D 5. True 5. E 6. E 6. False, see p. A-13 6. False, see p. A-20 7. B 7. True 7. True 8. F 8. False, you are 8. False, see p. A-20 9. A 9. True 9. True 10. C 10. True 10. False, see pp. 11 . True A-21, 22 Exercise #2 12. C 13. D 1. C 14. E Exercise #7 2. E 15. A 3. B 16. B 1. True 4 A 2 . . False, see p. A-23 5. D Exercise #5 3. Prod. Avail. 6. True Mdsing. 7. True 1. E Disp./Adv. 8. True 2. B Ass,ign. Cov. 9. False, 3. A Admin./Comm. see p. A-7 4. C Selling/Pres. 10. True 5. D Skills 11. True 6. Call Classification 12. True Frequency Guidelines l Exercise #3 Planning Schedu e Work Plan 7. B 1. E 8. A 2. A 9. B 3. B 4. D 6. A 64
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96[ l Z.91) pS ' 3NO 1bKd t1A1MInk1*,nY1y71A1
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CIGARETTE MERCHANDISING, PART I Program Stop #1 Workbook Exercise #1 Multiple Choice Circle the letter of the best answer. 1. R.J. Reynolds pioneered cigarette merchandising in the early 1950s by: A. Introducing shelf payment plans for retailers B. Providing carton and package merchandisers to retailers C. Developing profitability programs to show retailers that cigarettes are a profitable item D. Providing an inventory service to retailers 2. Merchandising may be defined as: A. Profit from cigarette sales B. Point-of-sale advertising C. Displaying RJR products at the point-of- sale to obtain maximum visibility, accessi- bility and exposure to the consumer D. Providing package and carton merchandise to retail outlets 65
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True/False Circle the correct answer. 3. A main function of merchandising is to assist field sales in meeting their volume objectives. True False 4. Cigarettes provide profit to retailers from supplemental monies. True False 5. Our primary merchandising objective is to supply retailers with carton and package merchandisers. True False STOP This is the end of Workbook Exercise #1. ' 66
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CIGARETTE MERCHANDISING, PART I Program Stop #2 `7orkbook Exercise #2 Matching Identify each of the statements below as an attribute of the self-service (SS), controlled self-service (CSS) or non-self-service (NSS) merchandising methods. Use the abbreviations shown in parentheses. 1. Provides maximum sales and profits 2. Provides limited visibility/exposure and maximum security 3. Least effective method of merchandising 4. Resulting profitability outweighs initial pilferage concerns 5. Provides limited security and maximizes promotional rmonies 6. Preferred merchandising method True/False Circle the correct answer. 7. It is the responsibility of each Sales Representa- tive to determine where single cgrton access security fixtures will be placed. True False 67
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8. Our rationale for providing merchandisers is to ensure that our brands have maximum product exposure. True False 9. Division Management approval is necessary before any carton merchandiser can be placed. True False 10. As a general rule, we continue using merchandisers that are currently in retail outlets for as long as - possible. True False STOP This is the end of Workbook Exercise #2. I 68
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CIGARETTE MERCHANDISING, PART I Program Stop #3 Workbook Exercise #3 Using the Inventory Base Table in the STEP Binder, cal- culate the inventory base for each of the following brands. This supermarket places their cigarette order on Wednesday mornings and receives delivery on Monday morning. It is located in a state that allows Sunday sales. Brand Weekly Sales Inventory Base 1. Salem 35 cartons 2. Salem 100 14 cartons 3. Salem It. 25 cartons 4. Salem Lt. 100 17 cartons 5. Salem UL 4 cartons 6. Salem UL 100 6 cartons 7. Salem Slim Lt. 12 cartons 8. Using the information provided above, develop a plan-o-gram applying the brand family and propor- tionate loading strategies for loading the Salem family on a 180-row universal carton merchandiser. RJR brands have 2 full shelves on the merchandiser. 69
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9. The following plan-o-gram can be revised to allow for better utilization of brand family merchandising and proportionate loading. In the blank plan-o- gram provided, indicate how you would merchandise our products utilizing proper brand family and proportionate loading techniques. STOP This is the end of Workbook Exercise #3. 1 70
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... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . . . ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . ... ... ... ... ... ... ... Universal Carton Merchandiser Brand Family Load Plan , ,. ,. .. ,. .. ,. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. :._ , .. .. .. .. .. I
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... ... ... ... ... .. ... .:. ... ... ... ... ... ... Universal Carton Merchandiser Brand Family Load Plan . .. .. .. .. .. .. .. .. .. ~ .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r ... 504$2 1804
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NOW ' WINSTON K ' NOW MENTHOL WINSTON K • NOW 100 ~ WINSTON ULTRA ~ NOW 100 WINSTON ULTRA • NOW HENTHOL 100 WINSTON LIGHT 100 • WINSTON 100 WINSTON ULTRA 100 • WINSTON 100 WINSTON 100 • ------------------ MORE • MENTHOL, , • , , • • .......... MORE LIGHTS MENTHOL -----------------------------••--•- • WINSTON1 00 ................................... WINSTON 100 VANTAGE 100 WINSTON K VAN. ULTRA MEN. 100 WINSTON K VAN. ULTRA MEN. WINSTON LIGHTS VANTAGE ULTRA MEN. WINSTON LIGHTS VANTAGE ULTRA MEN. SALEM K VANTAGE MEN. SALEM K VANTAGE MEN. 100 DORAL II VAN. ULTRA MEN. DORAL II MEN. VAN. ULTRA SALEM ULTRA VAN. ULTRA 100 SALEM 100 BRIGHT SALEM ULTRA 100 BRIGHT 100 SALEM LIGHTS MORE MORE LIGHTS SALEM LIGHTS 100 SALEM LIGHTS 100 .................. .................. .................. ....... ....... ....... ........... ........... ........... ................. ...•.............. ....•.•........... CAMEL ' CAMEL FILTER ' VANTAGE CAMEL • CAMEL LIGHTS • VANTAGE CAMEL ' CAMEL FILTER HP ' VANTAGE CAMEL ' CAMEL FILTER HP ' VANTAGE CAMEL CAMEL LIGHTS 100 • VANTAGE SALEM SLIM LTS. CAMEL LIGHT HP • VANTAGE SALEM SLIM LTS. CAMEL • WINSTON BOX - (D 71
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CIGARETTE MERCHANDISING, PART I Program Stop #4 Workbook Exercise #4 Matching Match the appropriate retail situation to the contract plans listed. 1. SS-1/C3 5. SS-2/D56 2. SS-1/D12 6. NSS/B20 3. SS-1/A6 7. NSS/C21 4. SS-1/C5 8. SS-1/B6 A. Supermarket A has in place a 96-row double- depth carton merchandiser of which RJR has the entire top two shelves. The store sells 379 cartons per week. B. Retail outlet B sells 175 cartons per week and uses a 96-row single-depth merchandiser. C. Store C uses an RJR merchandiser placed non- self-service. The store sells 325 cartons per week. RJR brands have 40 rows of the available space. 72
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D. Store D sells 525 cartons of cigarettes a week, which are merchandised on the top two shelves of an RJR 72 row-extended-top-shelf merchandiser and two three-carton-wide extenders. E. Supermarket E uses RJR's 156-row universal carton merchandiser. The cigarette volume is 665 cartons per week. RJR's space is a full two shelves. F. Store F merchandises only RJR brands, using their gondola shelving, located approximately 6 feet behind the counter at eye level. The store sells 405 cartons per week, and RJR brands have 20 rows. G. Retail outlet G is a high volume outlet, 966 cartons per week. Cigarettes are merchandised on a 180-row universal carton merchandiser on the end cap in conjunction with 4' of retailer shelving. RJR occupies a full two shelves in this configuration. 73
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H. Supermarket H does not have an RJR carton merchandiser in place. Instead, they merchandise cigarettes on down aisle gondola shelving. The store sells 715 cartons per week, and RJR brands occupy 40% of the available space. STOP This is the end of Workbook Exercise #4. 74
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CIGARETTE r:ERCHANDISING, PART I Program Stop 45 Workbook Exercise #5 Identify each of the situations listed below as either a major, minor or non-violation of a contract. Then prepare a plan for confronting the retailer in Situation One. You will practice handling compliance problems by confronting the retailer (your trainer will play the part of the retailer). 1. Upon making your regular call to supermarket A, you discover that the retailer has placed a shelf above the top shelf on the 96-row double-depth merchan- diser in his store which limits the stacking height of the top shelf to 5 cartons. On this, he is displaying pipe tobacco and cigars. Major Minor No Violation 2. You find a Brown & Williamson Cigarette Center sign bearing an advertisement for Barclay suspended from the ceiling over the R.J. Reynolds carton merchan- diser. Major Minor No Violation 75
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3. Retail outlet B has a 2-shelf, self-service plan in effect. You discover that RJR's brands have been restocked on the merchandisers so that Dorals are on the top shelf and Winstons are on the second shelf. Major Minor No Violation 4. You find competitive shelf-strip advertising on the lower shelves of an RJR merchandiser. Major Minor No Violation 5. There are four rows of cigarettes made by a com- petitor on the top shelf of RJR's merchandisers. Major Minor No Violation STOP This is the end of Workbook Exercise #5. 76
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CIGARETTE MERCHAr'DISING, PART I Program Stop #6 Workbook Exercise #6 1. Cerretani Supermarkets is a high volume supermarket (1000 + cartons/week) located in Revere, Miss. Complete the following industry plan-o-gram by filling in the necessary blanks. Refer to the competitive contract information in your STEP Binder. STOP This is the end of Workbook Exercise #6. 77
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0 ® .ti0 r'0jku!!D MlACMA0101514~ sLArIu ~' CARTON MERCHANDISER PLAN-O-GRAM for CERRETANI S1P. MARKFTC RJR Plan Authorized by Date EXERCISE RJRi fo,m 4078 MoKrNlr ANNUAL R.,, ~om COMPANY Rows X Rows Capacity % Capacity PAYMENTS PAYMENTS 9 = f 56 17 R _ .ynoW. R.J. l AmK can = 0.00 = & Mnnl .msa+ Brown b 4 5 Ni M P p ort fi l O.rd Lor SO = o_nn = M uqq.tt 8 y.ri 1792 1 nQZ = Sinn_nn = r l n ^ 68 T a a~ , ~ r_ otM 6 Wide Ext. 96 D 6 Wide Ext. D/D 7 High RJR 6 RoYs 7 High Bava B,iR lfi D/D 7 High RJR 6 Rows 5 High _ 5 High i ~ 5 High 6 RoWs R ._._____16 Rove --- RJR, 6_ Rows 5 High P. Morris 6 Rows _ j 5 High I P. Morris 16 Rows 5 High P. Morris 6 Rows 5 High B b W ~ 6 Rows 5 High ATC 16 Rows 5 High ATC 6 Rows i _ 5 High ~ Lorillard 6 Rows 5 High 5 High Lorillard 6 Rows Lorillard 16 Rows 5 High P. Morris 6 Rows 5 High I ~.6M 5 Rows BbW 6 Rows P.Morris 5 ws Z18t r8fi0S 7A tP. Morris _6 Rows 1 e 19D0 R. J. Rsynoldn Tobwco ComprW 5 High
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CIGAR Workb ETTE MERCHANDISING, ook Exercise Answer PART I Key Exerc ise #1 Exercise #4 1. 2. 3. 4. 5. Exerc 1. 2. B C True True False, see p. MI-5 ise #2 SS NSS 1. D 2. G 3. B 4. E 5. H 6. C 7. F 8. A Exercise #5 3. 4. 5. 6. 7. 8. 9 NSS SS CSS SS False, see p. MI-8 True True 1. Major 2. Major 3. No Violation 4. Minor 5. Major . 10. True Exercise #6 Exerc ise #3 1. Industry plan-o-gram attached; review with 1. 77 trainer 2. 31 3. 55 4. 38 5. 9 ` 6. 14 7. 27 8. Review plan-o-grams with trainer 9. Review plan-o-grams with trainer 79
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U »DvOW6Qt9 MtRuwMas+ec stentltA ) RJRI fodM 079 Rw toreo coMPANr R. J. fisynolds Amerlcan e.oMm a w1Nl.mson Phlllp Mo.ris lorillerd uygett a Mysn TotN CARTON MERCHANDISER PLAN-O-GRAM for a D 10 R Pl R Rows 5f 6 Wide Ext. D/D 7 High RJR 6 Rows 5 High RJR 6 Rows 5 High P. Morris 6 Rows 5 High • 8bW 6Rows I ~ 5 High t 1Lorillard 6 Rows q 5 High I i P. Morris 6 Rows +l8t Z91t0S AU4Jw1.6h 1\1. 1 (ANSWERS IN PARENTHESES) Authorired by Date Z Rows Capacity x Capacity MONTNI PAYMENT r S ANNUAI. PAYMENTS a =12 93, 00) _ ( _ (1116,00) ____ 33- ---( i _'("'_`) ~ , _ (13.1) (220) (12.3) : (5T8.Q0) ;_(9(z,00).__ (7.1) 120 6.7 : 0.00 26.8 (450) (24-1) _ (66.IL4) :_1792-00? (16.7) (280) (15.6) = t83.00) =__,(996.00) (3.0) sn (2.8) = 0_00 ~ iooz _U92- i nnz : cznn n s(36.n-O0l 96D 7 High RJR 16 Rows 5 High RJR 16 Rows 5 High P. Morris 16 Rowg 5 High ATC 16 Rows 5 High Lorillard 16 Rows 5 High if ' 1 S Rows BbW 6 Rows P.Morris LbM 1 Rows, 80 6 Wide Ext. D/D 7 High ,JR 6 Rows 5 High JR 6 Rows 5 High '. Morris 6 Rows 5 High Morris 6 Rows { e 19s0 R. J. Rsynolds ToS.oco ICM+orry
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wIcR%.rv'uvvi,MIw WMTWO 50µ82 1815 It H QI CL 0 Z 0 z U 0
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CIGARETTE MERCHAh'DISIrIG, PART II Workbook Exercise #1 Program Stop #1 Matching Write in the letter of the statement which best relates to each merchandiser style listed. 1. 18-Column Standard 2. Gondola End Frame 3. Slide-By 4. Centralized Package 5. 20-Column Standard 6. Overhead Merchandiser A. Free-standing, multi-sided unit, mobile to take best advantage of busiest checklanes. B. Provides an alternate, usually non-self service, location for merchandising cigarettes and a prominent advertising advantage. C. Two metal merchandisers combined into one unit. Front units exclusively RJR. D. Low-profile, gravity-fed fixture for mounting on a wall, floor stand, or checklane. E. U-shaped unit, predominently end-facings, with full facings in top row. F. Gravity-fed fixture for mounting on a wall, floor stand, or checklane. 81
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Fill in the Blanks 7. Two reference manuals for information cn package fixturing are: STOP This is the end of Workbook Exercise #1. 82
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CIGARETTE MERCHANDISING, PART II Program Stop #2 Workbook Exercise #2 , Multiple Choice Circle the letter of the best answer. 1. In supermarkets, the most desirable merchandiser placement is: A. Standard metal merchandisers at backbar B. Slide-bys at alternate beltline C. Gondola end frames on high traffic aisles D. Standard metal merchandisers at beltline 2. Placement of security features on merchandisers are: A. Considered whenever a retailer suspects pilferage B. Governed by division guidelines C. Used regularly in most divisions D. Provided upon retailer request 3. in stores other than supermarkets, which type of merchandiser placements are the most desirable? A. Standard metal B. Slide-by C. Overhead D. No specific order of preference 83
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CIGARETTE MERCHANDISING, PART II Program Stop #2 Workbook Exercise #2 Fill in the Blanks 4. If the existing merchandisers in a retai]l outlet are in good condition and additional space is needed for RJR brands we consider placing new merchandisers. A. Would B. Would not 5. When placing package merchandisers, always install them in a location. 6. Each time you make a package merchandiser placement, you should obtain percent of the space for the RJR brands. A. Adequate B. 30 C. 40 D. 50 STOP This is the end of Workbook Exercise #2. N 84
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CICARETTE r?EFCF?aNDISI`;C, Pr.RT II PrcSran Sto; P: Vcrkbook £.xerci se Q I•Iultiz'e Choice Circle the letter of the best answer. , I . The fi rst step when p_acinc a merc!:a::Ciser is A. Deterr.ir.e the prime focal point B. Deter+.,i-:e RJR's space Klocaticn C. Leterm_ne the proper nerchanCiser(s) D. I'eterni:.E the proper prcpcrticnate :cac Pranc: icent:ficat=crn tags and pack `acs:-.:_es a.e available for: A. Determininc a merchandiser locatien B. Labelinc a merchandiser C. Assisting ir, loading a merchandiser D. Planning space or. a merchandiser When merchandising P,,:R hrancs, you shou:c: A. Apply brand family merc:)ancisir.c B. r: p' y prcFc: t ior.a =e loac i:.5 C. Provide merchandiser brand identi_`icatic.^. D. All of the above 65
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4. In slide-by merchandisers, the space reserved for RjR brand is: A. At the side of the :_xture closest to the cash register B. Dependent upon location cf the fixture C. iz the front merchar•diser, and in the rear r,:erchar.diser as necessarv D. In the tcp row of all f::•:tu:es Z. Brand 'ami'_v merchandisinc: :,. Calls for each brand ~ be :1aciEd s_::e- - B. side in adjacent rcw: Takes each brar.d's• sa:es into co:.s:dera:_s:: C. Is loading all categcries »_t^_.n a brar.d D. tccether on the rr.echa^d:ser, whe-: ;css:!::e Allcws more scace fc_ growth brands 6. The objective of our package merchandiser s:cr.ase rrccram is: A. Outlined in your guzr=erly '_cad pla:: B. To keep all advertising current in regard to c;:_ prcr.~ctions , 26
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7. The following plan-o-gram can be revised to allow for better utilization of brand family merchan- dising and proportionate loading. In the blank plan-o-gram provided, indicate how you would mer- chandise our products utilizing proper brand family and proportionate loading techniques. The follow- ing conditions also exist: o Sales of Winston Lights have doubled o Need to merchandise Bright and Bright 100s in connection with new brand introduction o Sales of Winston Ultra Light 85s and 100s have decreased significantly STOP This is the end of Workbook Exercise #3. 87
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Q 3 -- FULL COLUMN HALF COLLTMN ____ _ .------- - - -__- -_ i WIN KING WIN BOX ~ I t WIN KING i : SALEM ULTRA ; ` WIN KING 4 SALEM ULTRA 100 ~ i WIN LIGHTS i NOW ! , WIN LIGHTS 10 ~ , ! NOW MEN I 1 ~ ` WIN ULT LTS MORE ~ ~ 1 I WIN ULT LTS 1 MORE MEN ~ WIN 100 NOW 100 SALEM NOW 100 MEN ~ SALEM LTS MORE LTS SALEM 100 MORE LTS 100 SALEM LTS 100 CAM LTS ~ ~ CAMEL CAM LTS 100 i CAMEL CAM LTS 100 STERLING F CAM LT H.P. ` STERLING M CAM LT H.P. VANTAGE VAN 100 MEN VAN ULTRA 100 VAN ULTRA VAN ULTRA MEN VAN ULTRA VAN MEN VAN 100 CAMEL FILTER SALEM SLIM LTS I ! I i ~ 3 i D n ~ 0 ~ ~ ~ ~ cr m 0 9 pr m ~ A ~ t') -fD y n n w ~ ~ tG z O a m ,. 0 w v N m m ~ D z Q 88
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HJHT fam 4077 H.w. 14A0 ~ rh%.niatst Mtrlt,:hANU1,tM NLAN-V-GRAM S0µ92 1sz4 fa Workbook Exercise #3 A1IthOllZed by Merchandiser. Question #7 ~ Date R1JR ACITHONIZED SPAQE 01980 R.J.R.ynolds Tob.oco CanpSny "mensione: Width x Hslqht x Ospth
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CIGARETTE MERCHANDISINC, PART II Program Stop #4 Workbook Exercise #4 True/False Circle the correct answer. 1. Slide-bys, overheads and gondola end frames are covered by written agreement between RJR and the retailer. True False 2. All RJR merchandisers should be covered by a verbal or written agreement. True False 3. The written agreement for RJR's standard metal package merchandiser requires that P.JR may place an advertising sign on the merchandiser. True False 4. There is no difference in the merchandising strategies you employ when working with independent and chain stores. True False t!` 90
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5. A contract provides for monies to be paid quarterly to retailers for permanent display of RJR products. True False 6. The slide-by merchandiser agreement requires that RJR brands occupy 40% of the rear merchandiser. True False STOP This is the end of Workbook Exercise #4. 91
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CIGARETTE MERCHANDISING, PART II Program Stop #5 Workbook Exercise #5 Matching Write in the letter of the statement which most closely pertains to the display plan listed. 1. Permanent Checklane Display 2. Specialty Store Permanent Counter Display 3. Display for Centralized and Gondola End Frame Fixture 4. Permanent Security Package Display 5. Permanent Counter Display A. A plastic or wire unit designed to be placed primarily on the counter. B. A 20-pack display for smoke shops, hotels, gift shops, etc. C. A special display for use in high pilferage areas. D. Displays consisting of RJR brands faced up in a highlighted area in the top of certain merchan- disers. E. 30-pack display used in multi-checklane stores which sell a minimum of 300 cartons per week primarily by the carton. STOP This is the end of Workbook Exercise #5. 92
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CIGARETTE MERCHANDISING, PART II Program Stop #6 Workbook Exercise #6 Read the following information, and determine and identify any compliance problems that may exist in this account. If you find a problem, outline the steps you would take to remedy it. Store A is a high-volume package outlet in your assign- ment. They have a Centralized Package Merchandiser. They also have a permanent counter display on the counter beside the main cash register. On a recent call to this store, you found the Permanent Counter Display moved from the main cash register to a position beside the secondary cash register. You also found the Permanent Counter Display empty, except for five packages. The Centralized Package Merchandiser has competitive product full-faced in the top slots. RJR advertising is in good condition. List any problems that exist in this account: 93
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outline a procedure for dealing with any problems you listed above: STOP This is the end of Workbook Exercise #6. 94
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CIGARETTE MERCHANDISING, PART II Program Stop #7 Workbook Exercise #7 True/False Circle the correct answer. 1. Brown & Williamson does not offer a permanent paid counter display. True False 2. RJR does not consider display positioning among the most important criteria for selling a Permanent Counter Display. True False Fill in the Blanks 3. List three other tobacco companies which offer a permanent paid counter display. 4. The PCD Contract helps you maintain that very important on the selling counter. 95
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Using the competitive permanent counter display payment chart on PP. MII-27 and 28 of your binder, compute the competitive monthly payments of the following permanent counter displays. 5. Philip Morris, volume 250 cartons, 50 packs displayed 6. American, volume 150 cartons, 60 packs displayed 7. P. Lorillard, volume 185 cartons, 135+ packs displayed, includes primary/supplemental/2nd/3rd displays STOP This is the end of Workbook Exercise #7. 96
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CIGAR Workb ETTE MERCHANDISING, PART II ook Exercise Answer Key Exerc ise #1 Exercise #4 1. D 1. True 2. E 2. True 3. C 3. False, see p• MII-11 4. A 4. False, see P• MII-13 5. F 5. True 6. B 6. False, see P• MII-3 7 Ci arette Merchandisin . g g Manual and Merchandisers Exercise #5 and Component Parts Catalogue 1. E 2. B Exerc ise #2 3. D 4. C 1. D 5. A 2 B . 3. D Exercise #6 4. A 5. Visible Review procedure with 6. A trainer Exerc ise #3 Exercise #7 1. C 1. False, see p. MII-26 2. B 2. False, see p. MII-26 3. D 3. Philip Morris, 4. C Brown & Williamson, 5. C P. Lorillard, and 6. E American 7. Review plan-o-gram 4. Primary position with trainer 5. $20.00 6. $12.25 7. $19.50 97
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' DIRECT AiCCOUNTS so4e2 1e33 F- Z ~ 0 U 0 Q U W 0
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DIRECT ACCOUNTS Program Stop #1 Workbook Exercise #1 Multiple Choice Circle the letter of the best answer. 1. Direct accounts purchase tobacco products directly from: A. Cigarette factories and jobbers B. Jobbers and wholesalers C. RJR and other manufacturers D. RJR and jobbers Matching Match each term with its best definition. 2. Jobbers 3. Direct Chains 4. Direct Vendors 5. Military Accounts 6. Institutions A. Wholesale dealers servicing retail, chain and independent accounts. B. Federal properties purchasing directly from RJR who are exempt from state taxes. 98
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C. Large companies who purchase direct to supply their cigarette machines. D. Retail outlets under the same name serviced by a central warehouse affiliated with the retail outlets. E. Facilities, usually state or federally operated, which house large numbers of people and buy direct from the manufacturer. STOP This is the end of Workbook Exercise #1. 99
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DIRECT ACCOUNTS Program Stop #2 Workbook Exercise #2 Multiple Choice Circle the letter of the best answer. 1. During which month from date of manufacture should cigarette cartons in a direct account be returned to Winston-Salem. A. Fifth B. Seventh C. Eighth D. Sixth 2. Code dates for smoking tobacco humidors are located on the: A. Top lid B. Side of humidor C. Bottom lid D. Not coded 100
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True/False Circle the correct answer. 3. Code dates for all RJR smoking tobacco pouches are located on the pouch. True False 4. Plug tobacco products are individually coded. True False STOP This is the end of Workbook Exercise #2. 101
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DIRECT ACCOUNTS Program Stop #3 Workbook Exercise #3 True/False Circle the correct answer. 1. The Report of Standing Orders shows the number of cases of each RJR brand a Direct Account has on standing order. True False 2. The Report of Standing Orders shows the days cases are received and the date of the last permanent change. True False 3. The Domestic Customer Sales Analysis Sheet contains a breakdown of each account's monthly orders. True False 4. Rush orders, extra sales and total sales i information is given on the Domestic Customer Sales Analysis Sheet. True False 102
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Multiple Choice Circle the letter of the best answer. 5. The Domestic Customer Sales Analysis Sheet and the Report of Standing Orders are used for: A. Analyzing direct accounts B. Determining the need for S/O change C. Identifying additional sales opportunities D. All of the above STOP This is the end of Workbook Exercise #3. 103
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DIRECT ACCOUNTS Program Stop #4 Workbook Exercise #4 True/False Circle the correct answer. 1. One type of promotion used with direct accounts to introduce new brands is called Introductory Discount Allowance. True False 2. The number of cases of a new brand RJR will sell to a jobber during a specified introductory time period is called an allocation. True False 104
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Multiple Choice Circle the letter of the best answer. 3. The purpose of direct account promotions is: A. To encourage direct accounts to stock a particular brand B. To assist you in achieving maximum brand representation in the warehouses C. To encourage direct accounts to warehouse more products for a longer period of time D. A and C above E. A and B above 4. Allocations are based on: A. The figures jointly agreed upon by the account and the Sales Representative B. The account's regular sales volume of similar brands C. The account's total cigarette sales volume D. The account's sales volume of all RJR brands E. A and B above STOP This is the end of Workbook Exercise #4. 105
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DIRECT ACCOUNTS Program Stop #5 Workbook Exercise #5 True/False Circle the correct answer. 1. Merchandising for military accounts is similar to retail merchandising. True False 2. Direct accounts can be effective promoters of RJR merchandise in retail accounts. True False 3. Advertising in direct accounts is limited. True False 4. You are responsible for calling on all your direct accounts once a week. True False 5. The Jobber Order Form is the proper form to use when ordering any products for your direct accounts True False 106
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DIRECT ACCOUNTS Program Stop #5 Workbook Exercise #5 6. In exchange for packing and shipping back damaged goods, RJR pays the jobber 15 cents per carton and 10 percent of the cost of the tobacco. True False 7. A standing order is an automatic shipment of a predetermined quantity of product on specified days. True False Multiple Choice Circle the letter of the best answer. 8. Distribution incentives: A. Provide payments to a direct account for the total quantity purchased and distributed during a specified time B. May need to be changed periodically to adjust for changes in sales volume C. Assist you in maintaining proper inventory control D. A and C E. A, B, and C 107
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DIRECT ACCOUNTS Program Stop #5 Workbook Exercise #5 9. In order for the jobber to receive proper payment for return of unsalable goods, the merchandise must be shipped back to: A. Winston-Salem with a Damaged Goods Form properly filled out B. The tax stamping facility with a Damaged Goods Form properly filled out C. The wholesaler with a bill through ticket properly filled out D. The regional jobber with a Damaged Goods Form properly filled out E. Winston-Salem with a bill through ticket properly filled out 10. In which of the following damaged goods cases, is it within company policy to pick up cigarettes for return? A. Smoke and fire B. Water and smoke C. Merchandise in salable condition D. Crushed or expired shelf life E. All of the above STOP This is the end of Workbook Exercise #5. 108
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DIRECT ACCOUNTS Workbook Exercise Answer Key Exercise #1 Exercise #4 1. 2. 3. 4. 5 C A D C B 1. 2. 3. 4. True True E B . 6. E Exercise #5 Exercise #2 1. True 2. True 1. B 3. True 2. A 4. False, as necessary 3. True to maintain adequate 4. False, see p. DA-5 distribution 5 . True Exercise #3 6. False, see p. DA-9 7. True 1. True 8. A 2. True 9. A 3. True 10. D 4. True 5. D 109
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VENDING ACCOUNTS 50482' 1846 CJ~ N- Z ~ O U U ¢
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VENDING ACCOUNTS Program Stop #1 Workbook Exercise #1 True/False Circle the correct answer. 1. Vending, the merchandising of cigarettes through machines instead of over-the-counter, operates like a miniature market, and is an effective means of maximizing the distribution and sales of RJR products. True False 2. An independent vendor is one who owns the machine and the store or business where the machine is located. True False 3. A vending company owns a number of machines, which it places in stores and businesses. Commissions are usually paid based on the number of packs sold in the machine. True False 4. The frequency of your visits to a vending account depend upon the vendor's needs, the sales volume and the number of machines to be serviced. True False 110
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VENDING ACCOUNTS Program Stop #1 Workbook Exercise #1 5. 4:hen Rotating and Merchandising Product, checking RJR and competitive brands for product freshness will help you identify dead columns. True False 6. A Brand Payment Allowance is an incentive for vendors to place RJR products. True False Multiple Choice Circle the letter of the best answer. 7. Vending sales represent approximately: A. 20€ single pack sales, and 20% total cigarette sales B. 10% single pack sales, and 20% total cigarette sales C. 10% single pack sales, and 10% total cigarette sales D. 21% single pack sales, and 8% total cigarette sales 111
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8. One of the selling approaches with vending accounts is Dead Column Selling. A dead column is: A. An empty column B. A column whose mechanism isn't working properly C. A full column D. A column of slow-selling cigarettes 9. Multiple Row Selling involves: A. Placing additional columns of a fast-selling brand B. Eliminating unnecessary duplication of brands C. Placing all RJR products in adjacent columns D. Selling numerous new placements of RJR products 10. Allowance Selling is the payment of money to the vendor for placing RJR brands in his machines through: A. Vending Display Plans and Bonus Placement Offers B. Vending Machine Bonuses and Bonus Brand Contracts C. Vending Display Plans and Vending Bonus Offers D. Vending Contracts and Bonus Placement Offers STOP This is the end of Workbook Exercise #1. 112
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VENDING ACCOUNTS Program Stop #2 Workbook Exercise #2 Multiple Choice Circle the letter of the best answer. 1. The account knowledge information that is particular to vending company accounts includes: A. Standard load plan and size of the route sales force B. Number of machines, machines with 100mm capacity and type of equipment C. Percentage of monies earned to unearned and if cigarettes are a main profit item D. A and B E. A, B and C 2. Your sales presentation to a vendor should: A. Convince him to place more RJR brands B. Demonstrate how placement of RJR brands can increase his sales C. Convince him to place only RJR brands in his machines D. Show him how much money it will cost him to participate in the Tru-Check system E. A and B m 0 ` 113
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3. Service Selling, through the use of Tru-Check and Ride With, increases vendor sales and: A. Simplifies vendor procedures B. Keeps vending machines full of RJR products C. Means the Sales Representative services the vending machine D. Maximizes RJR distribution E. A and B 4. The purpose of the Ride With program is to: A. Replace slow selling brands B. Eliminate multiple columns C. Ensure product rotation for freshness D. Implement RJR's vending program E. All the above 114
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5. The Vending Bonus Offer provides additional payments to vendors during a specified period of time, and requires the vendor to: A. Accept placement of a specified brand B. Maintain a specified brand during the offer C. Place any additional brand or new brand D. Pay special attention to RJR brands during the offer E. A and B 6. Because the point-of-purchase is a vending machine, merchandising for vending company accounts involves: A. Machine location and product mix B. Machine capacity and full category representation C. Machine location and product positioning D. Machine capacity and product positioning E. All of the above k 115
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7. Product positioning, placing RJR brands in the most highly visible positions in the machine, is important because it: A. Improves brand exposure B. Increases sales C. Adds to merchandising impact D. Benefits the vendor as well as RJR E. All of the above 8. Inventory management ensures that the vendor will not run out of product by considering: A. Average weekly sales and total machine capacity B. Ideal inventory level C. Your "build-to" figure D. Service frequency E. All of the above True/False Circle the correct answer. 9. Vendors reimburse RJR the amount of the Tru-Check charge if increased sales result. True False 116
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10. The Vending Display Contract is a Direct Cash Incentive Program, through which the vendor receives payments based on the number of RJR brands placed in the vendor's machines. True False 11. As an extra service to a vending company account, you might supply the vendor with RJR label inserts, price decals, vending toppers or other RJR supplies and POS materials for his machines. True False 12. Machine location is important because the more visible and accessible the machine is, the higher the sales. True False Matching Match each of the following to its 13. Dead Column Selling 14. Category Selling 15. Service Selling 16. Multiple Row Selling 17. Allowance Selling best definition. A. Eliminates unnecessary double and triple rows of brands in a machine. B. Involves payment to the vendor for placing RJR brands. m so f I 117
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C. Replaces slow-selling products with RJR brands. D. Involves the Ride With and Tru-Check programs. E. Places brands to satisfy the largest possible percentage of smoker preferences. STOP This is the end of Workbook Exercise #2. 118
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VENDING ACCOUNTS Program Stop #3 Workbook Exercise #3 True/False Circle the correct answer. 1. The three key elements in a sales situation are precall research, preparation, and presentation. True False 2. In a sales call, your objective is to demonstrate your knowledge of the vendor's business. True False 3. A standard load plan stipulates which brands are placed in each of a vendor's machines. True False 119
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Multiple Choice Circle the letter of the best answer. 4. The facts you use in a sales presentation should show the vendor: A. How he can benefit from your plan B. How much you know about his company C. What he must do to implement your plan D. How RJR can profit from vending business E. Why a standard load plan is inefficient STOP This is the end of Workbook Exercise #3. 120
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VENDING ACCOUNTS Program Stop #4 Workbook Exercise #4 Multiple Choice Circle the letter of the best answer. 1. The permanence/dominance/impact objective of vending POS materials is to: A. Enhance the appearance of the vending machine B. Call attention to the RJR brands in the machine C. Enhance RJR's image as the leading manufacturer D. Call attention to RJR as a cigarette manufacturer E. B and C True/False Circle the correct answer. 2. The Tru-Check contract secures the vendor's commitment to the program, and RJR sponsors the vendor by paying the Tru-Check charge, in return for placement of RJR brands in the vendor's machines. True False 3. The Tru-Check Vending Route Card is used to verify brand placements for the sponsorship of RJR. True False I 121
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VENDING ACCOUNTS Program Stop #4 Workbook Exercise #4 4. A placement report is used if a Tru-Check Placement Payment Report is not available, in order to verify brand placements before payments are made to the vendor. True False 5. The draft program is not used in vending accounts. True False STOP This is the end of Workbook Exercise #4. 122
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VENDING ACCOUNTS Workbook Exercise Answer Key Exercise #1 Exercise #3 1. True 1. True 2. True 2. False, see p. V-14 3. True 3. True 4. True 4. A 5. True 6. True Exercise #4 7. D 8. D 1. E 9. B 2. True 10. C 3. False, see p. V-12 4. True Exercise #2 5. True 1. E 2. E 3. A 4. E 5. E 6. C 7. E 8. E 9. False, see p. V-12 10. True 11. True 12. True 13. C 14. E 15. D 16. A 17. B 123
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50482 1861
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SALES TRAINING ENTRY PROGRAM Commodity No. 083899 Revised 6/85
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TABLE OF CONTENTS Introduction RJR and The Industry RJR and The Marketing Process Operating Guidelines Call Procedures Accountabilities Merchandising I Merchandising II The Smoking and Health Controversy Direct Accounts Vending RJR Draft System Product Profile Glossary
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INTRODUCTION "Nothing happens until someone sells something!" This is the motto that the Sales Force lives by. R. J. Reynolds Tobacco Company depends on its Sales Force to sell the products and programs needed to increase its profits and to strengthen its position in the tobacco industry. You, as a Sales Representative, play a vital role in the success of R. J. Reynolds Tobacco Company. You are the individual who constantly works in the marketplace and has the final challenge and responsibility for carrying out our various programs. The degree of success that you will enjoy depends on the manner in which you prepare yourself. This preparation is most important in today's complex and competitive market. The Sales Training Entry Program (STEP) which you are now beginning is designed to better equip you to compete and to excel in today's marketplace. The program consists of audio-visual programs, reading materials, exercises, and on-the-job training. The Training Binder deals with the many 'areas ne.cessary to learn your new job. The Binder is designed as a reading source and as a reference source. Some sections are comprised of reading materials necessary to under- stand concepts and procedures. Other sections include facts and figures both for information-and for future reference. By applying yourself to these areas and with the help and guidance of Division Management, you will become a valuable and productive member of R. J. Reynolds Tobacco Company.
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RJR AND THE INDUSTRY 504,8 2 1865 Z I 0 Z
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RJR AND THE TOBACCO INDUSTRY Introduction Some background information is helpful before you learn about the marketing process and your accountabilities. The following two sections include facts and information about the domestic and international tobacco industry, types of tobacco, tobacco processing, tobacco consump- tion, and the tobacco manufacturers. Also, information about RJR Industries, Inc. and each of the subsidiaries gives a brief overview of your company.
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GENERAL INFORMATION Tobacco Growing States Throughout the entire span of American history, tobacco has played a major and sometimes critical role in the economic and social development of our nation. The first successful tobacco crop in 1612 was the economic salvation of the Jamestown Colony. Today, millions of people on farms and in industrial and commercial enterprises are wholly, or in part, dependent on tobacco for their livelihood. Tobacco is grown in twenty-two states and in the Commonwealth of Puerto Rico. Tobacco is the fifth largest crop in the United States, and only corn, soybeans, wheat, and cotton account for more cash dollars. U.S. Tobacco Sales U.S. expenditures for tobacco products are estimated at over eighteen billion dollars annually. World Production It is estimated that world production of tobacco is about 13.04 billion pounds annually with the following nations accounting for the production: 9 co TI-2 °i ~
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MAJOR TOBACCO PRODUCING NATIONS Annual Production (in i ions o Nation ounds * China 3.1 U.S. 2.0 India .99 Brazil .69 Russia .66 Turkey .44 Japan .32 Bulgaria .28 Korea .28 Canada .28 Greece .26 Italy .26 All other nations combined 3.48 TOTAL 13.04 * Reflects 1981 year end estimates from Tobacco Institute.
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TYPE -- ORGIN -- USE OF TOBACCO Many varieties of tobacco are used to blend the various cigarette and tobacco products produced. The following breakdown separates the tobacco by type, origin, and use. Type Ori in (state Principal w ere grown) Use 1. Flue-cured N.C., S.C., Fla., Cigarettes Va.., & GA. 2. Fire-cured Va., Tenn., Ky. Snuff 3. Burley Light Ky., Tenn., N.C., Cigarettes, Air-cured Va., W. Va., Smoking Ohio, Ind., Mo. Tobacco 4. Maryland Lt. Southern Maryland Cigarettes Air-cured * 5. One Sucker Ky., Tenn. Chewing Dk. Air-cured Tobacco 6. Green River Ky. Chewing Dk. Air-Cured Tobacco 7. Cigar Filler Pa., Ohio Cigars, Types -- Loose-Leaf Air-cured Chewing 8. Cigar Wrapper Mass., Conn. Cigars Types -- Air cured **9. Perique La. Smoking Air-cured Tobaccos 10. Sun-cured Va. Chewing 11. Cigar Binder Wisc. Cigar, Loose-Leaf Chewin g * A shoot from the root or a lower part of the stem of the plant. Lm ** Strong-flavored. 0 ~ ab N TI-4 I ~
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TOBACCO PROCESS ring Curing The first step in preparing harvested tobacco for market is curing. The curing process generally takes about three months, and it is accomplished basically in one of three ways: 1. FLUE-CURING -- 2. AIR-CURING -- 3. FIRE-CURING -- Heated air within the barns. Natural air-drying process. built on the barn floor. Dried by small fires Flue-curing is generally associated with some cigarette tobaccos. Air-curing is associated with cigarette tobaccos, cigar, and chewing tobaccos. Smoking tobaccos for pipes and roll-your-own smoking is generally air- cured. Fire-curing is generally used with snuff. Auction Once curing has been completed, the tobacco goes to auction in one of twelve states from Florida to Maryland and in Kentucky and Tennessee. RJR employees and many buyers attend these auctions. These buyers are trained experts in tobacco quality, and their mission is to purchase the best available tobaccos in the right quantities for the needs of our customers. It sounds fairly simple, but the catch is the fact that they are buying a product which may not be used for two to three years. Processing Once tobacco is purchased by RJR, it goes through a series of processes before it begins its "long sleep." Tobacco must be cleaned, stemmed, and redried. The tobacco is then pressure-packed for its aging in storage sheds. NOTE: Unlike cigarettes, tobacco for cigars is sent to packing houses in bales where it is arrang- ed in "bulks" for fermentation. TI-5
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A in During the two to three years that must pass during the aging process, the tobacco undergoes a series of natural "sweats." This accomplishes the all-important mellowing process. This process is accomplished in "hogsheads" and "Tersa Bales" which are containers used for storage. They generally weigh in the area of 1,000 lbs. apiece, containing enough tobacco to produce 2,800 cartons of cigarettes. Once the tobacco has passed through the aging process, it is ready for manufacturing. Manufacturing The trailer with "hogsheads" of tobacco pulls into the loading dock at the Whitaker Park manufacturing facility. After the tobacco is unloaded, it goes into the blending stage. The various cigarettes manufactured all have highly CONFIDENTIAL blending ingredients which are processed in at this point. The tobacco is blended and prepared for rolling into cigarettes through various machines which roll, wrap, label, and apply "casing" for filters. The cigarette is manufactured and inspected on a machine which produces about 4,000 cigarettes per minute. The product is then moved via overhead conveyors to a packing machine which packs out approximately 200 packages of cigarettes per minute. There is a machine attached to the packer which gathers 10 packs to place into a carton. Conveyors send the cartons to machines packing them into 30- or 60- carton cases. The finished product is then shipped through a distribu- tion system for delivery to the retail accounts and the consumer. I TI-6
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DISTRIBUTION Wholesale There are over 1,450 primary tobacco wholesalers and approximately 1,000 miscellaneous wholesalers who distri- bute tobacco products along with other products. Retail At present, our best estimates indicate that there are approximately one million retail outlets distributing tobacco products. These outlets range from the indi- vidual vending machine outlet to the large chain store. U. S. CONSUMPTION Per capita U. S. cigarette consumption by adults 18 years of age and older is 3,494 units (single cigarettes) or some 17 cartons annually. The tobacco consumption for the U.S. in 1981 was: U.S. Consumption - 1983 0 603 billion cigarettes 0 3.6 billion large cigars and cigarillos 0 1.3 billion little cigars 0 33.3 million pounds of pipe and roll-your-own tobacco 0 86.8 million pounds of chewing tobacco 0 46.7 million pounds of snuff The output of cigarettes from U.S. factories was 667 billion. Of that total, 8.2 billion cigarettes were shipped to overseas forces, .8 billion to Puerto Rico and other U.S. possessions, and 60.7 billion to other countries. TOBACCO MANUFACTURERS There are 139 Tobacco Manufacturers with Federal permits to manufacture tobacco products in 20 states. Of these, there are six major manufacturers.
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MtiJUR U.S. lU6aLLU Mc;NUFALIUF;ERS L166ETT & MYERS BROWN & WILLIAMSON AMERICAN 10BACC0 LORILLARD PHILIP MORRIS R.J. REYNOLDS FOUNDED 1911 1876 1865 1760 1847 1B75 Durham, NC Winston-Sales, NC Durham, NC New York, NY England Winston-Sales, NC ---------------------------------------------------------------------------------------------------- ---------------------------------- HEADGUARTERS Durha., NC Louisville, KY New York, NY New York, NY New York, NY Ninston-Salem, NC ---------------------------------------------------------------------------------------------------- ---------------------------------- 10 YEAR SHARE OF MARKET '74 '84 5.7 4.7 '74 '84 17.7 11.3 '74 '84 14.5 7.9 '74 '84 8.3 8.2 '74 '84 '74 14 22.9 35.3 31.8 31.6 F1RS1S! Of the six .ajor To use tear-tape To advertise on To sponsor coast To introduce To introduce the tobacco co.panies for easy package .agazine back to coast radio 'flip top box' first .enthol to introduce opening, 1937. covers, 1910. broadcast, 1928. Marlboro, 1954. cigarette Sale., 6eneric cigarettes, 1956. 1981. MAJOR Chesterfield Viceroy Lucky Strike Old Gold P. Morris Ca.el C16ARETTE L & M Koo1 Pall Mall Y,ent Marlboro Winston BRANDS Lark Raleigh Tareyton Newport Parliament Sale. Eve Belair Carlton True B & H Doral Generic Barclay Silva Thins Triu.ph Virginia Slims Vantage Richland Max Saratoga More Generic Satin Merit Now Cambridge Bright Players Century Sterling OTHER +6rand Metropolitan •British A.erican iA.erican Brands COMPANIES Liggett group Tobacco -A.erican Cigar owned or -Pinkerton Tob. Co. -6i.be1 Brothers -Sunshine Biscuit PARENT -Western Dairy COMPANY -Allen Products Co. -Carillon lmporters -Diversified Products Co. -Saks, 5th Avenue -Ji• B. Bean Liquor -Appleton Papers -Franklin Life Ins. -Kohl's Food Stores -Masterlock -Koh1's Dept. Stores-Wilson Jones -Thi.bles -Acushnet Co. -Express Foods Co. -Marshall Field & Co-Swingline, Inc. -The Paddington Corp-Frederick & Nelson -Andrew Jergens -Pepsi Cola Bottling-John Breuner of Fresno -Atlantic Soft Drink Co. -Leach Ind., Inc. -The Crescent -Ivey's Dept. Co -MCM Products Stores-Ac.e Visible Stores Records, Inc. -6olden Belt Mfg. Co -A.erican Franklin -Pinkerton's Inc. +loews Corp. -loews Theaters -Loews Hotels -CNA Financial -Bulova Natch Co. -Regency Hotels -Su.mit Hotels fPhilip Morris Inc. tR.J. Reynolds -P.Morris U.S.A. Industries -P.Morris Internat. -Miller Brewing -Seven-Up -Mission Viejo -Abdulla of Bond Street, Ltd. -Park Avenue Export Corp. -Ventura Coastal -Crescent Dist. -River Dist. Co. -Star Dist. Co. -Waterloo Malting Co -Oregon Freeze Dry Foods, Inc. -Warner-Jenkinson Co of CA -Koch Label Co. -Nicolet Paper -Plainwell Paper Co. -Wisc. Tissue Mills -RJR Tobacco Co. -RJRT lnternational -RJR Develop.ent Corp. -Del Monte -Heublein -Kentucky Fried Chicken Corp. ---------------------------------------------------------------------------------------------------- ----------------------- (" 0 1 f 00 )IJ + Denotes PARENT COMPANY TI-8
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R. J. REYNOLDS INDUSTRIES, INC. Your company, R. J. Reynolds Tobacco Company, is one of six operating companies that comprise R. J. Reynolds Industries, Inc. The headquarters for R. J. Reynolds Industries, Inc. is located in Winston-Salem, North Carolina, in the World Headquarters Building. Tobacco remains the foundation for the parent company, contributing more than 65% of the annual earnings. To meet the competitive challenge faced in the changing marketplace, R. J. Reynolds Industries, Inc. is actively pursuing the expansion of its business, not only in tobacco, but in other areas. R. J. Reynolds Industries, Inc., is a diversified inter- national corporation with revenues of $12.97 billion in 1984. Products and services include tobacco products, quick service restaurants, specialty retailing, processed foods, fresh fruit, convenience foods, beverages, wines, spirits, franchised foods, packaging materials and films. The company has more than 81,000 employees world-wide. The following pages will give you an overview of our Cor- porate Executives and a brief description of each of the six operating companies.
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R. J. REYNOLDS INDUSTRIES, INC. OFFICERS Chairman of the Board, and Chief Executive Officer ............. J. Tylee Wilson President & Chief Operating Officer .............................•...Edward A. Horrigan, Executive Vice President, Finance & Administration, and Chief Financial Officer .................Gwain H. Gillespie Sr. Vice President, General Counsel & Secretary .....................H. C. Roemer Sr. Vice President ........................ Rodney E. Austin Vice President & Treasurer ................John W. Dowdle Vice President & Controller ...............John A. Hagan Vice President & General Counsel.......... Harold L. Henderson Vice President ............................Marshall B.. Bass Vice President .......................••...Paul J. Bott Vice President ........................•••.C. Dennis Durden Vice President ........................•...John T. Estes Vice President ............................Dr. Roy E. Morse Vice President ......................••....Arnold B. Sidman Vice President .....................••••...Ronald Sustana Jr. a I r I TI-10
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DESCRIPTION OF R. J. REYNOLDS INDUSTRIES, INC. Corporate Family R. J. Reynolds Industries, Inc., with headquarters in Winston- -Salem, N.C., is the parent company of six operating subsidi- aries. It provides coordinated financial, administrative, personnel, public relations, public affairs and other services, as well as overall management for these companies: o R. J. Reynolds Tobacco Company, Winston-Salem, N.C. o R. J. Reynolds Tobacco International, Inc., Winston-Salem, N.C. o R. J. Reynolds Development Corporation, Winston-Salem, N.C. o Del Monte Corporation San Francisco, CA o Heublein, Inc. Farmington, CT o Kentucky Fried Chicken Corporation Louisville, KY Financial 1984 consolidated revenues were $12,974,800,000. 1984 net earnings from continuing operations were $843,000,000. 1984 net earnings fron continuing operations common share were $7.00. Average number of common shares outstanding was 112,375,000. Revenues from nontobacco subsidiaries accounted for about 41 percent of total 1984 sales. History of Company In 1875, Richard Joshua Reynolds left a partnership with his father in tobacco farming and manufacturing in Virginia, moved to Winston, N.C., and started a plug chewing tobacco company with $2,400 invested in a plot of ground, a factory, and equipment.
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By 1906, Reynolds was producing one-seventh of the nation's plug (chewing) tobacco, and by 1912, one-fourth. In 1907, Reynolds developed PRINCE ALBERT smoking tobacco, one of the largest-selling smoking tobacco brands in the country. CAMEL was introduced as the company's first major ciga- rette brand in 1913. Four years after introduction, CAMEL was the nation's largest-selling cigarette, and in the next half- century went on to become the most popular cigarette ever produced, selling more than 132 billion packs. In 1978, CAMEL LIGHTS, a low "tar" cigarette, was introduced to the nation. WINSTON cigarettes went on the market in March 1954. In 1966, WINSTON became the best-selling brand in the nation and held that position for many years. WINSTON is still a market leader. SALEM, introduced in 1956, is one of the nation's largest-selling menthol brands. The heri- tage of WINSTON and.SALEM was extended to the low "tar" category with the introduction of WINSTON LIGHTS in 1974 and SALEM LIGHTS in 1975. WINSTON LIGHTS is the leading regular low "tar" brand, and SALEM LIGHTS is the best- selling menthol low "tar." In 1980, the company intro- duced SALEM ULTRA, an ultra low "tar" extension. WINSTON ULTRA was added in 1981. VANTAGE, introduced in 1970, has been a consistent leader in the low "tar" category and remains in the top 10 brands. VANTAGE ULTRA LIGHTS entered national distri- bution in October, 1979, following a successful test market exposure. MORE, the nation's first 120mm ciga- rette, was introduced into national distribution in 1975 and was an immediate success. NOW, with 2 mg "tar" and 0.2 mg nicotine, entered national distribution in 1976 after being introduced in selected markets in December, 1975. The lowest "tar" content cigarette produced by R. J. Reynolds is NOW BOX with less than .01 mg of "tar" and .005 mg of nicotine per cigarette. CENTURY, the nation's first cigarettetmarketed in a 25 pack, was introduced in 1983. I TI-12
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Diversification began in the 1950s when the company's Archer Aluminum Division started making packaging products for customers other than Reynolds Tobacco. During the 1960s, Reynolds Tobacco continued to diversify by acquiring companies in foods, snacks, and fruit juice beverages. Archer became a separate subsidiary company in 1967 (named RJR Archer in 1970), and all food interests were unified in 1967 to form RJR Foods. In 1970, RJR reorganized its corporate structure to provide central services and management control through R. J. Reynolds Industries, Inc., the new parent corp- oration of the RJR organization. To direct its growing international tobacco operations, in 1976, RJR created R. J. Reynolds Tobacco Inter- national, Inc., headquartered in the United States. Previously, the corporation's international tobacco activities were directed from a Geneva-based subsidiary of R. J. Reynolds Tobacco Company. In late 1977, R. J. Reynolds Industries moved into its new World Headquarters Building in Winston-Salem. It houses the corporate staffs of R. J. Reynolds Industries and RJR Archer. R. J. Reynolds Tobacco Company continues to occupy the historic Reynolds Building in downtown Winston-Salem. In early 1979, R. J. Reynolds Industries took a big step in its diversification program by acquiring Del Monte Corporation, one of the world's largest processors of fruits and vegetables. RJR Foods was integrated with Del Monte in 1980. Morton Frozen Foods was acquired in 1981 and became a part of Del Monte.
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R. J. Reynolds Development Corporation was formed in January, 1981 to meet the corporation's growing need for a vehicle to identify and develop growth opportunities for new products and technologies and to supervise and manage existing operations with developmental potential, but which did not fit precisely within existing business lines. In 1982, the acquisition of Heublein Inc. brought wines, spirits, new grocery products and Kentucky Fried Chicken into the RJR foods and beverages lineup. In 1984, R J R acquired the Canada Dry and Sunkist soft drink brands. 0 TI-14
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Officers: *President, Chief Executive Officer and Executive Committee Chairman----- Gerald H. Long Executive Vice President and Assistant to President--------------- G. Dee Smith *Executive Vice President-Operations----F. Hudnall Christopher, Jr. *Executive Vice President-Finance and Administration----------------------- Robert A. Emken Senior Vice President-R6D-------------- G. Robert DiMarco Senior Vice President-Sales------------ Donald W. Grout Senior Vice President-Marketing--------Martin L. Orlowsky Senior Vice President------------------ Charles A. Tucker Vice President-Field Sales-------------Ralph Angiuoli Vice President-Public Affairs---------- Paul C. Bergson Vice President-Leaf Buying------------- Robert E. Clements Vice President-Materials Management---- Joseph B. Dempster Vice President-Public Relations-------- David B: Fishel Vice President-Sales Operations-------- Yancey W. Ford, Jr. Vice President-Finance and CFO--------- John J. Gangloff Vice President-Personnel--------------- Robert R. Gordon Vice President-Mktg. Development------- Lavrence W. Hall, Jr. Vice President-R6D--------------------- William M. Hildebolt Vice President-Marketing Planning------ Richnrd A. Kampe Vice President-Brand Management-------- Harold J. Lees Vice President-New Brands-------------- Sally A. MacKinnon Vice President-Production--------------Charles E. Snyder Vice President-Trade Relations---------Timothy J. Sullivan Vice President-Distribution--------- =--John R. Trulove Vice President-Engineering-------------Douglas D. Walker *Vice President, General Counsel and Secretarv---------------------------- Samuel B. Witt, III
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R. J. REYNOLDS TOBACCO COMPANY WINSTON-SALEM, N.C. Reynolds Tobacco manufactures more than 40 brand styles in the United States in five major tobacco product classifications. Tobacco Products of R. J. Re~nolds Tobacco Co. Cigarettes WINSTON Box WINSTON WINSTON 100s WINSTON Lights WINSTON Lights 100s WINSTON Ultra WINSTON Ultra Lights 100s SALEM VANTAGE VANTAGE Menthol VANTAGE 100s VANTAGE Menthol 100s VANTAGE Ultra Lights VANTAGE Ultra Lights 100s VANTAGE Ultra Lights Menthol VANTAGE Ultra Lights Menthol 0s SALEM 100s MORE SALEM Lights SALEM Lights 100s SALEM Ultra SALEM Ultra 100s MORE Menthol MORE Lights MORE Lights Menthol NOW SALEM Slim Lights CAMEL NOW Box NOW B 100 CAMEL Filters CAMEL Filters Hard Pack CAMEL Lights CAMEL Lights 100s CAMEL Lights Hard Pack ox s NOW Menthol NOW 100s NOW Menthol 100s DORAL Filter DORAL Filter 100 CENTURY 85s CENTURY Lights 85s CENTURY 100s CENTURY Light 100s DORAL Menthol DORAL Menthol 100 BRIGHT 85s BRIGHT 100s STERLING Filter STERLING M th l Plug Chewing Tobaccos en o Smoking Tobaccos DAYS WORK BROWN'S MULE APPLE SUN CURED REYNOLDS' NATURAL LEAF R. J. GOLD PRINCE ALBERT CARTER HALL GEORGE WASHINGTON MADEIRA APPLE OUR ADVERTISER TOP ROYAL COMFORT ~ 0 Little Cigars Pouch Chewing Tobacco f co WINCHESTER WORK HORSE N ~ I ~ ~ TI-15
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R. J. REYNOLDS TOBACCO INTERNATIONAL, INC. WINSTON-SALEM, N.C. R. J. Reynolds Tobacco International, Inc., headquartered in Winston-Salem, N.C., is responsible for the marketing of R. J. Reynolds' tobacco products in all countries outside of the United States. From its headquarters, the company provides specialized staff services and support to all of its subsidiaries and licensees around the world. Worldwide, R. J. Reynolds' cigarette brands are sold in more than 160 countries and territories. The company employs about 7,500 persons. Manufacturing Facilities Licensing Agreements o Germany (Berlin and o Andorra Trier) o Austria o Switzerland o Argentina o Canary Islands, Spain o East Germany o Canada o Austria o Brazil o Finland o Ecuador (25%) o Greece o Malaysia o Mexico o Puerto Rico o New Zealand o Curacao, N.A. (80%) o Philippines o Brussels, Belgium o Peru o Spain o Yugoslavia o Portugal o China o Congo o Indonesia o Panama o South Africa Distribution Subsidiaries o Hong Kong o Australia o France o Netherlands o Spain o Greece o Japan o Portugal o Sweden o Singapore o England
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R. J. REYNOLDS DEVELOPMENT CORPORATION WINSTON-SALEM, N.C. R. J. Reynolds Development Corporation was formed in January, 1981, to supervise and manage operations within R. J. Reynolds with developmental potential, but which did not fit precisely within existing business lines. The company also supervises technologically-oriented companies and seeks to identify "new" technology in which R. J. Reynolds may have an immediate or future interest. When appropriate, R. J. Reynolds Development Corporation might also be the parent organization for business acquired through new venture activities, acquired smaller independent companies, or subsidiaries of larger com- panies participating in consumer product categories exclusive of tobacco and foods. Development Corp. is the parent company of R J R Archer, Inc., R J R's packing subsidiary, which produces gravure printed flexible packaging materials and cartons, specialty foil and sheet aluminum products, florist foil and protective film wrap. The company provides packaging materials for many leading domestic and international consumer product companies. Archer also is a partner in a U. S. joint venture business marketing aseptic packaging systems and packaging materials. 0 TI-17
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DEL MONTE CORPORATION SAN FRANCISCO, CALIFORNIA Del Monte Corporation is an international food and beverage company with 47,000 full-time employees, 1984 sales of $2.6 billion, and headquarters in San Francisco. Its processed and fresh foods are produced in a dozen nations and marketed in more than 80. The company's U.S. Grocery Products Group produces and distributes more than 170 varieties of canned and dried fruit, canned vegetables, tomato products, canned and frozen seafood, and canned specialty items. Most of the foods are marketed under the DEL MONTE label. To serve international markets, Del Monte processes food in nine foreign nations and markets it primarily under the DEL MONTE label. A Canadian Canners subsidiary is administered separately from Del Monte's International Grocery Products Group, which is responsible for pro- cessed food production and sales in other foreign coun- tries. Businesses of RJR Foods, Inc., as well as the recently acquired Morton Frozen Foods Division, are managed by Del Monte's Prepared Food and Beverage Products Group. Prin- cipal product lines include HAWAIIAN PUNCH fruit drinks, CANADA DRY and SUNKIST soft drinks, DEL MONTE fruit and juice drinks, MORTON frozen foods, CHUN KING Oriental-style canned and frozen foods, and PATIO Mexican- style frozen foods. Del Monte's Worldwide Fresh Fruit Group distributes fresh bananas in the U.S., Canada, Japan, Europe, and other major world markets, and it markets fresh pineapple in the U.S. and Japan. Fresh fruit is supplied from planta- tions in Latin America, Hawaii and the Philippines. Through a subsidiary, Distribution Systems, Inc., Del Monte also conducts a U.S. trucking business that pro- vides refrigerated and dry van services nationwide and operates several truck sales and service centers.
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HEUBLEIN INC. FARMINGTON, CONNECTICUT It has become increasingly difficult -- if not impossible -- to find an American home without an RJR product on the table or in the pantry, since Heublein Inc. joined the R.J. Reynolds family of companies. The merger brought wines, spirits, new grocery products, and Kentucky Fried Chicken into the RJR foods and beverages lineup. Since the acquisition, Keublein's food items were moved to Del Monte's operations and Kentucky Fried Chicken was established as a separate operating company. Bottled cocktails were the mainstay of the Heublein family business at the turn of the century. Today, bottled Heublein Cocktails and the company's canned and bottled Club Cocktails continue to be the leading products of their type. Heublein, in its own diversification strategy, acquired an enduring product in 1906 when the company began importing A-1 Steak Sauce. In 1939, Heublein strengthened its position in the spirits market by acquiring Smirnoff Vodka. Today, Heublein is the world's No. 1 vodka producer. In 1946, Heublein became the agent for Grey Poupon Mustard -- originally a French product -- but now widely known and sold in the United States. In the mid-1960's, Heublein began a series of major acquisitions to add to the company's strength. The first purchase was Arrow Liqueurs Company in 1964, bringing to Heublein the broad line of Arrow Cordials -- the best selling U.S. liqueurs -- plus Mc- Master's Scotch and Canadian Whisky. In 1965, Heublein acquired Vintage Wines Company of New York, importers of Lancers wine from Portugal. The following year, the company purchased Coastal Valley Canning Company, producer of Ortega Chiles and Sauces and Snap-E-Tom Tomato Cocktail. Recognizing a growing consumer interest in wines, Heublein moved into the U.S. wine market in 1969 by acquiring a major California wine-producing cooperative, and Beaulieu Vineyard, one of the country's most prestigious wineries. Heublein is strongly represented in the premium California Wine category by the Inglenook Line of wines. Heublein entered the fast-growing convenience foods business in 1971 by acquiring KFC Corporation, which operates the Kentucky Fried Chicken system, the world's No. 1 retail chicken chain. I TI-19
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KENTUCKY FRIED CHICKEN CORP. LOUISVILLE, KENTUCKY Kentucky Fried Checken is the second largest quick service restaurant in the United States. With stores in 47 countries, Kentucky Fried Chicken is the largest overseas chain of quick service restaurants and has 86,500 employees worldwide. There are about 3,500 franchised and 1,000 company-owned Kentucky Fried Chicken restaurants in the United States. There are about 1,500 company owned and franchised quick service restaurants operating in 47 countries (526 company-owned, 974 owned by franchises). The seven largest overseas markets are Australia, Japan, New Zealand, South Africa, Great Britain, Puerto Rico, and Mexico. (in addition, 648 stores are operated in Canada by an independent company). Kentucky Fried Chicken was started in 1939 by Colonel Sanders when he perfected his secret blend of 11 herbs and spices, and his special method of cooking fried chicken with a pressure cooker. When he sold his business in 1964, he had 600 K F C stores. Colonel Sanders remained with Kentucky Fried Chicken as goodwill ambassador until his death in 1980. He traveled some 250,000 miles a year visiting the worldwide empire he had f ounded . In 1971, K F C was acquired by Heublein, Inc.
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R. J. REYNOLDS TOBACCO CO. CAREER OPPORTUNITIES There is always a need for qualified people in RJR's organization, which is expanding at a greater rate than ever before due to specialization in areas of merchan- dising, vending, and training. These positions are filled by people, like yourself, who have the ability, skill, and knowledge of our business to make that first step into the ranks of management and continue to move upward through the organization. The following chart gives you insight into career oppor- tunities available within RJR's organization. As you can see from the chart, opportunities for advancement are available for qualified people. Division Managers, Regional Managers, and Area Sales Directors and their various support positions offer qualified people many challenging responsibilities.
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CAREER OPPORTUNITY CHART A S REPRESENTATIVE - A~REA S S REPRESENTATIVE 1ENDING SALES I~ERCHAIII-TSTN~ M & N MANAGER (FIELD) MANAGER (FIELD) INSTITUTIONAL DEVELOPMENT SALES MANAGER MANAGER (FIELD) ASSISTANT DIVISION MANAGER stvrSraAMANAGek CHA N ACCO TS MANAG R A DEVELOPMENT MANAGER SALES A - BUDGET & MERCHANDISING VENDING/MILITARY PLANNING MANAGER MANAGER MANAGER ASSIST ONA AG 0 A A IREC 0 OF S S A
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MARKETING PROCESS . 50482 1889
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PROGRAM STOP #1 RJR AND THE MARKETING PROCESS The following material will expand upon and explain many points covered in the audio-visual module. It is organized by topic so that at each program stop you can locate the information which pertains to what you've just seen and heard on the projector. The purpose of the program is to provide information on the marketing process at RJR and to clarify the functions of the Sales Department. The topics in this section are: o Marketing Process o Cigarette Categories o Profile of a Smoker o Industry Trends o Marketing Mix o Promotions o Flow of Goods o Channels of Distribution
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MARKETING PROCESS Marketing is the process of moving a product from the factory to the consumer, with the final goal of making sure that more of the specific type of product sold is your own - rather than your competitor's. The process of marketing has one basic goal - to increase sales of RJR products. This objective requires meeting consumer needs; fully utilizing marketing tools; and properly allocating resources. Meeting consumer need requires research into the life- styles, tastes, and values of the consumer. That is, finding what a specific market would want and need. To fully utilize marketing tools, the most effective way of using media, promotion, and merchandising methods must be found. It also means making sure that the product is available to the consumer in sufficient quantities. Proper allocation of resources is the correct assignment of money and people for the maximum effect. The marketing of a specific product - such as cigarettes - involves understanding the distinct characteristics of the cigarette market. The three most prominent aspects of the cigarette market are - that the consumer is . constantly in the marketplace; the industry is highly competitive; and the methods of advertising are restricted. Though cigarettes are not a staple item like milk or bread, they are purchased as often, and in similar recurring cycles, resulting in a quick turnover of product. The cigarette market is highly competitive, with more brands, and more varieties than ever before. After World War II, the market was dominated by just a handful of brands. Today, there are well over 150 different brands of cigarettes marketed. Advertising for cigarettes is limited by government regulation. No broadcast media advertisements are possible. Therefore, there is a great reliance on print, outdoor ads, and point-of-sale advertising. In the case of R. J. Reynolds, sponsorship of special sporting events such as rodeos, drag racing, and stock car racing has become a valuable source of goodwill, as well as adding to our advertising strategy. 1 MP-2
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R. J. Reynolds has a tradition of being able to antici- pate the changing demands of the American smoker and respond to them with innovative, quality products. RJR has been able to maintain a consistently high level of consumer satisfaction with timely introduction of new products. The company has also committed itself to developing a successful brand for every major cigarette category. R. J. Reynolds has also been a leader in the establishment of new categories, with brands such as SALEM, the first filter menthol cigarette, and MORE, the first 120mm cigarette. STOP Go to Workbook Exercise #1
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PROGRAM STOP #2 CIGARETTE CATEGORIES Before the "Marketing Mix" is explained, the Cigarette Categories Section and the Smoker Profile Section offer good background information. The cigarette industry has changed over the years with respect to the growth and decline of major product categories. Between 1913 and 1953 virtually every cigarette sold in America was a non-filter. Beginning about 1953, the innovation of filter cigarettes occurred, and since then filter cigarettes have grown dramatically. In 1956, RJR introduced SALEM which initiated the growth of menthol filter cigarettes. Then, in 1965, another innovation occurred -- the introduction of super king size cigarettes (now called 100s), yet another category. The period from 1965 to the present has been marked by the appearance of low-tar entries. RJR introduced VANTAGE and NOW cigarettes in the 1970s. The result is that today the cigarette market is divided into distinct product categories. RJR identifies cigarette categories according to the following criteria: Flavoring - Overall taste, as determined by tar and nicotine content and amount of filtration Mentholation - Extent of menthol additives Size - Length of the cigarette Packaging - Crush-resistant cardboard box or paper pack Filtering - Filter or non-filter The following charts identify cigarette categories and brands. k MP-4
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CIGAREPTE %ATROItff.S Fllller Flavor Ultra Advertised Padting Filter Merthol Aall Low Low Tar/Nicotine Size Soft Share of Yes No Yes No Flawr Tar Tar Content* 70-85m 94-101mm 120m Pack Box Market Doral Filter X X X 14/0.9 X x .10 Dora1 Menthol X X X 14/0.9 X x .07 Ibral Filter 100 X X X 14/0.9 X X .10 Doral Menthol 100 X X X 14/0.9 X X .07 Vantage Filter X X X 9/ .7 X X 1.54 Vantage Menthol X X X 9/7.6 X X 0.28 Vantage Matthol 100 X X X 9/ .7 X X 0.74 Vantage 100 X X X 9/ .7 X X 0.06 Vantage Ultra Light 85 X X X 5/0.5 X X 0.29 Vantage Ultra Light 100 X X X 5/ .5 X X 0.40 Vantage U.L.Menthol 85 X X X 5/ .5 X X 0.03 Vantage U.L.Menthol 100 X X X 5/ .5 X X 0.04 Winston 85 (SP) X X X 17.1.3 X X 5.24 Winstan Box X X X 17/1.3 X X 0.41 Winston 100 X X X 17/1.4 X X 1.87 Winston Lights 85 X X X 9/0.7 X X 2.01 Win4ta+ Lights 100 X X X 12/1.0 X X 1.41 Winston Ultra Lights 85 X X X 5/0.5 X X 0.17 Winston Ultra Lights 100 X X X 5/0.4 X X 0.31 Winston Inteinational. llQ X X X 18/1.3 X X 0.00 TOPAL 30.85% * Matrh 1984 F1C Feport ad adveertised as FrC Method HP-5 fiEBI Z8fi0G
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CICARII'IE CATFOAtIE5 Fliller Flavor Ultra Advertised Packing Filter Menthol Fli.ll Low Low Tar/Nicotine Size Soft Share of Yes No Yes No Flavor Tar Taz Content* 70-85mn 94-101mn 120m Pack Box Market Bright 85 X X X 7/ .5 X X 0.07 Bright 100 X X X 7/ .5 X X 0.16 Canel Regular X X 21/1.6 X X 1.84 Carel Filter (SP) X X X 16/1.2 X X 0.11 Caoiel Filter Hard Pack X X X 17/1.3 X X 1.04 Canel Lights 85 (SP) X X X 9/0.8 X X 0.93 Camel Lights 100 X X X 12/0.8 X X 0.13 Canel Light Hard Pack X X X 9/0.8 X X 0.29 Ceitury 85 (25 pk) x X X 15/1.1 x x 0.14 Century Lights 85 (25 pk) X X X 10/0.8 X X 0.18 Century 100's (25 pk) X X X 16/1.2 X X 0.15 Century Lights 100's (25 pk) x x x 12/0.9 x x 0.20 Mvre Filter 120 X X X 17/1.3 X X 0.62 Nore Henthol 120 X X X 17/1.3 X X 0.51 Mare Li,ghts Filter 100 HP X X X 8/0.7 X X 0.19 Pbie Lights Menthol 100 HP X X X 8/0.7 X X 0.13 Now Filter Box X x X 0.5/0.1 X X 0.00 Now Filter SP X X X 1/0.1 X X 0.15 Now Menthol SP X X X 1/0.1 X X 0.07 Now Filter 100 X X X 2/ .2 X X 0.00 Now Menthol 100 X X X 2/ .2 X X 0.32 Now Box 100 X X X 0.5/ .05 X X 0.18 Salem 85 X X x 17/1.3 X X 2.11 Salem 100 X X X 17/1.4 X X 1.37 Salem Light 85 X X X 10/0.8 X X 1.89 Salem Lights 100 X X X 10/0.8 X X 1.55 Salem Ultra Light 85 X x X 5/0.5 X X 0.19 Salem Ultra Lights 100 X X X 5/0.5 X X 0.39 Salem Slim Lights 100 X X X 8/0.7 X X 0.35 Sterling X X X 12/1.0 X X 0.21 Sterling Menthol X X X 12/1.0 X X 0.15 S6Bl ~S+OS r
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CTCAR~,TfF. NWDS Q1A1a' Category American Braan & WilliaRSon Liggett 6 rs Lnrillatd Pidl.ip Monis R. J. Reyrolds NocrFilter Lucky Strike Regular Knol Regular Qiesterf iel,d Regular Philip Morris King Canel Regular Pall Mall King Raleigh King Clesterfield King Old Gold King Phil.ip Morris Reg. Herbert Tareyton Generic 85m 8U-85me Filter Tateytvn Filter 85 Kool Filter Lark Filter Newport 85 Alpine Menthol 85 Camel Filter Full Flavor Pall Mall F. 85 Kool Box L & M 85 Newport Box Marlboro King Winston 85 Raleigh Filter 85 Old Gold Filter 85 Marlboro Box Winston Box Vicervy 85 L b M 85 Box Marlboro Menthol Salen 85 Generic 85 Generic F. 85 (sp. & box) B & H King Box Camel Filter (HP) Century 85 10DYm Filter Pall Mall Filter 100 Kool Menthol 100 L & M Filter 100 Newport 100 B & H Filter 100 Century 100 F1il1 Flavor Tareyton Filter 100 Raleigh Filter 100 Lark 100 Old Gold 100 B & H Menthol 100 Viceroy 100 Generic F. 100 Spring 100 BbHFBrnc 100 Salem 100 Generic F. 100 BbHMBox100 Marlboro 100 Wizstvn 100 Mazlboiv F Box 100 Va. Slims F 100 Va. S13as M 100 8a85nm Filter Tareyton Lt 85 (F" Rool Milds 85 Generic (Lig) Lts Kent Gol Lt Filter 85 B & H Kxltifilter (F" Caal Lt 85 Ftiller Flavor Lucky Lflw Tar King Kool Lt 85 Generic (Lig) Lts M Kent Golden Lt M 85 Marlboro Lt 85 Camel Lt HP Lflw Tar Lucky Low Tar King Box Ralei*i Lt 85 Lark Lts. 85 Ketit 85 & Box Marlboro Lt Box Salem Lt 85 Lucky Strike Lts. Viceroy Rich Lt.85 Newport Lt 85 Merit Filter 85 Vantage Filter 85 F. 85 Belair 85 Pall Ma]1 Fk. Generic It. F Old Gold Lt Merit M 85 Vantage M Lts. (SP) Generic Lt. M Newport Lt 85 &a Parliaieit Lt 85 Winstvn Lt 85 Parlisment Lts Box Bright 85 Players 85 Box Doral F 85 Players M Box Century Lt. 85 Uvral M 85 94am Filter Sterling (F & M) Ful],er F]awr Low Tar 9691 zefios
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CIGARETTE BRANDS CHART CATEGORY AMERICAN BROWN & WILLIAMSON LIGGETT & MYERS LORILLARD 100mm Filter Pall Mall Lt. Kool Lt. 100 Generic (Lig) Kent Golden Lt. Fuller Flavor F. 100 Kool Milds 100 Lt. 100 Fil. 100 Low Tar Pall Mall Lt. F. Generic (Lig) Kent Golden 100 M 100 Men. Raleigh Lt.100 Lt. M 100 Kent M 100 Tareyton Lt.100 Viceroy Rich Lt L & M Long Lt. Kent Fil.100 Lucky Strike Lt. . 100 Eve Lts.F.100 Satin F.100 100 (sp) Belair M. 100 Eve Lts. M.100 Satin M.100 Silva Thins F. Generic F 100 Lark Lts.100 Newport Lt. 100 Generic Lt. M M. 100 Silva Thins M. 100 100 70-85mm Filter Carlton Fi1.85 Ultra Low Tar Carlton M.85 Carlton F.Box 85 Barclay Fi1.85 Kool Ultra 85 Barclay Fil.Box Barclay Men.85 Generic Ult. Generic Ult. 85 Kent III 85 Triumph Fi1.85 Triumph M.85 True Fil.85 True Men.85 PHILLIP MORRIS B & H Lt.F.100 B&H Lt.M.100 Marlboro Lt.100 Merit Fil.100 Merit Men.100 Parliament Lt. 100 Va.Slims Lt.F. Box 100 Va.Slins Lt.M. Box 100 Players F.100 Box Players M.100 Box Cambridge 85 SP Merit Ult.Lt. F. 85 Merit Ult. L M 85 F. 85 100mm Filter Carlton Fi1.100 Barclay Fil.100 Generic Ult. Kent III 100 Ultra Low Tar Carlton 100 M Kool Ultra 100 F. 100 True Fil. 100 Carlton F. Barclay M. 100 Generic Ult. True Men. 100 Box 100 Generic Ult.F. M. 100 Triumph 100 (F&M) 100 Generic Ult.M. 100 120mm Filter Tall Filter 120 (F&M) Carlton 120 (F&M) 1' and N - 4/85 FTC and by FTC Method r Eve Lts.F.100 Box Max 120 (F&M) Eve Lts.M.120 Box STOP MP-6 Cambridge 100 Merit Ult.Lt. 100 (F & M) B & H Deluxe U1t.100 Bx. Saratoga F.Box 120 Saratoga M.Box 120 GO TO WORKBOOK EXERCISE /! 2 R. J. REYNOLDS Century Lt.100 Camtl Lt.100 Salem Lt.100 Vantage 100 Winston Lt.100 More Lt.F.100 Box More Lt.M.100 Box Bright 100 Salem Slim Lts. 100 Box Vantage M.100 Doral F.100 Doral M.100 I Winston Ultra Lt. 85 Now Box Now SP (F & M) Vantage U1t.Lt. 85 (F & M) Salem Ult.Lt.85 Winston Ult.Lt. 100 Now 100 (F & M) Vantage Ult.Lt. 100 (F & M) Salem Ult.Lt.100 More Fil. 120 More Men. 120 L681 7 BfioS
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PROGRAM STOP #3 PROFILE OF A SMOKER In the United States today, it is estimated that over 50 million people enjoy smoking cigarettes. So that you will have a better idea of the demographics of smokers, the following areas will be identified. The statistics include all ethnic groups. 1. Sex 2. Age 3. Education 4. Income Level 5. Marital Status 6. Where They Live 1. SEX 52.7% of all Smokers are Men 47.3% of all Smokers are Women 2. AGE Age Groupings Men ° Women (%) 18-24 years old 8.8 8.9 25-34 years old 14.3 11.6 35-49 years old 14.8 12.7 50+ years old 14.9 14.1 52.8 47.3 41.4% of all smokers are in the (born between 1946 and 1961). Baby Boom generation 3. EDUCATION Grade School 8.2% High School 54.2% College 37.6% 4. INCOME LEVEL Under $15,000 36.9% $15,000 - $24,999 33.8% $25,000 and Over 29.3%
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5. MARITAL STATUS Married 61.8% Not Married 38.2% 6. WHERE THEY LIVE Top 25 Metro Markets 36.8% Population of 150,000+ 28.6% Population of 30,000 - 150,000 19.2% All Other 15 .4°/, k MP-8
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INDUSTRY TRENDS Consumption The Cigarette Industry has grown almost every year since 1957, with 1983 showing an increase of over 40% from 1957. The following table of U. S. Consumption will illustrate this point: Total Consumption (in billions of _ cigarettes_)_ 1957 423.1 1959 467.4 1961 502.7 1963 523.9 1965 528.7 1967 549.2 1969 528.9 1971 555.1 1973 589.7 1975 607.2 1976 613.5 1977 617.0 1978 616.0 1979 621.5 1980 631.5 1981 640.0 1982 634.0 * 1983 603.0 STOP Go to Workbook Exercise #3 * Federal Excise Tax doubled to 160 per pack in 1983.
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PROGRAM STOP #4 MARKETING MIX To better understand the Marketing Process (moving product from the factory to the consumer), an overview of the Marketing Mix and its elements follows: Product - Development of a brand which success- fully satisfies the needs, desires, attitudes and other influences which motivate buyers. Packaging - Development of a package for marketing the product which communicates quality and value, offers convenience to the smoker, provides product protection, and at the same time is cost-effective. Pricing - Product must be offered to the buyer at a price which will produce an acceptable return on investment. Availability - Product must be readily available at the various levels of the distri- bution channel in order to have sufficient inventory available to the consumer. Advertising - Selection of the appropriate media to deliver the selling message about the product to the market. Promotion - Selection of vehicles and/or incen- tives designed to present the company's products to the consumer (Example: 30-Pack Display and Sample Packs). A specific RJR marketing group is responsible for the development of each of the six elements of the Marketing Mix. To give you a better understanding of the Marketing Mix ~ and how it's developed, you will trace the actual life 0 of one of our products - CAMEL LIGHTS. ~ m N ~ ~ c 1 MP-10
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Product - CAMEL LIGHTS Let's review briefly the positioning of the CAMEL family in 1977. CAMEL was represented in two declining catego- ries. First, in the non-filter category by CAMEL REGULAR, which like its category, maintains high loyalty with very little switching. The second category is non-menthol, full flavor, represented by CAMEL FILTER. This brand was not losing significantly to the low "tars," however, it did not represent an adequate volume base for future growth. In the category showing the most significant growth, the fuller flavor low tar category, the CAMEL family was not represented. It was decided from consumer research and changing trends that a CAMEL entry into the fuller flavor low tar category was a must for the following reasons: o To maintain vitality in the CAMEL franchise o To position CAMEL for long-term growth o To broaden CAMEL demographic base A viable marketing opportunity had been uncovered: To develop a high-quality, low tar cigarette which would deliver the full measure of taste and smoking satisfac- tion that CAMEL smokers prefer. Research and Development was able to develop a high- quality product which in test market results demonstrated superiority over the competition among full flavor users and achieved equity among low "tar" users. We defined our target audience as masculine, but not to the exclusion of females, with primary emphasis placed on those 21-35 years of age and positioned in the middle income, occupation, and education levels. Brand Management then began to develop the marketing,. strategy that would be employed. First, the brand would appeal to all non-menthol smokers with the primary target to be non-menthol, full flavor smokers, and secondly, positioned to provide a bridge for full flavo~ smokers to enter the low tar category. Thirdly, the tone of the marketing mix elements should imply boldness, a contemporary image, and aggressiveness. Finally, the brand must deliver on its promise of taste satisfaction. We have now discussed the background information and marketing objective of CAMEL LIGHTS. The following pages will describe the marketing mix.
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Product - CAMEL LIGHTS The concept was to develop a product which used the unique CAMEL blend of Turkish and domestic tobaccos, and reformulate it for a fuller flavor low tar cigarette. The cigarette must deliver low "tar" numbers, but must follow through on its promise to deliver the full measure of taste and satisfaction. Finally, the CAMEL heritage of taste and quality must be assured. Packaging Objectives - CAMEL LIGHTS o Communicate - CAMEL heritage - Low tar - Filter product - Taste/Satisfaction o Project a well-balanced smoker image o Be readily differentiated from CAMEL REGULAR/ CAMEL FILTER in order to stand on its own as a new product entry. In 1981, the present CAMEL LIGHTS package was introduced to bring it more in line with the CAMEL Family positioning, heritage, and graphics. This aided in developing CAMEL Family advertising which defined the CAMEL smoker as con- temporary, masculine, mature, self-confident, and indepen- dent and promises the superior-quality smoking experience that the CAMEL smoker demands. Pricing Structure - CAMEL LIGHTS Pricing's goal is to offer a product which will produce an acceptable return on investment within the limitations of traditional pricing policies, and also give today's smoker the best product for his/her money. Availability - CAMEL LIGHTS We are fortunate from this standpoint as we have one of the largest and most professional sales departments among consumer product companies in the country. Our Sales Representatives can attain national distribution of a product in six to eight weeks. Advertising Strategy - CAMEL LIGHTS Communicate to cigarette smokers the introduction of a new low "tar" brand in a bold manner. Convey that CAMEL LIGHTS provide the greatest smoking satisfaction of all fuller flavor low tar brands. 1 MP-12
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Stress that CAMEL LIGHTS deliver the taste and smoking satisfaction that the CAMEL name stands for. Appeal to all smokers, with particular emphasis menthol, full flavor smokers who have not found tion in current low "tar" brands. Year Media Plan - CAMEL LIGHTS on non- satisfac- Cost ~ Total Spending Magazines $5,470,000 29% Supplements 3,500,000 19% Newspapers 5,390,000 28% Point-of-Sale Adv. 1,270,000 8% Billboards 2,670,000 14% Other 450,000 2% 0 TOTAL MEDIA $18,750,000 100% Promotion - CAMEL LIGHTS o Sample 4s o MCD Motion Units 0 30 Pack Displays o Magnetic Motion Counter Displays o Pasters Results Create awareness of product. The CAMEL LIGHTS marketing process illustrates the new brand process from concept to development of a product. Because many aspects of the marketing mix are occurring simultaneously, it is difficult to visualize the various activities that create a successful product in the marketplace. The following diagram depicts the different parts of the marketing mix.
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This marketing process doesn't end here! RJR must continue to evaluate the results of our efforts and strive for improvements. RJR is constantly evaluating volume and share of market by brand nationally, and also analyzing the market for opportunities to increase sales. The Marketing programs are constantly evaluated to determine who is buying the brand or who has rejected the brand and why! Promotion plays an important role in the overall Marketing Process. A more detailed explanation of this area will follow since you will be involved with programs and activi- ties generated by this department. STOP Go to Workbook Exercise #4 U 0 ~ ~ N 1 MP-14
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PROGRAM STOP #5 PROMOTIONS Promotion is a short-term incentive to the trade or consumer to induce purchase of a product. RJR's Promotion Department is accountable for developing promotions that effectively maximize individual brand awareness through the efficient use of consumer and trade promotion techniques. Before discussing the standard promotions, an explanation of the difference between the two major categories, con- sumer promotions and trade promotions, is necessary. Consumer Promotions - are geared directly to the consumer suc as samp ing, couponing, and on-pack premiums for the purpose of: o Obtaining trial smokers o Obtaining volume among current and occasional smokers o Expanding product usage o Reinforcing brand advertising Trade Promotions - are directed to the wholesalers, retai ers, an other channels of distribution to persuade them to buy the supplier's product for resale. In other words, the primary aim of trade promotion is to push the product through the distribution channel into the store. The major objectives of this promotion are: o Pricing advantage o Distribution o Adequate inventories o Merchandising advantages
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There can be a combination of the two promotions. For example, a Buy 1 Get 1 Free display is presented to a retailer and a payment is offered for a given placement period. In addition, a free pack with purchase of a pack is offered to induce the consumer to buy. This type of promotion is directed to the retailer to gain a merchandising advantage and ensure adequate inventory, but is also directed to the consumer through the premium offer. The following are definitions of the standard promotions that you will be involved with in your assignment: l. Sampling - is a means of actually putting free product in the consumer's hand. 2. Direct Couponin9 - is a certificate for a stated price reduction on product at the point-of-sale. 3. In-Ad Cou oning - is a certificate for a stated pri~ce re u~ ction on your product at a particular store or chain of stores which is distributed to consumers via the dealer's own advertising. 4. Free-standing Inserts - is an alternative vehicle for delivering coupons to the consumer. This method of couponing is handled via magazines and newspapers, or other trade-recognized media. These free-standing inserts are tear-out coupons that are exchanged at the point-of-sale. 5. Cents Off Stickers - is a specially-marked item which announces a specific and temporary price reduction for that item. 6. Bonus Pack - is a special factory pack which offers the consumer extra product at no increase in price. 7. On or Near Pack Premium - includes an appealing low-cost item or merchandise either inside or attached to the product package. 8. Cash Refund - offers the consumer a return of part or all of the purchase price via return mail with proof-of-purchase.
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9. Premium Mail-in Offers - two basic types: A. Self-liquidating - offers consumers the oppor- tunity to obtain, via mail, a specific premium item in return for a low number of proof-of- purchases together with sufficient cash to cover premium purchase. B. Free - requiring a large number of proofs-of- purchase to receive a specific premium free, via mail, with no money changing hands. 10. Sweepstakes pstakes - is a promotion involving a chance to win prize. The customer sends in name and ad- dress together with proof-of-purchase or facsimile, and one or more names are drawn to determine who wins. 11. Trade Allowances - offers payment to the trade for rendering one or more specific services. This promotion is essential in gaining initial distribu- tion, supplemental displays, a feature price, or a significant inventory gain. What you have read provides you with a basic understanding of terms used in promotions. Developing promotions is very complex and much too detailed to convey in the brief outline of this department. Thus far, the Marketing Process, including the development of promotional programs and vehicles, has occurred prior to the product reaching the retailer. These preparations are important for a successful effort by the Sales Department. In other sections of this binder, you will learn how you, as a Sales Representative, use these and other programs, in your assignment. STOP Go to Workbook Exercise #5
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PROGRAM STOP #6 FLOW OF GOODS You have seen how a product is conceived and developed by the Marketing Department, how the product is manufac- tured, and how Promotions develop programs and vehicles for the Sales Force to use. In order for you to have product in the field, our goods flow in a logical manner from the factory to public warehouses to direct accounts to retailers and to the customer for final purchase. The next few pages describe this flow of goods in more detail. Traffic Department The Traffic Department of R.J. Reynolds Tobacco Company is concerned with the movement of all goods into and out of our production facilities; however, one of the most important phases of this work is the movement of manu- factured tobacco products through bonded public warehouses located across the country, to our direct customers. It is the responsibility of Traffic to determine where ware- houses should be located, and once they are established, to control the inventory of product in each warehouse location so that it is available to fill the thousands of orders received weekly. Because of the necessity to plan production in our manu- facturing facilities, warehouse replenishment shipments are scheduled one week in advance of shipment from Winston-Salem. Transit time to warehouses varies; however, in some instances this can amount to an addi- tional two weeks before goods are available for customers' orders. It is only through close coordination with the Sales Department that products sufficient to meet both normal and abnormal demands are available when needed. Orders from customers are received in Winston-Salem and then transmitted to warehouse locations via our tele- release system. 0 MP-18
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The Traffic Department is in constant communication with each warehouse and is wholly responsible for when and how orders are shipped. Decisions concerning the routing of shipments to customers are made with service as the first priority; however, since all transportation costs are paid by Reynolds, every effort is made to keep this cost as low as possible, consistent with the service level we demand. In no instance can an individual ware- house location deviate from routing instructions unless authorized by the Traffic Department. All warehouses are periodically audited by personnel from the Traffic Department to ensure that inventories are properly handled so the customer receives only good fresh product. Transportation and distribution are an important part of our business, and the members of the Traffic Department are proud of the service they render.
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CHANNELS OF DISTRIBUTION To better understand the role of a Sales Representative, you must first have a working knowledge of what happens to the cigarettes once they leave the plant in Winston- Salem via truck or railroad car. Public Warehouses Throughout the United States, there are Bonded Public Warehouses. These warehouses are located throughout the country, and they store RJR cigarettes until a Direct Account purchases our brands. Their secondary and perhaps more important function is to ensure timely, safe, and accurate delivery of RJR's product to Direct Accounts. (All Public Warehouse charges are paid by RJR.) Direct Account ADirect Account _i s_ de f3-ned- as any- a~^.oaia^l ~, who piir c:hases our products directly from RJR with no middleman involve- ment. Direct Accounts fall into several categories, such as Jobbers, Direct Chain Accounts, Direct Vendors, Military Accounts, and Institutions. These types of Direct Accounts will be explained in detail in another section of the binder. Retail Accounts and Vendors These types of outlets comprise all the supermaikets, drugstores, gas stations, vending machines, etc. where cigarettes are sold to consumers at retail prices. Approximately 350,000 to 400,000 retail outlets plus approximately 600,000 vending machines combine for approximately 1,000,000 different outlets from which cigarettes are sold. These types of outlets will be explained in detail in another section of the binder. STOP Go to Workbook Exercise #6 ~ 0 f OD N 1 MP-20
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J W 0 OPERATING GUIDELINES R\ . 5048•Z 1912
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PROGRAM STOP #1 OPERATING GUIDELINES This section deals with certain operating guidelines and procedures necessary for the efficient and productive manner in which R. J. Reynolds Tobacco Company conducts business. These areas cover Federal and State laws as well as company policies. The topics in this section are: o Laws, Policies, and Taxes o Policy and Procedures o Performance Evaluation System o Use of Promotional Materials and Supplies 0 Jobber Pickup Field Sales Operating Fund
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LAWS, POLICIES, AND TAXES Laws As a member of the R. J. Reynolds Sales Team, you should be familiar with certain "legal" areas of our work. You will, from time to time, receive written instructions on actions which must or must not be taken regarding our Company and your conduct as an employee. Your Division Manager will give you specific instructions on proper conduct while performing your duties. The following items will serve to illustrate RJR's concern for proper employee activities. Robinson-Patman Act The following excerpt is taken from this law enacted June 19, 1963. "That it shall be unlawful for any person to discriminate in favor of one purchaser against another purchaser or purchasers of a commodity bought for resale, with or without processing, by contracting to furnish or furnishing, or by contributing to the furnishing of, any services or facilities connected with the processing, handling, sale or offer- ing for sale of such commodity so purchased upon terms not accorded to all purchasers on proportionally equal terms." With this in mind, please remember that in the solici- tation of orders from retail accounts, you must not suggest to a dealer the jobber with whom an order will be placed, or attempt to influence a dealer's choice of the jobber through whom he prefers to purchase the goods. The decision must be entirely his own.
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Taxation This area has a significant influence on the sale of all cigarette and tobacco products in this country. In 1976, over one-half of the proceeds of domestic retail sales of cigarettes to civilians went to federal, state, and local governments in the form of cigarette taxes. This amounted to approximately $6.1 billion. FEDERAL TAX is collected for each package of cigarettes produced for consumption in the United States. The Federal tax is currently 16C per package. This tax is paid by the manufacturer directly to the Federal Govern- ment. STATE TAX is also collected for each package of ciga- rettes. Each state taxes cigarettes at a specified rate per package. This tax is applied in the form of a tax stamp in all states excluding Hawaii, Michigan, and Alaska. However, the wholesalers in each state pay this tax to the state government, the cost of which is then passed along to the consumer in the purchase price of the cigarettes. LOCAL TAX is also levied by over 350 city and county governments on tobacco products. Your Division Manager can familiarize you with the state and any local tax laws that apply in your area. Rumors From time to time rumors, about this brand or that, or this company or that, surface in various sections of the country. You must have no part in spreading rumors. If told a rumor, regardless about which brand or company, you must deny any knowledge of it. If asked about a rumor, you should state that you know of no grounds for such a story, and quickly drop the subject.
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An employee known to have started or found circulating a rumor will be subject to disciplinary action. Policy on Statements Involving the Company Members of our Field Sales Force must not discuss Company business with any member of the news media (radio or television) no matter how informally. Any news releases, news photographs, and interviews per- taining to Company activities will be issued or approved only by the Home Office. Anytime you're confronted with this situation, contact your Division Management immedi- ately. Policy on Cigarette Advertising and Cigarette Promotional Material Only those cigarette advertising or cigarette promo- tional materials provided by the Company will be offered or placed by members of our Field Sales Force. No other cigarette-related materials are permitted. Only desig- nated officials of the Company are authorized to create or approve cigarette advertising. There must be no exceptions, under any circumstances. Calling on Schools When calling on any and all facilities of schools, colleges, universities, military academies and youth job corps centers, regardless of whether they are located on or off the school's property, you must be aware that certain restrictions on promotion, advertising, and displaying our cigarette and tobacco products exist. A detailed explanation of these restrictions will be given by your Division Management. These four areas are in no way intended to be inclusive with regard to "legal" aspects of conducting business for RJR. They are reprinted here, as they are in the FACTS YOU SHOULD KNOW Book, to familiarize you with important policies that are to be adhered to by all members of R. J. Reynolds. Enclosed in your Sales Representative material is your copy of FACTS YOU SHOULD KNOW. Please read it and return the back page as instructed. 1 OG-4
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POLICY AND PROCEDURES R. J. Reynolds offers many benefits to their employees. In return, the Company asks its employees to adhere to certain policies and procedures. Some of these were discussed previously with regard to rumors and adver- tising materials, however, this section is designed to familiarize you with the Employee Benefits as provided by R. J. Reynolds and also to emphasize some additional policies and procedures required of you by the Company. The Employee Benefit Plans book is enclosed with your material. This book covers all areas of employee benefits from vacations and holidays to long-term disability and retirement plans. You should read this book, and if you have any questions at all regarding your benefits, see your Division Management for clarifi- cation. A Recruiting Bonus is an additional benefit provided by the Company to encourage you to be alert to our re- cruiting needs. You will receive a $200 bonus for any applicant which you send to RJR and who is subsequently hired by R. J. Reynolds. Recruiting good people is essential to RJR, and you will be rewarded for assisting in the recruiting process. Company vehicles, as you are aware, are a big expense for the Company. Personal pride and attention should be given to your vehicle, just as you would if you had paid for the car yourself. Again, refer to your FACTS YOU SHOULD KNOW booklet for Company vehicle procedures. Company Property is everything issued to you by your Division Management in the form of tools, manuals, or other equipment or supplies. It is your responsibility to maintain control of these items. You will be expected to return all such items to your Division, when requested.
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PERFORMANCE EVALUATION SYSTEM As a Sales Representative, you will be evaluated on your job performance. In order to do that effectively, a system has been developed that establishes criteria for job levels. After you are evaluated, you will have the opportunity to sit down with your Division Management to discuss your performance overall and with respect to the specific criteria. This will be invaluable to you in your development since it allows you and your Division Management the opportunity to discuss areas needing improvement and ways to accomplish that improvement. A more in-depth explanation of the Performance Evalu- ation System will be given in the ACCOUNTABILITIES section of this binder. STOP Go to Workbook Exercise #1
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PROGRAM STOP #2 USE OF PROMOTIONAL MATERIALS AND SUPPLIES POS Your Division Management will explain the variety of POS materials available and the specific use of each piece. (Large and small pasters, shelf-talkers, riser cards, decals, clocks, metal signs, etc.) Supplies Your Division Management will explain what supplies are available in the Division Office, including staple guns, hammer, screwdriver, Company drill, sales and merchan- dising case, pens, etc. These items have specific uses and are returnable property. The Call Bag is an aid which allows you to organize the various items which you need in making your retail calls. These items include: 1. Work Plan pasters 2. Work Plan riser cards 3. Assortment of brand family riser cards 4. Work Plan shelf-talkers 5. All RJR package, carton, and facsimile 6. labels Staple gun 7. Scotch tape 8. Masking tape 9. Feather duster 10. Compumark Book 11. Draft Book 12. Cash Order and Inventory Book * 13. Hand-Held Call Tool The Call bag is not intended as a storage case for large quantities of materials, rather it should be organized and reorganized on a daily basis to accommodate the variety of promotional materials and supplies that you need in your daily work. * For Divisions on Sales Information System.
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Maintenance of Company Vehicle It will be important for you to maintain your Company vehicle as outlined in the Owner's Manual. Your Division Management will provide you with a R J R Field Sales Driver's Manual to maintain a record of maintenance. Also, a program called the "Winning Combination", which rewards candidates for continued proper maintenance and accident free driving, will be discussed with you by your Division Management. Loading of Company Vehicle The following materials should be placed in the Company vehicle: 1. Special work plan materials 2. Advertising pieces 3. Temporary displays 4. Permanent displays 5. Supplies The vehicle should be loaded and organized so that the Sales Representative can easily inventory materials for resupply. Travel File The Travel File is provided for each Sales Representa- tive to further aid in the organization of files, paperwork, selling tools, forms, etc. Each Travel File is provided with several files which can be set up to contain contracts, display letters, correspondence, etc. It is recommended that the Travel File be kept in an easily accessible place in the vehicle so that it remains handy and convenient. STOP Go to Workbook Exercise #2 I OG-8
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PROGRAM STOP #3 JOBBER PICKUP Brand Quantities With the many brands we now sell, it is more important than ever to properly organize the cigarette brands in the Company vehicle. The first thing to determine is what brands are being emphasized during the present Work Plan. These brands should be maintained in quantities per Division Manage- ment recommendations. The remainder of brands should be stocked on a propor- tionate basis relating to the sales of each in the particular assignment, emphasizing the growth brands. Replenishing Car Stock When an inventory has been taken on an individual's car stock, and cigarettes need to be purchased for resupply, an inventory checklist should be made out showing the quantity of each brand needed. Each jobber's policy on filling the Sales Representa- tive's orders, of course, varies. In most cases, either the Sales Representative or a clerk can fill the order from the inventory checklist. Loading Company Vehicle Cigarette brands should be loaded in the trunk only in sedans and in the back section only in station wagons and vans. No cigarettes are to be placed in the front section of the vehicle.
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Cigarette brands should be loaded in the vehicle with a logical system in mind. One such system follows: 1. Place Work Plan brands together in the most convenient areas 2. Place King Size together by brand family 3. Place 100s together by brar.d family 4. When putting additional stock in vehicle, rotate existing stock to the front of the half case and place newest stock to the rear Car stock should be inventoried on a daily basis. It is impcrtant to know your jobber's operation, so you ca^ pick up merchandise in the most timely manner. STOP Go to Workbook Exercise *3 1
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PROGRAM STOP #4 FIELD SALES OPERATING FUND The Field Sales Operating Fund is a stipulated amount of money received by you as a Field Sales Representative. This money is to be used to purchase inventory stock and pay for expenses incurred in the performance of your j ob . When the fund is used to purchase inventory stock from the jobber, the stock should be paid for when it is received. The receipt should be marked "Deposit Received" and mailed promptly to the Division Office. As the stock is sold for cash, the money is used to purchase additional inventory stock. Delivered order tickets are also used to purchase additional stock. In order for you to pay for expenses incurred in per- forming your job, the Field Sales Operating Fund will be used. The fund is used for such expenses as parking, tolls, gasoline, paid displays, travel, and living expenses while on travel status. As expenses are incurred in performing your work, a receipt, when necessary, must be obtained and attached to your Weekly Expense and Payroll Report, along with the specific charge entry. For the Field Sales Operating Fund, you will be required to sign a Field Sales Operating Fund receipt, and it is your responsibility to keep the fund solvent. This fund must be returned in full should you leave the Company for any reason. Solvency It is imperative that you maintain your Field Sales Operating Fund. You should check your account on a weekly basis for the first three weeks of employment or until you are familiar and comfortable with the Field Sales Operating Fund. Thereafter, check your account monthly to ensure solvency and to correct any errors that you may be making.
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The Field Sales Operating Fund should balance with cash on hand, inventory stock, damaged goods, delivered order tickets, and expenses listed on Expense and Payroll Reports for the current and any previous unpaid weeks. STOP Go to Workbook Exercise #4
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CALL PROCEDURES 50482 1925 0. Q
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PROGRAM STOP #1 CALL PROCEDURES This section contains information on Call Procedures that will help you achieve success with the prime targets of R. J. Reynolds' Sales Force efforts - the retailers and their customers. The topics included in this section are: o Six Steps of Systematic Selling o Call Procedures and Types of Retail Accounts o Code Date Rotation o o o o o o o o Merchandising Inventory Selling Skills Billing and Order Procedures Displays Advertising Reporting Systems Exhibits A. Distribution of Cigarette Volume by Retail Section B. C. Master Store List Inventory Checklist Form 899 D. Retail Order Receipt Form 1145 - Cash Sale E. Retail Order Receipt Form 1145 - Delivered Order/Bill Through F. G. Prebooking/Order Book Form 7026 Retail Order Receipt Form 1145 - Exchange H. I. Transaction Compumark 5000 Retail Order Receipt Form 7068 - Cash Sale J. Retail Order Receipt Form 7068 - Delivered Order/Bill Through K. Retail Order Receipt Form 7068 - Exchange L. Transaction R J R Standard Account Information Form 7101
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SIX STEPS OF SYSTEMATIC SELLING The Six Steps of Systematic Selling are a simple guide and reminder for making a complete call. The six steps are as follows: 1. Get to the Product This means to come in physical contact with the product wherever it may be located. 2. Rotate and Merchandise Product This means to face up product to ensure freshness and proper positioning on the merchandiser. Code dates are checked during this step. 3. Determine Distribution and Inventor Needs This requires the actual count of pro uct on hand and recording of this information on Inventory Checklist Form 899 (See Exhibit C), or on Hand-Held Computer. 4. Organize and Sell During this step you must decide what to sell and make your presentation. Techniques learned in PSS training will be beneficial during this step. 5. Display and Advertise This step requires you to install displays and point- of-sale (POS) advertising. 6. Complete Appropriate Reports and Forms During this step you are required to complete Form 5000, Cash Order Ticket, draft book, and contract updates for each call as needed. S I S Division will handle reporting of activities on the Hand-Held Computer. By quickly learning and following the above six steps, you will soon develop professional skills which are organized, complete and successful. STOP Go to Workbook Exercise #1 CP-2
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PROGRAM STOP #2 CALL PROCEDURES Call Procedures are techniques used in all retail accounts to achieve the best possible environment for RJR, the retailers and consumers. This logical step-by- step procedure has advantages for you. They are: (1) efficient use of time; (2) organized activities; and (3) increased call count. These Call Procedures will make your job easier by providing information that will make your plan of action clear. Call Procedures are flexible, so you can adapt them to each account. Not all the call procedure steps will be used in every account and possibly not in the order they were presented. These decisions will be made by how you perceive each of your accounts. You are responsible for determining what is necessary to make each account an effective promoter of RJR products. In doing so, you will be making yourself a successful Sales Representative. Types of Retail Accounts According to the latest figures available, there are between 350,000 and 400,000 retail outlets which sell cigarettes over the counter. In addition, approximately 600,000 vending machines are on location in the U.S. A chart is provided to indicate how much cigarette business each type of retail account does. (See Exhibit A) Retail calls are divided among the Sales Representatives within a Division. Most Sales Reps are assigned all the calls within a geographic area, from the largest to the smallest volume accounts. You will be exposed to different retail operations. There are two major categories of retail outlets: 1. INDEPENDENTS -- Independent businessman who owns and operates a retail store to service the pubic, such as a service station, liquor store, drugstore, grocery store or supermarket. 2. CHAIN STORES -- Two or more stores owned by an indi- vidual or group of individuals operating under the same name, such as Kroger, Revco and 7-11. STOP Go to Workbook Exercise #2
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PROGRAM STOP #3 CODE DATE ROTATION Rotation refers to the physical movement of RJR ciga- rettes, smoking and chewing products so as to maintain freshness. Your goal is to prevent the consumer from ever purchasing stale-tasting products. A secondary goal is to minimize the quantity of out-of-date merchandise that has to be shipped back to Winston-Salem. Products are rotated through the use of code dates indicating the month and year of manufacture for all of our brands. These code dates are stamped on all RJR cigarette cartons and tobacco products. Cigarette packs and plug tobacco are the exceptions. No code date appears on these items. The code uses letters of the alphabet from A through L for the months and A through J for the year. The left letter in the code represents the month, and the right letter indicates the year. Code dates are as follows: AD - (Jan. - 1984) HD - (Aug. - 1984) BD - (Feb. - 1984) ID - (Sept. - 1984) CD - (Mar. - 1984) JD - (Oct. - 1984) DD - (Apr. - 1984) KD - (Nov. - 1984) ED - (May - 1984) LD - (Dec. - 1984) FD - (June - 1984) AE - (Jan. - 1985) GD - (July - 1984) Cigarette Carton Rotation Cartons are coded on the end-panel of the carton. When rotating to maintain freshness, move older cartons to the top of the row (or the bottom in certain merchandising situations, i.e., security kits). You should rotate those cartons that are three months or older. Your Trainer will demonstrate the proper method of rotation as you call on Retail Accounts. 1
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Since all RJR cartons are code-dated, this is a rela- tively easy job. Proper rotation is a "must" in retail and direct accounts; therefore, the following policies have been set to ensure product freshness: Rotation Schedule Retail - Pick up in ninth month* Example: March, 1984 (CD) product would be picked up in November, 1984. Direct Accounts - Pick up in sixth month* Example: July, 1984 (GD), product would be returned from a direct account during December, 1984. *Includes month of manufacture Exception: o NOW FILTER BOX 100s. Please consult with Division Management for updated information. Cigarette Package Rotation Packages are not code-dated for rotation purposes. Therefore, this type of rotation is more judgmental. Many times there is a checkstand or sales area within a store that is not the main sales area for cigarettes. In such an area, cigarette packages may sit for a consider- able length of time, even fast-selling brands. You need to become aware of these slow sales areas and periodic- ally move these cigarettes to the main sales counters so that they are sold and consumed while still fresh. There are two ways to determine package freshness: o Squeezing Pack By squeezing a pack of cigarettes, you may or may not be able to determine its freshness. If the squeezed pack crunches (caused by the dry tobacco), the ciga- rettes are stale and unsalable. If there is no characteristic crunch to the pack and you have reason to believe it is stale, a physical inspection is required.
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o Physical Inspection The pack is opened, a cigarette is taken out and broken in half. Feel the tobacco between your fingers to check for dryness of the tobacco. If the tobacco is dry to the touch and powdery looking, the pack and probably several other adjacent packs are stale and should be removed. Because physical inspection of packages is so time-con- suming, it is not to be done on a regular basis. Only when you have a reason to believe some of your packages are not receiving rotation or are outdated, do you rotate or inspect for staleness. Your Division Management will advise you concerning details on rotation in your area. 1 CP-6
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MERCHANDISING After rotation, you should be prepared to properly merchandise our products. Merchandising means all activities performed during the call to promote the sale of our products. You should check the carton/ package selling areas to insure RJR brands are in their designated areas and in sufficient amounts. It may be necessary to take product from the carton merchandiser and open them to stock the package area. This accom- plishes two things. First, it helps prevent out-of-stocks at the package sales area. Second, it gives you a more realistic idea of inventory. You may have to remove all or most of the cartons to fill up the package merchandisers. In this case, you will want to adjust your carton inven- tory figures before making your presentation. Restocking requires you to locate tobacco products which are not presently on a merchandiser. Once this is done, you place these items on package and/or carton merchandisers to ensure full inventory levels at point-of-sale. This impor- tant procedure will assist you when recording inventory levels. During rotation, you should be alert to merchandising opportunities. You might find you need more columns for our brands on the package fixtures, or you may notice the need to rearrange the carton fixtures to give sufficient space to faster-selling items. Also, you must be alert to achieving the best focal position for our tobacco products. As your training progresses, you will become more knowl- edgeable in the total merchandising philosophy; however, it is important to remain alert to areas that need working (package and carton) to ensure that our products are prop- erly exposed to the consumers. Additional information on this topic will be covered in Merchandising Modules I & II. STOP Go to Workbook Exercise #3 ~ CP-7 w N
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PROGRAM STOP #4 INVENTORY After rotating and merchandising are completed, you need to inventory all RJR cigarette products completely. This requires the physical counting and totaling of each RJR cigarette product carried by the account. This is done to determine what is presently in the store and enables you to determine more intelligently what you need to sell to the account. The inventory procedure can tell you many things, including what brands are out-of-stock or not in the account (voids). It also tells you what brands are low-stocked and in danger of selling out before the next order arrives. This information is helpful when you prepare your sales presentation for the account. RJR provides you with an Inventory Checklist Form 899 to record stock levels. (See Exhibit C) Divisions utilizing the Hand-Held Computer will record inventory in the normal manner as explained in the Hand-Held Manual. STOP Go to Workbook Exercise #4
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PROGRAM STOP #5 SELLING SKILLS After you have determined inventory levels in a partic- ular account, you need to organize your selling efforts. You need to know: o What to sell o Who to sell to o How to sell Depending on your Work Plan, current inventory levels, merchandising conditions, POS advertisements, etc., you will decide what to sell. You also need to know who to sell to. You don't want to spend time making your sales presentation to an individual who does not have authority to make decisions concerning tobacco orders. If you are not sure of the store authority, ask employees for this important account knowledge. In the actual sales presentation, you will use a set of selling skills called PSS (Professional Selling Skills). These basic selling skills will be covered later on in the training program. This training will provide you with skills that can be used in your day-to-day selling. By applying PSS, you logically control the selling interview and obtain a commitment from your account. STOP Go to Workbook Exercise #5
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PROGRAM STOP #6 BILLING AND ORDER PROCEDURES In the actual sale of our products to the trade, RJR sells to several different levels of accounts: Jobbers, Direct Vendors, Military, Institutional Accounts, and Retail Accounts. Retail Accounts In selling to the retail trade, you are involved with five basic methods of ordering, delivering, and billing cigarettes to your accounts. 1. CASH SALE: One method is to bring the goods from your vehicle into the account, receiving cash on the spot for the merchandise from the store manager. To complete this transaction, a Retail Order Receipt must be completed indicating the name of the retail account and the product delivered by brand. The ticket is filled out in detail, by brand, showing the dealer's cost by the quantity of each brand sold. The total dollar amount should also be shown at the bottom. The ticket should be marked "Paid Cash," and you should sign the ticket, obtaining the dealer's signature. This makes the order binding (See Exhibits D & I). The original copy is given to the retailer for his records, and a copy is mailed to your Division Office.
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2. DELIVERED ORDER: A second method used is called a Delivered Order or Bill Through. This billing pro- cedure is used when a retail account wants to be billed for the cigarettes or tobacco by their regular wholesale supplier rather than pay cash to the Sales Rep. In this situation, you bring the sold merchan- dise in from your vehicle and deliver it to the retailer. To complete the transaction, a Retail Order Receipt must be filled out, indicating the name of the jobber, the retail account name, and the product delivered, by brand. No dollar amounts should be shown on the ticket since the wholesaler will charge his usual price for the cigarettes or tobacco products. Rather than prices, something similar to the following should be written on the Ticket: "Delivered Order - 5 Ctns. King." Both the Sales Rep and the dealer must sign the ticket to make the order binding. This Delivered Order Ticket is as good as cash to you since you merely turn in_such_tickets_to the respective wholesaler or jobber. They, upon receipt of the ticket, give you the actual merchandise on the ticket or its equivalent. The wholesaler, in turn, bills the account for the merchandise. (See Exhibits E & J) In a Delivered Order transaction, you retain the original copy of the Cash Order Ticket for presentation to the jobber and give a coy of the ticket to the retailer for his records. 3. PREBOOKING: The third method is called a Jobber Delivery or Prebooking. In this method, you write up an order on a special prebooking form (Exhibit F) , without actually bringing the merchandise in from your vehicle. Instead, the completed ticket is delivered to the appropriate jobber, who in turn delivers and bills the account for the merchandise. This system is most often used when a large quantity of product is needed, such as for an upcoming promotion or coupon drop.
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4. ORDER BOOK: A fourth method, using the store's Retail Order Book, is not an actual billing procedure, but it is an effective ordering method. Here you get the order book used by the store and either place or have the order clerk place the extra order in the book. This procedure does not work if there is an immediate need for stock (in which case one of the other order methods would be used), but it is effective for several reasons. If a low or out-of-stock persists on a brand, this method of working with the store's clerk, who orders the cigarettes, will allow for educating or informing the clerk of the situation. This will encourage the clerk to order more effec- tively in the future. It can be used in connection with an off-the- car sale and can be effective if used this way. You can bring in stock that will carry them until the next order arrives. If, in addition, you place a "back up" order in the store's order book, you can help prevent future low or out-of-stocks. Again you are educating the clerk in the amount of product needed. Your goal is to have sufficient product in the store at all times. Even though you can help when you are present, it's important to have the store order properly. Working with a clerk and using the store's order book will help ensure adequate inventory of our brands. 5. EXCHANGE: A fifth method is called Exchange. In this method, you again bring the products in from your vehicle, but this time you exchange the merchandise for existing in-store tobacco products of equal value. This method is not as effective and should be used only in situations where you are unable to use another billing method. To complete this transaction, a Retail Order Receipt must be completed, indicating the name of the retail account and the product delivered by brand. The ticket should be signed by both the Sales Representative and the retailer to make the order binding. No dollar amounts should be shown on the ticket as you are removing products of value equal to the products that you delivered. The ticket should be marked "Exchanged" to avoid confusion with a cash sale. (See Exhibits G & K) In an exchange trans- action, the original ticket is given to the retailer for his records, and a copy is mailed to your Division Office. 1 CP-12
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Whichever order procedure you use, your Cash Order Ticket or Prebooking Form plays a part in this trans- action. They must be filled out correctly in each case. One copy is given to the dealer for his records. One copy is mailed to the Division Office or given to the wholesaler in the case of a delivered order or prebook. A third copy would be for your records, if needed. STOP Go to Workbook Exercise #6
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DISPLAYS PROGRAM STOP #7 One of your primary duties is selling and placing a variety of displays. One of the first things to consider in placing any display is location. Look for locations which offer: o High customer traffic o High brand visibility o Easy customer access If these conditions are not met, it may be wise not to place the display. However, there may be instances when obtaining distribution objectives and building stock levels would require you to place the display in an alternate location. The thing to keep in mind is to strive for maximum effectiveness in placement of your displays. Division Management will demonstrate the actual assembly and placement of various displays. ADVERTISING Another primary responsibility you have is the placement of point-of-sale advertising (POS). There are three basic considerations: 1. What product(s) do you want to advertise? 2. Where is the best location to place the advertising you have selected? (The three display location conditions indicated above also apply to advertising) 3. What type of POS? - Temporary - Permanent The situation will often dictate which type of advertising to place. Temporary and permanent advertising are very effective if used properly. Remember your goal is to dominate the point-of-sale in your accounts. It's not quantity that makes good advertising--it's quality! STOP Go to Workbook Exercise #7 ' CP-14
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REPORTING SYSTEMS The last function which must be handled in each call is the recording of your activities while making the call. This information must be recorded before leaving the call in order for it to be totally accurate. Specific instructions on completing your Compumark Call Report or recording information on the Hand/Held Computer are contained in their respective manuals. Form 7101 (Exhibit L) Utilize this form when reporting new calls, changing account information, or deleting an account.
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EXHIBIT A DISTRIBUTION OF CIGARETTE VOLUME BY RETAIL SECTION JUNE QUARTER, 1982 WEEKLY RETAIL SECTOR NUMBER OF STORES PERCENTAGE OF VOLUME VOLUME STORE (CTNS.) Superstores 4,351 7% 0 1000 Supermarket 36,296 28 430 Small Grocery 83,541 12 75 Convenience 59,465 13 145 Total Grocery 183,953 (60) (190) Drug 33,797 10 170 Service Station 41,301 8 100 Discount 10,221 6 385 Liquor 23,038 5 125 Tobacco/Newsstand 11,253 3 155 Military 2,097 3 750 ` Restaurant/Bar 18,504 1 25 Other 34,563 4 50 TOTAL 358,727 100% 164 SOURCES: Compumark ~ ~ r
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GHCSISRP MASTER ACCOUNT LIST 02/06/85 TERRITORY 212404 CLASS-FREOUENCY HAND-HELD NAME WEEKLY VOLUME MERCHOSR ACCOUNT CHAIN-ID TYPE P.D.I. OR ROUTE NAME & ADDRESS CHAIN NAME SEGMENT CONTRACT UNIT --------------------------------------- 301806 A 6 P 448 A R P 448 K04 B & W CENTRAL 2 2420 WYCLIFF RD 0208-02-01 450 EXTENDERS 2 101 RALEIGH A A P - CHARLOT R 180 UNIVERSAL 1 NC 27607 SS GROUND MOUNT 1 SHELF SS D12 1 192652 KERR DRUG N 18 KERR DRUG N 18 A04 20 COLUMN 2 2462 MYCLIFF RO -- 155 CLOCK 1 104 RALEIGH R NC 27607 DG 192656 SAV-A-TON #27 SAV-A-TON #27 A04 20 COLUMN 2 5308 HILLSBORO 2311-00-00 140 CLOCK 1 107 RALEIGH SAV-A-TON OIL I R MALL/MINDOM MOUT 5 NC 27606 GS POLE MOUNT 1 799983 FAIRGROUNDS BEVERAGE FAIRGROUNDS BEVE C04 MOD OVERHEAD PK I 5209 HILLSBORO -- 75 CIG CENTER SIGN I 110 RALEIGH R CLOCK 1 NC 27606 CN WALL/WINDOW MOUT 8 COUNTER PC04K 1 014828 KAYO OIL #33061 KAYO OIL #33061 A04 DEALER OWNED 2 880 E. CHAPMAN ST. 0211-00-00 150 DEALER OWNED 1 111 CARY KAYO OIL CO. R CLOCK I NC 27511 GS GROUND MOUNT 1 COUNTER PC04K 1 800066 FAST BREAK FOOD STR FAST BREAK FOODS A04 PM OVERHEAD 1 1401 E.MAYNARD RD. -- 150 CLOCK 1 134 CARY R WALL/WINDOW MOUT 1 NC 27511 CM TOPPER 1 COUNTER PCD4K i CP EXHIBIT B -tb6t Yat7as
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GHCSISRP MASTER ACCOUNT LIST 02/06/85 TERRITORY 212404 CLASS-FREOUENCY HAND-HELD NAME WEEKLY VOLUME MERCHDSR ACCOUNT CHAIN-ID TYPE P-D.I. OR ROUTE NAME & ADDRESS CHAIN NAME SEGMENT CONTRACT UNIT ------------------------------------------------------------------------------- 621531 136 GROCERY BOY JR #19 800 E MAYNARD R CARY NC 27511 GROCERY BOY JR M - 804 90 R CN PM OVERHEAD 1 301865 WINN DIXIE #802 WINN DIXIE #802 K02 11 COLUMN 14 VILLAGE SOUARE 0111-04-03 350 180 UNIVERSAL 1 137 CARY WINN-DIXIE/RALE R CANOPY SIGN 1 NC 27511 SM CHECKLANE 2A 7 SHELF SS D10 1 192680 KERR DRUGS #20 KERR DRUGS M20 A04 20 COLUMN 2 VILLAGE SO S/C -- 150 CLOCK 1 140 CARY R NC 27511 DG 301866 CONV.F000 MART N37CO4 CONV.FOOD MART A04 PM OVERHEAD 2 684 WESTERN BLVD.EXT 0305-00-00 180 GONDOLA 1 143 CARY CONVENIENT INDU R NC 27511 CN 301867 BIG STAR M4740 BIG STAR #4740 K02 14 COLUMN 8 CARY VILLAGE 0206-06-00 950 180 UNIVERSAL t 146 CARY GRAND UNION-CAR R SHELF SS C10 1 NC 27511 SM 799643 TREASURY DRUGS #828 TREASURY DRUGS M 804 72 DOUBLE DEPTH I 1105 WALNUT ST 0312-00-00 120 CLOCK 1 149 CARY THRIFT DRUG COM R COUNTER PC048 1 NC 27511 DG SHELF SS 81 1 r CP EXHIBIT B Efi6 L ZBtOS
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INVENTORY CHECKLIST RJRT Form 809 - R.v. 2/85 CP EXHIBIT C RAN ON HAND SUG. ORD. BRAND ON HAND SUG. ORD. BRAND ON HAND SUG. ORD. CIGARETTES CIGARETTES SMOKING BRIGHT SALEM APPLE BRIGHT 100 SALEM 100 C. HALL CAMEL REG. SALEM LT. MADEIRA CAMEL F. SALEM LT. 100 P. ALBERT CAMEL LT. LTL100SLIM RoYal Comfort CAMEL LT. 100 SALEM UL. LT. CAMEL LT. HP SALEM UL. LT. 100 CENTURY F. STERLING F. CENTURY LT. STERLING M. CENTURY F. 100 VANTAGE CENTURY LT.100 VANTAGE M. DORAL VANTAGE 100 DORAL M. VANTAGE 100 M DORAL 100 VANTAGE UL.LT CHEWING DORAL 100 M. VAN LT. MAGE UL. APPLE MORE 120 VANTAGE UL. LT. 100 DAYS WORK MORE M. 120 VANTAGE UL LT. M. 100 R.J. GOLD ` MORE LT. 100 WINSTON WORK HORSE MORE LT. 100 M WINSTON BOX NOW F. SOFT WINSTON 100 NOW M. SOFT WINSTON LT. CIGARS NOW F. 100 WINSTON LT.100 WINCHESTER NOW M. 100 WINSTON UL. LT. NOW F. BOX BO WINSTON UL. LT. 100 NOW F. BOX 100 CommodltY No. 00899•S ~ 0 f ~ N
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CP EXHIBIT D R. J. Reynolds Tobacco Company - Retail Order Receipt Jobber Account Name Date 00'i z/ / Street O _ M#9 Av .S'~"/IrEET City State Zip T ID * ax CASH SW OELIVEREO 0 SUGGESTED ORDER 0 EXCHANGE 0 CIGARETTES Bright Bright 100 Camel Regular Camel Filters CARTONS CARTONS Vantage Ultra Lights Menthol Vantage Ultra Lts. Menthol 100 Winston Winston Box Winston 100 Winston Lights Winston Lights 100 Winston Ultra Lights Winston Ultra Lights 100 CIGARETTES Vantage Ultra Lights 100 Ooral 100 Doral Total Kings Tota1100's Century Filter Century Filter 100 Century Lights Century Lights 100 Total Kings Total 100's Doral Menthol Doral Menthol 100 Total Kings Total 100's Tobacco, Plug. Chew, Cigars TOTAL DISPLAYS Paid Cash 0 To Be Paid At Main Office 0 TYPE NUMBER PAYMENT PERIOD `° ° T.4.j/E ,~ a ~ E RJR Rep.: E ~ u PURCHASER /v1. Vl~IIrrS Camel Filters Hard Pack Camel Lights Camel Lights 100 Camel Lights Hard Pack More 120 More Menthol 120 More Lights 100 More Lights 100 Menthol Now Filter Soft/Box Now Menthol Soft Now Filter 100/Box Now Menthol 100 Salem Salem 100 Salem Lights Salem Lights 100 Salem Slim Lights 100 Salem Ultra Lights Salem Ultra Lights 100 Sterling Filter Sterling Menthol Vantage Vantage 100 Vantage Menthol Vantage 100 Menthol Vantage Ultra Lights i Total T ALS A Kinss @ 100's @ Doral KS @ 0 :_-&. ~ . ~Z:Doral 100 @ ~~ Cent. KS @ Cent 100 @ CREDIT L GRAND TOTAL © © e ara rlrffr"_~ L" 0 a~o N
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CP EXHIBIT E ~. Rlynold~Tobacco Company - Retail Order Receipt Jobber CASH 0 DELIVERED SUGGESTED ORDER 0 Street Z/1l1 A .O%V WAWCity State Zip Tuc 10 * Account Name • T - Dete Sterling Filter Sterling Menthol Vantage Vantage 100 Vantage Menthol Vantage 100 Menthol Vantage Ultra Lights Salem Ultra Lights 100 CARTONS EXCHANGE 0 CIGARETTES Vantage Ultra Lights 100 CARTONS Vantage Ultra Lights Menthol Vantage Ultra Lts. Menthol 100 Winston Winston Box Winston 100 Winston Lights Winston Lights 100 Winston Ultra Lights Winston Ultra Lights 100 Now Filter 100/Box Total Kings Now Menthol 100 Total 100's Salem Century Filter Salem 100 Century Filter 100 Salem Lightt Century Lights Salem Lights 100 Century Lights 100 Salem Slim Lights 100 Total Kings Salem Ultra Lights Total 100's CIGARETTES Bright Bright 100 Camel Regular Camel Filters Camel Filters Hard Pack Camel Lights Camel Lights 100 Camel Lights Hard Pack More 120 More Menthol 120 More Lights 100 More Lights 100 Menthol Now Filter Soft/Box Now Menthol Soft ` Doral Doral 100 Doral Menthol Doral Menthol 100 _ Total Kings Total 100's Tobacco, Plug, Chew, Cigars TOTAL DISPLAYS Paid Cash 0 To Be Paid At Main Office 0 TYPE NUMBER PAYMENT PERIOD i.- E RJR Rep.: .J;94!( 2),,c ' u° PURCHASER JMIC • TD/eIYS Total TOTALS Kings @ 100's @ Doral KS @ Doral 100 @ Cent. KS @ Cent 100 @ CREDIT GRAND TOTAL a e _ _ .
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CP EXHIBIT G R. J. Reynolds Tobacco Company - Retail Order Receipt ~o ~Z E> .~ CASH 0 State Street A Account Name Jobber a 0 0 Zip DELIVERED 0 SUGGE CIGARETTES Bright Bright 100 Camel Regular Camel Filters Camel Filters Hard Pack Camel Lights Camel Lights 100 Camel Lights Hard Pack More 120 More Menthol 120 More Lights 100 More Lights 100 Menthol Now Filter Soft/Box Now Menthol Soft Now Filter 100/Box Now Menthol 100 Salem Salem 100 Salem Lights Salem Lights 100 Salem Slim Lights 100 Salem Ultra Lights Salem Ultra Lights 100 Sterling Filter Sterling Menthol Vantage Vantage 100 Vantage Menthol Vantage 100 Menthol Vantage Ultra Lights Oete Clty Tax I D ~ __ STED ORDER 0 CARTONS CARTONS Vantage Ultra Lts. Menthol 100 Winston Winston Box Winston 100 Winston Lights Winston Lights 100 Winston Ultra Lights Winston Ultra Lights 100 EXCHANGE CIGARETTES Vantage Ultra Lights 100 Vantage Ultra Lights Menthol Total Kings Total 100's Century Filter Century Filter 100 Century Lights Century Lights 100 Total Kings Total 100's Doral Doral 100 Doral Menthol Doral Menthol 100 Total Kings, Total 100's Tobacco, Plug, Chew, Cigars TOTA L DISPLAYS Paid Cash [~ To Be Paid At Main Office ~ TYPE NUMBER PAYMENT PERIOD oV ~ E RJR Rep.: 0 ¢'ci PURCHASER II,~ • TQ/~I~r S ota TOTA LS Kings @ 100's @ Doral KS @ Doral 100 @ Cent. KS @ Cent 100 @ CREDIT GRAND TOTAL s _ s
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+ OCOP1'R/GMTEO COMPUMAIIK IMC • 111 )6) 7400 ~ - RJR CALL REPORT ~ DATE NAME _ STORE NAME ADDRESS _ CETY & tTATE TERRRORY 0 . 0 an Za•nnIT D.D~A 1:7 7 1 1 1 1 1 1 1 1 1 r 1:7 2 2 2 2 2 2 2 2 2 2 ,1 .I'3 3 3 3.1 .3 3 3 3 3 M 4 1' 31 '4 :4 3 4 4 4 4 4 7 C96'. (5'Ti6 TJ. I 1,5-`•5 ~5-'S- 5 w B.3'i :6'~ B.6 6 8 6 6 6 6 TH 7.1 7-' T 7].7 .7 ] 7'7 7 F 1 B B 8 B 8 2 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 9 9 SALES NJRTFOAM $00011#UG 14 MAKE NO MARKS ANY PLACE ABOVE THIS UNE BRAND DISTRIBUTION INFORMATION CP EXHIBIT H E6141 145SB321 AOa01 MARK IF ® RAPID COVERAGE • s NO DISTRIBUTION OS s CORRECTED DIS TRIBUTION © . NEW DISTRIBUT ION CIGARETTES 11 SALEM UL 100 0 S 31 rANI ut u M n 0 S NEW BRANDS -I I CAM El 0 S. 11 SALEM SLIM ITS 0 S 37 r.rT ut u M no D S, 61 STERLING R :0 S 2 CAMEL F. D s 20 DORAL 11 F. 0 'S 31 BRIGHT 85 •D S - 62 STERLING M .0 S 3 CAMEL LT. D 5 21 DORAL 11 M. .0 .S• 31 BRIGHT 100 D S~ 63 DORAL F.K .D S 1 CAMEL LT. 100 m' Z1 22 VANTAGE F. (Z tM 11 VANTAiE M 1/0 mJ M 61 DORAL M.K. OZ` '.S . 6 CAMEL LT. HP. D T 23 VANTAGE M. 0 T 41 CAMEL F. HP. 'II 5-' 65I DORAL F. 100 0 S 6 WINSTON 0 S 24 VANTAGE 100 0 S 42 CENTURY F. 'D S 61 DORAL M 100 0 S 7 WINSTON 100 0 S 26 rANTAGE Ilt lT 11 D S 43 CENTURY LT. Il 1 67 CIGARETTE 7 D S I WINSTON B. 0 S 21 MA11cE ul EO 160 D.S 44 CENTURY F. 100 `n 'S, 68 CIGARETTE 8 /D S I WINSTON lT. 0 5 27 MORE F. 0 S 46 CENTURY LT. 100 0 S 61 CIGARETTE 9 0 5 10 WINSTOM LT 10 0 S 21 MORE M. 0 S 50 CIGARETTE 10 0 S 11 WINSTON Ut 15 D s 21 MOKE ETS 100 F 0 S U MITEO DISTRIBUTION 01 CIGARETTE 11 0 S 12 vaNSroN uE .oo 0 S 31 M0/1E ITS 100 M 0 S IN STORE 12 CIGARETTE 12 D 'S 13 SALEM 0 S 31 NOW F. 85 Ds 41 WINSTON INTL (D 63 CIGARETTE 13 01 'S 14 SALEM 100 0 S 32 NOW M. 85 0 S 47 NOW 80 BOX D 64 CIGARETTE 14 'D S 16 SALEM lT. 0 S 33 NOW F. 100 0 S 41 NOW 100 BOX D 15 CIGARETTE 15 D 5 16 SALEM lT 100 0 S 34 NOW M 100 0 S 45 LIMITED 1 D 11 CIGARETTE 16 0 S 17 SALEM Ul. 0 S 35 WINCHESTER 0 S 60 LIMITED 2 D DISPLAYS IN STORE 1 I / i - P ACKAGE - CAS H O RDE R BILLED EX CHA NGE PRE TO BACCO W MotESALE SALE SPE CIAL CARTO N SAL E B OO K THRU B OO K ICASESI 1 4 8 16 32 P N? h~Rl ~ ~ x F -P' 15 CARTON 1 2 4 P NP MR 1 CARTON 2 l - D 0 0 0 0 0 0 0 0 u - c C 0 30 CARTON : 2 4 P NP MR 20 PACK 1 2 4 8 16 32 P r;P ~'R 1 1 1 1 1 1 1 1 1 1 1 1 1 1 90 CARTON 2 4 P NP MR 30 PACK 1 2 4 B 16 32 P h P R1R ' NP M R T 1 2 4 8 16 32 P NP h"R ~ 2 2 2 2 2 2 2 2 2 2 2 2 2 2 : , 1 Z : : 120 CARTON 1 2 . 4 P 3 1 CAR ON _I 3 3 3 3 3 3 3 3 3 3 3 3 3 3 ? 3 150 CARTON ~ 2 4 P NP MR B1G1F 1 2 4 8 16 32 P NP MR 4 4 4 4 4 4 4 4 4 S 4 1 . : 1 180 CARTON ': 4 P NP MR SPECIAL E 1 2 4 8 16 32 P NP MR -I 5 5 5 5 5 5 5 5 5 5 . :1 - - ~ ~ MASS DISPLAY 1 2 4 P NP A1R SPECIAL F 1 2 4 B 16 32 P NP 1.1R ~ 6 6 6 6 6 6 6 6 6 6 6 6 G 6 6 L E E : 5 i,• r r B1G1F-FLOOR 1 2 4 P NPMR SPECIAL G 1 2 4 81632PNPM~ 7 7 7 7 7 7 7 7 7 7 ' 7 7 7 ', 7 i 7 SPECIAL A 1 2 4 P NP A1R MILITARY 1 2 4 8 16 32 P NP M ~ B 8 9 9 8 9 8 9 8 9 8 9 8 8 8 1 9 9 9 ° 9 E g 5 _ . E .. 5 ~ : SPECIAL B 12' SPECIAL C 1 2 4 P NP MR 4 P NP MR m P01 SPECIAL D ': 4 P NP MR PLAST IC PKG S IGN 4 ~ •5 r 2 - PLAN P AY MENTS ' ADVE/ITISING PlACEO TO DAY TOTAL IN STO/IE PFD L IGHTED i6 R 2 4 6 - ~ R EASON TO PAY s.tv PCD PFD w/~ IN1 urr ~"l A lE DISPLAY S PAPER PACKA GE TOP Si GN ~ '~ R : 4 - 1 N 0N-RJR PRO D 1 NO DECALS = ~ C NCal6 f FI10~1 SI Gh F 0 N DISPL AY PAYMEN TS METAL SIGNS CANO PY SIG N k - O DISP AY OR NOT F D P OTHER CIG C ENTER S IGN '- - 2 N S L ELF-SER VICE . . . ~i S PECIAL QU ESTIONS GROU ND/POLE M1 F 3 3 3 s CIOC K/MEN 4 6 1~: U F 1 2 .. 111111110 3 IN M SUFFICI ERCHA ENT NDIS E 3 CENTRA L 1 1 CTN I 0 COPY R 1 2 4 8': BAR - " AO M VEKTISII ENT 011 I /G K NSUi EOUIKE FICIENT 4 4 4 4 PERM 3 0 1 2 3 4 5 PDI A 6 1G R 1 2 4 - III SEII CAII DS !~ PDI B R 1 2 4 1'.5 S 'M -/ PKOPEII SfKUCTI IOCA ON TION' OK MOT POI C R 2 » b ~ SIIIE ~ ~ E CHAN GE FREQUE NCY WEEKLY ROUTE P WORKED WIT H ONL Y CLASSIFICA TION C ARTON VOl NUMBER - AO M ' ' - O M FILL 1N THE OV WHEN A NORM AL C AL RETAIL i• . CALL IS N0T B EING MADE L ! - R M AND YOU JUST WANT TO . - DS OT HER MAKE A CHAN GE 0 I DELETE - - - STORE N0 50482 19 4-8 DELETE TH15 D STORE
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R.J.Reynolds Tobacco Company 11J/IT Forrn 7068 - a.v, ves RETAI L ORDER RECEIPT ACCOUNT NAME /J7o~Z&w STREET ~lO f AJV'/zII 5MIr~. r CITY v / s A/IV CASH WDELIVERED 0 SUGGESTED ORDER 0 ART N CIGARETTES X Bright Bright 100 CGmet Regular Cemel Filters C+mel Filters Hard Pack Camel Lights Camel Lighes 100 Camel Lights Hard Pack More 120 More Menthol 120 More Lights 100 More Lights 100 Menthol Now Fitter Soft/Box Now Menthol Soft Now Filter 100/Box Now Menthol 100 ~ Salem S+Iem 100 Salem Lights Sstem Lights 100 Salem Slim Lights 100 Salem Ultra Lights Salem Ultra LigAts 100 Sterling Fitter Sterling Menthol Vantage Vantage Menthol Vantage 100 Vantage 100 Menthol TOTAL Paid Cash 0 DISPLAYS To Be Paid At Main Office 0 Display Refused ~ TYPE NUMBER PAYMENT PERIOD RJR REP.: PURCHASER: NOTES: IJ CP EXHIBIT I Commoalty No. 070660 JOBBER DATE -41504 V%f TAXID# STATE N r ZIP EXCHANGE 0 CARTONS CIGARETTES TOTAL Vantage Ultra Lights Vantage Ultra Lights 100 Vantage Ultra Lights Menthol Vantage Ultra Lights Menthol 100 Winston Winston Box ~ Winston 100 «'T Winston Lights Winston Lights 100 Winston Ultra Lights Winston Ultra Lights 100 _ ~ Sub-Total Kings Sub-Total 100's Century Filter Century Filter 100 Century Lights Century Lights 100 Sub-Total Doral Doral 100 Dont Menthol Dor.I Menthol 100 Sub-Total AMOUNT TOBACCO, PLUG, CHEW, CIGARS TOTAL Sub-Total Sub-Total Ciguettes Sub-Total Century Sub-Total Ooret Sub-Total Tobacco CREDIT GRAND TOTAL _213. Aryli ------------------------------- ITEMS NEEDED FROM VEHICLES Pkg./Ctn. Tegs ' Fecsimilies Displays Temp./Perm.
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R.J.Reynolds Tobacco Company CP EXHIBIT J RJNT Fo.m 7069 - R«. zes RETAIL ORDER RECEIPT :COUNT NAME 4000VAP-I&W X-R>WO JOBBER pow STREET-/40 2 10IIII•400*p Vrorle E/ CITY A q I ~0 ajW CASH 0 DELIVERED 0 ART N CIGARETTES Bright ~ Bright 100 Camel Regular Camel Filters Camel Filters Hard Pack Camel Lights Camel lights 100 Camel Lights Hard Pack More 120 More Menthol 120 More Lights 100 More Lights 100 Menthol Now Filter Soft/Box Now Menthol Soft Now Filter 100/Box Now Menthol 100 ~ Salem Salem 100 Salem Lights Salem Lights 100 Salem Slim Lights 100 Salem Ultra Lights Salem Ultra Lights 100 Sterling Filter Sterling Menthol Vantage Vantage Menthol Vantage 100 Vantage 100 Menthol DISPLAYS TYPE NU, ?ER PAY -NT i PE F 0 RJR F '- Paid C To Bc 0` PURCf~~SER: , 0, •R• TO/utS Sub-Total Sub-Total Cigarettes Sub-Total Century Sub-Total Doral Sub-Total Tobacco CREDIT GRAND TOTAL ------------------------------------ -------------------------------- vOTES Pkg./Ctn. Tags lrl 0 'IF N Facsimilies ~ +fl Displays Temp./Perm. n TAXI'D*, Comrnodley No. 070680 DATE up _ STATE ' • ZIP SUGGESTED ORDER 0 EXCHANGE 0 TOTAL ash 1:1 Paid At Main Office 0 Display Refused C3 CARTONS CIGARETTES TOTAL Vantage Ultra Lights Vantage Ultra Lights 100 Vantage Ultra Lights Menthol Vantage Ultra Lights Menthol 100 Winston ~ Winston Box Nfinston 100 Winston Lights Winston Lights 100 Winston Ultra Lights Winston Ultra Lights 100 Sub-Total Kings Sub-Total 100's Century Filter Century Filter 100 Century Lights Century Lights 100 Sub-Total Ooral Ooraf 100 Doral Menthol Ooral Menthol 100 Sub-Total AMOUNT TOBACCO, PLUG. CHEW. CIGARS TOTAL ITEMS NEEDED FROM VEHICLES
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CP EXHIBIT K 1URT Form 7068 - R.v. 2/8S ACCOUNT NAME R.J.Reynolds Tobacco Company RETAIL ORDER RECEIPT JOBBE R Commodity No. 070680 DATE J_~ ~ STREET _!Q` TAXID# - f- CITY _ A" ' f~ M/&V STATE ~ 21P CASH O DELIVERED D SUGGESTED ORDER 0 EXCHANGE VOO ART N CIGARETTES TOTAL CARTONS CIGARETTES TOTAL Bright Bright 100 Camel Regular Camel Filters Camel Filters Hard Pack Camel Lights Camel Lights 100 Camel Lights Hard Pack More 120 More Menthol 120 More Lights 100 More Lights 100 Menthol Now Filter Soft/Box Now Menthol Soft Now Filter 100/Box Now Menthol 100 Salem Salem 100 Salem Lights Salem Lights 100 Salem Slim Lights 100 Salem Ultra Lights Salem Ultra Lights 100 Sterling Filter Sterling Menthol Vantage Vantage Menthol Vantage 100 Vantage 100 Menthol Vantage Ultra Lights Vantage Ultra Lights 100 Vantage Ultra Lights Menthol Vantage Ultra Lights Menthol 100 Winston Winston Box Winston 100 Winston Lights Winston Lights 100 Winston Ultra Lights Winston Ultra Lights 100 Sub-Total Kinps Sub-Total 100's Century Filter Century Filter 100 Century Lights Century Lights 100 Sub-Total Doral Doral 100 Doral Menthol Dorat Menthol 100 Sub-Total Paid Cash El DISPLAYS To Be Paid At Main Office D Display Refused ~ TYPE NUMBER PAYMENT PERIOD RJR REP.: PURCHASER: AMOUNT TOBACCO, PLUG. CHEW. CIGARS TOTAL Sub-Total Sub-Total Cigarettes Sub-Total Century Sub-Total Doral Sub-Total Tobacco CREDIT GRAND TOTAL --------------------------------L ------------------------------- NOTES: ITEMS NEEDED FROM VEHICLES ' PDI U Pkg./Ctn. Tag.c 0 f Paper Advenising cb Facsimilies ~ ti yy Decals Displays Temp /Perm ~ . . ~ Other
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RJRT Form 7101 - Rev. 11/84 Commodity No. 071019 1. CODE 2 ACCOUNT RJR STANDARD ACCOUNT INFORMATION CP EXHIBI D NEW ACCOUNT ~ CHANGE ACCOUNT 3. TERRITORY 4. ROUTE I I I I 5. HAND-HELD NAME I 1 I I I I 6. ACCOUNT NAME AND ADDRESS L. j (NEW ACCOUNTS WILL BE ASSIGNED NUMBER BY COMPUTER) NAME ADDR 1 ADDR 2 CITY STATE 7. MAILING NAME AND ADDRESS NAME (ENTER IF DIFFERENT FROM SECTION 6) ADDR 1 ADDR 2 CITY STATE 8. TYPE R` RETAIL 9. SEGMENT ~ D = DIRECT I = INDIRECT 10. CONTRACT TYPE Q r 11. WEEKLY CARTON VOLUME 12. 13. ~ I I CALL CLASSIFICATION FREOUENCY NAME DATE CI DELETE ACCOUNT D ACCT. ZIP MAIL ZIP CN ~ C3NVENIENCE SF • SMALL FOOD 21 • DRUG CHAIN DG • DRUG SM • SUPERMARKET 22 • CONVENIENCE CH. DT - DISCOUNT SS - SUPERSTORE 23 • MASS MERCH. GS • GAS STATION T! - TOBACCO NEWS 24 • GAS STA. IN • INSTITUTION UN • UNIV/COLLEGE 30 • VENDOR LO • LIOUOR 40 • WHSLE. GRO. M11 • MILITARY IRE T 41 •GRO COOP OM• OTNER B. DISTR. 60 •MILITARY RB • REST/BAR 20 • SUP. MKT. CM. 70 -INST. CONTRACT PLAN I I K01 942 - CHAIN WHSE. IN - INSTITUTION MI - MILITARY TO - TOp. DISTR. VE•VENDOR WG • WHSLE. GAO. MONTH EFFECTIVE A01 K02 A02 K04 A04 604 C04 C13 •62 DOES ACCOUNT HAVE SELF-OWNED VENDING MACHINES? 14. IS THIS A CHAIN ACCOUNT? Y/N 0 IF YES. CHAIN HEADOUARTERS NAME 15. IS ACCOUNT A CHAIN, OR INCORPORATED? Y/N U Y = YES N = NO D0d 104 SIS CHAIN ID NO. DISTRICT/BRANCH IF NO, STORES FEDERAL I.D. NUMBER F-1 OR OWNERS SOCIAL SECURITY NUMBER F] f I i (DIVISION OFFICE FILL IN) ~ O ~ m N NUMBER MUST BE REPORTED:
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4 ~ ~ a ~ TYPE 5 COLUMN 7 COLUMN 11 COLUMN 14 COLUMN 18 COLUMN 20 COLUMN SLIDE BY TRACK R.J.R. OTHER END FRAME 4 SIDE CENTRALIZED 5 SIDE CENTRALIZED PACKAGE TYPE 6 SIDED CENTRALIZED OVERHEAD PACKAGE GONDOLA PACKAGE SPRING LOAD MERCH. SPECIAL RJR DEALER OWNED B&W OVERHEAD PM OVERHEAD ADJ. FLOOR STAND UNIV. GONDOLA B&W CENTRAL PM STANDARD CARTON TYPE FLEX 4X7 FLEX 4 X 4 X 4 SAVING CENTER EXCL SAVING CENTER SHARE SAVING CENTER 3 WIDE B&W COMPETITIVE PM COMPETITIVE OTHER COMPETITIVE COMMISSARY P.D.I. TYPE 72 SINGLE DEPTH 72 DOUBLE DEPTH 96 SINGLE DEPTH 96 DOUBLE DEPTH R.J. R. OTHE R EXTENDERS HI-VOL. UNIVERSAL 156 UNIVERSAL 180 UNIVERSAL SPECIAL RJR DEALER OWNED GONDOLA 3 ft. WRAP AROUND 4 ft. WRAP AROUND CARTON CARTON CIG CENTER SIGN GROUND MOUNT POLE MOUNT PACKAGE FIXTURE SIGN CANOPY SIGN TOPPE R CLOCK WALL/WINDOW MOUNT CHECK/COUNTER NOTE: REPORT NUMBER OF MERCHANDISERS OR PDI UPON LEAVING STORE MERCHANDISERS PACKAGE PACKAGE DATE ENTERED IN SYSTEM
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.tS 61 zgtrOS . D ~ n ~ C Z S3111118V1Nf1O:):)ll
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PROGRAM STOP #1 ACCOUNTABILITIES This section presents reference and explanatory material to supplement the audio-visual module. It is organized by topic so that at each program stop you can locate the information which pertains to what you've just seen and heard on the projector. The purpose of the program is to provide specific information about the six account- abilities, the tools, the programs, and vehicles through which you accomplish them and how they relate to the job performance evaluation system. RJR feels it is important that you fully understand not only what you are held accountable for as a Sales Representative, but also how those responsibilities translate into criteria by which your performance will be judged. The topics in this section are: o Introduction o Accountabilities & Call Procedures o Performance Criteria o Product Availability Accountability o Merchandising and Display/Advertising Accountabilities o Assignment Coverage Accountability o Administration/Communication Accountability o Selling/Presentation Skills Accountability o Accountabilities/Call Classification
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INTRODUCTION What Is An Accountability? The accountability concept is merely a way of structur- ing the many job activities you handle each day. An accountability is a category of related activities which together comprise your job responsibilities in that area. RJR has identified six accountabilities, which in turn, comprise the full range of responsibilities you have as a Sales Representative. Each accountability is of equal importance. It is important that you consis- tently address each accountability because they have an enormous impact on sales volume and therefore on the position of RJR in the marketplace. If you accomplish the accountabilities, you will be successful. It is also very important that you approach these activities with a positive, winning attitude. You represent RJR to the customers who buy our products for resale to tobacco consumers. How you are perceived, both as a profes- sional and as a person, reflects directly on our com- pany. RJR expects all Sales Representatives to project a thoroughly professional, competent image. Accountability Names and Definitions 1. Product Availability Achievement and maintenance of a complete stock of RJR brands in all accounts within your assignment; product to be properly rotated and located in positions which maximize sales potential. 2. Merchandising Display of RJR brands at the point-of-sale to obtain maximum product exposure to the consumer. 3. Display/Advertising Placement and maintenance of a sufficient amount of RJR temporary displays and point-of-sale adver- tising pieces to ensure that our products and selling message are visible to the consumer. 4. Assignment Coverage Sales territory management; making calls on all of the accounts within your assignment as dictated by their classification and frequency. 5. Administration/Communication Proper organization and handling of the various forms, reports, and correspondence used by a Sales Representative. 6. Sellin5/Presentation Skills Effective use of the Six Steps of Systematic Selling, PSS, and RJR tools and aids to accom- plish successful sales presentations. A-2 I
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Types of Accounts The following three types of accounts are the ones common to most sales assignments: 1. Retail Account -- Outlets such as drug stores, liquor stores, small grocery stores, gas stations, etc. Retailers generally fall into one of two categories -- independently-owned or chain-owned. An independent is an individual who owns and operates a retail store•to serve the public for profit. A chain is two or more stores owned by an individual or group of individuals operating under the same name. Example: Kroger, Revco, and 7-11. 2. Direct Account -- Any account which purchases products directly from RJR. Examples are: direct chains, direct vendors, direct wholesale, co-ops, military installations, and institutions. 3. Vending Account -- There are two kinds of vending accounts: the independent vendor who owns the vending machines in his store; and the vending company which owns and operates machines in many outlets. STOP Go to Workbook Exercise #1
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PROGRAM STOP #2 ACCOUNTABILITIES & CALL PROCEDURES The six accountabilities have a clear relationship to the Six Steps of Systematic Selling and retail Call Procedures. During your calls, you will routinely follow the Six Steps: 1. Get to the Product 2. Rotate & Merchandise Product 3. Determine Distribution & Inventory Needs 4. Organize & Sell 5. Display & Advertise 6. Complete Appropriate Reports and Forms To assist you in accomplishing the Six Steps, RJR pro- vides PROGRAMS, such as: o Promotions o Supplier Service o Car Stock o Effective Billing Procedures o IMS o Contract Plans o An Inventory Management System o Merchandising o Advertising o Draft o Hand-Held Computer o Cigarette Merchandising Manual o PDI Manual o Work Plans o PSS Once your plan for an account is formulated, RJR offers a large variety of FIXTURES AND DISPLAYS which are the physical tools, or VEHICLES, which you put in place and maintain to put your plan into action. The ACCOUNTABILITIES then become the RESULT of properly: o Performing the Six Steps of Systematic Selling o Carrying out Call Procedures o Using programs to design your sales plan o Placing and maintaining fixtures & displays to imple- ment the plan I A-4
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PERFORMANCE CRITERIA As a Sales Representative, you will be evaluated on your job performance. In order to do that effectively, RJR has established criteria for each of your account- abilities. After you are evaluated, you will have the opportunity to sit down with your Division Management to discuss your performance overall and with respect to the specific criteria. This will be invaluable to you in your development since it allows you and Division Management to discuss areas needing improvement and ways to accomplish that improvement. Although attitude is not a specific criteria within the evaluation system, it is reflected in the goals accom- plished within the accountabilities. When you as a Sales Representative are able to maintain a high level of enthusiasm toward your job performance, can accept direction, welcome new challenges, and demonstrate through your drive and interest that personal progress is important, volume in your assignment will be impacted in a positive manner. The criteria are as follows: 1. Product Availability o Distribution: Achieves established distribu- tion objectives on Distribu- tion Segments I, II, and III cigarette items. o Inventory Levels: Assignment reflects adequate inventory levels to maximize sales and minimize low and out- of-stock conditions. o Product Freshness: Performs rotation to ensure product freshness.
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o Sales Transactions: Most effective types of sales transactions are used to maxi- mize volume potential (e.g., order book, prebook, and cash.) 2. Merchandising o Package and carton fixturing is appropriate to capitalize on account's potential. o Package and carton display plan potential is maximized to dominate accounts. o All package and carton fixtures are properly tagged and loaded by brand family/proportionate to sales; maintained in compliance with standards/ contracts; maintained with adequate signage; and properly located to maximize exposure. 3. Display/Advertising Ensures placement of displays and advertising to reflect established standards and maximize potential on the following: o PDI o Temporary POS o Temporary Displays o Proper Location/Placement 4. Territory Coverage Ensures that objectives and division standards are achieved on the following: o Coverage o Frequency o Call Count 5. Attitude o Maintains a high level of enthusiasm towards job accountabilities and objectives. o Is energetic in performance of job o Shows by drive and interest that personal progress is important. Having the proper attitude is essential in the performance of particular job functions. However, performance ratings on attitude do not roll up in calculating your overall performance rating. I A-6
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5. Administration/Communication o Demonstrates effective planning and routing to assure work plan implementation. o Oral/written communications are timely, concise, and clearly understood. o Reporting is prompt and accurate (e.g., Call Reporting, Payments, Tru-Check, contracts, expenses, etc.). o Financial resources are properly utilized and accounting maintained (Field Sales Operating Fund, etc. ) o Files, sales materials, and car stock are effi- ciently organized and maintained. 6. Selling/Presentation Skills o Demonstrates good usage of Professional Selling Skills. o Understands and utilizes systematic selling procedures. o Effectively utilizes selling tools and aids. Annual Performance Review Once each calendar year, you will receive a comprehensive evaluation of your work for the preceding months. It is a written review in which Division Management uses the above performance criteria to evaluate your effective- ness. The review is confidential and may take several hours to complete. At the end of the review session, you and the Manager will jointly formulate a DEVELOPlfENT PLAN. The plan outlines specific developmental goals for each of the accountabilities. Six months later, and at periodic intervals, your progress toward these goals is reviewed. The plan is on the last page of the Perfor- mance Review folder, and a copy is given to you as a personal blueprint for improvement and growth. In addition to the annual review, there will be other periodic checks performed by your Division Management. STOP Go to Workbook Exercise #2 v, 0 ~ u~+ N A-7
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PROGRAM STOP #3 PRODUCT AVAILABILITY ACCOUNTABILITY The retail outlets are where our brands are purchased by the consumer. We must constantly be aware of consumer trends in order to have product availability to meet demand. Product availability is having maximum brand representation of RJR products to increase sales in the retail outlet. Lack of product availability may occur for many reasons -- the order clerk might overlook a brand during ordering, there may be no systematic ordering procedure, or the jobber for the retail outlet may be out-of-stock. You must be able to determine the cause of the problem and develop the solution. The following tools or programs will aid you in achieving product availability. o Retail Promotions o Car Stock o Sales Transactions o Inventory Management System o Carton and Package Displays o Proper Merchandising We will look at these tools individually and discuss their importance. Retail Promotions The Sales Force offers trade promotions that encourage retailers to buy merchandise for promotional displays. A 30-pack display of a new brand is a good example. Temporary displays can be either package or carton promotions which offer payment to the retailer for allowing the display to be placed in the store during the specified promotion period. By displaying the extra product, we gain additional exposure which is supported by national advertising and thereby increases consumer demand. Once demand is created for the product, the retailer will continue to stock the product to satisfy customer demand, thereby preventing a possible out- of-stock situation. I A-8
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Many times, in addition to the trade promotion, we offer consumer coupons, bonus packs, and mail-in premiums to encourage consumer trial. These are called brand incen- tives. These consumer promotions reinforce the trade promotion by encouraging customers to buy the product. The following promotions are examples of three types of incentives for the customer to purchase RJR brands over the competition: 1. Cash Refund -- Refund offer that provides a return of part or all of the purchase price via return mail. 2. Bonus Pack -- Bonus pack offers the consumer extra product at no increase in price; free packs of cigarettes are usually attached to the cartcn in the display. 3. Couponing -- Direct couponing is a certificate good for a stated price reduction on product at the point-of-sale. This certificate is distributed via publications such as Parade Magazine. Such promotions are very beneficial to the retailer, and it gives you "a reason why" to increase RJR inventory at the retail level. The in-store display makes products available to the consumer and offers the retailer promo- tional monies. Again a 30-pack display of a new brand is a good example. The retailer receives payment and increased sales, and you have sold additional product and have achieved product availability of a new brand. Car Stock You maintain car stock for the purpose of providing merchandise to sell when working accounts. This car stock can be used to eliminate out-of-stocks and to gain introductions.
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Sales Transactions Of the five types of sales transactions -- CASH ORDER, PREBOOK, ORDER BOOK, BILL THROUGH, and EXCHANGE -- the exchange is the least desirable, since you are merely exchanging an amount of one brand for an equal amount of another. You would follow up an exchange with a prebook or other transaction to ensure product availa- bility in larger quantity. It is a good idea to discuss the sales transaction methods with your Division Management because of variations in area and assignments. Inventory Management System Inventory management is a service you can provide an account where no systematic ordering procedures exist. This inventory service involves a weekly count of mer- chandise by carton and brand to determine the amount of merchandise sold. Once the weekly sales are determined, a figure can be established to ensure proper ordering procedures. You should periodically review the order book with the clerk to ensure that proper ordering procedures are continued. This system ensures that the retailer will have adequate inventory to meet consumer demand rather than not using any systematic ordering system and perhaps overlooking major selling brands. An important plus for the order clerk is that the system will save time and make his/her job easier. Carton and Package Displays Our permanent and temporary package and carton displays create consumer awareness and stimulate multiple sales of RJR products, but in addition to these benefits, the displays afford the opportunity to increase and main- tain inventory and product availability. ! A-10
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During our sell-in of these displays, you should sell the merchandise to fill the displays as additional stock, meaning in addition to the normal store order for the week. For example, the 30 packs of a new brand for a 30-pack display would be an additional sale for that week. The majority of this additional inventory will be absorbed by the increase in consumer demand because of: 1. Seasonal Sales -- Increased in-store traffic because of Memorial Day, 4th of July, Labor Day, and Christmas. 2. Tie-in promotion with display -- Cash refund, bonus packs, and couponing, etc. Proper Merchandising Proper merchandising of these displays is a key area where you as a Sales Representative have an immediate effect on inventory and product availability. Your selection of package and carton merchandisers for retail•accounts is directly related to inventory and product availability. You must consider the volume and number of brands a retailer stocks before a proper selec- tion of merchandisers can be made. Here, "proportionate loading" is important. This means giving sufficient room on the fixture, whether package or carton merchan- diser, to allow for the sales of the brand. For example, twice as much room must be given to WINSTON if the weekly sales are twice that for CAMEL. Obviously, the total size of the merchandiser must be able to accommodate the weekly cigarette volume. Another critical area is the physical location of the merchan- diser in the store which may determine the size of package and carton merchandisers. Our temporary and permanent displays must be positioned at the point-of-sale in such a manner that the product is in full view and available to the consumer in ample quantity. STOP Go to Workbook Exercise #3
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PROGRAM STOP #4 MERCHANDISING ACCO[TNTABILITY Merchandising of RJR products simply means displaying of products at the point-of-sale to obtain maximum product exposure to the consumer. The various programs available to assist you in achieving this objective are: o Individualized Merchandising Service o Package and Carton Fixtures o Fixture Contracts RJR adopted an innovative approach to cigarette merchan- dising in 1974 with the implementation of Individualized Merchandising Service (IMS). You will learn about IMS in detail later in your training. This program provides a service to retailers in analyzing their existing package and carton merchandising on an individual store level to increase sales and profit through merchandising recommendations. The recommendations will deal with these three merchandising concepts at RJR: Self-Service Controlled Self-Service Non-Self-Service The key decision is whether to self-service packs or cartons, or both, or whether to elect non-self-service, requiring customers to ask for them. Tests prove conclusively that, for the vast majority of stores, self-service of both pack and carton produces greater sales. Package and Carton Fixtures R. J. Reynolds supplies the vast majority of all cigar- ette merchandisers to the retail trade. RJR has designed the package and carton merchandisers in various styles, sizes, and capacities to meet any specific merchandising need. I A-12
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The Company's rationale for supplying these merchan- disers (some of which are provided free-of-charge to the retailer, some of which require a contract) is to ensure that our products maintain maximum product exposure to the consumer. The retailer must meet certain requirements and qualifications before these fixtures are installed. Your Merchandising Accountability will be covered in greater detail later in your training.
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DISPLAY/ADVERTISING ACCOUNTABILITY Your third objective in a retail account is placement of temporary displays and advertising at the point-of-sale. An RJR Sales Representative is accountable for placing a sufficient quantity of temporary displays and quality advertising in order to convey RJR products and the selling message to the consumer. The concepts you will use are: 0 Temporary Displays 0 POS Temporary Permanent o Placement/Location Temporary Displays Temporary package and carton displays are worked at regular intervals during the year as directed by the RJR Work Plan. These temporary displays normally are displayed for a two-week period at the point-of-sale, and for this service, each display has a promotional allowance which is paid to the retailer. The package displays or counter displays ensure exposure and product availability in those accounts where pack sales are extremely high. The carton displays afford the opportunity to build inventory and gain additional exposure of RJR products in those accounts which experi- ence high carton sales. Types of Advertising Point-of-sale (POS) advertising at the retail level is of enormous importance. Through this advertising medium, many customers gain an understanding of our brands and promotions. You will be exposed to two kinds of POS, permanent and temporary, which you are responsible for placing in your retail accounts.
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POS (Permanent) POS (Temporary) Customer Courtesy Message Shelf Strips Business Hour Decal Pasters Push and Pull Decal Riser Cards In and Out Decal Other Open and Closed Sign Cigarette Center Sign Metal Signs Clocks Ground Mount/Pole Mount Signs Temporary advertising, such as mentioned above, will normally tie in with a particular brand promotion being worked. This advertising should be positioned in a spot to gain the greatest visibility and exposure of our brands. After you sell the retailer on the benefits of placing our temporary advertising, you should check periodically to see if the ad pieces have a worn appearance. If the POS advertising is faded or torn, you should replace it with fresh material. Permanent advertising such as decals, cigarette center signs, clocks, etc. offer a service to the retailer. This type advertising is generally more expensive than our temporary advertising,•and you should strive for quality placement in high volume calls such as super- markets and convenience stores. Placement of permanent advertising is very beneficial because it assists the selling process by creating brand awareness. Competition is keen in this area, and only the aggressive and alert Sales Representative will place and maintain our point-of-sale advertising in a way that will dominate the competition in retail accounts. DISPLAY/ADVERTISING, MERCHANDISING, and PRODUCT AVAIL- ABILITY are closely related, both as concepts and in practice. Take the 30-pack display as an example. By placing the display of a new brand, you make the product available. By obtaining placement on the counter next to the cash register, you merchandise the product in a way that ensures accessibility and visibility. And by supporting the introduction with advertising, such as pasters and riser cards, you attract the customer's attention through temporary POS. STOP Go to Workbook Exercise #4 A-15
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PROGRAM STOP #5 ASSIGNMENT COVERAGE ACCOUNTABILITY Coverage is the making of a sales call on all of the accounts selling cigarettes and tobacco products within your assignment. The areas you will implement to achieve accountability are: o Coverage o Frequency o Call Count The tools you will use to implement these concepts are: o Call Classification System o Frequency Guidelines o Planning Schedule o Work Plan Coverage, for retail accounts, is more well-defined than it is for direct accounts. Calls are divided into different classifications and assigned a frequency number, which is the number of times a call is to be made during a month, quarter, or year. i A-16
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Call Classification System Each call within an assignment falls into one of the following classifications: Call Total Weekly Classification Industry Carton Volume Key (Carton Outlet) A 125+ (Package Outlet) 125+ B 76-124 C4 50-75 C13 30-49 D 1-29 The volumes are the total number of cartons sold per week -- by pack or carton -- including RJR and competitive brands. Frequency Guidelines Once a call is placed into one of the call classifications, a frequency number is assigned.•
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Frequency K4 A4 B4 C4 C13 D52 CALL CLASSIFICATION FREQUENCY Carton Type Volume Outlet 125+ Carton 125+ Package 76-124 Package/Carton 50-75 Package/Carton 30-49 Package 0-29 Package Frequency Monthly Monthly Monthly Monthly Quarterly Annually Call Count Standards In order to achieve the proper coverage of all the various retail accounts, it becomes necessary to make a certain number of calls per day, on an average. RJR has found that certain minimum standards can be established and achieved. These call count standards are minimum and serve to guide the Sales Representative in achieving the important coverage objective. The standards vary, depending on the types of assignments. Call count standards will be communicated to you by your Division Management. 1 A-1 8
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Work Plan The Work Plan is a schedule of events or list of objec- tives. These objectives are based on the goals of the Company or Sales Area. The Work Plan is formulated to direct your activities during the period and is designed to fit in with your other regular work activities. It has a substantial effect on coverage. The Work Plans deal mainly with retail call objectives, however, vending and direct account activities can and will be included when applicable. Your Division Management will provide current Work Plans as they are needed. As you can see, the areas of coverage and planning your activities overlap all types of calls from large direct accounts to small retail outlets. The system of orga- nizing calls into classifications with frequency numbers and working from the Planning Schedule and Work Plan are all designed to assist you. The goal is to increase sales for RJR by making the necessary coverage to accom- plish the objectives of the work Plan. STOP Go to Workbook Exercise #5
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PROGRAM STOP #6 ADMINISTRATION/COMMUNICATION ACCOUNTABILITY The proper organization and handling of the various forms, reports and correspondence used by a Sales Representative is important. You will be required to fill out Call Reports and keep accurate records of contracts and correspondence. The tools you will be working with in the Administration/ Communication accountability are: o Planning Schedule o Compumark o Draft o Contracts o Expense and Payroll Report o Field Sales Operating Fund o Hand-Held Computer * Call Reporting o Compumark RJR uses a reporting system (computerized) to track all calls made and supply information regarding distribution of cigarette brands, sales transactions, type of merchan- dising methods used, and displays placed. This'infor- mation is recorded on Form 5000 to be filled out on each call. These sheets are retained by you and mailed together at the end of the last call on Friday to Winston-Salem. This information is then entered into Computers and returned to various levels for review -- copies going to the Sales Representative, Division Manager, Regional Manager, and Director of Sales. See your Compumark Manual and Trainer for detailed instructions. o Hand-Held Computer * * If your Division has converted to the S I S Reporting System utilizing the Hand-Held Computer, you and your Trainer should take the time to review the Hand-Held Manual for detailed instructions.
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Draft RJR initiated this program to speed up payments to dealers for contract agreements or periodic promotions. Essentially, Draft is a system whereby the Sales Representatives and Managers can write a check when money is due the retailer. An example of such a situation would be when a dealer maintains a carton fixture, with our brand on the fixture as agreed upon. You would write him a check at the end of each quarter for the amount due. Similarly, if the dealer accepted placement of a 180-carton force out, you would write him a draft for the display allowance. The Draft system will be covered in more detail later in your training. Planning Schedule The Planning Schedule is another tool used by RJR Sales D".,.-~s t4.. l ' 1 1 .i t......y a' l 1 1 rct+LC~eI'i~.atiL~eS L.v ~vgiisi y ~iiiu SyaL.~u~aL.i:atiy ptaii activities. The form (one copy kept by you and one mailed to your Division Management) allows you to estab- lish objectives for each call (retail, direct, and vending) so that proper coverage and work activities are accomplished. Contracts This function arises from the fact that as dealers agree to participate in one of our self-service or nonself- service carton programs or one of our permanent package display programs, a contract is required. The contract must be signed by the dealer indicating which plan applies, dated, and maintained in a permanent file in the Division Office. If any changes occur, such as ownership of the store or volume of the account, that would affect the plan, a new contract is required. Normally, two copies are sufficient, one for the retailer and one for the division files. The contracts are covered in detail in the Merchandising modules. Weekly Expense and Payroll Report Each week, you will incur certain expenses (gasoline, parking, display payments, etc.) which are reimbursed to you on your next weekly payroll check. In order to submit these expenses, you must fill out this form (one copy each to Home Office, Regional Office, Division Office, and yourself) and mail it in at the end of the week. This report and your Field Operating Fund must balance at all times.
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Reporting Competitive Activities -- Anti-Smoking Activities This is another very important area of your responsi- bility. This reporting can be accomplished in one of two ways. If you receive information about a major change in competitive activities, a new brand or promotion change, you should, of course, notify your Division Management about the particulars of the situation. Similarly, any new action concerning anti-smoking activi- ties in your area should be reported immediately to your Division Management. You can also report competitive activity or anti-smoking activities in the Comments section of your Weekly Expense and Payroll Report. Division Office Correspondence Periodically, you will be requested to obtain certain information or perform certain tasks by Division Management. WHEN THESE REQUESTS ARE MADE, IT IS VITAL THAT YOU FOLLOW THROUGH IN A TIMELY MANNER AND PROVIDE THE OFFICE WITH THE INFORMATION REQUESTED. Summary This section has dealt with reports, records and forms. They must be concise, clearly understood, written or oral communications. Only with organized effort can you expect to succeed in knowing what needs to be done on-the-job, doing it, and recording your accomplishments. The tools and programs just discussed help you get the job done effectively and thoroughly. STOP Go to Workbook Exercise #6 ' A-??
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PROGRAM STOP #7 SELLING/PRESENTATION SKILLS ACCOUNTABILITY You need to know what to sell, who to sell, and how to sell. The programs and tools you will use to achieve this accountability are: o PSS o Selling Tools and Aids o Systematic Selling Steps PSS (Professional Selling Skills) is a program that teaches need-satisfaction selling skills. You will receive this training as part of STEP. The program is intended to provide you with skills to use in your day-to-day selling to logically control the selling interview and obtain a commitment from your accounts. Used in conjunction with the selling tools and aids discussed in this program and the Six Steps of Systematic Selling, PSS provides the professional approach you will need for success as an RJR Sales Representative. STOP Go to Workbook Exercise #7
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ACCOUNTABILITIES/CALL CLASSIFICATION Your accountabilities will vary from call to call depending on its volume, display and advertising, and merchandising opportunities. The following pages will give you a quick reference by call classification (i.e. K. A. B. C4, C, D) of what you are accountable for when making the call. Your Division Management will provide you with additional copies for placement in your call report folder for easy reference. I ~ ~ A-24 co
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. KEY CALLS: 125+ cartons per week primarily by the carton PRODUCT AVAILABILITY MERCHANDISING DISPLAY/ ADVERTISING COVERAGE ADMIN/ SELLING PRES. COMMUNICATION SKILLS ° Check/Rotate ° Merchan disin ° T em orar ° Minimum of ° Maintain • Utilize PSS Stoc o Pro uct D isp ays Mont y ~ Proper S- is- Coverage Reporting Cartons Cartons - s ell/maintain - capitalize - full rotation - follow BFM a ccording to - identify/ ° Maintain on volume (3 mo. old) guideli nes W ork Plan recommend Payments opportuni- - check backroom - replenish - proport loading ionate ° P ermanent frequency changes to ties fixture as follow guide- D isplays management needed * STP Packages lines o brands n .2 l oad/maintain as needed - fill fixtures on active Packages a W ccording to ork Plan follow 25% frequency checkstands - remove unsala- bles - same as PFD/Savin above gs Cnt. m c aintain ompliance as agreed by manage- ment ° Distribution same as above e liminate - gain maintain ° Merchan dising d ual MCD- Segment I, II, Equipme nt c arton and III brands ° utilize RJR c e ontracts xcept * STP - Check and rotate items on S/S relative to volume Inventory fixturi ng t o meet Levels c ompetition - Product should seek its correct OOS/ LS, emphasize maximiz space e RJR ° P OS/PDI own level long-term solution assure proper inventory management increase inven-! maximiz efficie - ensure complia e cost ncies nce d w p p ominate call ith appro- riate ieces tory on Work Plan brands. - e s nsure ignage on ° Consumer a f ll pkg/ctn ixtures Activity - Accomplish with . regard to time 6t 6 1 rB~os
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1980 5048.'. Carton/Package Fixturing and PDI Placement Guidelines Key Calls IVolumr 400 - 700) Carton Fixtures - Exasting_Stores •UCM with 3/6 wide extenders and/or wrap Flex S ste.s - New/Remodeled Stores •Ix7 Tobacco Center--Stress avai ability in 700• volume ealls, ~exce ~tion by mar et on y on volume be7ov 700 cartons due to chain/competitive demands. •Ix4x1 Wrap--Same statement as above. •4x4 Configuration - Select wel place - last resort by Regiona Sa es Area arrpoval. (rx-isting or new/remodeled stores) Packa e Fixtures •A11 Package Fixtures with Signage •Packa e s+erchandisin techni ues• Prtorize the type o sierchan isers and systems for retailers which provide best benefits for PJR. -Reltline...(Univ. Pkq. Merchandiser) -Beltline with augmented system. -Spinner (MCC) Multiple -Gondola End -Alternate Reltline -sackbar •(For selection see Exhibit R) •Vtilisw 30-Pack Checklane Program at active checkstands based on allocations. Carton/Package Fixturing and PDI Placement Guidelines Ke C~alls (Volume 1)S - 1991 Carton Fixtures Package Fixtures •Standard Carton Merchandisers •A11 Package Fixtures with Signaqe •UCM with 3/6 wide extenders - wrap as judged appropriate considering volume, distribution, SOM. •Package sierchandisin techni ues• riort:e t e types o s~erc a2J. sers and •Decor )tits - ava a e to meet competition - save current UCM's/extenders - gain space - new or remodeled stores - existing systems for retailers which provide best benefits for RJR. -eeltline...(Univ. Pkq. Merchandiser) -seltline with augmented systems -Gondola End -Spinner /MCCI -Alternate seltline -Backbar PDI Items •(FOr selection see Exhibit R) •A11 eliqible items. Decor Kits •Ava.lable to meet competition. •Save current UCM's/extenders •Gain space. •Existing-nev-resrodeled stores, as End Cap Merchandising Systems: •Mrap •End Cap Fixt.Ext. •Multi-End Caps appropriate. •(For selection see Exhibit A) POI ITEMS POI ITEMS •A11 eligible itens. •A11 eligible items.
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PRODUCT AVAILABILITY ° Check/Rotate Stock Cartons - full rotation (3 mo. old) -check back- rooms Packages f il l Self-ser. fixtures fill NSS visi- ble as needed remove unsala- bles - ensure ness in fresh- MCD's ° Distribution - gain maintain Segment I, II, III brands A Calls: 125+ ,.arton per week primar ily by the packa ge DISPLAY/ MERCHANDISING ADVERTISIN ADMIN/ G COVERAGE COMMUNICATION SELLING PRES. SKILLS ° Merchandisin ° Temporary ° Minimum of ° Maintain ° Utilize PSS -- of Pro uct Displays Monthly Proper Sk ills Coverage Reporting Carton - sell/maint ain - capitalize on according to - identify/ ° Maintain volume - proportionate Work Plan recommend Payments opportunities loading where applicable 0 Permanent frequency changes to - follow guide- Displays management lines on .2 brands Packages load/maint according Work Plan ain to as needed - follow 151 frequency follow BFM guidelines on self-service - maintain compliance as agreed by management pro. load Seg. I in NSS visi- ble single fix. pro. load Seg. I, II, III in NSS visible • Inventory multiple fix. Levels load MCD's correct OOS/ LS, emphasize long-term solutions assure proper follow guide- lines on .2 brands ° Merchandising ° inv. mgmt. Equipment increase inventories utilize RJR on Work Plan brands ° Consumer Activity - utilize with regard to time fixturing in visible locations maximize RJR space maximize cost efficiencies ensure compliance eliminate dual contracts except to meet competition follow 51% guidelines for carton plan POS/PDI dominate call with appropri- ate pieces - ensure signage on all package ~ fixtures 1861 zBtrOS
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50482 1982 Carton/Package Fixturing and PDI Placement Guidelines A Calls (Vo lme 125+) Carton Fixtures Shelf Plans Package Fixtures Package Payment Plans None None •Priorize Mini-Overheads unless •Avoid large 8-tray plans. competition or chains dictate a main/module unit. •Main/module overhead - 2nd priority. •Cash register position - 1st priority. •No PPCD in "primarily by by package" outlet. •Do not want "new" •Standard pkg. fixtures and/or meeting competi- slide-by systems where tion on ctn. overhead not acceptable. fixtures/shelf plans. •No Mobile Cigt. Center •Utilize wire/plastic fixtures in N/S/S situations PCD's for permanent - regardless of competitive display programs they fixture. were intended for. (Exception upon Sales (temporary 10-20-30 packs) Director's approval) PDI •A11 eligible PDI items.
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B Calls: PRODUCT AVAILABILITY MERCHANDISINC; 76-124 cartons per week DISPLAY/ ADVERTISING ADMIN/ SELLING PRES. COVERAGE COMMUNICATION SKILLS Check/Rotate ° Merchandising ° Temporary ° Monthly only ° Maintain ° Utilize PSS stock of Product Displays Proper Skills - eliminate Reporting full rotation Carton - sell/maintain over-calls - capitalize (3 mo. old) -if contracted, according to 0 Maintain on volume exists follow guide- Work Plan Payments opportuni- remove unsal- lines ties ables 0 Permanent - if not, achieve Displays Distribution proportionate load - load/maintain gain/maintain according to Segment I, II, Packages Work Plan III Brands - if self-service, follow A Call - maintain Inventory guidelines compliance Levels - if NSS, propor- 0 POS/PDI correct OOS/LS tionate load/ by most effect label Seg. I - dominate POP ive means if in focal location - ensure RJR Consumer representa- Activity ° Merchandising tion at cash Equipment register, utilize with area around regard to time Carton register, - minimize ctn windows, fixturing doors and outside - standard fixtures only - use selected items, i.e., Packages decals, - emphasis on pasters, standard racks sm. clocks, grd/pole mts. - no mdsers. in ' non-visible - ensure locations signage on all fixtures t8t~os 0 0 0
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5o4gz 198 4 Carton/Package Fixturing and PDI Placement Guidelines B Calls (Volume 76-124) Package Carton Fixtures Package Fixtures Payment Plans •Std. carton merchandisers •Mini-OPM OK for volume of 75+ •Cash register position (100+ ctn. volume only) ctn. only. lst priority. (Based on individual mkts. when primarily by ctn.) •Standard pkg. merchandisers - •Avoid 8-tray plans. slide-by systems •Only utilize wire/plastic PCD's for permanent display programs they were intended for. •Do not want "new" meeting •Avoid overheads-main/module competition on carton in independents...exceptions fixture/pay plans. may be chains. •Avoid/discourage multiple •Avoid Mobile Cigarette Centers. fixtures and security equipment. PDI Items •Selected "low cost" PDI items - in interior of calls. •Avoid "overkill"/waste. •Exceptions...consider high traffic exposure situations. 'Exterior areas - high traffic/visibility situations-selective "high cost" PDI are acceptable.
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C4 Calls• PRODUCT AVAILABILITY MERCHANDISING 50-75 cart.ons per week DISPLAY/ ADVERTISING ADMIN/ SELLING PRES. COVERAGE COMMUNICATION SKILLS Check/Rotate ° Merchandising ° Temporary ° Monthly only ° Maintain ° Utilize PSS stock of Product Displays Proper Skills - eliminate Reporting full rotation Carton - sell/maintain over-calls - capitalize (3 mo. old) - if contracted, according to ° Maintain on volume exists follow guide- Work Plan Payments opportuni- remove unsal- lines ties ables ° Permanent - if not, achieve Displays Distribution proportionate load - load/maintain gain/maintain according to Segment I Packages Work Plan - if self-service, work new follow A Call - maintain brands guidelines compliance maximize - if NSS, propor- ° POS/PDI Segment II tionate load/ potential label Seg. I - dominate POP if in focal Inventor location - ensure RJR Leve s representa- ° Merchandising tion at cash correct OOS/LS Equipment register, by most effect- area around ive means Carton register, - minimize ctn windows, Consumer fixturing doors and Activity outside - standard utilize with fixtures only - use selected regard to time items, i.e., Packages decals, - emphasis on pasters . standard racks sm. clocks, grd/pole mts. - no mdsers. in non-visible - efisure locations signage on all fixtures 6 l Z6fi ~ S 0 S 8
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50482 1986 Carton/Package Fixturing and PDI Placement Guidelines C4 Calls (Volume 50 - 75) Package Carton Fixtures Package Fixtures Payment Plans None •Standard Package Fixtures Stress utilization of "temporary" displays/payments. PDI Items (Same guidelines as in B Calls)
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PRODUCT AVAILABILITY gt~OS L86 i ~ CQ CALLS: 0 Check/Rotate Stock 0 Distribution 0 Inventory Level s Correct OOS low stock by & most effective means MERCHANDISING 30-49 cartons per week DISPLAY/ ADVERTISING ADMIN/ SELLING PRES. COVERAGE COMMUNICATION SKILLS ° Merchandising ° Temporary ° Quarterly ° Maintain ° Utilize PSS of Equipment only ro er Skills - Work Plan reporting Rotate (3 mo. - Standard wall displays - Eliminate - Capitalize old) fixtures only only over-calls ° Maintain on volume Payments opportuni- Remove old/ - Tag for RJR 0 Permanent ties damaged brands in dist. merchandise at time of - Maintain/ installation minimize MCD's - Do not solict Segment I & fixturing 0 POS/PDI Work Plan Brands only - Strive for represen- tation at POP, front- end, outside - Paper/metal decals only - Ensure signage on all fixtures - Maximize exposure in high-traffic locations, i.e., down- town, resorts .
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sa4sz 19 $8 Carton/Package Fixturing and PDI Placement Guidelines CQ Calls (Volume 30 - 49) Package Carton Fixtures Package Fixtures Payment Plans None •Standard Package Fixtures Stress utilization of "temporary" displays/payments. PDI Items (Same guidelines as in B Calls)
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D Calls: 1-29 cartons PRODUCT DISPLAY/ AVAILABILITY MERCHANDISING ADVERTISING COVERAGE ° Rotation - remove old product ° Sell Work Plan Brands/ Displays ° Paper/metal/ decals only ° Annually - eliminate over-calls ADMIN/ SELLING PRES. COMMUNICATION SKILLS ° Maintain Proper Reporting ° Utilize PSS Sk-ills - for selected volume opportuni- ties 6661 78finS
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MERCHANDISING PART ONE /
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PROGRAM STOP #1 CIGARETTE MERCHANDISING, PART I Introduction This section of the STEP Binder contains reference material to supplement and reinforce the audio-visual module. It is organized so that you can easily locate the related informa- tion at each program stop. The purpose of Cigarette Merchandising, Part I is two-fold: First to provide basic information regarding the objectives and function of merchandising as practiced at R.J. Reynolds; and, second, to discuss in detail the merchandisers, pro- grams, and strategies used in merchandising cigarette cartons in retail outlets. The topics covered in this section include: o Merchandising Overview o An Introduction to Merchandising o Merchandising Resources o Merchandising Methods o Carton Merchandising o Guidelines for Merchandiser Placement o Loading Procedures o Carton Merchandiser Contracts o Implementing Plans o Contract Compliance o Competitive Shelf Contracts o Comparative Plan-o-grams
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INTRODUCTION TO MERCHANDISING Cigarette Profitability Cigarettes provide profit to retailers in five distinct ways: 1. Profit from cigarette sales. 2. Profit from supplemental monies such as display allowances. 3. Profit from incremental sales that result from using cigarettes to build traffic for other products. 4. Profit from taking advantage of manufacturer supplied merchandising vehicles and services. 5. Profit from the sale of products advertised at the manufacturer's expense. Merchandising is the vehicle we use to help retailers take greatest advantage of these potential profits. Definition Merchandising RJR products simply means displaying products at point-of-purchase to obtain the maximum visibility, accessibility and exposure to the consumer. Function When used effectively, merchandising provides a variety of benefits. Merchandising can: o Make products available and visible to the consumer at the retail level, helping secure the preferred space, location and position. o Improve sales in a retail outlet in the short term by minimizing out-of-stocks through Inventory Management programs o Assist in gaining distribution by providing a home for existing and new brands. o Be an incentive to retailers to merchandise by providing payment plans, merchandisers, order guides, and merchandising assistance. o Provide information that reinforces cigarette merchandising in general and especially RJR products. o ~ o Provide a vehicle for point of sale advertising. N MI-2
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o Enhance our in-store presence through attractive presentation and display of product. o Provide an opportunity to create trial through prominent display at point of purchase. A main function of merchandising is to support field sales in meeting their volume objectives. The following chart illustrates how this is accomplished. FCINCTION OF MERCHANDISING PRODUCT AVAILABILITY - Inventory DISPLAY/ADVERTISING - D'+stinbution LOCATION SPACE - In Store - tn Store - SefGng Area • Se16ng Area VISIBIL.tIY ACCESSIBILITY CONSUMER
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History R.J. Reynolds pioneered the concept of cigarette merchandis- ing. In the early 1950s, we first began providing carton and package fixtures to retail outlets. Our original intent was to encourage retailers to bring cigarettes from under coun- ters and onto self-service displays. This was the start of our "easy-to-reach, easy-to-see, easy-to-buy" philosophy. The success of this program was evidenced by sales increases in those retail outlets that merchandised cartons on a self- service, permanent display basis. As annual sales volumes grew and brand proliferation con- tinued through the 50s, we met the need for more varied and larger fixtures. By providing merchandisers, we were able to improve the inventory of all our brands, achieve the preferred shelf position, and provide better in-store display of our products. A good idea is never without imitators, and by the mid-1950s our competitors began to offer merchandisers to retailers as well. This lasted for about five to eight years until our field sales force secured a competitive advantage in merchan- dising through persistence and superior knowledge. As a result, our competitors began offering retailers promo- tional monies in exchange for shelf space on our merchandisers. In lieu of paying for shelf space, we offered an Inventory Service Program. Through this program, RJR representatives handled all cigarette inventory and ordering tasks for the retailer during weekly visits. Inventory Service was eliminated in 1969. As the number of self-service retail outlets increased, the efficiency with which our sales force could provide service decreased be- cause of the time involved in performing this function. In place of Inventory Service, RJR introduced a Shelf Payment Program. In 1974, RJR introduced a permanent counter display program with payments based on volume. Permanent counter displays provided a vehicle for increasing brand awareness, gaining competitive trial, introducing new brands, and executing promotions. The program also helped us fill the merchan- dising void in high volume package outlets. Also in 1974 we introduced our Individualized Merchandising Service (IMS), profitability programs, and programs for non-self-service merchandising. MI-4
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All these early decisions and programs were designed to secure the preferred location and space for RJR brands at the retail level. This direction has helped establish RJR as the industry leader. Objectives R.J. Reynolds has five merchandising objectives which guide the development of the programs and services we offer. They are: o To insure adequate inventory levels in all retail cigarette outlets to support field sales in meeting their goals and objectives relative to volume and share of market. o To obtain/maintain prime positioning on merchandisers to maximize the visibility and exposure of our products. o To solidify RJR's role as the industry leader and innovator. o To provide RJR a competitive advantage through its merchandising programs. o To develop and build credibility with retailers to enable us to improve our in-store dominance.
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MERCHANDISING RESOURCES Merchandising can provide many benefits to the retailer and to RJR when it is used in a conscientious, well-planned man- ner. To assist you in your day-to-day merchandising activi- ties, R.J. Reynolds provides many tools and resources. IMS (Individualized Merchandising Service) IMS is a merchandising service offered to retail cigarette outlets on an individual basis. It is an umbrella that covers any and all of the programs and services we offer which help a retailer improve sales and profits on tobacco products and help RJR achieve our volume goals and accountabilities. You provide IMS when you place a counter display, demonstrate correct inventory management procedures, install a cigarette center sign, recommend and place carton or package merchan- disers, conduct an in-depth call analysis, or otherwise main- tain our in-store presence. Merchandisers To assist you in developing and implementing a successful cigarette merchandising program, RJR supplies a complete line of carton and package merchandisers. These fixtures are available in various sizes, styles and capacities to meet a particular retail outlet's specific merchandising needs. Cigarette Merchandising Manual This loose-leaf binder contains full color pictures of each carton and package merchandiser available. Each page also shows the dimensions and capacity of the fixture. The Cigarette Merchandising Manual is very helpful in selecting the appropriate merchandiser configuration for an outlet based on space and volume requirements. The manual also contains information explaining the com- putation of a profitability analysis and other valuable information used in providing Individualized Merchandising Services. These areas will be covered in more detail later on in your training. • MI-6
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Merchandisers and Component Parts Catalog Complementing the Cigarette Merchandising Manual, the Merchandisers and Component Parts Catalog contains all the information needed to select and order our fixtures or component parts. Some merchandisers are stocked at the division office for emergency use. When a new or replacement merchandiser is to be installed, the unit should be shipped directly to the retail outlet if possible. Consult your Division Management for the specific guidelines concerning order- ing merchandisers. At this time, review the Carton Merchandiser sections of both the Cigarette Merchandising Manual and the Merchan- disers and Component Parts Catalog with your trainer. The material included will help you gain a more in-depth knowledge of carton merchandisers and their component parts. Merchandisers and Component Parts Assembly Instructions Manual The Merchandisers and Component Parts Assembly Instructions Manual was developed due to the flexibility of the new Modular Carton Merchandising System. The manual contains the assembly instructions in a standardized format for the new Modular System and the Universal Carton Merchandiser Decor Conversion Kit since the assembly instructions are not packed with these components. Advantages of Manual o Allows a phasing-in process for different configurations o Provides a consistent flow throughout all assembly instructions o Minimizes the number of individual assembly instructions by compiling them into sections o Provides employee with assembly information for familiarization prior to installation STOP Go to Workbook Exercise #1
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PROGRAM STOP #2 MERCFiANDISING METHODS The basic methods for merchandising are self-service and non-self-service. A third method, controlled self-service, is an extension of the self-service method. Each method has distinct advantages and disadvantages. Self-Service When developing merchandising recommendations, the first method to consider is self-service. This is when the customer purchases cigarettes directly from a merchandiser and pays for them at the checkout. The advantages of self-service are: o Maximum sales/profits o Maximum promotional monies o Maximum visibility/exposure o Customer convenience o Affords space for adequate product inventory and brand selection o Easy inventory management o Uses cigarettes as a traffic builder o Reduced labor cost, no attendant time required The only disadvantage to self-service is that product may be more vulnerable to pilferage. Pilferage concerns are often exaggerated, and in most instances the advantages and total profitability of self-service far outweigh this one disadvan- tage. There are security features permitting only single carton access available for many merchandisers. Check with Division Management for the specific division guidelines and contract information for security. Division Management must approve all security installations. This may be an acceptable alternative when a retailer would not otherwise use the self-service method. Controlled Self-Service An extension of self-service, controlled self-service is the self-servicing of cigarettes in a clerk attended area. MI-8
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Some of the advantages of controlled self-service are: o Improved security o Maximum promotional monies o Greater customer convenience than non-self-service o Affords space for adequate product inventory and brand selection o Easy inventory management Controlled self-service also has several disadvantages as well. These are: o Limited visibility/exposure o Requires locating merchandiser near an attendant o Out-of-the-way location may cause reduced sales due to reduced traffic flow o Limited use of cigarettes as traffic builder for other items o Additional labor cost versus self-service Non-Self-Service This is the least effective of the three merchandising methods, but it is still more desirable than no visibility of our products at all. This method requires that an attendant issue cigarettes or that the customer pays before receiving cigarettes. Non-self-service offers the advantage of maximum security. It has a greater number of disadvantages. These are: o Limited promotional monies o Limited visibility/exposure o Reduced potential sales/profits o Customer inconvenience o Limited use of cigarettes as traffic builder o Maximum clerk time/labor MI-9 ~
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MERCHANDISER PLACEMENT GUIDELINES R.J. Reynolds supplies the vast majority of all cigarette merchandisers to the retail trade. These fixtures are designed in various styles, sizes, and capacities to meet any merchandising need. Our rationale for providing merchandisers (which are supplied free of charge to the retailer) is to ensure that our brands have maximum product exposure to the consumer. Therefore, merchandiser placement is made in accordance with several guidelines. First, we want to ensure that a merchandiser placement is an effective allocation of our resources. This means that the placement should be cost efficient (i.e., the benefit derived outweighs the cost incurred). Before you recommend any fix- ture placement to Division Management, you should determine that the results will reflect sound business judgment. As a general rule, we continue using merchandisers that are currently in retail outlets for as long as possible. There should be a good reason before we would consider replacing or adding to a merchandiser; that is an opportunity to in- crease the product availability, display, or advertising for RJR brands. Some examples of this are: o A retail outlet's volume has increased significantly. o Space for RJR brands is inadequate (e.g., space for one full week's inventory of each RJR brand is unavailable). o A change from non-self-service to self-service merchandising. You also may recommend placements for retail outlets that do not currently have a merchandiser in place. This could be prompted by the retailer's request or by your own judgment that such a placement would be profitable for RJR. Another guideline regards the placement of security. As mentioned earlier, security features that permit only single carton access are available, but usually are considered only where self-service would not otherwise be used. Security placement is covered by division guidelines.
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In addition, before a merchandiser is installed, we must have the retailer's assurance that he will comply with our contract requirements. Placement guidelines must be taken into consideration when you prepare a merchandising plan recommendation. Then your recommendations should be reviewed with Division Management prior to presentation for final approval. STOP Go to Workbook Exercise #2 MI-11
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PROGRAM STOP 03 LOADING PROCEDCP.ES Once a merchandiser is in place, your next step is loading it for maximum visibility and exposure of RJR brands. Our contracts stipulate RJR space and shelf position on our mer- chandisers. The following material outlines the strategies we use to position and display our brands. Brand Family Merchandising Market research provides information regarding consumer habits when changing brands. It has shown that 26 percent of all smokers switch brands regularly, and that 42 percent of these switch within a brand family. This information provided a key for maximizing the value of our merchandising space and capitalizing on the pattern of switching within a brand family. Brand Family Merchandising is the result. It is an essential merchandising tool to retain "switchers" within our franchise. The premise of Brand Family Merchandising is that all cigarette categories within a brand family are loaded together where possible. This method provides a uniform and consistent merchandising approach for both package and carton merchandisers. To load a merchandiser using the Brand Family strategy, you would group the cigarettes by brand, arranging each brand by category, starting with full flavor brands and progressing to lights and ultra lights. At times, you will encounter situations where all styles within a family will not fit on a single shelf. In these cases, it is permissible to display some styles on the next lower shelf in a contiguous manner. Brand Family Guidelines ° Segments I, II and III brands must be merchandised in R J R contracted space. ° Three brand families must be represented in a frontal position, then wrapped to side facing. ° Segment I arid II items must start in frontal rows, o then wrap to sides ~ N ° Segment III or new brands must always occupy a frontal position on 50% of the second from the top 0 shelf (left side or right side) N MI-12
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° As more Segment III or new brands are introduced, and space for-new brands becomes limited, the following will apply: If the new brand or brands have been on the market for 12 months, they should be evaluated and placed in the appropriate segment. If several new brands occupy the space and have been on the market for less than 12 months, the oldest new brand must be evaluated and placed in the appropriate segment. Regional guidelines, based on Region SOM, will determine positioning of brand families on all carton merchandisers. Since these are subject to change, you should refer to current Division Guidelines when implementing brand family merchandising. Proportionate Loading Proportionate loading is the proper allocation of space for each RJR brand based on the brand's sales. This mer- chandising strategy provides proportionately more space on a merchandiser to our faster selling brands. The following example illustrates how proportionate loading is applied: Supermarket A currently has four rows allocated for WINSTON KING and one row for WINSTON LIGHTS. Total ca- pacity on this double depth carton merchandiser is 80 car- tons for WINSTON KING and 20 cartons for WINSTON LIGHTS. Supermaket A currently sells 40 cartons of WINSTON KING and 25 cartons of WINSTON LIGHTS per week. Since WINSTON LIGHTS sell at the rate of 25 cartons per week, and the maximum space is only 20 cartons, there is not enough room to handle sales and back-up stock, so the potential for an out-of-stock condition exists. WINSTON KING on the other hand has more than enough capacity to cover sales plus back- up stock (40 cartons per week sales, 80 cartons capacity). To proportionately load both brands, WINSTON K_`NG can be re- duced to three rows and WINSTON LIGHTS increased to two rows: BEFORE AFTER Sales Rows Capacity Sales Rows Capacity WINSTON KING 40 4 80 40 3 60 WINSTON LIGHTS 25 1 20 25 2 40 Consumer tastes and preferences change constantly as reflected b,/ a store's weekly sales figures. Therefore it is very impor- tant to review our allocated space periodically and make changes as needed. Both store sales fic?ures and current division guide- lines provide the information you need. MI-13
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Inventory Base Proportionate loading ensures that the RJR space (rows/ capacity) on a merchandiser is allocated according to sales. An inventory base, or "build-to" figure ensures sufficient stock levels relative to sales. In the example we used to illustrate proportionate loading, Supermarket A was able to fit an entire week's inventory on the merchandiser. However, in high volume stores, even with large merchandisers and extenders, this may not be possible. Therefore we determine a build-to figure. The build-to figure is a guideline a store uses when ordering to insure sufficient back-up inventory to meet sales demands for each brand the store carries. R.J. Reynolds developed an Inventory Base chart (see next page) which makes it easy to determine proper build-to figures. It takes into consideration the store's average weekly carton sales, lag time (the time between an order being placed and delivered), and provides for one-half week's cushion.
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Inventory Base Proportionate loading ensures that the RJR space (rows/ capacity) on a merchandiser is allocated according to sales. An inventory base, or "build-to" figure ensures sufficient stock levels relative to sales. In the example we used to illustrate proportionate loading, Supermarket A was able to fit an entire week's inventory on the merchandiser. However, in high volume stores, even with large merchandisers and extenders, this may not be possible. Therefore we determine a build-to figure. The build-to figure is a guideline a store uses when ordering to insure sufficient back-up inventory to meet sales demands for each brand the store carries. R.J. Reynolds developed an Inventory Base chart (see next page) which makes it easy to determine proper build-to figures. It takes into consideration the store's average weekly carton sales, lag time (the time between an order being placed and delivered), and provides for one-half week's cushion.
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~1) (2) INVENTORY BASE* AVERAGE Number of Sai.s Days B.tw.an Ord.r Day and Delivery Day WEEKLY CARTON SALES 0 1 2 3 4 5 6 7 1 2 2 2 2 3 3 3 3 2 3 4 4 4 5 5 5 5 3 5 5 6 6 7 7 8 8 4 6 7 8 8 9 9 10 10 5 8 9 9 10 11 11 12 13 6 9 10 11 12 13 14 14 15 7 11 12 13 14 15 16 17 18 8 12 13 14 15 17 18 19 20 9 14 15 16 17 19 20 21 23 10 15 16 18 19 22 24 25 20 30 33 36 39 41 44 47 50 30 45 49 53 58 62 66 71 75 40 60 66 71 77 83 88 94 100 50 75 82 89 97 104 11t 118 125 60 90 98 107 116 124 133 141 150 70 105 115 125 135 145 155 165 175 80 120 131 143 154 166 177 189 200 90 135 148 161 174 186 199 212 225 100 150 164 178 193 207 22, 235 250
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To use the chart to establish the inventory base for each brand, follow the steps listed below. 1. Calculate the Average Weekly Carton Sales for a brand. Locate this figure in Column (1) of the table. (Revise quarterly or as needed.) Example: 130 cartons sold in 13 weeks : 13 weeks (to a quarter) = 10 cartons per week sales. 2. Calculate the Number of Sales Days between Order Day and Delivery Day (this is lag time). Locate the figure in Column (2) of the table. (Note that this figure will be the same for all brands.) Example: Order placed Monday AM, delivery received Friday AM: Lag time 4 days (M, T, W, TH). 3. Find the intersection of numbers from columns (1) and (2). This is the inventory base for the brand. Example: 10 cartons per week sales/4 sales days between order and delivery. Intersection = 21 cartons inventory base, or build-to figure. This inventory base figure provides a guideline for placing each cigarette order. To calculate the Order Quantity for each brand, the retailer first counts his on-hand stock of a brand. He then subtracts this number from the inventory base established for the brand. The resulting figure is his order. EXAMPLE: Inventory base established = 21 cartons Brand stock on-hand = 14 cartons Order Quantity = 7 cartons This information also appears in R.J. Reynold's Cigarette Ordering Book. We supply retailers this easy to use guide to inventory management as part of our Individualized Merchandising Service. Plan-o-grams Plan-o-grams are tools developed by R.J. Reynolds to help you plan the allocation of RJR brand merchandising space on a fixture. These are forms pre-printed with a grid that represents the shelf space by row on a fixture. There are several forms available to reflect the variety of merchandisers and shelf plans we have. IQ
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To use the forms, simply write the brand names in the columns marked. We suggest you do your planning in pencil since brand positions may change as you apply the Brand Family and proportionate loading merchandising strategies. Once the plan-o-gram is completed, it is your guide for placing inventory on a merchandiser. It is extremely helpful when planning displays on new installations and when reallocating RJR space due to volume changes or new brand introductions. (Example next page) STOP Go to Workbook Exercise #3
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1401nuuAL 1110 M! WINANU1S1Ni. S(RViCI RJR Extender O 3-Wide O 6alVide ;7Z ~~I rr- ~ ~J ----- RJR Merchandiser O 156-Row O 180-Row 0 Present 0 Proposed Rows: pecifications coff"M RJR ATC Capacity: B&W RJR SheN Plan: PM Date: PL Authorized By: L&M . R/RT Foam N7117 10/83 TOTAL Comm.N071175 60cZ Z8fi0S En . Cap Carton Merchandising ~, stem RJR Plan-O-Gram RJR Extender 0 3-Wde O 6 Vlride RJR Wraparound O 3 Ft. O 4 Ft. O Other
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End Cap Carton Merchandising System Brand Family Load Plan
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MI Exhibit A STANDARD MERCHANDISER w/ EXTENDERS (Top Two Shelves) t lQZ Z6tfi0S I Extender I Front 0 I Extender No. of Other Brands Top Shelf Stacking Height Plan
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MI Exhibit B 21oz z8tros Left Side UCM (Top Two Shelves) Front . Right Side I No. of Other Brands ToQ Shelf Stacking Height Plan
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i _ -- Extender . Left Side UCM w/ EXTENDERS (Top Two Shelves) Front . MI Exhibit C . Right Side Extender No. of Other Brands Top Shelf Stacking Height Plan E10Z Uf'OS
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MI Exhibit D w I Left Side Front UCM WRAPAROUND (Top Two Shelves) Right Side Wraparound No. of Other Brands Top Shelf Stacking Height Plan -ti t oz zsfiGs
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PROGRAM STOP #4 CARTON MERCHANDISER CONTRACTS The placement of every RJR carton merchandiser is covered by a shelf contract. In RJR terminology a contract is a written commitment between RJR and the retailer. We supply merchandisers and pay promotional monies in exchange for designated space in the retail store. Our contracts provide a written document linking actual space for merchandising to specified conditions of payment. A contract is a sales tool provided to assist us in accomplishing our merchandising objectives. We have two basic types of contracts: self-service and non-self-service. Within each of these categories there are several contracts with numerous merchandising plans. This wide variety provides a plan and contract to meet almost any merchandising opportunity. The format of our contracts is similar, all RJR contracts have several points in common. These are as follows: • The payment grids illustrate RJR monthly payments based on total cigarette sales volume and the amount of space allocated to RJR. • RJR contract requirements are expressed as follows: specific requirements - describes RJR space requirements, from the method used to define RJR space, to the minimum space requirement as it relates to a particular grid(s). general requirements provide additional information/clarification concerning RJR: . space calculation . height restrictions . right to plan-o-gram . signage . plan compliance • The account must sell cigarettes primarily by the carton with a minimum volume of 100 cartons per week. The following provides an overview of each RJR contract currently in use. This section also contains actual contract copies for your reference. Take some time now to read the information and study the individual contracts.
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Self-Service The SS-1 contract format provides an approach (RJR row range) that is consistent with our long-range goals (space/ rows). The SS-1 contract will cover the majority of all self-service retail stores. Contract application: o RJR merchandisers o RJR merchandiser used in conjunction with retailer shelving o Front-end merchandiser, excluding down-aisle, approved by RJR The contract utilizes three grids. Each grid addresses a merchandiser or configuration according to the size of the primary merchandiser. Grid I - o 12 carton wide primary merchandiser - single merchandiser (48-76 total rows) - multiple merchandisers (77-191 total rows) Grid II - o 16 carton wide primary merchandiser - single merchandiser (64-100 total rows) - multiple merchandiser (101-192 total rows) Grid III - o all extended merchandiser configurations (192+ total rows) Specific Requirements: May differ and therefore relate to a particular grid(s): o Defines RJR space (row ranges) o RJR sequential order of space establishes an order of buying space o Identifies RJR minimum space requirement o Establishes a relationship between shelf(s) and RJR row ranges o Addresses a complete shelf(s), partial shelf(s) are unacceptable MI-20 O r 01
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General Requirements: Apply to all grids: o Explains method used to calculate space o Addresses the RJR carton stacking height o Limits the height of all approved front-end merchandisers o Provides the ability to allocate and divide our space, based upon need o Limits the number of shelves on the merchandiser(s) and states that RJR merchandiser(s) cannot be altered o Addresses the alignment of retailer shelves when used in conjunction with an RJR merchandiser o Explains RJR signage requirements o Plan compliance will be determined by an RJR Rep
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Insert R. J. Reynolds Tobacco Company Self-Service Carton Shelf Plan SS-1 here. After Page MI-22.
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SS-2 Contract application: o Retailers who use merchandisers not supplied by RJR placed in a down-aisle location. The contract utilizes one grid. Grid IV - The contract addresses stores using merchandisers not supplied by RJR (retailer shelving) must be 8' or more in length Specific Requirements: o Defines RJR space (% of capacity) o Identifies RJR minimum and maximum space requirements General Requirements: o The shelving or merchandisers used must be 8' or more in length o Sets guidelines for a qualifying merchandiser - # shelves - height restrictions - capacity restrictions o Provides the ability to allocate - divide our space, based upon need o Addresses the positioning/location of our space o Explains RJR signage requirement o Plan compliance will be determined by an RJR Rep
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Place R. J. Reynolds Tobacco Company Self- Service Carton Shelf Plan SS-2 here. After page MI-24.
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SS-3 Contract application: o Retailers who use 7 shelf merchandisers supplied by RJR 0 7 shelf merchandisers approved by RJR The contract utilizes one grid. Grid V - o 12/16 carton wide primary merchandiser - single merchandiser - multiple merchandisers Specific Requirements: o Defines RJR space (row ranges) o RJR sequential order of space establishes an order of buying space o Identifies RJR minimum space requirement o Establishes a relationship between shelf(s) and RJR row ranges o Addresses complete shelf(s); partial shelf(s) are unacceptable General Requirements: o Explains the method used to calculate space o Addresses the RJR carton stacking height o States that RJR merchandisers cannot be altered o Limits the height of all 7 shelf approved merchandisers o Provides the ability to allocate and divide our space, based upon need o Explains RJR signage requirement o Plan compliance will be determined by an RJR Rep
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Place R. J. Reynolds Tobacco Company Self- Service Carton Shelf Plan SS-3 here. After Page MI-26.
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Non-Self-Service NSS The NSS contract deals with two very different merchandising concepts: 1. an RJR non-self-service display plan 2. an RJR exclusive display plan The contract utilizes two grids. Grid VI Contract application: • non-self-service merchandisers supplied by RJR • non-self-service retailer shelving approved by RJR RJR is the only tobacco company to develop and market merchandising plans for retail outlets that use the non-self-service method of merchandising. Specific Requirements: • Defines RJR space requirements • Describes the positioning of our brands • Describes height restrictions • Addresses RJR carton stacking height • Describes the positioning/location of the merchandiser • Explains RJR signage requirement Grid VII Contract application: • Retailer which choose to merchandise RJR brands exclusively, self-service or non-self-service
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Specific Requirements: o Identifies the type of merchandiser - RJR shelf and brackets - Retailer shelving o Defines RJR space o Addresses RJR carton stacking height o Describes the positioning/location of the shelf o Explains RJR signage requirement o States the payment will be made only on the principle display as determined by RJR General Requirements: o Provides the ability to allocate and divide our space, based upon need o Plan compliance will be determined by an RJR Rep MI-28
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Place R. J. Reynolds Tobacco Company Carton Shelf Plan NSS Here. After Page MI-28.
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To complete a contract form, simply enter the store's name and address in the spaces provided. Also fill in the other information requested; territory and account numbers, call classification and store branch number (if applicable). Then indicate the plan. Check off the proper volume category and enter the plan(s) selected for the retailer. Finally, enter the number of stores that qualify under this contract and multiply the payment amount to show the total quarterly payment due the store. The remaining lines on the contract are date and signature lines. Once a contract is signed, distribute the three copies as follows: The original copy is sent to division office, one copy is left with the retailer and the extra copy should be retained in your file for the account. This distribution is noted on each contract copy. Other Information As you can see, there are several contracts and an extensive number of merchandising plans available. Most of the information you need to select and recommend a plan is contained on the contract payment grid. RJR has combined the grid information from every contract onto recap sheets for easy reference. You will receive a set of these sheets to assist you in determining proper payments for your accounts. At this time, review with your trainer the contracts covered making sure you are familiar with the grids and the contract terminology. STOP Go to Workbook Exercise #4
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PROGRAM STOP #5 INDEPENDENT VS. CHAIN STORE MERCHANDISING In your assignment area, you will have both independent and chain store retail outlets. Your objectives when developing merchandising programs for either type account is the same ...to merchandise RJR products in the most visible, acces- sible manner to the consumer. Whether chain or independent, your recommendations can be tailored to meet the accounts specific needs. The main difference in working with these accounts is the procedure for proposing and implementing plans. With independents, once your merchandising recommendations are approved by Division Management, you work one-on-one with the retailer to sell and implement your plan. With some chain stores, you may be able to propose and implement plans at the store level. However, other chains may have one individual responsible for the merchandising practices of the entire chain at their corporate head- quarters. This merchandising manager or buyer may have to approve your recommendations. Before developing recommendations for chains, you should learn as much as possible about their merchandising pol- icies and guidelines. The store manager is a good source for this information as well as your Division Management. Once you have developed your recommendations, direct them to your Division Management. It is essential to develop a good working relationship with the people in charge at every store in your assignment... whether chain or independent. This can help in selling and implementing plans, and in handling any problems that arise in an account. ti V MI-30
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CONTRACT COMPLIANCE All of R. J. Reynolds' carton merchandisers are governed by shelf contracts. These contracts have certain requirements which must be honored by both the retailer and RJR. The specific requirements differ from contract to contract, so it is very important for you to be familiar with each contract and its application within your assignment. Compliance problems will occur from time to time. They may be minor, such as a few competitive cartons placed on RJR shelf space . . . or major, such as a merchandiser being removed from self-service while on a self-service contract. Often, the person in authority may not be aware that something is wrong. Simply calling it to the indi- vidual's attention could solve the problem. In all cases, you need to know why a problem exists. Whatever the problem, you should attempt to handle it immediately in a positive, diplomatic manner. When problems continue or occur repeatedly, a stronger course of action may be necessary. This may be suspen- sion of payment for an appropriate length of time. Promotional monies are paid usually on a quarterly basis; however, this can be broken down to monthly. The six reasons that could justify nonpayment are as follows: 1. Non-RJR product on display: Competitive merchandise occupies the space allocated to RJR products. 2. No display or not self-service: A merchandiser has been removed or placed on nonself-service when a self- service contract is in effect. 3. Insufficient merchandise: RJR products are not main- tained in sufficient quantity and results in repeated out-of-stock conditions. 4. Competitive advertising or insufficient riser cards: Competitive cigarette advertising has been installed on an RJR fixture, or the required RJR advertising has been removed. 5. Improper location, obstruction or not visible: The merchandiser has been moved to a location that RJR has not previously approved, or it has been obstructed in such a way that the product is not readily accessible or visible to the consumer. 6. Canceled by account: The merchandiser has been removed and the retailer no longer wants to participate in the program.
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COMPLIANCE PROBLEM GUIDELINES When handling a compliance problem for one of our carton or package contractual agreements, the following steps should be followed: 1. First Offense a. Determine reason for non-compliance, i.e. customer or store caused, lack of space, misunderstanding of contractual agreements, competition, etc. (If non-compliance caused by customer, correct problem; do not give warning.) b. Bring non-compliance problem to the attention of the store manager before correcting problem. c. With assistance or knowledge of person in charge of department, correct the problem. d. In a tactful and businesslike manner, notify (warn) the cigarette department head and the store manager that recurrence of this problem will result in deduction of payment. 2. Second Offense a. Bring non-compliance problem to the attention of the store manager. b. Make every effort again to solve the problem with the assistance or knowledge of the person in charge of the cigarette department. c. In a tactful and businesslike manner, notify the cigarette department head and the store manager that payment is being deleted, and for what specific reason and period of time. When handling any non-compliance problems, the following quidelines apply: 1. One warning must be given on a specific problem before deleting payment for non-compliance. Exception: If store manager refuses to correct the problem, payment may be deducted immediately. Exception: In some cases, a second warning may be justified, i.e. new store manager not in store at time of first warning. Sales Reps. should have the flexibility to utilize judgment where exceptions may arise, but should notify Division Management of their decision. MI-32 %I
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2. Whenever a warning or deduction of payment is issued, the cigarette department head and store manager must be notified. 3. If a chain is involved, R J R personnel responsible for calling on the chain must be notified of warnings and payment deductions. In return, R J R personnel responsible for contacting the chain should acknowledge when payment has been deducted. 4. Every effort should be made to correct non-compliance problems at store level in a tactful and businesslike manner. 5. Cancellation of contract or removal of fixtures should be considered only as a last resort. If a chain is involved, R J R personnel responsible for calling on the chain must authorize any contract cancellation or fixture removal. The request to cancel a chain contract or remove fixturing should be answered quickly to prevent even bigger problems at store level due to elapsed time. NOTE: When store manager is not available, the highest ranking manager should be informed.
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PROGRAM STOP #6 COMPETITIVE CONTRACTS As you develop merchandising recommendations for your accounts, keep in mind that these retailers have five other tobacco companies calling or. them to promote their own ideas and programs. In fact, all competitors offer permanent and temporary display programs with promotional monies. There are several reasons why you need to be aware of the competitive programs in your area: o To know when a change in a competitor's program occurs. o To take other programs into consideration when devel- oping RJR merchandising recommendations. o To prepare recommendations that benefit the retailer more than competitors' programs do. In general, all competitive cigarette carton contracts require the following: o Offered only to retailers who self-service cigarette cartons. o Promotional monies are determined by sales volume and shelves or rows allocated to the particular company. o Plan compliance will be determined by a company repre- sentative. The following summary provides a general idea of the con- tracts each competitor offers. Keep in mind, however, that competitive contracts are subject to change. The following competitive contracts are not all inclusive. You should request the most current competitive contracts for your Area from your Manager. Take time to review these in detail and become familiar with the key points of each. You should check regularly with your division management for updated information. At times, you may be the first to hear of a change in your area. Apprise Division Management of any information so they can inform Winston-Salem. This kind of information helps RJR maintain the competitive edge in merchandising. The following outlines the most current information available which has been prepared in order to: o Provide a broad overview of all competitive contracts o Obtain maximum RJR space/shelf plan
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o Increase contract knowledge to gain a competitive advantage o Apply this knowledge when preparing plan-o-grams for presentations o Position maximum promotional money to the retailer o Provide rebuttal to competitive presentations o Provide retailers a complete merchandising service o Provide sample copi.s of competitive contracts to examine complete contract verbage and format
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Philip Morris Philip Morris utilizes two basic contract formats. The first contract deals with fixtures; the second is their Compact/Impact Contract which deals with shelving. Listed below is an analysis of both. PHILIP MORRIS (FIXTURE) CONTRACT REVISION EFFECTIVE 7/84 Key Points: o Eliminated volume categories. o Requirements changed from % of capacity to rows. o All rows must be 5-high (removed 75% stipulation). o Minimum volume 200 cartons/week (200-299 50% by carton). o If volume exceeds 299, (assumption is the contract may be used in either pack or carton outlet). o Philip Morris % of D/D capacity = Philip Morris % of total rows - ? (Note: The application/interpretation of this statement is unclear at this time.) o Philip Morris can now contract for more than the maximum rows per contract and pay $2.00 per extra row in addition to regular maximum contract monies. Store volume must exceed 500 cartons per week. Fixture Contracts: There are 12 individual contracts which Philip Morris uses in various parts of the country. The analysis below provides a complete breakdown of each Philip Morris fixture contract in the following areas: o Row requirement o$ rows o Total $ payment/month o$ capacity o Payment per row
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1. Extended Contract Fixture Minimum 101 rows/505 capacity Application - UCM's and multiple fixtures 156 180 156 180 Plan Rows Rows Payments $/Row % Rows % Capacity AA 41, 45, 51 41 $58.00 $1.41 26.3% 22.7% 24.6% 21.3% AB 45, 51, 56 45 $66.00 $1.47 28.8% 25.0% 27.0% 23.4% AC 51, 56, 63 51 $73.00 $1.43 32.6% 28.3% 30.6% 26.5% AD 56, 63 56 $80.00 $1.43 35.8% 31.1% 33.6% 29.1% 63 $87.00 $1.38 40.3% 35.0% 37.8% 32.8% 2. Standard Contract Fixture 90-100 rows/475 capacity Application - Single 5' fixtures 96D 96D Plan Rows Rows Payment $/Row % Rows % Capacity AA 28, 31, 34 28 $48.00 $1.71 29.1% 27.3% AB 31, 34, 36 31 $57.00 $1.84 32.2% 30.2% AC 34, 38, 42 34 $64.00 $1.88 35.4% 33.2% AD 38, 42 38 $70.00 $1.84 39.5% 37.1% 42 $76.00 $1.81 43.7% 41.0% 3. Small Contract Fixture 89 or less rows/375 capacity Application - Single 4' fixtures 72D 72D Plan Rows Rows Payment $/Row % Rows % Capacity AA 23, 26, 29 23 $23.00 $1.00 31.9% 29.9% AB 26, 29, 32 26 $30.00 $1.15 36.1% 33.8% AC 29, 32, 36 29 $36.00 $1.24 40.2% 37.7% AD 32, 36 32 $42.00 $1.31 44.4% 41.6% (ft 0 r m \ 36 $49.00 $1.36 50.0% 46.8% N MI-36
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PHILIP MORRIS COMPACT/IMPACT CONTRACTS EFFECTIVE 7/84 Key Points: o Store shelving or approved fixture. 0 90 row minimum/475 fixture capacity. o Maintains % capacity requirement. 0 75% Philip Morris rows must be 5-high (25% can be 3 high, etc.). o There are no volume categories. o Participation bonus, $12.00/month following Compact/ Impact implementation is included in payment. o Minimum volume 300 cartons/week (50% by carton). o If volume exceeds 300, (assumption is the contract may be used in either pack or carton outlet?) o Philip Morris can now contract for more than the maximum % per contract and pay $5.00 per % point in addition to maximum % allowed by contract. Volume must exceed 500 cartons per week. Compact/Impact Contracts: There are 4 individual contracts which Philip Morris uses in various parts of the country. Plan % of Capacity AA 23%, 26%, 29% AB 26%, 29%, 32% AC 29%, 32%, 36% AD 32%, 36% Store Shelving - 90-Row Minimum: % Capacity Payment 23% $ 70.00 26% $ 78.00 29% $ 85.00 32% $ 92.00 36% $100.00
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Lorillard Lorillard appears to be headed in the direction of regional contracts. Their contract format has two parts. The first deals with fixtures and the second deals with gondola shelving. LORILLARD FIXTURE CONTRACT REVISION EFFECTIVE 10/82 Key Points: o Minimum requirement one full shelf. o Minimum volume is 100 cartons per week. o Shelf position either 1, 2, 3, 4 or 5. o All rows must accommodate 5 cartons high. o Applies to standard fixture (minimum 12 cartons wide with 6 shelves). o The main difference in the contracts which they use in the various areas is the maximum number of rows Lorillard will purchase (20 vs. 26). MI-38
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vme„ n: Grid (Areas - Indianapolis, Detroit, Yew Jersey) PUN I SCF{EDCLE PLAN I CONTRACT (Areas - Kansas City) (eff. 10/1/82) Shelf+ $8.00 $15.00 $32.00 $44.00 Shelf+ 58.00 $15.00 $32.00 $44.00 Rows Vol. 100-199 Vol. 200-299 Vol. 300-499 Vol. 500+ Vol. Rows 100-199 Vol. 200-299 Vol. 300-499 Vol. 500+ 1 16.25 35.00 47.00 1 16.25 35.00 47.00 2 17.50 38.00 50.00 2 17.50 38.00 50.00 3 18.75 41.00 53.00 3 18.75 41.00 53.00 4 20.00 44.00 56.00 4 20.00 44.00 56.00 5 21.25 47.00 59.00 5 21.25 47.00 59.00 6 22.50 50.00 65.00 6 22.50 50.00 65.00 7 23.75 53.00 68.00 7 23.75 53.00 68.00 8 25.00 56.00 71.00 8 25.00 56.00 71.00 9 26.25 59.00 74.00 9 26.25 59.00 74.00 10 27.50 62.00 77.00 10 27.50 62.00 77.00 11 28.75 65.00 80.00 11 28.75 65.00 80.00 12 30.00 68.00 83.00 12 30.00 68.00 83.00 13 31.25 71.00 86.00 13 31.25 71.00 86.00 14 32.50 74.00 89.00 14 32.50 74.00 89.00 iS 76.50 91.50 15 . 76.50 91.50 5 79.00 94.00 16 79.00 94.00 1 81.50 96.50 17 81.50 96.50 18 84.00 99.00 18 84.00 99.00 19 86.50 101.50 19 86.50 101.50 20 89.00 104.00 20 89.00 104.00 21 106.50 22 109.00 23 111.50 24 114.00 25 116.50 26 119.00
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LORILLARD GONDOLA CONTRACT EFFECTIVE 4/83 Key Points: o Payment is based upon number of rows of Lorillard brands, length of in line shelving, and geographic area. Payment Grid Minimum Row Requirements Area I Area II Up to 8 feet 16 20 8 feet to 10 feet 20 24 10 + feet 24 28 Maximum Payment Area I - $104.00 Maximum Payment Area II - $119.00 k
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LORILLARD GONDOLA CONTRACT IN-LINE PLAN I SCHEDULE (Area 1) UP TO 8 FEET 8+ FEET TO 10 FEET 10+ FEET VOLUME 200-299 300-499 500+ 200-299 300-499 . 500+ 200-299 300-499 i500+ ROT.'S 16 $15.00 $32.00 $44.00 17 16.25 35.00 47.00 18 17.50 38.00 50.00 19 18.75 41.00 53.00 20 20.00 44.00 56.00 $20.00 $44.00 $56.00 21 21.25 47.00 59.00 21.25 47.00 59.00 22 22.50 50.00 62.00 22.50 50.00 62.00 23 23.75 53.00 65.00 23.75 53.00 65.00 t 24 25.00 56.00 68.00 25.00 56.00 68.00 $25.00 I $56.00 1 $68.00 25 26.25 59.00 71.00 26.25 59.00 71.00 26.25 59.00 I 71.00 26 27.50 62.00 74.00 27.50 62.00 74.00 27.50 62.00 ~ 74.00 27 28.75 65.00 77.00 28.75 65.00 77.00 28.75 65.00 77.00 28 30.00 68.00 80.00 30.00 68.00 80.00 30.00 ~ 68.00 80.00 29 31.25 71.00 83.00 31.25 71.00 83.00 31.25 71.00 83.00 30 32.50 74.00 86.00 32.50 74.00 86.00 32.50 74.00 I 86.00 31 76.50 89.00 76.50 89.00 76.50 I 89.00 32 79.00 92.00 79.00 92.00 79 00 I 92 00 33 81.50 95.00 81.50 95.00 . . i I 81.50 f 95.00 34 84.00 98.00 84.00 98.00 84.00 ~ 98.00 35 86.50 101.00 86.50 101.00 86.50 1101.00 36 89.00 104.00 89.00 104.00 89.00 1104.00 111% 0 ~ ~ N N 0 w MI 40.1 ~
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AREA I LORILLARD GONDOLA CONTRACT IN-LINE SCHEDULES AREA 2 Maine North Carolina South Carolina Georgia Tennessee W. Virginia North Florida - Jacksonville, FL Market only Alabama Missouri Louisiana Arkansas Kentucky Indiana Ohio Texas Oklahoma Kansas Mississippi Wyoming Colorado New Mexico Arizona Utah Montana Idaho Washington Oregon Nevada Alaska Hawaii California - (Excluding Bay Area) S. Virginia New York Massachusetts Connecticut New Hampshire Vermont Rhode Island Pennsylvania South Florida Illinois Michigan Wisconsin Iowa Minnesota North Dakota South Dakota Nebraska New Jersey Maryland Delaware California (Bay area) Washington, D. C. N. Virginia MI 40.2
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GONDOLA SHELVING BONUS PAYMENTS o LORILLARD WILL PAY $150 PER OUTLET TO RETAILERS CONVERTING TO OR IMPLEMENTING IN-LINE MERCHANDISING USING STORE SHELVING OR SHELVING ACCEPTABLE TO LORILLARD. o BONUS PAYMENT: 1. $100 PER OUTLET AT THE END OF THE FIRST FULL CALENDAR QUARTER OF PARTICIPATION. 2. $50 PER OUTLET AT THE END OF THE FOURTH FULL CALENDAR QUARTER OF PARTICIPATION. o RETAILER SHALL NOT BE ELIGIBLE FOR MORE THAN ONE IN-LINE CONVERSION BONUS PAYMENT PER LOCATION. MI 40.3
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LIGGETT & MYERS EFFECTIVE 10/82 L&M utilizes several contracts which are available in various parts of the country. Key Points: o Contract based on rows. o Minimum requirement is 6 rows on a standard fixture. o Minimum fixture size requires 300 front carton facings. o Shelf position approved by L&M representative. Payment Grid (L&M Southern Region) SCHEDULE OF PERFORMANCE REQUIREMENTS & PAYMENTS MONTHLY PAYMENTS PER STORE Store Category 6 Rows 7 Rows 8 Rows 9 Rows 10 Rows Total Carton Weekly Facings Cigarette 30 35 40 45 50 Carton Sales Row Per Store Position Shelf of our Choice Shelf of our Choice Shelf of our Choice Shelf of our Choice Shelf of our Choice 1 Under 199 $1.80 $2.10 $3.20 $3.60 $4.00 2 $3.60 $4.20 $6.40 $7.20 $8.00 200-299 3 $5.40 $6.30 $9.60 $10.80 $12.00 300-399 4 $7.20 $8.40 $12.80 $14.40 $16.00 400-499 5 $9.00 $10.50 $16.00 $18.00 $20.00 500 & Over k MI-41
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Payment Grid (Seattle & Broker Districts) SCHEDULE OF PERFORMANCE REQUIREMENTS & PAYMENTS MONTHLY PAYMENTS PER STORE Store Category 5 Rows 1st Additional Row 2nd Additional Row 3rd Additional Row Weekly Total Carton Cigarette Facings 25 30 35 40 Carton Sales Row Per Store Position Shelf of our Choice Shelf of our Choice Shelf of our Choice Shelf of our Choice 1 $2.00 $ .50 $ .60 $ .60 Under 199 Per Row Per Row Per Row 2 $4.00 $1.00 $1.20 $1.20 200-299 Per Row Per Row Per Row 3 $6.00 $1.50 $1.80 $1.80 300-399 Per Row Per Row Per Row 4 $8.00 $2.00 $2.40 $2.40 400-499 Per Row Per Row Per Row 5 $10.00 $2.50 $3.00 $3.00 500 & Over Per Row Per Row Per Row These grids also apply to gondola shelving - equivalent offer to that set forth for the same amount of space or a minimum of 5% of the space, whichever is greater, is available to retailers.
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LIGGETT & MYERS SPECIAL SHELVING BONUS PAYMENT EFFECTIVE 1-1-83 Key Points: (Eastern Region) o Monthly bonus payment is 25C per facing. o Retailer must be continually in compliance with the existing shelving contract for one full year to qualify. o If a retailer is not currently under shelf contract, he will be eligible for payment, provided his shelf contract is in continual compliance for a full year. o Total bonus payment will be made after the completion of one full year of compliance. o On a quarterly basis, retailer will receive a credit memo showing the amount of earned bonus; (however, no payment will be made unless there is a continuous one-year compliance). %k MI-43
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BROWN i WILLIAMSON E ective - - Kay Points ° Offering five regional contracts instead of one national contract. Regions are designated as: A- B - C - D - E ° Eliminated total weekly carton sales volume categories as basis for payment. ° Established B & W weekly carton sales volume as basis for determining the maximum number of rows they will purchase and payment. B & W Weekly Carton Sales Maximum Number of Rows Purchased 136 + 38 101-135 36 71-100 30 40-70 25 ° In the top payment category, will purchase a maximum of 38 rows. ° Maximum payment in top category varies from $79 to :iC9 - depending on region.
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$Y w Trading Areas 9fy 0 Z 10- 6fi05 MI 44.1 Cl Region A QRegion B 0 Region C 0 Region D C] Region E
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1983 CARTON CONTRACT MONTHLY PAYMENT SCHEDULE A ROWS 15 16 17 18 19 20 ~ 23 24 25 26 27 28 29 33 31 32 33 34 35 36 ?7 38 B & W WEEKLY CARTON SALES 136+ 101-135 71-100 40-70 S C H E D U L E I II III IV 44.00 44.00 44.00 44.00 44.00 44.00 44.00 44.0G 47.00 47.00 47.00 47.00 50.00 50.00 50.00 50.00 53.00 53.00 53.00 53.00 56.00 56.00 56.00 56.00 59-.00 59.00 59.00 59.00 65.00 65.00 65.00 65.00 68.00 68.00 68.00 68.G0 71.00 71.00 71.00 -1.00 74.00 74.00 74.00 74.:,-: 77.00 77.00 77.00 74.00 80.00 80.00 80.00 74.0C 83.00 83.00 83.00 7;.0C 86.00 86.00 86.00 7;.C0 89.00 89.00 89.00 74.00 91.50 91.50 89.00 74.G0 94.00 94.00 89.00 74.00 96.50 96.50 89.00 74.00 99.00 99.00 89.00 74.00 101.50 101.50 89.00 %;.00 104.00 104.00 89.00 74.CC 106.50 104.00 89.00 74.00 109.00 109.00 89.00 %11 .0~ I ~ 0 ~ N MI 44.2 N 0 -~
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GONDOLA SHELVING BONUS PAYMENTS Key Points: o Payment is $150.00 ($100.00 paid at the end of first full quarter and $50.00 at the end of the fourth full quarter). o Based on the current use of or conversion to store gondola shelving. o B&W minimum space is 120 carton front facings or the equivalent of 24 rows (5 cartons high). o Shelf position must be approved by B&W representative and new space allocated must be greater than that under current contracted space on the fixture from which conversion will be made.
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AMERICAN TOBACCO COMPANY EFFECTIVE 9/82 ATC utilizes one basic contract. Key Points: o Minimum requirement is one full shelf. 0 0 0 All rows must accommodate 5 cartons high. Shelf position either 1, 2, 3, 4 or 5. Applies to standard fixture (minimum 12 with 6 shelves and gondola shelving). cartons wide Payment Grid Store Weekly Cigarette Volume or Fixture Carton Capacity Full Front Shelf Payment Extra Rows Up to a Maximum of 20 Maximum Payment Per Month Per Store 500 and over $40.00 $3.00 per row $100.00 300-499 $30.00 $3.00 per row $ 90.00 100-299 $20.00 $3.00 per row $ 80.00 0- 99 $10.00 $3.00 per row $ 70.00 GONDOLA SHELVING BONUS PAYMENTS Key Points: o Payment is $200.00 ($100 paid at the end of the first full quarter and $100 paid at the end of seven full quarters). o Store must establish/reorganize cigarette display using store shelving or fixtures approved by ATC. o Shelf position and space must be comparable to the amount of space required on a standard carton fixture.
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INDUSTRY PLAN-O-GRAMS Your knowledge of both RJR and competitive carton fixtures contracts is very important when selling our various shelf display plans. For example, increasing RJR shelf space usually will affect some competitive shelf payments. You will need to speak knowledgeably to retailers, not only about RJR contracts, but also about competitive contracts. You must be very careful, however, not to "represent" com- petitive companies. For example, during a presentation, you should not say "Philip Morris in this case will pay . .." rather you should say, "According to my interpre- tation of the Philip Morris contract, they will probably pay . . . However, you will need to confirm this with your Philip Morris representative." When preparing an Industry Plan-o-gram for a presentation, you should take into consideration: o Share of Market by Company o RJR and competitive shelf payments o Type of fixtures utilized o Total industry payments o Individual store trends and concerns One example of a completed Industry Plan-o-gram for our End Cap carton merchandiser follows. STOP Go to Workbook Exercise #6 MI-47
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r iNp/Vl(wA1 V111 Mf NLNANpVN~ Sf MVl( ! RJR PX m RJR Pm -&) RJR Merchandise~ D 156-Row W80-Row 48fu 4130) Extender D 3-Wide D 6Wide o Present O Proposed Specifications E _,i Cap C;arton Merchandising ..Ystem I - JR ~ Plan-O-Gram RJR RJR Extender D 3-Wide D 6-Wkle POV~,,4- cowalr+r *"AA/M •7 ,9 Aftaa R JR Rows: , So - ATC ~ Capacity: B&W ~ - RJR Shelf Plan: PM Date: PL AuftriZed By: L&M R1RT Form N7117 10/83 Camm. 0071175 ISQr reuos TOTAL #146- w ft(S) t#7A Wraparound D 3 Ft e4 Ft D Other
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End Cap Carton Merchandising System SC4g2 2052 Brand Family Load 'Plan
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(D z 0 Z Q f71K1 IWV . 50482 2053
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PROGRAM STOP #1 CIGARETTE MERCHANDISING, PART II Introduction This section of the STEP Binder contains reference ma- terial that supplements the Cigarette Merchandising, Part II audio-visual module. It is organized so that you can locate easily the appropriate information at each Program Stop. Cigarette Merchandising, Part II covers merchandising objectives, merchandisers, and plans as they relate to cigarette package sales. While R.J. Reynolds's objec- tives for package merchandising are the same as for car- ton, the vehicles used to attain them are significantly different. The topics covered in this section include: o Review of Merchandising Objectives o Package Merchandisers o Guidelines for Placing Merchandisers o Seven Steps for Selecting and Installing Merchan- disers o Merchandiser Signage o Package Merchandiser Agreements o Working with Independents and Chain Stores o Competitive Merchandisers o Permanent Package Display Programs o Plan Compliance o Competitive Permanent Display Programs
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REVIEW OF MERCHANDISING OBJECTIVES R.J. Reynolds's objectives for package merchandising are the same as those for carton merchandising. The five objectives are: o To insure adequate inventory levels in all retail cigarette outlets to support field sales in meeting their sales volume and share of market goals. o To obtain/maintain prime positioning on merchandisers to maximize the visibility and exposure of RJR products. o To solidify RJR's role as the industry leader in merchandising. o To provide RJR a competitive advantage by offering superior merchandising programs. o To develop and build credibility with retailers and improve our in-store dominance.
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PACKAGE MERCHANDISERS R. J. Reynolds has five main types of package merchandisers for use in retail outlets. Standard Metal The basic merchandiser is a metal unit which is primarily available in 5, 7, 11, 14, 18 and 20-column sizes. These fixtures make excellent use of space. Additionally, the vertical gravity feed rows provide product self-rotation when packs are pulled from the bottom. Slide-by Slide-by merchandisers are actually two standard metal merchandisers combined in one unit. The front merchandiser is mounted on a track so it can slide to provide access to the rear merchandiser. These merchandisers are useful in outlets with limited space. One requirement that retailers must agree to when a slide-by merchandiser is placed is that RJR brands will occupy the front merchandiser exclusively, plus additional space as needed in the rear. Overhead Overhead merchandisers provide an alternate location for merchandising cigarette packages. They are used predomi- nantly in nonself-service locations and provide a prominent advertising advantage. They are modular in construction, allowing flexibility and sufficient rows. Retailer benefits of using this system include improved store security because the clerk does not turn his back on the customer and, because of the overhead configuration, the space used is readily available in most cases.
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Centralized Package Merchandiser This is a free-standing, mobile merchandiser. It is available in several sizes of which the 5 and 6 sided configurations are used most often. Each slot holds a full carton of cigarettes which makes it easy to stock. The majority of slots are end faced, however, the top row of each module is designed to allow front facing. One requirement when a centralized merchandiser is used is that the top rows on each module be used exclusively for RJR brands. Gondola End Frame This merchandiser is a 3-sided U-shaped unit designed for placement at the front end of a retailer's gondola shelving. Like the centralized package merchandiser, each slot holds a full carton of cigarettes. Again, the top rows of each module are used for RJR brands exclusively. Security Features for Package Merchandisers Security features for package merchandisers are avail- able; however, usage is limited. See your Division Management for local policy, and requirements governing the placement of security. Merchandiser Resources For more information on the specific package merchandisers available, review the Package Merchandiser sections in the Cigarette Merchandising Manual and the Merchandisers and Component Parts Catalog with your trainer. For information about the overhead merchandisers refer to the Specification Sheets section of the PDI at POS binder, and the Overhead Merchandiser selling brochureS. STOP Go to Workbook Exercise #1
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PROGRAM STOP #2 GUIDELINES FOR MERCHANDISER PLACEMENT Positioning Of the various type package merchandisers available, often more than one could be applied in a particular retail outlet. Merchandisers are selected based on the retailer's need (example, sales volume and number of brands stocked), cost effectiveness, space availability and to the degree we can provide maximum visibility and accessibility for RJR brands. In supermarkets, guidelines are established as a result of tests conducted to determine the best methods. Our merchandising guidelines are divided into two groups - Priority Group 1 and Priority Group 2. Priority Group 1 addressed five self-service merchandising methods that, with adequate merchandisin , provide RJR the best overall benefits and should be stressed in each presentation. These methods are beltline, augmented beltline, universal package merchandising kits (U-shaped merchandisers), gondola end, and centralized. These methods have been tested and have proven to be the best for RJR and the retailer. Our Priority Group 2 consists of two other methods which were tested using standard metal fixtures placed at alternate beltline and backbar. Of these, the self-service alternate beltline positions provides higher cigarette sales than the non-self-service backbar position. Your trainer will illustrate and explain these methods to help you in understanding the differences. Merchandiser Placement R. J. Reynolds supplies merchandisers to retailers as one means of insuring that our brands have maximum exposure to the consumer. We also want to insure that any merchandiser placement is an effective use of RJR resources. Therefore, RJR has established guidelines for assessing the profitabil- ity and desirability of merchandiser placements. ~ b f OD ~ N MII-5 ~
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For instance, we would not want to offer new or additional merchandisers to a retail outlet where the existing mer- chandisers are in good condition and they provide adequate space for RJR brands. These guidelines prevent us from incurring costs where we do not improve the availability of our products. The only exception to these guidelines would be if RJR's space is threatened by the addition of new brands. In this case, or when sales volume increases warrant, we would consider placing an add-on unit, or additional fixturing as necessary. When placing merchandisers, you should strive to place them in the most visible location available. You also want to ensure that RJR brands have a prominent position on the merchandiser. Fixtures should never be placed in locations where they are not visible to the consumer. Unlike carton merchandisers, package merchandisers are not covered by contracts. However, space requirements for RJR brands should be defined and agreed upon when consumating the arrangement to install new fixtures. These requirements are specified as "adequate merchandising" in a definition that states "one row/column is required for each RJR segment 1, 2, and 3 brand carried in inventory and space to expand for new and growth brands". The written definition will be furnished and explained to you by your trainer. When you feel that a merchandiser placement is warranted, prepare your recommendations and submit them to Division Management for approval. STOP Go to Workbook Exercise #2
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PROGRAM STOP #3 SEVEN STEPS FOR SELECTING AND INSTALLING MERCHANDISERS 1. Determine Proper Merchandiser The first step is to determine the proper size merchandiser for the particular retail outlet. Your decision should be based on location, available space, store's weekly sales volume, and the number of brands stocked. Also keep in mind RJR's positioning preferences. 2. Determining Space for RJR When selecting a merchandising method, every effort should be made to satisfy the following criteria: o Provide a minimum of one row or column for every RJR brand carried in distribution. o Provide the opportunity to expand for RJR new and growth brands. Multiple rows should be obtained whenever possible to provide RJR additional merchandising super- iority. These criteria apply to any merchandising methods. 3. Determine Space for Competitive Brands Allocate the remaining space in the merchandiser to compet- itive brands. The store's weekly sales figures provide a guide for proportionate competitive loading. Your trainer will provide examples which more clearly show RJR, as well as industry space considerations, and will inform you of any local division policies. 4. Merchandise RJR Brands This is a multiple task step.
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Determine the Focal Position for RJR Brands on the Merchandiser s This section will differ depending upon the location of the merchandiser. We should always utilize the upper most visible section of the merchandiser as needed. In our Gondola End Frame and Centralized Merchandisers, we should always occupy the top portions of the fixtures and work downward as needed. Prime focal point usually will be at eye level and easy to reach. Once prime focal point is determined, utilize the plan-o- gram (samples included in this section) to load the merchan- diser, and apply RJR's Brand Family and proportionate load- ing merchandising strategies. Brand Family Merchandising Brand Family merchandising is loading all cigarette cate- gories within a brand family together on the merchandiser. Your local division share of market figures for each brand provide the guideline for loading full columns. As necessary, use half rows above or below to complete a brand family grouping. Brand groupings should be retained in a continuous manner. Brand Family merchandising is important because research shows that consumers who consider switching brands, espe- cially those looking for brands with reduced tar levels, will switch within their brand family if given the oppor- tunity. Proportionate Loading The premise of proportionate loading is that our faster selling brands require proportionately more space on a merchandiser. Your guidelines again are the division's share of market figures and the store's weekly sales of each brand. You will use full and half rows as necessary to ensure adequate inventory on the merchandiser. Be sure to give our growth brands enough space for expansion. Sample package merchandiser plan-o-grams are included in this section of the STEP Binder. The plan-o-gram is a useful tool for planning RJR's allocated space on a mer- chandiser . . . whether for a new installation or for remerchandising made necessary by a change in sales volume or a new brand introduction. cn 0 4: 0 N N d v! ~ MII-8
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To use them, simply write the brand name in the appropriate box on the grid. Start by planning for full columns and then expand as you apply the principles of Brand Family merchandising and proportionate loading. We suggest you fill in the plan-o-gram in pencil since some brand positionings are likely to change as you consider various points of the merchandising strategies. 5. Label Fixturing (Merchandiser Brand Identification) R. J. Reynolds supplies brand identification tags for all RJR brands and many competitive brands. Prior to loading a merchandiser, it should be labelled using the appropriate tags. RJR brands and columns are further identified through the use of pack facsimiles. Facsimiles are full size, pack front representations which are placed in the back of each column plan-o-grammed for RJR brands. Since visibility plays a big part in the overall effectiveness of facsimile placements, it is important to position them properly in the column. Package tags and facsimiles serve several purposes: 1) they provide additional exposure and advertising at the point of purchase; 2) they let the retailer know what brand goes in each column when restocking the merchandiser; and 3) they help insure a home for each RJR brand. 6. Merchandiser Signage All of R. J. Reynolds' package merchandisers are designed and used as vehicles for providing advertising signage at the point of purchase. There is a wide variety of point-of- sale and other advertising available for merchandiser use. To help identify types of advertising, and highlight their current use, refer to your PDI at POS binder (Permanence - Dominance - Impact at Point-of-Sale). At this time, review the material contained in the binder with your trainer. You will see that it contains most of the information you need to use advertising effectively in varied types of retail accounts. Your trainer will provide you any additional division guidelines concerning advertising.
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Signage Program This program addresses RJR's objective of enhancing our in- store presence with point-of-sale advertising on package merchandisers. The signage program incorporates a variety of signage vehicles. Our plastic front sign is the one you will use most frequently. It is installed over the advertising copy bar on our merchandisers. This sign features a flip-up hinge that allows easy access for retailers to fill the merchandiser. The sign also includes retailer benefits in the form of price dials or a message insert ("buy a pack today"). Our signage objective is to have at least one sign placed on all new package merchandisers installed and on all merchan- disers currently in retail outlets. Your trainer will review other aspects of our signage policies and programs with you. 7. Follow Through Once merchandisers are installed, it is important that they be checked and maintained with regularity. This involves checking the merchandiser for general appearance and clean- liness, and the product for freshness. You also want to ensure that the retailer is complying with RJR's merchan- diser placement requirements (signage placement, space allocation, etc.). When brand sales change, or new brands are introduced, it may be necessary to change your original plan-o-gram to reflect these changes. Remember, any changes you make should be directed toward netting additional ' benefits for RJR. STOP Go to Workbook Exercise #3
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PROGRAM STOP N9 PACKAGE MERCHANDISER AGREEMENTS All R.J. Reynolds package merchandisers are covered by oral or written agreement. In our terminology, an agreement is a commitment between RJR and the retailer that we will provide merchandisers and services in exchange for space and other services. No promotional monies are involved. Oral Agreements Our standard metal package merchandiser is covered by oral agreement with the retailer. Our requirements for placing them are covered by the general placement guidelines outlined earlier. These guidelines outline the retailer's responsibilities regarding space, location and advertising. Written Agreements . All our other package merchandisers (slide-bys, overheads, centralized and gondola end frames) are covered by written agreements (copies included here) which specify RJR and retailer responsibilities regarding their placement, use and maintenance. In exchange for RJR providing merchandisers, the Slide-by Package Merchandiser Agreement requires retailers to agree to the following: o Merchandisers will be loaded according to a plan-o-gram provided by RJR. o Front merchandisers will be used for RJR brands exclusively, plus additional space as needed in the rear merchandiser. o R.J. Reynolds is permitted to place a package merchandiser signage vehicle on the front merchandiser and to permanently maintain advertising copy in the sign. o Prohibit the placement of competitive advertising or advertising relating to the retailer's own products to be placed anywhere on the merchandiser. This agreement gives the prime location to RJR brands, increased capacity within space limitations, and a competitive POS advantage.
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The Overhead Package Merchandiser Agreement also provides RJR an extremely visible POS advantage and ensures RJR's share of merchandiser space. This agreement is more spe- cific regarding the placement of the merchandiser; it can only be mounted on or over the primary selling counter in a position that provides full advertising exposure and impact to consumers. The Centralized Package Merchandiser and Gondola End Frame are both covered by a Permanent Package Display Payment contract. Its primary concern is to secure the competitive advantage for RJR by maximizing visibility and POS exposure. Since this contract covers display capabilities in the top of each module, it will be covered in more detail in the display section of package merchandising.
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0 RJRT Form 5810 Rw.10/W PACKAGE MERCHANDISER PLAN-O-GRAM for Memhandiser: Slide-By-Track Combinatlon Front Merchandiser• El 7 Column 0 11 Column • For RJR Cigarette Brands Exclusively E] 14 Column T11 Aufhorlied by Date Rear Merchandiser [] 20 Column 019s0 R. J. Reynolds Tobacco Compeny 99 OZ' ZBir 05
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~ NJ4 I Ii„n, 4977 Ww 10/S0 T I i ~ ~ I , PACKAGE MERCHANDISER P ` •O-GRAM for Authorized by Merchsndiser. Date 1 I , . r , I , I nimensions' Width x Heiqht x DeDth i
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GONDOLA END/MOBILE CIGT. CENTER MERCHANDISER PLAN-O-GRAM Store Name Store Address City/State Zip L II. 1I Il II Il I 4-Sided Mobile Ci . Ctr. - Ca1 P 5-Sided Mobile Ci . Center - Ca acit - 1 P k- 1 Ro 6-Sided Mobile Cigt. Center - CapaCity - 1560 Packs - 156 Rows Gondola End Frame - Capacity - 2080 Packs - 208 Rows RJRT Form 7063 - J/8T commoeltY No. o7os3-, Approved By: Date 89GZ Z'6?~OS
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INDEPENDENT vs. CHAIN STORE MERCHANDISING Any of our merchandisers can have applicability to both independent and chain stores, depending upon the store's space availability and sales. The main difference in working with independents vs. chains is often the re- commendation procedure. With independents you develop a one-on-one working re- lationship with the person in authority (who is usually the store owner). You usually also can discover all the ins and outs of his business easily. This allows you to develop merchandising recommendations that are parti- cularly well-suited to his needs. Additionally, you make and sell your recommendations directly to the operator. In chains you also need to develop this same relation- ship with the store manager or person in authority. However, some chains have a centralized merchandising function; i.e., one individual at headquarters who is responsibile for the merchandising activities at all store branches. In these cases your recommendations may need to be approved by this merchandising manager or buyer. Whenever you develop a merchandising recommendation, it should be reviewed and approved by your Division Manage- ment. For independent stores, once your plan is approved, you present it to the particular retailer. When the plan is for a chain store in which the store manager does not control the final decision, Division Management will handle or assist you in presenting the plan to the chain store buyer. If the headquarters is located outside your division, your management will communicate with the appropriate person in that area. You should strive to develop a good working relationship with all the store managers in your assignment. While some chains make decisions from headquarters, they often seek and act on the recommendations of •the individual managers. A good working relationship with the manager gives your plan added support.
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COMPETITIVE MERCHANDISERS Currently, several of our competitors provide package mer- chandisers to the retail trade. While their total per- centage supplied is small (RJR provides over 90 percent of all package merchandisers), it is still important to be aware of this competitive activity. Obviously, competitive placements provide you an opportunity to increase RJR visibility by replacing them with our merchandisers. Philip Morris Philip Morris provides a variety of both carton and package fixtures. The package fixtures they provide include: o Overhead - two sizes o Standard metal wall mount fixtures o Plastic package modules which make up wall fixtures, end cap gondola, spinner and floor stand mount. Brown & Williamson B&W also offers several package merchandisers. These include centralized spinner, and wall units. • If you discover a competitive placement or hear of a major competitive presentation in your assignment, inform your Division Management as soon as possible. Awareness is a critical ingredient for keeping RJR on top in the market- place. Remember, as a professional RJR Sales Representative, you have at your disposal all the tools necessary to recommend and implement merchandising programs tailored to a retailer's wants and needs. None'of our competitors can match the flexibility or program benefits RJR offers. This statement is supported by retail- ers nationwide who use our services and depend on us to meet their ever-changing merchandising needs. STOP Go to Workbook Exercise #4 MII-14
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PROGRAM STOP #5 PERMANENT PACKAGE DISPLAY PROGRAMS R. J. Reynolds' permanent package displays are a specialized group of display vehicles designed to merchandise cigarettes by the package. The objective of these displays and pro- grams is to gain consumer trial and awareness for our new and growth brands. There are a variety of display unit sizes and styles to suit the needs of a retail outlet (review the Permanent Counter Display section of the Cigarette Merchandising Manual and Merchandisers and Component Parts Catalog with your trainer for specifics). It is important that you do not confuse permanent display payments and contracts with merchandiser placement agree- ments. Under no circumstances do we pay for the placement of package mercRandisers. However, we do pay for display space which, as in the case of our centralized displays, can be built into the unit. All of the display programs are covered by contract since they provide promotional monies to the retailer for allowing their placement. Following is an overview of each of the display program contracts. Copies of each individual con- tract are also included in this section for your reference. You should take some time to review them and discuss their specific applications with your trainer. Permanent Counter Display (PCD) The displays used in this program are of two types - plastic and wire displays. They are designed to be placed on the primary selling counter and in a variety of configurations. The flexibility built into these displays will meet the needs of a variety of individual retail outlets. Space availability will influence your decision on which display and configuration to use. See your Division Manager for additional guidelines regarding wire and Modular Counter Display usage.
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The requirements for placing PCD's, as stated in the plan contract, include the following: o A minimum of 50 percent of a retail outlet's sales volume must be by the pack. o Must be located next to the primary cash register (or in the number one position closest to the cash register). o Payment plans are based on positioning. Cash register placement is your primary objective, and payments are positioned to assist you in meeting that objective. o Must contain riser card advertising. o Must be self-service. o RJR designates particular brands to be featured (your Work Plan Organizer provides this load plan information). The payment schedule for PCD plans is based on the weekly sales volume of an outlet and the size of the display used. Before recommending or placing a PCD, check with your Division Management. This is to help ensure RJR the maximum benefit from PCD placement. Permanent Package Display Module A twenty minute module describing the flexibility of both the plastic and wire displays will help you to understand the many different configurations available. Your trainer will also take you through a "hands on" demonstration of both displays.
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Specialty Store Permanent Counter Display There are several categories of retail outlets that merchan- dise cigarettes by the pack, but that have a particular image they want to present to the consumer. For these specialty stores (e.g., smoke shops, hotels, gift shops, etc.), R. J. Reynolds designed a special 20/30-pack display that suits their up-scale image. The contract payment for these displays is a set monthly rate for each display, regardless of volume. Because of the specialty nature of this display, you should check with your Division Management for details regarding its application and use. Permanent Security Package Display . R. J. Reynolds provides this special display for use in high pilferage areas. Unlike most of our other contracts, the payment schedule shown on this contract states an annual rate, rather than monthly. The particular payment still is based on an outlet's weekly cigarette sales, however. As with any of our security merchandising vehicles, Division Management must approve any considered placement.
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Permanent Package Display for Centralized and Gondola End Frame Merchandisers This contractual agreement requires that RJR occupy the top of each module utilizing a special snap-in display ring. Display payment applies only to display space gained to provide RJR a competitive advantage. The display rings are designed to be attached to either a centralized package merchandiser or a gondola end frame. The display consists of RJR brand packs faced up in the highlighted area in the top of the merchandiser. Use of these displays provide RJR definite competitive sales and advertising advantages since they are prominently posi- tioned on the merchandisers. See your Division Management for details concerning the use of this contract in your Division. MII-18
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Permanent Checklane Display As discussed, our permanent counter display program is targeted to retail outlets that sell cigarettes primarily by the pack. To enhance our ability to gain RJR brand trial in retail outlets which sell cigarettes primarily by the carton, but which also sell packs (like chain supermarkets), RJR developed the 30-pack checklane program. The permanent checklane display ensures high visibility and product availability for our new and growth brands on a continuing basis. It also provides RJR the preferred check- lane display position. To ensure effectiveness, the checklane display contract requirements include the following: o Retail outlet must sell a minimum of 300 cartons per week. o Retail outlet must have three or more active checkstands. o Displays must be located at selected active checklanes as agreed upon by an RJR representative and the retailer. o Displays must be maintained on a self-service basis. o Retailer will maintain standard riser card advertising on the display. o Program is not to be used where temporary 20/30 pack or PCD plans are in effect. However, it may be offered in conjunction with the display plan for Centralized and Gondola End Frame merchandisers. As for any permanent display program, you should receive Division Management approval before placing checklane displays. STOP Go to Workbook Exercise #5
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PROGRAM STOP #6 PLAN COMPLIANCE R. J. Reynolds' cigarette package merchandising vehicles are covered by a variety of agreements: oral, written and con- tractual. You should become very familiar with each as they are used in your accounts. This will help you be able to ensure plan compliance and to know when a violation occurs. When compliance problems occur, as they will from time to time, you should work with the retailer to solve them promptly and diplomatically. Future compliance problems regarding carton and package fixturing can be avoided if care is given during the initial sell to make the retailer fully aware of his commitments to RJR. At this time, review the material in the Contract Compliance section of the Cigarette Merchandising, Part I print mate- rial. Then discuss with your trainer the differences in applying the contract compliance procedures to oral and written agreements. Remember, agreements do not involve promotional money payments, so you will need to check on your division's policies regarding the action to take when a problem cannot be resolved at store level. The guidelines for compliance listed in the Cigarette Merchandising, Part I print material do apply to our permanent display programs, since these programs are covered by contract and involve promotional monies. STOP Go to Workbook Exercise #6
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PROGRAM STOP #7 COMPETITIVE PERMANENT DISPLAY PROGRAMS Most of our competitors offer permanent display programs to retailers. Check with your Division Management for specific information on what each company offers in their contracts. Included is a comparison between RJR's permanent display program and those of our competitors. Philip Morris, P. Lorillard, Brown & Williamson and American Tobacco all offer permanent paid counter displays which are targeted toward retail outlets which sell cigarettes pri- marily by the package. Competition for best position on the retailer's counter is intense. RJR recognized the impor- tance of display positioning and so included in the PCD contract the statement that the display must be next to the primary cash register or in a position closest to the regi ter. In this case, your PCD contract helps you maintain that very important "No. 1" position on the selling counter. Some of our competitors also offer permanent package - display checklane programs. Your Division Management will inform you of competitive activity concerning these pro- grams.
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COMPARISON OF COMPETITIVE PERMANENT COUNTER DISPLAY PAYMENTS* Company Volume Ran e Packs Displayed Payment Per Month R. J. Reynolds Over 170 60 $ 7.50 100-169 60 5.00 40-99 60 3.75 10-39 60 2.00 Over 170 80 20.00 100-169 80 8.50 40-99 80 7.25 10-39 80 5.50 Over 170 120 25.00 100-169 120 14.50 40-99 N/A N/A 10-39 N/A N/A Philip Morris 200 plus 50 20.00 100-199 50 17.00 50-99 50 10.00 Less than 50 50 5.00 200 plus 70 26.00 100-199 70 22.00 50-99 Less than 50 70 N/A 13.00 N/A 200 plus 90 28.00 100-199 90 24.00 Lorillard 50-99 Less than 50 Under 100 ctns N/A N/A N/A N/A Primary 90 plus 6.25 Primary/supplemental 90 plus 6.25 Primary/supplemental/2nd 135 plus 11.75 Primary/supplemental/ 2nd/3rd (6.25+5.50) 135 plus 16.25 (6.25+5.50+ 4.50) MII-22
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Company Volume Packs Range Displayed Payment Per Month Lorillard (Cont.) 100-200 ctns Primary 90 plus 6.50 Primary/supplemental 90 plus Primary/supplemental/2nd 135 plus 7.50 14.00 (7.50+6.50) Primary/supplemental/ 135 plus 19.50 2nd/3rd (7.50+6.50+ 5.50) Over 200 ctns Primary 90 plus Primary/supplemental 90 plus Primary/supplemental/2nd 135 plus 8.50 10.00 18.50 Primary/supplemental/ 135 plus 2nd/3rd (10.00+8.50) 25.00 (10.00+8.50 6.50) Combination cigarette/ 112 candy merchandiser 30.00 maximum American None Stated 30 7.50 60 12.25 average Brown & Williamson (No Contract Available) Minimum 3 30-pack checklane displays 12.00 *All based on size of display and volume. STOP Go to Workbook Exercise #7
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THE SMOKING AND HEALTH CONTROVERSY In today's society, a controversy exists about the issue of smoking and health. As a representative of R. J. Reynolds Tobacco Company, you need to be generally informed about the major issue and the role R. J. Reynolds Tobacco Company has concerning the issue. The following information is provided as a resource for you. If you are contacted by any news agencies, etc., for this type of information, you should refer them to a Corporate spokesperson. TOBACCO INDUSTRY RESEARCH ON SMOKING AND HEALTH For the past two decades, hundreds of scientists have per- formed thousands of experiments and written millions of words in a dedicated effort to explore the question of smoking and health. Result: So far, in spite of the massive effort, there are eminent scientists who question whether any causal relation- ship has been proved between cigarette smoking and human disease - including lung cancer, coronary heart disease, or emphysema. They believe that years more of exhaustive investigation will be required to clear up what remains, for now, an unresolved issue. What has been learned is this: Establishing cause-and- effect relationships, which have been claimed to exist by government agencies and other groups, is much more complex than originally thought. In fact, even those who claim that a cause-and-effect relationship has been proved admit that no particular ingredient, as it occurs in cigarette smoke, has been demonstrated as the cause of any particular dis- ease.
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Who Sponsored the Research There are those who believe that voluntary health associations have provided the money for most of this research. Others think it was strictly a project of the various U.S. Government departments. It is true that both have been and continue to be active in this field. But, a major portion of this scientific inquiry has been financed by the people who know the most about ciga- rettes and have a great desire to learn the truth ... the tobacco industry. And the industry has committed itself to this task in the most objective and scientific way possible. A $104,000,000 Commitment In the interest of absolute objectivity, the tobacco industry has supported totally independent research efforts with completely non-restrictive funding. In 1954, the industry established what is now known as CTR, the Council for Tobacco Research-USA, Inc. to provide financial support for research by independent scientists into all phases of tobacco use and health. Completely autonomous, CTR's research activity is directed by a board of 10 scientists and physicians who retain their affiliations with their respective universities and institutions. This board has full authority and re- sponsibility for policy, development, and direction of the research effort. Each researcher receiving a grant has complete freedom to publish the results of his work, whatever the results may be. As of December, 1981, CTR had made grants totalling more than 75 million dollars. In 1964, the tobacco industry made a commitment for additional independent research that amounted, during a ten-year program, to 15 million dollars. This commit- ment was made to AMA-ERF, the Education and Research Foundation, an arm of the American Medical Association. Under this program the ERF, like the CTR, made grants for scientific research with complete freedom and autonomy.
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What They Did As of December, 1981, the Council for Tobacco Research alone had awarded grants to 410 scientists, with nume- rous renewals, in 280 medical schools, hospitals, and research institutions in this country and 10 other countries. During the ten years of the Education and Research Foundation program, 844 grants were awarded to scientists in 98 medical and research institutions. While the projects of these researchers may be con- sidered relatively narrow in individual scope, the industry has not overlooked its research responsi- bilities in broader areas. In 1970, Washington Uni- versity in St. Louis announced two million dollars in tobacco industry funding for study of immunologic factors in cancer. The grant has since been increased to 6.4 million dollars. In 1972, Harvard Medical School announced receipt of a 2.8 million dollar tobacco industry grant for a five-year investigation into pulmonary and cardiovascular diseases. The research program was extended for another three years with an additional $2.2 million grant announced by the Uni- versity in March, 1977. And in 1974, the UCLA School of Medicine announced a 1.7-million-dollar, industry-fi- nanced, five-year program of research on lung defense mechanisms and early detection and treatment of'cancer. An additional 1.05 million renewal grant was announced in June, 1979. The combined commitment by the tobacco industry for all these projects amounts to more than 104 million dollars. In many years, the tobacco industry's commitment in this area has exceeded that of any government department ... and has come to millions more than the research expen- diture on smoking and health reported by all the volun- tary health associations combined. What They Found The findings of research studies funded in whole or in part by the industry have already resulted in publica- tion of more than 2,000 scientific papers in the pro- fessional literature. Through this work, much valuable data have been produced about lung cancer, heart dis- ease, chronic respiratory ailments, and other diseases. However, there's still a lot more to be learned.
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0 The Findings Are Not Secret All the above reports have been published in medical and scientific journals in the United States and other parts of the world. These documents are available to scien- tists and doctors interested in pursuing the scientific truths on the smoking and health issue. The Work Should Go Forward There are eminent scientists who believe that the question of smoking and health is an open one and that research in this area must go forward. From the begin- ning, the tobacco industry has believed that the Ameri- can people deserve objective, scientific answers. With this same credo in mind, the tobacco industry stands ready today to make new commitments for additional valid scientific research that offers to shed light on the question of smoking and health.
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SMOKING & HEALTH RESEARCH - FISCAL 1981 Department of Health and Human Services National Institutes of Health National Cancer Institute National Heart, Lung & Blood Institute National Institute of Environmental Health Sciences National Institute of Child Health $ 7,609,000 3,038,000 1,300,000 & Human Development Alcohol, Drug Abuse and Mental Health Administration 960,000 National Institute on Drug Abuse 627,000 Veterans Administration TOTAL $13,534,900 $ 700,,000 American Cancer Society 90,000* American Heart Association Not available American Lung Association 201,253 TOTAL $ 991,253 Tobacco Industry Council for Tobacco Research $ 5,694,588 University of California (UCLA) School of Medicine 350,000 Washington University School of Medicine 400,000** TOTAL $ 6,444,588 University of Kentucky Tobacco & Health Research Institute $ 2,445,561***
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SMOKING & HEALTH RESEARCH - FISCAL 1981 (cont.) Sources: NCI - by phone from information office 4/9/82 NHLBI - budget office reported by phone 4/8/82 smoking & health research funding totaled $9.1 million, about two thirds of it considered behavioral. NIEHS - by phone from NIH budget office 2/1/82 NICHHO - by phone 4/5/82 NIDA - by phone from research office 5/4/82 with TI subtracting amounts estimated as behavioral work and administrative costs VA - by phone from information office 4/5/82 ACS - by phone from information office.2/18/82 AHA - spokesperson reported 2/9/82 smoking and health programs not among those funded at national level ALA - annual report shows $99,069 for smoking and health research grants and $102,214 for smoking and health fellowships CTR - by phone from council 2/3/82 Industry grants - from Tobacco Institute records U of KY - by phone from office of the assistant director 2/2/82 *Does not include attitudinal or behavioral research **Basic cancer immunology ***Includes administrative costs TI The Tobacco Institute " 11 1875 1 Street, Northwest ~ Washington, DC 20006 ~ ~ HC-6
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DIRECT ACCOUNTS Z M 0 U 0 Q 0 . 5049 2 2087
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PROGRAM STOP #1 DIRECT ACCOUNTS This section contains information which you will need to make a direct account call. The Six Steps of Systematic Selling, which you learned in the Call Procedures Module, can also be applied while making a direct account call. The topics in this section are: o Types of Direct Accounts o Tobacco Code Date Rotation o Inventory Management o Incentive Promotions o Retail Selling Efforts o Handling Damaged Goods o Military Selling Efforts o Exhibits A. Inventory Sheet B. Report of Standing Orders C. Direct Account Order Form 3580 D. Detail Column Descriptions for Domestic Customer Sales Analysis Sheet E. Domestic Customer Sales Analysis Sheet F. Damaged Goods Form
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Types of Direct Accounts A direct account is defined as any establishment which pur- chases tobacco products directly from RJR with no middleman involvement. The direct account must meet certain criteria before pur- chasing on a direct basis from RJR. Listed below are some of the conditions: 1. A new customer must file a formal application in writing to R. J. Reynolds Tobacco Company, Winston- Salem, N. C. 2. The potential customer must be financially sound. 3. The account must have or be able to get a license, from the state or states involved, to affix a state tax stamp. 4. Field Management will exercise judgment as to whether or not it is in our company's best interest to do business with this account. (Enhance distribution, better service in given area, etc.) All inquiries and questions regarding the possible purchase of RJR products direct should be forwarded by you to the Division Manager. Direct accounts are grouped into the following five categories. They are: Jobbers A wholesaler services many accounts with general merchandise, candy, sundries, food, tobacco, and other products. These products are generally for resale to retailers. 1 DA-2
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Direct Vendors Vending machine companies which purchase directly from RJR. Examples -- ARA, Canteen, Servomation. Military Accounts Military bases throughout the United States purchase tobacco products directly from R. J. Reynolds. Mer- chandise purchased for resale by a federal facility is exempt from state taxation. Military accounts are usually high-volume outlets. The tax exemption usually enables them to sell at lower prices than stores in the surrounding area. Direct military accounts purchase products for resale to active duty personnel, retired military personnel, and their dependents. These products must be sold through the Military Resale System such as: Commissaries, Exchanges, Service Clubs, and Recreational Centers. Purchase of cigarettes on military installations by unauthorized patrons is prohibited. For more detailed information on our military customers, refer to the Military Manual available in your Division Office. Direct Chain Accounts Some chain store companies purchase directly from RJR. They have their own warehouse and stamping facilities. They generally service their own stores and often supply the major part of all products sold within the store. Examples -- Supermarket Chains, Drug Chains, Convenient Stores, Gas Stations, and mass merchandisers. Institutions Institutions often purchase our products on a direct basis. Examples -- State and Federal prisons, State Hospitals. Purchase and resale procedures vary from state to state. Division Management will familiarize you with the policies of Institutions in your area later on in your training. STOP Go to Workbook Exercise #1
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PROGRAM STOP #2 TOBACCO (SMOKING & CHEWING) ROTATION Rotation Schedule Retail - Pick up in tenth month* Example: June, 1984 (FD) product will be returned from the retailer during March, 1985. Direct Accounts - Pick up in seventh month* Example: May, 1984 product would be returned from direct accounts during November, 1984. *Includes month of manufacture. Exceptions: 1. PRINCE ALBERT Tin Retail - pick up in seventh month* Wholesale - pick up in fourth month* 2. Humidors Retail - pick up in the thirteenth month* Wholesale - pick up in tenth month* 3. RJR Plugs Retail - pick up in seventh month* Wholesale - pick up in sixth month* *Include the month of manufacture in the above exceptions. Refer to CALL PROCEDURES page 5, for a review of the ciga- rette rotation schedule. Your Division Management will provide you with a generic code date calculator for easy reference in determining code dates.
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TOBACCO CODE DATE ROTATION Smoking and Chewing Products Smoking Tobacco Pouches (Except Madeira and Apple) Packaging Smoking Tobacco Humidors Chewing Tobacco Plugs Scrap Chewing Tobacco Code Date Location Top Panel (Closing Flap on packaging and on carton front) Top Lid End Panel of Box Side Panel of Pouch and End Panel of Carton Any smoking or chewing tobacco which is out-of-date should be exchanged for fresh merchandise and returned to the jobber for shipment back to Winston-Salem. In rotation, move the older products to the front of the fixture. This enables their sale and consumption sooner than products which have more recent code dates. Since all of our individual smoking and chewing (except plug tobacco) products are code-dated, this is a relatively easy job. Plug tobacco products are not individually coded. A physical inspection may be required if there is reason to suspect staleness. To determine freshness, you bend the plug slightly with both hands. A fresh plug will bend slightly without much difficulty. A stale plug will remain rigid. STOP Go to Workbook Exercise #2
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PROGRAM STOP #3 INVENTORY MANAGEMENT Inventory Management for a direct account involves a count (usually weekly) of merchandise by brand to determine the amount of product sold. This information is recorded on an Inventory Order Sheet, (See Exhibit A), or in the Hand-Held Computer, by case. Build-to Figure Once the weekly sales are determined, a build-to figure can be established. This build-to figure consists of the actual weekly sales plus an extra inventory cushion and lag time allowance. This avoids out-of-stock situations. Once the proper build-to figure is established for each brand, this figure becomes the base figure for ordering by brand. Standing Order A standing order (S/O) is an automatic delivery of tobacco products to a direct account during a specific period. This standing order is placed with our Tobacco Customer Services Department in Winston-Salem. Once this procedure is established, the wholesaler receives the specified amount of product on a regular basis without any additional reordering. The S/0 ensures proper inventory levels of RJR products to meet retail demand and eliminates possible out-of-stocks due to insufficient ordering procedures. Implementing a standing order reduces the need to perform a weekly brand count to determine the amount sold for each call. The Report of Standing Orders is a monthly printout showing the number of cases of each RJR brand a direct account has on standing order. The Report allows you to be aware of the S/O to ensure that the majority of merchandise received is on the S/O. The Report of Standing Orders also shows the days that cases are received and the date of the last permanent change. '(See Exhibit B) DA-6
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Many times during the year you may have to adjust the S/0 to compensate for changes in sales. S/0 changes are recorded on your 3580 form. (See Exhibit C) The Domestic Customer Sales Analysis Sheet is a mont.hly computer printout that shows the orders placed by brand for the direct account. This printout shows standing orders, rush orders, extra sales, and total sales. Also listed is the percentage of cases that were shipped on standing order as compared to total cases shipped. The sheet provides comparison figures indicating such areas as cases shipped to date-of-current-year versus the previous year with percent changes noted. The Domestic Customer Sales Analysis Sheet and the Report of Standing Orders are very useful aids when analyzing direct accounts business, determining the need for changing standing orders, and identifying any other problem areas that may exist. (See Exhibits D & E) STOP Go to Workbook Exercise #3
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PROGRAM STOP #4 INCENTIVE PROMOTIONS Promotions encourage a direct account to purchase a partic- ular brand by offering promotional monies. There are two types of promotions: 1. Introductory Discounts - To obtain inventory and product availability at the direct account level, we offer new brand incentives. This encourages the account to purchase adequate stock of new brands, thereby filling channels of distribution. Introductory discounts con- sist of monies paid to direct accounts based on the number of cases that are purchased from their alloca- tion. Allocation is the number of cases available to each account based on past sales of similar brands. This allocation is computed by MDD in Winston-Salem.. 2. Distribution Incentives - This promotion allows the direct account to receive monies for the sales and distribution of a designated RJR product for a given period of time. This program involves a beginning and ending count of products moved through the direct account to the retail trade. (Count/Recount) You, as an RJR Sales Representative, could be involved in sell- ing and auditing this type of promotion. It is imperative that we have adequate inventory and product availability at direct accounts. Direct accounts are the major source of supply for retailers; therefore, if the direct account does not have the product, the retail outlets will suffer out-of-stocks and loss of consumer sales. - RETAIL SELLING EFFORTS Another avenue of gaining distribution is by creating demand for product at the retail level. This is accomplished through your own individual selling efforts by using package and carton displays. When there is a demand for our product at the retail level, the direct account will normally stock the retailer to sat- isfy consumer demands. STOP Go to Workbook Exercise #4 0 f Q \A V1 DA- 8
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PROGRAM STOP #5 HANDLING DAMAGED GOODS You should concern yourself with product freshness in all of your accounts. Your rotation efforts are very fruitful in helping to cut down on the amount of product that becomes stale and unsalable. Picking up unsalable product and ship- ping it back to the factory is a very expensive undertaking, but one which is absolutely essential. Extreme care should be given to ensure that good or salable product is not shipped back. As stated earlier, returnable product is a great expense to RJR. When unsalable merchandise is picked up from the store, it is exchanged through a jobber in your assignment (or a jobber in another assignment who is willing to collect these damaged goods) and shipped back to Winston-Salem. 6.5% of the list price of all cigarette and tobacco products handled is paid for unsalable product if the direct account bundles the unsalable merchandise and ships it back to Winston-Salem. If R J R personnel pack and ship the unsalable product from the direct account to Winston-Salem, the direct account receives 5.5% of the list price. Cigarettes should be packed in cartons; tobacco should be packed in dozen units of the same brand. This merchandise is shipped back to Winston-Salem along with an RJR Damaged Goods Form. Winston-Salem then verifies the quantities received and sends a check to the jobber to cover the cost, the federal tax, and the handling charges of the goods shipped back. DORAL products will be reimbursed based on Federal Excise Tax only.
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It is Company policy that we do not pick up smoke, fire, or water damaged cigarettes from our accounts. If it is requested by an account, your Division Management should be notified, and he will contact the appropriate people for direction. The basic reason for this policy is that if the tobacco was damaged through negligence on the dealer's part RJR does not want to be burdened with the cost. Also, insurance settlements may have been made, and the dealer would be receiving double credit. Your Division Management should be contacted concerning any questionable situations with damaged goods. In order for the jobber to receive proper payment for his returned unsalable goods, the merchandise must be shipped back to Winston-Salem with an RJR Damaged Goods Form pro- perly filled out. (See Exhibit F) Follow the specific instructions on the back of the form when handling damaged goods. MILITARY SELLING EFFORTS 01 In your assignment, you may have one or more direct military accounts. Your objective is to achieve maximum distribu- tion. Your efforts are limited in this type account because all military operations have a control center that sets policy and procedures. These control centers dictate the amount of inventory and merchandise a military account can carry. A Military Account Manager has the flexibility to change the number of brands stocked through a request to the control centers. To obtain distribution, your selling efforts should be directed to the individual Account Manager. He will then make the request to the control center. Military accounts will be discussed in more detail later in your training, if applicable. DIRECT ACCOUNT/MILITARY ACCOUNTABILITIES A summary of your accountabilities in Direct Accounts/ Military Accounts (See Exhibit G), will be included with the sheets listing your retail accountabilities given to you by your Division Management. STOP N Go to Workbook Exercise #5 ~ ~ N ~ O 1 b DA-10 v
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< W < a a a ` ~ ` ` < ` ~ Y _ ~ Y °w ~gw ` Y W <vy BRANDS ~ ,n,l,l 100 1 ~Myl _. Camer FtMfn Cemel Fdlen Mah Pack Cwl LIM Cemet Lb 100 s I Cemd Lte Mah Facl Cfntrry Fnlen Cenlery Lb CMry RNn 1M1 t Cfnlen; Lis 100 s oenl FIUer Dora- Menlnol Doql Fdlfr 100 f D«.I w.WI 110 e I More Fdser Mon MeelAOr MOre Lis 100 1 More Lis Menlnol 100 3 Mo. Fdter No. Mentnoi 11e. RIMr 110 f Mo. Mentnoi 100 c falem Salem 100 t Saiem Lb tale/n LY UO't Salem Ul _ Salem Ul 100 t Mle.l tUln Lb Slerlrn0 Futer 100 s $or tbAie, MeMMI lie t 1u -- VanlaOe Frtler VMItNe 11111eebet VanuFe 100 1 VanlaOe Menleoi 100 3 VMdp UL VtntaPe Ul Menlnoi - Vantete UL 100 1 VaMNe UL n.sol 110 f wrnnon M/WW 1U0't w neun Bes - - - - w'naen Lis wirMn Lis 111111111s w.nslon Ul - w npon Ut 1D0 s TOTAL 7J
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Exhibit B Program No. 000000 REPORT OF STANDING ORDERS Page No. 000 Division 0000 Winston Salem Warehouse - Winston-Salem August 31, 1984 UNITS - CASES Sold To: Jones 3 Sons, Inc. 1019 N. Bridge Street Ship To: Jones b Sons, Inc. 1019 N. Bridge Street P. 0. Box 810 Anywhere, USA 000 00 P. 0. Box 810 Anywhere, USA 00000 Style Brand Name Every Friday Every Monday Every Monda Every Wednesday 1GR R J Gold 1 1GR Work Horse 2 4 3 12M Camel Regular 1 2 1 6M Winston Box 1 12M Winston 20 5 10 5 12M Salem 20 2 3 2 12M Salem 100 1 2 1 12M Camel Ftlter 1 12M Camel Lights 1 3 1 12M Camel Lts H Pk 1 12M Winston 100 1 4 2 12M Sal S1 Lt 100 1 1 12M Salem Lights 1 3 2 12M Salem Lt 100 1 2 1 12M Vantage Ks Filt 2 5 2 12M Vantage 100 1 2 1 12M Vantage Ment 1 1 1 12M More Fit Lt 100 1 12M More Mth Lt 100 1 12M More Filter 1 12M More Menthol 1 12M Winston Lights 2 5 3 12M Winston Lt 100 1 3 1 12M Now Flt 100 1 12M Doral Filter 1 12M Doral Menthcl 1 12M Camel Lt 100 1 y 12M Vant Ultra Lts 1 0 10 12M Vant Ult Lt 100 1 ca 12M Winston Ultra 1 AV 12M Winston Ult 100 1 Aj 0 Permanent S/0 Changes 1 1 b Date Last Perm. S/0 Chg. 04/23/84 04/23/84 08/02/84 08/04/84 Temporary S/0 Changes 4 2 I
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DA EXHIBIT C R.J. Reynolds Tobacco Company P 9hip as Folbws W.ntbn -sM.m. N.c.t71o2 ~ O S DATE p Street P Street ORDER NO I T Ctty T C'ty DELiVERY DfTE t 0 State Z p Code 0 State Zip Code Sales Representative Division Manager NO UPC CASE DESCRIPTION CASES NO SIZE NO UPC CASE DESCRtPT1ON CASES NO SIZE NO UPC CASE DESCRiPTiON CASES NO SIZE CIGARETTES CIGARETTES SMOKING TOBACCO 165124 1?M BAIGHTS 1ar121 12M STERUNG Bo. Regula, 475012 1Gr RoysCorreo^ Po.:c• t8E122 12M BRtGHTS 1006 145128 12M STERaNG Bo. Menmo+ 476010 1Di Roya Comton u'ge 465310 tGr ToL Smo~ np Doc.e' 10,121 12M CAME; Re9, u, 467316 1D: Top H,im.oo• T,r 102129 12M GAMEL Finer 130120 12M VANTAGE Fdler 104125 t2M CAMEL Lqnts 131128 12M VANTAGE 100s C IGARETTE PAPERS 105'22 12M CAME, up^ts t0ps 132126 1120.0 VANTAGE Mtrmol 501205 480 B.s OCB Pace•s 1030E5 6M CAME. Fine- Bo. 133124 12M VANTAGE Unra Lights 505206 a80 B.s OCB Paoern WS 10706C 6M CAME. L,ghts Bo• 135129 12M VANTAGE Unra Lights 100s 51020E TOP Pill 134064 6M VANTAGE Menthod100s 14Y09C 9M CENTUPY rmr 1800E' 6M VANTAGE Unra Mertnoa PLUG TOBACCO 14.1 9M CENTURY Lphls 181065 6M VANTAGE Unra Mtntnod 100s 601203 208 App e Tnm 149090 9M CENTUAYtOG 605t05 108 AppleTncV 150091 9M CENTURY Lqhts 100 110122 12M WINSTON 610204 2oB Browr's Ill 11Tt?0 12M 1MNSTONLrgnls 615013 1B Browr'sMileBc• 151126 12M DOFUL 112126 12M WINSTON Bo. 6?0203 208 cup 157123 f 1?M DORA-Me1tnoa 1131?6 12M WtNSTONLqhts100s 625202 208 DaysWOrs 152124 1?M DORAL 100 114124 12M WINSTON 100s 630103 108 Reynoids S.,r CureC 1581?1 12M DORAL Mermo1100 118125 12M WINSTON Unra l0ps 635060 6a Reynoias Na'.,ra Lea' 117069 6M WINSTON Uhrs 645200 20B Top Pwp 155,27 12M MORE l 160,27 12M MORE Mermo S MOKING TO BACCO C HEWING TO BACCO 156125 12M MORE Lphls t00 47OC'3 1Gr APp+e Smokmp Pouch 680124 1Gr Wor>, Mone 161125 12M MORE Menmo: Lights 100 470039 1/3Gr Appieamokl Pouch 660126 1Gr R.,! Gow 4' ! 0' 1 t D: AppWe Smokuq Large 136069 60.0 NOW Fater SoR 420018 1Gr C.rter Hali Pouch 1390E9 6M NOW Merma Sor a370'? 1D7 C.ner Nat UrQe CIGAR S 190124 12M NOW Son 100 43/0?0 1/20: C.rt.r Han Large 370064 6M WINCHESTER Gga,s 192062 6M NOW Menthoi Son 100 a39C, B 1Dx CGner Man Metl,um 370122 12M WINCHESTEq Gpa•s 137067 6M NOW Bo. (BOmm, s40016 1Gr Georpe Washmpton Pouch 14606E 6M NOw Bo• 100 443028 1/2Dt George Washrngton Large 445015 1Gr Madsrra Pouch 120171 12M SALEM a4503* 1/3Gr MatlaraPouch 122127 12M SALEM100s 453316 1Gr OutAavMFOnPouch 124,23 12M SALEMLghts 4 5<3,4 1Gr purAaven Larpe 1251?0 12M SALEM 4phts 1010 6 401018 1Gr Prince AIDen Pouch 1261?6 12M SALEMSi-rnLqhts/00s 405316 1Gr PnnceA4xnTrr t2912J 12M SALEM Unra 100s 417014 1D: Prtnce MDen Large 126U6E 6M SA:EM Ultra 4' 9C' C 1Dt Prrnce Alben MeC,urr Use fol Permanent O Temporary) Standing Order Changes `mum Prepaid Sh pment is 180 pounds Refer to Price List for Determining Product Shipping Weights ,#rices are subject to change without notice All orders are subject to acceptance at the offices of the Company. Wtnston-Salem, N.C and cond tions set forth tn our current price list or on the tnvo ce SIGNATURE OF PURCHASER RJRT FORM 3580 Rev. 9/84 MAIL TO WINSTON-SALEM Comm. No 035808 504e,2. ;z 1 00
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Exhibit D Detail Column Descriptions For Domestic Customer Sales Analysis Sheet Brand Description Brand Style Current-Month-Sales • Cases Last Year • Cases This Year • % Change Year-to-Date-Sales • Cases Last Year • Cases This Year • % Change Average-Week-Last-3-Months • Cases Last Year • Cases This Year Current-Month • * Rush Cases • % Standing • % Sales • % Extra Average Week-In-Current-Month • Average # Cases • Number of Standing Cases The name of the item. Largest size warehoused for the brand group. Total cases of the brand group sold during the corresponding report month last year. Total cases sold during the report month this year. Percent increase/decrease from last year to this year. Total cases sold from January last year through the corresponding report month last year. Total cases sold from January this year through the report month this year. Percent increase/decrease from last year to this year. An average week's sales using last year's report month and preceding two months as base period. (The number of weekdays In this three month period is divided into the sales for the period giving an average day's sales; the average day's sales is then multiplied by five to obtain the average week's sales.) An average week's sales using this year's report month and preceding two months as a base period. Number of cases sent rush delivery during the report month. Percentage of cases ordered through standing orders during the report month. Percentage of cases ordered through a sales representative during the report month. Percentage of cases ordered directly by a customer (not including stand- ing orders) during the report month. An average week's sales using the report month as base period. (The number of weekdays in the report month is divided into the sales giving an average day's sales; the average day's sales is then multiplied by five to obtain an average week's sales.) Number of cases shipped via standing orders during an average week in the report month.
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Fxhibit E DOMESTIC CUSTOMER SALES ANALYSIS 09/29 ACCT 00000000 R/D 000 ANYWHERE, USA PROCRAM NUMBER P3050754 PAGE 1373 Sold To: Jones & Sons, Inc. Ship To: Jones & Sons, Inc. 1019 N. Bridge Street 1019 N. Bridge Street P. 0. Box 810 P. 0. Box 810 Anywhere, USA 00000 Anywhere, USA 00000 Current-Month Sales Year-To-Date-Sales - Avg-Week-Last-3-Mos Current-Month Avg-Wk-Cur-Mo Brand Brand Cases Cases % Cases Cases 5, Cases Cases % *Rush % g> 5. Avg 0 0 S/0 Description Style Last-Yr This-Yr Chng Last-Yr This-Yr Chng Lst-Yr This-Yr Chng Cases S/0 Sls E/0 Cases Cases Camel Regular 12M 28 20 78.6- 190 153 19.5- 6 5 16.7- 3 85 15 0 5 4 Camel Filter 12M 9 9 0.0 89 72 19.1.- 3 2 33.3- 4 56 44 0 7 1 Camel Lights 12M 28 24 14.3- 212 216 1.9 6 5 16.7- 2 92 8 0 5 5 Camel Lt 100 17M 3 5 66.7 64 44 31.3- 1 1 0.0 0 100 0 0 1 1 Camel Lt H Pk 17M 0 6 100.0 0 44 100.0 0 1 100.0 1 83 17 0 1 1 Winston Box 12M 7 3 57.1- 29 23 20.7- 1 1 0.0 0 83 17 0 1 1 Winston 20 12M 109 112 2.8 819 785 4.2- 25 24 4.0- 31 72 24 4 25 18 Winston 100 12M 44 36 18.2- 329 268 18.5- 10 8 70.0- 9 75 25 0 8 6 Winston Lights 12M 47 112 )38.3 455 558 22.6 14 16 14.3 17 36 64 0 25 9 Winston Lt 100 12M 25 36 44.0 217 213 1.8- 6 7 16.7 16 56 44 0 8 5 Winston Ultra 12M 5 3 40.0- 69 26 62.3- 0 1 100.0 0 100 0 0 1 1 Winston Ult 100 12M 7 4 47.9- 97 44 54.6- 1 1 0.0 0 100 0 0 1 1 Salem 20 17M 45 32 28.9- 304 254 16.4- 9 8 11.1- 3 91 9 0 7 7 Salem 100 17M 20 19 5.0- 176 133 24.4- 5 4 20.0- 4 79 21 0 4 3 Salem Lts 100 17M 2? 54 145.5 188 192 2.1 6 7 16.7 3 31 69 0 12 4 Salem Lights 12M 39 29 75.6- 267 231 13.5- 8 7 12.5- 8 7? 28 0 7 5 Salem Ultra 17M 4 7 50.0- 23 25 8.7 1 1 0.0 2 0 100 0 0 0 Salem Ultra 100 12M 7 0 100.0- 57 45 71.1- 1 1 0.0 0 0 0 0 0 0 Sal SI Lt 100 17M 0 8 100.0 0 1l1 100.0 0 2 100.0 0 100 0 0 2 2 Doral Filter 12M 2 4 100.0 25 76 4.0 1 1 0.0 0 100 0 0 1 1 Doral Menth 12M 4 4 0.0 32 78 12.5- 1 1' 0.0 0 100 0 0 1 1 Vantage Ks Filt 12M 55 50 9.1- 382 362 5.2- 17 10 16.7- 11 78 22 0 11 9 Vantage 100 12M 77 21 4.5- 152 149 2.0- 5 4 20.0- 4 81 1Q 0 5 4 Vantage Menthol 17M 14 13 7.1- 110 99 10.0- 3 3 0.0 2 85 15 0 3 3 Vantage Mth 100 17M 0 17 100.0 0 17 100.0 0 1 100.0 4 0 1(x] 0 4 0 \'ant lll t.ra l.t s 17M 10 10 0.0 107 71 33.6- 2 7 0.0 5 50 50 V 7 1 Vant U1t Lt 100 1')M 17 10 16.7- 109 66 3Q.4- 3 2 33.3- 5 50 50 0 2 1 . Vant Mth 111 t Lt 17M 0 7 100.0 0 75 100.0 0 7 100.0 2 0 100 0 0 0 70 1 Z 2g-nOs
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saµ$z zi~a Exhibit E Page 2 Current-Month Sales Year-To-Date-Sales Avg-Neek-Last-3-Mos Current-Month Avg-Wk-Cur-Mo Brand Brand Cases Cases % Cases Cases % Cases Cases % iRush t % 1 Avg • r S/O Description Style Last-Yr This-Yr Chng Last-Yr This-Yr Chng Lst-Yr This-Yr Chng Cases S/0 Sis E/0 Ca ses Cases Vant Mth Ul 100 12M 0 4 100.0 0 27 100.0. 0 2 100.0 4 0 100 0 1 0 Now Filter Box 12M 1 1 0.0 10 3 70.0- 0 0 0.0 0 0 100 0 0 0 Now Filter sp 12M 4 2 50.0- 31 16 48.4- 1 0 100.0- 1 0 100 0 0 0 Now Menthol Sp 12M 4 2 50.0- 18 19 5.6 1 1 0.0 1 0 100 0 0 0 Now Flt 100 12M 5 5 0.0 26 29 11.5 1 1 0.0 0 100 0 0 1 1 Now Mth 100 12M 5 3 40.0- 26 22 15.4- 1 1 0.0 2 0 100 0 1 0 Now Flt 100 Box 12M 0 1 100.0 6 4 33.3- 0 0 0.0 0 0 100 0 0 0 More Filtrr 12M 8 5 37.5- 53 28 47.2- 2 1 50.0- 1 80 20 0 1 1 More Fit Lt 100 12M 18 4 77.8- 48 44 8.3- 4 1 75.0- 0 100 0 0 1 1 Fbre Menthol 12M 6 4 33.3- 43 28 34.9- 1 1 0.0 0 100 0 0 1 1 More Mth Lt 100 12M 16 4 75.0- 45 41 8.9- 3 1 66.7- 0_ 100 0 0 1 1 ** TOTAL CIGARETTES ** 635 680 7.1 4,808 4,541 5.6- 144 137 4.9- 145 63 36 1 151 99 P A Pkt Tin 1GR 3 2 33.3- 29 17 41.4- 1 0 100.0- 2 0 100 0 0 0 P A Pouch 1DZ 4 3 25.0 16 20 25.0 1 1 0.0 3 0 100 0 1 0 P A Medium 1DZ 1 0 100.0- 6 5 16.7- 0 0 0.0 0 0 0 0 0 0 P A Large 1DZ 1 1 0.0 18 8 55.6- 1 0 100.0- 1 0 100 0 0 0 C H Pouch 1CR 2 2 0.0 27 26 3.7- 1 1 0.0 2 0 100 0 0 0 C H Medium 1CR 0 1 100.0 4 5 25.0 0 0 0.0 1 0 100 0 0 0 C H Large 1DZ 1 2 100.0 20 6 70.0- 1 0 100.0- 1 0 100 0 0 0 Madiera Pch 1CR 2 0 100.0- 11 12 9.1 0 0 0.0 0 0 0 0 0 0 Apple Smo Pch 1CR 3 1 66.7- 14 15 7.1 0 0 0.0 1 0 100 0 0 0
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F:xhiDit E Pap,e 3 DOMF.STIC CUSTOMER SA1.ES ANALYSTS 09/29 ACCT A0000000 R/D 000 ANYWHERE, USA PROCRAM NUMBER P3050754 PACE 1373 Sold To: Jones & Sons, Inc. 1019 N. Bridge Street Ship To: Jones & Sons, Inc. 1019 N. Bridge Street P B 810 0 P. 0. Box 810 Anywhere, USA 00000 . . ox Anywhere, USA 00000 Current-Month Sates Year-To-Date-Sales Avg-Week-Last-3-Mos Current-Month Avg-Wk-Cur-Mo Brand Brand Cases Cases % Cases Cases % Cases Cases t flRush % % % Avg fi# S/0 Description Style Last-Yr This-Yr Chng Last-Yr This-Yr Chng Lst-Yr This-Yr Chng Cases S/0 S1s E/0 Ca ses Cases Roy Cft Hum Lge 1DZ 5 7 40.0 9 16 77.8 1 1 0.0 7 0 100 0 2 0 Ceo Wash Pouch 1CR 1 0 100.0- 3 2 33.3- 0 0 0.0 0 0 0 0 0 0 Ceo Wash Large 1-2DZ 0 1 100.0 5 6 20.0 0 0 0.0 1 0 100 0 0 0 0 Adv Large 1CR 1 0 100.0- 3 3 0.0 0 0 0.0 0 0 0 0 0 0 Top Hum Tins IDZ 1 7 100.0 11 10 9.1- 0 0 0.0 2 0 50 50 0 0 Top Smo Pkt ICR 1 0 100.0- 2 2 0.0 0 0 0.0 0 0 0 0 0 0 ** TOTAL SMOKINC ** 27 23 14.8- 226 1390 15.9- 6 4 33.3- 22 0 95 5 3 0 Apple 1Tiick 10 6 6 0.0 24 27 12.5 1 1 0.0 5 0 100 0 1 0 Apple Thin 70 2 7 0.0 8 8 0.0 0 0 0.0 1 0 100 0 0 0 Mule 20 1 0 100.0- 4 6 50.0 0 0 0.0 0 0 0 0 0 0 R J Gold 17 18 8 55.6- 240 67 72.1- 5 2 60.0- 3 63 38 0 7 1 Cup 20 0 0 0.0 0 1 100.0 0 0 0.0 0 0 0 0 0 0 Days Work 20 1 6 500.0 53 44 17.0- 2 1 50.0- 5 0 50 50 1 0 Reynolds S C 10 0 0 0.0 2 1 50.0- 0 0 0.0 0 0 0 0 0 0 Reynolds N L 6 3 3 0.0 10 18 80.0 0 1 100.0 3 0 100 0 1 0 Work Horse 1CR 55 34 38.2- 372 308 17.2- 11 9 18.2- 0 100 0 0 8 8 ** TOTAL PLUC/CHEW ** 86 59 31.4- 713 480 37.7- 19 14 26.3- 17 71 25 4 13 9 .-f,p t-r Z6fi05 0
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50~8~ 21p5 Exhibit E Page 4 Current-Month Sales Year-To-Date-Sales Avg-Week-Last-3-Mos Current-Month Avg-Wk-Cur-Mo brand Brand Cases Cases % Cases Cases % Cases Cases % #Rush % % 'k Avg s! S/0 - Description Style Last-Yr This-Yr Chng Last-Yr This-Yr Chng Lst-Yr This-Yr Chng Cases S/0 Sis E/O Cases Cases Books OCB Paper 480 1 1 0.0 6 2 66.7- 0 0 0.0 1 0 100 0 0 0 Books TOB Paper 480 9 0 100.0- 90 32 64.4- 2 0 100.0- 0 0 0 0 0 0 ** TOTAL PAPERS ** 10 1 90.0- 96 34 64.6- 2 0 100.0- 1 0 100 0 0 0 Winchester 12M 2 1 50.0- 9 10 11.1 0 0 0.0 1 0 100 0 0 0 ** TOTAL CIGARS ** 2 1 50.0- 9 10 11.1 0 0 0.0 1 0 100 0 0 0 ** TOTAL ALL BRANDS ** 760 764 0.5 5,852 5,255 10.2- 171 155 9.4- 186 167 108
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PRODUCT RETURNED FROM: ACCOUNT NUMBER NAME STREET CITY/ST/ZIP DATE nUn RETURNED GOODS AUTHORIZATION (See Instructions on Back) Packing Slip *0 0 Q1_ P4y 0 3 l CIGARETTES (20'S) KINGS & REGULARS 100 & 120mm MACDONALD TOTAL WINCHESTER (LITTLE CIGARS) S TH OTAL PACKS ~I- f Z3 SMOKING TOBACCOS Oty. Descri tion PLUG TOBACCOS Oty. Description APPLE SMOKING (Pouch) APPLE SUN CURED THIN APPLE SMOKING (Lg. Humidor) APPLE SUN CURED THICK CARTER HALL (Pouch) BROWNS MULE FIBER BOX CARTER HALL (Med. Humidor) BROWNS MULE CARTER HALL (Lg. Humidor) CUP GEORGE WASHINGTON (Pouch) DAY'S WORK GEORGE WASHINGTON (Lg. Humidor) REYNOLDS' NATURAL LEAF MADEIRA (Pouch) REYNOLDS' SUN CURED OUR ADVERTISER (Lg. Bag) TOP PLUG PRINCE ALBERT (Pocket Tin) R. J. GOLD PRINCE ALBERT (Pouch) PRINCE ALBERT (Med. Humidor) PRINCE ALBERT (Lg. Humidor) ROYAL COMFORT (Pouch) ROYAL COMFORT (Lg. Humidor) LOOSE LEAF CHEWING TOBACCO TOP SMOKING (Pouch) Qt . Descri tion TOP SMOKING (Humidor) WORK HORSE (Pouch) TOTAL SMOKING, PLUG, CHEWING Location Pk Size Stat. stamp City stamp County Stamp No Stamp TOTAL (ATTACH ADDITION AL PAG ES IF REQUIRED) BILL OF LADING INFORMATION CARRIER NAME CASES SHIPPED DATE SHIPPED REIMBURSEMENT INSTRUCTIONS RJR HANDLING _ NO _YES ADVANCE REIMBURSEMENT REQUESTED _ NO _ YES TAX REIMBURSEMENT REQUESTED -NO-YES Direct Account Signature Approval RJR Representetive Div. No. Pk Locetion Size Sta• stamp City Stamp County stamp No Stemp .. 0 OA PLACE INSIDE CASE N0.1
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RETURN AUTHORIZATION INSTRUCTIONS GENERAL 1. Prepare only one Return Goods Authorization form for each separate shipment. Do not fill out separate forms for cigarettes and smoking and plug contained in the same shipment. 2. RJR will reimburse for outdated product based on the price 1n effect on the day the return was shipped. Doral brands will be reimbursed based on federal excise tax only. 3. Goods returned to Winston-Salem, N.C. are subject to inspection by the U. S. Treasury Department (Bureau of Alcohol, Tobacco and Firearms); therefore, the count made in Winston-Sa1em. N.C. on the returned merchandise will be the final count. 4. Please note Return Goods Authorization form now requires that cigarettes be reported in packages only; small styles of smoking tobacco in packages only; and chewing tobacco in cuts only. TAX STAMP SUMMARY 1. Location refers to any state, city or county stamp on your product being returned. The totals of state stamps and no stamps listed must equal your total packs and total little cigars. 2. List all tax information in the cigarettes tax stamp summary and Winchester (little ci gars) tax stamp summary portion of the form. Do not fill out individual forms for multiple state taxes. If shipment contains more locations than form allows attach an additional sheet listing remaining tax information. Example: 1000 pack return with state, city, county and no stamps. 00 CIOA/1ETTE TAX tTAK M QlMNA11Y TOIIL (ATTACM ADDITIONAI ~AGEE li REDUIREO) DISTRIBUTION OF FORMS 1. A. Mai1 white copy together with the Bill of Lading to: R. J. Reynolds Tobacco Company Returned Goods Accounting P. 0. Box 2959 Winston-Salem, N.C. 27102 B. The pink copy is to be retained by direct account. G. The green copy is to be sent to RJR Division Office. D. The yellow copy is to be placed inside of case #1. SHIPPING INSTRUCTIONS 1. Use our pressure sensitive address label form #3871 on all cases being returned. This label 1s available from your RJR sales representative. Number all cases for example; 1 of 4, 2 of 4, etc. Please show packing slip number on all labels. 2. Be sure you place the yellow copy of the Return Goods Authorization form on the inslde of case #1. 3. Place smoking a chewing tobacco together in a separate case. DO NOT TAPE PACKS OR CARTONS TOGETHER. 4. TO: R. J. REYNOLDS TOBACCO C0. PRODUCT RECOVERY OPERATIONS, BLDG. 2-2 WHITAKER PARK COMPLEX WINSTON-SALEM, N.C. 27105 Write "UNSALEABLE CIGARETTES-RETURN TO MANUFACTURER" a packing slip # across face of B/L. 5. DO NOT SHIP PREPAID OR C.O.D. 6. poss e accumu a e ve ) cases or more before returning to Winston-Salem, N.C. 7. Please type or print on carriers Bill of Lading "Forward all freight charges to R. J. Reynolds Tobacco Co., Accounts Payable Dept., P. 0. Box 2955, Winston-Salem, N.C. 27102". 8. Please enter carrier that picks up the shipment from your location. LwMbn .r ais~ Iw.,. sIMep C+ty staisP carnw >ttanip No ~unp LLINO S 2 ILLINOIS 25 400 CHICAGO CITY 20 0 COOK COUN 20 CHICAGO CITY 25 00 COOK COUNTY 25 400 k COMPLIANCE WITH INSTRUCTIONS AND COMPLETION OF ALL APPLICABLE AREAS OF THE FORM WILL ENABLE
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DA EXHIBIT G DIRECT ACCOUNT/GROCERY WHOLESALER PRODUCT AVAILABILITY 0 Check/Rotate Stock Ensure full rotation by code dates monthly. Handle damaged merchandise 0 i t ib i s D r ut on Gain maintain Seg. I, II, & III Brands Follow .2 guidelines as needed 0 I t nven ory Levels Correct OOS/LS, emphasize long term solution is S/O adjust- ment Assure proper inventory mgmt/ utilize DA reports Increase inven- tory on Work Plan Brands Sell volume building programs when available, ie, BIGIF's, incen- tive programs MERCHANDISING DISPLAY/ ADVERTISING COVERAGE ADMIN/ COMMUNICATION SELLING PRES. SKILLS ° Merchandisin ° Displays ° Minimum of ° Maintain ° Utilize PSS o Product Monthly Proper Ski ls - Inform Coverage Reporting - Inform accoun t account of - Capitalize of retail BFM rationale, proportionate loading. Retail Work Plans, both temporary & permanent 0 POS/PDI ° Major accounts weekly ° Identify/ 0 Maintain proper records, ie., Direct Cus- tomer Sales Summaries, on volume opportuni- ties ° Merchandising Place Recommend frequency Doral Report Equipment selected changes to Inform accoun of merchandis ing placement standards by retail classi t - - pieces as deemed necessary Mgmt. as needed. fication Ensure Merch. Presentations are made, i.e , Doral Savings Center 901Z Z8'fi05 .
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50q-6 2 2109 MILITARY ACCOUNTS Product Display/ Administration/ Selling Pres. Availability Merchandisin& Advertising Coverage Communication Skills ' Check/Rotate ' Merchandising of ' Displays ' Minimum of Monthly ' Maintain Proper ' Utilize PSS Stock Product - Sell mass Coverage Reporting Skills - Ensure rota- - Utilize BFM where . Large volume accounts ' displays, Maintain proper ' Capitalize tatiort by possible in con- premium weekl . records, i.e., on all code dates junction with items, and . Identify/recommend direct customer volume monthly. Military Shelf B1G1F. frequency changes sales summaries, opportun- Handle dam- Display Plans. - Utilize both to management as purchase/trans- ities. aged merchan- ' Merchandising permanent needed. fers to track dise. Equipment and tem. volume and 0 Distribution - Utilize 15 and pkg. opportunities. - Gain/maintain 20 case Com- Segment I, missary fixtures II, and III where possible. brands. - Maximize brand - .2 brands seek load on store- own level. owned fixtures. 0 displays in Exchanges where autho- rized. - Utilize new B1C1F Dump Inventory lev- - Utilize 10 case Display Unit els. display unit where avail- Correct OOS/ for mass dis- LS conditions. plays. ' able. POS/PDI Assure proper inventory man- agement. Increase in- ventory on promotional brands. Sell volume building pro- grams as scheduled; mass displays, premium items, B1G1F. Fully utilize - Place pro- motional P-O-S on all promotions. - Use calendars and clocks where possi- ble. Utilize se- lect pieces in service clubs, NCO, Officers Clubs and 0 bowling VPR's to main- tain inv./dist. alleys. Special Note: The above applies to commissaries and volume exchanges. For all other outlets, refer to retail grid by volume.
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VENDING I4CCOUNTS 0 U U Q (9 0 Z W . 5 0 482 z110
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PROGRAM STOP li 1 VENDING The material in this section supplements and expands upon the points covered in the audio-visual portion of the program. It is intended for those Sales Representa- tives who have independent vendors within their assign- ment as well as those who deal primarily with vending companies. The topics in this section are: 0 0 0 0 0 0 0 0 0 0 Introduction to Vending Product Availability Merchandising Display/Advertising Assignment Coverage Administration/Communication Selling/Presentation Skills Call Procedures Advantage of Tru-Check Over DataVend Exhibits A. Vending Survey B. Independent Vendor Route Card C. Dead Column Analysis D. Vending Category Analysis E. Multiple Row Analysis F. Tru-Check Vending Route Card G. RJR Service Analysis H. Placement Allowance Analysis
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INTRODUCTION TO VENDING Vending, as with all other areas of R. J. Reynolds Tobacco, is concerned with maximizing distribution and sales of our cigarette brands. The distinction with vending is that it involves approximately 600,000 outlets that use vending machines as opposed to selling cigarettes "over the counter." This creates a different environment within which you have to work. Each machine has a limited number of columns and a limited capacity in each column. In other words, each vend- ing machine is a miniature market, and each of these fea- tures (columns and capacity) must be considered when making a sales call on a vendor. Vending is big business. Cigarette vending today represents approximately 7 million cases sold annually. For RJR, vending represents approxi- mately 8% of our total cigarette sales and over 21% of all of_the single__pack_sales. Before__detailing_RJR's_vending program, keep in mind the following definitions: Vendor Companies or individuals operate vending machines in various outlets or businesses other than their own business estab- lishments. The vendor fills and services the machines. Normally, routemen are hired to fill and service the machines. The vendor owner or manager determines brand placement. In return for allowing the vendor space in his outlet, the vendor pays the outlet a commission -- usually a fixed amount per package sold. Vendors may buy direct from RJR (direct vendor) or they may buy locally from a direct account. The following are common types of vendors: 1. independent Vendor (IV) - An individual or outlet that owns his own machine to vend cigarettes in his business. He purchases the license and the cigarettes and decides what brands to sell. 2. Vending Company - Owns many vending machines and pays the business proprietor a commission on sales for allowing the machine to be placed in the store or business. 1 V-2
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We will use the term vendor in the following section to refer to both vendors and IV's, unless specified otherwise. PRODUCT AVAILABILITY Product Availability is maintaining a complete stock of RJR brands in all accounts within your assignment, with the product to be properly rotated and located in positions which maximize sales potential. In vending, many of the procedures are the same as those for direct and retail accounts, but with special consid- erations. Three important areas to consider are: l. Machine Capacity 2. Inventory Management 3. Standing Orders Machine Capacity - This is one area unique to vending. The overall capacity or number of brands available is much more limited than in retail calls. However, as in retail, the machine space must be devoted to brands that sell, as was discussed under the category selling concept. The capacity of each column must be considered to allow sufficient availability of product based on sales and the number of times a machine is filled during a week. If capacity is not considered, out-of-stocks will occur, costing the vendor and RJR sales of our brands. Total machine knowledge is essential. (Refer to the Vending Manual for more detailed information concerning machines.) Inventory Management - This, as with direct accounts and retail, is simply counting by brand the number of car- tons on hand and by recounting in one week, determining the number of cartons sold. Once the sales are known, a "build-to" figure can be established upon which to base orders. This will prevent out-of-stocks at the vendor's warehouse. Similarly, proper inventory control must be used on the route truck to ensure that the routeman has sufficient product available to fill the machines adeqiiately.
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Standing Orders - If the vendor buys direct from RJR, the need for proper standing orders to prevent out-of-stocks is identical to that of all direct accounts as previously discussed. R. J. Reynolds offers Vendors placement payments for merchandising different styles of R J R brands. Consult with your Manager for the most current R J R Display Plan for Vending Machine Operators available for your area. In addition to Display Plans for Vending Machine Operators, five basic presentations are used to achieve the desired levels of product availability: o Dead Column Selling o Category Selling o Multiple Row Selling o Service Selling o Allowance Selling Dead Column Selling refers to the technique of replacing slow selling items in the vendor's machines with RJR brands that will increase his sales. One of the simplest methods of determining sales is to check the machine. In addition, most vendors keep records of brand sales, and a check of those sales figures will reveal slow selling brands. By familiarizing yourself with Share of Market information you will be able to determine which RJR brand should outsell the brand currently in the machine. The "dead column" approach does not mean the brand irn the machine is not selling at all, but rather that potential for sales increases exists by replacing the brand with an RJR brand. For example, the machine may currently vend CHESTERFIELD. A comparison of Share of Market data may indicate greater sales potential for SALEt•i LIGHTS. By selling the vendor on replacing CHESTERFIELD with SALEM LIGHTS, you will increase sales for both the vendor and RJR. Most vending machines, whether owned by a vending com- pany or independent vendor, have at least one "dead column" which affords you the opportunity to increase distribution for RJR and generate extra sales for the vendor. We will discuss the other types of sell_na_ later in the program. V-4
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MERCHANDISING Merchandising is the display of RJR brands at the point of sale to obtain maximum product exposure to the consumer. This is the second accountability in vending as in all other outlets. Since the vending machine is the final point-of-purchase, the procedure for merchandising a vending machine concentrates on two basic areas: o Brand Location o Machine Location Brand location refers to the actual product positioning within the machine. There may be other more important considerations such as column capacity; however, you should be aware of the importance of product positioning within the machine. You should attempt to obtain the most visible columns within the machine. Machine location is another important consideration in merchandising. The location of a machine is as important to vending sales as location of carton and package merchandisers is important to self-service outlets. The better the visibility and exposure, the better chance that sales will be made. DISPLAY/ADVERTISING Display/Advertising is ensuring the visibility and accessibility of RJR products, as well as the placement of point-of-sale material which will effectively convey our selling message to the consumer and gain brand exposure. You are responsible for the placement of advertising in vending machine outlets, whether you are working with a vending company or an independent vendor. When working with national vendors, you must obtain approval from vending headquarters for the placement of advertising pieces. Four pieces of advertising available for vending outlets are: pricing dials, vending toppers, price post-ons, and refurbishing panels.
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Many times you have the opportunity to give a retail outlet, such as a bar or restaurant that has a vending machine, nominal gifts such as ashtrays, change trays, etc. that carry a brand logo. This will create brand awareness and also build relations with vending accounts. Normal point-of-sale pieces such as decals, shelf-strips and other material can effectively be used in vending outlets, particularly IV locations to gain consumer attention and increase brand awareness. ASSIGNMENT COVERAGE Assignment Coverage is the making of a sales call on all of the accounts selling cigarettes within your assignment as dictated by classification, frequency, needs, and potential. Frequency is determined by the number of machines a vendor has on the street. Your Division Management will help you determine the frequency needed for vendors assigned to you. ADMINISTRATION/COMMUNICATION Administration/Communication is the proper organization and handling of the various forms, reports, and corre- spondence used by a Sales Representative. In vending, this primarily deals with placement reports and verifying brand placements. (See Exhibit A) As with all our contracts, you should constantly monitor com- pliance to ensure adherence to the agreement. The zfAe pejq9eAt•vefder•RcatE Card is desigsed for your independent vendor cdlls. You can report brands placed, the brands currently carried in the machine, and other machine information. (See Exhibit B) The route card has four copies. The first is for mailing to the Division Office, the second is for your files, the third is to be attached to your Weekly Expense and Payroll Report, and the fourth copy is for the vendor. ' V-6
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The procedure of verifying brand placements deals with the placement reports submitted each quarter to the cigarette manufacturers. In order to ensure that the reporting is accurate before making the allowance payments to the vendors, one of several methods of checking a vendor's list must be used before payment is authorized. Your Division Management will discuss these various methods with you. SELLING/PRESENTATION SKILLS Selling/Presentation Skills is the effective use of the Six Steps of Systematic Selling, PSS, and RJR tools and aids to accomplish successful sales presentations. CALL PROCEDURES FOR CALLING ON AN INDEPENDENT VENDOR This section will present a sample call procedure for an independent vendor. As with other regular retail calls, you must first introduce yourself to the Store Owner, Manager, or someone in authority. Next, you will need to check the brands in the machine. This can be done by checking the brand labels from the outside, but the best method is to open the machine and make a personal inspection. The Manager can open the machine for you or give you the key to make your check. This product check helps you accomplish two things. First, you can check for product freshness of RJR brands. Second, you can check product freshness of competitive brands to determine how they are selling. This will give you an idea of the competition's Share of Market, and help you locate any "dead column" or low selling items.
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"Dead columns" represent ideal opportunities to replace the item or items with RJR brands. A competitive brand may be selling only slightly, and that, too, can be used to your advantage. Share of Market figures will help you show the Store Manager how RJR brands could outsell the competitive brand currently in the machine, and that would mean more sales for the store. Another factor you will want to observe is "Share of Category." Vending uses thirteen distinct categories, and having each category represented in the machine increases the chances of satisfying consumer demand. Non-filter Low Tar Regular F lavor 85mm Regular Flavor 85mm Low Tar Menthol F lavor 85mm Menthol Flavor 85mm Low Tar Regular F lavor 100mm Regular Flavor 100mm Low Tar Menthol F lavor 100mm Menthol Flavor 100mm Ultra Low Tar Reg ular Flavor 85mm Ultra Low Tar Menthol Flavor 85mm Ultra Low Tar Regular Flavor 100mm Ultra Low Tar Menthol Flavor 100mm If you find a category is not represented in the machine, you have an opportunity to sell. For example, if you are attempt- ing to place VANTAGE 100s, you could approach the Manager with the fact that he carries no other high filtration 100m brand and support your presentation by using "Share of Market" figures. Another incentive for vendors to place RJR brands is the Brand Payment Allowance. It allows the vendor to make extra money by carrying RJR products and is a significant factor in securing additional placements with the Manager. Payment for the new brand being added is made quarterly. However, you can pay the Manager for the other RJR brands he already carries. After looking at the brands and determining your sales plan based on the areas of "dead columns," Share of Market, Share of Category, and Brand Payment Allowances, you must sell the Manager on placing your brand or brands. At this same time, obtain his permission to place the point-of-sale advertising pieces you feel would be effective. Once the sale is made, you must collect for the cigarettes. If you sell two cartons of VANTAGE 100s, you may complete a cash order ticket, or "bill through," or even exchange them for out-of-date products. 1 V-8
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You should also complete the Independent Vendor Route Card (Exhibit B) indicating the distribution of RJR brands in the machine. Newly placed brands should be indicated by checking the appropriate box. RJR brands removed, but paid for, would be indicated by placing an X in the appropriate box. You should also indicate the amount of money paid to the Manager for the appropriate RJR brands, and the appropriate Vending Display Allowances (i.e., Regular, Bonus, Annual, etc.) Both you and the Manager sign the form indicating pay- ment has been made. The first copy of the form is then mailed to the Division Office to maintain a record of brand distribution. You will retain the second copy for your records. The third copy will be submitted with your Weekly Expense and Payroll Report if payment is made in cash. The fourth copy is left with the vendor. Next, change the machine labels to correspond with the VANTAGE 100s being added, as well as any other RJR labels needing replacing. These cigarettes must be placed in the machine in the appropriate column. Place the advertising pieces agreed upon earlier. For this account, a pricing dial and a VANTAGE window paster have been selected. Finally, as with all retail calls, you must complete your Compumark Report, indicating your activities in the call. Then you're ready to go to your next call. The proce- dure we have discussed is only a sample of some of the activities you will need to perform when calling on an independent vendor. You will be the expert in deter- mining the needs of your vending accounts and must tailor your call procedure accordingly. STOP Go to Workbook Exercise #1
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PROGRAM STOP #2 HANDLING A VENDING COMPANY ACCOUNT The following are common types of vending companies: 1. Street Vendor (Music and Game Operator) - Specializes in pinball machines and juke boxes as well as cigarettes, or just cigarettes only. 2. Full-line Vendor - Vends different types of consumer products such as coffee, candy, soda, and cigarettes. Types of selling approaches are: o Dead Column Selling o Category Selling o Multiple Row Selling o Service Selling o Allowance Selling DEAD COLUMN SELLING involves replacing a slow-selling brand with an RJR brand to increase overall sales. (See Exhibit C) CATEGORY SELLING is the method whereby brands are placed in distribution to satisfy the largest possible percentage of smoker's brand preference. By studying demographics (i.e., age, sex, race, education, and income) it has been found that smokers' preferences can be analyzed. By knowing what types of customers are buying from a particular machine, it is possible to place brands in the machine to meet the needs of a wide variety of smokers. By placing the best selling brands from each category, you can assist the vendor in maximizing sales by satisfying most of his customers. Learn the RJR brands that represent each category, and you'll be able to increase RJR distribution through the use of this vending category analysis. (See Exhibit D) V-10
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MULTIPLE ROW SELLING, the third distribution approach, attempts to eliminate the unnecessary double and triple rows of the same brand in the machine. Not only are the double columns usually unnecessary, they prevent other brands from being placed that could increase the vendor's sales. The multiple rows offer you the opportunity to increase distribution by placing an additional RJR brand in the machine by removing one of the double columns, thereby increasing potential sales with the new brand and not decreasing sales of the brand previously using two or more columns. Whether or not the double column is warranted will depend on the brand's total sales, the number of packages that can be placed in a column, and how frequently the machine is filled. It is necessary to determine this information in order to take advantage of the opportunity to increase distribution of RJR brands by eliminating the double rows. (See Exhibit E) SERVICE SELLING involves the RIDE WITH program, and TRU- CHECK, both designed to assist the vendor and both provided free by RJR. TRU-CHECK is a computer company that specializes in providing computerized placement reports to all of the cigarette manufacturers. This service is not available to independent vendors. First we will look at why placement reports are needed and then how Tru-Check can assist in providing them. Each manufacturer has a program that pays all vendors an allowance for each brand placed. For the vendors to collect these allowances, they must submit a list of all placements in each machine to the manufacturers. The different companies then pay for their particular brands as will be discussed under Vending Display contracts.
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Tru-Check's main service is eliminating the paperwork required of the vendor in submitting quarterly placement reports. Tru-Check prepares these quarterly reports by computer and automatically sends them to each cigarette company. RJR's relationship to Tru-Check is one of a spon- sor. RJR provides this service to a vendor and agrees to pay the vendor's cost of joining Tru-Check. The vendor's quarterly reports are handled at no cost and sent to all six cigarette manufacturers, and RJR secures a specified number of brand placements for distribution. This service is our way of maintaining control, and thereby distribution, in the vendor's machines. (For additional information on Tru- Check, refer to the Tru-Check Profile Handbook and Exhibit F. RIDE-WITH programs are designed to fully implement RJR's vending program. Our Ride-With program is the physical involvement of an RJR representative with the vendor route- men or supervisors to update brand selection; clean machines, if needed; replace labels, if needed; and assist in filling out Tru-Check forms for changes made or to initiate the Tru-Check Service. The service performed depends on the needs of the vendor, but the program is a working service and becomes a positive feature of the vending presentation and benefits the vendor in many areas. This Ride-With is performed by securing the vendor's approval to ride on the vending truck and actually work alongside the routeman until all machines have been reworked and all necessary changes or cleaning accomplished. ALLOWANCE SELLING is the fifth distribution approach in vending. This approach involves the selling of our Display Plan or our Vending Bonus Offer payments, or a combination of both. (See Exhibit H) An opportunity for vendors to receive extra payment and for you to increase distribution occurs when we have a Bonus Vending Offer. The Bonus Offer provides for payment to a vendor for placing a specified RJR brand in his machines. N V-12
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These are not continuing offers, but are paid to the vendor one time only after placing the brand. The vendor will be required to submit reports of brand placement prior to receiving the bonus money. These types of Vending Bonus Offers are periodically made to assist you in securing placement of the brand(s) in the offer. As you can see, the vendor can earn substantial money for each machine by carrying RJR brands. However, each of the cigarette manufacturers offers the vendor a placement allowance. Each of the manufacturer's requirements and payments vary and will be competing directly with you for space in the vendor's machine. STOP Go to Workbook Exercise #2
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PROGRAM STOP #3 SALES PRESENTATION A sales presentation involves precall research and preparation in order to convince the decision-maker in the vending company of the benefits of placing and maintaining RJR brands in the company's machines, i.e., o Increase Sales o Satisfy Customers o Receive Payments Careful Preparation - Gathering detailed information about the individual vending company, tailoring your presentation to specific needs, and using the best selling approaches for a particular company - are essential to a successful presentation. STOP Go to Workbook Exercise #3 1 V-14
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PROGRAM STOP #4 ADVANTAGES OF TRU-CHECK OVER DATAVEND Philip Morris offers a program similar to Tru-Check, but with limitations not specified by R. J. Reynolds, and with many disadvantages for the vendor. A complete comparison of these programs is contained in your Tru-Check Profile Hand- book. Sponsorship Requirements DataVend limits the brands to be placed to three and speci- fies which brands these are. Tru-Check specifies only three brands to be placed, but they are to be chosen by the vendor. Both programs will pay for up to 10% of total locations for nonqualifying machines. Special Features Run Dates - Tru-Check allows the vendor ample time to receive all placements. Location Number - Tru-Check allows greater flexibility in sequencing the vendor's reports. Years Serving Vendors - Tru-Check has 9 years more experi- ence. Reports and Forms Location Master List - DataVend does not provide this ser- vice. Tru-Check facilitates verification and changes. Summary by Brand Type - DataVend does not provide this ser- vice. Tru-Check allows the vendor to better satisfy con- sumer demand. Placement Payment Detail - Tru-Check simplifies the report and satisfies the vendor's concern about confidential information. Placement Payment Summaries - Both programs offer a summary of brands payable, with the amount due the vendor, as required by manufacturers. Location Analysis Report - Recaps all ofthe pertinent information about a vendor's locations in an easy-to-use report format. Accrual Report - DataVend does not provide this service. Tru-Check makes it easy to verify payments.
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Location Data Card - Tru-Check makes it easy for the vendor to submit changes. Summary by Manufacturer - Tru-Check provides no unnecessary information. Machine Inventory Form/Ability to Update - Both programs allow updates, but Tru-Check simplifies the procedure. Mass Change Form/Ability to Update - Tru-Check facilitates changes to brands, pulls, and names and addresses. Optional Tru-Check Reports Location Survey Data Report - Tru-Check confines the data to location and identifies locations by name and address. Location Survey Data Summary - Tru-Check presents location counts for all Location Survey Data. Brand Profitability Analysis - DataVend does not offer this service. Tru-Check provides a detailed analysis of each brand's profit contribution. Non-Cigarette Machine Survey - Tru-Check provides an easy-to-read report confined to only this information. Master Brand Listing - DataVend provides information for a quick evaluation of brands and locations, but repeats data available on other reports. Tru-Check does not provide this report. Corporate Reporting Corporate Accrual Report - Tru-Check provides data on placement payments, average placement payments, and the total. Share of Market Report - DataVend does not provide this service. Tru-Check shows detailed information on a brand-by-brand basis for each brand stocked. Division Cigarette Summary - DataVend does not provide this service. Tru-Check allows management to track and improve sales and placement payment revenues. STOP Go to Workbook Exercise #i4 ' V-16
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EXHIBIT A VENDING SURVEY o Purpose - to record brands, by manufacturer, which are carried by a particular machine o Responsibility - Sales Representative o Frequency - periodically, to use as selling tool when the vendor is not carrying best-selling brands o Distribution - left with vendor after presentation o How to Fill It Out Line 1 - Enter the date Line 2 - Enter the vendor's name and the location of the machine Line 3 - Enter the address of the vendor and the type of machine Majority of Form - Indicate with a check mark or an "X" which brands are represented in the machine, and total brands by manufacturer Bottom of Form - Record any comments about the condition of the machine, its location (accessi- bility and lighting), freshness of competitive brands, etc.
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RJF.T Form 3tjJ - Rev. 11/84 Commodity No. 031336 VENDING SURVEY Date 5048~ 2129 Vendor's Name Location Address Type Machine BRIGHT Carlton AI ine BRIGHT 100's C.rlton 700's B & H 1 's BarcliY l00' CAMEL Filt.rs Carlton Menthol 8 & H Menthol 100' Barcla Menthol 100's CAMEL Frlters Hard Pack Carlton 100's Menthol B & H 100's Li ts Filter Barcle Kin CAMEL Lights Luck Strike B & H 100's Li ts Menthol Barcl• Menthol Kin CAMEL Lits 100's Lucky Strike Filtws B & H DNuKe Ultra Lights Belar CAMEL Li ts Hard Pack Pali Mall Filter Kin B & H Deluxe Ultra Li ts Manthol B.lair 100's CAMEL Ra lar P.II Ma11 100's Marlboro Box Kool CENTURY Filters P.I/ Mall Menthol 100's Marlboro 100's Kool Box CENTURY Filters 100's Pall Mail Lr ts 100's Marlboro Lights Kool 100's CENTURY Li ts Pall Me/l 85mm (Mild) Filtar Marlboro Lights Box Kool Milds CENTURY Li ts 100's Pall Mall (Red Non-Filter Marlboro Lights 100's Kool Milds 100's DORAL Filters Silva Thlns Marlboro Menthol Kool Regular DORAL Menthol Silva Thins Menthol Marlboro Soft Kool Super Lights (100's) DORAL Filter 100's Tare ton 100's Merit Kool Super Lights (Kin ) DORAL Menthol 100's Tar ton Filter Merit 100's Filter Kool Ultra 100's MORE Tar ton Li ts Merit Menthol Kool Ultra Kin n I Tar ton Lon Li ts Merit 100's Menthol Ralei 700's MORE Li ts 100 (F Merit Ultra Raleigh Filter MORE Lights 100 (M OTA AMER1 A Merit Ultra Menthol R.lei Li ts NOW Filter 100's Multifilter Ralei Plain NOW Menthol 100's Parliament Vicero NOW Soft Filter Parliament 100's Vicero 100's NOW Soft Menthol Players Filters Vicero Rich Li n 100's SALEM Golden Li ts PlaYers Filters 100's Viceroy Rich Lights (King) SALEM 100's Golden i ts 1 's Pla ers Mentho SALEM Lights Golden Lights Menthol Players Menthol 100's SALEM Li ts 100's Golden Li ts Menthol 100's Vir ginia Slims SALEM Slim Lights Kent Virginia Slims Lights SALEM Ultra Lights Kent 100's Virginia Slims Menthol SALEM Ultra Lights 100's Kent I/1 Virginia Slims Lights Menthol STERLING Kent III 100's STERLING Menthol Kent Menthol 100's TOTAL PHILIP MORRIS VANTAGE Newport VANTAGE Menthol Newport 100's VANTAGE 1 Newport FUter Box Chesterfield Kin VANTAGE 100's Menthol Newport Lights Chesterfl.ld Regular VANTAGE Ultra Lights Newport Lights 100's Eve Fllters VANTAGE Ultra Lights 100's Newport LI ts Box Eve Menthol VANTAGE Ultra Lights Menthol N. ort Red Bo L & M VANTAGE Ultra Lights Menthol 100's Newport Red Filter L & M Gold WINSTON Old Gold 100's L y IN Lights WINSTON Box Old Gold Filter L b M Lights 100's WINSTON 100's Old _G_old Lights Lark WINSTON Lights True 10O's _ Lark 100's WINSTON Lights 100's _ True Blue Lark L~yhts WIN_STON Ultra Liqhts True Green _ Satin Filter WINSTON Ultra Lights 100's Satin Menthol TOTAL R.J. REYNOLDS TOTAL LORILLARD TOTAL LIGGETT 6 MYERS TOTAL BROWN 8 WILLIAMSON
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EXHIBIT B INDEPENDENT VENDOR ROUTE CARD o Purpose - to record all transactions, by machine, for an independent vendor o Responsibility - Sales Representative o Frequency - after each sales call on an independent vendor o Distribution - original to Division Office; first copy retained by SR; second copy attached to weekly expense report; third copy retained by vendor o How to Fill It Out Line 1 - Enter your name, your territory, and your signature Line 2 - Enter the location of the machine (outlet name), the Compumark call number, and the date Line 3 - Enter the outlet's street address, city, state, and zip code Line 4 - Enter the type of machine, indicate if it has 120mm and/or 100mm capacities, and have the vendor sign the card Line 5 - Enter the number of columns in the ma- chine, and the quarters and year payment is made for brand placements Line 6 - Enter the vending payment, brand bonus payment(s), other bonus payments, and annual bonuses, and add them and record the total payment Line 7 - Enter indications of RJR brand changes, using a check mark in the small interior box for a new brand placement, and an "X" if the brand was removed, but payment was made Lines 8-12 - Do the same for the other manufac- turers Line 13 - Total all columns in boxes provided (column totals at top should equal totals at bottom)
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VEND OP LOC NO INDEPENDENT VENDOR ROUTE CARD Sales Rep's Name Compumark Territory Sales Rep's Signature Location Name Compumark Call No Date Called On ~ ~ Street City State Zip lype Mac/Nne 1?D MM Cap 100 MM Cap Vendor's Siqnature qo oF Cot Quarters And Year Payment Made no or caiNNls VEND VAYMENT SRAND RONl/S BRAND RONUS OTHER TYPE RONUSES ANMUAL SONUS TOTAL PAYMENT + + + + s 9 ~ e CAMEL CAMEL CAMEL CAMEL DO/1AL DO/1AL 0O11AL a DORAL a MORE MORE NOW MOW REAL REAL SALEM Fl LGNIS LTS 100 REG Fl MEN Fll MEN Fl MEN Fl NO1< MEN WR Fl MEN KS RJR » 103 1]7 p 7] u /0. IJS w aS a7 M /o/ 102 e7 SALEM SALEM SALEM SALEM VANTAGE VANTAGF VANTAGF WNC/4STER WMSTON WMSTON WIIISTON WMSTON WMSTON WINS TON IOO e071 LIGHTS l1 100 Fl t00 MEN KS 100 MEN RO% LIGHTS LT 100 71 a/ 96 91 7S 99 16 F7 aa N 70 as ee 100 ATC CARLTON CARLTON LUCKY IUCKY LUCKY ST VALL MALL PALL MALL PALL MALL PALL MALL SIVA SKVA TAREY TA11EY Fl MEN TEN 100 REO 100 EXT MIDS MEN TNMS (F) TNNS FM) /eo Fl. M a0 07 1} 0] 01 0. 1] os o. lo a ot BaW BEL AM OEL Aal KOOL KOOL 100 KOOI KOOI KOOL REG RALEGN RALEIGH RALEIGN RALEION VICEROY VICEROY VICEROY 100 tpR MILOS Ipo Fl LTS RAW to0 MIOS Is 22 la 70 7. }S 7a 71 17 t] 77 Is 19 a, PH MOR AIINE a a H l t H MARLlO/IO MARIeORO MARLIIONO MARLlOnO ARLWRO MERIT MERR 9ARL. PARL • MO/t Va1pa/N VpG/Nyl 100 too MEN eOK too LIGHTS MEN SOFT MEN LIGHTS LT 100 SLMS SLMS MEN at S7 so /77 so a] M S9 so M 55 at a] 40 a/ LOR. G«DEN KENT KENT KENT NEWIORI NEWPORT OLO GOLD OLD GOLD TRUE TRUE TRUE TRUE LIGHTS 100 MEN le0 Fl 100 la0 FIL 100 IQo MEN Fl MEN .a ./ .S .9 .~ .a S7 .1 so SI .] .. LI G. CHEST CNE1T. CHEST CHEST EVE EVE LARK LAIIK L a M L & M L& M L a M L a M /0/ Fl KS REO Fl MEN '00 le0 MEN LbE/Tf lTS. 100 ]a ]a t0 ]/ ]! ]9 ]0 ]7 7a ]T ]] tOi IM TOFaI Q CMck in block indic ates neW brand placement MISC MISC MISC MISC MISC MISC AM, COLS. © X 1n blo k indi t b d d c ran ca es remove but payment made R.IRT ianR S91/ Rev 5179 WO TO ahSM O~. OEtZ Z6fi0S
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EXHIBIT C DEAD COLUMN ANALYSIS o Purpose - to calculate for the vendor the projected increase in profit to be gained by replacing a dead column of a competitor's brand with an RJR brand o Responsibility - Sales Representative o Frequency - whenever a dead column is found in a vending machine o Distribution - left with vendor after presentation, along with current share of market report o How to Fill It Out Line 1 - Enter the vendor's name and the date Line 2 - Enter your name and the number of machines involved Lines 3-5 - Enter the name of the brand added to the machine and its share of market, the name of the brand removed from the machine and its share of market, and the increase in share of market,•which is also entered in the subtotal box to the right (obtain information from local SOM sheets) Lines 6-8 - Enter the same information for another replacement, if necessary Line 9 - Enter the total increase in share of market expected from the replacement(s) Line 10 - Enter the total increase in share of market, multiply by the machine volume (approxi- mately 90 packs per week), multiply that result by the number of machines involved, and multiply that result by the number of weeks for the projected pack sales increase Line 11 - Enter the•projected pack sales increase, multiply by the pretax profit per pack (estimated to be 5C), and enter the result, which is the projected profit increase the vendor can expect from replacing the dead column with an RJR brand
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DEAD COLUMN ANALYSIS BRAND ADDED] SUBTOTAL BRAND ADDED ] Prepared for: . Prepared by: _ REMOVED INCREASE IN SOM REMOVED Date: No. of Mach. SOM SOM SUBTOTAL X INCREASE IN SOM x MACHINE VOLUME' x TOTAL INCREASE IN SOM TOTAL INCREASE IN SOM NO. OF MACHINES PROJECTED PACK SALES INCREASE ~ a Nc~ 0D eV a x B NO. OF WEEKS PROJECTED PACK PRE-TAX PROFIT/PACK2 PROJECTED PROFIT SALES INCREASE INCREASE N N 'Averate weekiy machine vobme k approximately 75 packs n.tiona1lY• I lEstimated pre-tax profit/pack is Se nrotionall). SOM relen to Share of Market RIRT Form 6431 - Rev. 11/84 Commodity No. 064311
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EXHIBIT D VENDING CATEGORY ANALYSIS o Purpose - to determine to what degree consumer brand preference is being satisfied by products in the machine o Responsibility - Sales Representative o Frequency - to be used as a selling tool to gain placements with vendors o Distribution - left with vendor after presentation o How to Fill It Out Line 1- Enter the vendor's name and your name Line 2 - Enter the market area, the number of machines, and the date Lines 3-15 - For each category, add together each brand's share of market, and indicate whether the category is stable, declining, or growing; from each category, select top brands you recommend the vendor place, and calculate the brand preference percentage by dividing the total SOM of the brands you selected by the total category SOM (refer to local SOM sheet and completed vending category analysis) Line 16 - Total the share of market for all cate- gories, the share of market of the top brands, and calculate the percentage of total brand preference by dividing the top brands total SOM by the cate- gory total SOM Bottom Left - Enter the quarter and year of the analysis i
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RJRT Form 6428 - R.v. 10/81 VENDING CATEGORY ANALYSIS Prepared for: X. Y Z VENDING Prepared by: R. J. R. PERSONNEL Market Area: ANYWHERE U. S_ A_ No. of Mach. 100 Date: CLTRRE!vT ^.ategories of Smoker's Category Category Trends Brands In C t 12h Top Bnnda SOM p Brands To f td Preference for Vending SOM Over• All a egory Percentage o Category ~~ng-No influx Brand NON-FILTER 6.4 X of new brands CAMEL 2.04 31.9% Preference satisfied REGULAR ~~g-~ ~g-~~ WINSTON 8.28 Brand FLAVOR 2 7. 4 X influx of new brands infl Marlboro 15 . 96 92 . 2X ~ference 85mm CAMEL Filter 1.03 satisfied MENTHOL p~~g-~~ SALEM 3.08 Brand FLAVOR 15.6% influx of new brands Kool 7.87 70 • 2X Preference 8Smm satisfied 100mm Stable market-Few new WINSTON 100 2.44 Brand REGULAR 8.1% entries of new brands Marlboro 100 2.74 87.7% Preference FLAVOR B & H Filter 1.92 satsified 100rrtrtt Stable market-Few new SALEM 100 1.84 Brand MENTHOL FLAVOR 5.8% entries of new btands Kool 100 1.72 88.6% Preference B & H Menthol 1.58 Satisfied LOW TAR WINSTON Lts. 2.84 REGULAR 17.6% Growing Market-Largest VANTAGE 2.07 Brand FLAVOR influx of new brands CAMEL Light 1.25 Preference 80.6% BSmm Marlboro Lt. 4.88 Satisfied LOW TAR . d ~/ B MENTIIOL 5, g X Growing Market-Several SALEM Lt. 3. 49 ran Preference FLAVOR new entries of new brands Kool Mild 1 31 82.8% satisfied 85mm . LOW TAR REGULAR 5.6% GrowingMarket-Several WINSTON Lt. 100 1.07 42 3% ~d FLAVOR new entries of new brands Marlboro Lt. 100 1.30 . Prefercnce 100mm satisfied LOW TAR MENTHOL Growing ~et-~~ SALEM Lts. 100 1.77 6% Brand 50 FLAVOR 3.5% new entries of new brands (Other brands less . Preference 100mm than 1 SOM) ~~f~ ULTRA LOW TAR ~ REGULAR 5 X 1 Growing Market-Large ~ d FLAVOR . influx of new brands Pre ef rence 85mm satisfied ULTRA LOW TAR MENTHOL Growing Market-Several Brand FLAVOR , 6 X new entries of new brands Preference 85mm satisfied ULTRA LOW TAR REGULAR 1 1 X Growing Market-Several Brand FLAVOR . new entries of new brands Preference 1 pOmrn satisfied ULTRA LOW TAR MENTHOL 6 X % Growing Market-Several Brand FLAVOR new entries of new brands Preference l 00mm satisfed TOTAL 96. 6 X TOTAL Brand Preference satisfied 0 Computations an fipund on the SOM for th. top 50 brands. Cornputations tin from t]tt., . SOM rfhn to Sharo Of Morhot. 51Df{$ Z. V37 Commodlry No. 06428•7
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EXHIBIT E MULTIPLE ROW ANALYSIS o Purpose - to record multiple rows in vending machine and the recommended replacement brand and allowance o Responsibility - Sales Representative o Frequency - whenever multiple rows are found in vendor's machines (during a Ride With) o Distribution - left with vendor after presentation o How to Fill It Out Line 1- Enter the vendor's name and the date Line 2 - Enter your name and the number of machines involved Line 3 - Enter the name of the more than one row brand carried in Line 4 - Enter the name of the brand you recommend to replace the additional row(s) of the brand on Line 5 - Enter the machine volume (approximately 90 packs per week), multiply that figure by the share of market of the brand on Line 3, and enter the projected weekly volume of the brand by machine (machine volume information from placement report- ing records, placement list, precall research) Line 6 - Enter the number of multiple rows occupied by the brand, multiply by the number of packs per row, divide by the number of packs per carton (10), and multiply by the wholesale cost per carton to find the cost of brand inventory (vendor total sales data obtained from vendor invoices) Line 7 - Perform the same calculation for the replacement brand Line 8 - Enter the difference in cost of brand inventory
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Line 9 - Enter the number of rows of the replace- ment brand, multiply by the annual placement allowance, and enter the projected total annual placement allowance Line 10 - Perform the same calculation for the multiple row brand Line 11 - Enter the difference in placement allow- ance Line 12 - Enter the total change in inventory, add the total change in placement allowance, and enter the total change in profit the vendor can expect as a result of placing the RJR brand 1
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MULTIPLE ROW ANALYSIS Prepared for: Date: Prepared by: No. of Mach. (1) The brand having multiple rows (2) The brand recommended to place x MACHINE VOLUME3 BRAND'S SOMI PROJECTED WEEKLY VOLUME/MACHINE OF THE BRAND INVENTORY ANALYSIS x NO. OF MULTIPLE ROWS OF BRAND' x NO. OF ROWS OF BRAND REPLACING MULTIPLE ROµ'1 10 BRAND INVENTORti' PER ROW PACKS/CARTON 10 BRAND INVENTORY PER ROW e COST OF BRAND INVENTORYI COST OF BRAND Ih VENTORY2 TOTAL CHANGE IN INVENTORY PLACEMENT ALLOWANCE ANALYSIS x NO. OF ROWS OF THE BRAND2 NO. OF MULTIPLE ROWS OF BRAND' x WHOLESALE COST/CARTON x PACKS/CARTON WHOLESALE COST/CARTON ANNUAL PLACEMENT PROJECTED TOTAL ANNUAL ALLOWANCE PLACEMENT ALLOWANCE X ANNUAL PLACEMENT PROJECTED TOTAL ANNUAL ALLOWANCE PLACEMENT ALLOWANCE TOTAL CHANGE IN PLACEMENT ALLOWANCE I MULTIPLE ROW SUMMARY TOTAL CHANGE IN INVENTORY + TOTAL CHANGE IN PLACEMENT ALLOWANCE sAverage weekly machine volume is approximately 75 packs nationally. SOM refers to Share of Market e TOTAL CHANGE IN PROFIT I RIRT Form 6430 - Rev. 11/B4 Commodity No. 064303
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EXHIBIT F TRU-CHECK VENDING ROUTE CARD o Purpose - to record all placements and changes in machines operated by vending companies o Responsibility - Vendor/Sales Representative o Frequency - any time there is a change in a vending company's placement, machine, pull, brand, name, address o Distribution - to the vendor for his files and for use by the route salesperson o How to Fill It Out Line 1- Record what type of change is necessary: place, machine, pull, brand, name and address or location survey data Majority of form - For each manufacturer, by brand, enter the number, the columns under distribution column, and indicate if a brand has been pulled or added by writing in the numebr of columns involved . Middle Right - Enter the brands, distribution number, and pull or add information for any other manufacturer Middle - Indicate the type of location by demographics by placing an "X" in the corresponding box under the distribution column in both the type of location section and demographics section. Bottom Left - Enter the name of the outlet and its full address Bottom Center - Enter the vendor's operating number, the location number, and the number of columns in the machine Lower Right - Enter the number of brands at the loca- tion; enter location survey data, such as matches, commission and price codes, the tax area and sales week, the route number and service fre~quency per month, and the inventory total supply of packs; enter the type of equipment, machine serial number, contract expiration date, the owner's last name, the outlet's telephone number, and the current date More detailed information can be obtained from the Tru-Check t,u Profile Handbook.
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HJHI Fwa14hU/H r `i,J14 so49z 2139 I HU-l.Mtl:K VtNU1Nts MUU t t(:AMU RETAIN THIS COPY a• PLA('!. MA('HINF CHANGf C~ PULL 0 BRAND CHANGE C HHANU• ' U.+1 1 1~•.1.• ?P.,uAddl HHANDti -Ur+l ~ fr,M• 1PrdlfAdd • • I NAME AND ADDRESS CHANGE D L OL:ATION SUHVf Y DAIA (,HAN( rf n NNANIFS Drsl 1 (..d.• 'Rdl'Add: IIHANUti U~•.r ~,.I. r• d ~ AAA • • • • Hriyln h-.~ Hryrnltk)+ i 1 I•. I/b I l.xh.m CerHun1L70+ UNH 117 H/G H IIFI+ NbHMrnlMdlUOs ()'ll 0"y . /1.,ril.ry II/. . Ir H.xr6ryMrnulydl/M)•. . + 1/r/ Camr/F.Itrr Uq CanlwlMrnol,a (Nf0 HbH1WtLlyhl+F,lwr 118 H•u•IwyK-y• _y Canw/ F dlw Hard Pmi 177 Carllon 100 % MrnHql 178 H b H 100 s Llqhls Mrnlhol 119 Harr/ y M nhul K,ny+ 1 by - Canwl L.yhls 103 Carllnn 100s 60. 192 H b H Dvlu.x Ultra Lrqhts 1 78 Har• rny Hu. _- Canw1 l•ylll+ 100 + 137 Carlton Bo. Krny 193 B b H LA•Iu.r Ultra MrnthW 1 79 Brl- I Ut H ~-_ ~ Camel tqhr s Hard Pnck 179 Lucky SIr41e 003 MarIrxwn Bo. 127 Hrlev t(X) s CanwlHryulnr 068 LuckyStrlkeFdwrsCup 171 Marltluru10ps 058 Kuul DurelFalrrKlnq 195 LurAySlrlkr.FllterWnr 172 MarlboruLrqhls 063 Kuo/Bu. ' 024 Doral Mrmrpd Klnq 196 Lucky Strlkx 100s Fdter 012 MarMuro Lghls 80. 158 Kuol Rryular Ulb __ -- •- Ooralfduer 100 % 197 PaIIMaBIRadrNun Flher 001 Marl6rwnLlyhts100i 109 K/NII1F10+ - - t U%U _.~. --.. _ ------~- Droe/ Mrnrrwl Il)U+ 198 - Palt Ma11 Fdler Krnq 110 --------- Merl6uro Menlhol 064 - KIxN Mdds T 07h _+ Murr 094 Pall Mall 100 s 004 Marl6oro Soh 054 Krxil Mllds 100 t (MO Murr Mrnthol 095 Pall Mall Lghts 100s 126 Mrrrt 080 Kuol SuLx•r Lryrns I10Usl 175 - ~ - Mrrr Lryhts 1001f 1 164 Pall Ma1185mm (Mrld) Fdter 013 Mern 100s Fllter 115 Kuo1 Su{wr Lryhts IKrnqsl ! 174 ~ Morr L,yMS 1(X)IMI 165 Sllya Thms 009 Mrrrt MenlhW 084 Knul Ultra 100s 15% ' I Now F.hrr Kmq 138 SINa Thrns Menthol 010 Mrro 100 s Menttwl 116 Knor Ultra Krnys ~- 151 ~- - Now Mrmhol K.ny 139 Tareyton 100s 006 Mrnt Ultra 167 He4r,qh 100 s ~ (121~ ~ Nuw F iIlrr 100 079 Tarrpon Fdlrr 007 Mmrl Ultra Mrnthol 163 Halrrytl F ntrr Ol ) r F•k/w Menthol 100 081 Tamylon Llyhls 111 Mer4 Ultra 100'S 199 RaN•ryh Lghls Salem 067 TarrytalLUnyLlqrns 114 Mw/tUIlraMxnltIW100s 700 RaMghPiam 077 - SaIrm100s 071 -_-- ----- -'-- --- - - PerbamenrLrqrus Oh5 Vnxroy OIS ~ ~- _ Salrm Lryhls Salrrn 1 ryhls 100 s 096 091 Kxnl Golden lghn (Yltl Parllemrnl lryhls 100s Playrrs Rryul.u 062 187 Vr[woy IODS Vn:r.oy Rlch Lghls 100+ ' O1 V-~- 134 I Sarrm Shm Lrqh15 159 Kenl Galden Llqhts 100'S 120 Players Mrnlhul 183 Vrceroy RI[h Lghlf IKlnqe) 133 ' Salem UNae _ 038 Kent Gulden Llyhts Men 053 Playrr+ Rrqular 100 s 184 ~ __ t--i_-+- Sarem Utlrn 100 s 039 Kent Golden LryMS Men 100 s 171 Ravrrs MxnlhW 100s 1 B5 Stenrny Reyular 190 Kent Fdter Bo. 149 V/rymlu Shms 060 ' Slerbny Menlhol 191 Kem 041 Vnymra Sllms Lqhts 097 • VanlageFdler 075 Kem100s W5 VuymraShmsMenlhut _ 0fi1 Vanlaqr Menthol 076 Kenr III 136 Vuylnu Sl/ms Lryhls Menthol 098 OH9 I VanrayeMenlrwl100s 143 Kent/1/100's 148 RuirpMunrsConlm 083 Vanlaye Ultra Lryhrs 146 Ma. Fdter 092 ~-- I Vanlayr UHra Lghra 100 s 147 Ma. Menthol 093 ------- -----_- ----~-- ---' •-- Vanlaqe UHra Lryhls Mrnmol85s 1 73 Newprl 042 ------- -- -- - Vanlayr Wva Lghls Menlhol l0p s 1 74 NewVOrt IOOs 0•6 ' • • • • Vantage 100 s 099 Newywt Fdler Bo. 150 • • • Wrnston 066 NewpatLrqhls 172 Hr+r Uuwr OI • • •A Wlnston Bo 085 Newptrt Lghls 100 % 168 Luunqe, Bw 07 M•arhes Cununnvw. ( r.lr _~ Wlnslon100s 069 Newportlghls8o. 011 Apatnrnt 03 RrrrCutr Rourrkkl -- Wmston Lryhls 086 Nrwport Red So. 167 RetaJ- S. Mkl 04 Ia. Arre - `--- Wrnstontghts100s 100 NewporlRwdFlher 166 ArqKKt.RR.BusStalx.n 05 Winston Ultra Lryhts 153 Old Gold 100s 052 ihealrr. Arrna. Slsdlum 06 • • Wmslon Ultra Lghts 100 s 154 Old Gold FrNer 047 ONwe 07 ', OaGoldlryhts 123 irwtu,ure/ Ikf - - i - - - - SahnFrh« 100s - Satrn MnMhW 100s Lue iW's 190 181 050 • • UPxwlr Irr IU ~ , crknwnw/d u,ny u7v True rhr. Klny 043 v~l~ny A~uft t I . . .• Cheslenleld Hryuler 031 lrur Menthr,f Krny 0" Bhw Cu//ar 17 I L b M O%8 irue MenHrul 100s 051 Nl.k1 13 i I.ark -- - - 030 Trlumplr Fdler K/nq 144 Hry.rna --- - 14 - • - - - r,. . .,I IS I 4 I 1 I 1 I l 1 1 I 1 ! 1 I ! I 1' 1 • • ~ ' ~ ~ Comnwld.ly Nn 04 h67 4
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EXHIBIT H PLACEMENT ALLCSCANCE ANALYSIS o Purpose - to record total placement allowance for each machine operated by your vending company o Responsibility - Sales Representative o Frequency - to be used as a selling tool to show vendors potential increase of RJR brands o Distribution - left with vendor after presentation o How to Fill It Out Line 1 - Enter the vendor's name and the date Line 2 - Enter your name and the number of machines involved Majority of Form - Enter the brands; the number of columns filled by that brand, and the payment allowed for the brand - or a"Q," if it is or will be used as a qualifier - for the maximum number of columns in the ver.dor's machines, placing lines under the num'Sers of columns that represent the vendor's machine sizes Lower Third of Form - Enter the size of r•..achi ne in the left-hand box - up to 3 dif:erent column capacities, and the payment allowed for each size machine listed in the right-hand box; then enter the size of machine and the number of machines in that size, and multiply the number of machines by the payment allowed for that size machine, entering the result in the box under Total Mach. Payment - do this for each size machine Lower Right Corner - Add the total machine payments together and place the result in the box provided for Total Placement Allowance
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PLACEMENT ALLOWANCE ANALYSIS Prepared for: Prepared bv: 1 2 3 4 S 7 8 9 10 11 12 13 14 15 16 17 18 19 20 . Date: No. of Mach. Brand 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 PLACEMENT ALLOWANCE SUMMARY Size of Machine Col. Col. Col. Brand Size of Machine M Cols. tio. of Machines Payment [ 1 Col. t Col. [ Col. [ x x x Qualif~lnR brand.. in order to reeei.e p..mem. denaed b% the'Q' Pavment/Machine Payment/Machine e e Pa~ment Total Mach. Pa.ment I l [ ) e x Cols. TOTAL PLACEMENT ALLOWANCE f 1 tJRT tnwNS~~11 `%
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1 QUARTERLY VENDING CONTRACT PAY REGISTER PLAN A 1. Division under which vendor is headquartered. 2. Date of report and quarter ending date of payment period. 3. Division to which vendor is assigned. 4. RJR Vendor account number. 5. Vending plan under which vendor is participating. 6. Name and address of vendor to be paid. 7. Y indicates special check handling as payment will be sent to Division Office. (Until further notice, all payments will be sent to Division Office. 8. Placement payment due vendor for this payment period. 9. Placement payment adjustment line. - Utilize this line only if the amount shown in 8 is dif- ferent than the amount the vendor is entitled. (Re: inaccurate placement report, etc.) • Note: Anytime adjustment lines are used, there must F-ea brief explanation for the adjustment written on the explanation line 17 in order for adjustment to be processed. • Additionally, anytime an adjustment line is used, the payment adjusted line must be checked in order to key the computer to make the adjustment. 10. The current quarterly payment due for coin mechs shipped and billed to the vendor as of the run date of the report. IMPORTANT: THIS AMOUNT CANNOT BE ADJUSTED ON THE QUARTERLY PAY REGISTER. 11. Payment due for coin mechs cannot be adjusted or changed on this form. 12. Penalty charges accessed the vendor in the event that he/she did not meet the contracted brand average. 13. The net amount of payment due the vendor after coin mech payments and/or penalty charges, if any, are deducted.
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2 PLAN A Page 2 14. The net due R. J. Reynolds if coin mech quarterly payments and/or penalty charges exceed the placement payment due vendor (line 8). After review and adjustments (if nece- ssary), sign and return to Tru-Check who in turn will issue an invoice on these particular vendors. Upon receipt of invoice, please collect trom vendor giving them a paid copy, retain Division Office copy for your files, and send check attached to RJR copy to J. W. Hixon, Winston- Salem, North Carolina. 15. The payment approved line, once checked, indicates that the amounts shown on the pay register are correct and no adjust- ments are to be made. If adjustments are made in the pay- ments, this line should not be checked( ). 16. The payment adjusted line must be checked (r) anytime any adjustments are made. If no adjustments are made, this line should not be checked (M. 17. The explanation section is ~always_ used anytime an adjustment is made on the pay register. A brief explanation should be written in this section in order for adjustments to be honored. If explanation is not made, adjustment will not be processed. 18. Signature of division management approving payment. Note: only management can approve the pay register. 19. Name stamp of approving manager. 20. Return original of approved pay register to Tru-Check. 21. Retain copy of pay register in division otfice (vendor file). ~~~
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3 DUARTERLY VENDING CONTRACT y PAY REGISTER ® C2vislon 2124 10/Q1/84 OTk END 9/,()/E,) ------- VENDOR INFORMATION --- ~ TERR ~j ACCOUNT 2'124 1192669 F'LAN ® A NAME AND ADDRESS OUALITY VENDING SERVICES 123 NORTH MAIN STREET ~ SPECIAL CHECK' HANDLING - Y ANYWHERE. US 12345 PAYMENT DETAIL =====aa=ssa=====_=_____________ ADJUSTED AMOUN' ® PLACEMENT PAYMENT DUE VENDOR $31,450.00 ~ ~------- -- /® PAYMENT DUE FOR COIN MECHANISMS f1,750.00 J~ $1,750.n0 & PENALTY CHARGES $(J. Qc) ~--•----- -- NET DUE VENDOR $1 , 7fJ0. t,lfi * ------- -- NET DUE R. J. REYNOLDS $0.00 $ (3 PAYMENT APPROVED PAYMENT ADJUSTED EXPLANATION OF ADJUSTMENTS lot APPROVED HY_______________________________ NAME STAMP: ao RETURN ORIGINAL TO TRU-CHECK RETAIN COPY FOR DIVISION OFFICE
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4 QUARTERLY VENDING CONTRACT PAY REGISTER PLAN B (Prepayment Quarter - lst and 3rd) 1. Division under which vendor is headquartered. 2. Date of report and quarter ending date of payment period. 3. Division to which vendor is assigned. 4. RJR Vendor account number. 5. Vending plan under which vendor is participating. 6. Name and address of vendor to be paid. 7. Y indicates special check handling as payment will be sent to Division Office. (Until further notice, all payments will be sent to Division Office. 8. Placement payment due vendor section has two parts since Plan B allows vendor to receive prepayment for next quar- ter's placements. 9. Placement payment adjustment line. Utilize these lines only if the amounts shown in 10 & 11 are different than the amount the vendor is entitled. (Re: inaccurate placement report, etc.) • Note: Anytime adjustment lines are used, there must e a brief explanation for the adjustment written on the ex lanation line 17 in order for adjustment to be processe . • Additionally, anytime an adjustment line is used, the payment adjusted line must be checked in order to key the computer to make the adjustment. 10. Placement payment due vendor for this payment period. 11. Prepayment for quarter ending 12/31/84 based on present quarter's placements. 12. Adjustment in payments from previous quarter caused by: - Additional placements made or lost since last pay- ment was made.
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Plan B Page 2 Prepayment Quarter - lst and 3rd 13. The net amount ot payment due the vendor after all, if any, adjustments are made. 14. The net due R. J. Reynolds if negative adjustments exceed the placement payment due vendor (lines 10,11). Note: A check from the vendor made payable to RJR must accompany the returned pay register. 15. The payment approved line, once checked, indicates that the amounts shown on the pay register are correct and no adjust- ments are to be made. If adjustments are made in the pay- ments, this line should not be checked (r). 16. The payment adjusted line must be checked (r) anytime any adjustments are made. If no adjustments are made, this line should not be checked (r). 17. The explanation section is always used anytime an adjustment is made on the pay register. A brief explanation should be written in this section in order for adjustments to be honored. If explanation is not made, adjustment w;'' not be processed. 18. Signature of division management approving payment. Note: only management can approve the pay register. 19. Name stamp of approving manager. 20. Return original of approved pay register to Tru-Check. 21. Retain copy of pay register in division office (vendor file). tMt
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6 QUARTERLY VEND I NG CONTRACT O PAY REG I STEFt 9 Divisinn 2124 1n/U1/f34 OTR END 9/~0/!34 VENDOR INFORMATION ~ TERR © ACCOUNT © PLAN ` IC A 124 1192669 AUTOMAT 2124 SERVICES 875 SOUTH OAI' PLAZA SPECIAL CHECK HANDLING - Y MAINVILLE, US 78901 PAYMENT DETAIL ® - FOR THE NEXT QUARTER a ADJUSTMENT FROM PREVIOUS QUARTER PLACEMENT PAYMENT DUE VENDOR NET DUE VENDOR NET DUE R. J. REYNOLDS IO - FOR CURRENT QUARTER ADJUSTED AMOUN' $675.00 ~.......... *675. 00 $0.00 si-;T50.rirn ~------•- --• $0.00 $ Q n PAYMENT APPROVED IF/b] PAYMENT ADJUSTED ___ EXPLANATION OF ADJUSTriENTS---------------------------------------------------------- ~ AF'PROVED E{Y NAME STAMP: ------------------------------- RETURN ORIGINAL TO TRU-CHECK .1~ , RETAIN COPY FOR DIVISION OFFICE a
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7 QUARTERLY VENDING CONTRACT PAY REGISTER PLAN B (Prepaid Quarter - 2nd and 4th) 1. Division under which vendor is headquartered. 2. Date of report and quarter ending date of payment period. 3. Division to which vendor is assigned. 4. RJR Vendor account number. 5. Vending plan under which vendor is participating. 6. Name and address of vendor to be paid. 7. Y indicates special check handling as payment will be sent to Division Office. (Until further notice, all payments will be sent to Division Office. 8. Placement payment due vendor section will show amount of payment that vendor is due this quarter based on his/her submitted placement list (line 10). 9. Placement payment adjustment line. Utilize this line only if the amount shown in 8 is dif- ferent than the amount the vendor is entitled. (Re: inaccurate placement report, etc.) • Note: Anytime adjustment lines are used, there must Fea brief explanation for the adjustment written on the explanation line 17 in order for adjustment to be processed. • Additionally, anytime an adjustment line is used, the payment adj'usted line must be checked in order to key the computer to make the adjustment. 11. Previous quarter prepayment indicates the amount that was prepaid in lst or 3rd quarter to cover this quarter's pay- ment. ment. 12. The net amount of payment due the vendor after all, if any, adjustments are made. 13. The net due R. J. Reynolds if negative adjustments and/or previous quarter prepayment exceeds the placement payment due vendor (Line 10). Note: Amounts due vendor or RJR will be carried forward to the next quarter if prepay-
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Plan B Page 2 Prepaid Quarter - 2nd & 4th ment was made. If no prepayment was made, RJR will issue a check for the net amount due vendor in the current quarter. If there is a net due R. J. Reynolds and no prepayment was made, deductions will be carried forward and made to the next quarter placement payment. 14. The payment approved line, once checked, indicates that the amounts shown on the pay register are correct and no adjust- ments are to be made. If adjustments are made in the pay- ments, this line should not be checked (v). 15. The payment adjusted line must be checked (.,) anytime any adjustments are made. If no adjustments are made, this line should not be checked (•7. 16. The explanation section is always used anytime an adjust- adjustment is made on the pay register. A brief explana- tion should be written in this section in order for adjust- ments to be honored. 17. Signature of division management approving payment. Note: only management can approve the pay register. 18. Name stamp of approving manager. 19. Return original of approved pay register to Tru-Check. 20. Retain copy of pay register in division office (vendor file). 1~~
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O Divis2on 212'14 QUARTERLY VENDING CONTRACT PAY REGISTER QTR END ~ TERR © ACCOUNT 2124 1192669 O SPECIAL CHECK HANDLING - Y 9 U0 122/31/84 VENDOR INFORMATION © PLAN NAME AND ADDRESS B © AUTOMATIC VENDING SERVICES 67wSOUTH OA PAYMENT ® PLACEMENT PAYMENT DUE VENDOR - FOR CURRENT QUARTER 0 PREVIOUS QUARTER PREPAYMENT /01 NET DUE VENDOR NET DUE R. J. REYNOLDS .+ K PLAZA MAINVILLE, US 78901 DETAIL ADJUSTED AMOUNT $300.00 ® s $675. ~:~~:~ *------ - --- ~it1. 00 s------- -- $375.00 f (NOTE: AMOUNTS DUE VENDOR OR R.J.R. WILL BE CARRIED FORWARD TO THE NEXT QUARTER IF PREPAYMENT WAS MADE. IF NO PREPAYMENT WAS MADE. A CHECK WILL BE ISSUED IN THE CURRENT QUARTER.) ~ PAYMENT APF'ROVED ___ ~S PAYMENT ADJUSTED ___ 1i EXPLANATION OF ADJUSTMENTS --------------------------------------------------------- ® APPROVED BY............................... NAME STAMP: RETURN ORIGINAL TO TRU-CHECK p~d) RETAIN COPY FOR DIVISION OFFICE I i r l
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QUARTERLY VENDING CONTRACT PAY REGISTER PLAN C 1. Division under which vendor is headquartered. 2. Date of report and quarter ending date of payment period. 3. Division to which vendor is assigned. 4. RJR vendor account number. 5. Vending plan under which vendor is participating. 6. Name and address of vendor to be paid. 7. Y indicates special check handling as payment will be sent to Division Office. (Until further notice all a ments will be sent to Division Of ice. 8. Placement payment due vendor for this payment period. 9. Placement payment adjustment line. - Utilize this line only if the amount shown in 8 is different than the amount the vendor is entitled. (Re: Inaccurate placement report, etc.) • Note: Anytime adjustment lines are used, there must be a brief explanation for the adjustment written on the explanation line 12 in order for adjustment to be processed. • Additionally, anytime an adjustment line is used, the a ment adjusted line must be checked in order to key t e computer to make the adjustment. 10. The payment approved line, once checked, indicates that the amounts shown on the pay register are correct and no adjustments are to be made. If adjustments are made in the payments, this line should not be checked (vJ. 11. The payment adjusted line must be checked M anytime any adjustments are made. If no adjustments are made, this line should not be checkedT.J. 12. The explanation section is always used anytime an adjustment is made on the pay register. A brief explana- tion should be written in this section in order for adjust- ments to be processed. 10 i
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11 Plan C Page 2 13. Signature of division management approving payment. Note: Only management can approve the pay register. 14. Name stamp of approving manager. 15. Return original of approved pay register to Tru-Check. 16. Retain copy of pay register in division office (vendor file). ###
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12 QUARTERLY VENDING CONTRAC- 0 PAY REG I STEF: ~ Division 2124 OTF: END 9/30/84 rss===a==a=sa==axxx=====ssx=== VENDOR INFORMATION rrssss::arssrassssaa=x===z=== TERR ACCOUNT PLAN NAME AND ADDRESS 2124 a 1192669 O c ~ DUALITY VENDING SERVICES 123 NORTH MAIN STREET O SPECIAL CHECK HANDLING - Y ANYWHERE. US 1254t sarsarax~ssasars:a=srssss=sssasr PAYMENT DETAIL =ssssssrssrsssssssa=sa===m~xcc~ ~ ADJUSTED AMOUNT ~ PLACEMENT PAYMENT DUE VENDOR $3,450.C1c) * _______ __ a FAYMENT AF'F'ROVED t PAYMENT ADJUSTED ___ EXPLANATIOn OF ADJUSTMENTS APPROVED EEY NAME STAMP: ~, RETURN OR I G I NAL TO TRU-CHEC1; RETAIN COFY FOR DIVISION OFFICE A
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yc A rnp 13 DUARTEFcLY VENDING CONTRACT PAY REGISTER Di.vi sion 2124 10/() l /84 OTR END 9/ _'(:i/134 VENDOR INFORMATION TERR ACCOUNT PLAN NAME AND ADDRESS 21214 1192669 A DUALITY VENDING SERVICES 123 NORTH MAIN STREET SPEC I AL CHECK HANDL ING - Y ANYWHERE. US 1234;; F•AYMENT DETAIL PLACEMENT PAYMENT DUE VENDOR PAYMENT DUE FOR COIN MECHANISMS PENALTY CHARGES NE1' DUE VENDOR NET DUE R. J. REYNOLDS 1) ) ADJUSTED At`iOUN' $1 850 (:,U . , $2,100.00 $2.100.04 -- $c i, (:)(;) $ ------- - - $250.00 ~. _-_---- PAYMENT APPROVED _V' PAYMENT ADJUSTED EXPLANATION OF ADJUSTMENTS O NAME STAMF . N~.:L:;r .: . . ,t :? -, V. - - - - - - - - - - - - - - - - - - - - - - RETURN ORIGINAL TO TRU-CHECK t;c 2, '!) RETAIN COPY FOR DIVISION OFFICE PAyrnE&r l4jpjuvco wi,-l- no
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15),( a^ol4,- oL ]UARTERLY VENDING CONTRACT PAY REGISTER 14 Division 21=4 1G/Q1/84 QTFc ENU = VENDOR I NFORMAT I ON --- --________ =-- ---- --- -- TEFF: ACCOUNT PLAN NAME AND ADDRESS -1:4 119-2669 A LIUALITY VENDING SERVICES 123 NORTH MA I N STREET SPECIAL CHECK HANDLING - Y ANYWHERE. US 12345 PAYMENT DETAIL - n ADJUSTED AP10Ur,1T PLACEMENT PAYMENT DUE VENDOR tJ ,450.00 ' s 00 PAYMENT DUE FOR COIN MECHANISMS $1,750.00 $1.750.00 PENALTY CHARGES $0. 00 0 $ NET DUE VENDOR $1, 700. 00 NET DUE R. J. R EYNOLDS $0.00 :------- -- PAYMENT APPROVED EXPLANAT I ON PAYMENT ADJUSTED ~ -,p F ADJUSTMENTS__Qi1_ ~ QTQ _PLAg- ?+f/ilr -C. ~-~ ~-__-----•----•-------• --•----- AF'PFOVED HY RETURN ORIGINAL TO TRU-CHECK RETAIN COPY FOR DIVISION OFFICE cPL.icrmf,,r PAyrmcftr Aoyo,r,ro 7V &Frcr 07 S f~ Op ~ Tfo^ 4-4 nl A, ~,f n iC.r p`AGfp w T 40 T IuE~ON~"~ D. ( $ BMrot !'S& MAGls1hf )
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F"V Ample 3 15 WUAF:TEF:LY VENDING CONTRACT PAY REG I STEFc Di vl5ion 2~124 10/01 /f34 DTR END -------------------------:__=== VENDOR INFORMATION TERR ACCOUNT PLAN NAME AND ADDRESS 21224 1192669 E+ AUTOMATIC VENDING SERVICES 875 SOUTH OAK PLAZA SPECIAL CHECK HANDLING - Y MAINVILLE, US 78901 PAYMENT DETAIL ADJUSTED A^tOUNT PLACEMENT PAYMENT DUE VENDOR - FOR CURRENT QUARTER $675.00 f_______ __ - FOR THE NEXT QUARTER *675. ! i0 ADJUSTMENT FROM PREVIOUS QUARTER $0.00 $ NET DUE VENDOR $ 1, .35(1,00 NET DUE R. J. REYNOLDS ~ $0. 00 PAYMENT APPROVED _ V PAYMENT ADJUSTED E XF'LANAT I ON OF ADJUSTMENTS APPROVED E<Y----~-r NAME STAMP: kyw' ----------------------- ' l0i2 9 RETURN ORIGINAL TO TRU-CHECK RETAIN COPY FOR DIVISION OFFICE QP.4Yrn rFnr q pptwvcD w i y'L rt o Ap,! vs rmx.xrs
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E7X A rti ptE 11 16 OUAF:TEF:LY VEND I N(i CONTRACT PAY REGISTER Di vi si c;n ?1'-4 10/01/84 GITk END 9/ -)(:)/Q,(I ___________ -_= ---------------= VENDOR INFORMAT I ON =-----_------=______-_----_:-: TERR ACCOUNT F•LAN NAME AND ADDRESS 1192669 8 AUTOMATIC VENDING SERVICES 875 SOUTH OAF; PLAZA SPECIAL CHECK HANDLING - Y MAINVILLE, US 78901 PAYMENT DETAIL ==_=====as:msas=====_=________ ADJUSTED AMOUN" PLACEMENT PAYMENT DUE VENDOR - FOR CURRENT QUARTER $675.00 - FOR THE NEXT QUARTER *675. (1ii ADJUSTMENT FROM PREVIOUS QUARTER $0.00 NET DUE VENDOR s 1v •:•50. Q0 0 s_kQQ _ , Oo $ (c. 00 .00 "ZS_ OL s _Ll.a.L _ • pQ NET DUE R. J. REYNOLDS $0.00 s_______ __ PAYMENT APPROVED PAYMENT ADJUSTED V EXFLANATION rnN~L~1~LE~__?0~1__~cl/~{t~~llsl.~__F1L~__J=9j(s21~~ _~~ --~ _ -Q ...................................... OF ADJUSTMENTS--_AQ n ~ ~ AF•PF:OVED BY /f NAME STAMP: RETURN ORIGINAL TO TRU-CHECI,: RETAIN COPY FOR DIVISION OFFICE (D pAyrni-hr Aojr,[ sEO A v E' TO / S h"Ad.Afs ho T co F,., c Fop. Pysvit A &r. (~~~w s B~~os~ Y UcoV GTto.,. lrAoE 0... 7-A+E I .r h1AIE s Tj1AT a„o noT 49404t,A-y r.000 Aym 'TE•4' ~'tCvr ovS QTR.
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G 1L a1 I"h* s 17 QUARTERLY VENDING CONTRACT PAY REGISTER Division 2124 QTR END 12/31/84 VENDOR INFORMATION TERR ACCOUNT PLAN 2124 1192669 B SPECIAL CHECK HANDLING - Y NAME AND ADDRESS AUTOMATIC VENDING SERVICES 875 SOUTH OAr; PLAZA MAINVILLE, US 78901 PAYMENT DETAIL ADJUSTED AMOUNT PLACEMENT PAYMENT DUE VENDOR 6) - FOR CURRENT QUARTER $300.00 :_SSO_. 06 PREVIOUS QUARTER PREPAYMENT $675.00 ~------- NET DUE VENDOR $(:), (:)(:) s------- -- NET DUE R. J. REYNOLDS $=7s.00 SlaS . vo (NOTE: AMOUNTS DUE VENDOR OR R.J.R. WILL BE CARRIED FORWARD TO THE NEXT QUARTER IF PREPAYMENT WAS MADE. IF NO PREF•AYMENT WAS MADE. A CHECK WILL BE ISSUED IN THE CURRENT QUARTER.) F•AYMENT APF•F:OVED ___ PAYMENT ADJUSTED EXPLANATION La ~-__A Z___ ------ OF ADJUSTMENTS_LtJ Ee4c,_ 11.PZ__J"1LKfi'j_y,~_DAJ~L~ APPROVED __________________ NAME STAMP: RETURN ORIGINAL TO TRU-CHECK RETAIN COPY FOR DIVISION OFFICE 0 PAymr etiaojasj Fo -to &j'~E~ r'E~r so MAck,,,c AT g I,3M..ot Pi cko;7o vp o.. PZh /71 AGX.*h Jf TAA T "" h o T QCA cxf•r4'•.r &-,OoOs-
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E,ea.v,pbc (p 18 OUAf;TERLY VEND I NG CONTRACT PAY REG I STF:R Gi.vi.sion 2124 04/O1/85 OTk END VENDOR INFORMATION TERR ACCOUNT PLAN NAME AND ADDRESS ~124 1192669 6 AUTOMATIC VENDING SERVICES 875 SOUTH OAK PLAZA SPECIAL CHECK HANDLING - Y MAINVILLE, US 78901 PAYMENT DETAIL ADJUSTED AMOUNT PLACEMENT PAYMENT DUE VENDOR O - FOR CURRENT QUARTER $725.00 s_ Co9 C _ Oo - FOR THE NEXT QUARTER s72 5. 0o ADJUSTMENT FROM PREVIOUS QUARTER $25.00 $ ------- -- NET DUE VENDOR $ 1,475.00 s_1J4 0~Qo NET DUE R. J. REYNOLDS $0.00 $ PAYMENT APPROVED ___ PAYMENT ADJUSTED V EXPLANATION 7-iQ.~ JJ: - OF ADJUSTMENTS__7 0 APPROVED J_r - ------ NAME STAMP: a MjcL,;;";.'. ~I- , vy RETURN ORIGINAL TO TRU-CHECK RETAIN COPY FOR DIVISION OFFICE ~ PAyAMf'hT A0jvs reo To /ZrFCircr A S' 70 r .,~ TA j&
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19 E-10 Aot+tAL ? DUARTERLY VENDING CONTRAC- F•AY F.EG I STER Division 2124 QTR END 9/:,O/84 VENDOR INFORMATION ===racs=cc:rcac=====____=-_--_ TERR ACCOUNT PLAN NAME AND ADDRESS 2124 1192669 C OUALITY VENDING SERVICES :223 NORTH MAIN STREET SPECIAL CHECK HANDLING - Y ANYWHERE. US 12345 srscas:=cr==aa=====r====s=====_= PAYMENT DETAIL ====r==srr=rsrarz=_____________ ADJUSTED AMOUN? PLACEMENT PAYMENT DUE VENDOR S3,450.00 !___-_-_ __ © FAYMENT APPROVED _ _ PAYMENT ADJUSTED ___ EXPLANATIOn OF ADJUSTMENTS APPROVED HY__ --------------------- NAME STAMP: 48219 RETURN ORIGINAL TO TRU-CHECK RETAIN COPY FOR DIVISION OFFICE -- --------------------------- 0 PAyenrhr AP pMugO Wl rk n. RpJ 0,rr». 9'n0T s
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VENDING ACCOUNTS Product Display Administration/ Selling Pres. Availability Merchandising ' Check/Rotate Stock - Ensure rotation by code dates monthly in larger accts. quarterly in smaller accounts. ' Merchandising of Product - Utilize load plans based on demographics of location and vending S.O.M. to ensure right brands are placed and merchandised. Merchandising Equipment - Coin Mech Program - Toppers and refur- bishing units. - Inserts ' Handle damaged ' merchandise ' Distribution - Gain/maintain placements on top 9-12 brands based on local S.O.M. and v/m size. - Utilize new vending programs for 1985. ' Inventory Levels - Insure that sufficient quantity of brands stock is in inven- tory. - Assure proper inventory controls are utilized. - Sell any volume build- ing programs approved for l9 1 Z Z 6fi 0 S 1985. Advertising ' P-O-S/PDI - Provide vendor with all vending P-O-S/PDI °Postons °Price Dials °Refurbishing Panels . Coverage ' Minimum of Monthly Coverage of Vendors with 50 v/m's or above ' Minimum quarterly coverage of vendors with less than 50 v/m's. Communication ' Maintain Proper Reporting - Placement Pay- ment Reports. - Location Anal- ysis. - Vending S.O.M. - Coin Mech Repts. 4 Skills ' Utilize PSS Skills ' Capitalize on all vend- ing programs offering additional dist./vol.
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. 5o4-s2 2162 PRODUCT AVAILABILITY MERCHANDISING Independent Vendors DISPLAY/ ADVERTISING ADMIN/ SELLING PRES. COVERAGE COMMUNICATION SKILLS Remove old ° Maintain ° Annual ° Maintain ° Sell Vending Product La e s b On Y Pro er Promotions Panels Reporting ° Work ° Pay. Annual Selected Amounts Due POS . 0
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RJR DRAFT SYSTEM The information given below is an overview of the RJR Draft System. Specific instructions and details will be made available via your Division Manager and The Draft Manual. Care should be given to ensure the utmost accuracy and proper implementation of this program. The purpose of the RJR Draft is to reimburse retailers, chains, vendors, military, and direct accounts for promotional payments. The draft is a tool for Field Sales Managers and Sales Representatives to ensure prompt payment to these RJR accounts. The types of payments that can be paid by means of an RJR draft are: 1. Shelf Displays * 2. Permanent Counter Displays * 3. Permanent Floor Displays * 4. Centralized Package Displays 5. Permanent Check Lane Displays 6. Temporary Counter Displays 7. Floor Base Displays 8. Tax Stamps 9. Stamping Allowance 10. Military Store Sales The draft consists of three copies of the entire sheet plus the original negotiable instrument: o Original (Buff): This is the instrument that the account deposits in the bank. o Winston-Salem Copy (White): This copy is sent to the Division Office by the RJR employee at the close of each day. The Division Secretary checks for accuracy, stamps it with the Division Manager's name stamp, and forwards it to Winston-Salem. o Division Office Copy (Blue): The RJR employee must mail this copy, with the Winston-Salem copy, to the Division Office at the close of each day. This copy is maintained in the office files. o Customer's Copy (Yellow): This is given to the customer along with the draft and is the customer's record of the type of promotional payments being reimbursed. * In 1985, contracted displays will begin to be paid from a pay register verified by the Division Office. A check will be sent from Winston- Salem directly to the retail outlet.
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EXAMPLE 1 The following payment is made to the ABC chain on April 5 for the First Quarter: o 2 stores with Shelf Display Plan D10, full payment o 1 store with Shelf Display Plan D12, full payment o 1 store with Shelf Display Plan D10, partial payment o 10 30-Pack Temporary Displays of CAMEL LIGHTS placed Notes on correct completion of the Draft: 1. Print all information except signature of the RJR employee. 2. The Type of Payment is abbreviated on the draft, e.g., Shelf Display is SD, and 30-Pack Temporary Counter Display is CD30. 3. The column for Plan indicates the following: o The Shelf Display Plan o The Brand Family for temporary displays 4. The Rate column indicates the dollar amount. For contractual agree- ments, such as Shelf Displays, the rate is the quarterly amount. For contractual agreements that are less than a full quarter, check the Partial Payment block and enter the rate for the months being paid. For noncontractual agreements, the rate is the unit rate. 5. The Stores or Units column indicates the number of stores being paid for contractual agreements. For noncontractual payments, the column shows the number of displays being paid. 6. The Amount column equals the Rate column multiplied by the Stores or Units column.
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FOR PROMOflONAt PAYMENT ONLY PAY TO THE *)RDER OF ADDRESS ` R. J. Reynolds Tobacco Company Aw D.. rrrst ee oanvw.e er RA Empw« D S ERAMPL E I wa yem.R..o d.y, r.an an. .4 B e eA96- , /ID/17i~i.r Stil~EE~ STREET/BOx ~~il/y T ~i.r /1/ ~/ DATE ORARNO 8016430 COPY-NOT NEGOTIAE3LE >< AMOUNT ; /STA7 tPC DE S' 6 DOLLARS NOT GOOD FOR MORE TMAN $10,000 ~~ T SIGNATURE REDEEMABLE FOR CASH BY EMPLOYEE ~ ~ule iMST UNION NATIOhA~ BAMK a rooarti vr+o ,_~ YNNS70N SALEM iCNARLOTTE. N C _ I_ SIGNATURE OF PAYEE RJR EM EE NAME ND R R E PLOYE NUMBE ~ AYMENT PERIOD DISPLAY PAYMENT SUMMARY ~ ` ° py ` H Otr 0 i2ndt Oir 0 3rdJ Otr 0 4th ~~ TYPE PLAN RATE STORES OR UNITS AMOUNT ~ i~ VENDING PAYMENT SUMMARY ~ D a boo 279 Z „r ,00 D PLAN REGULAR VENDING (30) Rat. 4 M.ehinws Amount ~ 33o ~ ~A .3.10. D O 4 RJR BRANDS Q k s a , .Q ~ Q 5 RJR BRANDS Q D O ~ Q 6 RJR BRANDS • ~ D • D Q 7 RJR BRANDS 0 D D J 8 RJR BRANDS • 0 D D Q 9 RJR BRANDS • 0 D D O 10 RJR BRANDS Q D D Q 11 RJR BRANDS Q D , D Q 12 RJR BRANDS O Q D ~ ADDITIONAL RJR BRANDS Le.m~nts 0 D D PLACEMENT VENDING (65) Brand R.t. Pl.um.nti Amount D D D D D D D D D D a D D . D COMBINATION VENDING BONUS (70) Brand R.t. Pl.o.ments Amount D D El D D . El D D D D D , D D D MAINTENANCE VENDING (71) Brand R.t. Pl.e.m.nts Amount D D D D D D D D ~ D ~ D D D VENDING SUB TOTAL DISPLAY SUB TOTAL 6, ~ OUARTERLY COIN MECH PAYMENT (CM) ~ ~ GRAND TOTAL . QQ VENDING GRAND TOTAL RJR Form 6135 Rev. 1/84 Commoo~ty No 06135 1 ti/INSTON-SALEM COPY 504-82 21 66
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PRODUCT PROFILE sowe2- z, sI
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r • PRODUCT PROFILE INFORMATION RJR CIGARETTE BRANDS Feature o National Advertising Benefit o Increases consumer awareness o Increases impulse sales and profits o Field Promotion Support o Increases impulse trial - Display (Permanent and sales and Temporary) o Increases net profits through promotional monies o Couponing o RJR Sales Force o Increases consumer trial o Increases impulse buying o Can achieve national distribution in 6 to 8 weeks o Assures rapid brand consumer trial and awareness Proof o Demonstration - current ad copy o Demonstration o Quarterly Work Plan o RJR Corporate Couponing Study - confirms effec- tiveness of couponing in generating awareness, trial and purchase of brands o Previous new product introductions
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N ~ ~D
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i . w PRODUCT PROFILE INFORMATION BRIGHT Family - BRIGHT 85s - BRIGHT 100s Feature Benefit o Brand Name -- BRIGHT o Clearly indicates that BRIGHT is new and dif- ferent, that it delivers a unique taste, and that it is a product for today's younger adult smoker o Unique Taste Delivery o Meets consumer demand for a fresh, satisfying taste during smoking and a fresh clean taste after smoking PP-2 Proof o Quantitative package testing verifies that the name BRIGHT communicates the attribute of fresh taste and appeals to today's younger adult smokers o TIDD Extended Usage Test vs. menthol cigarettes - BRIGHT - was judged superior in delivery of a fresh taste, had a clean taste after smoking, and delivered coolness as well as smoothness A
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r w • PRODUCT PROFILE INFORMATION CAMEL Family - CAMEL REGULAR - CAMEL FILTERS - CAMEL FILTERS HARD PACK - CAMEL LIGHTS - CAMEL LIGHTS HARD PACK - CAMEL LIGHTS 100s Feature Benefit o CAMEL Name o Continuous sales and (Top 10 Selling Brand) profits through high consumer awareness o CAMEL Package Design o Sales and profits through proven popularity among smokers o CAMEL Heritage o High volume sales through taste, quality and image reputation o Total CAMEL and CAMEL o Proven sales potential FILTERS Sales as shown by 1981 Performance performance. Total CAMEL was fastest growing brand among top ten brands, while CAMEL FILTERS alone grew by over 20% PP-3 Proof o RJR Research Dept. - 96% consumer awareness of CAMELS o RJR Research Dept. - Package was preferred in extensive package testing o RJR Research Dept. - Consumer testing o Maxwell Report
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N ~ J w
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• • FEATURE o CENTURY Brand Name o 25 Cigarettes per pack o 225 Cigarettes per carton o Unique packaging: 9 packs to a carton, 40 cartons to a case, 9M case PRODUCT PROFILE INFORMATION CENTURY Family o CENTURY Filters 85's o CENTURY Lights 85's o CENTURY Filters 100's o CENTURY Lights 100's BENEFIT o Quality product, both full flavor and fuller flavor low tar o Less cost per cigarette, 5 more cigarettes per pack o 25 extra cigarettes per carton at the same suggested retail selling price o New packaging makes the brand unique and dynamic in the marketplace PP-3.1 PROOF o Demonstration o Demonstration/ Compare package cost o Same carton costs as traditional 200 cigarette king size carton o Demonstration
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I s 0 r m N N ... ~
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0 • • Feature o Low priced, brand name cigarette in low priced category PRODUCT PROFILE INFORMATION DORAL Family - DORAL FILTER - DORAL MENTHOL - DORAL FILTER 00 - DORAL MENTHOL 100 Benefit o First quality cigarette placed in this segment. Proof o MDD - 63% believe DORAL to be high quality o Meets demand of savings segment, with heavy growth continuing o High sales potential due to existing consumer awareness and acceptance of DORAL name o Low price brands achieved 4% of market in 1984 o MDD - Established brand 66% remember the DORAL name PP-4
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• PRODUCT PROFILE INFORMATION MORE Family - MORE FILTER 120s - MORE MENTHOL 120s - MORE LIGHTS 100s - MORE LIGHTS MENTHOL 100s MORE FILTER/MENTHOL Feature Benefit Proof o 120mm Length (first o Appeals to style-conscious o Demonstration 120mm brand on the market) consumers wanting a unique cigarette o Burnished Brown Color o Offers unique stylish o Demonstration appearance to consumers o Slower Burn Rate than o Yields nearly twice the o Tobacco Development Regular Cigarettes, number of puffs as an Tests yet costs the same as ordinary 100mm 100mm Brands o Demonstration o Increases value to consumers at no extra cost MORE LIGHTS 100s Feature o Distinctive Product Design (beige, 100mm, slim) Benefit o Meets demand of female smokers for a product to express their personality, origi- nality and femininity Proof o RJR Color Communicating Testing - Female smokers were attracted to the distinctive product appearance • PP-5
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• • Feature o "The Lowest" Tar Cigarette o "The Lowest 100s" o Ultra Low Tar Cigarette PRODUCT PROFILE INFORMATION NOW Family - NOW FILTER - NOW BOX - NOW MENTHOL - NOW 100s FILTER - NOW 100s FILTER BOX - NOW 100s MENTHOL Benef it o Provides the "lowest" tar of any cigarette available Proof o RJR Research Development - finds the tar level of NOW BOX at less than 0.01 mg via FTC method of tar analysis o Provides less tar than any other 100mm cigarette o More satisfying, smoother and better tasting than CARLTON SOFT PACK o RJR Research Development - finds the tar level of NOW 100s at 2 mg via FTC method of tar analysis o 1979 Competitive Product Test - finds NOW signi- ficantly superior to CARLTON PP-6
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N ~ m r
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• a . Feature o SALEM Name (top 10 brand family) o SALEM 100s is Number I Selling Full Flavor Menthol o SALEM Lights Number I Selling Low Tar Menthol (also SALEM LIGHTS and SALEM LIGHTS 100s continue to show the greatest share point gains) o SALEM SLIM LIGHTS Distinctive Product Design (slim, 100mm, box style) PRODUCT PROFILE INFORMATION SALEM Family - SALEM KING - SALEM 100 - SALEM LIGHTS - SALEM LIGHTS 100s - SALEM ULTRA - SALEM ULTRA 100s - SALEM SLIM LIGHTS Benefit o Proven sales and profits o Satisfies consumer demand o High consumer awareness Proof o Maxwell Report o Item Share Ranking o RJR Marketing Research- 100% consumer awareness of SALEM name o Style continues to appeal to a large market segment o Appeals to largest single segment of consumers wanting a low tar menthol cigarette o Meets demands of female smokers for a product to express their femini- nity, personality and individuality o Maxwell Report - Over 38% smoke 100mm ciga- rettes. SALEM FULL FLAVOR 100s largest 100mm menthol seller o Maxwell Report - Combined SALEM LIGHTS and SALEM LIGHTS 100s increased 1.8 share points 1978 to 1979, the greatest share point gain in any menthol brand o Item Share Ranking o MDD Focus Group Research - Female menthol smokers prefer the 100mm length and are attracted to a uniquely feminine "slim" cigarette PP-7
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PRODUCT PROFILE INFORMATION STERLING Family - STERLING Filter - STERLING Menthol Feature Benefit Proof ° Prestige Category ° Appeals to growing ° Demonstration - segment of Current ad copy style/image conscious consumers ° Attractive, Impactful ° Meet demands ° Demonstraticn package design/ of urban, upwardly advertising camoaign mobile male and female smoker for a premium quality product ° 94mm length ° Appeals to both ° Demonstration • 85mc and 100r...- smokers PP-7.1 N .r 04 f
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---
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0 • . Feature PRODUCT PROFILE INFORMATION VANTAGE Family - VANTAGE FILTER - VANTAGE MENTHOL - VANTAGE 100s - VANTAGE MENTHOL 100s - VANTAGE ULTRA LIGHTS - VANTAGE ULTRA LIGHTS MENTHOL - VANTAGE ULTRA LIGHTS 100s - VANTAGE ULTRA LIGHTS MENTHOL 100s Benefit o VANTAGE Brand Name o High sales potential due to existing consumer awareness and acceptance of the VANTAGE name and low tar with taste attribute o VANTAGE name stands for fuller flavor low tar, and ultra low tar cigarettes with superior taste o Eight Brand Styles o Brand styles satisfy the majority of consumer tastes and preferences o Attractive, Impactful o Provides product Package Design visibility and VANTAGE name recognition at retail to aid in building new brand sales Proof o RJR Campaign Communi- cation Studies - Aware- ness of VANTAGE name and low tar features is among highest of all major low tar brands o Demonstration o Demonstration/Show package PP-8
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~. c~ r c~ N N ~ m v
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• • • Feature PRODUCT PROFILE INFORMATION WINSTON Family - WINSTON KING - WINSTON BOX - WINSTON 100s - WINSTON LIGHTS - WINSTON LIGHTS 00s - WINSTON ULTRA - WILSTON ULTRA 100s Benefit o WINSTON Name (number o Satisfies consumer 2 selling brand demand family) o Major Sponsor of NASCAR, Rodeo, and Motorcycle Racing o Distinctive Package Design o Seven Brand Styles o Increased sales and profits through high consumer awareness o Appeals to millions of racing and rodeo fans o Generates consumer trial, clearly communicates the WINSTON brand heritage o Broad styles satisfy the majority of consumer tastes and preferences PP-9 Proof o RJR Research Department 100% consumer awareness of WINSTON name o Maxwell Report - No. 2 selling family o Demonstration - Attendance figures at local special events o Demonstration/Show Pack o Demonstration
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N ~ ~ ~
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• PRODUCT PROFILE INFORMATION WINCHESTER LITTLE CIGARS DATE INTRODUCED: 1973 Feature Benefit Proof o Major Brand in Little o Wide acceptance by o Data shows WINCHESTER Cigar Market, Outsells consumer and retail having 60% of little All Other Brands cigar market Combined o Greater percentage of o NFO profile data "heavy users" than competition o Low Price o Makes product attractive o Brand price-sensitivity to smokers who are price-conscious • • PP-10
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• PRODUCT PROFILE INFORMATION SMOKING TOBACCO - PRINCE ALBERT - CARTER HALL - APPLE - ROYAL COMFORT - MADEIRA - GEORGE WASHINGTON - TOP - OUR ADVERTISER PRINCE ALBERT SMOKING TOBACCO DATE INTRODUCED: 1907 Feature Benefit Proof o Nation's Best-Selling o Widely-known and long- o MSA sales data Smoking Tobacco established as a market leader for over 75 years o PRINCE ALBERT Name o Nationwide product o Consumer research awareness and acceptance o Available in Pouch, o Package variety to meet o Substantial SOM for Large and Small consumer wants each package style Humidors and Tins 1. Tin offers conven- ience to R-Y-O smokers 2. Other styles gen- erally used by pipe smokers o Full-flavored, Non- o Appeals to largest o Comparative sales aromatic segment of pipe smoking market CARTER HALL SMOKING TOBACCO DATE INTRODUCED: 1956 Feature Benefit Proof o Seventh Largest o Wide acceptance by o Comparative sales Selling Pipe smokers data for 1980 Tobacco in U.S. ~ f w N N PP-11 ~° N
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• APPLE SMOKING TOBACCO DATE INTRODUCED: 1973 Feature Benefit Proof o RJR's Strongest Entry o Aromatic segment o Sales data in Aromatic Segment showing share growth ROYAL COMFORT PIPE TOBACCO DATE INTRODUCED: 1981 Feature Benefit Proof o Cool Smoking o Satisfied key consumer o RJR Market Research want for a non-biting, cool-smoking pipe tobacco RJR also manufactures other smoking tobaccos which include: MADEIRA -- a fully aromatic tobacco introduced in 1966; using naturally aromatic tobaccos such as perique and latique; also artificially sweetened. GEORGE WASHINGTON -- a cut plug natural smoking tobacco introduced in 1909. TOP -- a ribbon cut cigarette tobacco made exclusively for "roll-your-own" cigarette smokers; introduced in 1939. OUR ADVERTISER -- introduced in 1895; smoking or cigarette tobacco; granular cut tobacco, wrapped in a cloth bag. N ~ PP-12 ~ w
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f
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• PRODUCT PROFILE INFORMATION CHEWING TOBACCOS - R. J. GOLD - WORK HORSE - DAYS WORK - APPLE (THICK AND THIN) - TOP - BROWN'S MULE - REYNOLDS NATURAL LEAF - REYNOLDS SUN CURED - CUP R. J. GOLD CHEWING TOBACCO DATE INTRODUCED: 1980 Feature Benefit • o Product: Loose Leaf o Satisfies growing Chewing Tobacco consumer demand for Compressed into Plug products which provide Form the mild taste of loose- leaf and the convenience of plug WORK HORSE CHEWING TOBACCO Feature Benefit o Product Positioning o Stresses product "Longer Lasting attribute most Flavor" important to chewers Proof o Loose-leaf tobacco in plug form is one of the fastest growing segments of the chewing tobacco market Proof o Consumer tests show long lasting flavor most important product attribute to chewers o Consumer tests show large majority of WORK HORSE chewers prefer WORK HORSE to category leader on long lasting flavor ~ f au N PP-13
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• DAYS WORK CHEWING TOBACCO DATE INTRODUCED: 1919 Feature Benefit Proof o Largest Selling Plug o Wide consumer awareness o Market leadership for Chewing Tobacco and acceptance over 50 years RJR also manufactures other plug chewing tobaccos which com- bined make RJR the industry leader with over 50% of plug tobacco volume. Plug tobaccos appeal to older, experienced chewers who want convenient compact package and rich flavor. Other RJR plug tobaccos include: • APPLE - APPLE THICK and APPLE THIN, both introduced in 1905 offer mellow, fresh tasting apple flavored tobaccos. The famous "stay fresh wrap" helps to preserve the fresh taste. APPLE is the third best selling plug brand in.the U.S. following DAYS WORK and CANNONBALL. TOP - Introduced in 1904, TOP is thick cut and made with mild burley tobacco to offer a rich but somewhat mild taste. BROWN'S MULE - is the oldest chewing tobacco currently marketed by RJR, introduced in 1900. It offers a strong, rich tobacco flavor. REYNOLDS NATURAL LEAF - is the second oldest RJR chewing tobacco, introduced in 1901. It is comprised of high quality tobacco, thin cut to deliver a mellow flavor. REYNOLDS SUN CURED - Sun cured tobaccos are thin cut and wrapped in dark tobacco leaf to preserve a very rich taste. Introduced in 1906. CUP - CUP uses the richest, strongest tobaccos to produce perhaps the strongest chewing tobacco in the U.S., appropriate for only the very experienced chewers. It is thin cut because a little goes a long way; as noted on the wrapper, it is truly "A Man's Chew." Introduced in 1919. PP-14
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* SIS Divisions - Refer to Hand-Held Com uter Manual for glossary o terms. GLOSSARY Account: Each specific store or outlet within an assignment. Accountabilily: One of six categories which define the nature an d scope of your job responsibilities. A Sales Representative is accountable in the following areas: Product Availability, Merchandising, Display/Advertising, Assignment Coverage, Administration/Communication, Selling/ Presentation Skills. Your job performance is evaluated on specific criteria within each accountability. Administration/Communication Accountabilit : Proper organi- zation, time y reporting, an an ing o the various forms, reporting procedures, and correspondence used by a Sales Representative. Advertising: Determining the most desirable message and most effective medium to appeal to a target market. Advertising (Permanent): Point-of-sale, nonpaper items such as clocks, cigarette center signs, business hour decalS, push/pull decals, and metal signs which, in addition to advertising RJR products, often perform a service for the retailer. Advertisin (Tem orar ): Point-of-sale paper advertising such as pasters, she f-strips and riser cards which often are used in connection with brand promotional displays. Agreement: A written or verbal commitment to supply goods or services in exchange for a service or space. Allocation: The number of cases made available for purchase to a direct account, based on past sales of similar brands. Alloca- tions are used, for example, during the introduction of new brands. Allowance Sellin : The payment of money to the vending machine owner for p acing RJR brands in his/her machine; accomplished with a Vending Display Contract and/or Bonus Vending Offer. Assignment: A geographic territory assigned to each Sales Representative comprised of the calls or accounts he or she should call on.
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Assi nment Covera e Accountabilit : Sales territory management; making cal s on al accounts wit in your assignment as dictated by their classification and frequency. B1G1F (Buy One Get One Free): A promotion where the consumer purchases a pack of product at the normal retail price and gets a second pack of that product free. "Bill Through": Also called a delivered order slip, or jobber slip, which allows the retailer to be billed by the jobber for goods delivered by the Sales Representative. Bonded Public Warehouse: A regional tobacco storage warehouse serving cigarette manufacturers by supplying direct accounts. Bonus Vending Offer: Additional payments to vendors to place and maintain specified brands over and above annual display contract monies. Brand Famil Merchandisin : Merchandising loading strategy; all cigarettes within a rand family are loaded together contiguously by category on the merchandiser; provides a consistent means of displaying product on all merchandisers. Brand Identification Ta s: Small tags for use on package mer- chandisers bearing t e rand name of cigarettes. We have brand identification tags for all RJR brands and most competitive brands. "Build-To" Figures: Ordering guidelines to achieve desired inventory levels and prevent out-of-stocks in accounts, based on individual account information, such as sales, delivery dates, and order dates. Call Anal zation Tool: A form on which to record sales infor- mation and ot er account knowledge to use in determining inventory, distribution, and merchandising needs for retail accounts on an individual basis. Call Classification: A means of categorizing each account to in icate re ative volume and whether the account sells cigarettes primarily by the carton or package. Classifications are: Key Call, 125+ Volume Carton Outlet; A Call, 125+ Volume Package Outlet; B Call, Volume of 76-124; C Call, Volume of 30-75; D Call, Volume of 30 or Less. Classification is often accompanied by a number indicating frequency. I G-2
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Call Count Standards: A minimum number of calls per day set by Division Management and company policy as a guideline for Sales Representative call coverage. Call Procedures: Job functions performed in an account within the framework of the Six Steps of Systematic Selling. Car Stock: A supply of RJR products carried in your vehicle to service retail accounts. Carton End Label: The location of code dates on a carton of cigarettes. Cash Order and Inventory Book: A selling tool to assist Sa es Representatives in taking inventory and writing orders in accounts. Cash Sales: A billing procedure in a retail account whereby a Sales Representative sells car stock for cash. A Cash Order Ticket (Form #1145) is used for the trans- action. Category Selling: A method of selling in vending calls ensuring a proper brand mix to satisfy customer demands. Chain Stores: Two or more stores owned by an individual or group of individuals operating under the same name, such as Kroger, Revco, and 7-Eleven. Cigarette Merchandising Manual: Reference manual containing merchandising information and procedures, with color photos and specifications of package and carton merchandisers. Cigarette Orderin Book: A book supplied to retailers by RJR to assist t em in inventory management; contains inventory base calculation table and space to record information on both RJR and competitive brands. Code Date: A two-letter system which tells what month and year the tobacco product was manufactured. Comment Section: The bottom portion of the Weekly Expense and Payroll Report used to make comments regarding merchandising, competitive activities, etc. Comments are received and reviewed by Field Sales Management and different departments in the Home Office. Com liance/Non-Com liance: Terms used when talking about a retail account who is or is not adhering to the terms of the contract. G-3
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Compumark Call Report: A reporting system used by the Sales Representative which describes what activities took place during a call. Contiguous: Placement of brands and brand families, one beside the other, in a manner which flows down from Full Flavor to Low Tar and results in RJR brands occupying a well-defined portion of a merchandiser. Contract: A written commitment to pay a retailer an agreed- upon amount of money for display space to merchandise our products. In return, the retailer agrees to various contract stipulations. For individual contract specifications and procedures, refer to print material sections of STEP Binder. Controlled Self-Service: Merchandising method; cigarettes are self-service, but ocated in a clerk-attended or controlled area. Count/Recount: A system of calculating distribution incentive mo- n e. Adirect account receives promotional monies for the sale of specified RJR products during a specified time period based on what was sold against purchases. Couponing: A marketing process geared directly to the consumer to promote a particular product or service, via a stated price reduction on the product or service. (i.e., - $1.50 off a carton coupon) Coverage: Total number of net calls contacted in an assignment within a given period of time. Sales Representatives should always strive for full coverage of calls as determined on the territory Master Store List. Dead Column Analysis: A form to record the replacement of a slow-selling competitive brand in a vending machine with an RJR brand. Includes projected pack sales increase and projected profit increase expected from the placement. Dead Column Selling: Replacing poorly selling competitive brands in a vending machine with an RJR brand to increase overall sales.
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Delivered Order Sli : Order slip signed by the retailer for product so d to the retailer. A delivered order slip is given to the jobber (wholesaler) who replaces the Sales Representative's car stock sold to the retailer and bills the retailer. Treated like cash by jobber and Sales Representative; also called a "bill- through" or jobber ticket. Develo ment Plan: A course of action formulated jointly by t e Sa es Representative and Division Management to identify areas needing improvement. Direct Account: Any account which purchases tobacco pro ucts directly from RJR. The five categories of direct accounts are jobbers, direct chain, direct vendor, military, and institutions. Direct Chain Accounts: Chain stores which purchase direct y from RJR. Direct Vendors: Vending machine companies which purchase irect y from RJR. Dis lay: Unit for featuring and merchandising product; usuaTly placed at point-of-sale. Dis la /Advertisin Accountabilit : Placement and maintenance o a su icient nu er of RJR point-of-sale displays and advertising pieces in retail accounts to convey our selling message to the consumer. Dis la Letters: A notice of available display payments w ic is sent periodically to all retail accounts. Dis la Placement Re ort: Report used to verify brand isp ay p acement e ore payment can be made. Form #1145 (Cash Order Ticket) can be used for this purpose. Dis la Plan for Vendin Machine O erators: Announcement o isp ay p an payments, to be e vere to vendors, issued periodically as placements and payments are updated. Distribution: Placement and maintenance of RJR products. Distribution Incentives: Marketing strategies which encourage direct an retail accounts to purchase RJR products.
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Domestic Customer Sales Anal sis Sheet: A monthly computer printout whic s ows or ers placed by brand for a direct account; yields comparative data for analyzing direct account needs and potential. Draft: A program through which you can write a retailer a check for all RJR promotions and contracts. Expedites periodic payments given as incentives. Evaluation: Annual and periodic performance review; based upon achievement of the six accountabilities; is a determining factor for salary increases and promotions. Exchange: A method of selling whereby the Sales Represen- tative places car stock in an account in exchange for merchandise of equal value. Cash Order Ticket (Form #1145) is used for this transaction. Field Sales Operating Fund: Set amount of money given to the Sales Representative with which to purchase car stock and pay for expenses incurred on the job. Flavoring: The overall taste of a cigarette, determined by tar and nicotine content, and the amount of filtration. Flow of Goods: Travel of product from manufacturer to consumer. Fre5uency: The number of times a call should be made during a given period of time. Full Flavor: Refers to those brands such as CAMEL FILTER, SALEM, and WINSTON with a higher tar/nicotine content than low-tar categories. Full-Line Vendor: Vendors who operate many kinds of mac ines: co ee, candy, soda, etc., as well as ciga- rette machines. IMS: Individualized Merchandising Service; any and all merchandising, inventory management, and profitability programs offered to retailers through services provided by RJR Sales Representatives. Incentive Promotions: A promotion which encourages accounts to purc ase a particular tobacco product. I G-6
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Inde endent Vendor: Owner of the machine, who also owns t e store or business where the machine is located. Industry Plan-o-gram: A merchandising planning tool for use in presenting proposed plans to a retailer; shows current and proposed RJR and competitive situations for comparison purposes. Insert: Vending machine label designating column brand. Institutions: Federal and state institutions (VA ospita s, prisons, mental hospitals, etc.) which usually purchase directly from RJR. City and county institutions normally purchase from wholesalers. Introductor Discounts: Monies paid to direct accounts based on the number of cases purchased from their allocation. Inventory: Total on-hand stock of RJR products. Inventory Base: Minimum stock level needed to ensure adequate product. Inventor Form #899: A form on which to record the stock eve s of RJR products when making a sales call. Inventor Service: Weekly count of RJR merchandise by brand over a given period of time to determine amount of product sold. Sales figures are then used to determine proper inventory levels by brand. Jobber: Wholesale dealer who services retail, chain, and or independent accounts. Knock-down Carton: Containers for repacking of ciga- rettes; ab e to be flattened for storage. Lag Time: Length of time (measured in sale days) between cigarette order placement and cigarette order delivery. Load Plan: A specific plan given to Field Sales describing ow certain displays should be loaded. Load plans are issued in conjunction with our advertising and other promotions and may vary in certain areas. Low Stock: An inventory condition whereby a product may run out before the next order arrives. Low Tar: Refers to cigarette brands having a lesser tar nicotine content than "full flavor" brands, such as CAMEL LIGHTS, WINSTON LIGHTS, and SALEM LIGHTS. G-7
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Machine Capacity: Volume of cigarette packs a vending machine can hold. Marketing Mix: Combination of market characteristics and trends (components: product, packaging, pricing, availability, adver- tising, promotion). Marketing Process: Process of moving product from the factory to the ultimate consumer with the goal of ensuring that more RJR products are sold than competitive products. Mentholation: Menthol additives. Merchandiser: A unit designed for displaying and merchandising product; may be for cartons or packages and is usually per- manently installed. Merchandisers and Com onent Parts Catalo : Reference manual containing in ormation on all pac age and carton merchandisers and their component parts. Merchandising: Any and all activities involved in displaying R. J. Reynolds products to gain maximum visibility and access- ibility to the consumer. Merchandising Accountability: Display of RJR brands in all outlets at the point-of-sale to obtain maximum product exposure to the consumer. Militar Accounts: Accounts selling cigarettes which only cater to arme forces personnel and their families on U. S. Government property. Module: Individual portions of a merchandiser or display unit, which can be used together to produce any combination of larger units. Multiple Row Analysis: A form used in servicing vending accounts to calculate and record the changes in inventory necessary to achieve proper brand placement and multiple row summary; indi- cates total change in inventory, total change in placement allowance, and total change in profit for the vendor. I G-8
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Multiple Row Selling: Means of eliminating unnecessary dupli- cation of brands so more brands may be placed in vending machines. Nonself-Service: Merchandising method; an attendant issues cigarettes and/or customer pays before receiving cigarettes. Ordering Procedure: Method a retail or direct account uses to purchase cigarettes and tobacco products. Out-of-Stock: An inventory condition whereby a product carried Fy-a retailer is currently sold out. Pack Facsimile: Full pack front representations of every RJR ran for use on package merchandisers to further identify RJR columns in standard metal package merchandisers. Packaging: Various ways in which tobacco products are packed, e.g., cardboard, crush-resistant box or paper pack; accomplishes product protection, cost efficiency, and product recognition. Paster: Paper advertising pieces which are placed in various store locations. PDI Manual: A reference manual kept at the Division Office containing guidelines by type of account for the proper placement of permanent POS. PDI at POS: The RJR marketing concept whereby our goal for merchandising and advertising is to obtain permanence, dominance, and impact at the point-of-sale. Performance Review: See Evaluation. Planning Schedule: The form you complete (with a copy for Division Management) which outlines your call plans by day and objective so that the proper coverage and work activities are completed. Plan-O-Grams: Grid forms used to plan inventory loading on newly insta ed merchandisers and rearrangements on existing merchan- disers. (Both carton and package)
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Point-of-Purchase: Where the customer picks up a carton or pack of cigarettes in the retail location, i.e., carton or package merchandiser. Point-of-Sale: Where the customer pays for the product selected (e.g., supermarket checkout). In some instances, point-of- purchase is also point-of-sale; for instance, vending machines and nonself-service retailers. Point-of-Sale (POS): Temporary or permanent advertising. PPD (PCD): Permanent Package Display (Permanent Counter Display a permanent counter display of modular design used to promote specified brands and increase impulse buying. Units are placed within the primary selling area in accounts which sell cigarettes primarily by the package. Prebooking: A method of selling whereby the Sales Representative writes up an order on a Prebooking or other form. This order is sent to the appropriate jobber for future delivery. No car stock is involved in this transaction. Pricing: Offering a product which will produce an acceptable return on investment. Priority Planning: An organized approach to planning where the order of programs and activities to be conducted is determined by their relative importance. Priority planning may vary by each specific Sales Representative's territory, depending on the make-up of the calls. Product Availability Accountability: Achievement and maintenance of proper stock levels and distribution of RJR brands in all accounts within your assignment. Product Mix: Combination of brands, categories, and quantities carried as car stock. Product Positioning: Placing RJR products in the most highly visible locations. Product Rotation: A call prcedure whereby you rotate tobacco products by code date to ensure freshness and minimize the amount of stale product to be returned to RJR. Product Shelf-Life Calculator: A sliding cardboard device which helps determine outdated to acco products based on the code date. 1 G-10
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Professional Sellin Skills (PSS): A sales training program teac ing nee s satis action selling and how to deal with various retailer attitudes. Profitability Program: Mathematical formulas used in IMS to illustrate to retail accounts the amount of profits and other benefits derived from selling tobacco products (see Call Analyzation Tool). ~Pro r~am: RJR sales tools which you use to make recommen- a~ tions to retailers to improve sales and profits. Promotion: A temporary reward added to a product to stimu ate its purchase. Promotional Monies: Payments made by RJR to a cigarette out et or a owing the merchandising and display of RJR brands, usually on RJR merchandisers; also in vending machines, money paid for promoting RJR products. Pro ortionate Loadin : Merchandiser loading strategy whic provi es the proper amount of space by brand on our merchandisers based on sales of each individual brand; guidelines for implementation are division SOM or store sales figures. Re ort of Standin Orders: A monthly printout showing t e nu er o cases o each brand of RJR products shipped automatically each week to a direct account. Retail Account: An independent or chain outlet which se ls cigarettes and/or other tobacco products directly to the consumer. Retail Sellin Time: The percentage of time you spend making retai ca s. Non-selling activities such as vacation and other authorized time off are not included in this figure. Ride With: Working side-by-side with a vendor's routeman in or er to update the brand selection in each vending machine. Riser Card: Piece of POS advertising which appears above or on a display. Usually made of heavy cardboard to allow it to stand upright without the aid of a hardware frame.
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RJR Placement Allowance Analysis: A form to calculate and record vending payments, annual vending payments, bonus vending payments made for net new placements, and special vending payments made when RJR announces a cigarette price increase; grand total. RJR Service Anal sis: A form on which to record and verify t e p acements, hours, costs, and other data for a vending account in order for RJR to pay the Tru-Check charge for the vendor; includes date and amount of payment of placement allowance. Robinson-Patman Act (enacted 6-19-63): This law reminds us t at in t e so icitation o or ers from retail accounts, we must not suggest to a dealer the jobber with whom an order will be placed, or attempt to influence a dealer's choice of the jobber through whom he prefers to purchase the goods. This decision must be entirely his own. Sales Tool: Any aid used to facilitate selling, i.e., Saes Brochure, Call Bag, etc. Sampl~ing: A means of gaining consumer trial via actually putting free product in the consumers' hands. Self-Service: Merchandising method; customer obtains cigarettes directly from merchandiser and pays for product at the checkout. Sellin /Presentation Skills Accountabilit : Effective use o t e Six Steps o Systematic e ing, PSS, and other RJR tools and aids to accomplish successful sales presentations. Service Sellin : Services RJR provides to vendors to increase t eir sales, simplify their procedures, and maintain control of RJR product exposure, e.g., Tru-Check and Ride With. Share of Cate _o~r: Percentage of sales in each vending category o taine~Tcby RJR. Share of Market (SOM): Percentage of total cigarette sa es earne by company and by brand. N G-12
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Shelf-Life: The manufacturer's recommendation as to the c~Tu~rat- i of time a product should be available for consumer purchase. Shelf-Talker: Temporary POS advertising piece; also ca led a s elf-strip. Si na ge: A vehicle for product identification and a -d ertising (e.g., price dials, pasters, etc.) appended or affixed to cigarette merchandisers and displays. Size: The length of an individual cigarette (70, 80, 85, 100, 120mm). ~S~olvency : Calculated balance of the Field Sales Operating Fun~ considering car stock, any damaged goods, cash-on-hand, delivered order slips, and expenses listed on your Weekly Expense and Payroll Report for the current week and any previous unpaid weeks. Standard Load Plan: Merchandiser or display loading p ans, by brand, designating changes in loading based on remerchandising strategies or new Work Plan promotions. Standin Order (S/O): Automatic shipment of predetermined pro uct quantities from the bonded warehouse to direct accounts on specified days of the week. State Tax Stam in : A tax, which varies by state, co ecte by eac state for each pack of cigarettes. This tax is administered in the form of a tax stamp, (except in Hawaii, Alaska, and Michigan), which is applied to each package. The tax is paid by the whole- salers in each state and passed on to the consumer via the purchase price. Street Vendor: Vendors who handle cigarette machines as we as ju e boxes, pinball machines, and the like. S stem~ati,c Sellin : A six-step simple guide and reminder o~ r making a comp ete call. Travel File: Multi-purpose container for business recor s, correspondence, reference materials, and files used by the Sales Representative. Tru-Check: A computer company which prepares quarterly ran p acement reports for the vendor and submits the reports to the cigarette manufacturers on the vendor's behalf. Tru-Check is sponsored by RJR. (Not available to independent vendors -- vending companies only.)
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Tru-Check Contract: Agreement to place RJR brands in t e ven or's machines; a legal contract. Tru-Check Vendin Route Card: Form used to record brand p acement. Vehicle: Physical item used for implementing a merchan- ising plan; specific kinds of fixtures which hold cartons or packages of cigarettes; company car or van. Vendin : The merchandising of cigarettes through coin-operated machines rather than over-the-counter. Vending Category Analysis: Form used in vending accounts to determine consumer preferences for categories and brands in machines, by market area; considers non-filter, full flavor, fuller flavor low tar, and ultra low tar. Vending Company: Owns many machines and pays store proprietor a commission on sales to place the machine in the proprietor's business location. Vendin Dis la Contract: A direct cash incentive program t roug w ic t e vendor receives payments based on the number of RJR brands placed in his machines. Vendin Machine Surve : A procedure where a certain percentage o a particular vendor's machines are visually surveyed to verify the brand placement reported by the vendor. Vending Manual: Reference manual containing policies and procedures for vending accounts (independent vendors and vending companies). Vendor Information Sheet: A form for recording vendor account in ormation, total number of machines, brand distribution, and monies earned for each vending account. Vendor Route Card: Form on which to record placements an payments, by machine, for independent vendors. I G-14
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Void: An inventory condition whereby a product brand is not carried by a retail account. Weekl Ex ense and Pa roll Re ort: Weekly record of Sa es Representative expen itures, upon which reimburse- ment is calculated. Work Plan Organizer: Company announcement establishing priorities as to w ich brands and promotions to emphasize in accounts and for what time period; issued periodically by Home Office.
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